Data centers drove a 23% sequential increase in revenue in the first quarter of fiscal 2027, but cost pressures and cash flow performance remain important constraints; Bernstein’s higher forward EPS forecasts rely mainly on buybacks.
nVent’s third-quarter revenue rose 43.7% year over year, and its backlog increased sequentially to 2.6 billion dollars. Bernstein is optimistic about demand in 2027, but expects the two new plants’ revenue contributions to emerge mainly in the second half.
Repeat A200 orders and improving Matrics demand prompted Lasertec to raise the midpoint of its full-year order guidance to 450 billion yen; meanwhile, first-quarter revenue and operating profit were 33% and 41% below market consensus, respectively.
Third-quarter revenue and earnings per share exceeded market consensus by 6% and 15%, respectively. The company raised its full-year sales guidance and expects a Biktarvy price reduction to lower 2028 revenue by approximately 1.5 billion dollars; growth from new medicines and pipeline diversification are key to offsetting the pressure.
Third-quarter revenue exceeded market consensus by about 1.9 billion dollars, with a beat of about 1 billion dollars even after excluding favorable items. Bernstein raised its full-year revenue forecast while monitoring one-time revenue, channel pricing and the pace of the Foundayo rollout.
At the end of the third quarter of 2026, domestic institutions’ ownership of the BSE 500 rose to 18.3%, while foreign ownership fell to 16.2%. Bernstein screens for crowded and underweight opportunities using deviations from historical holdings, but signal performance varies markedly across lookback windows and market environments.
Interviews with legal experts by Bernstein show that data center deal activity remains strong, but power delivery timelines, tenant termination rights and credit guarantees together determine project financeability and risk allocation.
Through the end of September, US consumer discretionary stocks had fallen 9% for the year, while earnings expectations for the next 12 months had risen. Bernstein sees allocation opportunities in lower valuations, but high oil prices and cost pressures are affecting subsectors in different ways.
In the third quarter of 2026, Reddit revenue continued to grow rapidly, but US users fell quarter over quarter; Pinterest users continued to grow, but revenue fell below guidance. Bernstein believes the former’s user growth outlook is harder to judge.
KIOXIA’s second fiscal-quarter revenue rose 40% quarter over quarter, but its third-quarter revenue and operating profit guidance was nearly flat and well below market consensus. The company expects delayed enterprise SSDs to drive a rebound in shipments in the fourth fiscal quarter.
Geely’s overseas sales nearly quadrupled year on year in the third quarter, offsetting a decline in domestic sales, but a shift in the vehicle mix reduced margins from the second quarter. Bernstein raised its revenue forecasts while cutting its earnings expectations and target price because of an adjustment to export tax rebates.
Growth in overseas sales supported the performance of GAC Group’s own brands, with third-quarter revenue rising 17.8% year over year. However, the gross margin remained negative, the contribution from joint ventures and associates swung to a loss, and the net loss widened from a year earlier.
Revenue was nearly flat in the third quarter, while lower expenses supported the operating margin. Bernstein believes changes in the product mix, brand investment and packaging raw material costs will put further pressure on future earnings.
In the second quarter of the fiscal year ending March 2027, Tokyo Electron’s revenue and operating profit exceeded market consensus by 5.5% and 15.3%, respectively. The company raised its global equipment market outlook, but supplies of key components and working capital requirements continue to affect its ability to realize growth.
AMEC’s third-quarter revenue rose 17.2% year on year, missing the market consensus by 18%. Management said new orders and their growth rate reached record highs, but Bernstein believes supply shortages continue to constrain revenue growth. Gross margin improved, while recurring net profit fell quarter on quarter.
An increase in the profit share attributable to minority shareholders widened the gap between ChangXin Technology’s operating growth and growth in profit attributable to shareholders. Bernstein believes the company’s margins are now comparable to peers’, but third-quarter revenue was still below its forecast.
HSBC Qianhai believes regional travel demand and a forecast dividend yield of approximately 4% support the company’s valuation, but traffic diversion during expansion, higher capital expenditure and progress on toll-road reform will affect long-term cash flow.
Third-quarter revenue rose 49% year on year, but higher selling expenses left net profit below expectations. HSBC Qianhai Securities kept its revenue forecasts broadly unchanged while cutting its earnings forecasts and target price for 2026–2028.
Early Google CPU orders drove GUC’s third-quarter revenue and operating profit above expectations. JPMorgan raised its earnings forecasts for the next two years, but expects the company to remain highly dependent on Google and its overall gross margin to decline in 2027.
Teradyne’s memory test equipment sales rose in the third quarter, while SoC test equipment sales declined sequentially. Management expects the trends to reverse in the fourth quarter; JPMorgan sees dual-supplier sourcing as a medium-term trend worth watching but sees no need for undue concern about Advantest’s SoC test equipment share at present.
