Member Articles

Tesla’s Margins Squeezed; Free Cash Flow Negative in Q2

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Image Source: TradingView By Brian Nelson, CFA On July 22, Tesla (TSLA) reported mixed second quarter results, with revenue exceeding the consensus forecast but non-GAAP earnings per share coming in below expectations. Total revenues increased 26%, while gross profit expanded 23%, as gross margins contracted 41 basis points from the same period a year ago. Income from operations fell 57% year-over-year, as its operating margin contracted 269 basis points, to 1.4%. Adjusted EBITDA fell 4% year-over-year, as adjusted EBITDA margins shrunk 353 basis points, to 11.6%. In the quarter, non-GAAP net income and non-GAAP earnings per share fell 17% and 18%, respectively. Management summarized the results as follows: Q2 was a strong quarter for our core vehicle, energy and services … Read more

Alphabet’s Free Cash Flow Goes Negative in Q2

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Image Source: Alphabet By Brian Nelson, CFA On July 22, Alphabet (GOOG) (GOOGL) reported mixed second quarter results, but the strong performance was overshadowed by concerns over the return on the level of spending on artificial intelligence. Consolidated Alphabet revenues increased 24%, or 23% in constant currency, marking the 12th consecutive quarter of double-digit revenue growth. Google Services revenue increased 15% thanks in part to 17% growth in Google Search & other, while Google Cloud revenues increased a whopping 82%. Consolidated Alphabet operating income increased 30%, as its operating margin expanded 2 percentage points, to 34%. Management had the following to say about the results: Our AI investments are redefining what’s possible across every part of our business. Q2 was … Read more

Oracle Growing Fast, But Net Debt and Capital Spending Are Problematic

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Image Source: TradingView By Brian Nelson, CFA Oracle (ORCL) recently reported fourth quarter fiscal 2026 results where both revenue and non-GAAP earnings per share came in better than expectations. The company set a number of new records in the quarter: record total revenue of $19.2 billion, up 21% in USD and better than consensus of $19.09 billion; record total cloud revenue of $9.9 billion, up 47% in USD, record non-GAAP earnings per share of $2.11, up 24% in USD and better than the $1.97 consensus mark; and record remaining performance obligations of $638 billion, up $85 billion sequentially. Management included the following in the press release: The large increases in Oracle’s RPO and revenue are driven by the growing demand … Read more

NextEra Energy and Dominion Energy to Combine

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Image Source: TradingView By Brian Nelson, CFA NextEra Energy (NEE) announced on April 23 mixed first quarter results that showed a beat on the bottom line, but a miss on the top line relative to expectations. The results would soon be overshadowed by its deal with Dominion Energy (D), announced a few weeks later. Still, on an adjusted basis, NextEra Energy’s first quarter earnings were solid, coming in at $2.275 billion, or $1.09 per share, compared to $2.038 billion or $0.99 per share in the first quarter of 2025. Management had the following to say about the first quarter results: NextEra Energy is off to a terrific start for the year, delivering strong first-quarter results, with adjusted earnings per share … Read more

Amazon’s AWS Puts Up Fastest Growth in 15 Quarters

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Image Source: TradingView By Brian Nelson, CFA Amazon (AMZN) recently reported first quarter results that beat consensus estimates on both the top and bottom lines. Adjusted net sales advanced 15% in the first quarter compared to the first quarter of 2025. North America segment sales increased 12% year-over-year, while international sales increased 19% year-over-year (11% excluding foreign exchange rates). AWS segment sales increased 28% year-over-year, beating the consensus forecast. Amazon’s operating income increased to $23.9 billion in the first quarter compared to $18.4 billion in the first quarter of 2025 and consensus of $20.8 billion. North America segment operating income was $8.3 billion, compared to $5.8 billion in the first quarter of 2025. International segment operating income was $1.4 billion, … Read more

Chipotle’s Transaction Growth Returns to Positive in First Quarter

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Image Source: TradingView By Brian Nelson, CFA Chipotle (CMG) recently reported first-quarter 2026 results that were mixed. The company beat expectations on the top line, but non-GAAP earnings per share came in in-line with expectations. Total revenue increased 7.4%, to $3.1 billion, thanks to new restaurant openings and, to a lesser extent, comparable restaurant sales growth of 0.5%, better than the consensus estimate calling for a decline of 0.9%. In the quarter, Chipotle benefited from higher transactions of 0.6%, which was offset in part by a 0.1% decline in average check. Margins faced pressure in the quarter due to inflation in beef and freight, higher produce usage, and increased labor costs. Adjusted net income for the first quarter of 2026 … Read more

Cisco Raises Expectations on Strong AI Spending

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Image Source: TradingView By Brian Nelson, CFA Cisco (CSCO) recently reported fiscal third-quarter 2026 results for the period ended April 25 that came in better than expected on both the top and bottom lines. The company achieved double-digit top and bottom-line growth, exceeding the high end of its guidance range for the period. It posted record revenue of $15.8 billion (consensus was at $15.6 billion), up 12% year-over-year, with non-GAAP earnings per share of $1.06, up 10% year-over-year and exceeding consensus by $0.02. Cisco experienced record high demand for its technology in the period, with total product orders up 35% year-over-year (19% excluding hyperscalers). The company raised its expectations for AI infrastructure orders from hyperscalers to $9 billion in fiscal … Read more

Nvidia Delivers Exceptional Fiscal First Quarter Results

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Image Source: TradingView By Brian Nelson, CFA Nvidia (NVDA) recently reported first-quarter fiscal 2027 results for the period ending April 26 that beat expectations on both the top and bottom lines. The company showcased record revenue of $81.6 billion (consensus was $79.2 billion), up 85% from the year-ago period, while Data Center revenue also hit a record, up 92% from last year’s quarter. GAAP and non-GAAP gross margins were 74.9% and 75.0%, respectively, while GAAP and non-GAAP earnings per diluted share were $2.39 and $1.87, respectively, the latter increasing 140% and edging out consensus by $0.12 per share. Free cash flow increased to $48.6 billion in the fiscal first quarter, growing from $26.1 billion in last year’s period. Management had … Read more

Visa’s Results Show Consumer Spending Remains Resilient

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Image Source: TradingView By Brian Nelson, CFA Visa (V) recently reported second-quarter fiscal 2026 results that came in better than expected on both the top and bottom lines. Net revenue increased 17% (16% on a constant currency basis), driving GAAP net income 32% higher. Non-GAAP net income advanced 17%, as non-GAAP diluted earnings per share increased 20%, to $3.31. Payments volume increased 9% in the quarter, while cross-border volume increased 12%. Processed transactions increased 9%. Management had the following to say about the results: Visa’s second quarter net revenue growth of 17% was the highest since 2022, driving GAAP EPS up 36% and non-GAAP EPS up 20%. Consumer spending remained resilient, and our strategy and innovations fueled strong performance in … Read more

Republic Services Continues to Price Effectively

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Image Source: TradingView By Brian Nelson, CFA Trash taker Republic Services (RSG) recently reported first-quarter 2026 results that beat expectations on both the top and bottom lines. Quarterly revenue growth came in at 2.6%, which includes 2.8% organic growth from its recycling and waste business, a 1.3% organic decline from its environmental solutions business, and 1.1% growth from acquisitions. Net income on an adjusted basis came in at $526 million, or $1.70 per diluted share, which compares to $496 million, or $1.58 per diluted share, in last year’s quarter. Republic expanded its net income margin and adjusted EBITDA margin by 50 basis points in the period. Management had the following to say about the results: We are off to a … Read more