The Earnings Debate

During the earnings call, management maintained their strong outlook for organic growth established for the full year 2026.

They expect "revenue growth of 12% to 14%" and an "operating margin at 31.5%". For the year, the company anticipates "roughly doubling the advertising business to about USD 3 billion". Netflix ended the previous year with "more than 325 million paid members". Management estimated their addressable revenue for 2026 at "USD 670 billion" and noted they account for "only 5% of TV view share globally," leaving "plenty of room to grow into our addressable market".Co-CEO Ted Sarandos highlighted three main priorities, including to "deliver even more entertainment...

For the first quarter, management noted that for the total company, "core operating margin increased about 10 basis points". Management stated, "We had organic revenue increase, 2.6%, core EPS increased 9%". The PBNA segment's total business grew 9%, reflecting a combination of organic revenue growth of 2% plus 7 points of additional platforms that are now in the distribution system. In the PFNA segment, the company "grew volume 2%" and "grew occasions units 4%", increasing by 300 million new occasions compared to the first quarter of last year.

Regarding external volatility and the Iran conflict, management stated, "We've had no major issues from a supply chain...

Taiwan Semiconductor Manufacturing Company Limited reported its financial results for the first quarter of 2026.

Management stated, "We concluded our first quarter with revenue of USD 35.9 billion". First quarter gross margin was 66.2%, and first quarter operating margin was 58.1%.

First quarter EPS was TWD 22.08.

The company noted that 3-nanometer process technology contributed 25% of wafer revenue in the first quarter, while 5-nanometer and 7-nanometer accounted for 36% and 13%, respectively.

High performance computing increased 20% quarter-over-quarter to account for 61% of first quarter revenue.

Regarding business updates, management highlighted that "AI-related demand continues to be extremely...

On a GAAP basis for the first quarter, total revenue was up 5%, operating income improved 16%, and diluted earnings per share improved 27% versus the prior year period.

Management reported that the company was able to expand margins 70 basis points year-over-year in the quarter.

During the quarter, the company repurchased 383,000 shares of stock for approximately $80 million and retired $700 million of notes.

The company also eliminated over $30 million during the quarter as part of an initiative to remove structural costs from the business.

The company experienced strong demand across service offerings as a predominantly...

For the first quarter of 2026, Bank of America Corporation reported that "Revenue grew 7% year-over-year to $30.3 billion". Executive Brian Moynihan noted that for the first quarter, "Earnings per share were up 25% year-over-year to $1.11 per share". The company achieved "operating leverage of 290 basis points this quarter" and reported that the "efficiency ratio for our company improved 170 basis points year-over-year to 61%". Additionally, for the first quarter, "net interest income on a fully taxable equivalent basis was $15.9 billion".During the earnings call, Moynihan stated that "Every segment grew revenue.

Every segment grew earnings.

Every segment grew average deposits and...

For the first quarter of 2026, ASML reported that "total net sales were EUR 8.8 billion" and "gross margin for the quarter was at the high end of our guidance at 53%". The company stated that "net income in Q1 was EUR 2.8 billion" resulting in "earnings per share of EUR 7.15" for the quarter.

Quarterly net system sales were EUR 6.3 billion, which included over EUR 4.1 billion from EUV systems and over EUR 2.1 billion from non-EUV systems.

Management highlighted that "the growth outlook for the semiconductor industry continues to solidify, driven primarily by AI-related infrastructure investment". To address capacity constraints...

Wells Fargo & Company reported its first quarter 2026 results, with Chief Executive Officer Charles Scharf noting "diluted earnings per share increasing 15%" and "revenue increasing 6%" compared to a year ago.

Chief Financial Officer Michael Santomassimo stated that "net interest income increased $601 million" from a year ago, and "noninterest income increased $696 million". Furthermore, "pretax pre-provision profit grew 14%" from a year ago.

During the first quarter, the company returned $5.4 billion to shareholders, which included $4 billion in common stock repurchases.

