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Top 100 US-listed companies by market capitalization. AI-powered earnings call analysis for S&P 100 (SP100). Two AI hosts break down quarterly results, key metrics, and market implications in digestible podcast episodes.

  1. 9h ago

    T-Mobile US Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex. **JORDAN:** And I'm Jordan. Today we're digging into T-Mobile's third quarter 2026 results, and spoiler alert — the Un-carrier is still flexing. **ALEX:** Before we get into it, quick disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Solid. Now let's talk numbers, because T-Mobile dropped some pretty strong ones. **ALEX:** Right out of the gate — postpaid service revenue up 9% year-over-year, total service revenue up 6%, and core adjusted EBITDA up a whopping 11%. Adjusted free cash flow margin landed at 26%. That's just... a really healthy quarter. **JORDAN:** And they led the industry — again — in postpaid phone net adds AND 5G broadband net adds. Postpaid account additions came in at 274,000, and postpaid ARPA — that's average revenue per account — grew over 4% year-over-year. **ALEX:** What's notable is they raised full-year guidance across the board. Service revenue guidance moved up to about $76.8 billion, roughly 8% growth for the year. Core adjusted EBITDA guide bumped up to $37.35 to $37.45 billion. And adjusted free cash flow is now expected between $18.7 and $18.8 billion. **JORDAN:** They also raised postpaid ARPA growth guidance from 2.5-3% up to 3.5% for the year. That's driven by customers adopting premium rate plans — CFO Peter Osvaldik mentioned 60% of new accounts are choosing premium plans right out of the gate. **ALEX:** Let's talk strategy, because there's a lot of interesting stuff beyond the spreadsheet. First, leadership transition — Jessica Uhl is coming in as CFO-designate, replacing Peter Osvaldik in a planned succession. Chris Sambar is now Chief Enterprise Officer. **JORDAN:** And then there's T-Mix — this new plan structure they just launched. The pitch is basically: stop forcing customers into rigid bundles. Let people pick the benefits they actually want and swap them when life changes. Apparently 84% of surveyed customers wanted more control over their plans, so this is T-Mobile trying to solve a real pain point before competitors do. **ALEX:** The other big theme — and I thought this was the most forward-looking part of the call — is "Physical AI." They're building something called Kinetic Edge with AWS, which combines their 5G Advanced network with cloud compute to support robots, drones, and other connected machines that need low-latency connectivity plus edge inference. **JORDAN:** It's early days — CEO Srini Gopalan was pretty candid that they're not sure if the big infrastructure buildout happens in 2027, 2028, or later, but he's confident it happens by 2035. Right now, monetization isn't about selling connectivity or compute separately — it's bundled into full solutions, where T-Mobile essentially takes a cut from reducing the cost of the device itself. **ALEX:** They also completed what they're calling the world's first AI-RAN call in the real world, not a lab — testing AI-driven network optimization. Their Chief Technology Officer, John Saw, noted that spectral efficiency gains from AI were actually better than expected when they rolled it out live in New York. **JORDAN:** Now let's get into some of the juicier Q&A moments. Analysts pushed hard on fixed wireless access — FWA. There's been chatter about Verizon decelerating there, so analysts wanted to know if T-Mobile was seeing the same thing. **ALEX:** And the answer was basically "no deceleration here." Management said they're tracking ahead of pace toward their goal of 15 million FWA customers by 2030, with ARPU growing both sequentially and year-over-year. They also leaned into NPS data showing their broadband — including versus fiber — has category-leading c This episode includes AI-generated content.

