IBM

A month has gone by since the last earnings report for Seagate (STX). Shares have added about 35.3% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Seagate due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Seagate reported third-quarter fiscal 2026 non-GAAP earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.50 and exceeding the high end of management’s guidance of $3.40 (+/- 20 cents). The bottom line expanded 115% year over year and 32% sequentially on the back of the strong execution of its strategic objectives and effective use of the technology roadmap to support growing demand. Non-GAAP revenues of $3.11 billion exceeded the Zacks Consensus Estimate by 5.7%. Revenues also surpassed the high end of guidance, increasing 44% year over year. It is operating in a very strong demand environment, especially in data center markets. Management noted that the shift toward inference-driven workloads, agentic AI and multimodal applications is leading to exponential growth in data creation and storage needs. The March quarter witnessed steady growth in high-capacity nearline drive demand across global cloud and hyperscaler customers. Nearline products accounted for roughly 90% of total exabyte shipments, with capacity largely allocated through calendar 2027. Modern data centers increasingly need solutions that balance performance with cost efficiency, a trend that strongly favors Seagate’s roadmap. The company’s areal-density-driven strategy aligns well with the long-term growth of AI-generated data, suggesting sustained demand beyond short-term cycles. The company’s HAMR (Heat-Assisted Magnetic Recording) technology and Mozaic platform remain central to its long-term growth strategy. It began revenue shipments of Mozaic 4 in late March, which can deliver up to 44 terabytes per drive, representing more than 30% higher capacity compared with the first-generation drives. Seagate noted that Mozaic 4+ is projected to constitute the majority of its HAMR exabyte shipments exiting calendar 2026. With the development of Mozaic 5 underway, it targets to commence qualification shipments of the same in late calend...

Solid earnings and a resilient economy could keep the rally going—even if the Fed starts thinking about interest rate hikes.

This article first appeared on GuruFocus. Release Date: May 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Datavault AI Inc (NASDAQ:DVLT) has signed $800 million in tokenization contracts, tied to approximately $90 million in fees, which are expected to significantly impact 2026 revenue. The company has a strong balance sheet with $250 million in available funding, including $60 million from a recent private placement. Datavault AI Inc (NASDAQ:DVLT) is executing a spin-out of its Acoustic Science Division, which is expected to operate as a standalone entity with significant growth opportunities. The company has partnered with major players like IBM and Houlihan Loki, enhancing its technological capabilities and regulatory compliance. Datavault AI Inc (NASDAQ:DVLT) is positioned at the forefront of Web 3.0 technology, focusing on data monetization, cybersecurity, and digital asset infrastructure. Revenue recognition is heavily weighted towards the second half of the year, indicating potential volatility in financial performance. The company's growth and revenue realization are contingent on the passage of the Clarity Act, which introduces regulatory uncertainty. There is a risk of lumpiness in revenue due to the timing of tokenization contracts and legislative developments. The integration of recent acquisitions, such as NIACS and CyberCatch, may pose operational challenges. The company faces competition in the tokenization market, although it claims a strategic advantage due to its intellectual property. Warning! GuruFocus has detected 3 Warning Signs with DVLT. Is DVLT fairly valued? Test your thesis with our free DCF calculator. Q: How does the NIACS acquisition and the Clarity Act facilitate Datavault AI's operations and integration plans? A: Nathaniel Bradley, CEO, explained that NIACS brings significant intellectual property and technology, particularly NASDAQ Financial rails, which are crucial for their digital asset exchange. The Clarity Act is expected to provide the necessary regulatory framework, allowing Datavault AI to operate compliantly and effectively in the digital asset space. Q: What is the expected impact of the tokenization contracts on Datavault AI's revenue, and how does Sanctum contribute to this? A: Nathaniel Bradley, CEO, stated that the tokenization contracts, valued at...