Scharf announced that the company closed its final outstanding consent order, stating the focus is now on "accelerating...

JPMorgan Chase & Co. reported first quarter 2026 net income of $16.5 billion and EPS of $5.94 with an ROTC of 23 percent.

Revenue for the quarter was reported at $15.5 billion.

Expenses for the quarter were $26.9 billion.

Credit costs were $2.5 billion with net charge-offs of $2.3 billion and a net reserve build of $191 million.

The standardized CET1 ratio ended the quarter at 14.3 percent.

Management discussed concerns regarding the Basel III endgame and G-SIB reproposal, noting that the proposed rules could increase CET1 capital around 4 percent and result in a total increase of about $20 billion of...

Johnson & Johnson reported first quarter 2026 financial results with worldwide sales of $24.1 billion for the quarter, an operational sales increase of 6.4 percent.

For the quarter, net earnings were $5.2 billion and diluted earnings per share were $2.14.

Adjusted net earnings for the quarter were $6.6 billion, and adjusted diluted earnings per share were $2.70.

Free cash flow in the first quarter was approximately $1.5 billion.

Executives highlighted that their "unique combination of innovative medicine and MedTech" is delivering resilient growth.

The innovative medicine division delivered operational sales growth of 7.4 percent in the quarter, while MedTech...

The Goldman Sachs Group, Inc. reported first quarter 2026 "net revenues of $17.2 billion, net earnings of $5.6 billion and earnings per share of $17.55". Management stated that these results drove a "return on equity of 19.8% and an ROTE of 21.3%". For the first quarter, "Global Banking & Markets produced record revenues of $12.7 billion," while "Asset & Wealth Management revenues were $4.1 billion". Furthermore, "firm-wide net interest income was $3.7 billion in the first quarter," and "total quarterly operating expenses were $10.4 billion".During the quarter, "total assets under supervision ended the quarter at a record 3.7trillion,"achieving"62 billion long-term fee-based inflows". The company remained the "#1 M&A adviser...

For the third quarter of fiscal 2026, Executive Vice President and Chief Financial Officer Matt Friend stated that "revenues were flat on a reported basis and down 3% on a currency-neutral basis." Friend noted that "NIKE Direct was down 7% with NIKE Digital declining 9% and and NIKE stores down 5%", while "Wholesale grew 1%." "Gross margins declined 130 basis points to 40.2% on a reported basis," which was "primarily due to 300 basis points associated with higher tariffs in North America." The company reported that "Earnings per share was $0.35" for the quarter, and "inventory decreased 1% versus the prior year with units down mid-single digits."President and Chief...

FactSet Research Systems Inc. reported Q2 2026 financial results, noting that second quarter revenues grew 7.1% year-over-year to $611 million, or 6.8% organically.

Management stated that organic ASV grew 6.7% to $2.45 billion.

Adjusted operating margin was 35% for the quarter, and adjusted diluted EPS was $4.46.

The company reported deploying over $300 million year-to-date to repurchase shares, including approximately 652,000 shares for $163 million in the second quarter.

Management highlighted three priorities for the company: driving commercial excellence, delivering productivity improvements, and solidifying its long-term strategy for sustainable growth.

The company reported that productivity initiatives have already captured more...

For the fourth quarter of 2025, PDD Holdings Inc. reported that total revenues increased 12% year-over-year to RMB 123.9 billion, and for the full year 2025, revenues were RMB 431.8 billion.

Fourth quarter revenues from online marketing services and others were RMB 60 billion, while transaction services revenues for the quarter reached RMB 63.9 billion.

The company reported a fourth quarter GAAP operating profit of RMB 27.7 billion and a non-GAAP operating profit of RMB 29.5 billion, representing a non-GAAP operating profit margin of 24%.

Fourth quarter net income attributable to ordinary shareholders was RMB 24.5 billion, and the full year net income was...

XPeng Inc. reported its financial results for the fourth quarter of 2025, stating that total revenues were RMB 22.25 billion for the fourth quarter of 2025.

