Earnings Recap - July 21, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$ZION** - Zions Bancorporation reported Q2 earnings beating estimates with EPS of $0.18 above expectations and revenue topping estimates. This positive surprise reflects solid execution in a challenging environment and has helped stabilize the stock after recent weakness. **$MONY** - MONY Group posted record H1 2026 revenue and profit growth, driven by strategic transformation and AI initiatives. Despite the strong results, shares slipped slightly, likely due to profit-taking after the rally. **$BAWAG** - BAWAG Group AG reported a 21% rise in Q2 net profit to €255 million, reaffirming its 2026 outlook ahead of a planned PTSB deal. The strong earnings and confident guidance support the stock’s recent positive momentum. **$NVS** - Novartis beat Q2 EPS estimates by $0.23 and topped revenue expectations, with sales growth driven by newer medicines offsetting generic pressures. The company also backed its 2026 outlook, reinforcing confidence in its pipeline and commercial execution. **$GM** - General Motors delivered a quarterly core profit rise of 30%, fueled by strong truck and SUV demand. GM also raised its full-year outlook, signaling robust consumer demand and operational strength. **$3M** - 3M beat earnings by $0.16 and revenue topped estimates, with the company boosting its annual profit forecast driven by a resilient industrial unit. This solid performance underpins 3M’s defensive qualities amid market volatility. **$H** - Hasbro reported earnings beat by $0.15 and revenue topped estimates, raising annual forecasts on strong digital gaming demand, particularly from Magic: The Gathering. This reinforces Hasbro’s growth trajectory in the gaming segment. ### Misses & Negative Reactions **$DHR** - Danaher Corp shares fell 10.1% in pre-market after reporting Q2 results that disappointed investors. The company’s revenue and margin pressures, coupled with cautious guidance, weighed on sentiment. **$RPD** - Rapid7’s stock slid following a downgrade by Morgan Stanley citing AI competition concerns and growth worries, despite the company reporting earnings. The cautious outlook has dampened enthusiasm. **$DDOG** - Datadog was downgraded to Hold by Jefferies despite a raised price target, reflecting valuation concerns after recent gains. The downgrade pressured shares despite solid fundamentals. **$ADBE** - Adobe was downgraded with a price target cut to $240 amid growing AI fears impacting the stock. The bearish analyst stance reflects concerns about Adobe’s ability to capitalize on AI trends relative to peers. **$HLG** - Halliburton beat earnings and revenue expectations but the stock slid, possibly due to profit-taking or concerns about margin pressures despite the beat. ## Reporting Today Companies expected to report earnings today: - **$JPM** - Before market open - Watch for earnings and guidance amid ongoing IPO advisory for InMobi and comments from CEO Jamie Dimon on SpaceX and broader market risks. - **$JEF** - Before market open - Earnings to be monitored in the context of IPO advisory role for InMobi and banking sector dynamics. - **$IBM** - Before market open - Jefferies maintains Buy rating but lowers price target to $260; earnings will be scrutinized for AI-related growth and margin trends. - **$INTU** - Before market open - Earnings under pressure following Morgan Stanley downgrade on tax concerns. - **$TRIP** - Before market open - Analyst downgrades highlight AI exposure concerns ahead of earnings. - **$TRV** - Before market open - Earnings to be watched for insurance sector trends amid market volatility. - **$EFX** - Before market open - Equifax shares moved lower pre-market; earnings will be key to assess data and analytics demand. - **$CALX** - Before market open - Calix shares declined pre-market; earnings will reveal telecom infrastructure demand. - **$PD** - Before market open - Earnings to be monitored for semiconductor and AI infrastructure trends. - **$WDAY** - Before market open - Earnings under scrutiny amid AI investment and cloud software competition. - **$ZYBT** - Before market open - Earnings to be watched for biotech sector momentum. - **$AGIO** - Before market open - Biotech earnings to be analyzed for pipeline progress and R&D spend. - **$MGY** - Before market open - Earnings to be reviewed for real estate investment trust (REIT) performance. - **$ORGO** - Before market open - Earnings will be assessed for pharmaceutical manufacturing trends. - **$IKT** - Before market open - Earnings in focus for telecom and infrastructure services. - **$DMRA** - Before market open - Earnings to be watched for biotech innovation and market reception. ## Earnings Themes - Revenue growth remains uneven across sectors, with industrials like 3M and automotive like GM showing resilience, while tech and biotech face mixed investor sentiment. - Margin pressures are evident in companies like Danaher and Halliburton, reflecting cost inflation and competitive dynamics, while others like 3M are managing to expand margins. - Guidance sentiment is cautious overall, with some companies reaffirming outlooks (Novartis, BAWAG) and others lowering targets or expressing uncertainty (Danaher, Adobe). - AI continues to be a double-edged sword: it fuels optimism in some tech and biotech names but also raises valuation and competitive concerns leading to analyst downgrades. - IPO advisory activity, such as JPMorgan and Jefferies with InMobi, signals ongoing capital markets engagement despite broader market caution. ## Earnings Trade Ideas 1. **General Motors ($GM)**: With a 30% rise in core profit and raised full-year guidance, GM looks positioned to benefit from strong consumer demand in trucks and SUVs. Consider a long position ahead of earnings to capture momentum, especially as the company navigates supply chain normalization and electric vehicle investments. 2. **Novartis ($NVS)**: The company’s beat on EPS and revenue, driven by newer medicines offsetting generic pressures, combined with reaffirmed guidance, suggests a stable growth outlook in pharma. Investors seeking defensive exposure with growth potential in innovative drugs may find Novartis attractive, especially after recent share strength.