ePlus (NasdaqGS:PLUS) Q3 2026 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsElaine Marion - CFOKley Parkhurst - Senior VPMark Marron - CEO and PresidentConference Call ParticipantsGreg Burns - AnalystMaggie Nolan - Research AnalystOperatorEarnings results conference call. As a reminder, this conference call is being recorded. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question-and-answer session. If you would like to ...

ePlus (NasdaqGS:PLUS) Q3 2026 Earnings call February 04, 2026 04:30 PM ET Speaker3Earnings results conference call. As a reminder, this conference call is being recorded. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star, then the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your questi ...

DA Davidson lowered the firm’s price target on Palantir (PLTR) to $180 from $215 and keeps a Neutral rating on the shares. The company reported an outstanding close to 2025 with revenue growth accelerating further due to relentless US demand for AI solutions, and Palantir remains well positioned to drive enterprise AI adoption and value as it maintains a rapid pace of innovation on the platform, the analyst tells investors in a research note. The firm adds however that with the after-hours advance, Palanti ...

Core Insights - Sandisk (SNDK) reported strong second-quarter fiscal 2026 results, with non-GAAP earnings of $6.20 per share, exceeding the Zacks Consensus Estimate by 75.14% [1][7] - Revenues increased significantly by 61.2% year over year and 31.1% sequentially to $3.03 billion, surpassing the Zacks Consensus Estimate by 13.49% [2][7] Revenue Breakdown - Datacenter revenues surged 76% year over year and 63.6% sequentially to $440 million, benefiting from strong adoption among AI infrastructure builders and technology companies [3] - Edge revenues rose 63.2% year over year and 21% sequentially to $1.68 billion, exceeding the Zacks Consensus Estimate by 10.61% [4] - Consumer revenues increased by 51.7% year over year and 39.1% sequentially to $907 million, also beating the Zacks Consensus Estimate by 17.95% [4] Margin Analysis - Gross margin improved to 51.1%, up from 32.5% in the year-ago quarter and 29.9% in the previous quarter [5] - Operating margin expanded to 32%, compared to 9.5% reported in the year-ago quarter and 24.1% in the previous quarter [5] Financial Position - As of January 2, 2026, Sandisk had cash and cash equivalents of $1.54 billion against long-term debt of $583 million [6] - Adjusted free cash flow for the second quarter was $843 million, a significant increase from $91 million in the year-ago quarter [6] Future Guidance - For Q3 fiscal 2026, Sandisk anticipates revenues between $4.4 billion and $4.8 billion, with gross margin expected in the 65%-67% range [7][8] - Earnings are projected to be between $12 per share and $14 per share [8]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Global Artificial Intelligence (AI) - **Key Players**: Hyperscalers including Microsoft, Meta Platforms, Alphabet, and Amazon Core Insights 1. **Enterprise AI Adoption**: - Enterprise AI adoption is accelerating, with production use-cases increasing by 3 percentage points to 24% in 4Q25, as per Citi's CIO survey. Testing use-cases remain higher at 36%, indicating significant future adoption potential [2][3] 2. **Return on Investment (ROI)**: - Enterprises are experiencing efficiency gains of 20-30% from AI deployments. A simplified scenario suggests that if annual AI spending is 10% of baseline costs, it could yield a 2-3x ROI over one year [3][4] - High user adoption rates (80%+) and substantial time savings (~67%) further underscore AI's value proposition, driving demand and revenue growth for hyperscalers [3] 3. **Cash-Returns-On-Cash-Invested (CROCI)**: - Despite rising capital expenditures (CapEx), CROCI remains resilient among U.S. hyperscalers. Investments in AI infrastructure are expected to yield long-term returns, similar to past cloud expansion cycles that established AWS, Azure, and Google Cloud as revenue drivers [4][8] - Future investments are anticipated to reaccelerate industry revenue and earnings growth through expanded revenue bases and economies of scale [4] 4. **Market Trends**: - The trend of increasing enterprise AI adoption is expected to continue, as indicated by Citi's 4Q25 CIO survey and Ramp's AI Index, which captures substantial corporate spending on AI solutions [1][2] - Hyperscaler revenues and CapEx are likely to be revised higher due to accelerating enterprise AI adoption and increased usage of large language models (LLMs) [1] Additional Insights 1. **Sector-Specific AI Adoption**: - The Ramp AI Index indicates varying adoption rates across sectors, with technology leading at 75%, followed by finance (62%) and manufacturing (47%) [31] 2. **Management Commentary**: - Recent earnings calls from various companies (e.g., Micron Technology, FedEx, Accenture) highlight the scaling of AI deployments and the integration of AI into business processes, emphasizing the transformative potential of AI across industries [18][20][22] 3. **Investment Outlook**: - Analysts expect upward revisions to current consensus estimates for U.S. hyperscalers as incremental AI capacity comes online, suggesting a positive outlook for revenue growth from 2025 onwards [4][16] 4. **Challenges and Considerations**: - The capital-intensive nature of AI infrastructure development raises concerns, but the long-term growth potential and market leadership opportunities are seen as justifying these investments [4][8] This summary encapsulates the key points discussed in the conference call, focusing on the accelerating adoption of AI, the tangible ROI from AI deployments, and the positive outlook for hyperscalers in the AI sector.