Kyndryl’s first quarter results were met with a negative market reaction, as the company posted flat year-on-year revenue while its non-GAAP profit per share fell significantly below Wall Street’s expectations. Management attributed the quarter’s performance to prolonged sales cycles and evolving customer purchasing behaviors, particularly in relation to IBM partnerships. CEO Martin Schroeter noted that customers are increasingly deliberate in IT decision-making as they balance modernization and operational stability, impacting both signings and revenue growth. Is now the time to buy KD? Find out in our full research report (it’s free). Revenue: $3.77 billion vs analyst estimates of $3.76 billion (flat year on year, in line) Adjusted EPS: $0.18 vs analyst expectations of $0.47 (61.6% miss) Adjusted EBITDA: $688 million vs analyst estimates of $670.6 million (18.3% margin, 2.6% beat) Operating Margin: 4.5%, in line with the same quarter last year Market Capitalization: $2.59 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kevin Krishnaratne (Scotiabank) asked about geographic trends and the likelihood of reaching flat revenue versus a decline. CEO Martin Schroeter explained that longer sales cycles, particularly in Europe due to data sovereignty concerns, are weighing on growth, but emphasized renewed momentum in the U.S. market. James Faucette (Morgan Stanley) questioned where customers are prioritizing IT spend, especially regarding cloud versus on-premise deployments. CFO Harsh Chugh highlighted that data sovereignty and evolving regulatory requirements are leading to increased interest in private cloud and mainframe modernization, with Kyndryl positioned to advise on these choices. Jamie Friedman (Susquehanna) sought clarification on the impact of IBM relationship changes on long-term revenue targets. Schroeter acknowledged that the shift is materially different from earlier expectations and is negatively impacting revenue, but stressed that profit margins are insulated from this effect. Tien-Tsin Huang (JPMorgan) asked what could catalyze a normalization of sales cycles. Schroeter responded that increasi...

Interested in Kyndryl Holdings, Inc.? Here are five stocks we like better. Kyndryl’s fiscal 2026 revenue was flat at $15.1 billion on a reported basis, but the company still posted improved profitability and strong cash generation, including $406 million in free cash flow and higher adjusted EBITDA and pretax margins. Growth areas continued to shine as Kyndryl Consult delivered double-digit revenue growth for a third straight year and hyperscaler-related revenue rose 59% to $1.9 billion, with management also highlighting momentum in alliances and private cloud demand. Fiscal 2027 guidance remains cautious with revenue expected to be flat to down 2% in constant currency due to longer sales cycles and IBM-related buying shifts, though Kyndryl expects adjusted pretax income of $600 million to $700 million and free cash flow of $400 million to $500 million. MarketBeat Week in Review – 02/17 - 02/21 Kyndryl (NYSE:KD) reported flat full-year fiscal 2026 revenue on a reported basis and outlined a fiscal 2027 outlook that reflects continued pressure from longer sales cycles and changes in how customers buy IBM-related technology, while management emphasized margin expansion, cash generation and growth in consulting and hyperscaler-related services. Chairman and Chief Executive Officer Martin Schroeter said the company delivered adjusted pretax income growth, margin expansion and more than $400 million in free cash flow during the year ended March 31, 2026. He said the results came despite an environment that “continued to extend sales cycles and weigh on our revenue and signings performance.” → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Kyndryl Soars on AI, Cybersecurity Growth—What’s Next? “Customers are telling us that they are eager to embrace innovative solutions and modernization strategies, yet they are increasingly thoughtful and deliberate in their IT decision-making,” Schroeter said, citing data sovereignty, artificial intelligence and cyber preparedness as factors influencing customer decisions. Kyndryl generated $15.1 billion in fiscal 2026 revenue, flat from the prior year on a reported basis and down 3% in constant currency. Total signings were $13.5 billion. Adjusted EBITDA was $2.7 billion, and adjusted pretax income was $581 million. → 3 Ways to Target the Resources Powering AI and Data Centers MarketBeat Week in Review – 9/25 - 9...

Performance was characterized by strong growth in Kyndryl Consult and hyperscaler-related revenue, which reached nearly $2 billion, offsetting headwinds from legacy account exits. Management attributed extended sales cycles to increased customer deliberation regarding data sovereignty, AI preparedness, and regulatory compliance, particularly in European markets. The company is transitioning its operational model to an 'Agentic AI' framework, utilizing AI agents within Kyndryl Bridge to resolve incidents 70% to 90% faster and reduce human labor dependency by 50% to 70%. A significant shift in the IBM partnership has emerged as customers increasingly choose to procure hardware and software directly from IBM, creating a 3-point headwind on Kyndryl's revenue while remaining profit-neutral. Strategic positioning is focused on 'mission-critical' modernization, moving beyond infrastructure into application-layer transformations and private cloud environments. The '3 A's' initiative (Alliances, Advanced Delivery, and Accounts) has matured into a core operational discipline, contributing approximately $1 billion in cumulative annual savings. Fiscal 2027 guidance assumes revenue will be flat to down 2% in constant currency, reflecting continued headwinds from the evolving IBM relationship and prolonged decision-making. Management expects a 'workforce rebalancing' action in Q1 2027 to cost approximately $200 million, with anticipated annualized savings of $400 million to $500 million by fiscal 2028. The company reaffirmed its fiscal 2028 targets of over $1.2 billion in adjusted pretax income and over $1 billion in free cash flow, predicated on low single-digit revenue growth. Revenue performance is expected to be back-half weighted in fiscal 2027 as post-spin signings with higher margins increasingly flow through the P&L. Free cash flow for fiscal 2027 is projected between $400 million and $500 million, maintaining a consistent conversion rate from adjusted pretax income less cash taxes. The company disclosed a $200 million charge for workforce rebalancing in Q1 2027 to align its cost structure with new AI-driven delivery efficiencies. Management addressed material weaknesses in internal controls, stating that design and testing are expected to be completed by the filing of the fiscal 2027 Form 10-K. A pending acquisition of Solvinity for EUR 100 million is expected to...

