Three mega-cap tech companies reported earnings on Wednesday, and the market's verdict was swift and brutal for one company while two Magnificent 7 members received stamps of approval. ...

Investors eye Apple earnings; results due from Chevron, Exxon Mobil ...

Core Insights - Schneider National reported revenue of $1.4 billion for the quarter ended December 2025, reflecting a year-over-year increase of 4.5% but a revenue surprise of -3.78% compared to the Zacks Consensus Estimate of $1.45 billion [1] - The company's EPS was $0.13, down from $0.20 in the same quarter last year, resulting in an EPS surprise of -37.68% against the consensus estimate of $0.21 [1] Financial Performance Metrics - The consolidated operating ratio was reported at 97.4%, higher than the five-analyst average estimate of 95.9% [4] - The intermodal operating ratio was 93.3%, slightly below the four-analyst average estimate of 93.4% [4] - The truckload operating ratio was 96.2%, compared to the average estimate of 94.6% by four analysts [4] - The logistics operating ratio was 99.2%, exceeding the four-analyst average estimate of 97.5% [4] Revenue Breakdown - Fuel surcharge revenue was $145.7 million, surpassing the average estimate of $138.43 million, marking a year-over-year increase of 9.2% [4] - Intermodal revenue was $268.2 million, below the estimated $288.24 million, representing a year-over-year decrease of 2.9% [4] - Logistics revenue reached $329.3 million, slightly below the average estimate of $339.54 million, with a year-over-year increase of 1.7% [4] - Truckload revenue was reported at $610 million, lower than the estimated $637.21 million, but showing a year-over-year increase of 8.9% [4] - Other revenue was $89.3 million, below the average estimate of $93.53 million, with a year-over-year increase of 0.6% [4] - Inter-segment eliminations revenue was reported at -$42.9 million, better than the estimated -$48.85 million, reflecting a year-over-year decrease of 0.9% [4] - Dedicated revenue (excluding fuel surcharge) was $425.7 million, below the estimated $443.15 million, with a year-over-year increase of 13.4% [4] - Network revenue (excluding fuel surcharge) was $183.9 million, below the average estimate of $195.07 million, representing a year-over-year decrease of 0.7% [4] Stock Performance - Schneider National's shares have returned +13.9% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Robert Half (RHI) reported a revenue of $1.3 billion for the quarter ended December 2025, reflecting a year-over-year decline of 5.8% and an EPS of $0.32 compared to $0.53 a year ago, with a revenue surprise of +0.88% over the Zacks Consensus Estimate of $1.29 billion and an EPS surprise of +6.67% over the consensus estimate of $0.30 [1] Financial Performance - The company’s service revenues from permanent placement talent solutions were $102.57 million, exceeding the estimated $100.04 million, but showing a year-over-year decline of 5.1% [4] - Service revenues from Protiviti were reported at $478.96 million, slightly below the estimated $482.49 million, with a year-over-year change of -2% [4] - Total contract talent solutions generated $720.85 million, surpassing the average estimate of $709.81 million, but reflecting a year-over-year decline of 8.2% [4] - Contract talent solutions in technology reported $156.38 million, slightly below the estimated $159.39 million, with a year-over-year change of -1% [4] - Contract talent solutions in finance & accounting reached $535.23 million, exceeding the average estimate of $517.28 million, with a year-over-year decline of 6.9% [4] - Administrative and customer support contract talent solutions generated $153.03 million, above the estimated $149.91 million, but showing a year-over-year decline of 11.4% [4] - The elimination of intersegment revenues was reported at $-123.8 million, slightly worse than the estimated $-119.38 million, but reflecting a year-over-year improvement of +3% [4] Stock Performance - Over the past month, shares of Robert Half have returned -0.8%, contrasting with the Zacks S&P 500 composite's +0.8% change, and the stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance against the broader market [3]