Some investors and tech industry analysts are worried about the possibility that the artificial intelligence (AI) industry is in a bubble. Major tech companies like Alphabet, Microsoft, and Meta Platforms are investing hundreds of billions of dollars to build data centers and infrastructure to support the AI software systems being developed. These highly profitable companies can afford to take some risks on AI investments, even if their buildouts don't pay off. But to see the full picture of a possible A ...

Core Insights - Advanced Micro Devices, Inc. (AMD) is recognized as one of the best quantum computing stocks to buy for 2026, particularly due to its strategic collaborations and investments in AI technology [1] Group 1: Strategic Collaborations - Tata Consultancy Services (TCS) has announced a strategic collaboration with AMD to enhance AI adoption, modernize legacy systems, and create secure digital workplaces [1][2] - Both companies plan to invest in talent to develop a pool of experts for co-innovating next-generation AI solutions [2] - Industry-specific GenAI frameworks are expected to be created for sectors such as life sciences, manufacturing, and banking, financial services, and insurance (BFSI) [2] Group 2: AI Performance Enhancements - The collaboration aims to deliver tailored accelerators, frameworks, and best practices to improve AI performance across training and inference workloads [3] - This initiative is designed to help companies fully leverage the capabilities of AI technology [3] Group 3: Data Center Lease - Riot has entered into a Data Center Lease with AMD to provide 25 MW of critical IT load capacity at the Rockdale Site, with an initial term of 10 years [3]

Core Insights - Leidos Holdings Inc. (LDOS) has announced a strategic partnership with OpenAI to implement advanced AI solutions for government and high assurance customers, focusing on enhancing efficiency and effectiveness in mission-critical environments [1][9] Company Strategy - The partnership aims to integrate OpenAI's generative and agentic AI capabilities into Leidos' core workflows across various markets, including digital modernization, health services, national security, infrastructure, and defense, aligning with Leidos' NorthStar 2030 growth strategy [2][3] Operational Impact - The collaboration will embed AI as a core capability within operational systems, enhancing complex knowledge-based activities such as threat analysis and supply-chain monitoring while ensuring high security and reliability standards for government and defense clients [3][4] Internal Efficiency - The use of OpenAI platforms is expected to improve Leidos' internal operations by enhancing automation, streamlining workflows, and accelerating product design and delivery, thereby increasing productivity and fostering innovation [4] Industry Trends - The AI market is rapidly expanding, driven by advancements in machine learning and computer vision, with a forecasted compound annual growth rate of over 41.95% for the global AI market from 2026 to 2031 [5][6]

Core Insights - Brand Engagement Network Inc. (BNAI) shares have increased significantly due to a new $2.050 million AI licensing partnership in Africa, enhancing its market position amidst mixed broader market performance [1] Group 1: Partnership Details - The partnership with Valio Technologies establishes an exclusive AI licensing framework for government and commercial markets across Africa, including a memorandum of understanding with Nelson Mandela University for a mental health support initiative [2] - The deal grants Brand Engagement Network a 25% common equity ownership in the new entity and a 35% revenue share across various offerings, along with an exclusive license for government and private-sector markets in Africa [3] Group 2: Market Performance - BNAI shares are currently trading 163.8% above their 20-day simple moving average (SMA) and 146.9% above their 100-day SMA, indicating strong short-term momentum [5] - The stock has increased 2.81% over the past 12 months and is closer to its 52-week highs than lows, with an RSI of 68.76 suggesting neutral territory [5] - The MACD is above its signal line, indicating bullish momentum, while the combination of neutral RSI and bullish MACD suggests mixed momentum [6] Group 3: Investment Sentiment - The stock carries a Buy Rating with an average price target of $6.00, reflecting positive investor sentiment [7] - The Benzinga Edge scorecard indicates a bullish momentum score of 89.44/100, suggesting that the stock is outperforming the broader market and may be a 'High-Flyer' setup [8] Group 4: Price Action - On Wednesday, BNAI shares were up 57.75% at $9.70, with key resistance identified at $10.50 [9]

Core Insights - IBM has shown significant stock performance in 2025, with shares rising 35%, outperforming the S&P 500, due to a renewed focus on hybrid cloud computing and enterprise AI [2][3] Group 1: Enterprise AI Momentum - The AI industry is rapidly evolving, with unprecedented capital investment in AI data centers, making it challenging to predict future winners [4] - IBM's strategy focuses on delivering tangible value to enterprise customers through AI solutions, rather than developing costly frontier AI models [5] - IBM has secured $9.5 billion in AI-related business, with 80% from consulting signings, and the AI consulting market is projected to grow from $8.75 billion in 2024 to $49.1 billion by 2032 [6] Group 2: Quantum Computing Potential - Quantum computing, while not yet commercially viable, has the potential to revolutionize the industry, with IBM aiming to demonstrate quantum advantage by the end of this year and deliver a fault-tolerant quantum computer by 2029 [8][10] - The quantum computing market is estimated to reach $97 billion by 2035, positioning IBM at the forefront of this long-term opportunity [11] Group 3: Reliable Dividend - IBM offers a reliable dividend, currently at $1.68 per share with a yield of approximately 2.2%, and has maintained continuous quarterly dividends since 1916 [12][13] - The stock is reasonably priced relative to free cash flow, with a forecasted free cash flow of $14 billion for 2025, resulting in a price-to-free cash flow ratio of about 20 [16] Group 4: Growth Prospects - While IBM is not classified as a growth stock, there is potential for free cash flow expansion in 2026 and beyond as the AI business grows, with quantum computing expected to become a significant revenue source [17]