Revenue growth was driven by a recovery in Industrial Automation demand, particularly in Japan, as customer inventory levels normalized. The Transportation segment benefited from design wins transitioning to production, specifically in Asian railway applications where MRAM's vibration resistance and safety integrity (SIL4) provide a competitive edge. Data Center growth remains anchored by ongoing module work with IBM and RAID reference designs at a top-five hyperscale operator. Management announced a new $40 million, 2.5-year subcontract with a U.S. prime contractor to provide Toggle MRAM technology and engineering services for the defense industrial base. A strategic 10-year manufacturing agreement with Microchip will establish a second domestic production source in Oregon to enhance supply chain resiliency. The UNISYST product family was introduced to target the $3 billion high-density stand-alone NOR Flash market, aiming for 5% to 10% market share in its early years. Q2 2026 revenue is projected between $15.5 million and $16.5 million, excluding any potential impact from the newly announced $40 million defense subcontract. Engineering samples for the UNISYST family are expected in Q4 2026, with a typical 18-to-24-month qualification cycle before significant production ramps. High-reliability 128-megabit and 256-megabit parts are on track for qualification and high-volume availability in the second half of 2026. The first product shipments from the new Microchip manufacturing line are anticipated in the second half of 2027. A $14.6 million DoD sustainment contract is expected to wind down over coming quarters with an estimated completion in the first half of 2027. Litigation costs significantly impacted GAAP operating expenses, totaling $1.6 million in Q1, and are expected to remain at similar levels for at least the next two quarters. The company maintains a debt-free balance sheet with $40.5 million in cash, which management deems sufficient for upcoming capital requirements related to the Microchip agreement. Gross margins reached 52.7% due to higher capacity utilization and yield improvements, with a long-term target of maintaining 50% plus. The new $40 million defense contract includes provisions for technology transfer and second-source rights for the contractor in the event Everspin exits the business. Our analysts just identified a stock with the p...

Seagate Technology Holdings plc STX reported third-quarter fiscal 2026 non-GAAP earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.50 and exceeding the high end of management’s guidance of $3.40 (+/- 20 cents). The bottom line expanded 115% year over year and 32% sequentially on the back of STX’s strong execution of its strategic objectives and effective use of the technology roadmap to support growing demand. Non-GAAP revenues of $3.11 billion exceeded the Zacks Consensus Estimate by 5.7%. Revenues also surpassed the high end of guidance, increasing 44% year over year. STX is operating in a very strong demand environment, especially in data center markets. Management noted that the shift toward inference-driven workloads, agentic AI and multimodal applications is leading to exponential growth in data creation and storage needs. Seagate Technology Holdings PLC price-consensus-eps-surprise-chart | Seagate Technology Holdings PLC Quote The March quarter witnessed steady growth in high-capacity nearline drive demand across global cloud and hyperscaler customers. Nearline products accounted for roughly 90% of total exabyte shipments, with capacity largely allocated through calendar 2027. Modern data centers increasingly need solutions that balance performance with cost efficiency, a trend that strongly favors Seagate’s roadmap. The company’s areal-density-driven strategy aligns well with the long-term growth of AI-generated data, suggesting sustained demand beyond short-term cycles. The company’s HAMR (Heat-Assisted Magnetic Recording) technology and Mozaic platform remain central to its long-term growth strategy. It began revenue shipments of Mozaic 4 in late March, which can deliver up to 44 terabytes per drive, representing more than 30% higher capacity compared with the first-generation drives. Seagate noted that Mozaic 4+ is projected to constitute the majority of its HAMR exabyte shipments exiting calendar 2026. With the development of Mozaic 5 underway, STX targets to commence qualification shipments of the same in late calendar 2027. Image Source: Zacks Investment Research Following a robust business performance, STX’s shares are up 15.3% in the pre-market trading today. In the past year, shares have gained 536.1% compared with the Zacks Computer-Integrated Systems industry’s rise of 158.1%. Beginning first-quarter fiscal 2026, STX r...