Core Insights - Southwest Airlines Co. reported mixed fourth-quarter 2025 results, with earnings exceeding estimates while revenues fell short [1] Financial Performance - Quarterly earnings were 58 cents per share, beating the Zacks Consensus Estimate of 56 cents and reflecting a 3.6% year-over-year improvement [2] - Revenues totaled $7.44 billion, missing the Zacks Consensus Estimate of $7.52 billion but showing a 7.4% year-over-year increase [2] - Passenger revenues, which made up 91.1% of total revenues, grew 7.6% year over year to $6.78 billion [2] Operational Metrics - Airline traffic, measured in revenue passenger miles, increased by 3.2% year over year to 35.56 billion [4] - Capacity, or available seat miles (ASMs), rose 5.8% year over year to 46.05 billion, leading to a load factor decrease of 2 percentage points to 77.2% [4] - Passenger revenue per available seat mile (PRASM) grew 1.7% year over year to 14.73 cents [4] - Revenue per available seat mile (RASM) increased by 1.5% year over year to 16.16 cents [5] Operating Income and Expenses - Operating income for the fourth quarter was $391 million, up from $278 million in the previous year [6] - Adjusted operating income was $380 million, slightly down from $397 million year over year [6] - Total adjusted operating expenses increased by 6.6% in the fourth quarter [7] - Consolidated unit cost (CASM) excluding fuel, oil, and profit-sharing expenses grew by 0.8% year over year [7] - Fuel cost per gallon rose by 1.2% year over year to $2.45 [7] Liquidity and Capital Expenditures - Cash and cash equivalents at the end of the fourth quarter were $3.23 billion, up from $2.90 billion in the prior quarter [8] - Long-term debt increased to $4.57 billion from $4.08 billion [8] - The company generated $295 million in cash from operating activities during the quarter [8] - Net capital expenditures for the fourth quarter were $859 million [8] Shareholder Returns - In 2025, the company repurchased shares worth $2.6 billion and paid $399 million in dividends [9] Future Outlook - For the first quarter of 2026, the company expects unit revenues to grow at least 9.5% year over year and adjusted earnings per share to be at least 45 cents [10][11] - Capacity for the first quarter of 2026 is anticipated to increase by 1-2% year over year [12] - For the full year 2026, the company expects capacity to rise by 2-3% and adjusted earnings per share to be at least $4.00 [13] - Net capital spending for 2026 is projected to be between $3.0 billion and $3.5 billion, with 66 Boeing 737-8 aircraft deliveries scheduled [13]

Core Insights - Cullen/Frost Bankers reported a revenue of $603.38 million for the quarter ended December 2025, reflecting an 8.4% increase year-over-year and a 3% surprise over the Zacks Consensus Estimate of $585.8 million [1] - The earnings per share (EPS) for the quarter was $2.57, up from $2.36 in the same quarter last year, with an EPS surprise of 3.91% compared to the consensus estimate of $2.47 [1] Financial Performance Metrics - Net charge-offs as a percentage of average loans were 0.1%, better than the average estimate of 0.2% [4] - Total earning assets averaged $50.03 billion, exceeding the three-analyst average estimate of $49.42 billion [4] - Net Interest Margin (FTE) was reported at 3.7%, matching the average estimate [4] - Non-accrual loans amounted to $70.48 million, higher than the estimated $56.86 million [4] - Book value per common share at the end of the quarter was $69.96, slightly above the average estimate of $69.50 [4] - Total Non-Interest Income reached $132.16 million, surpassing the average estimate of $123.85 million [4] - Net Interest Income (FTE) was $471.22 million, exceeding the average estimate of $461.96 million [4] - Service charges on deposit accounts were $32.36 million, compared to the average estimate of $29.74 million [4] - Net Interest Income was reported at $448.71 million, above the average estimate of $435.51 million [4] - Insurance commissions and fees totaled $15.18 million, exceeding the average estimate of $14.91 million [4] - Trust and investment management fees were $45.65 million, slightly above the average estimate of $45.05 million [4] - Other charges, commissions, and fees reached $15.23 million, compared to the average estimate of $14.64 million [4] Stock Performance - Shares of Cullen/Frost have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Tetra Tech, Inc. (TTEK) reported adjusted earnings of 35 cents per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of 31 cents and management's guidance of 30-33 cents, while matching the year-ago figure [1][9] Revenue & Segmental Performance - Tetra Tech generated revenues of $1.21 billion, a year-over-year decrease of 14.8%, but surpassed management's guidance of $950 million-$1.0 billion and the Zacks Consensus Estimate of $973 million [2] - Adjusted net revenues were $1.04 billion, down 13.4% year over year [2] - The backlog at the end of Q1 was $3.95 billion, down 27.3% year over year [3] - Revenues from U.S. Federal customers increased by 7% year over year, while U.S. Commercial sales decreased by 3% [4] - U.S. State and Local sales rose by 10% year over year, and International sales increased by 13% year over year [5] - Government Services Group segment revenues were $432.1 million, down 33.2% year over year, while Commercial/International Services Group segment revenues were $605.1 million, up 10% year over year [5] Margin Profile - Subcontractor costs totaled $173.5 million, down 22.3% year over year, while other adjusted costs of revenues were $816.8 million, down 16.3% [6] - Adjusted operating income decreased by 2.7% year over year to $133.5 million, with an adjusted margin increase of 140 basis points to 12.9% [7] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q1 were $269.4 million, up from $167.5 million at the end of fiscal 2025, while long-term debt increased to $834.3 million from $763.4 million [8] - Net cash generated from operating activities was $72.3 million, compared to $13.1 million in the prior year [10] Shareholder-Friendly Policies - Tetra Tech distributed dividends totaling $16.9 million in Q1 fiscal 2026, an increase from $15.5 million in the previous year, and repurchased shares worth $50 million, up from $25 million [11] Fiscal 2026 Outlook - For fiscal 2026, Tetra Tech anticipates net revenues in the range of $4.15-$4.30 billion, higher than the previous projection of $4.05-$4.25 billion, but lower than the $4.62 billion reported in fiscal 2025 [12] - Adjusted earnings are projected to be $1.46-$1.56 per share, compared to the previous guidance of $1.40-$1.55 [12] - For Q2 fiscal 2026, management estimates net revenues of $975 million-$1.025 billion and adjusted earnings of 30-33 cents per share [13]