Revenues from vehicle sales were RMB 19.07 billion for the fourth quarter of 2025, while revenues from services and others were RMB 3.18 billion for the fourth quarter of 2025.

Gross margin was 21.3% for the fourth quarter of 2025, and vehicle margin was 13% for the fourth quarter of 2025.

Management noted a net profit of RMB 0.38 billion for the fourth quarter of 2025.

For the full fiscal year 2025, gross margin reached 18.9%, and the company had...

Tencent Holdings Limited reported its financial results for the fourth quarter of 2025.

Management announced "total revenue was RMB 194.4 billion, up 13% year-on-year". During the quarter, "Gross profit was RMB 108.3 billion, up 19% year-on-year" and "Overall gross margin was 56%, up 3 percentage points year-on-year". Executives also highlighted that "Free cash flow was RMB 34 billion, increasing over 6x year-on-year". On a non-IFRS basis, "operating profit was RMB 69.5 billion, up 17% year-on-year" and "Net profit attributable to equity holders was RMB 64.7 billion, up 17% year-on-year".Discussing strategic initiatives, the company emphasized its focus on integrating artificial intelligence.

Management stated "we prioritized leveraging AI...

Angi Inc. reported full year 2025 revenue growth that landed at "minus 13%" and delivered "$140 million" of adjusted EBITDA for the year.

The company noted that its proprietary business "grew 17% in 2025". Management also highlighted that over the last three years they have "doubled our EBITDA and cut our capital expenditures in half" and swung from "real negative free cash flow to real positive free cash flow".Key business updates include a restructuring that involved "cutting the organization by 40%" and is expected to generate "$70 million to $80 million" of annualized savings.

These savings are creating room to reinvest in...

ServiceTitan, Inc. reported its fourth quarter fiscal year 2026 results.

For the full fiscal year 2026, management stated, "we delivered $961 million in total revenue, growing 24% year-over-year". For the quarter, the company stated, "Q4 total revenue of $254 million grew 21% year-over-year". Subscription revenue for the fourth quarter was $192 million.

The company reported, "Q4 operating income of $27.1 million resulted in operating margin of 10.7%". Furthermore, "Q4 free cash flow was $35 million up from $11 million for the prior year fourth quarter" and "FY '26 free cash flow was $85 million".Key business updates focused on the company's vision to build the "Agentic Operating...

Alibaba Group Holding Limited reported its financial results for the quarter, stating that total revenue was RMB 284.8 billion.

The company reported that GAAP net income for the quarter was RMB 15.6 billion, representing a decrease of 66 percent.

Operating cash flow for the quarter was an inflow of RMB 36 billion, and free cash flow for the quarter was RMB 11.3 billion.

Management noted that total adjusted EBITDA for the quarter decreased by 57 percent primarily due to strategic investments in technology-related innovation initiatives and the consumption front, including quick commerce business.

During the quarter, Alibaba...

Management did not explicitly state total revenue or profit figures for the quarter, but CFO Mark Murphy noted that "both DRAM and NAND pricing was up strongly" and that both segments grew volume sequentially.

The company updated its financial investments, noting "we increased our outlook on CapEx to over $25 billion" for fiscal year 2026, up from $20 billion.

Management expects fourth quarter operating expenses to be close to $1.6 billion, and start-up costs for new facilities to be $100 million to $200 million per quarter starting in the next quarter or so.

Micron discussed its ongoing strategy to...

For the fourth quarter of 2025, interim Co-CEO and CFO Meghan Frank reported that "total net revenue rose 1% to $3.6 billion". Gross profit for the fourth quarter was $2 billion or 54.9% of net revenue.

Operating income for the quarter was approximately $812 million, or 22.3% of net revenue.

Net income for the quarter was $587 million or $5.01 per diluted share.

Inventory at the end of Q4 was $1.7 billion.

Management outlined an action plan focused on product creation, product activation, and enterprise enablement.

Interim Co-CEO Andre Maestrini stated a primary goal in North America is "returning...

