Key Takeaways Synopsys' AI-based EDA tools are driving strong customer adoption and productivity gains.Acquisitions of ANSYS and Intrinsic ID expand SNPS' verification and security IP portfolio.SNPS shares are down 1.5% YTD, with fiscal 2025 earnings estimates revised downward.Synopsys’ (SNPS) AI-driven electronic design automation (EDA) tools like Synopsys.ai, Fusion Compiler, PrimeTime, IC Validator, and StarRC are being rapidly adopted as customers are experiencing massive productivity gains from their i ...

Core Insights - LinkedIn is becoming a significant growth driver for Microsoft, with a 9% year-over-year revenue increase in Q4 FY25, contributing to the Productivity & Business Processes segment [1][9] - The platform has reached 1.2 billion members, experiencing four consecutive years of double-digit growth, with engagement metrics such as comments and video uploads increasing by over 30% and 20% respectively [2][9] - Recent AI advancements, including the AI Hiring Assistant and new ad automation tools, are enhancing user experience and monetization potential [3][9] Revenue and Growth Projections - LinkedIn's product revenues are projected to grow by 11% in fiscal 2026 and 14% in fiscal 2027, indicating strong momentum [4] - The company anticipates high single-digit revenue growth in the near term, driven by productivity, hiring, and marketing solutions [2] Competitive Landscape - Meta Platforms competes with LinkedIn through its various platforms, leveraging a large user base and AI-driven ad targeting, with Family of Apps revenues increasing by 21.8% in Q2 2025 [5] - Alphabet challenges LinkedIn via Google Search, YouTube, and Google Ads, utilizing its data analytics and cross-platform reach to connect businesses and professionals [6] Stock Performance and Valuation - Microsoft shares have increased by 20.9% year-to-date, slightly outperforming the Zacks Computer – Software industry [7] - The forward 12-month Price/Sales ratio for Microsoft is 11.43X, compared to the industry's 8.61X, indicating a premium valuation [10] - The Zacks Consensus Estimate for Microsoft's fiscal 2026 earnings is $15.40 per share, reflecting a 12.90% year-over-year growth [13]

Core Insights - Oracle is planning a significant increase in capital expenditures, forecasting $35 billion for fiscal 2026, up from over $21 billion in fiscal 2025, to enhance its cloud infrastructure and solidify its global position [1][9] - The company aims to build 37 new multi-cloud data centers, increasing its total to 71 worldwide, to cater to the growing demand from enterprise clients and hyperscaler partners [2][9] - Oracle's cloud infrastructure revenue is projected to grow 77% this year to $18 billion, with long-term estimates reaching $144 billion by 2030 [2] Capital Expenditures and Financial Impact - The aggressive capital spending is expected to pressure free cash flow and margins, with a negative cash flow of $362 million reported in the first quarter of fiscal 2026 [3][9] - The Zacks model forecasts a continued negative free cash flow of $380.7 million throughout fiscal 2026, raising potential liquidity concerns if growth slows [3] Strategic Positioning and Market Competition - Oracle's capital expenditures are aimed at bolstering its AI and multi-cloud ecosystem, enhancing products like Fusion and NetSuite with AI capabilities [4] - The company faces stiff competition from Microsoft and Amazon, both of which are making substantial investments in AI and cloud infrastructure [5][6] Stock Performance and Valuation - Oracle's stock has increased by 78% year to date, outperforming the Zacks Computer and Technology sector's return of 24.4% and the Zacks Computer - Software industry's rise of 21.5% [7] - The current forward Price/Earnings ratio for Oracle is 39.66x, which is higher than the industry average of 33.53x, indicating that the stock may be overvalued [11] Earnings Estimates - The Zacks Consensus Estimate for Oracle's fiscal 2026 earnings is $6.76 per share, reflecting a 12.11% growth compared to fiscal 2025 [14]

