Third-quarter net profit in 2026 rose 6.5% year on year, below the first-half growth rate. Citi calculates that growth was 22.7% excluding two non-recurring items; gross margin also improved, and new orders rose 5.5% in the first nine months.
Citi believes slowing process advances and HBM's use of wafer capacity will keep advanced memory supply tight; Micron also expects DRAM supply and demand to be tighter in 2027–2028 than in 2026.
Citi expects Lumentum’s OCS business to drive near-term results above expectations, while lowering its CPO revenue forecasts and maintaining its overall earnings forecasts and price target.
Third-quarter adjusted earnings per share were $4.59, above Citi’s estimate and the market consensus. The Americas business was the main driver, but the midpoint of the company’s fourth-quarter guidance was below consensus, while Asia Pacific was also affected by costs associated with helium supply disruptions.
AWS revenue grew 39% year over year and its margin rose to 38.7%; North American retail margins also improved. However, AWS revenue fell short of higher buy-side expectations, and the midpoint of fourth-quarter operating profit guidance was below market consensus.
Citi expects easing congestion after the peak season to improve throughput, while higher utilization at existing overseas terminals could unlock operating leverage. However, tight capacity at Chinese terminals, expansion needs and costs continue to constrain returns.
Third-quarter revenue and net profit fell short of Citi’s expectations, while operating profit was broadly in line. Management says orders cover the full year of 2027, but Citi has lowered its forecasts for that year following adjustments to the expected ramp-up of next-generation products.
Citi estimates that Aluminum Corporation of China’s third-quarter net profit rose 59% year on year and fell 5% quarter on quarter, slightly exceeding its forecast. Gross profit fell 12% quarter on quarter, while lower capital expenditure drove free cash flow growth and the net gearing ratio fell to 1%.
China’s infrastructure investment has shifted from growth in previous years to contraction, while local land revenue and the borrowing capacity of financing vehicles are both constrained. Barclays believes the latest round of leadership transitions could still spur investment, but both its funding sources and destinations will change.
Microsoft’s Azure constant-currency revenue growth rose to 48% in the first quarter of fiscal 2027, while adjusted Microsoft 365 Commercial cloud growth reached 19%; Barclays raised its price target but expects capital spending to continue squeezing free cash flow.
Large US actively managed credit funds have generally underperformed their benchmarks over the past month. Goldman Sachs believes the economy can still support most issuers operating normally, but spreads remain tight by historical standards. It advocates select non-AI credit and prefers dollar to euro credit assets.
Weak restaurant demand and intensifying competition weighed on soy sauce and oyster sauce sales, while higher raw material prices and expense ratios further squeezed profit. Goldman Sachs cut its earnings forecasts for the next three years while maintaining its Buy rating on the H shares.
Revenue fell short of Goldman Sachs’ expectations, but the product mix, tariff refunds and cost control supported operating profit; fair-value losses on an investment weighed on net profit.
Water Quality revenue and core growth both exceeded Goldman Sachs’ expectations, while Product Quality & Innovation revenue fell short, though its margin improved significantly. The company raised its full-year earnings-per-share and margin guidance.
Samsung’s HBM4 revenue tripled quarter over quarter, and Goldman Sachs raised its fourth-quarter profit forecast; BYD and Geely reported results below the bank’s expectations, while Weichai improved its margins through its power generation business.
International transport volumes returned to growth, but higher chartering and fuel costs pushed third-quarter profit below BofA’s expectations. The bank raised its fourth-quarter freight-rate assumption and expects quarterly net profit to rise to 7 billion yuan.
Unitree Robotics’ revenue rose 70% year over year in the third quarter of 2026, but net profit fell 17%. BofA cut its earnings forecasts and believes the current valuation already reflects substantial expectations for future growth.
Oracle expects to raise 20 billion dollars in new financing over the next three years, below the market estimate of approximately 50 billion dollars. Bank of America also raised its revenue forecast but expects capital expenditure and cash flow pressure to remain substantial before fiscal 2028.
Stronger third-quarter orders and operating profit in 2026 and advanced packaging equipment support long-term growth, but intensifying competition and shifts in the timing of HBM demand led BofA to cut its earnings forecasts and valuation multiple.
JPMorgan says the decline in Longyuan’s third-quarter net profit attributable to shareholders exceeded its expectations. Wind power generation is stabilizing, but electricity prices and costs remain under pressure. Improved subsidy collection and expectations of a recovery in utilization hours in 2027 support its decision to maintain an Overweight rating.
