The Earnings Debate

For the first quarter, Interim Co-CEO and CFO Meghan Frank reported "total net revenue rose 4% or 2% in constant currency to $2.5 billion". Gross profit for the first quarter was $1.34 billion or 54.2% of net revenue.

Operating income for the quarter was $277 million, or 11.2% of net revenue.

Net income for the quarter was $195 million, or $1.69 per diluted share.

Inventory at the end of the first quarter was $1.7 billion.

Management stated their priorities are to strengthen performance in North America while continuing to expand their global growth engine.

The company noted that recent...

ServiceTitan, Inc. reported its fiscal first quarter 2027 results.

For the quarter, management stated, "Q1 total revenue of $268.8 million grew 25% year-over-year." The company reported "Subscription revenue of $202 million" and "Usage revenue grew 29% year-over-year to $58.5 million." Furthermore, management noted "Q1 operating income of $40.8 million resulted in operating margin of 15.2%" and "Q1 platform gross margin was 81.3%." The company's "Q1 free cash flow was negative $9.6 million."Key business updates highlighted the company's multiyear growth vectors to build the "agentic operating system to the trades." ServiceTitan emphasized its progress in the enterprise, commercial, and roofing segments.

During the quarter, the...

Veeva Systems Inc. reported fiscal 2027 first quarter financial results.

For the quarter, management stated that "Total revenue in the quarter was $883 million with non-GAAP operating income of $395 million." Management also noted that the first quarter EBIT margin arrived at 45 percent.

During the call, management introduced Veeva Falcon, describing it as the next chapter of their industry cloud that provides "agentic labor." This technology is designed to fully replace standard jobs within life sciences, initially focusing on the high-volume processing of clinical trial documentation and safety cases.

Management also detailed the recent acquisition of...

In Q2 2026, Broadcom reported total revenue reached a record $22.2 billion, up 48 percent year-on-year. Q2 operating margin was a record 67 percent, and adjusted EBITDA was 69 percent of revenue, or $15.2 billion.

Free cash flow in the quarter was a record $10.3 billion, representing 46 percent of revenue.

The Semiconductor Solutions segment generated a record $15 billion in Q2 revenue, driven by AI semiconductor revenue at a record $10.8 billion.

Infrastructure software revenue in Q2 was $7.2 billion.

During the quarter, management noted bookings for AI semiconductors were over $30 billion.

Broadcom detailed several long-term customer agreements, including...

CrowdStrike Holdings, Inc. reported first quarter fiscal 2027 total revenue of $1.39 billion, an increase of 26% over the first quarter of last year.

First quarter non-GAAP operating income was $325.7 million, representing a non-GAAP operating margin of 24%.

The company generated record free cash flow of $468.5 million, or 34% of revenue, for the quarter.

CrowdStrike achieved record first quarter net new ARR of $255.8 million, bringing ending ARR to $5.51 billion.

Non-GAAP net income attributable to CrowdStrike was a first quarter record of $283.4 million, or $1.10 on a diluted per share basis.

Management emphasized the company's position...

Medtronic reported "$9.8 billion in revenue" for the fourth quarter of fiscal 2026, up "9.9% on a reported basis and 6.6% organically." For the full fiscal year, the company "delivered 36.4billioninrevenue."MedtronicreportedfourthquarteradjustedEPSof"1.55" and full fiscal year 2026 adjusted EPS of "$5.53." The company also reported an "adjusted gross margin was 65.4%" for the quarter and an "adjusted operating margin of 25.5%." "Free cash flow was $5.4 billion in fiscal year '26."Management highlighted strong execution across the business, noting that within Cardiac Ablation Solutions, "PFA saw exceptional global growth of 145% with Sphere-9." The company also highlighted its Symplicity Spyral therapy, noting it is "annualizing at $100 million." During the...

GitLab Inc. reported its first quarter fiscal year 2027 financial results, with management stating "Revenue of $264 million, growth of 23%" and "operating profit of $38 million and a 14% non-GAAP operating margin" for the quarter.

