Earnings Review · 27 October 2026
The print
Revenue $4.15B. EPS $4.58 vs $4.42 expected.
What changed versus going in
Earnings came in at $4.58 a share against $4.42 expected, a beat of 4% (+$0.16 a share). Revenue of $4.15B compares with $3.60B expected, 15.2% above consensus.
Did the flow confirm the move?
Underlying money flow reads as accumulation (21-day Chaikin Money Flow +0.17, five-day price change +4.8%, as of 2026-10-23, desk flow model).
Give the business its due
The business itself is genuinely strong: revenue growing about 10%, net margins near 31%, a moderate competitive moat, backed by a 14% return on equity.
Levels that matter
At $450.31 the shares sit 14% below the 52-week high of $522.47 and 25% above the low of $361.03 (55% of the way up the range). The 50-day average is $418.12, below the price. The 200-day average is $446.54, below the price.
The valuation lens
The shares trade close to our fair-value estimate (-3% margin of safety): fairly priced, little cushion for a miss. Fair value lands near $411 against a $424.81 share price, a margin of safety of about -3%. The trailing multiple sits around 26 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.
