Earnings Review · 13 October 2026
The print
Revenue $25.31B. EPS $2.59 vs $2.52 expected.
How the market took it
On 2026-10-13 the shares closed at $248.61, -5.7% against the prior close of $263.73 (opening -3.5% from the prior close). Option volatility implied a normal one-day swing of about ±1.8%, so a -5.7% close was larger than the market implied. Across the last 24 reports the shares have moved an average of +0.8% over the five sessions after the print, so the -5.7% on the day sits behind that average.
What changed versus going in
Earnings came in at $2.59 a share against $2.52 expected, a beat of 3% (+$0.07 a share). Revenue of $25.31B compares with $25.40B expected, 0.4% below consensus.
Did the flow confirm the move?
Underlying money flow reads as distribution (21-day Chaikin Money Flow -0.09, five-day price change +2.1%, as of 2026-10-09, desk flow model).
Give the business its due
The business itself is genuinely strong: revenue growing about 7%, net margins near 21%, a strong competitive moat, backed by a 26% return on equity.
Levels that matter
At $248.61 the shares sit 12% below the 52-week high of $281.07 and 40% above the low of $177.32 (69% of the way up the range).
The valuation lens
The shares trade close to our fair-value estimate (+9% margin of safety): fairly priced, little cushion for a miss. Fair value lands near $275 against a $248.61 share price, a margin of safety of about 9%. The trailing multiple sits around 32 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.