For the first quarter, adjusted free cash flow was $147 million, representing a free cash flow margin of 56%.

Management also highlighted that they ended the quarter with 1,519 customers paying more than $100,000 a year, which is up 18% year-over-year, and a dollar-based net retention of 117%.

During the call, management provided updates on their Act 2 plan, which includes a workforce restructuring affecting approximately 14% or 350 team members...

Palo Alto Networks reported that "Total revenue for the quarter was $3 billion, growing 31% year-over-year". Management noted that the company "delivered $8.13 billion in NGS ARR during the third quarter". For the quarter, "diluted non-GAAP EPS... reached $0.85" and the company "generated adjusted free cash flow of $910 million". Additionally, "Total gross margin for the quarter was 75.8%" and "non-GAAP operating margin of 21.3% in Q3" was reported.A key business priority discussed was the "sustained tailwinds from our platformization strategy," with executives stating that "During the third quarter, we secured 110 net new platformizations". The company also highlighted progress on its recent acquisitions, noting they...

For the first quarter, executives reported that "Net sales for the quarter increased 3.4% to $10.8 billion" and "Same-store sales increased 2% during the quarter". Management highlighted that "For Q1, gross profit as a percentage of sales was 31.6%, an increase of 65 basis points". Additionally, "Operating profit for the first quarter increased 10.8% to $638.5 million" and "EPS for the quarter increased 12.4% to $2". Cash generation remained strong, with management noting, "In Q1, we generated significant cash flow from operations of $716.2 million".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"...

Costco Wholesale Corporation reported net income for the third quarter of 2026 at $2.192 billion, or $4.93 per diluted share.

Net sales for the third quarter were $69.15 billion, an increase of 11.6 percent from $61.96 billion in the third quarter of 2025.

Comparable sales were up 9.8 percent.

The company reported membership fee income of $1.373 billion. At the end of the third quarter, the company had 82.9 million total paid members and 41.2 million paid executive memberships.

The reported gross margin rate was 11.04 percent and the reported SG&A rate was 8.96 percent.

Management highlighted record-breaking volumes in their...

Dell Technologies Inc. reported its first quarter financial results, stating that revenue was $43.8 billion, up 88 percent.

Diluted earnings per share was $4.86, up 214 percent for the quarter.

Management noted the company delivered a record first quarter cash flow from operations of $4.1 billion.

Gross margin dollars grew 57 percent to $7.9 billion, with a gross margin rate of 18.1 percent.

Operating income grew 154 percent to $4.2 billion for the quarter, and net income was up 194 percent to $3.2 billion.

During the call, executives highlighted that demand was stronger than anticipated as customers decisively secured supply. In...

MongoDB reported total revenue of $688 million in the first quarter of fiscal 2027, representing a 25% increase year-over-year.

Atlas consumption revenue grew 29.4% year-over-year, accounting for approximately 75% of total first quarter revenue, adding a record $117 million. EA and Other revenue grew 13% year-over-year in the first quarter.

The company delivered first quarter non-GAAP income from operations of $123 million, yielding an operating margin of 18%.

First quarter non-GAAP net income was $112 million, or $1.32 per diluted share.

Operating cash flow for the first quarter was $202 million, and free cash flow was $198 million.

Management highlighted that MongoDB...

XPeng Inc. reported its financial results for the first quarter of 2026, noting that total revenues were RMB 13.03 billion for the first quarter of 2026.

Revenues from vehicle sales were $11 billion for the first quarter of 2026, while revenues from services and others were $2.03 billion for the first quarter of 2026.

Gross margin was 20.6 percent for the first quarter of 2026, and vehicle margin was 12.1 percent for the first quarter of 2026.

The company reported a loss from operations of RMB 1.87 billion for the first quarter of 2026 and a net loss of RMB 1.78 billion for the first quarter of 2026...

Salesforce reported Q1 revenue of " $11.13 billion " and delivered " $6.7 billion " in Q1 operating cash flow.

