=== TODAY AT A GLANCE ===
Apple: Ternus Handoff · Meta: AI Bill Comes Due · Samsung: Records Meet A Rout · Visa: Volume Accelerates · Mastercard: The Crack Didn't Widen · AbbVie: Growth Engines Hold · Lam Research: The Ramp Steepens · Coca-Cola: Volume Carries The Quarter · P&G: Iran Cost Bites · Arm: Data Center Offsets Phones · KLA: 2027 Gets Bigger · AstraZeneca: Pipeline On Trial · Airbus: The Ramp Finally Shows · Qualcomm: Diversification On Trial · Boeing: Cash Turns Positive · Starbucks: Measurable Momentum · Fortinet: The Surge Extends · UPS: The Reset Lands · Cadence: AI Demand Compounds · Robinhood: Firing On All Cylinders · Mondelez: North America Turns · Hilton: Mid-Scale Rebounds · Ferrari: Scarcity Pays · Ford: Trucks Cover The Damage · PayPal: The $60 Question · Coinbase: Winning a Smaller Market · Live Nation: World Tour Expands · Chipotle: Momentum Meets A Wobble · Yum! Brands: Pizza Hut Heads Out · Hershey: Price Over Volume · Roblox: Monetization Trade-Off · Reddit: Monetization Outruns Users · Rivian: R2 Hits the Road · SoFi: Records Meet A Shrug · Align: Scanners Down · Teladoc: The BetterHelp Pivot
================================================================
=== 1. APPLE (AAPL) — Ternus Handoff ===
Apple's Q3 revenue rose 16% Y/Y to $109.4 billion ($0.5 billion beat), while EPS reached $2.02 ($0.13 beat). Tariff refunds contributed $0.11 to EPS, but underlying results still came in ahead of expectations. These were June quarter records, yet shares fell about 6% after earnings.
iPhone revenue grew 22% to a record $54.3 billion. Mac jumped 29% to a record $10.4 billion. China rebounded 22% to $18.8 billion. Services slowed to 12% growth, reaching $30.7 billion.
This was Tim Cook's final earnings call before John Ternus takes over in September. He leaves Apple with a good problem to have: the company cannot make enough devices.
Cook said unexpectedly strong iPhone and Mac demand exhausted Apple's flexibility to secure more advanced chips. These constraints primarily affected Mac this quarter and will broaden to iPhone, Mac, and iPad in the September quarter. Apple still guided revenue growth to 9%–11%, with iPhone expected to grow in the mid-teens, but the outlook came in below consensus.
Memory is becoming the larger margin problem. Cook described the market as a "hundred-year flood," with rapidly rising prices already forcing Apple to increase some Mac and iPad prices. Excluding tariff benefits, gross margin declined sequentially, and Apple expects another step down in Q4 as cheaper inventory runs out.
Meanwhile, R&D spending rose 32% Y/Y to $11.7 billion as Apple accelerated its AI investment. Cook also suggested heavy Siri users could eventually be pushed toward more expensive iCloud+ plans, offering an early glimpse of how Apple might monetize its AI overhaul.
Ternus inherits one of Apple's strongest product cycles in years, but also a supply chain that cannot fully support it and a margin structure increasingly exposed to memory inflation. The next iPhone cycle must prove Apple can manage both pressures while convincing customers that its AI catch-up is finally real.
=== 2. META (META) — AI Bill Comes Due ===
Meta's Q2 revenue rose 28% Y/Y to $60.8 billion ($0.5 billion beat). GAAP EPS fell 13% to $6.18, but the quarter included $2.4 billion in legal charges related to youth-safety litigation and $1.2 billion in severance costs. Excluding those items, operating income would have risen 9% rather than declined 8%. Despite the underlying beat, shares fell as much as 10%.
The selloff came down to two things:
Free cash flow nearly disappeared. Meta generated $31.9 billion in operating cash flow but spent $31.1 billion on capex and finance leases, leaving just $784 million in free cash flow, down 91% Y/Y. It also issued $24.9 billion of debt and repurchased no stock. Meta can afford the buildout. But for the first time, AI spending has effectively consumed the quarter's free cash flow, halted buybacks, and pushed the company into the debt market.
The CapEx floor moved higher again. Meta narrowed its FY26 outlook to $130–$145 billion from $125–$145 billion, raising the bottom end for the second consecutive quarter. Its new 1 GW El Paso data center venture shows how it plans to fund the next stage: BlackRock will own 80%, while Meta retains 20% and leases the entire campus. The structure reduces the upfront cash burden without reducing Meta's long-term commitment.
The irony is that AI is already paying off inside the ad business. Advertising revenue grew 27% Y/Y as impressions increased 14% and average price per ad rose 12%. Meta's latest models generated an 8% increase in ad clicks and a 16% uplift in Facebook conversions, while Advantage+ products surpassed a $75 billion annual revenue run rate. AI is already producing measurable returns inside the existing business.
Family DAP reached 3.60 billion, Instagram crossed two billion daily users, and Threads surpassed 500 million monthly users. WhatsApp paid messaging and subscriptions also pushed Family of Apps 'other' revenue above $1 billion for the first time.
Zuck also offered a more concrete return path than last quarter. Beyond improving ads and engagement, Meta may sell paid model access and lease excess computing capacity. He said outside buyers have offered a "meaningful premium" to Meta's cost, though building a real cloud business will require distribution and software capabilities Meta does not yet have.
Reality Labs lost another $4.6 billion, while revenue rose 16% on stronger AI-glasses sales.
Meta guided Q3 revenue to $61–$64 billion, with the midpoint below consensus, and raised FY26 expenses to $165–$169 billion. Meta is already earning more from ads, and it now has plausible ways to monetize models and excess compute. The problem is that the spending is arriving all at once, while some of the new revenue streams will take time to meaningfully contribute.
=== 3. SAMSUNG (Samsung Electronics) — Records Meet A Rout ===
Samsung's Q2 revenue rose 130% Y/Y to a record KRW 171.5 trillion (~$119 billion), and operating profit surged more than 18-fold to a record KRW 89.5 trillion (~$62 billion), both roughly in line with preannounced estimates. Net profit hit KRW 71.6 trillion, up nearly 1,300%. The chip division did essentially all of it.
Yet the stock finished slightly lower. Samsung has fallen more than 40% from its June peak in a chip-sector rout on AI-spending fears, and the Kospi (main stock market index of South Korea) just logged its worst month on record.
Management pushed the shortage horizon out again:
Memory chief Jaejune Kim said supply constraints worsen in 2027 and now persist through 2028, with unmet demand this year deferred to next.
Samsung has locked in 60–70% of HBM capacity under multi-year contracts, finalizing deals with five major AI data-center customers and negotiating five more.
It shipped the industry's first HBM4E samples, staying ahead of SK Hynix. On the flip side, mobile swung to a ~KRW 700 billion loss, squeezed by the same component prices fueling the memory boom.
