Earnings Review · 20 October 2026
The print
Revenue $15.85B. EPS $6.69 vs $5.50 expected.
How the market took it
On 2026-10-20 the shares closed at $201.56, +0.9% against the prior close of $199.83 (opening +0.1% from the prior close). Across the last 25 reports the shares have moved an average of +1.6% over the five sessions after the print, so the +0.9% on the day sits behind that average.
What changed versus going in
Earnings came in at $6.69 a share against $5.50 expected, a beat of 22% (+$1.19 a share). Revenue of $15.85B compares with $16.20B expected, 2.2% below consensus.
Did the flow confirm the move?
Money has been flowing IN underneath a flat-to-lower price: quiet accumulation, the kind of positioning that tends to show up before a name moves, not after. (21-day Chaikin Money Flow +0.07, five-day price change -0.3%, as of 2026-10-15, desk flow model).
Give the business its due
The business itself is genuinely strong: revenue growing about 1111%, net margins near 22%, a narrow competitive moat, backed by a 9% return on equity.
Levels that matter
At $201.56 the shares sit 22% below the 52-week high of $259.64 and 16% above the low of $174.24 (32% of the way up the range). The 50-day average is $208.42, above the price. The 200-day average is $208.09, above the price.
The valuation lens
Our fair-value work puts the shares about 30% below what the business is worth: value on offer. Fair value lands near $290 against a $201.56 share price, a margin of safety of about 30%. The trailing multiple sits around 13 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.