Core Insights - Oshkosh reported revenue of $2.69 billion for the quarter ended December 2025, reflecting a 2.5% increase year-over-year and a 4.95% surprise over the Zacks Consensus Estimate of $2.56 billion. EPS was $2.26, down from $2.58 in the same quarter last year, resulting in a -3.18% surprise compared to the consensus estimate of $2.33 [1][2]. Revenue Performance - Total Vocational net sales were $922.4 million, compared to an average estimate of $1 billion, marking a year-over-year increase of 4.8% [4]. - Total Transport net sales reached $566.7 million, exceeding the estimated $531.97 million [4]. - Total Access net sales amounted to $1.17 billion, surpassing the average estimate of $981.37 million, with a year-over-year change of 1.3% [4]. - Corporate and other net sales were $28.1 million, above the estimated $24.77 million, reflecting a 5.2% increase year-over-year [4]. - Aerial work platforms within Access generated $548.6 million, exceeding the estimated $462.4 million, with a 0.6% year-over-year change [4]. - Other Access sales were $311.8 million, surpassing the estimated $245.27 million, showing a 7.7% increase year-over-year [4]. - Telehandlers within Access reported $311.2 million, below the estimated $272.9 million, with a -3.4% year-over-year change [4]. Operating Income - Adjusted Access segment operating income (non-GAAP) was $103 million, exceeding the average estimate of $80.58 million [4]. - Transport operating income was $22.8 million, below the average estimate of $29.76 million [4]. - Adjusted Vocational segment operating income (non-GAAP) was $149.6 million, lower than the average estimate of $168.96 million [4]. - Adjusted corporate and other operating loss (non-GAAP) was -$49.5 million, better than the average estimate of -$56.45 million [4]. Stock Performance - Oshkosh shares have returned +16.3% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.8% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3].

Core Viewpoint - Southwest Airlines shares experienced a significant increase following the release of fourth-quarter earnings, indicating positive market sentiment despite mixed results in revenue [1] Financial Performance - The airline reported fourth-quarter revenue of $7.44 billion, reflecting a year-over-year increase of 7.4%, although it fell short of the Street consensus estimate of $7.50 billion [1] - Fourth-quarter earnings per share (EPS) were reported at 58 cents, surpassing the Street estimate of 57 cents per share [1] Future Guidance - Southwest Airlines provided optimistic guidance for 2026, projecting first-quarter EPS of 45 cents or higher, compared to a Street estimate of 34 cents [2] - The full-year EPS guidance for 2026 is set at $4 or higher, significantly exceeding the Street estimate of $3.19, indicating a year-over-year improvement of over 300% [2] Management Insights - Executives indicated that 2026 is expected to be a year of margin expansion and higher earnings compared to 2025, with plans to maintain management headcount expenses at 2025 levels [3] - CEO Bob Jordan mentioned that there are currently no active aircraft requests for proposals in the market [4] Stock Performance - Southwest Airlines stock rose by 15.76% on Thursday, reaching an intraday high of $47.30, surpassing its previous 52-week high of $45.02 [5]

Microsoft Corp. (NASDAQ:MSFT) reported better-than-expected second-quarter financial results after market close on Wednesday.Microsoft reported second-quarter revenue of $81.3 billion, up 21% year-over-year. The total beat a Street consensus estimate of $80.25 billion, according to data from Benzinga Pro. The company reported non-GAAP earnings per share of $4.14, beating a Street consensus estimate of $3.86.“Microsoft Cloud revenue crossed $50 billion this quarter, reflecting the strong demand for our portf ...