HBM4E samples landed on schedule and the contract book filled to 60–70% of capacity. With the shortage extended to 2028 and DRAM/NAND prices guided up 15–20% sequentially into Q3, the near-term earnings picture looks bright. But the multiple stays hostage to the AI-bubble debate. Memory earnings are inherently cyclical. A low P/E means little when the market is betting the peak is near.
=== 4. VISA (V) — Volume Accelerates ===
Visa's Q3 net revenue (June quarter) rose 14% Y/Y to $11.6 billion ($200 million beat) and adjusted EPS grew 11% Y/Y to $3.32 ($0.09 beat). Total payment volume cleared $4 trillion in a quarter for the first time.
Every volume metric sped up from Q2: payments volume grew 10% (from 9%); cross-border volume grew 13% (from 12%); processed transactions grew 10% (from 9%).
CEO Ryan McInerney is leaning into the AI-and-stablecoin pivot, with a new Visa Stablecoin Platform and an OpenAI agentic-commerce partnership, while the same day cutting ~2,600 jobs, about 7% of headcount, mostly in tech and product.
Client incentives, the contra-revenue Visa pays partners, rose 18% to $4.7 billion, outpacing revenue. That's the cost of the client wins driving volume.
Visa trimmed full-year net revenue growth to the low end of low teens, moving several metrics to the bottom of their ranges.
Visa guided Q4 net revenue growth to the high end of low double digits and EPS to the low end of mid-teens. Management pinned the softer guide on currency volatility it expects to persist as a drag.
=== 5. MASTERCARD (MA) — The Crack Didn't Widen ===
Mastercard's Q2 revenue rose 14% Y/Y to $9.3 billion ($220 million beat) and adjusted EPS grew 21% Y/Y to $5.04 ($0.26 beat). CFO Sachin Mehra said the Middle East impact moderated and was less severe than feared. Cross-border volume held at 12%, down only slightly from Q1's 13%.
The engine is tilting toward services:
Value-added services grew 20% (18% currency-neutral), accelerating sequentially, with cybersecurity increasingly central after the Recorded Future deal.
Payment network revenue grew 10% on 8% gross dollar volume growth to $2.9 trillion, and operating margin expanded to 61.1% from 59.9%.
Mastercard raised FY26 net revenue guidance to the "low teens" and repurchased $4.9 billion in stock. April's cross-border slowdown turned out to be transitory, and Mastercard's higher exposure became a tailwind.
=== 6. ABBVIE (ABBV) — Growth Engines Hold ===
AbbVie's Q2 revenue rose 10% Y/Y to $17.0 billion ($230 million beat), while adjusted EPS was $3.65 ($0.04 beat). Adjusted operating margin expanded 400 bps to 48.3%.
Immunology grew 15% to $8.8 billion. Skyrizi grew 24% to $5.5 billion, and Rinvoq rose 25% to $2.5 billion, both beating expectations. Management said Skyrizi's momentum has not slowed since J&J launched its oral psoriasis competitor Icotyde. Humira fell another 36% to $756 million but is increasingly irrelevant to the growth story.
Neuroscience revenue jumped 20% to $3.2 billion, led by Vraylar crossing $1 billion and Parkinson's treatment Vyalev reaching $256 million. Botox also improved for a third consecutive quarter, although Juvederm remained soft and the faster-acting toxin is still awaiting US approval.
AbbVie raised its underlying revenue outlook by another $300 million but lowered adjusted EPS guidance to $13.87–$14.07. The reduction reflects $0.14 of dilution from the planned $10.9 billion acquisition of Apogee Therapeutics, partially offset by stronger operations.
Skyrizi and Rinvoq continue to replace Humira faster than expected. The next question is whether Apogee can extend AbbVie's immunology dominance into the 2030s without slowing deleveraging or distracting from the Botox recovery.
=== 7. LAM RESEARCH (LRCX) — The Ramp Steepens ===
Lam Research's Q4 revenue (June quarter) rose 30% Y/Y to $6.7 billion ($50 million beat) and adjusted EPS was $1.82 ($0.14 beat). Gross margin hit 52%, the highest in 20 years, with operating margin at a record 38%. Unlike the semi-equipment names that sold off this season, Lam rallied because the Q1 FY27 guide was far ahead of consensus.
Lam projected September-quarter revenue of $8.1 billion at the midpoint against a ~$7.1 billion consensus, more than 20% sequential growth, with EPS of $2.00–$2.30 versus a ~$1.84 estimate. The company is accelerating into its next fiscal year.
The AI-driven demand is broadening across Lam's franchises:
NAND revenue doubled sequentially on the shift to 200+ layer architectures and AI's appetite for persistent memory.
Advanced packaging growth guidance jumped to more than 70% Y/Y on chiplets, HBM stacks, and panel-level packaging.
CSBG jumped 17% sequentially to $2.5 billion, extending the $2 billion milestone from last quarter.
The margin framework moved up too. Lam now targets mid-50s gross margin and mid-40s operating margin over the next several years, and it's tracking toward a high-30s share of WFE faster than it guided at the 2025 Investor Day.
CEO Tim Archer called for a third straight year of outperforming the WFE market. The constraint now is whether customers can actually absorb tools at this delivery pace, because that's the only thing standing between the backlog and the revenue.
=== 8. COCA-COLA (KO) — Volume Carries The Quarter ===
Coca-Cola's Q2 revenue rose 7% Y/Y to $13.4 billion ($230 million beat) and comparable EPS grew 11% Y/Y to $0.97 ($0.04 beat). Organic revenue grew 6%, well ahead of the ~3.6% consensus. The stock jumped about 5% to a fresh high, up more than 20% this year. Q2 absorbed a shipment-timing drag and still beat expectations.
Volume did the work:
Global unit case volume grew 5%, positive in every segment, led by India, China, the US, and Brazil, while price/mix added just 2% on CEO Henrique Braun's affordability-over-pricing pivot.
Zero Sugar climbed 16% and Diet Coke 7%, and the FIFA World Cup sponsorship lifted Trademark Coca-Cola volume 5% and Powerade 8%.
Comparable operating margin expanded to 35.6% from 34.7%, even though the affordability push has been a margin drag.
Coca-Cola raised FY26 comparable EPS growth to 9%–10% (from 8%–9%) and now expects organic revenue growth of ~5% (vs. ~4.6% consensus). The back half will face some headwinds with six fewer shipping days in Q4 and the CCBA (Coca-Cola Beverages Africa) divestiture, now framed as a 2%–3% revenue headwind closing late Q3 or Q4. With price/mix deliberately at 2%, volume is the main lever keeping organic growth at the top of the range.
=== 9. PROCTER & GAMBLE (PG) — Iran Cost Bites ===
P&G's Q4 revenue (June quarter) rose 2% Y/Y to $21.2 billion ($180 million miss) and core EPS was $1.43 ($0.02 beat), falling from $1.48 a year ago. Organic sales were flat, missing the ~1.9% consensus, with volume, pricing, and mix all neutral. After last quarter's 3% organic rebound, this is a clear deceleration, and every segment except beauty fell short.
