Financial Performance - Q2 FY26 - Revenue reached $10.2 billion, a 10% year-over-year increase, or 9% in constant currency[13] - Subscription & Support Revenue totaled $9.7 billion, up 11% year-over-year, or 9% in constant currency[13] - Current Remaining Performance Obligation (cRPO) was $29.4 billion, reflecting an 11% year-over-year increase, or 10% in constant currency[13] - GAAP Operating Margin was 22.8%, while Non-GAAP Operating Margin was 34.3%[13] - Operating Cash Flow was $740 million and Free Cash Flow was $605 million[13] Capital Allocation - $2.6 billion was returned to shareholders in Q2 FY26, including $2.2 billion in share repurchases and $399 million in dividends[13, 19] - The company has repurchased $24.3 billion of shares since the inception of the repurchase program, out of a total authorized $50 billion[19] - A $20 billion increase to the share repurchase program brings the total authorized amount to $50 billion[20] FY26 Guidance - Revenue guidance is maintained at $41.1 billion - $41.3 billion, representing 8.5% - 9% year-over-year growth[21] - Non-GAAP Operating Margin guidance is increased to 34.1%[21, 45] - Non-GAAP Diluted EPS guidance is raised to $11.33 - $11.37[21] Q3 FY26 Guidance - Revenue is projected to be $10.24 billion - $10.29 billion, an 8% - 9% year-over-year increase[23]

Core Viewpoint - The recommendation to rotate investments from Tesla and Apple to Broadcom and Oracle is based on the current volatile tech landscape, with concerns over growth potential for the former and opportunities for the latter [1][20]. Tesla - Tesla faces increasing competition, particularly from Chinese companies like BYD and NIO, as well as legacy automakers ramping up electric vehicle production, leading to a global price war [4]. - The company's first-mover advantage is diminishing, and there are concerns regarding its leadership and profit margins, with skepticism about Elon Musk's long-term strategies in robotics and autonomous driving [5]. - Tesla's stock is currently priced at $321.67, with a P/E ratio of 176.74 and a price target of $300.19 [3]. Apple - Apple is experiencing stagnant growth in its iPhone product line, with a reported 6% year-over-year decline in iPhone sales, contributing to a 16.9% drop in share price in 2025 [9]. - The company has vulnerabilities related to its supply chain, particularly due to its reliance on China, which could be negatively impacted by ongoing tariff wars [8]. - Despite a 12% growth in its App Store, the overall outlook for Apple remains cautious, with a current stock price of $210.16 and a P/E ratio of 32.74 [10][8]. Broadcom - Broadcom is well-positioned to benefit from the demand for customized chips, particularly those optimized for AI applications, which are crucial for tech giants like Amazon and Microsoft [12][13]. - The company's stock has surged 76% over the past three months, supported by a strong balance sheet and anticipated sales revenue of $65 billion in 2025, with expected earnings per share growth of 25% annually through 2027 [14]. - Analysts have a consensus Buy rating for Broadcom, reflecting confidence in its financial health and AI positioning [15]. Oracle - Oracle's stock has increased by 90% over the past three months, driven by new cloud service agreements expected to generate over $30 billion by 2028 [17]. - The company is a key player in the AI data center consortium, which is part of a significant government initiative, and is expected to benefit from favorable tax considerations in recent legislation [18]. - Analysts have given Oracle a Moderate Buy rating, with a consensus target price of $211 and a dividend yield of 0.83% [19].

Financial Highlights - Q1 FY26 revenue reached $9.8 billion, an increase of 8% year-over-year (Y/Y) and 8% in constant currency (CC)[17] - Subscription & Support revenue was $9.3 billion, up 8% Y/Y and 9% Y/Y CC[23] - Remaining Performance Obligation(cRPO) grew by 12% Y/Y and 11% Y/Y CC to $29.6 billion[23] - Q1 FY26 operating cash flow was $6.5 billion and free cash flow was $6.3 billion[17, 23] - The company returned $3.1 billion to shareholders through $2.7 billion in share repurchases and $402 million in dividends[23] Profitability and Margin - GAAP operating margin for Q1 FY26 was 19.8%, an expansion of 110 basis points (bps) Y/Y[23, 25] - Non-GAAP operating margin for Q1 FY26 was 32.3%, an expansion of 20 bps Y/Y[23, 25] - The company is targeting a non-GAAP operating margin of 34% for FY26[17, 26, 27] Guidance - FY26 total revenue is projected to be between $41.0 billion and $41.3 billion, representing 8%-9% Y/Y growth[17, 27] - Q2 FY26 revenue is expected to be between $10.11 billion and $10.16 billion, representing 8%-9% Y/Y growth[28] - FY26 GAAP diluted EPS is expected to be $7.15 - $7.21 and Non-GAAP diluted EPS is expected to be $11.27 - $11.33[27] Key Growth Areas - Data Cloud + AI annual recurring revenue (ARR) exceeded $1 billion, with a growth rate of over 120% Y/Y[17, 35]