  2. 9h ago

    ServiceNow Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: AI_LEADERS (https://betafinch.com/groups/AI_LEADERS) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, here with my co-host Jordan, and today we're diving into ServiceNow's third quarter 2026 results. Bill McDermott came out swinging on this call, calling it a "trifecta moment," so there's a lot to unpack. Before we get into it, a quick disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Alright, Alex, let's set the stage. ServiceNow beat guidance across basically every metric that matters. Subscription revenue grew 20.5% in constant currency — that's 50 basis points above the high end of their own guidance. cRPO came in at 21%, also beating guidance. Operating margin hit 32.5%, which was 150 basis points above expectations. This is a company firing on all cylinders. **ALEX:** And the deal activity is wild. 19 deals over $5 million in net new ACV — that's up 135% year-over-year. Total RPO sits at $30 billion, growing 23%. For a company this size, that kind of growth at scale is genuinely rare. **JORDAN:** But Alex, here's where it gets really interesting — the AI numbers. ServiceNow keeps raising their full-year AI ACV target. They started the year at $1 billion, bumped it to $1.5 billion at their Analyst Day in May, and now they're raising it again to $1.7 billion-plus. That's two raises in one year. **ALEX:** And the underlying metrics behind that are honestly kind of staggering. AI net new ACV grew 65% year-over-year. Million-dollar-plus AI deals grew 4.5 times. And get this — agentic AI consumption in production is up 13x year-over-year. Their "Control Tower" product specifically grew net new ACV over 6x. **JORDAN:** Let's talk about what the Control Tower actually is, because it's central to their whole strategy now. McDermott is positioning ServiceNow as the "Super Intelligence Control Tower" — essentially a governance and security layer that sits on top of all the AI agents a company deploys, whether those agents come from OpenAI, Google Gemini, Microsoft, wherever. It tracks what every AI agent is allowed to do, what data it can touch, and critically — it can act as a kill switch if an agent misbehaves. **ALEX:** That "AI Passport" concept they introduced is a cool wrinkle — basically an ID card for every AI agent in the enterprise, so companies know who owns it and what it's authorized to do. Given how many stories we've heard about rogue AI agents causing headaches, this governance angle seems to really resonate with enterprise customers. **JORDAN:** They backed that up with real partnership news too. They expanded their relationship with OpenAI — including a new ServiceNow plug-in for ChatGPT — and deepened ties with Google Gemini Enterprise. The pitch is basically: let the AI model do the reasoning, but ServiceNow governs and executes the actual work. **ALEX:** Now, here's a nuance that's important for investors. On the call, there was a lot of discussion about a slight accounting shift. ServiceNow is now investing in "deployment expertise" — basically embedding their own engineers to help big customers get AI live faster. The catch is, some of that revenue that would normally count as subscription revenue is instead getting classified as professional services. **JORDAN:** Right, and CFO Gina Mastantuono was very clear this is small — about 25 basis points in Q3, maybe 50 basis points in Q4 — and it's temporary. Once those contracts renew, that value flows back into subscription revenue. It's basically a short-term trade-off: spend a little now to accelerate how fast customers start actually consuming AI tokens, which drives bigger revenue down the line. **ALEX:** That actually explains so This episode includes AI-generated content.

  3. 9h ago

    Microsoft Q1 2027 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: MAG7 (https://betafinch.com/groups/MAG7), AI_LEADERS (https://betafinch.com/groups/AI_LEADERS) ────────── ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, here with my co-host Jordan, and today we're diving into Microsoft's fiscal Q1 2027 results, reported on October 28th. This was a big one, folks — Satya Nadella basically came out and said "I've never been more confident in the long-term returns for our investments." That's a strong statement. JORDAN: It really is, Alex. And before we get into the numbers, let's just say — there's a lot to unpack here, from Azure acceleration to a brand-new unified Copilot experience. ALEX: Absolutely. But first, the standard reminder: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. JORDAN: Good to have that out of the way. Let's get into it. ALEX: Okay, so top line — Microsoft pulled in $92.3 billion in revenue, up 19% year-over-year. Operating income grew 21%, and EPS came in at $4.89, up 18%. Pretty much across the board, they beat expectations on revenue, operating income, and EPS. JORDAN: And the real headline for me is Microsoft Cloud revenue — it crossed $63.9 billion, with growth *accelerating* to 30%. That's not a typo — accelerating, not decelerating, at this scale. Sequential dollars added nearly doubled year-over-year. ALEX: Which honestly surprised me a bit given how big the cloud business already is. Usually at this size you'd expect deceleration just from the law of large numbers. JORDAN: Exactly, and that's what makes this quarter stand out. Azure specifically grew 48% — even with some third-party capacity deliveries getting delayed. Amy Hood pointed to Foundry and better CPU monetization as the drivers there. ALEX: Let's talk CapEx for a second, because that number jumps out. $45.2 billion this quarter, but guidance for Q2 is now over $50 billion, pushing the calendar-year total to roughly $170 billion. JORDAN: Yeah, and the reason isn't that demand is weakening — it's the opposite. Management flat out said customer demand continues to exceed available supply. So they're accelerating spend specifically because they can't build data centers fast enough. They added 24 new data centers across five continents just this quarter. ALEX: That's wild. And free cash flow, for context, was $18.6 billion — still positive, but clearly compressed by all that CapEx. JORDAN: Now let's get into the strategic story, because this is where it gets interesting. Satya described building an entirely new tech stack centered on what he calls "agentic AI." ALEX: Right, and the biggest consumer-facing piece of that is the unified Copilot experience — they merged Chat, Cowork, Autopilot, and Code into one product. Satya's framing: Copilot is "the new OS for work." JORDAN: And the usage numbers back that up. Automated tasks nearly doubled since July. Daily users up almost 50% quarter-over-quarter, over 5x year-over-year. User satisfaction up nearly 20% quarter-over-quarter to an all-time high. ALEX: What really caught my attention is the enterprise seat expansion — customers with more than 50,000 Copilot seats grew over 8x year-over-year. We're talking Capgemini, Hitachi, Truist, and Volkswagen just announced plans to deploy Copilot to 330,000 employees. JORDAN: That's one of the largest European deployments to date. And underneath all this consumer-facing stuff is Foundry, which Microsoft is positioning as the real growth engine. Over 120,000 Foundry customers now, with revenue more than tripling year-over-year. ALEX: And they paired that with Fabric — 44,000 paid Fabric customers, up more than 50%. The pitch is: build your agents right next to your data. JORDAN: There's also a security and governance la This episode includes AI-generated content.