The current remaining performance obligation ended the first quarter at " $33.6 billion ". Management noted a Q1 non-GAAP operating margin of " 34.8% " and a Q1 GAAP operating margin of " 21.1% ". The company also commenced a " $25 billion accelerated share repurchase " program, which reduced the Q1 diluted share count by 10 percent year-over-year.

Management emphasized the company's focus on becoming an " Agentic enterprise " and announced that " Agentforce ARR surpassed the $1 billion mark " this quarter.

The company processed " 28.6 trillion tokens " and converted them into " 3.8 billion Agentic Work...

Financial Results For the first quarter of fiscal 2027, Snowflake reported product revenue of $1.334 billion, representing 34% year-over-year growth.

The company achieved a net revenue retention rate of 126%.

First quarter non-GAAP operating margin expanded over 300 basis points year-over-year to 12%.

Remaining performance obligations grew 38% year-over-year in the first quarter.

During the quarter, the company used approximately $300 million to repurchase 1.7 million shares and ended the first quarter with $4.4 billion in cash, cash equivalents, short-term and long-term investments.

Business Updates Snowflake added 616 net new customers in the first quarter, an increase of 38% year-over-year, bringing...

Zscaler, Inc. reported financial results for the third quarter of fiscal 2026.

Revenue for the quarter was $850 million, growing 25 percent year-over-year.

Total annual recurring revenue was $3.5 billion, representing 25 percent year-over-year growth.

Non-GAAP operating income was $196 million, with a non-GAAP operating margin of 23 percent.

The company generated a free cash flow margin of 16 percent for the quarter and ended the period with $3.5 billion in cash, cash equivalents, and short-term investments.

Management emphasized the company's positioning as the cybersecurity platform for the AI era, highlighting the need to protect against new powerful...

For the first quarter of 2026, PDD Holdings Inc. reported that total revenues increased 11% year-over-year to RMB 106.2 billion.

This growth was mainly driven by revenues from transaction services, which reached RMB 56.3 billion, up 20% from the same quarter last year.

Revenues from online marketing services and others for the quarter were RMB 49.9 billion.

The company reported a GAAP operating profit of RMB 19.6 billion and a non-GAAP operating profit of RMB 21.1 billion, representing a non-GAAP operating profit margin of 20%.

First quarter non-GAAP net income attributable to ordinary shareholders was RMB 14.1 billion, with non-GAAP diluted...

Workday reported its Q1 fiscal 2027 results, highlighting that subscription revenue in Q1 was $2.354 billion, up 14%.

Total revenue in Q1 was $2.542 billion, a growth of 13%.

The company reported non-GAAP operating income for the first quarter was $809 million, representing a non-GAAP operating margin of 31.8%.

Free cash flow for the quarter was $616 million, growth of 46%.

The 12-month subscription revenue backlog, or cRPO, was $8.81 billion at the end of Q1, growing 15.5%.

Chief Executive Officer Aneel Bhusri highlighted that Q1 was the best first quarter of new ACV growth in 5 years.

Management...

Zoom Communications, Inc. reported its first quarter fiscal year 2027 financial results, noting that in Q1 total revenue grew 5.5% year-over-year to $1.24 billion.

The enterprise segment saw revenue growing 7.2% year-over-year, representing 61% of total Q1 revenue.

Non-GAAP income from operations grew 9% year-over-year to $509 million, which yielded a non-GAAP operating margin of 41.1% for Q1. Non-GAAP diluted net income per share in Q1 increased to $1.55, and the company generated $500 million in Q1 free cash flow.

Additionally, the company announced that its Board authorized an incremental $1 billion share repurchase.

Management outlined three primary priorities: elevating workplace with...

For the second quarter, Deere reported that "Net sales and revenues were up 5% to $13.369 billion, while net sales for the equipment operations were up 5% to $11.778 billion". Management noted an "equipment operations margin of 16.9%". For the quarter, "Net income attributable to Deere & Company was $1.773 billion or $6.55 per diluted share". The company also "recognized a recovery of $272 million related to refund claims associated with IEFA tariffs" which benefited production costs for the quarter.

