Earnings Recap - July 23, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$NOK** - Nokia posted a higher Q2 profit driven by strong AI infrastructure demand, with net sales rising 9%. The company raised its full-year profit outlook on this surge in AI-related business, supporting a positive market reaction. **$CCI** - Crown Castle reported Q2 earnings that beat estimates, reflecting solid demand for its infrastructure assets. The company’s strong results and outlook contributed to a favorable stock response. **$TDY** - Teledyne’s Q2 results impressed with strong demand, prompting Stifel to raise its stock price target to $775. The earnings beat and raised guidance underpinned the positive sentiment. **$SEIC** - SEI Investments maintained an Outperform rating with a raised price target to $119 by Keefe, Bruyette & Woods, reflecting confidence in the company’s earnings momentum. **$GSHD** - Goosehead Insurance reported strong Q2 results, maintaining an Outperform rating despite a lowered price target to $72 by Keefe, Bruyette & Woods. The solid earnings performance supports the positive view. **$PM** - Philip Morris International delivered a robust quarter with its first $11 billion revenue quarter, prompting Needham to maintain a Buy rating and raise the price target to $215. **$RJF** - Raymond James Financial reported Q3 earnings with strong metrics, supporting the firm’s positive outlook. **$CFG** - Citizens Financial posted Q2 earnings that beat estimates, reinforcing confidence in its financial performance. **$USB** - U.S. Bancorp delivered Q2 results with earnings beats, supporting a constructive market view. **$NTRS** - Northern Trust beat Q2 earnings expectations, with revenue topping estimates, contributing to positive investor sentiment. **$RGEN** - Repligen Corporation’s recent M&A activity and earnings call transcript indicate strong operational momentum. ### Misses & Negative Reactions **$TSLA** - Tesla’s Q2 earnings missed expectations, with analysts expressing caution despite the company’s AI ambitions. The stock reacted negatively as concerns over capex and execution surfaced. **$STMicroelectronics** - Despite beating Q2 earnings by $0.06 and topping revenue estimates, the stock plunged 15% premarket after issuing a soft Q3 sales outlook, signaling investor disappointment with guidance. **$OTLY** - Oatly’s Q2 earnings missed estimates, with revenue falling short, leading to a negative market reaction. **$MAR** - MarineMax missed earnings by $0.02 and revenue fell short of estimates, pressuring the stock. **$OLD** - Old Republic missed earnings by $0.02 and revenue fell short, contributing to a weak stock response. **$ALB** - Albemarle’s earnings call transcript revealed margin pressures and cautious guidance, weighing on shares. **$STZ** - While not a miss, analysts flagged dividend risk and margin pressures in the consumer staples sector, including Constellation Brands. **$GECFF** - Gecina posted a sales miss despite growth in its Paris portfolio, causing some investor concern. **$STOCKS WITH GUIDANCE CUTS OR WEAKNESS** - Stora Enso shares fell 12% after a profit rise failed to impress, and Interparfums slumped on disappointing H1 sales and guidance. ## Reporting Today Companies expected to report earnings today: - **$AMZN** - After market - Key metrics include AWS growth, overall revenue, and margin trends amid AI infrastructure spending. - **$META** - After market - Watch for advertising revenue trends and AI investment impact on margins. - **$MSFT** - After market - Focus on cloud backlog, AI capex, and guidance for growth sustainability. - **$GOOG / $GOOGL** - After market - Key metrics include cloud backlog ($514B noted), AI spending impact, and margin outlook. - **$ORCL** - After market - Oracle’s earnings will be closely watched for cloud growth and margin performance. - **$DUK** - Before market - Utility earnings with potential commentary on AI data center ratepayer protections. - **$NEE** - Before market - Renewable energy and utility earnings amid expanded AI data center ratepayer protection pledges. Light earnings calendar today for other sectors. ## Earnings Themes - **AI Infrastructure Spending**: Alphabet, Microsoft, and Nokia highlight a surge in AI-related demand, with Alphabet’s cloud backlog reaching $514 billion, signaling a long growth runway. However, this is accompanied by rising capital expenditures, pressuring margins and causing mixed investor reactions. - **Margin Pressures vs. Expansion**: While some companies like Crown Castle and Philip Morris show margin expansion and strong profitability, others such as Tesla and STMicroelectronics face margin compression due to higher costs and cautious guidance. - **Guidance Sentiment**: The market is seeing a mix of raised and lowered guidance. Companies like Traton and Lockheed Martin raised outlooks after strong quarters, while STMicroelectronics and MarineMax issued softer guidance, reflecting caution amid uncertain macro conditions. - **Dividend and Buyback Activity**: Dividend-yielding stocks like Philip Morris and Popular are attracting investor interest, with some raising dividends and authorizing buybacks, signaling confidence in cash flow stability. - **Energy and Utilities**: Utilities such as Duke Energy and NextEra are in focus due to expanded pledges to protect consumers from AI data center electricity cost hikes, potentially stabilizing ratepayer impacts and supporting steady earnings. ## Earnings Trade Ideas 1. **Long Alphabet ($GOOG / $GOOGL) on Cloud and AI Growth Despite Capex Concerns** Alphabet’s massive $514 billion cloud backlog and ongoing AI investments position it well for sustained growth. While capex is high, the long-term growth cycle is just beginning. Investors could consider buying on dips ahead of earnings to capture upside from cloud and AI momentum. 2. **Watch STMicroelectronics ($STM) for a Potential Rebound Post-Guidance Dip** Despite a 15% premarket drop on soft Q3 guidance, STMicroelectronics beat Q2 earnings and revenue. The selloff may present a buying opportunity if the company can navigate near-term challenges and benefit from the broader AI chip demand recovery. 3. **Consider Philip Morris International ($PM) for Dividend Stability and Growth** With a strong $11 billion revenue quarter and raised price targets, PM offers a compelling dividend yield in a turbulent market. Its ability to deliver steady cash flow and raise guidance makes it a defensive yet growth-oriented play. 4. **Cautious on Tesla ($TSLA) Given Execution and Capex Risks** Tesla’s Q2 miss and analyst concerns about AI capex suggest near-term headwinds. Traders might avoid or short Tesla until clearer signs of margin recovery and execution emerge. --- This morning’s earnings landscape is dominated by AI infrastructure spending and its dual impact on growth and margins. Investors should focus on companies balancing strong demand with disciplined capital allocation and watch for guidance shifts that could signal broader market trends.