Earnings Recap - July 28, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$AGYS** - Agilysys Inc reported better-than-expected Q2 earnings and raised its FY2027 sales guidance. This positive surprise led analysts to raise price targets, supporting a favorable stock reaction. **$PYPL** - PayPal Holdings beat Q2 earnings estimates by $0.10 per share and topped revenue expectations. The company also raised its full-year EPS guidance, signaling confidence in its turnaround efforts amid ongoing takeover speculation. **$SHW** - Sherwin-Williams posted adjusted Q2 EPS of $3.70, beating the $3.52 estimate, with sales of $6.789 billion surpassing the $6.602 billion consensus. The company raised its FY2026 GAAP EPS guidance to a range of $10.92-$11.32, above the $11.06 estimate, and its adjusted EPS guidance to $11.80-$12.20 versus $11.76 expected, fueling a strong positive market reaction. **$UPS** - United Parcel Service beat earnings by $0.10 and revenue topped estimates. The company raised its full-year guidance after an upbeat quarter and completion of the Amazon volume transition, supporting a positive outlook. **$ARMK** - Data not available for specifics, but noted in market-moving news for July 28. ### Misses & Negative Reactions **$BA** - Boeing posted a larger-than-expected Q2 loss due to rising Air Force One costs. Despite revenue and backlog being upbeat, the loss weighed on the stock, which is struggling to regain support. **$PNR** - Pentair shares slid after a revenue miss overshadowed an earnings beat, indicating margin or demand pressures impacting the top line. **$COR** - Corning shares fell 16% after forecasting weaker-than-expected Q3 sales, despite a modest earnings beat, highlighting concerns about near-term demand and guidance. **$RWT** - Redwood Trust missed earnings by $0.01 and revenue fell short of estimates, reflecting some operational challenges. **$UHS** - Data not available on earnings specifics, but Johnson & Johnson is noted for settling talc baby powder lawsuits for $5.5 billion, which could impact sentiment. ## Reporting Today Companies expected to report earnings today: - **$META** - Before market open - Investors will focus on Q2 results amid AI investment concerns and whether the company can overcome pessimism surrounding its AI initiatives. - **$MSFT** - After market close - Key metrics to watch include Q4 earnings and revenue, especially for signs of return on AI investments. - **$AMZN** - After market close - Market expects updates on AI strategy and cost outlook following recent reports of winding down flagship AI models. - **$FTNT** - Before market open - Fortinet's Q2 earnings will be closely watched as investors evaluate cybersecurity demand ahead of the report. - **$JNJ** - Data not available for exact timing, but Johnson & Johnson remains in focus due to legal settlements. - **$KO** - Coca-Cola recently reported Q2 beat and raised guidance; further commentary may be expected. - **$QQQ**, **$SPY** - ETFs with earnings exposure; no direct earnings but relevant for market sentiment. - **$UHS** - Data not available for exact timing. - **$AMKR**, **$PMN**, **$SHW** - Market-moving news noted for July 28; SHW already reported. Light earnings calendar today for many other names. ## Earnings Themes - Revenue trends show mixed signals: companies like Sherwin-Williams and PayPal are raising guidance and beating revenue estimates, indicating pockets of strength. However, names like Pentair and Corning highlight some revenue softness or cautious outlooks. - Margin pressures remain a concern in some sectors, especially where costs or operational challenges are rising, as seen with Boeing's loss driven by Air Force One charges and Pentair's revenue miss despite earnings beat. - Guidance sentiment is cautiously optimistic in several cases. Sherwin-Williams raised both GAAP and adjusted EPS guidance for FY2026, and PayPal lifted full-year EPS guidance. Centene also lifted annual profit forecasts on improved cost management, suggesting some companies are gaining confidence in their outlooks. - AI investment and strategy remain a key focus for tech giants reporting today, with Meta, Microsoft, and Amazon expected to provide updates amid investor skepticism and competitive pressures. ## Earnings Trade Ideas 1. **$SHW** (Sherwin-Williams) - With a strong Q2 beat and raised full-year guidance, Sherwin-Williams presents a compelling earnings trade idea. The company’s margin expansion and robust sales growth suggest continued upside potential, making it a candidate for a long position ahead of further market recognition. 2. **$PYPL** (PayPal) - PayPal’s Q2 beat and raised guidance amid ongoing takeover speculation create an attractive trade setup. Investors could consider positioning ahead of potential positive catalysts from strategic updates or deal developments, especially as the company executes its turnaround. 3. Watch **$META** and **$MSFT** earnings closely for volatility and trading opportunities. Both are under pressure due to AI investment concerns, but strong execution or positive guidance could trigger sharp rebounds. Conversely, any disappointment could deepen the tech sell-off, offering short-term trading plays. In summary, recent earnings highlight a bifurcated market with some companies demonstrating resilience and growth, while others face margin and revenue headwinds. The focus on AI strategy and cost management will be critical in upcoming reports, particularly among tech leaders reporting today.