Executives stated that the results reflected a "strong diversified portfolio of businesses" and noted that "we are delivering double-digit margins across all segments". Regarding the agricultural...

Intuit reported third quarter fiscal 2026 financial results with revenue of $8.6 billion, up 10% for the quarter. GAAP operating income for the quarter was $4 billion versus $3.7 billion last year, and non-GAAP operating income was $4.7 billion versus $4.3 billion last year. GAAP diluted earnings per share for the quarter was $11.09 versus $10.02 a year ago, and non-GAAP diluted earnings per share was $12.80 versus $11.65 last year.

Management highlighted momentum in its growth engines, noting that assisted tax, its money portfolio, and the mid-market all grew north of 30%.

The company faced headwinds with the most price-sensitive segment of DIY tax filers earning...

Lowe's Companies, Inc. reported first quarter sales of $23.1 billion, with comparable sales increasing 0.6%.

The company generated GAAP diluted earnings per share of $2.90 and adjusted diluted earnings per share of $3.03 for the quarter.

Gross margin for the first quarter was 32.7%, and the adjusted operating margin rate was 11.5%.

Additionally, the company generated $2.8 billion in free cash flow in the first quarter.

Management highlighted that positive comparable sales for the quarter were driven by strong execution during the spring season and the SpringFest event, despite winter storms in February.

The company continues...

NVIDIA Corporation reported its first quarter fiscal 2027 financial results, delivering total revenue of $82 billion, which was up 85% year-over-year and 20% sequentially.

Data center revenue of $75 billion was up 92% year-over-year and 21% sequentially.

The company generated record free cash flow of $49 billion for the first quarter, up from $35 billion in Q4. GAAP gross margin was 74.9% and non-GAAP gross margin was 75%.

The company also returned a record $20 billion to shareholders and announced an $80 billion share repurchase authorization.

Management introduced a new reporting framework comprising data center and edge computing market platforms to better reflect growth...

For the first quarter, management stated that "Consolidated revenue in constant currency increased nearly $10 billion". They reported "First quarter adjusted operating income growth in constant currency of approximately 5%" alongside a "gross margin expansion of 29 basis points". The company noted it absorbed "approximately $175 million or about 250 basis points of operating income growth from higher-than-planned fuel costs".Key business updates highlighted that "Enterprise e-commerce sales grew 26%" and "3P marketplace sales growth in the U.S. reached the highest level in 2.5 years". Management mentioned that "our advertising business had one of its best quarters growing 37% globally". Delivery capabilities expanded, with executives noting...

During the first quarter, management reported that "net sales of $25.4 billion were 6.7% higher than last year." The company reported first quarter GAAP and adjusted EPS of $1.71.

First quarter gross margin rate was 29%, and the first quarter operating margin rate was 4.5%.

First-party digital sales grew nearly 9%, led by growth in same-day delivery of more than 27%. On the Target Plus third-party digital sales platform, the company saw nearly 60% growth in first quarter GMV.Management highlighted investments in its "Food Forward strategy" and a multiyear reinvention in its home categories. In the first quarter, the company opened seven...

CAVA Group, Inc. reported first quarter 2026 revenue of $434.4 million, representing a 32.2% increase year-over-year.

Same-restaurant sales increased 9.7%, driven by traffic growth of 6.8%.

The company reported net income of $23.6 million for the first quarter and diluted EPS of $0.20.

Adjusted EBITDA for the quarter was $61.7 million, a 37.6% increase over the prior year period. CAVA restaurant level profit was $108.9 million, or 25.1% of revenue.

The company opened 20 net new restaurants during the quarter, ending the period with 459 total locations.

Key strategic updates included the launch of Cavacor, a modern data platform, and Cava current...

The Home Depot, Inc. reported sales for the first quarter were $41.8 billion, representing an increase of 4.8% from the same period last year.

Total company comparable sales for the first quarter increased 0.6% and U.S. comparable sales increased 0.4%.

Diluted earnings per share for the first quarter were $3.30, and adjusted diluted earnings per share were $3.43.

The company reported a gross margin of 33% for the first quarter, which was a decrease of approximately 75 basis points from the first quarter of last year.

