Organic revenue rose approximately 40% year over year in the third quarter of 2026, while backlog grew approximately 60%. Bernstein raised its earnings forecasts, but its model also projects a decline in the overall adjusted operating margin in 2027.
Google Cloud revenue rose 102.6% year over year in the third quarter of 2026, beating market consensus. Alphabet’s overall revenue and profit fell short of expectations, while heavy capital expenditure pushed free cash flow into negative territory.
Third-quarter earnings per share slightly exceeded market expectations, but segment operating profit excluding the impact of IEEPA tariffs was slightly below expectations, and the book-to-bill ratio fell from 1.5 to 1.3. Bernstein cut its future earnings forecasts and price target.
Global iPhone sell-through fell 9.4% year over year in September, ending 18 consecutive months of growth. The Pro lineup started well, but the delayed standard-model launch and high channel inventory led Bernstein to flag downside risk to Apple’s fiscal 2026 fourth-quarter revenue.
Sales and economies of scale drove a further sequential recovery in third-quarter net profit, while overseas promotions, taxes and currency movements weighed on gross margin. Bernstein is optimistic about overseas localization and expansion, but has lowered its 2027 earnings forecast and price target.
The company’s third-quarter revenue rose 24.6% quarter on quarter, while net profit attributable to shareholders grew 8.5% sequentially. Nomura is optimistic about high-speed products and optical engine upgrades, but upstream price increases prompted it to lower its gross margin forecasts and cut its target price from 1375 yuan to 1196 yuan.
In the week ended 23 October, net subscriptions to ETFs tracking the CSI 300, ChiNext and STAR 50 indices rose sharply and were concentrated in those funds. Nomura Orient International believes sustained inflows can help ease selling pressure, but their current scale is insufficient to drive a sustained market reversal.
Third-quarter revenue rose sequentially, but both gross margin and net profit declined. Management expects improvement in the fourth quarter, while Morgan Stanley has cut its earnings forecasts for the next three years and its price target due to tight component supply.
Ford raised its 2026 profit guidance, but third-quarter automotive earnings fell short of JPMorgan’s expectations. Management expects overall profit to be roughly flat in 2027, provided pricing, mix and cost savings can offset a new round of cost increases.
Third-quarter revenue rose 7.5% quarter on quarter, below market expectations of around 15%; component shortages, delays in ramping up new systems and inventory write-downs weighed on performance. Nomura expects pent-up demand to be released over successive quarters, while cutting its earnings forecasts and target price.
In the third quarter of 2026, non-grid businesses and smart grids drove revenue growth, but the business mix, material costs and foreign-exchange losses weighed on profitability. Nomura is positive on the ultra-high-voltage order backlog while cutting its profit forecasts for the next two years.
Merck raised the lower end of its 2026 guidance, but Bernstein noted that part of the third-quarter revenue beat came from purchase timing and that full-year earnings-per-share guidance also benefited from tax rates and exchange rates.
Mastercard’s third-quarter revenue rose 14% year over year, supported by value-added services and network pricing. However, some consulting revenue was recognized early, payment volume grew more slowly than Visa’s, and client incentives will account for a larger share in the fourth quarter.
A higher share of cell turnkey business in the third quarter of 2026 lifted revenue above expectations while diluting gross margin. Nomura raised its earnings forecasts but lowered its target price after reducing its valuation multiple.
HII raised its 2026 guidance for shipbuilding revenue and Mission Technologies margins, but left its overall shipbuilding margin target unchanged. Bernstein says increasing output and improving margins remain priorities.
Large data center and enterprise customer signings strengthened in the third quarter, and the company raised its core FFO guidance for the third time this year; however, interconnection revenue growth remains slow, while expansion spending and cost pressures continue to affect the conversion of orders into revenue.
Bristol-Myers Squibb’s third-quarter revenue rose 7% year over year, with both its growth and mature product portfolios exceeding market consensus; however, gross margin fell and Cobenfy sales missed expectations. The company raised its full-year revenue guidance, while Bernstein turned its attention to declines in mature products and trials of new drugs.
The U.S. cycle indicator is near a four-year high. Morgan Stanley maintains its preference for global equities over fixed income and for U.S. equities; historically, risk assets can still rise if the cycle turns defensive, but drawdowns deepen significantly in the market stress phase.
Citi observes that upward revisions to semiconductor earnings forecasts have narrowed from the previous quarter, with a more pronounced slowdown in equipment; tight memory supply and cloud providers’ capital spending support demand.
Higher Citation jet deliveries drove growth in aviation, and Textron Systems also contributed profit. Bell was weighed down by lower MV-75 and commercial sales, but the company raised its full-year profit and cash flow guidance after Congress approved a related funding adjustment.
