Earnings Review · 23 October 2026
The print
Revenue $8.97B. EPS $0.64 vs $0.61 expected.
How the market took it
On 2026-10-23 the shares closed at $53.06, +7.1% against the prior close of $49.55 (opening +0.8% from the prior close). Option volatility implied a normal one-day swing of about ±1.0%, so a +7.1% close was larger than the market implied. Across the last 25 reports the shares have moved an average of +0.2% over the five sessions after the print, so the +7.1% on the day sits ahead of that average.
What changed versus going in
Earnings came in at $0.64 a share against $0.61 expected, a beat of 5% (+$0.03 a share). Revenue of $8.97B compares with $9.30B expected, 3.5% below consensus.
Did the flow confirm the move?
Underlying money flow is neutral (21-day Chaikin Money Flow +0.05, five-day price change +2.4%, as of 2026-10-22, desk flow model): no strong accumulation or distribution signature.
Give the business its due
The business itself is genuinely strong: revenue growing about 5%, net margins near 9%, a narrow competitive moat, backed by a 13% return on equity.
Levels that matter
At $53.06 the shares sit 12% below the 52-week high of $60.46 and 68% above the low of $31.64 (74% of the way up the range). The 50-day average is $52.66, below the price. The 200-day average is $51.00, below the price.
The valuation lens
The shares trade about 18% above our fair-value estimate: priced for things to go right. Fair value lands near $45 against a $53.06 share price, a margin of safety of about -18%. The trailing multiple sits around 23 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Screens compliant (both standards agree). A name values-conscious investors can weigh on the merits.
The verdict for a values-conscious investor
It clears the screen; size it to your own risk and conviction. One quarter, strong or soft, does not decide whether a holding is suitable.
This is analysis, not financial advice. Always manage your risk.
