Earnings Beyond Mag 7: IBM, LCRX & RCL Soar

IBM - IBM shares rose over 7% following better-than-expected quarterly results, with revenue increasing by 12% to $19.7 billion and adjusted EPS at $4.52, surpassing the expected $4.32 [1][2] - The company anticipates full-year revenue growth above 5%, exceeding consensus expectations, and expects free cash flow to rise by $1 billion, which is significant for dividends and buybacks [2] - IBM's generative AI business has reached $12.5 billion, indicating strong enterprise demand beyond pilot projects [3] - Software revenue increased by 14%, with Red Hat growing by 10%, driven by hybrid cloud and AI-enabled workload demand, while infrastructure revenue surged over 20% [4][5] - Analysts suggest IBM may be a better investment in quantum computing compared to younger players, with a long-term vision to scale by 2030 [6] Royal Caribbean - Royal Caribbean's adjusted EPS was $2.80, with revenue at $4.26 billion, meeting expectations, and management reported strong demand for future cruises [8] - The company forecasts adjusted EPS for 2026 between $17.70 and $18.10, significantly above street expectations, with anticipated double-digit revenue growth [9] - Approximately two-thirds of capacity for 2026 is already booked at record pricing, indicating strong demand and pricing power in the experience economy [11] Lamb Research - Lamb Research shares gained after reporting adjusted EPS of $1.27, beating the expected $1.17, with revenue at $5.35 billion [13] - The company anticipates 23% growth in the wafer fab equipment market in 2026, driven by strong demand from the AI boom [13] - The CEO emphasized ramping execution velocity to support customer growth, highlighting strength in DRAM, leading-edge logic, and advanced packaging [14]