Beauty stayed the bright spot at 4% organic growth (6% reported), while grooming and the baby, feminine & family care segment both fell 1%. Underneath the weak print, P&G grew Greater China market share for the first time in 15 quarters.
But the FY27 guidance set the tone:
Core EPS is expected at $6.89–$7.11 (midpoint $7.00 vs. ~$7.02 consensus) with organic sales growth of just 1%–3%.
A ~$1 billion after-tax headwind from higher raw materials, energy, and transportation tied to the Iran war, part of a $0.56-per-share drag that's an 8% hit to core EPS growth. Guidance assumes Brent near $90, so escalation makes it worse.
The bull case is that the headwinds are macro-related. Analysts remained bullish, framing P&G as early in a shift from share losses to stabilization. Watch first-half FY27 organic growth, because management promises sequential acceleration while absorbing the cost peak up front. If volume doesn't turn while the Iran costs peak, P&G's "double down on strategy" plan is really just waiting for the macro to improve.
=== 10. ARM (ARM) — Data Center Offsets Phones ===
Arm's Q1 FY27 revenue (June quarter) rose 22% Y/Y to $1.29 billion ($20 million beat) and non-GAAP EPS surged 29% Y/Y to $0.45 ($0.05 beat).
Both licensing (+23% to $574 million) and royalties (+22% to $715 million) cleared consensus, with royalties beating after last quarter's memory-driven miss. Shares still fell about 7-8%. The clean beat was overshadowed by the smartphone slowdown, now compounded by a broad semiconductor selloff punishing chip names on AI-spending doubts.
Data center is doing what the bull case needs:
Data center royalties more than doubled Y/Y for a second straight quarter, Neoverse shipments passed 1.5 billion cores, and Nvidia, AWS, Google, and Microsoft are all deepening adoption.
The AGI CPU pipeline now exceeds $2 billion through FY28, more than double the $1 billion Arm outlined last quarter, though guidance still reflects only that initial $1 billion on wafer supply.
However, CFO Jason Child said royalty growth would slow to low-to-mid teens in Q2 on smartphone weakness, mitigated by pushing customers to higher-rate Armv9 and Compute Subsystems.
Arm guided Q2 FY27 revenue to ~$1.38 billion (vs. ~$1.34 billion consensus) and EPS to ~$0.47 (vs. ~$0.45 consensus). Q2 guidance suggests the phone pressure isn't done. Capacity is the real question now. With demand at $2 billion and guidance holding $1 billion, watch whether Arm raises that number.
=== 11. KLA (KLAC) — 2027 Gets Bigger ===
KLA's Q4 revenue (June quarter) rose 15% Y/Y to a record $3.7 billion ($60 million beat) and adjusted EPS of $1.05 beat by $0.05. Those per-share figures reflect the 10-for-1 stock split from June 11, so they aren't comparable to prior quarters at face value. It was a clean beat-and-raise, but the stock sold off after a run pre-earnings.
KLA lifted its 2026 wafer equipment market view, including advanced packaging, to the low $150 billion range from "$140 billion plus" last quarter. CEO Rick Wallace said AI demand signals have strengthened materially since March and carried his 2027 conviction further across logic, DRAM, HBM, NAND, and packaging. Advanced packaging process control revenue was raised again to ~$1.1 billion in 2026, up more than 70% Y/Y.
Memory pricing is still a ~100-basis-point drag on gross margin, which CFO Bren Higgins said likely continues through 2027 because the company can't change prices on orders already taken.
KLA guided Q1 FY27 revenue to ~$4.0 billion (vs. ~$3.9 billion consensus) and adjusted EPS to ~$1.16 (vs. ~$1.13 consensus), with second-half growth around 20% over the first half. With memory costs locked in through 2027 and pricing off the table, watch whether gross margin holds 62.5% as volume ramps, or whether serving a bigger market comes at structurally lower margin.
=== 12. ASTRAZENECA (AZN) — Pipeline On Trial ===
AstraZeneca's Q2 revenue rose 6% Y/Y to $15.4 billion ($50 million miss) while core EPS was $2.63 ($1.36 beat). The stock is still down year-to-date after the Wainua heart drug missed its primary endpoint in the CARDIO-Transform trial, a rare late-stage failure for a company that puts its trial success rate at 75%. The question this quarter was whether one high-profile miss says anything about the pipeline behind it.
Oncology carried the quarter, growing 6% in constant currency to $7.3 billion: Imfinzi (lung cancer) surged 27% to $1.8 billion; Enhertu (breast cancer) climbed 31% to $888 million; Tagrisso held as the top seller, up 6% to $1.9 billion. Growth offset the patent-cliff declines in Farxiga and Brilinta.
The pipeline delivered hits and misses. Sonesitatug vedotin, the first pivotal readout from AstraZeneca's wholly-owned antibody-drug conjugate portfolio, improved gastric cancer survival but missed on progression-free survival. Ultomiris disappointed in a rare blood disorder. Against those, CEO Pascal Soriot pointed to positive data from six Phase III programs and insisted the $80 billion 2030 revenue target is risk-adjusted, assumes failures like Wainua, and needs no M&A.
AstraZeneca reiterated FY2026 guidance of mid-to-high single-digit revenue growth and low-double-digit core EPS growth. More than twenty readouts land over the next 18 months, but two matter most: Datroway in lung cancer and camizestrant in breast cancer, the latter given low odds after a rival Roche drug failed in a similar population. Those results will tell us more about the $80 billion target.
=== 13. AIRBUS (EADSY) — The Ramp Finally Shows ===
Airbus's H1 revenue rose 12% Y/Y to €33.2 billion ($37.8 billion), with Q2 up 28% to €20.5 billion (€0.25 billion beat) and Q2 adjusted EBIT jumping 54% to €2.43 billion (€0.24 billion beat). Airbus delivered 351 commercial aircraft in H1, up from 306, with the acceleration concentrated in Q2 after that dismal 114-plane Q1. Some analysts had feared a target cut like 2022, 2024, and 2025. But the Q2 cadence made the ~870 full-year goal look attainable instead.
The delivery pickup carried the quarter, with two things still to watch:
Commercial aircraft adjusted EBIT rose to €2.0 billion on volume, though weaker dollar hedges capped it. Defense and Space kept overdelivering, nearly doubling adjusted EBIT to €487 million on order intake up to €9.3 billion.
Free cash flow was negative €1.2 billion on planned inventory build, and the Pratt & Whitney engine shortage still gates the new rate targets (70–75 A320s a month by end of 2027).
Airbus reaffirmed FY26 guidance of ~870 deliveries, ~€7.5 billion adjusted EBIT, and ~€4.5 billion free cash flow, and set a new bar last week of €12–13 billion adjusted EBIT by 2029. Roughly 519 aircraft must ship in H2 to hit 870, so watch whether the monthly rate holds through year-end or the back-half concentration strains suppliers again.