Operating margin for the first quarter was 11.9%.

Management stated they...

In Q1 2026, Baidu reported that total revenue of Baidu was RMB 32.1 billion.

Revenue from Baidu General business was RMB 26.0 billion, and revenue from Baidu Core AI-powered business exceeded RMB 13 billion for the quarter.

Operating income was RMB 3.2 billion with an operating margin of 10 percent, while non-GAAP operating income was RMB 3.8 billion with a non-GAAP operating margin of 12 percent.

Net income attributable to Baidu was RMB 3.4 billion, and diluted earnings per ADS was RMB 8.76 for the quarter.

Operating cash flow for Baidu was positive at RMB 2.7 billion in Q1. Total cash and...

Nu Holdings Ltd. reported a "quarter 1 historical high net income of $871 million" and "record revenue, reaching $5 billion for the first time in our history". The company achieved a "record low efficiency ratio below 18%", which officially reached "17.6% on a reported basis" for the quarter.

The gross profit line "closed at $1.88 billion in the quarter", and net interest income reached a "record $3.25 billion in the quarter".Management noted the "customer base now stands above 135 million customers", including surpassing "115 million customers" in Brazil and crossing "15 million customers" in Mexico.

The company emphasized its "AI transformation is a core...

Birkenstock Holding plc reported "second quarter revenues of EUR 618 million" for fiscal 2026.

This represented a "growth of 8% on a reported basis" and 14% in constant currency.

The adjusted gross profit margin for the quarter was 54.6%.

Management reported "Adjusted EBITDA in the second quarter of EUR 198 million" with an adjusted EBITDA margin of 32.1%.

Adjusted net profit for the quarter was EUR 93 million, and adjusted EPS was EUR 0.50.

Executives highlighted the resilience of the business despite disruptions in the Middle East, U.S. tariff increases, and high inflation.

Chief Executive...

Tencent Holdings Limited reported its financial results for the first quarter of 2026.

Management announced "total revenue was RMB 196.5 billion, up 9% year-on-year". During the first quarter, "Gross profit was RMB 111.3 billion, up 11% year-on-year" and "Overall gross margin was 57%, up 1 percentage point year-on-year". Executives highlighted that "Free cash flow was RMB 56.7 billion, up 20% year-on-year". On a reported basis for the quarter, "Operating profit was RMB 67.4 billion, up 17% year-on-year" and "Net profit attributable to equity holders was RMB 67.9 billion, up 11% year-on-year".Discussing strategic priorities, the company emphasized its progress in artificial intelligence.

Management stated "we start 2026 by making...

Alibaba Group Holding Limited reported its financial results for the quarter, stating that "total revenue was RMB 243.4 billion". Management noted that "Our GAAP net income was RMB 23.5 billion, an increase of 96%", while "Total adjusted EBITA decreased 84%" primarily due to strategic investments in technology businesses, quick commerce and user experience.

For the quarter, the company reported that "Operating cash flow was an inflow of RMB 9.4 billion" and "Free cash flow was an outflow of RMB 17.3 billion".During the quarter, Alibaba emphasized its two strategic priorities of AI plus Cloud and consumption.

The Cloud Intelligence Group saw...

Brookfield Corporation reported "Distributable earnings were $1.6 billion for the quarter" and $6 billion over the last 12 months.

Distributable earnings before realizations for the quarter were $1.4 billion or $0.59 per share, representing a 7% increase over the prior year quarter.

The Asset Management business generated $765 million of distributable earnings or $0.32 per share for the quarter, while the Wealth Solutions business delivered distributable earnings of $430 million or $0.18 per share in the quarter.

The operating businesses delivered distributable earnings of $360 million or $0.15 per share for the quarter.

Management noted the company raised $67 billion of capital so far...

Siemens Aktiengesellschaft reported Q2 2026 group orders reached EUR 24.1 billion.

Overall, "revenue growth reached 6%" driven by Digital Industries and Smart Infrastructure.