  4. 9h ago

    KLA Q1 2027 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: CHIPS (https://betafinch.com/groups/CHIPS) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, joined as always by Jordan, and today we're digging into KLA Corporation — ticker KLAC — and their September quarter results. And Jordan, I'll just say it up front: this one's a blowout. **JORDAN:** It really is, Alex. Record revenue, record margins, and a 2027 outlook that sounds almost aggressive. I'm excited to get into it. **ALEX:** Before we do — quick housekeeping. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Important stuff. Okay, let's talk numbers. **ALEX:** So KLA makes process control and inspection equipment for semiconductor manufacturing — basically the tools that check wafers for defects as chipmakers build increasingly complex chips. This quarter, September 2026, they posted revenue of $4.14 billion. That's a record, up 13% sequentially and 29% year-over-year. **JORDAN:** And here's the headline that really jumped out at me — operating margin above 46% for the first time ever in company history. 46.1%, to be exact, up 240 basis points from the prior quarter. **ALEX:** That's a remarkable number for a hardware company. Gross margin came in at 62.7%, non-GAAP EPS was $1.22, GAAP EPS $1.18 — both beating the midpoint of guidance. Free cash flow was $1.34 billion. Pretty much every metric beat expectations. **JORDAN:** And it's not slowing down — guidance for the December quarter is about $4.7 billion in revenue, plus or minus $200 million. That implies the back half of calendar 2026 grows roughly 25% over the first half. That's a massive acceleration. **ALEX:** Right, and CEO Rick Wallace was clear about why: AI infrastructure investment, leading-edge foundry and logic demand, and rising "process control intensity" — basically, as chips get more advanced and complex, you need more inspection and metrology steps per wafer. That plays directly into KLA's wheelhouse. **JORDAN:** Let's talk about the big strategic story here, though — because the 2027 outlook is really what's driving the stock. CFO Bren Higgins raised the 2026 wafer fab equipment market forecast to the mid-$150 billion range, and — this is the eye-popping part — they now expect the 2027 wafer equipment market to exceed $200 billion. **ALEX:** Exceed $200 billion. That's a jump from an already-raised 2026 number. And management said their visibility into 2027 is "unprecedented" — that's a strong word to use on an earnings call. **JORDAN:** It really is, and it's backed up by tangible stuff — growing backlog, a strengthening sales funnel, and numerous greenfield fab projects across foundry, logic, and DRAM. This isn't just a vibes-based forecast; customers are locking in multi-year capacity commitments. **ALEX:** One thing I found fascinating from the Q&A was the DRAM conversation. An analyst pointed out that KLA's DRAM-related revenue jumped around $450 million quarter-over-quarter, which is a huge swing for a market where KLA has a relatively modest overall share. Rick Wallace explained it's about rising "intensity" — DRAM makers, especially with HBM for AI chips, are now treating yield almost like "printing money," as Bren put it, so they're buying a lot more inspection equipment per wafer than they used to. **JORDAN:** That intensity comment stuck with me too. Bren actually said some DRAM products now see process control intensity similar to leading-edge logic — that's a real structural shift, not just a cyclical blip. And they expect memory to be about 60% of the business mix in the second half of 2027. **ALEX:** Advanced packaging was another bright spot — on track for $1.1 billion in revenue for 2026, growing over 70% year-over-yea This episode includes AI-generated content.