=== 14. QUALCOMM (QCOM) — Diversification On Trial ===
Qualcomm's Q3 FY26 revenue (June quarter) fell 4% Y/Y to $9.9 billion ($280 million beat) and adjusted EPS was $2.21 ($0.01 miss). Shares sold off due to an accelerating Apple step-down and a Q4 EPS guide well under consensus.
CFO Akash Palkhiwala reiterated that China OEM handset revenue bottomed in Q3 and will return to double-digit sequential growth in Q4. Handset revenue still fell 20% to $5.1 billion on the memory crunch.
Qualcomm now expects its modem share on the new iPhone to be "materially lower" than the prior 20% estimate, with the step-down accelerating from Q4 due to supply constraints.
Automotive surged 61% to $1.6 billion, lifting the FY26 exit run-rate to ~$7 billion, and the two data center custom-silicon wins will start generating revenue in December, feeding a raised FY29 non-handset target of $40 billion.
Qualcomm guided Q4 revenue to $9.7–10.5 billion (midpoint above the ~$10.0 billion consensus) but EPS to $2.05–2.25 was under the ~$2.35 consensus. The gap was QCT margins compressed by memory costs. Double-digit price increases across end markets will start September 1 to claw it back. The diversification is real and ahead of plan, but it's now racing a modem business disappearing faster than expected. Watch whether December data center revenue and the Q4 China rebound land on schedule.
=== 15. BOEING (BA) — Cash Turns Positive ===
Boeing's Q2 revenue rose 8% Y/Y to $24.6 billion ($330 million beat) while the core loss of $0.76 per share missed by $0.45, dragged by a fresh charge on the fixed-price Air Force One contract. But free cash flow turned positive at $631 million, against negative $200 million a year ago. Backlog hit a record $715 billion across more than 6,200 commercial jets.
Boeing delivered 171 aircraft, up 14% and the highest quarterly total since 2018, narrowing the commercial division's operating loss. It has begun moving 737 output from 42 to 47 per month and activated the new Everett North Line in July, with a year-end target of 52. Both the 737 MAX 7 and MAX 10 completed certification flight testing, and the 777X cleared FAA approval to begin its own. They are all still tracking to 2027 first deliveries.
Two things are holding the recovery back:
The $280 million Air Force One charge on the VC-25B program, now roughly four years late with over $1 billion in overruns Boeing eats under a fixed-price contract. First delivery is still expected in 2028.
The cash flow beat leaned on roughly $1.5 billion of customer advances. A $700 million DOJ payment hits Q3, which management expects to keep free cash flow to just the low hundreds of millions for that quarter.
Boeing gave no revenue or EPS guidance, as usual, but reaffirmed FY26 free cash flow of $1–3 billion, which would be its first positive annual figure since 2023. It also cut debt by $1.3 billion in the quarter and booked 173 orders at Farnborough.
The FAA proposed inspections of hundreds of 737 MAX jets over improperly installed passenger seats. The China order tied to a Trump-Xi summit didn't materialize this quarter. Watch whether Boeing actually hits 47 per month on the 737, because the $1–3 billion cash target depends on the second-half delivery surge.
=== 16. STARBUCKS (SBUX) — Measurable Momentum ===
Starbucks's Q3 revenue (June quarter) fell 1% Y/Y to $9.3 billion ($200 million beat) and adjusted EPS jumped 70% Y/Y to $0.85 ($0.20 beat). The revenue decline is entirely explained by the China deconsolidation.
The more critical indicator was that global comparable sales grew 8%, blowing past the ~6% consensus, with US comps also up 8% on 4% transaction growth. This is the fourth straight positive comp after seven negative quarters, and it accelerated from last quarter's 6%.
Store "uplifts" surpassed 1,000 across North America, hitting the full-year goal early, with management now targeting at least 1,500 by year-end. US 90-day active Rewards members reached 35.8 million, and food attach hit a Q3 record.
Non-GAAP operating margin expanded 430 basis points to 14.4%, but it comes with a caveat:
North America margin rose only to 13.6% from 13.3%, and the consolidated expansion leaned on tariff refunds covering three quarters of duties plus a favorable tax comparison. Management said the year-to-date view is the more normalized read.
China is now a 40% licensed JV with Boyu Capital, deconsolidated this quarter. It contributed just $53 million of revenue at a margin above 100%, which flatters international metrics and reflects the capital-light licensing structure.
Starbucks raised FY26 guidance again with global comps nearing 6% and consolidated margin above 11%. Q4 US comps are expected at 6.5% or better. Debt fell to 2.9x leverage after repaying ~$1.8 billion with China proceeds. Margin remains the open question now that tariff refunds were "largely" collected. Watch whether North America margin can keep expanding in Q4 on its own, or whether this quarter's 430 basis points was partly a one-time catch-up.
=== 17. FORTINET (FTNT) — The Surge Extends ===
Fortinet's Q2 revenue rose 26% Y/Y to $2.05 billion ($160 million beat), and non-GAAP EPS surged 41% Y/Y to $0.90 ($0.15 beat). Billings grew 33% to $2.37 billion, product revenue surged 52% to $773 million, and non-GAAP operating margin hit a Q2 record of 38%. Free cash flow more than tripled to $966 million. Every headline number accelerated from an already-strong Q1, without pull-forward or channel stuffing.
The platform bet is paying off:
Fortinet's renamed "SASE Firewall," combining secure networking and Unified SASE, grew 34% to over $2 billion, winning against every top SASE competitor.
FortiSASE adoption reached 90% of large enterprise customers, a striking jump from 18% a quarter ago.
But the mix was lopsided. Product grew 52% while service revenue grew just 14% to $1.27 billion, so the beat was front-loaded hardware rather than the recurring stream. Management also baked a high-single-digit pricing benefit into second-half billings.
Fortinet raised FY26 guidance across every line. Revenue to $8.02–8.18 billion (vs. ~$7.81 billion consensus), billings to $9.35–9.55 billion, and non-GAAP EPS to $3.41–3.47 (vs. ~$3.16 consensus). It was a second straight broad raise. But service revenue will tell us more about how sustainable this growth is in the second half.
=== 18. UPS (UPS) — Transition Quarter / The Reset Lands ===
UPS's Q2 revenue rose 8% Y/Y to $22.8 billion ($960 million beat) and adjusted EPS grew 14% Y/Y to $1.76 ($0.10 beat). After years of declines, UPS finally posted top-line and adjusted operating profit growth in the same quarter. But GAAP profit fell from $1.51 a year ago to $0.71 on an $891 million workforce-cut charge, compressing GAAP operating margin to 4.1%, down 450 basis points.
CEO Carol Tomé's 18-month Amazon glide-down is essentially complete, with Amazon now 9% of revenue, down from a pandemic peak above 13%. UPS removed about 2 million daily pieces of lower-quality volume and $4.5 billion in expenses, pivoting toward premium segments:
Healthcare cleared $3 billion in revenue for a second straight quarter, lifted by refrigerated GLP-1 shipments.
