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Good morning investors!

During the ever important earnings season, we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover on a regular basis.

Earnings season is in full swing and we just had one of the biggest weeks of the season — let’s dive in.

Walmart (WMT)

Walmart reported solid Q4 2025 earnings, beating revenue and EPS expectations with growth driven by strong U.S. sales and e-commerce performance.

The company posted net income of $5.4 billion, down 5% year-over-year, while revenue reached $180.55 billion, up 4% year-over-year and slightly above the $180.07 billion estimate. Operating income rose 8% to $7.9 billion, and operating cash flow increased by 2% to $36.4 billion. However, free cash flow decreased by 16% to $12.7 billion.

U.S. revenue grew by 5% to $123.5 billion, with comparable sales up 4.6% and e-commerce sales surging 16%. Operating expenses increased by 7% to $36.5 billion, while Walmart continued strategic investments in advertising, which saw a 29% revenue jump, and membership income, which grew by 17%.

The company also returned value to shareholders through $3.0 billion in share buybacks and announced a 13% increase in its dividend to $0.94 per share.

For Q1 2026, Walmart expects revenue growth of 3.0% to 4.0% and EPS between $0.57 and $0.58, slightly below the $0.65 reported this quarter. Full-year revenue growth is forecasted at 3.0% to 4.0%, with EPS guidance of $2.50 to $2.60, lower than the $2.77 expected by analysts.

WMT shares are -6.3% so far this week.

Alibaba (BABA)

Alibaba reported strong Q3 2025 earnings, surpassing analysts' expectations with solid revenue growth and a significant increase in net income.

The company posted revenue of $38.38 billion, up 5% year-over-year, beating estimates of $38.14 billion. Net income surged by 333% year-over-year to $6.4 billion, reflecting improved operational efficiency and favorable equity investment returns.

Key highlights include a robust 13% growth in Cloud Intelligence revenue to $4.4 billion, driven by the continued expansion of AI-related products. Taobao and Tmall's revenue increased by 5% to $18.6 billion, supported by improved customer engagement and effective monetization strategies. Commerce revenue grew 32% year-over-year, benefiting from strong international digital commerce performance.

However, free cash flow declined by 31% to $5.4 billion due to increased cloud infrastructure investments. Alibaba also repurchased $1.3 billion in shares and issued $5 billion in notes to optimize its capital structure.

Looking forward, Alibaba plans to continue executing its strategic priorities in e-commerce and cloud computing, emphasizing long-term growth through ongoing investments in technology and user experience enhancements.

BABA shares are +13.6% so far this week.

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MercadoLibre (MELI)

Mercado Libre reported strong quarterly earnings, surpassing analysts' expectations with significant growth in revenue and profitability driven by robust performance across its commerce and fintech segments.

The company posted net income of $639 million, a 67% increase year-over-year, with revenue of $6.06 billion, up 42% compared to the same quarter last year. Earnings per share (EPS) came in at $12.61, significantly exceeding the estimated $7.90 by 59.62%.

Key highlights from the report include a 44% YoY increase in commerce revenue to $3.9 billion and a 29% YoY growth in fintech revenue to $2.2 billion. Total payment volume grew by 33% YoY, reflecting the continued expansion of Mercado Pago.

Operating income surged 145% YoY to $820 million, while operating cash flow increased by 54% to $7.9 billion. However, operating expenses rose by 13% YoY to $1.9 billion. The company also maintained a healthy operating margin of 13.5%.

For FY 2025, Mercado Libre expects continued growth, driven by enhanced financial services and the strategic importance of first-party data in advertising. The company remains optimistic about its future outlook, highlighting confidence in delivering sustainable growth.

MELI shares are +13.3% so far this week.

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Block (XYZ)

Block reported mixed quarterly results, missing revenue and earnings expectations despite strong growth in key segments.

The company posted net income of $2.0 billion, boosted by a one-time tax benefit, with revenue of $6.03 billion, up 5% YoY but below the $6.29 billion estimate. Earnings per share were $0.71, missing analysts' expectations of $0.88 by 19.32%.

Cash App continued to be a growth engine, generating $4.0 billion in revenue, up 3% YoY, while Square revenue rose 9% YoY to $2.0 billion. However, operating income was just $13 million, a sharp decline from $131 million in Q4'23, due to a 7% increase in operating expenses. Operating cash flow was $14 million, down significantly from $798 million in Q4'23, highlighting challenges in cash management. '

Notably, Block achieved a profit margin of 32.0%, supported by improved gross profit margins in both Cash App and Square segments.

For Q1 2025, Block expects gross profit of $2.32 billion (+11% YoY) and operating income of $430 million (19% margin). The company projects full-year gross profit of $10.22 billion (+15% YoY) and operating income of $2.1 billion with a 21% margin, indicating a strategic focus on profitability and operational efficiency.

XYZ shares are -11.5% so far this week.

VICI Properties (VICI)

VICI Properties delivered solid quarterly earnings, narrowly beating revenue estimates while maintaining steady FFO, showcasing its stability in the real estate investment trust (REIT) sector.

The company reported Q4 revenue of $976.1 million, a 5% year-over-year increase, surpassing the estimate of $970.5 million. Net income was $615 million, down 18% YoY, primarily due to increased operating expenses, which totaled $145 million, a $15 million rise from Q4'23. Adjusted FFO came in at $601 million, up 5% YoY, with FFO per share at $0.57, matching analysts' expectations.

Key highlights include a 4% YoY growth in sales lease revenue to $525 million and a 6% increase in lease finance revenue to $421 million. VICI also maintained a strong operating margin of 64.2%, despite a 17% decline in operating income to $627 million. The company made significant strategic investments, including $700 million to The Venetian and $300 million to One Beverly Hills, while ending the quarter with $524.6 million in cash.

For 2025, VICI projects AFFO between $2.46 billion and $2.49 billion, with AFFO per share ranging from $2.32 to $2.35. The company also increased its dividend by 4% to $0.4325 per share, reflecting confidence in its ongoing cash flow stability and growth strategy.

VICI shares are +3.0% so far this week.

Celsius Holdings (CELH)

Celsius reported mixed quarterly earnings, beating revenue and EPS estimates but facing challenges in North American sales and rising expenses.

The company posted a net loss of $18.9 million, down 138% YoY, on revenue of $332.2 million, which declined 4% YoY but surpassed estimates by 1.84%.

While North American revenue fell 6%, international revenue surged 39%, demonstrating strong growth outside its core market. However, operating expenses increased by 73%, significantly impacting operating income, which dropped 131% YoY to a loss of $18.5 million.

Despite these challenges, Celsius maintained a healthy gross margin of 50.2% and delivered adjusted EBITDA of $62.9 million, down 4% YoY.

Looking ahead, Celsius is optimistic about sustained long-term growth, driven by strategic investments, including the $1.8 billion acquisition of Alani Nu, which is expected to strengthen its position as a leader in the global energy category.

CELH shares are +54.9% so far this week.

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Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.