Earnings Recap - July 23, 2026 (EOD)

 ## Today's Earnings Scorecard The earnings season continued with a mixed bag of results across various sectors. Notably, several companies delivered beats on both earnings and revenue, driving their shares higher, while others missed estimates or issued cautious guidance, weighing on their stock prices. Big Tech remained in focus as Alphabet’s massive AI-related capital expenditure plans overshadowed its strong earnings growth, leading to a notable stock decline. Meanwhile, industrials and financials showed pockets of strength with margin improvements and raised outlooks. Overall, the market’s reaction to earnings reflected growing investor sensitivity to AI spending and margin pressures. ## Earnings Winners **$SNA** - +X% - Snap-on posted a beat supported by strong organic growth, acquisitions, and improved gross margins. The company’s ability to expand margins amid growth initiatives was well received. **$NVO** - +16% (after hours) - NovoCure beat Q2 forecasts and raised guidance, signaling confidence in profitability prospects. The stock jumped on the positive outlook. **$RTX** - +7% - RTX reported beat-and-raise results with strong demand for defense products and a record backlog, lifting full-year guidance. **$LMT** - +10.6% - Lockheed Martin topped Q2 estimates and raised its full-year outlook, benefiting from increased defense spending and missile production acceleration. **$MEDP** - data not available - Medpace reported strong Q2 bookings with a 28% surge and raised guidance, reflecting robust demand in clinical development services. **$WST** - +6% - West Pharmaceutical beat Q2 estimates and lifted guidance, driven by strong demand in pharmaceutical packaging. **$SFS** - data not available - SFS Group beat profit expectations on margin improvements, signaling operational efficiency gains. **$CLBK** - data not available - Columbia Banking topped Q2 EPS forecasts with margin gains and western expansion focus, though shares slipped slightly. **$RLI** - +3% - RLI Corp beat Q2 estimates, supported by strong underwriting results. **$WEX** - +5.4% - WEX topped Q2 estimates with solid revenue growth, boosting shares. ## Earnings Losers **$GOOGL** - -6% - Alphabet’s stock fell sharply despite strong Q2 earnings growth due to a massive increase in 2026 capex guidance to $205 billion, raising concerns about cash flow and shareholder returns. The company’s 33-quarter buyback streak ended, signaling a shift in capital allocation priorities. **$TSLA** - -14% - Tesla’s Q2 earnings missed expectations, and the stock plunged as investors reacted negatively to rising AI-related spending and a cautious outlook on growth initiatives like robotaxis. **$ALB** - data not available - Albemarle’s shares dropped after a profit miss and cautious outlook amid margin pressures. **$SLM** - data not available - Sallie Mae missed Q2 profit views, leading to a share decline amid concerns over loan performance. **$ABST** - data not available - Albertsons cut fiscal 2026 sales and profit outlook due to weaker grocery spending, causing shares to tumble. **$STLD** - data not available - Steel Dynamics missed estimates, weighed down by volume declines and pricing pressures. **$STX** - data not available - Seagate Technology reported a revenue miss despite margin expansion, reflecting ongoing demand challenges. ## After-Hours Earnings **$NVDA** - Results: data not available - Nvidia’s after-hours reaction was muted despite strong AI GPU dominance, as investors weighed concerns over Big Tech’s AI debt and spending. **$AMD** - Results: data not available - AMD’s after-hours trading showed gains following blowout results from Intel, highlighting competitive dynamics in AI infrastructure chips. **$META** - Results: data not available - Meta Platforms is set to report after close on July 29, with expectations for $60 billion in Q2 revenue and a focus on AI investments. **$AMZN** - Results: data not available - Amazon will report on July 30, with investors watching cloud growth and AI spending. **$INTC** - Results: data not available - Intel’s Q2 earnings are highly anticipated as the stock has tripled in 2026; results could be a reality check. ## Earnings Themes Today - **Revenue Trends:** Several companies reported solid top-line growth, particularly in industrials and financials, driven by organic expansion and acquisitions. However, some tech and retail names faced revenue headwinds amid cautious consumer spending. - **Margin Commentary:** Margin expansion was a key positive driver for companies like Snap-on, RTX, and SFS Group, reflecting operational efficiencies and pricing power. Conversely, margin pressures surfaced in sectors facing cost inflation and competitive challenges. - **Guidance Tone:** Guidance was mixed, with defense and industrials raising outlooks on strong demand, while retailers and some tech firms issued more cautious or lowered forecasts due to macroeconomic uncertainties and elevated AI spending. ## Tomorrow's Earnings Watch - **$META** - After hours - Key metric to watch: AI-driven revenue growth and advertising trends. - **$AMZN** - After hours - Key metric to watch: AWS cloud growth and margin impact from AI investments. - **$INTC** - Before market - Key metric to watch: Q2 sales growth and profit outlook amid AI chip demand. - **$CRM** - Before market - Key metric to watch: Subscription revenue and AI product adoption. - **$TSM** - Before market - Key metric to watch: Semiconductor sales and AI infrastructure demand. ## Key Takeaway Today's earnings highlight the growing divide between companies benefiting from AI-driven demand and those grappling with the cost implications of massive AI investments. While industrials and defense firms leveraged strong order backlogs and margin improvements to raise guidance, Big Tech’s record AI capex and the resulting cash flow pressures weighed heavily on investor sentiment. Alphabet’s sizable capex hike and the end of its buyback streak underscore a shift in capital allocation that is causing market jitters despite robust earnings. Investors are increasingly scrutinizing the balance between growth fueled by AI and the sustainability of margins and shareholder returns, setting a cautious tone as the earnings season progresses.