For the fourth quarter, Adobe achieved revenue of $6.19 billion. GAAP EPS in Q4 was $4.45 and non-GAAP EPS was $5.50.

For fiscal year 2025, Adobe delivered record revenue of $23.77 billion and over $10 billion in operating cash flows.

Management stated that Total Adobe ending ARR reached $25.2 billion.

Management highlighted the integration of generative AI across its product portfolio, targeting Business Professionals and Consumers, Creators and Creative Professionals, and Marketing Professionals.

Executive Vice President and CFO Dan Durn noted, "Total new AI-influenced ARR now exceeds 1/3 of our overall book of business". President of Digital Media David...

For the fourth quarter, executives reported that "Net sales increased 5.9% to $10.9 billion in Q4" and "Same-store sales increased 4.3% during the quarter". Management highlighted that "For Q4, gross profit as a percentage of sales was 30.4%, an increase of 105 basis points". Additionally, "Operating profit for the fourth quarter increased 106% to $606 million" and "EPS for the quarter increased 122% to $1.93". For the full year, the company reported, "In 2025, we generated significant cash flow from operations of $3.6 billion".Key business updates focused on four strategic growth pillars: "enhancing the customer experience, elevating our brand, driving greater enterprise-wide efficiencies and extending our reach". The company...

Oracle Corporation reported Q3 2026 results highlighting that both organic total revenue and organic non-GAAP EPS grew at 20% or better in USD. Management noted that cloud applications revenue was up 11% in the quarter, reaching an annualized run rate of $16.1 billion.

Multicloud Database revenue grew 531% year-over-year, and AI infrastructure revenue grew 243% year-over-year.

The company reported a $553 billion RPO and stated that gross margin for AI capacity delivered in Q3 remained above guidance at 32%.

Key business updates included the rapid adoption of AI coding tools, enabling small engineering teams to build three new CX applications.

Costco Wholesale Corporation reported net income for the second quarter of 2026 at $2.035 billion, or $4.58 per diluted share.

Net sales for the second quarter were $68.24 billion, which represents an increase of 9.1 percent from the second quarter of 2025.

Comparable sales were up 7.4 percent.

The company reported membership fee income of $1.355 billion, an increase of 13.6 percent year-over-year.

The quarter ended with 82.1 million total paid members and 4.4 million paid executive memberships.

Management highlighted several key business priorities, including increasing the pipeline of new warehouses domestically and internationally.

The company expects to...

Block reported fourth quarter 2025 results with $2.87 billion in gross profit, representing 24% year-over-year growth.

For the full year 2025, the company reported $10.36 billion in gross profit and growth of 17% year-over-year.

Block grew adjusted operating income 46% year-over-year to $588 million in the fourth quarter. On a per share basis, adjusted diluted EPS grew 38% year-over-year in the quarter.

Executives announced an organizational restructuring, reducing the workforce from over 10,000 people to just under 6,000.

This structural change is designed to increase velocity and leverage intelligence tools across the company. In terms of network growth, Cash App monthly actives...

In Q4, Okta closed a record amount of total contract value of nearly $1.3 billion and surpassed a major milestone of $3 billion in annual contract value.

The company ended the quarter with over $2.5 billion in cash, cash equivalents, and short-term investments.

Additionally, total contract value generated through AWS Marketplace grew over 45 percent in fiscal year 2026 to approximately $750 million. In January, the company repurchased and retired over 875,000 shares for a total cost of $79 million under a $1 billion share repurchase program.

Management highlighted strong performance from their portfolio of new products, which represented approximately 30 percent of...

Veeva Systems Inc. reported fiscal 2026 fourth quarter and full year financial results.

For the quarter, management stated that total revenue was $836 million with non-GAAP operating income of $366 million.

For the full year, total revenue reached $3.195 billion and non-GAAP operating income was $1.434 billion.

The company also announced it surpassed its $3 billion revenue run rate goal.

During the call, management provided updates on several key business initiatives, highlighting significant momentum with Vault CRM, noting that close to 140 customers are now live.