Friday, April 24th, 2026 Pre-market futures are off their early morning highs, but still mostly in positive territory. Cease-fire talks look promising, as Iran reportedly is sending negotiators to Pakistan and plans are for an Israel-Lebanon summit in the U.S. But the Strait of Hormuz remains closed, and even though Q1 earnings continue to come in strong, there remain plenty of question marks on the horizon. The Nasdaq is by far the outperformer among major indexes at this hour, +315 points or +1.17%, partly on strong Q1 numbers from Intel INTC yesterday after the close. The S&P 500 is +22 points, +0.31% and the small-cap Russell 2000 is +10, +0.37%. Only the blue-chip Dow is in the red currently: -70 points, -0.14%, largely on IBM’s IBM reported struggles in the software space in its earnings results yesterday. Procter & Gamble PG surpassed expectations on both top and bottom lines in its fiscal Q3 report this morning. Earnings of $1.59 per share beat the Zacks consensus by 3 cents, while revenues of $21.24 billion in the quarter outpaced estimates by +3.5%, and nicely ahead of the $19.78 billion reported in the year-ago quarter. For more on PG’s earnings, click here. Oilfield services major SLB SLB, formerly Schlumberger, beat estimates on its bottom line by a penny, and revenues of $8.32 billion were ahead of projections by +1.1%. But the high valuation of the stock (+42.6% year to date) is playing a factor in the stock’s -3.6% selloff ahead of the open. For more on SLB's earnings, click here. At 10am ET, the final print for U.S. Consumer Sentiment from the University of Michigan comes out. This highly respected metric saw an -11% drop month over month in the earlier release, to a record-low 47.6. Expectations are for this to bump up a percentage point or so, but still in relatively weak territory. Business conditions dropped -20% in the last report, while inflation expectations jumped +100 basis points (bps) to +4.8%. We look for these figures to moderate somewhat, as well, but the early stages of the Iran war were fraught with negative sentiment. We don’t expect revisions to completely erase this narrative. Q1 earnings season accelerates further next week, featuring results from Alphabet GOOGL, Amazon AMZN, Meta Platforms META and Microsoft MSFT, among many others — and these all on Tuesday afternoon. We’ll also see housing data from Case-Shiller and Ho...

Investors appear to be treating any results that aren’t perfect as a confirmation of their worst fears about AI disruption.

Shares in SAP were rallying on Friday after the German tech company reported better-than-expected first-quarter profit and reiterated its 2026 cloud revenue outlook, with a caveat. The company continues to expect 2026 cloud revenue of between €25.8 billion and €26.2 billion.

Adjusted EPS $1.44, up more than 20% year-over-year, with adjusted operating profit rising about 24% YoY and sequential margin expansion, marking management's characterization of the quarter as "defining." Record sales momentum with $67 million of net sales events in the quarter (IMS contributed >$50 million), including two large alternative-manager wins (one in the top 5 and one in the top 15 globally) that management expects to "land and expand." Active capital allocation and tech focus: SEI repurchased about $208 million of stock in Q1, ended the quarter with $363 million of cash, and is investing in AI (including an IBM partnership) to drive automation, margin expansion and new service capabilities. Interested in SEI Investments Company? Here are five stocks we like better. 3 Mid-Cap to Mega-Cap Stocks Have Announced Significant Buybacks SEI Investments (NASDAQ:SEIC) reported what executives repeatedly described as a “defining” first quarter of 2026, highlighting sharp year-over-year earnings growth, record sales activity, and continued margin expansion tied to strategic initiatives across the company. Chief Executive Officer Ryan Hicke said the quarter was “emphatic evidence that the strategic and operating changes we have made set a new standard for what SEI is capable of delivering on a sustained basis.” Adjusted EPS totaled $1.44, which Hicke said was “more than a 20% increase from last year,” driven by top-line growth and margin expansion. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Hicke said SEI generated $67 million of net sales events in the quarter, including $57 million of recurring revenue and $10 million of professional services. He characterized the result as exceeding SEI’s prior quarterly record “by more than 40%.” Chief Financial and Chief Operating Officer Sean Denham said sales activity was “exceptional,” with Investment Manager Services (IMS) producing “more than $50 million of net sales events,” driven by large enterprise mandates. Denham added that “portions of these wins accounted for just over half of total IMS sales events” and said the company expects those relationships to continue contributing to sales activity in future quarters and years. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand Phil McCabe, EVP and Global Head of the Investment Managers Business, provided additional detail, saying SEI...