Automation now handles 68.5% of US volume at roughly 28% lower cost per piece than non-automated buildings.
US Domestic operating profit rose more than 20%, and the China-to-US trade lane returned to growth in May.
UPS raised FY26 guidance across the board: revenue to ~$91.2 billion (vs. ~$90.4 billion consensus), and adjusted EPS to ~$7.22 (vs. ~$7.13 consensus). That reverses the flat guidance from Q1. Management targets ~8.8% US Domestic operating margin in the second half. With the Amazon volume gone and the cuts booked, the back half is where operating leverage should show up on premium volume.
=== 19. CADENCE (CDNS) — AI Demand Compounds ===
Cadence's Q2 revenue rose 24% Y/Y to $1.6 billion (in-line) and non-GAAP EPS was $2.11 ($0.05 beat). Backlog rose to a record $8.1 billion (up from $8.0 billion in Q1) with $4.2 billion set to convert within twelve months.
CEO Anirudh Devgan said that autonomous agents call Cadence's underlying engines more often, so adoption lands as higher consumption of tools customers already license. IP revenue grew 43%, which Devgan said was mostly organic rather than driven by the acquired Hexagon design business. CFO John Wall described hardware as supply-constrained heading into another record year. The guidance for second-half adjusted margins came in at 43.75%–44.75% (below the 45.5% in Q2), which Wall tied to deliberate integration and growth investment.
Cadence raised FY26 revenue to $6.26–6.34 billion (vs. ~$6.21 billion consensus), lifting full-year revenue by $125 million, implying a 19% growth in what Devgan called the largest single-quarter raise the company has made. But management still hasn't modeled any "sudden step function" from agentic AI. AgentStack is driving usage broadly, but Cadence still can't isolate the agentic AI contribution as its own number.
=== 20. ROBINHOOD (HOOD) — Firing On All Cylinders ===
Robinhood's Q2 revenue rose 32% Y/Y to $1.31 billion ($30 million beat) and GAAP EPS was $0.62 ($0.19 beat), though $0.14 came from a one-time Robinhood Ventures Fund I deconsolidation gain. Excluding that, EPS was $0.48, still ahead of the ~$0.43 consensus. The stock fell anyway, with HOOD down more than 20% in 2026 despite a business CFO Shiv Verma called "firing on all cylinders."
Transaction-based revenue diversified beyond crypto, which was the whole worry heading in. Transaction revenue jumped 44% to $776 million, with options up 29% to $342 million, equities up 95% to $129 million, and event contracts up more than 10x to $156 million. That more than covered crypto revenue falling 38% to $100 million as digital assets slumped. Net deposits hit a record $22 billion, Gold subscribers reached 4.8 million, and ARPU recovered from $157 in Q1 to $187.
The new bets are scaling fast:
Trump Accounts already drew nearly $1.5 billion in contributions from 7 million children, converting the federal win into real deposits.
Prediction markets moved onto Rothera, the Susquehanna joint venture now a top-3 US designated contract market within a month, addressing the worry about whether the business could survive the end of football season.
Agentic trading and Robinhood Chain launched, with 13 business lines now above $100 million in annualized revenue.
Robinhood lowered and tightened FY26 adjusted opex and SBC guidance to $2.675–2.775 billion, even after absorbing costs for Rothera and the WonderFi acquisition. It was a notable reversal from Q1, when the Trump Accounts buildout drove opex guidance up $100 million. Despite the crypto worry, the platform grew 33% with crypto revenue down almost 40%, proving the business no longer lives or dies on digital assets. The next question is why the stock keeps falling on beats. With ARPU recovering and expenses coming down, the multiple reset has to be about crypto sentiment more than Robinhood's own execution.
=== 21. MONDELEZ (MDLZ) — North America Turns ===
Mondelez's Q2 revenue rose 4% Y/Y to $9.4 billion ($150 million beat) and adjusted EPS fell 3% Y/Y to $0.73 ($0.05 beat) due to operating declines and higher interest expense.
Organic sales grew 2.2%, well above the ~0.9% consensus. North America organic sales grew 3.4%, a sharp reversal from Q1's 0.5% crawl, with CEO Dirk Van de Put claiming share gains in every category.
Emerging markets still lead, and the margin story flipped from Q1's cocoa hangover:
Asia, Middle East & Africa grew 7.1% and Latin America 8.4%, driven by distribution expansion, with 100,000 stores added in India and Brazil now at 1 million.
Adjusted gross margin rose 20 basis points to 34.0%, beating the ~32.8% consensus, after Q1's 270-basis-point compression. COO Luca Zaramella called cocoa "a very different place" from the crisis, citing a 0.5 million-ton surplus.
Europe is the new soft spot, with organic sales down 3.5% as Mondelez held trade stock in check through a heat wave.
Mondelez raised FY26 organic revenue guidance to at least 2% (vs. ~1.9% consensus) while holding adjusted EPS growth at flat to 5%, reinvesting any upside to protect 2027. The bottom-line hold despite a raised top line is the tell that management still sees enough risk to reinvest.
=== 22. HILTON (HLT) — Mid-Scale Rebounds ===
Hilton's Q2 revenue rose 7% Y/Y to $3.34 billion ($20 million beat) and adjusted EPS of $2.29 ($0.02 beat), with adjusted EBITDA of $1.05 billion clearing the high end of guidance. System-wide RevPAR grew 3.9% on a 5% jump in the US. Q3 adjusted EPS fell short at $2.28–$2.34 against a $2.43 consensus.
CEO Chris Nassetta pointed to mid-scale and upper mid-scale in the US (limited-service hotels at moderate prices) as the biggest flip, from negative last year to strong growth, and tied it to an unexpected driver: AI data center buildout. The contractors and engineers doing that work stay in mid-range hotels, not luxury.
The drags are concentrated and mostly known:
Middle East and Africa RevPAR fell about 30% on the Iran conflict, though better than feared, now guided to a high-single to low-double-digit full-year decline.
China RevPAR dropped 2.2% on government restrictions curbing group travel.
CFO Kevin Jacobs flagged $17 million of timing items plus ~$20 million of Middle East impact that kept Q2 outperformance from fully flowing through.
Hilton raised FY26 RevPAR guidance to 3%–3.5% (from 2%–3%) and adjusted EPS to $8.89–$9.01 (still just under the $9.01 consensus), holding net unit growth at 6%–7%. Q3 RevPAR is expected to grow 4% (boosted by the World Cup) before Q4 softens on calendar shifts and midterm elections. If data center spending is really driving mid-scale growth, that demand shouldn't fade until the buildout does.
=== 23. FERRARI (RACE) — Scarcity Pays ===
Ferrari's Q2 revenue rose 8% Y/Y to €1.94 billion, topping the ~€1.88 billion estimate, and adjusted EPS was €2.62 (€0.12 beat). EBITDA hit €755 million at a 39% margin, with operating margin at 31% and net profit up about 9% to €463 million.
