All articles tagged with #margins
Alphabet’s Q4 2025 revenue is expected around $111.4B, with cloud-margin expansion aiding profitability amid ad resilience; Amazon’s Q4 revenue is seen near $211.6B, supported by a strong online retail performance and a rising North America retail margin (~8.5%), while higher CapEx and AI-related cost dynamics keep cloud and AI bets as key risk and potential stock catalysts.
Super Micro Computer (SMCI) sees strong AI‑driven demand with a $13B+ backlog, but ten straight quarters of margin decline — gross margin was 9.3% in Q1 2026 — keep investors cautious that its best days may be behind it. An investor warns that further margin weakness into Q3 could crater the stock, saltier due to competition, while revenue growth and Nvidia collaborations remain. The Street's consensus is Hold with a $44 12‑month target, implying roughly 50% upside if margins stabilize or the stock pulls back.
Super Micro Computer is set to report Q2 FY26 after the close, with consensus EPS around $0.49 on roughly $10.4 billion in revenue as AI-driven demand supports its data-center servers; however, margins are seen at risk from competitive bidding and higher costs. Analysts are mixed, with a Hold consensus and an average target near $44, while options imply about a 12% post-earnings move.
UPS will cut up to 30,000 operational jobs and close 24 facilities in 2026 as it shifts toward higher‑margin shipments and continues winding down low‑margin Amazon deliveries; the cuts follow last year’s 48,000 job eliminations and aim for about $3 billion in annual savings, using attrition and a second voluntary separation program for full‑time drivers. The firm reported a fourth‑quarter beat and issued 2026 revenue guidance of about $89.7 billion, aided by stronger pricing per piece, but expects revenue to dip in the first half before rising again as the Amazon glide‑down ends.
Analysts expect Tesla’s Q4 2025 results to dip, with non-GAAP EPS around $0.45 and revenue about $24.8 billion as capital expenditures rise toward $3 billion and auto margins shrink from price reductions. Investors will scrutinize near-term milestones for Robotaxi/FSD, Cybercab and the cost of AI initiatives, plus how 2026 capex affects cash flow as Tesla scales its autonomous and AI-driven roadmap.
Tesla is due to report Q4 earnings after the market closes on Jan 28; analysts expect about $0.45 per share on roughly $24.8 billion in revenue, with investors eyeing updates on the Austin robotaxi program and ongoing self-driving progress amid margin pressure. The stock has traded cautiously ahead of the print, and options imply about a 6% post-earnings move amid mixed analyst views on Tesla’s risk/reward.
Netflix beat Q4 projections with $12.05B in revenue and 56-cent EPS, but guided full-year 2026 operating margin at 31.5% (below consensus 32.6%), including about $275M in costs tied to its Warner Bros. Discovery asset deal. The company paused share buybacks to fund the $83B acquisition, and its stock fell in after-hours trading. 2026 revenue guidance of $50.7–$51.7B sits above Street estimates, with plans to grow ad revenue and expand live sports and podcasts. Investors worry the Warner bid could be too rich amid potential bidding war, especially with Paramount Skydance; Disney multiples also underscore the valuation gap.
Despite a roughly 200% six-month stock surge and a record Q1 2026 revenue of $13.6 billion, top TipRanks investor PropNotes says Micron is still in a historic growth phase driven by AI-memory demand. He points to margins expanding from 25% to 45% year over year and argues AI workloads will keep memory-chip demand high, suggesting further upside over the next two years even as some analysts worry about memory pricing. MU now has a Strong Buy consensus (25 Buys, 1 Hold) with a 12-month target near $363.77, and even with insider selling by MU’s CEO, the long-run thesis remains intact.
Walmart's stock fell nearly 3% after missing quarterly profit expectations despite strong sales growth and improved margins, leading the company to raise its full-year earnings and sales guidance.
Chewy Inc. reported a 4.8% year-over-year increase in Q3 revenue to $2.88 billion, surpassing analyst expectations. The company achieved adjusted earnings per share of $0.20, significantly beating the forecasted $0.06. Chewy's gross margin improved by 80 basis points to 29.3%, and its adjusted EBITDA margin expanded by 180 basis points to 4.8%. Despite modest revenue growth, Chewy's operational discipline has led to improved profitability metrics. The stock saw a slight decline of 0.4% in after-hours trading.
Dell Technologies' shares fell nearly 18% after the company reported lower-than-expected AI server backlog and declining margins, despite beating analysts' revenue expectations for the fiscal first quarter. Concerns were raised about the profitability of Dell's AI initiatives, as AI servers are being sold at near-zero margins. Analysts have mixed reactions, with some seeing a buying opportunity and others noting the need for improved margin execution.
Dell Technologies reported better-than-expected fiscal first-quarter revenue and earnings, raising its full-year outlook and providing strong Q2 guidance. The company highlighted its Nvidia-based AI server backlog and opportunities in AI, despite challenges in margins. Dell's AI-optimized server orders surged, and the company emphasized its strategic partnerships with major tech firms. Despite the positive outlook, Dell shares fell 18.2% in extended trading.
Costco Wholesale reported solid fiscal 2024 second-quarter results, but the stock fell in extended trading due to a slight miss on sales and margins, leading to pressure on shares. However, the results did not significantly alter the strong business model of Costco.
Nvidia's stock price has not kept pace with its soaring earnings, leading to a multiple contraction over the last two-plus years. Despite this, the company's margins in the chip space are impressive, and its stock surged 16% after beating revenue expectations for the fourth quarter. Nvidia's market cap now surpasses that of Amazon and Alphabet, and its stock has climbed 237.2% over the last 52 weeks.
Spotify is set to report its fiscal fourth quarter earnings with investors focusing on margin improvements amid changes to its podcasting strategy. The company turned a profit in Q3 and expects further margin improvements in Q4, with subscriber numbers also expected to surge. Spotify has been bullish on improving profitability and has made changes to its podcast strategy, including distributing popular podcasts to additional services. The stock has surged about 80% over the past year.