  5. 9h ago

    FedEx Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, joined as always by Jordan, and today we're digging into FedEx's third quarter calendar 2026 results. This one's a bit of a milestone episode because FedEx just completed its switch to calendar-year reporting, so there's a lot of moving pieces to unpack. **JORDAN:** Yeah, and a lot has happened since we last checked in on them — spin-offs, a CFO transition, the whole works. Should be a fun one. **ALEX:** Before we jump in, quick disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Solid. Let's get into the numbers. **ALEX:** So headline-wise, FedEx posted revenue growth of 12% year-over-year, adjusted EPS of $3.74 — up 28% — and adjusted operating income up 16%. That's a really strong quarter, especially the operating income growth outpacing revenue growth. **JORDAN:** Right, and that's the story FedEx wants to tell — profitable growth, not just growth for growth's sake. Express U.S. Domestic revenue was up 10%, operating income up 7%. But the real star was International: revenue up 17%, and get this — operating income up 52%. That's a massive jump. **ALEX:** It really is. And they also raised and tightened full-year guidance to $18 to $18.60 in adjusted EPS, which implies about 23% EPS growth for the full calendar year. Plus they're now targeting roughly $4 billion in adjusted free cash flow for the year. **JORDAN:** Free cash flow is clearly the north star here. Management kept hammering that point — "free cash flow anchors our decision-making." And they've already backed that up with action: $2 billion in share buybacks since June, which was actually more aggressive than their original plan. **ALEX:** Let's talk strategy, because this quarter was packed with portfolio-shaping moves. They completed the spin-off of FedEx Freight back in June, closed the sale of FedEx Supply Chain to CMA CGM, and they're close to finalizing a deal with InPost in Europe. **JORDAN:** The InPost piece is interesting — it's basically FedEx saying, "let someone who's great at European B2C handle B2C there, so we can focus our own network on higher-margin B2B and cross-border freight." That's a theme that runs through this whole call, honestly — doubling down on B2B. **ALEX:** Totally. CEO Raj Subramaniam kept emphasizing B2B verticals — health care, automotive, aerospace, and especially AI data centers. There was this great anecdote about winning new airfreight business with an AI data center customer after a 40-year relationship that had been mostly parcel-focused. **JORDAN:** And a 15-fold increase in aircraft engine moves — that's not a typo, fifteen-fold. It shows how they're pulling heavier, more specialized freight away from traditional logistics players and into their network. **ALEX:** Network 2.0 also got a lot of airtime. They're now at nearly 65% of eligible volume flowing through about 630 optimized stations, and they've closed over 260 facilities. They're targeting roughly $1 billion in savings from Network 2.0 by the end of this year, and $2 billion cumulative by the end of 2027. **JORDAN:** That's real operational transformation, not just cost-cutting on the margins. And similarly, they're restructuring Europe — closing stations in France, moving Italy from an 8-hub to a 3-hub model. They're targeting $650 million in International operating income improvement from Europe by 2029. **ALEX:** Now, there was also a leadership change announced — Jamere Jackson, formerly CFO of AutoZone, is coming in as the new CFO effective November 30th, taking over from interim CFO Claude Russ. **JORDAN:** That's worth watching. AutoZone background means he's got real operational and This episode includes AI-generated content.