Industrial Business profit reached EUR 3 billion, translating to a profit margin of 15.4%.

Free cash flow picked up to EUR 1.7 billion compared to the first quarter.

Earnings per share pre PPA were EUR 2.81, including a gain of EUR 172 million from the divestment of the airport logistics business in the U.S..The company emphasized its strategy to operate as a "ONE Tech company" driven by four key levers.

The first...

For the first quarter of 2026, Sea Limited reported that "Total GAAP revenue increased 47% year-on-year to $7.1 billion in the first quarter of 2026." Management highlighted that "Adjusted EBITDA exceeded $1 billion for the first time," reporting a total adjusted EBITDA of $1 billion for the first quarter.

Net income was up by 7% year-on-year to $438 million.

Shopee reported first quarter GAAP revenue of $5.1 billion and an adjusted EBITDA of $223 million.

The Money segment reported first quarter GAAP revenue of $1.2 billion, up 58% year-on-year, with an adjusted EBITDA of $275 million.

Garena bookings grew 20% year-on-year to $931 million, generating GAAP...

AECOM reported second quarter 2026 results highlighting that "backlog increased 8% to a new record" and "The increase in NSR was driven by 8% growth in our Americas design business". Chief Executive Officer Troy Rudd noted that the "segment adjusted operating margin increased by 50 basis points to 16.5%" and they achieved a "design book-to-burn of 1.2x". In the International segment, Chief Financial and Operations Officer Gaurav Kapoor stated "NSR increased by 2% and declined by 3% on a constant currency basis". Capital allocation for the quarter included returning "$155 million of capital to shareholders in the second quarter through repurchases and dividends".Key strategic initiatives continued...

For FY March 2026, Mitsui & Co., Ltd. reported that Core Operating Cash Flow amounted to JPY 978.9 billion.

Profit for FY March 2026 amounted to JPY 834 billion.

Management noted that net interest-bearing debt increased by JPY 0.8 trillion from the end of March 2025 to JPY 4.1 trillion.

Shareholder equity increased by JPY 1.3 trillion compared with the end of March 2025 to JPY 8.8 trillion.

The net D/E ratio was 0.47x.

The company detailed its transition to the Medium-term Management Plan 2029, adopting the theme of "shaping future through trust and innovation". Management defined "Nonlinear Combinatory Value...

Hims & Hers Health, Inc. reported first quarter 2026 revenue of $608 million, representing a 4% year-over-year growth rate.

Subscribers grew 9% year-over-year to nearly 2.6 million.

First quarter adjusted EBITDA was $44 million, representing a 7% adjusted EBITDA margin, while GAAP net income declined to a loss of $92 million due to restructuring, M&A, and legal costs.

The company generated $89 million in cash flow from operations and $53 million in free cash flow, ending the quarter with $751 million in available cash and short-term investments.

First quarter gross margins were 65% on a GAAP basis, impacted by restructuring costs related to...

For the first quarter of 2026, Enbridge Inc. reported that "adjusted EBITDA remained consistent, DCF per share is up 0.03. FX rates year-over-year impacted all 4 business units." Regarding forward guidance, the company reaffirmed its 2026 expectations, stating it is "on track to achieve the midpoint of our guidance ranges for both EBITDA and DCF per share." The company also reaffirmed its "post-2026 growth outlook, a 5% average annual growth rate for EBITDA, DCF per share and EPS" through the end of the decade.

Key business updates for the first quarter included achieving "record first quarter volumes of 3.2 million barrels per day"...

Uber Technologies, Inc. delivered top line and profitability at or above the high end of their guidance for the first quarter of 2026.

Chief Executive Officer Dara Khosrowshahi stated, "Gross bookings were up 21% year-on-year". Mobility gross bookings accelerated to 20% with record margins, Delivery grew 23%, and freight returned to growth for the first time in nearly two years.

The company also reported that "Non-GAAP EPS increased 44% year-over-year". During the quarter, Uber returned a record $3 billion to shareholders through buybacks.

Uber surpassed 50 million Uber One members and 10 million drivers and couriers globally.

Uber One...