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.

Nvidia (NVDA)

NVIDIA reported exceptional quarterly earnings, surpassing expectations with record revenue and profit growth driven by continued demand for its AI and data center products.

The company posted net income of $22.1 billion, up 80% year-over-year, with revenue reaching $39.33 billion, reflecting a 78% increase compared to the same quarter last year. Earnings per share were $0.89, beating estimates by 4.71%.

Data Center revenue soared by 93% year-over-year to $35.6 billion, driven by robust AI demand and partnerships with major cloud providers like AWS, Azure, Google Cloud, and Oracle. However, Gaming revenue declined by 11% year-over-year to $2.5 billion, highlighting challenges in consumer demand.

NVIDIA continued to prioritize shareholder returns, repurchasing $7.8 billion in shares and maintaining its quarterly dividend. Operating cash flow was strong at $16.6 billion, up 45% year-over-year, with free cash flow increasing 38% to $15.5 billion.

For Q1 FY 2026, NVIDIA expects revenue of $43.0 billion, representing 65% year-over-year growth, with a gross margin of 70.6% and operating expenses projected at $5.2 billion. This outlook reflects continued momentum in AI and data center demand, although the gaming segment may face ongoing headwinds.

NVDA shares are -13.1% so far this week.

Home Depot (HD)

Home Depot reported strong fourth-quarter earnings, beating revenue and EPS estimates due to increased customer transactions and positive comparable sales.

The company posted net income of $3.0 billion, reflecting a 7% year-over-year growth, and achieved revenue of $39.70 billion, up 14% from the prior year, exceeding the estimated $39.25 billion.

Key highlights from the report include an 8% increase in customer transactions to 400.4 million, a 9% rise in operating income to $4.5 billion, and an 11.3% operating margin. U.S. comparable sales grew by 1.3%, while global comparable sales rose by 0.8%.

The company also repurchased $649 million in shares and declared a dividend increase of 2.2% to $2.30 per share.

For 2025, Home Depot expects sales growth of 2.8% year-over-year, with comparable sales increasing by 1.0% and gross margin projected at 33.4%. However, EPS is anticipated to decline by 2% year-over-year.

HD shares are -4.1% so far this week.

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Salesforce (CRM)

Salesforce delivered mixed Q4 2025 results, with a revenue miss but an earnings beat, reflecting robust profitability despite slightly softer sales.

The company reported net income of $1.7 billion, up 18% YoY, on revenue of $9.99 billion, which increased 8% YoY but fell short of analyst expectations of $10.04 billion. Earnings per share came in at $2.78, exceeding the forecasted $2.61 by 6.51%.

Subscription revenue led the way at $9.5 billion (+8% YoY), while services revenue remained flat at $542 million (+1% YoY). Operating income improved to $1.8 billion (+12% YoY), and operating cash flow surged 28% YoY to $13.1 billion, demonstrating strong cash generation and operational efficiency. Salesforce also returned $7.8 billion to shareholders through share buybacks and reported impressive growth in its Cloud/AI ARR, up 120% YoY to $900 million.

Looking ahead, Salesforce's Q1 FY2026 guidance projects revenue between $9.71 billion and $9.76 billion (+6.5% YoY) and EPS in the range of $2.53 to $2.55. Full-year guidance anticipates revenue of $40.5 billion to $40.9 billion (+7.5% YoY) and EPS between $11.09 and $11.17, signaling steady, albeit moderated, growth expectations.

CRM shares are -5.6% so far this week.

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Lowe’s (LOW)

Lowe's reported better-than-expected quarterly earnings, driven by solid online sales growth and disciplined cost management, although comparable transactions declined slightly.

The company posted net income of $1.1 billion, up 10% YoY, with diluted EPS of $1.93 (beating estimates by 4.89%) and total revenue of $18.55 billion (flat YoY). U.S. comparable sales increased by 0.2%, supported by strong holiday performance and Pro customer demand, despite a 1.3% drop in comparable transactions.