  6. 9h ago

    Amphenol Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: CHIPS (https://betafinch.com/groups/CHIPS) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! Today we're diving into a genuinely wild quarter from Amphenol — ticker APH. Jordan, I don't think I'm overstating it when I say this might be one of the most eye-popping prints we've covered. **JORDAN:** Yeah, this one's got some real "wait, what?" numbers in it. I'm excited to get into it. **ALEX:** Before we do — quick housekeeping. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Important stuff. Okay, so let's set the scene — this is Amphenol's third quarter of fiscal 2026, reported October 28th. **ALEX:** Let's start with the headline number: $10.2 billion in sales. That's a record, and it's the company's first-ever $10 billion quarter. Sales were up 65% year-over-year, and even stripping out acquisitions and currency effects, organic growth was 37%. **JORDAN:** Thirty-seven percent organic growth for a company this size is just staggering. And the driver is pretty much one word: AI. **ALEX:** Right, the IT Datacom segment — which now makes up 48% of total company sales — grew 100% in dollar terms and 77% organically. Management said AI-related demand now represents roughly three-quarters of that entire IT Datacom business, which itself has more than doubled year-over-year. **JORDAN:** That's the story in a nutshell. CEO Adam Norwitt put it well on the call — he said customers building next-gen AI architectures just need "more interconnect, period." More copper, more optical, more power. And Amphenol sits right in the middle of all three of those categories. **ALEX:** Let's talk profitability, because growth without margins is only half the story. Adjusted operating margin came in at 29.7%, up 22 basis points year-over-year. Adjusted diluted EPS hit $0.80, up 74% from last year. **JORDAN:** And free cash flow was $1.6 billion for the quarter — that's 80% of net income, which CFO Craig Lampo called "excellent" given how fast they're growing. Usually rapid growth eats into cash flow because you need working capital, but Amphenol's really controlling that. **ALEX:** Now here's a number that really stood out to me — orders. Bookings hit a record $12.17 billion, basically doubling year-over-year, giving a book-to-bill ratio of 1.19-to-1. **JORDAN:** Book-to-bill above 1 means they're booking more orders than they're shipping — so the backlog is growing. And positive book-to-bill in nearly every end market tells you this isn't just an AI story, it's broad-based demand. **ALEX:** Speaking of broad-based — let's hit the other six end markets quickly, because the diversification story is still very real here. Defense was up 30% organically, driven by what Norwitt called a "technology inflection" plus rising geopolitical tension globally. Industrial grew 25% organically — just about every sub-segment, from factory automation to oil and gas, was in double digits. **JORDAN:** Mobile devices surprised to the upside too — up 29% organically on wearables and laptops. The one soft spot was communications networks, where organic sales actually declined 28% due to weakness in broadband spending — though that market still grew overall thanks to the CommScope acquisition. **ALEX:** Right, let's talk CommScope, because that acquisition keeps getting better. Management upgraded their outlook — now expecting CommScope to do $5.1 billion in revenue this year, up from the original $3.6 billion deal-signing estimate, and contribute 18 cents to full-year EPS. **JORDAN:** And get this — CommScope's own IT Datacom exposure is now expected to represent about half of their sales, up from roughly a third last year. Norwitt was pretty blunt on the cal This episode includes AI-generated content.

  7. 19h ago

    GE Vernova Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com ────────── ALEX: Hey everyone, welcome back to Beta Finch, your AI-powered earnings breakdown where we take the dense, jargon-filled earnings calls and turn them into something you can actually enjoy with your morning coffee. I'm Alex. JORDAN: And I'm Jordan. And Alex, today's episode is a big one. ALEX: Before we dive in, quick disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. JORDAN: Got it. And yeah, today we're talking GE Vernova — ticker GEV — their Q3 2026 results, which dropped on October 28th. This is the power equipment and electrification spinoff from GE, and honestly, Alex, this quarter had a little bit of everything. ALEX: Everything is right. Let's start with the headline numbers because they're pretty stunning. Orders came in at $29.3 billion for the quarter — that's up 96% year-over-year. Their book-to-bill ratio was more than 2-to-1, meaning they're booking way more business than they're actually billing out right now. JORDAN: Which is the good kind of problem to have. That pushed their total backlog up to $197 billion — nearly $200 billion, up from $176 billion just last quarter. ALEX: And revenue grew 18% year-over-year, with adjusted EBITDA more than doubling — up 123% to $1.9 billion. Margin expanded a whopping 690 basis points. JORDAN: Let's put some color on where that's coming from, because it's not one segment carrying the whole load. Power segment margins hit 21.4% — and remember, Q3 is historically their weakest seasonal quarter for services. CEO Scott Strazik made a point of calling that out. ALEX: Right, because this is the first quarter they're shipping gas turbine equipment at the new, higher prices they locked in — they hit that 5-gigawatt quarterly shipment target. Strazik basically said: this is the beginning, not the peak. JORDAN: Electrification also impressed — 19.1% EBITDA margin, up 470 basis points, even while they're ramping R&D spend. And Wind — Wind actually turned profitable this quarter, Alex. That's the segment that's been a headache for years. ALEX: A real milestone. They resolved that Vineyard Wind litigation dispute with only a modest P&L hit, and onshore services performance has been improving steadily. CFO Ken Parks noted they're even pulling forward some scheduled maintenance from 2027 into Q4 because the team's executing so well. JORDAN: Okay, now let's get to the big strategic news, because this is what analysts spent most of the call asking about: the $9 billion acquisition of Trench Group. ALEX: Trench makes high-voltage grid components — bushings, instrument transformers, coils. GE Vernova already buys from them, but this vertically integrates a critical piece of their supply chain right as demand for grid infrastructure is exploding, partly thanks to data centers and AI. JORDAN: And the price tag — 13 times 2028 EBITDA before synergies — isn't cheap, but management framed it as immediately accretive. Trench is expected to hit roughly $2 billion in revenue by 2028 with margins around 36%. ALEX: What stood out to me in the Q&A was when analyst Nigel Coe asked how much of Trench's business is actually tied to GEV today versus external customers. Strazik's answer: GEV is currently a small slice of Trench's $1.4 billion revenue — but bushings alone make up 5-8% of a transformer's bill of materials, and customers often specify the bushing supplier by name. So owning that technology could pull forward a lot more transformer business. JORDAN: It's a classic "control your supply chain to meet surging demand" story — similar to what they did last year with the Prolec acquisition, which management says is already outperforming expectations. ALEX: And in the same breath as announcing Trench, they doubled thei This episode includes AI-generated content.

