Earnings Review · 20 October 2026
The print
Revenue $13.35B. EPS $2.25 vs $2.02 expected.
What changed versus going in
Earnings came in at $2.25 a share against $2.02 expected, a beat of 11% (+$0.23 a share). Revenue of $13.35B compares with $12.90B expected, 3.5% above consensus.
Did the flow confirm the move?
Underlying money flow is neutral (21-day Chaikin Money Flow +0.03, five-day price change +1.8%, as of 2026-10-16, desk flow model): no strong accumulation or distribution signature.
Give the business its due
The business itself is genuinely strong: revenue growing about 21%, net margins near 18%, a moderate competitive moat, backed by a 48% return on equity.
Levels that matter
At $313.83 the shares sit 19% below the 52-week high of $388.84 and 17% above the low of $268.91 (37% of the way up the range). The 50-day average is $330.44, above the price. The 200-day average is $315.74, above the price.
The valuation lens
The shares trade close to our fair-value estimate (-5% margin of safety): fairly priced, little cushion for a miss. Fair value lands near $291 against a $307.02 share price, a margin of safety of about -5%. The trailing multiple sits around 36 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Business activity screen. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
There is no direct compliant equivalent in the same industry on our screen, the honest answer is to screen a step wider rather than reach for a false substitute.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. One quarter, strong or soft, does not decide whether a holding is suitable.
This is analysis, not financial advice. Always manage your risk.