Key highlights include a 9.5% YoY rise in online sales and a 9% YoY increase in operating income, while operating expenses were reduced by 2% YoY. The company generated robust operating cash flow of $9.6 billion (+18% YoY) and free cash flow of $7.9 billion (+28% YoY). Lowe’s also repurchased $1.4 billion in shares and maintained a healthy gross margin of 32.9%.

For FY 2025, Lowe's expects total revenue of $83.5 to $84.5 billion, comparable sales growth of 0% to +1%, and EPS of $12.15 to $12.40. The company anticipates operating margin between 12.3% to 12.4%, reflecting ongoing cost discipline amidst uncertain DIY discretionary spending.

LOW shares are +3.4% so far this week.

American Tower (AMT)

American Tower reported mixed quarterly results, beating revenue estimates but missing on funds from operations (FFO).

The company posted net income of $1.2 billion, up a staggering 9,152% YoY, while total revenue grew 2% YoY to $2.55 billion, slightly above analyst expectations. However, FFO came in at $2.32 per share, missing estimates by 1.69%.

Key highlights include steady U.S. revenue at $1.3 billion, while international revenue grew by 3% YoY to $944 million. Adjusted FFO rose 2% YoY to $1.1 billion, supported by a 5% increase in operating cash flow to $1.2 billion. The company also maintained a healthy gross margin of 74.9%. Despite challenges, operating income surged 76% YoY to $1.1 billion, showcasing strong cost management.

Looking ahead, American Tower provided cautious guidance for FY 2025, expecting property revenue between $9.92 billion and $10.07 billion (+1% YoY) and adjusted EBITDA of $6.86 billion to $6.93 billion (+1% YoY). The company also projected AFFO per share of $10.31 to $10.50, reflecting a 4% YoY increase, indicating moderate growth amid a challenging macroeconomic environment.

AMT shares are +7.0% so far this week.

Realty Income (O)

Realty Income reported mixed quarterly earnings with strong revenue growth but a miss on FFO estimates, reflecting both positive rental trends and rising costs.

The company posted net income of $199.6 million, down 9% year-over-year, while total revenue increased by 30% to $1.34 billion, beating analyst estimates by 4.69%. Despite the solid revenue growth, Funds from Operations (FFO) of $1.05 per share missed expectations by 1.87%, indicating pressure on profitability.

Key highlights include a 24% increase in rental revenue and a 26% rise in adjusted FFO to $921.9 million. The company maintained a high occupancy rate of 98.7% and raised its dividend to $3.168 per share, marking its 109th consecutive quarterly increase. However, operating expenses surged by 37% year-over-year, impacting margins, while operating income fell by 6%.

For 2025, Realty Income expects EPS between $1.52 and $1.58 and AFFO per share of $4.22 to $4.28, reflecting continued growth but cautious optimism amid cost pressures.

O shares are -0.6% so far this week.

Domino’s Pizza (DPZ)

Domino's reported mixed quarterly results, missing both revenue and EPS expectations despite showing positive year-over-year growth in key areas.

The company posted net income of $169.4 million, up 8% YoY, on revenue of $1.44 billion, which increased 3% YoY but fell short of estimates by 2.7%. U.S. same-store sales saw modest growth of 0.4%, while international sales rose by 5% YoY, contributing to a 9% increase in earnings per share.

Operating income rose 6% YoY to $273.7 million, supported by a 6% increase in operating cash flow to $624.9 million, although operating expenses edged up by 2%. Domino's continued to expand its footprint, adding 364 stores globally during the quarter. Additionally, the company repurchased $112 million in shares and raised its dividend by 15% to $1.74 per share.

For FY 2025, Domino's expects same-store sales growth of 1.0% to 3.0% and plans to open approximately 800 new stores. However, the modest guidance suggests continued challenges in driving significant U.S. same-store sales growth amid a competitive landscape.

DPZ shares are +4.7% 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.