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.
Forward Guidance hosts Felix Jauvin and Quinn Thompson say the Fed was not the main event for markets this week: its decision to hold rates steady had long been priced in. The AI trade is what is really unraveling, with hyperscalers’ capital spending guidance repeatedly falling short of expectations. Gold and the Binance theft also amplified volatility in the same week.
Mike Shepard, Bloomberg's senior editor for technology and strategic industries, says disappointing earnings have revived investor doubts about returns on massive AI spending. Hyperscalers are pressing ahead with AI investments while their core businesses show weakness, and memory shortages are amplifying those fears. The Binance theft presents a separate risk.
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.
Subsea revenue and margins beat consensus, prompting the company to raise its 2026 revenue and free cash flow guidance; however, both new orders and backlog for the quarter fell short of expectations.
In the first quarter of fiscal 2027, SanDisk’s revenue and earnings per share both exceeded market consensus, with data centers the main source of growth; adjusted free cash flow, however, fell short of expectations.
Inventory gains from rising oil prices and improved refining margins drove Sinopec’s third-quarter net profit up 64% year on year; however, both refinery throughput and refined fuel sales fell, and Bernstein maintained its Underperform rating.
In the third quarter of 2026, Samsung SDI’s operating profit and margin excluding US manufacturing tax credits both exceeded Bernstein’s expectations. US energy storage orders and production-line conversions supported growth, but weak electric vehicle demand, declining subsidies and cash flow constraints remain.
Global interest rate hikes and rising bond yields are weighing on the AI stock rally. BofA believes tech debt has become more attractive after its relative return fell to a 30-year low, while a new round of risk-asset allocation must wait for rate hikes to end and oil prices to fall.
Third-quarter server business drove better-than-expected earnings, but fourth-quarter PC shipments are expected to fall sharply quarter over quarter, and inventory adjustments could continue into the first half of 2027. BofA cut its price target from $145 to $100.
Teradyne’s third-quarter revenue and earnings beat expectations, but the ramp-up of computing projects at two large cloud customers is concentrated in the middle and latter part of 2027. JPMorgan expects demand for memory, industrial and product testing to support sequential revenue growth in every quarter of 2027.
Shop Pay is expanding into AI channels, while Sidekick is taking on more merchant operations and store-building tasks. JPMorgan believes the product updates can help attract merchants and transaction volume, but its model also forecasts slower revenue growth and a lower gross margin.
Data center demand drove quarterly revenue above expectations, while the consumer business declined as customers adjusted to higher prices. Next-quarter guidance exceeded the Wall Street consensus but was slightly below buy-side expectations heard by JPMorgan.