The company also announced a milestone deal with a top 20...

In Q1 2026, Broadcom reported consolidated revenue of a record $19.3 billion, up 29 percent year-on-year.

Gross margin was 77 percent of revenue. Q1 operating income reached a record $12.8 billion.

Adjusted EBITDA was a record $13.1 billion, representing 68 percent of revenue.

Free cash flow for the quarter was $8 billion, which represented 41 percent of revenue.

The Semiconductor Solutions segment generated a record $12.5 billion in revenue, while infrastructure software revenue was $6.8 billion.

During the call, management highlighted that the ramp of custom AI accelerators across their customers is progressing very well.

Broadcom now has...

ImmunityBio, Inc. reported full year net product revenue for ANKTIVA of $113 million, representing a 700% year-over-year increase compared to $14.1 million in 2024. In the fourth quarter, net product revenue increased from $31.1 million to $38.3 million.

Full year research and development expenses were $218.6 million, and selling, general, and administrative expenses decreased to $150 million.

Full year net loss attributable to ImmunityBio common stockholders was $351.4 million.

The company reported consolidated cash, cash equivalent, and marketable securities of $242.8 million as of December 31, 2025.

The company highlighted the commercial momentum of ANKTIVA, which is now authorized across 33 countries.

...

CrowdStrike Holdings, Inc. reported fourth quarter fiscal 2026 total revenue of $1.31 billion, an increase of 23% over Q4 of last year.

The company posted record net new ARR of $330.7 million, bringing ending ARR to $5.25 billion.

Fourth quarter non-GAAP operating income reached a record $325.8 million, representing 25% of revenue.

Additionally, the company generated record free cash flow of $376.4 million, or 29% of revenue, for the quarter.

Full fiscal year 2026 non-GAAP operating income reached a record $1.05 billion.

Management emphasized the success of the Falcon Flex subscription model, noting the addition of more than 350 Flex customers...

GitLab Inc. reported its fourth quarter and fiscal year 2026 financial results, with management noting that Q4 revenue was $260 million, up 23% year-over-year.

For the full fiscal year 2026, revenue grew 26% to $955 million, and adjusted free cash flow grew 83% to $220 million.

Fourth quarter non-GAAP operating income was $53.4 million, representing an operating margin of 20.5%.

The company's Board also authorized a first-time share repurchase program of $400 million.

Management outlined five specific strategies to improve growth at scale for fiscal year 2027, which include reaccelerating first orders, scaling sales capacity, expanding product packaging, engaging price-sensitive customers, and executing...

For the fourth quarter of 2025, Sea Limited reported total GAAP revenue of 6.9 billion dollars, representing a 38 percent increase year-on-year, and total adjusted EBITDA of 787 million dollars.

For the full year of 2025, the company generated 22.9 billion dollars in total GAAP revenue, a 36 percent year-on-year increase, and full year net income reached 1.6 billion dollars.

Shopee achieved full year GMV of 127 billion dollars with an adjusted EBITDA of 881 million dollars.

The Money segment reported a full year revenue of 3.8 billion dollars, while Garena generated full year bookings of 2.9 billion dollars.

Management highlighted operational improvements...

Financial results: Management reported a decline in sales for the fourth quarter, but successfully grew adjusted operating income dollars and adjusted EPS over the prior year. GAAP operating dollars and EPS were down a small amount in Q4 as the company recognized about $90 million of nonrecurring business transformation costs.

For the prior year, the gross margin rate was down about 30 basis points, aided by lower inventory shrink which delivered about 90 basis points of benefit.

Notably, same-day services generated more than $14 billion in sales last year.

Key business updates: Target is executing a strategic...

MongoDB reported total revenue of $695 million in the fourth quarter, representing a 27% increase year-over-year.

Atlas revenue grew 29% year-over-year, accounting for 72% of total revenue, while non-Atlas revenue grew 20% year-over-year.

The company delivered a non-GAAP operating margin of 23% and $159 million in income from operations.

