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.
Q3 earnings season continued this week and we are here to keep you well informed on all of the names we cover.
Let’s dive in.
Advanced Micro Devices (AMD)
AMD $AMD ( ▼ 1.75% ) posted a strong Q3 beat on revenue and EPS, powered by record client and AI demand. The stock is -5.5% so far this week, even with upbeat guidance and record free cash flow.
EPS: $1.20 vs $1.17 est
Revenue: $9.25B vs $8.76B est
Data Center: Revenue +22% YoY to $4.3B on EPYC and Instinct AI growth.
Client: Revenue +46% YoY to $2.8B from record Ryzen processor sales.
Gaming: Revenue +181% YoY to $1.3B driven by semi-custom and Radeon GPU strength.
Margins: Non-GAAP gross margin 54% (flat YoY), operating margin +3 pts to 14%.
Free Cash Flow: +208% YoY to $1.53B on strong profits and expense discipline.
Guidance: Q4 revenue $9.3B-$9.9B, non-GAAP gross margin ~54.5%.
🔐 Edge Takeaway: AMD delivered a strong quarter, but the thesis still hinges on converting visibility into profitable AI scale. The bull case requires…upgrade to Edge+ to read the Full Edge Takeaway.
McDonald’s (MCD)
McDonald’s $MCD ( ▲ 0.42% ) delivered mixed Q3 results, missing EPS but narrowly topping revenue estimates as global comps improved. The stock is flat so far this week.
EPS: $3.22 vs $3.33 est.
Revenue: $7.08B vs $7.08B est.
Global comps: +3.6% YoY on strength in Germany, Australia and Japan.
U.S. sales: +2.4% YoY driven by check growth and menu value initiatives.
Systemwide sales: $36B (+8% YoY) with $9 B from loyalty members.
Margins: Operating income +5% YoY, expenses up just 1%.
Capital returns: Diluted share count down ~1% YoY, implying ongoing buybacks.
🔐 Edge Takeaway: McDonald’s is doubling down on value as low-income traffic weakens, protecting share while everyone else pulls back. And that’s exactly what it should be doing right now. Management is…upgrade to Edge+ to read the Full Edge Takeaway.
Uber Technologies (UBER)
Uber Technologies $UBER ( ▼ 0.14% ) delivered strong revenue growth and record cash flow, but GAAP EPS was distorted by one-time accounting gains. The stock is -4.6% this week.
EPS: $3.11 vs $0.69 est.
Revenue: $13.47B vs $13.28B est.
Non-cash boost: $4.9B deferred tax valuation release inflated GAAP EPS.
Equity gains: ~$1.5B unrealized investment gains lifted reported profits.
Core profitability: Adjusted EBITDA $2.26B, margin 4.5% of bookings.
Demand: Trips +22%, MAPCs +17%, gross bookings +21% YoY.
Guidance: Q4 bookings $52.25-$53.75B, Adj. EBITDA $2.41-$2.51B.
🔐 Edge Takeaway: Uber’s quarter was clean underneath the GAAP noise, but the market’s reaction tells you how high expectations already were. Growth is healthy, but what matters now…upgrade to Edge+ to read the Full Edge Takeaway.
Qualcomm (QCOM)
Qualcomm $QCOM ( ▼ 1.33% ) delivered a solid quarter with a double beat yet and strong guidance, yet the stock drifted lower following the report. The stock is up -3.9% this week.
EPS: $3.00 vs $2.87 estimate
Revenue: $11.27B vs $10.77B estimate
AI chips momentum: Launched Snapdragon 8 Elite Gen 5 and AI200/AI250 accelerator roadmap
Automotive milestone: Automotive revenue surpassed $1B this quarter
Strong cash returns: Returned $3.4B to shareholders this quarter via buybacks and dividends
One-time tax charge: GAAP loss due to $5.7B non-cash U.S. tax valuation allowance
Guidance upbeat: Q1 FY26 revenue guided to $11.8B-$12.6B and EPS to $3.30-$3.50
🔐 Edge Takeaway: Qualcomm’s quarter was better than the market realized in our opinion. Revenue…upgrade to Edge+ to read the Full Edge Takeaway.
Shopify (SHOP)
Shopify $SHOP ( ▼ 2.33% ) posted another strong quarter with solid revenue growth and expanding cash flow but mixed margin trends. The stock is -9.1% this week.
EPS: $0.34 vs $0.34 est.
Revenue: $2.84B vs $2.76B est.
Merchant strength: Merchant solutions revenue +38% YoY on higher payments volume and GMV gains
Subscriptions: Subscription solutions +15% YoY, MRR +10% to $193M
Margins: Gross margin dipped 2.8 pp as mix shifted toward merchant services
Cash flow: FCF hit $507M with an 18% margin, supporting ongoing investment capacity
Guidance: Q4 revenue growth ~28%, gross profit +~24%, opex 30-31% of sales, FCF margin slightly above Q3
🔐 Edge Takeaway: Shopify’s quarter reinforced its long-term growth engine but reminded investors how unforgiving the market can be at premium valuations. The 10% post-earnings drop is…upgrade to Edge+ to read the Full Edge Takeaway.
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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.
