Earnings Review · 16 October 2026
The print
Revenue $7.07B. EPS $1.69 vs $1.66 expected.
What changed versus going in
Earnings came in at $1.69 a share against $1.66 expected, a beat of 2% (+$0.03 a share). Revenue of $7.07B compares with $7.20B expected, 1.8% below consensus.
Did the flow confirm the move?
Underlying money flow reads as distribution (21-day Chaikin Money Flow -0.06, five-day price change +1.3%, as of 2026-10-14, desk flow model).
Give the business its due
The business itself is genuinely strong: revenue growing about 21%, net margins near 39%, a moderate competitive moat, backed by a 20% return on equity.
Levels that matter
At $96.80 the shares sit 15% below the 52-week high of $114.53 and 15% above the low of $83.96 (42% of the way up the range).
The valuation lens
Our fair-value work puts the shares about 29% below what the business is worth: value on offer. Fair value lands near $121 against a $94.16 share price, a margin of safety of about 29%. The trailing multiple sits around 17 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.
