Third-quarter revenue in 2026 exceeded Citi’s expectations, but net profit fell short. A higher share of non-consumer business improves the outlook for the slow season. Citi raised its revenue forecasts while lowering its target price.
Citi expects Arabica coffee prices to fall 21% from the spot price at the time of its report over the next 12 months; low inventories and El Niño weather are important constraints on this bearish view.
Super Micro Computer’s revenue and gross margin for the first quarter of fiscal 2027 exceeded its preliminary ranges, with AI driving growth and the company raising its full-year guidance. Bernstein raised its earnings forecasts but remains cautious about converting backlog into revenue and free cash flow.
KLA raised its revenue outlook for the second half of 2026, with revenue guidance for the quarter ending in December above market consensus. Evercore ISI is positive on investment in memory and advanced processes, while expecting higher component prices to limit gross margin improvement and late-cycle valuation contraction to potentially offset some earnings growth.
The company plans to increase the share of humanoid robot reducers in its shipments and continue expanding capacity, but lower selling prices and labor costs during the expansion are constraining near-term gross margins. Citi also sees its in-house CNC machine tools as a competitive advantage.
BofA believes technology stocks’ reactions to earnings have outpaced the widening of earnings surprises. Meanwhile, election volatility implied by European equity index options is below historical levels, while South Korean stocks face a tug-of-war between memory fundamentals and short-term investor sentiment.
Bernstein expects the Texas data center moratorium to continue and has lowered its price targets for miners transitioning to AI infrastructure amid approval uncertainty and rising financing costs; the scarcity value of approved power coexists with project financing and delivery pressures.
The project pipeline grew 7% month over month in October, with capacity under construction rising to 87.2GW; but shelved capacity increased by 9.4GW in a single month, as political restrictions and project approvals affect the conversion of projects into construction.
A fire at an Italian wafer plant caused third-quarter revenue and gross margin to fall short of expectations, while production line reconstruction and legacy long-term contracts limit fourth-quarter improvement. Citi has cut its earnings forecasts and target price while remaining positive on a recovery in demand and prices in 2027.
Third-quarter optical module revenue rose more than 50% quarter on quarter, but tight DSP supply could affect deliveries over the next two quarters. Citi cut valuation multiples and maintained its Buy rating.
A-shares rose broadly on Wednesday afternoon, with turnover returning above 2 trillion yuan and the number of stocks hitting their first consecutive daily limit-up rising from 33 to 104. The column says the rebound’s continuation depends on trading volume, a recovery in heavyweight technology stocks and whether major indices can hold above their moving averages.
Improvement in European retail and Australian on-premise channels supported Asahi and Kirin’s third-quarter results; summer sales in Japan were weak, and Kirin’s boost from pre-tax stockpiling was smaller than expected. Bernstein lowered its earnings forecasts for Asahi and raised them for Kirin.
Waters delivered 10% organic revenue growth in the third quarter and raised its full-year guidance. Bernstein believes improving business in China, acquisition synergies and orders tied to pharmaceutical manufacturing returning to the US leave room for upside to the company’s cautious 2027 framework.
Life sciences drove Revvity's third-quarter organic growth and margin above market consensus, and the company raised its full-year guidance. Bernstein says AI demand's contribution is difficult to quantify separately and maintains its Market Perform rating on valuation grounds.
Fiserv’s merchant business and Clover growth were weak in the third quarter, but financial solutions performed better than expected. The company plans to repurchase $500 million in the fourth quarter and has doubled its long-term cost savings target; meeting full-year guidance depends on a significant acceleration in the merchant business.
Amgen’s growth products offset some declines in older drugs, and the company raised its full-year revenue and earnings-per-share guidance; Bernstein believes one-time sales benefits and expense timing also boosted third-quarter performance.
Preliminary first-line lung cancer data for IBI363 support further study, but small samples leave median progression-free survival subject to fluctuations; management also expects a broader product portfolio to support sales growth in 2027.
Management lowered its forecast for domestic reagent price declines in 2027 and set a test-volume growth target of around 15%; however, industry demand remains weak, and the situation in the Middle East and exchange rates are also weighing on overseas operations.
Management reiterated confidence in product sales growth of approximately 35% in 2026 and is advancing its hematologic oncology and autoimmune pipelines. Goldman Sachs sees potential in differentiated R&D and global partnerships, but its model forecasts a decline in profit metrics in 2027.
Growth in existing innovative drugs and new product launches support Hansoh Pharma's near-term targets; the company plans to expand its marketed innovative drugs from 9 to 30 by 2030, with its ADC and metabolic disease pipelines as important sources.
