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Good evening investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season kept rolling this week as five of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Monday 12/9: Oracle

• Tuesday 12/10: AutoZone

• Wednesday 12/11: Adobe

• Thursday 12/12: Broadcom and Costco

• Friday 12/13: --

Let’s dive in.

Broadcom (AVGO)

Broadcom delivered strong quarterly results with robust revenue growth and a solid beat on earnings per share, driven by infrastructure software momentum and AI-related semiconductor demand.

The company reported net income of $4.3 billion, up 23% YoY, on revenue of $14.05 billion, which grew 51% YoY but slightly missed expectations by 0.14%.

Semiconductor revenue reached $8.2 billion, reflecting a 12% YoY increase, while infrastructure software revenue surged by 196% YoY to $5.8 billion, benefiting from the VMware acquisition.

Adjusted EBITDA rose 50% YoY to $9.1 billion, with an operating margin of 32.9%. Broadcom generated $5.6 billion in operating cash flow (+16% YoY) and announced $5.2 billion in share buybacks and a dividend increase to $0.59 per share (+11%).

For Q1 FY2025, Broadcom anticipates revenue of approximately $14.6 billion, reflecting a 22% YoY increase, and an adjusted EBITDA margin of 66%, highlighting its confidence in sustained growth from AI and enterprise software integration.

Broadcom’s stock surged after CEO Hock Tan revealed the company is collaborating with three major cloud providers to develop custom AI chips. 

AVGO shares are +18.5% so far this week.

Oracle (ORCL)

Oracle's Q2 earnings missed slightly on both revenue and EPS estimates, while showcasing robust growth in key cloud and infrastructure segments.

The company reported net income of $3.2 billion, up 26% YoY, with total revenue reaching $14.06 billion, a 10% YoY increase but falling short of the $14.12 billion estimate.

Cloud services revenue grew 24% YoY to $5.9 billion, and infrastructure revenue surged 52% YoY to $2.4 billion, highlighting strong demand for Oracle’s cloud offerings. Operating income rose 17% YoY to $4.2 billion, while operating expenses increased 6% YoY to $9.8 billion.

Additionally, Oracle achieved a record Total Remaining Performance Obligation (RPO) of $97 billion, up 49% YoY, demonstrating strong forward-looking demand.

Management emphasized AI and MultiCloud strategies, noting partnerships such as Meta’s adoption of Oracle’s AI infrastructure as key growth drivers. Free cash flow declined 6% YoY to $9.5 billion, though operating cash flow grew 13% YoY to $20.3 billion.

Looking ahead, Oracle anticipates double-digit growth in cloud services for FY2025 and expects total cloud revenue to surpass $25 billion, supported by robust AI and MultiCloud adoption trends.

ORCL shares are -8.3% so far this week.

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Costco (COST)

Costco reported strong Q1 results, beating both revenue and EPS estimates, as increased sales across memberships and stores drove growth.

The company posted revenue of $62.15 billion, up 8% year-over-year, while net income rose 13% YoY to $1.8 billion, or $4.04 per diluted share, outperforming expectations.

Same-store sales increased 5.2% YoY, with e-commerce sales growing 13%, signaling robust consumer engagement. Membership revenue also grew 8% YoY to $1.2 billion, supported by 77.7 million paid members.

Operating income improved 11% YoY to $2.2 billion, though operating cash flow declined by 30% YoY to $3.3 billion due to higher operating expenses (+7% YoY).

Looking ahead, Costco reaffirmed its focus on international expansion, e-commerce investments, and competitive pricing to sustain comparable sales growth. The company also highlighted plans to add 14 new warehouses this year to further bolster revenue growth.

COST shares are -0.3% so far this week.

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Adobe (ADBE)

Adobe delivered a strong quarter, exceeding both revenue and earnings expectations, driven by robust demand across its digital offerings and solid ARR growth, but weaker than expected guidance sent the stock tumbling.

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