Earnings Recap - July 31, 2026 (EOD)

 ## Today's Earnings Scorecard The earnings season saw a mixed reaction today, with some companies delivering strong beats and raising guidance, while others missed estimates and faced downgrades. Notably, Amazon surged significantly on a robust AWS performance, while Apple experienced a steep decline following a cautious revenue forecast amid supply chain challenges. Western Union's disappointing results and lowered outlook weighed on its shares, reflecting concerns in the payments sector. Overall, the market displayed a rotation favoring cloud and AI-related growth stories, while legacy tech and certain consumer names struggled. ## Earnings Winners **$AMZN** - +15% - Amazon posted a blowout quarter driven by AWS, which achieved its fastest growth in 18 quarters. The company’s strong cloud performance and accelerated AI demand propelled the stock higher, with analysts raising price targets and highlighting the strategic significance of Amazon’s AI investments. Guidance was maintained with optimism on continued cloud expansion. **$BBAI** - data not available - BigBear.ai Holdings announced an ATM offering agreement for up to 100 million common shares, signaling confidence in capitalizing on AI demand. While specific earnings details were not provided, the company’s positioning in AI and data analytics remains a positive theme. **$LDOS** - data not available - Leidos Holdings’ board authorized a new stock repurchase program for up to 20 million shares, reflecting confidence in the company’s outlook and capital allocation strategy. **$MSFT** - data not available - Microsoft shares surged on strong earnings, supported by a $678 billion backlog and robust AI spending, reinforcing its leadership in cloud and AI infrastructure. ## Earnings Losers **$AAPL** - -7% (approximate) - Apple’s stock fell sharply, wiping out nearly $475 billion in market value after the company forecasted slowing growth due to chip shortages impacting supply. Despite a solid Q3 quarter and a 22% surge in iPhone sales, the cautious revenue outlook and supply chain constraints disappointed investors. The company maintained guidance but flagged increasing challenges ahead. **$WU** - - data not available but shares fell - Western Union missed quarterly EPS and revenue estimates, lowered its full-year 2026 outlook, and faced multiple analyst price target cuts, including RBC Capital lowering its target to $8 and Morgan Stanley to $6. The company cited weaker transaction volumes and competitive pressures as key issues. **$RBLX** - data not available - Roblox shares declined following a slowdown in platform transition and monetization, with BMO and Deutsche Bank cutting ratings due to concerns over user engagement and growth sustainability. ## After-Hours Earnings **$DLH** - Results: data not available - DLH Holdings saw insider buying activity from Mink Brook Asset Management, a 10% owner, suggesting confidence ahead of earnings. Results are expected after market close. **$MSA** - Results: data not available - MSA Safety Incorporated reported Q2 earnings with margin expansion and a closed Autronica deal, but full details and after-hours reaction are pending. **$COIN** - Results: data not available - Coinbase reported its Q2 results with a third straight quarterly loss amid weak crypto trading volumes, leading to mixed analyst reactions and price target adjustments. ## Earnings Themes Today - Revenue trends showed a clear bifurcation between companies benefiting from AI and cloud adoption, such as Amazon and Microsoft, versus those facing headwinds from supply chain issues or competitive pressures like Apple and Western Union. - Margin commentary was mixed; Amazon’s AWS margins held strong despite heavy AI investments, while some industrial and consumer companies noted margin pressure from inflation and supply disruptions. - Guidance tone varied significantly, with tech giants generally maintaining or raising outlooks based on AI-driven demand, while others, including Apple and Western Union, tempered expectations due to external challenges. ## Tomorrow's Earnings Watch - **$MCD** - Before Market Open - Investors will focus on McDonald's upcoming earnings for insights on consumer spending trends and global operations amid a cautious macroeconomic environment. Recent analyst actions include Mizuho maintaining a neutral rating but lowering the price target to $290. - **$COLM** - Before Market Open - Columbia Sportswear’s Q2 report will be scrutinized for apparel demand signals and margin outlook amid inflationary pressures. - **$DXC** - Before Market Open - DXC Technology’s results will be watched for signs of IT services demand and margin recovery, with RBC Capital recently maintaining sector perform but lowering the price target to $14. ## Key Takeaway Today's earnings underscore a market increasingly bifurcated by the AI and cloud revolution versus traditional sectors facing supply chain and competitive challenges. Amazon's AWS surge and Microsoft’s backlog highlight the accelerating AI-driven growth narrative, driving significant investor enthusiasm. Conversely, Apple's cautious outlook amid chip shortages and Western Union's disappointing results reflect ongoing headwinds in hardware supply and legacy payment services. Investors appear to be rotating capital toward companies with clear AI leverage and cloud infrastructure exposure, signaling a thematic shift in market leadership as earnings season progresses.