Non-GAAP net income in the fourth quarter was $143 million, or $1.65 per share, and free cash flow was $177 million.

Management highlighted that the company signed several large deals, including an approximately $90 million transaction with a large technology company and a greater than $100 million transaction with a large financial institution for...

During the Q4 2025 earnings call, CEO Luis von Ahn reported that Duolingo surpassed 50 million daily active users and delivered over 1 billion in bookings and more than $300 million in adjusted EBITDA for the year.

Newly appointed CFO Gilian Munson announced that the Board authorized a buyback of up to $400 million of the company shares.

Management outlined a strategic shift for 2026, prioritizing the size of the active learner base over near-term monetization.

The medium-term goal is to reach 100 million daily active users in 2028. To achieve this, the company will focus on three categories: teaching languages...

Zscaler, Inc. reported financial results for the second quarter of fiscal 2026. Revenue for the quarter was $816 million, which grew 26 percent year-over-year. Total annual recurring revenue was $3.4 billion, representing 25 percent year-over-year growth. For the quarter, non-GAAP operating income was $181 million, growing 29 percent year-over-year, with a non-GAAP operating margin of 22.2 percent. The company generated a free cash flow margin of 20.7 percent for the quarter and ended the period with $3.5 billion in cash, cash equivalents and short-term investments.
Management highlighted strong demand across three growth pillars, which include AI security, Zero Trust Everywhere, and Data Security Everywhere. The company discussed its...

Natera reported fourth quarter 2025 financial results, generating "roughly $666 million of revenue in the quarter," representing "approximately 40% revenue growth over Q4 of 2024." The company achieved a "gross margin of 66.9% in the quarter" and "generated over $107 million in cash flow in 2025." Natera significantly narrowed its operating losses in Q4 and generated net income, supported by a balance sheet with "over $1 billion in cash and securities."
Management highlighted strong volume momentum, stating they "processed about 924,000 tests and set another record for MRD clinical unit growth with 225,000 tests processed in Q4." Notable product announcements included launching the "21-gene fetal focused single-gene NIPT...

Intuit reported second quarter fiscal 2026 financial results with revenue of $4.7 billion, up 17% for the quarter. GAAP operating income for the quarter was $855 million, and non-GAAP operating income was $1.5 billion. GAAP diluted earnings per share for the quarter was $2.48, and non-GAAP diluted earnings per share was $4.15.
Management highlighted momentum across its platforms, noting that Online Ecosystem revenue for QBO Advanced and Intuit Enterprise Suite increased 40%. The company stated that total online payment volume grew 29% in the second quarter. Intuit is expanding its direct sales team by approximately 30% and noted that new Intuit Enterprise Suite contracts grew nearly 50% quarter-over-quarter. QuickBooks...

Ginkgo Bioworks Holdings, Inc. reported its fourth quarter 2025 financial results.

Cell engineering revenue was $26 million in the fourth quarter of 2025, down 26 percent compared to the fourth quarter of 2024.

For the full year, cell engineering revenue was $133 million in 2025.

The biosecurity business generated $7 million of revenue in the fourth quarter and $37 million of revenue in the full year 2025.

Total adjusted EBITDA in the fourth quarter of 2025 was negative $36 million, and cash burn in the fourth quarter of 2025 was $47 million.

Management stated that the technological and business focus for 2026 will be...

Dell Technologies Inc. reported its fiscal year 2026 fourth quarter results, stating that Q4 revenue was $33.4 billion, up 39 percent, and earnings per share was $3.89, up 45 percent. For the full year, the company reported that revenue reached $113.5 billion, up 19 percent, and EPS grew 27 percent to $10.30. Management also noted that they delivered cash flow from operations of $4.7 billion for the quarter. Gross margin dollars increased 18 percent to $6.8 billion, with the gross margin rate at 20.5 percent for the quarter.

During the call, executives highlighted significant acceleration in their artificial intelligence business. The company reported that in Q4, they booked $34.1 billion in...