The formula is all about scarcity. Ferrari is deliberately managing deliveries down through a model changeover, yet earnings rose because the mix skewed richer:
The €3.6 million F80, a hybrid supercar limited to 799 units, is now contributing, with Citi estimating 60–70 delivered in the quarter.
Personalization exceeded 20% of revenue from cars and spare parts, which CEO Benedetto Vigna named as the main driver of the raise. The order book is full through 2027.
Ferrari raised FY26 guidance to revenue of ~€7.6 billion and adjusted EBITDA of at least €2.97 billion, with adjusted EPS lifted to €9.68. Ferrari rarely raises guidance in Q2, so doing it now signals confidence.
The open question is the Luce, Ferrari's first all-electric car, a €550,000 four-door designed with Jony Ive's LoveFrom that drew a rocky reception in May. It reportedly hit its ~500-unit 2026 target, but growth could hit a roadblock once the F80 tops out, since the next three years of volume rest largely on an EV the market met with skepticism. Watch whether the Luce holds its pricing power in Q3, because it will show whether the scarcity formula still works for the polarizing EV.
=== 24. FORD (F) — Trucks Cover The Damage ===
Ford's Q2 adjusted EPS was $0.66 ($0.31 beat), but the headline carried a $1.3 billion one-time IEEPA tariff benefit. If you exclude the one-time charges, adjusted EPS was $0.37 ($0.02 beat). Total-company revenue was down 4% Y/Y to $48.3 billion. Ford showed a $1.3 billion net loss on $4.2 billion of pretax charges, mostly the disclosed $3.6 billion EV joint-venture wind-down.
US sales fell 10%, but Ford delivered high-margin Bronco and Explorer SUVs, especially off-road trims, to offset fewer F-Series pickups. Ford Blue revenue rose 1% despite an 8% wholesale decline, lifting EBIT margin 180 basis points, and Ford Pro stayed the profit engine.
There were several drags:
Model e is still bleeding, with revenue down 56% after the F-150 Lightning discontinuation and EBIT margin at negative 90%. Full-year EV loss guided to ~$4 billion.
The Novelis aluminum fire drives most of Ford's $1 billion-plus tariff bill, per CFO Sherry House. The mill restarted in Q2, with ~$2.5 billion of lost F-Series production expected to recover.
USMCA is being renegotiated after the US declined to renew it, a live second-half risk given Ford's Mexican and Canadian footprint.
Ford raised FY26 adjusted EBIT guidance to $10–11 billion (from $8.5–10.5 billion), a $1 billion midpoint lift that tops GM's $500 million raise the week before. Watch whether the truck-and-SUV mix keeps absorbing the commodity hit in the second half, because the Novelis recovery and USMCA outcome both land then, and the mix premium is the only thing holding the line while EVs lose money.
=== 25. PAYPAL (PYPL) — The $60 Question ===
PayPal's Q2 revenue rose 5% Y/Y to $8.7 billion ($230 million beat) and adjusted EPS fell 1% Y/Y to $1.38 ($0.10 beat). TPV grew 9% to $486 billion.
Earlier in July, Stripe and private equity firm Advent made a joint bid of roughly $60 a share, valuing PayPal above $53 billion, which the board reportedly saw as undervaluing the company. Shares had rallied about 35% over the prior month, the best on record. On the proposed deal, Lores said only that the board would "carefully consider" any path that creates superior value, while insisting the standalone plan is the focus.
PayPal lifted FY26 adjusted EPS to ~$5.38 (vs. $5.31 consensus) and raised full-year transaction margin dollars to ~$15.6 billion. CEO Enrique Lores tied the raise to execution and confidence in the trajectory.
The operating story underneath is steadier than the drama suggests:
Braintree volume accelerated to 13%, a ninth straight quarter of profitable growth, and Venmo is being pushed from peer-to-peer toward a money-management platform.
Branded checkout TPV growth held at 2%, the same as Q1.
Free cash flow was $1.8 billion, funding $1.5 billion of buybacks with the share count down 10% Y/Y.
Transaction margin dollars grew 1% to $3.9 billion, and the $1.5 billion savings program is pacing toward $400 million this year. Q3 EPS is expected to decline by a low-single-digit. The real question is whether Lores's raised guidance is a genuine turnaround signal or a negotiating stance, and the next move belongs to Stripe.
=== 26. COINBASE (COIN) — Winning a Smaller Market ===
Coinbase Q2 revenue fell 19% Y/Y to $1.22 billion ($60 million miss), while GAAP loss per share of -$1.36 missed by $0.94. Adjusted EBITDA declined to $208 million from $303 million in Q1. Shares fell about 14% post-earnings.
Transaction revenue dropped 22% to $599 million as weak crypto prices and muted retail activity extended the downturn. Subscription and services revenue also fell 12% to $555 million.
Coinbase still gained market share. Its portion of crypto trading volume reached a record 10.3%, up from 8.6% in Q1 and 7.1% a year ago. Derivatives volume nearly matched its all-time high, prediction-market activity more than doubled sequentially, Coinbase One reached record subscribers, and USDC held on the platform climbed to $20 billion.
Management says the "Everything Exchange" is working, with Bitcoin transactions now representing just 12% of revenue. But diversification remains too small to offset the broader crypto slowdown.
Q3 subscription and services revenue is expected to be $500–$580 million, well below the $635 million consensus. Coinbase reduced its 2026 adjusted expense outlook to $4.20–$4.45 billion, but the core problem remains unchanged: it is taking share in a shrinking market.
The Everything Exchange is becoming real. It just is not large enough yet to break Coinbase's dependence on the crypto cycle.
=== 27. LIVE NATION (LYV) — World Tour Expands ===
Live Nation's Q2 revenue rose 9% Y/Y to $7.7 billion ($160 million beat), while GAAP EPS was $1.05 ($0.40 beat). Adjusted operating income reached $817 million.
International markets drove the quarter: attendance grew 10% to a record 49 million fans; concert revenue rose 8% to $6.4 billion; Ticketmaster revenue grew 15% to $852 million; sponsorship revenue increased 12% to $383 million.
International markets contributed 70% of Ticketmaster's profit growth and 80% of Sponsorship's. Attendance at international stadiums, arenas, and festivals grew more than 20%, while US stadium attendance declined because more shows are scheduled for the second half of the year.
Ticketmaster also appears to have absorbed the pullback in secondary ticketing. Fee-bearing ticket volumes grew by high single digits, and management raised its full-year Ticketmaster profit outlook to mid-single-digit growth. Secondary ticketing now represents only about 5% of global transaction value.
Ticket sales through mid-July reached 143 million, event-related deferred revenue hit a record $6.4 billion, and cancellations fell to 1.1%. CEO Mike Rapino said there were "no consumer issues" across venues or geographies.
