Core Insights - Workday reported $2.35 billion in revenue for the quarter ended July 2025, marking a year-over-year increase of 12.6% and exceeding the Zacks Consensus Estimate by 0.35% [1] - The earnings per share (EPS) for the same period was $2.21, up from $1.75 a year ago, representing a surprise of 5.74% over the consensus estimate of $2.09 [1] Financial Performance Metrics - Subscription revenue backlog stood at $25.37 billion, below the average estimate of $26.48 billion [4] - Subscription services revenue was reported at $2.17 billion, slightly above the average estimate of $2.16 billion, reflecting a year-over-year increase of 14% [4] - Professional services revenue was $179 million, slightly below the average estimate of $180.17 million, indicating a year-over-year decline of 1.7% [4] Stock Performance - Workday's shares have returned -5.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

In its upcoming report, Workday (WDAY) is predicted by Wall Street analysts to post quarterly earnings of $2.09 per share, reflecting an increase of 19.4% compared to the same period last year. Revenues are forecasted to be $2.34 billion, representing a year-over-year increase of 12.2%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over th ...

Core Insights - Toast (TOST) reported revenue of $1.55 billion for the quarter ended June 2025, reflecting a year-over-year increase of 24.8% and a surprise of +1.1% over the Zacks Consensus Estimate of $1.53 billion [1] - The company's EPS for the quarter was $0.24, compared to $0.02 in the same quarter last year, aligning with the consensus EPS estimate [1] Financial Performance Metrics - Gross Payment Volume (GPV) reached $49.90 billion, exceeding the four-analyst average estimate of $49.05 billion [4] - Subscription Annualized Recurring Run-Rate was $950 million, slightly above the average estimate of $945.59 million [4] - Total Annualized Recurring Run-Rate (ARR) stood at $1.93 billion, compared to the $1.9 billion average estimate [4] - Revenue from Financial Technology Solutions was $1.28 billion, surpassing the average estimate of $1.26 billion [4] - Revenue from Subscription Services was $227 million, compared to the average estimate of $221.09 million [4] - Revenue from Hardware and Professional Services was $47 million, below the average estimate of $51.74 million [4] Stock Performance - Toast's shares have returned +10% over the past month, outperforming the Zacks S&P 500 composite's +1% 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 - Amazon reported $167.7 billion in revenue for Q2 2025, a 13.3% year-over-year increase, with an EPS of $1.68 compared to $1.23 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company demonstrated strong performance across various segments, with notable year-over-year growth in subscription services, AWS, and advertising services [4] Financial Performance - Revenue of $167.7 billion, surpassing the Zacks Consensus Estimate of $162.31 billion by 3.32% [1] - EPS of $1.68, exceeding the consensus estimate of $1.33 by 26.32% [1] - Year-over-year revenue growth of 13.3% [1] Segment Performance - Subscription services: $12.21 billion, up 12.4% year-over-year, exceeding the average estimate of $11.91 billion [4] - AWS: $30.87 billion, a 17.5% increase year-over-year, compared to the average estimate of $30.66 billion [4] - Advertising services: $15.69 billion, a 22.9% year-over-year increase, surpassing the average estimate of $14.9 billion [4] - Third-party seller services: $40.35 billion, an 11.5% increase year-over-year, exceeding the average estimate of $38.93 billion [4] - International sales: $36.76 billion, a 16.1% increase year-over-year, compared to the average estimate of $33.87 billion [4] - North America sales: $100.07 billion, an 11.2% increase year-over-year, exceeding the average estimate of $97.82 billion [4] Stock Performance - Amazon shares returned +4.7% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Apple and Costco have generated similar investment returns over the past decade, becoming two of the world's largest companies by market cap [1] - Both companies are expected to continue being long-term winners, but investors should be cautious about the price at which they buy [2] Company Overview - Apple is a leading smartphone and personal electronics company with over 2.35 billion active iOS users globally, while Costco is a membership-only warehouse retailer with a diverse range of goods [4] - Both companies have established core businesses but are experiencing slower growth rates; Apple is expanding its user base and subscription services, with service revenue reaching nearly $53 billion in the first half of the year, up 12.7% year over year [5] - Costco's growth is driven by membership increases, with paid memberships rising by 6.8% year over year to 79.6 million; membership dues are a significant profit contributor [6] Performance Comparison - Over the past decade, both companies have shown remarkably similar stock performance, with annualized returns that have significantly outperformed the S&P 500 [7] - Both companies offer small dividends, with Apple increasing its dividend for 12 consecutive years and Costco for 20 years; their dividend yields are around 0.4% to 0.5%, with Costco occasionally providing special dividends [9] Future Growth Prospects - Analysts project Apple to grow earnings at an average of 10.6% annually, compared to about 9% for Costco [6] - Apple faces challenges in integrating AI features into its devices, but its loyal user base and sticky ecosystem provide some resilience; despite this, Apple is considered the better stock to buy now [10][11] - Costco's stock price has expanded faster than its profits, leading to a high P/E ratio of nearly 54, which is deemed excessive given its expected 9% earnings growth [12] - Apple, with a P/E ratio of 33, is viewed as more attractive if it achieves double-digit earnings growth, bolstered by significant stock repurchases [13]