Core Viewpoint - Salesforce.com (CRM) has shown a mixed performance in the stock market, with a recent increase in stock price but a decline over the past month compared to sector averages [1][2]. Financial Performance - Analysts expect Salesforce.com to report earnings of $2.85 per share, reflecting a year-over-year growth of 18.26% [2]. - The anticipated quarterly revenue is $10.26 billion, which represents an increase of 8.68% from the previous year [2]. - Full-year estimates project earnings of $11.35 per share and revenue of $41.21 billion, indicating year-over-year changes of +11.27% and +8.76%, respectively [3]. Analyst Estimates and Revisions - Recent revisions to analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating confidence in performance and profit potential [3][4]. - The Zacks Consensus EPS estimate has increased by 0.02% over the past month, and Salesforce.com currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Salesforce.com has a Forward P/E ratio of 21.19, which is lower than the industry average Forward P/E of 27.31, suggesting a valuation discount [6]. - The company's PEG ratio stands at 1.57, compared to the industry average PEG ratio of 2.09, indicating a more favorable growth valuation [6]. Industry Context - The Computer - Software industry, which includes Salesforce.com, ranks 94 in the Zacks Industry Rank, placing it in the top 39% of over 250 industries [7]. - Strong industry rankings correlate with performance, as the top 50% of rated industries tend to outperform the bottom half by a factor of 2 to 1 [7].

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Investors with an interest in Computer - Software stocks have likely encountered both Progress Software (PRGS) and Intuit (INTU) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revisio ...

Intuit (INTU) closed the most recent trading day at $682.91, moving -1.7% from the previous trading session. This move lagged the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.31%. The maker of TurboTax, QuickBooks and other accounting software's stock has climbed by 4.15% in the past month, falling short of the Computer and Technology sector's gain of 7.63% and outpacing the S&P 500's gain of 3.15%.The upcoming earnings release of In ...

Progress Software (PRGS) came out with quarterly earnings of $1.5 per share, beating the Zacks Consensus Estimate of $1.3 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +15.38%. A quarter ago, it was expected that this business software maker would post earnings of $1.3 per share when it actually produced earnings of $1.4, delivering a surprise of +7.69%.Over the last four quarter ...

Core Insights - Oracle is focusing on cloud expansion as a key driver for long-term growth, with OCI revenues increasing 55% year-over-year to $3.3 billion in Q1 FY26, contributing to overall cloud revenues of $7.2 billion, a 28% increase [1][9] - The company anticipates OCI revenues to grow 77% to $18 billion in FY26, with a long-term goal of reaching $144 billion in five years, supported by a substantial backlog of $455 billion in Remaining Performance Obligations from major AI contracts [1][2][9] Investment and Infrastructure - Oracle plans to invest $35 billion in capital expenditures during FY26 to establish 37 new multi-cloud data centers, aligning with the demand for AI workloads and enhancing its cloud service offerings [2][9] - The introduction of the Oracle AI Database, which integrates large language models, is expected to broaden Oracle's cloud capabilities [2] Competitive Landscape - Oracle faces competition from Microsoft Azure, which reported $47 billion in cloud revenues and a 39% growth rate, leveraging its integration with Microsoft products and hybrid-cloud strengths [5] - Google Cloud Platform (GCP) competes by excelling in data analytics and AI/ML technologies, although Oracle's OCI is noted for its database performance [6] Financial Performance and Valuation - Oracle's stock has increased by 84.5% year-to-date, outperforming the broader technology sector [7] - The Zacks Consensus Estimate projects Oracle's FY26 revenues at $66.75 billion, reflecting a 16.29% year-over-year growth, with earnings expected to rise to $6.75 per share [13]

Commvault Systems (CVLT) closed at $183.73 in the latest trading session, marking a -4.2% move from the prior day. This change lagged the S&P 500's 0.29% loss on the day. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.34%. Heading into today, shares of the data-management software company had gained 7.94% over the past month, lagging the Computer and Technology sector's gain of 8.98% and outpacing the S&P 500's gain of 3.08%.The investment community w ...