Live Nation now expects double-digit growth in attendance, revenue, and adjusted operating income for FY26, with margin expansion. The legal overhang has not disappeared, but the operating story has moved back to where Live Nation wants it: more artists touring, more fans attending, and international expansion doing most of the incremental work.
=== 28. CHIPOTLE (CMG) — Momentum Meets A Wobble ===
Chipotle's Q2 revenue rose 9% Y/Y to $3.3 billion ($30 million miss) and adjusted EPS was flat at $0.33 ($0.01 beat). Comparable sales grew 2.2%, accelerating sharply from Q1's 0.5%, with transactions up 1.0% and check up 1.2%. Shares jumped nearly 14%. The recovery isn't a one-quarter blip, and traffic is a contributor.
The Recipe for Growth playbook keeps working. HEEP (high-efficiency equipment package) is now in more than 1,000 restaurants, tracking to ~2,000 by year-end, and digital hit 38% of sales thanks to the mid-April Rewards relaunch.
Two things temper it:
Restaurant-level margin fell to 25.2% from 27.4% on beef, freight, and labor inflation at 3–3.5%, which CEO Scott Boatwright is deliberately not passing to a stretched consumer.
CFO Adam Rymer flagged that trends "softened in recent weeks," guiding Q3 comps to just ~1% against the year's toughest lap, partly on a cyclospora food-safety headline Chipotle says it isn't involved in.
Chipotle raised FY26 comp guidance to low-single-digit growth (from roughly flat), held openings at 350–370, and bought back $631 million in stock. The top-line recovery is now credible. The unresolved question is on the margin side. With inflation at 3.5% and management choosing not to price against it, watch whether margins stop falling in the second half, because it could offset the revenue recovery.
=== 29. YUM! BRANDS (YUM) — Pizza Hut Heads Out ===
Yum! Brands' Q2 revenue rose 12% Y/Y to $2.2 billion ($10 million miss), while adjusted EPS was $1.62 ($0.06 beat). Same-store sales grew 3%, led once again by Taco Bell.
Taco Bell comps rose 7%. KFC comps grew 2%, with unit count up 7%. Pizza Hut comps fell 1%. Digital sales mix excluding Pizza Hut reached 61%.
Yum agreed to sell Pizza Hut for $2.7 billion across two transactions, ending a review launched last year. Excluding Pizza Hut, system sales grew 7%, unit count rose 6%, and same-store sales increased 4%, leaving Yum with a faster-growing portfolio centered on Taco Bell and KFC.
That concentration creates a new risk. After the quarter ended, a cyclospora outbreak linked to supplier lettuce hit Taco Bell traffic. US same-store sales were down 2% through July 27, although management said trends improved sharply over the final ten days and online sentiment returned to normal.
Before the outbreak, Taco Bell remained exceptional: system sales grew 9%, restaurant margins expanded 170 basis points to 26.2%, and digital mix reached 47%.
Selling Pizza Hut removes Yum's weakest chain and improves its growth profile. But it also makes Taco Bell more important than ever. The next quarter will show whether the food-safety disruption was temporary or the first reminder of the risks that come with relying so heavily on one brand.
=== 30. HERSHEY (HSY) — Price Over Volume ===
Hershey's Q2 revenue rose 7% Y/Y to $2.8 billion ($160 million beat) and adjusted EPS soared 57% Y/Y to $1.90 ($0.47 beat). Gross margin expanded to 45.3% from 30.5% on pricing, lower cocoa costs, and productivity. Growth came almost entirely from 12 points of price, offset by an 8-point volume/mix decline. In short, Hershey is protecting profit by charging more, and it's costing volume.
North American salty snacks surged 23%, helped by the LesserEvil acquisition, though the segment's profitability was weaker than expected.
North American confectionery grew 4.2% on price, but with double-digit volume declines underneath. Organic growth was just 3.6%.
Hershey raised FY26 guidance, lifting sales growth to 4.5–5% and adjusted EPS to $8.36–$8.52. CFO Steve Voskuil expects confectionery volumes to recover as cocoa inflation eases and shoppers adjust to higher prices, with management optimistic on an early Halloween. The bull case is that cocoa costs are now falling while the price increases could hold. Watch North American confectionery volume in Q3, because pricing this far ahead of volume isn't durable growth. If shoppers don't come back as inflation eases, the 12-point price lever becomes a ceiling rather than an engine.
=== 31. ROBLOX (RBLX) — Monetization Trade-Off ===
Roblox's Q2 revenue rose 36% Y/Y to $1.47 billion. GAAP loss per share was $(0.26), a $0.07 beat.
Bookings grew 8% to $1.56 billion, missing by $40 million. DAUs grew 10% to 123 million, but showed a sequential decline. Hours engaged increased 5% to 29 billion. Monthly unique payers grew 15% to 27 million.
Shares fell about 14% after hours as the problem shifted from user acquisition to monetization.
New-user sign-ups improved during the quarter, while retention remained stable. However, users — particularly those under 13 in the US and Canada — moved away from last year's highly monetized viral games toward newer and evergreen experiences that generate less spending per hour. Roblox compounded the pressure by changing its discovery algorithm to prioritize 28-day retention over near-term monetization.
Management argues that better retention should eventually offset the immediate reduction in spending, but declined to say when that crossover will occur. Age-check penetration has reached 57%, and Roblox expects DAUs to return to sequential growth in Q3, helped by seasonality and its reinstatement in Russia.
The outlook was far worse. Roblox expects Q3 bookings to decline 14%–18% to $1.58–$1.65 billion, while revenue growth slows to 4%–10%. It also withdrew full-year guidance as monetization weakness persists and spending on AI infrastructure increases. Q3 free cash flow could fall to between $(60) million and $5 million.
Q1 revealed that safety changes were hurting the top of the funnel. Q2 showed the fix comes with another trade-off. Roblox may be improving retention by recommending less profitable games. The strategy could strengthen lifetime value, but until the promised crossover appears, bookings growth has become much harder to predict.
=== 32. REDDIT (RDDT) — Monetization Outruns Users ===
Reddit Q2 revenue rose 61% Y/Y to $805 million ($74 million beat), while GAAP EPS was $1.25 ($0.29 beat). Adjusted EBITDA more than doubled to $343 million, with margin reaching 43%.
Advertising revenue grew 64% to $762 million, while ARPU jumped 36% to a record $6.18. Reddit Max adoption increased more than 60% Q/Q and revenue from the product rose over 150%. Other revenue, including data licensing, grew 24% to $43 million.
The concern remains user growth. Global DAUs rose 18% to 130 million, but US users slipped sequentially to 53.2 million. Management said product improvements added users during the quarter, but volatile search referrals offset the gains. With Google AI Overviews and chatbots increasingly summarizing Reddit content, investors worry fewer search users will click through and become direct users.
Reddit argues app users are worth several times more than search traffic and is prioritizing feed quality, onboarding, and retention. But visibility remains limited, and Q2 will be the final quarter separating logged-in and logged-out users.
