Information Technology

Arista's first $3 billion quarter: revenue up 37.7% to $3,035.7M, but gross margin fell to 62.9% on large-customer discounting — operating cost leverage still pushed operating margin up to 45.4%.

Applied Materials posted record revenue of $9.12bn in its fiscal third quarter, up 25% with operating income up 38% — and for the first time in this cycle the growth came entirely from outside China, whose revenue fell 2%.

Analog Devices' fiscal Q3 2026 revenue rose 40% to a record $4.02 billion as AI-datacenter demand doubled Communications and a broad industrial recovery lifted Industrial 53%, with fab utilization pushing gross margin up 520 basis points.

Amphenol grew second-quarter 2026 sales 55% to $8.76 billion — 30% organically on AI datacenter demand, the rest from the CommScope acquisition — and lifted operating margin 4.4 points to 29.5% despite the acquired business diluting it.

AMD grew Q1 FY2026 revenue 38% to $10.25bn on a 57% Data Center surge, but revenue was flat sequentially, spending outgrew sales, and a 160-million-share warrant issued to Meta sits outside reported EPS.

Adobe posted record fiscal Q2 2026 revenue of $6.62 billion, up 13%, but a $70 million goodwill impairment, a $30 million legal charge and a higher tax rate left net income flat, and organic ARR growth ex-Semrush slipped to about 10.5%.

Adobe grew fiscal Q1 2026 revenue 12% to $6.40 billion, but net income rose only 4% as the effective tax rate jumped from 17% to 22%, leaving an 11% EPS gain largely funded by a 6% smaller share count.

Accenture posted record second-quarter bookings of $22.1 billion and 8% revenue growth, but a 4.4-point currency tailwind did most of the work: local-currency revenue grew 4% and bookings just 1%, with managed-services bookings down 1%.

Accenture opened fiscal 2026 with revenue up 6% to $18.74 billion and new bookings up 12% to $20.9 billion, but a $308 million severance charge cut reported operating margin to 15.3% and a 290-basis-point jump in the tax rate left GAAP EPS 1% below last year.

With almost no OpenAI accounting effect, Microsoft posted $4.27 diluted EPS on both a reported and adjusted basis as revenue rose 18% to $82.9bn, while gross margin fell 1.1 points and capital spending reached 37% of revenue.

Microsoft reported 60% net income growth in the December 2025 quarter, but it came from a $10bn non-cash dilution gain on the OpenAI recapitalisation; adjusted EPS grew 24% while capital spending nearly doubled to $29.9bn.

Microsoft opened fiscal 2026 with revenue up 18% to $77.7bn and operating income up 24%, but a $4.1bn non-cash loss on its OpenAI stake held reported EPS growth to 13% against 23% on an adjusted basis.