  8. 19h ago

    Boston Scientific Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: HEALTHCARE (https://betafinch.com/groups/HEALTHCARE) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, joined as always by Jordan, and today we're digging into Boston Scientific's third quarter 2026 results. And folks, there's a lot going on here — a cyber incident, competitive pressure, and some pretty candid talk about 2027 being a tough year. But before we get into it... This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Alright, let's set the scene. Boston Scientific, ticker BSX, has been a Wall Street darling for years — consistent growth, strong execution. But this quarter was rough. **ALEX:** Rough is right. Organic revenue grew just 1.5%, way below their guided range of 3% to 5%. Adjusted EPS came in at 73 cents, down 3% year-over-year, versus a guide of 80 to 82 cents. **JORDAN:** And the big culprit here is this cybersecurity incident that forced an operational outage. For about two weeks, they literally couldn't manufacture or ship product in some cases. **ALEX:** Right, management says that knocked off roughly 300 basis points of revenue growth and about 7 cents of EPS in the quarter. The good news — operations were fully back online by September 8th. But here's the kicker: the pain doesn't stop there. They're expecting another 200 to 300 basis points of headwind in Q4 because customers over-ordered at the end of Q3 to restock inventory, and now that has to normalize. **JORDAN:** It's like a hangover from the outage. You binge-order to protect your supply chain, and then the following quarter you're just burning through that excess inventory instead of placing new orders. **ALEX:** Exactly. And that's part of why Q4 guidance is actually a revenue *decline* — negative 1% to negative 3% organically, with EPS of 77 to 79 cents. For the full year 2026, they're now looking at about 4% organic growth and EPS of $3.16 to $3.18. **JORDAN:** Now, cyber incident aside, there's a bigger structural story here, and I think this is really the headline of the call. Two of their biggest growth engines over the last few years — Watchman, the left atrial appendage closure device, and their electrophysiology business built around FARAPULSE — are now dragging down total company growth. **ALEX:** Yeah, let's talk about EP first because that one's a bit alarming. Sales declined 5% year-over-year, down 8% in the U.S. Management openly admitted they're losing share as new pulsed-field ablation competitors enter the market with different catheter designs. And here's the thing — they don't expect real relief until they launch FARAWAVE Ultra, which got pushed to early 2028. Originally that was supposed to be sooner. **JORDAN:** And it's not just Ultra — their next-gen wide-area catheter, FARAFLEX, is now a 2029 launch. CEO Mike Mahoney and CFO John Monson were pretty transparent that pipeline timing has been a problem. Executive Joe Fitzgerald explained some of the delays — Ultra's held up by design verification and validation work, while FARAFLEX has had FDA negotiation delays and some operational hurdles in scaling up the clinical trial. **ALEX:** And then there's Watchman — down 7% in the U.S., though international grew 4%. Management's take is that physicians are reassessing referral patterns based on recent clinical evidence, and that's slowing the whole left atrial appendage closure market down, not just Boston Scientific specifically. **JORDAN:** They're throwing resources at it though — over 200 medical education events last quarter alone, more dedicated sales reps, and they've got a next-gen Watchman FLX Pro platform in a clinical trial now, aiming for a 2029 launch. **ALEX:** So here's where it gets really interest This episode includes AI-generated content.

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Top 100 US-listed companies by market capitalization. AI-powered earnings call analysis for S&P 100 (SP100). Two AI hosts break down quarterly results, key metrics, and market implications in digestible podcast episodes.

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