The company guided Q3 revenue to $860–$870 million, well above consensus, with adjusted EBITDA margin reaching roughly 45%. Reddit is monetizing its audience faster than almost any consumer platform. The unresolved question is whether it can keep growing that audience as AI changes search behaviors.
=== 33. RIVIAN (RIVN) — R2 Hits the Road ===
Rivian's Q2 revenue rose 27% Y/Y to $1.7 billion ($90 million beat), while GAAP EPS was -$0.63. Consolidated gross profit reached $179 million, or an 11% margin, versus a $206 million gross loss a year ago.
The mix continued to improve:
Automotive revenue rose 23% to $1.14 billion, with the segment's gross loss narrowing to $36 million from $335 million.
Software and services revenue grew 37% to $515 million, generating $215 million of gross profit.
Deliveries increased to 12,194 vehicles, above management's 9,000–11,000 outlook.
Rivian began delivering R2 vehicles to external customers and said reservation-to-order conversion is running meaningfully ahead of expectations. Production remains constrained by the slowest-moving suppliers, but Rivian plans to expand from one shift to two by the end of Q3.
Management raised FY26 delivery guidance to 65,000–70,000 vehicles from 62,000–67,000 and narrowed adjusted EBITDA losses to $1.8–$2.0 billion. CapEx guidance fell by $250 million to $1.7–$1.8 billion. Rivian still expects R2 to exit 2026 at a positive gross profit, though launch costs will pressure automotive margins in Q3 before the ramp helps in Q4.
Free cash flow was -$849 million, and Rivian raised another $1.3 billion through an equity offering. Volkswagen and Uber are expected to contribute another $1.25 billion later this year.
Q2 proved that R2 demand is not the immediate problem. The next test is whether Rivian can navigate supplier bottlenecks and scale production without allowing launch costs and cash burn to overwhelm the improving unit economics.
=== 34. SOFI (SOFI) — Records Meet A Shrug ===
SoFi's Q2 revenue rose 41% Y/Y to $1.2 billion ($80 million beat) and adjusted EPS was $0.12 ($0.01 beat). Adjusted EBITDA hit $358 million. The list of new records is long: originations, members, products, tangible book value. But shares fell nearly 10% anyway, the same pattern as Q1's 14% drop. The stock is down more than 40% so far this year, and the Muddy Waters short report is still hanging over it.
Loan originations hit a record $14.8 billion, up 69%, led by student loans surging 170% to $2.7 billion as the federal government resumed collections and cut income-based repayment plans. But the more important shift is engagement: cross-buy accelerated to 51% of new products opened by existing members, up from 43% in Q1 and 35% a year ago. SoFi added twice as many products as members for the first time. Fee-based revenue reached $472 million, recovering from the Q1 miss.
The company is still facing some drags:
Tech Platform revenue fell 23% to $85 million, still lapping the Chime exit. This is the segment SoFi has pitched as its future, so the drag matters beyond the dollar amount.
Guidance is again a raise-and-hold: FY26 adjusted revenue was lifted to $4.75–4.85 billion (vs. ~$4.70 billion consensus), but adjusted EBITDA (~$1.6 billion) and EPS (~$0.60) held flat. A higher revenue outlook that doesn't lift the bottom line reads as reinvestment or margin pressure.
Default rates fell across both personal and student portfolios versus last quarter and last year, which cuts against the Muddy Waters charge that SoFi was masking credit deterioration. The Chime drag persists, and the stock is struggling despite fundamentals that keep setting records. SoFi can't keep printing records into a falling stock forever, so watch whether an EBITDA guidance raise finally forces the multiple to reset.
=== 35. ALIGN TECHNOLOGY (ALGN) — Scanners Down ===
Align's Q2 revenue rose 4% Y/Y to a record $1.06 billion (in line) and non-GAAP EPS was $2.64 ($0.04 beat), despite a $0.23 FX drag. Clear Aligner revenue grew 8% to $871 million on record volume of 691,800 cases, up 7%, with APAC, EMEA, and Latin America offsetting North America (which was just flat).
The consequential news came from the boardroom:
Elliott is involved. Align is adding three independent directors, launched a strategic and operating model review, and raised its 2026 buyback to $400–500 million after activist engagement.
Systems & Services fell 11% to $185 million, which management framed as deliberate: pushing lower-priced iTero scanners and leasing models to build the installed base and recurring revenue. In short, they are trading upfront hardware for long-term treatment volume. Full-year guidance for the segment is now down 6–8%.
Align reiterated FY26 revenue growth of 3–4% but shifted the mix underneath. Clear Aligner volume is up ~6% while ASP is expected flat to slightly down. Align also booked a ~$37.5 million UK VAT liability it intends to appeal.
The company is shrinking scanner revenue now to build recurring streams later. Watch whether Clear Aligner volume holds mid-single digits or better through Q3, because that's the engine carrying the model while the scanner transition could drag reported revenue.
=== 36. TELADOC (TDOC) — The BetterHelp Pivot ===
Teladoc's Q2 revenue fell 4% Y/Y to $607 million ($9 million miss) while GAAP EPS was -$0.21 ($0.04 beat). Adjusted EBITDA was $66 million at an 11% margin. Shares collapsed about 29% the next day.
Integrated Care, the enterprise side, grew 1% to $394 million.
BetterHelp revenue fell 12% to $213 million as the segment pivots from cash-pay to insurance-covered therapy, trading near-term revenue for a more durable model.
The BetterHelp pivot is the main story. Roughly 70–80% of potential users now prefer insurance over cash-pay, and demand has outrun Teladoc's provider network, so it cut advertising to match capacity, accelerating the cash-pay decline. BetterHelp hit a national insurance footprint ahead of schedule and ran over 20,000 insurance sessions in a single week, an annualized run rate above $110 million.
Teladoc cut FY26 revenue guidance to $2.36–2.45 billion, about 5% below the midpoint and under the ~$2.51 billion consensus, entirely on the faster cash-pay runoff. But it reaffirmed adjusted EBITDA of $271–303 million on tighter costs and lower ad spend. That looks like discipline, but the ad cuts protecting EBITDA are the same thing starving the cash-pay funnel.
The bet is that insurance therapy is a bigger, stickier market than cash-pay. The market's problem is the arithmetic. A $110 million insurance run rate is replacing a much larger cash-pay base that's falling faster, and cutting ads to protect EBITDA is exactly what's starving the funnel. Watch whether insurance revenue scales fast enough to offset the cash-pay runoff.
================================================================
Author's Note (Bertrand): "The views and opinions expressed in this newsletter are solely my own and should not be considered financial advice or any other organization's views."
Disclosure: "I own ASML and TSM in App Economy Portfolio. I share my ratings (BUY, SELL, or HOLD) with App Economy Portfolio members."
Data partner: Fiscal.ai (several section charts sourced "Source: Fiscal.ai").