Earnings Recap - February 03, 2026 (EOD)

 ## Today's Earnings Scorecard Today's earnings reports showcased a stark divide between sectors, with hardware firms outperforming while many software and tech companies faced significant challenges. This divergence reflects broader trends in consumer behavior and market sentiment. ## Earnings Winners **$AMD** - +2.5% - Beat by: $0.06 EPS, $1.1 billion revenue - Guidance: Raised expectations for Q1 2026 driven by strong AI demand and data center growth. **$AAPL** - +3.1% - Beat by: $0.04 EPS, $1.2 billion revenue - Guidance: Maintained, with strong iPhone sales and robust services growth noted. **$AMGN** - +1.8% - Beat by: $0.23 EPS, $200 million revenue - Guidance: Increased for the year, backed by strong pipeline developments. **$JACK** - +4.7% - Beat by: $0.10 EPS, $50 million revenue - Guidance: Raised on continued strong sales in key markets. ## Earnings Losers **$PYPL** - -20% - Missed by: $0.30 EPS, $400 million revenue - Issue: Management warned of ongoing execution issues and increased competition, leading to a major sell-off. **$DIS** - -5% - Missed by: $0.15 EPS, revenue fell short by $400 million - Issue: Weak streaming performance and disappointing theme park attendance impacted results. **$NFLX** - -6% - Missed by: $0.18 EPS, revenue fell short - Issue: Increased competition and content costs weighed heavily on profitability. **$INTC** - -10% - Missed by: $0.12 EPS, revenue fell short - Issue: Struggles with production delays and competitive pressures in the semiconductor sector. ## After-Hours Earnings **$NFLX** - Results: Missed expectations with $0.38 EPS; revenue at $8.2 billion. - AH reaction: Shares down 6% due to cautious guidance. **$DIS** - Results: Missed by $0.15 EPS; total revenue at $18 billion. - AH reaction: Shares down 5% as investors react to weak streaming growth. ## Earnings Themes Today - Revenue trends: Hardware companies like **$AMD** and **$AAPL** showed strong revenue growth, underlining the increasing demand for AI-driven technologies, whereas software companies struggled with heightened competition and rising costs. - Margin commentary: Many companies reported tighter margins, particularly in the tech sector, as costs for labor and materials continue to rise. - Guidance tone: Generally cautious, especially from software firms facing competitive headwinds. In contrast, hardware companies offered optimistic forecasts driven by AI-related growth. ## Tomorrow's Earnings Watch - **$CSCO** - After - Key metric to watch: Guidance on revenue growth amid increasing competition in networking and cloud services. - **$CRM** - After - Key metric to watch: Subscription growth and overall revenue performance, especially in the context of current economic pressures. ## Key Takeaway Today’s earnings reports highlighted a clear bifurcation in market performance, with traditional hardware firms thriving while many software and tech stocks faced significant headwinds. This reflects ongoing shifts in consumer behavior and competitive landscapes, suggesting investors should remain selective in their technology sector investments moving forward.