Group 1 - ServiceNow reported $3.22 billion in revenue for the quarter ended June 2025, a year-over-year increase of 22.4% [1] - The EPS for the same period was $4.09, compared to $3.13 a year ago, indicating a significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.12 billion, resulting in a surprise of +3.02% [1] Group 2 - The company delivered an EPS surprise of +15.54%, with the consensus EPS estimate being $3.54 [1] - Current Remaining Performance Obligations (cRPO) were $10.92 billion, surpassing the $10.48 billion average estimate [4] - Remaining Performance Obligations (RPO) totaled $23.90 billion, compared to the $22.11 billion average estimate [4] Group 3 - Revenues from Professional services and other reached $102 million, exceeding the $88.78 million estimated by analysts [4] - Subscription revenues were $3.11 billion, compared to the $3.03 billion estimated by analysts, reflecting a +22.5% change year-over-year [4] - Gross Profit (Non-GAAP) from Subscription was $2.59 billion, slightly above the $2.53 billion estimated by analysts [4]

Core Insights - ServiceNow reported strong second-quarter results, leading to a 7% increase in shares following the announcement [1] - The company raised its full-year subscription revenue guidance to between $12.775 billion and $12.795 billion, driven by the adoption of artificial intelligence [2] - Net income increased by 47% to $385 million, or $1.84 per share, compared to $262 million, or $1.26 per share a year ago [2] Financial Performance - Subscription revenues reached $3.11 billion, exceeding the forecast of $3.03 billion [1] - Total revenues grew nearly 23% to approximately $3.22 billion, surpassing the expected $3.12 billion [3] - Adjusted earnings per share were $4.09, compared to the expected $3.57 [3]

Core Insights - Pegasystems reported revenue of $384.51 million for the quarter ended June 2025, reflecting a year-over-year increase of 9.5% and surpassing the Zacks Consensus Estimate by 4.27% [1] - The company's EPS for the quarter was $0.28, up from $0.26 in the same quarter last year, exceeding the consensus estimate of $0.24 by 16.67% [1] Revenue Breakdown - Subscription services revenue was $246.01 million, below the average estimate of $251.35 million, but showed a year-over-year increase of 14.7% [4] - Subscription license revenue reached $79.96 million, exceeding the average estimate of $53.75 million, but represented a decline of 5.5% compared to the previous year [4] - Total subscription revenue was $325.98 million, surpassing the average estimate of $305.08 million, with a year-over-year growth of 9% [4] - Perpetual license revenue was reported at $0.71 million, significantly higher than the average estimate of $0.07 million, marking a year-over-year increase of 1875% [4] - Maintenance revenue was $79.27 million, falling short of the average estimate of $106.67 million [4] - Consulting revenue was $57.82 million, slightly above the average estimate of $54.62 million, with an 11.1% increase year-over-year [4] - Pega Cloud revenue was $166.74 million, below the average estimate of $172.96 million [4] Stock Performance - Pegasystems' shares have returned +2.8% over the past month, compared to a +5.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - ServiceNow (NOW) is expected to report quarterly earnings of $3.54 per share, a 13.1% increase year-over-year, with revenues projected at $3.12 billion, reflecting an 18.8% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.4% in the last 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Professional services and other' to reach $88.78 million, a 4.5% year-over-year increase [5]. - 'Revenues- Subscription' is projected to be $3.03 billion, indicating a 19.3% year-over-year growth [5]. - 'Current Remaining Performance Obligations (cRPO) - GAAP' is expected to be $10.48 billion, up from $8.78 billion a year ago [5]. - 'Remaining Performance Obligations (RPO) - GAAP' is estimated at $22.11 billion, compared to $18.60 billion from the previous year [6]. Profitability Metrics - 'Gross Profit (Non-GAAP)- Subscription' is anticipated to be $2.53 billion, an increase from $2.16 billion in the same quarter last year [6]. - 'Gross Profit (Non-GAAP)- Professional services and other' is projected at $9.05 million, down from $14.00 million year-over-year [7]. Stock Performance - ServiceNow shares have decreased by 2.3% over the past month, contrasting with a 5.4% increase in the Zacks S&P 500 composite [7].

Core Insights - CrowdStrike Holdings (CRWD) reported $1.1 billion in revenue for the quarter ended April 2025, marking a year-over-year increase of 19.8% and an EPS of $0.73, down from $0.93 a year ago [1] - The revenue was slightly below the Zacks Consensus Estimate by -0.10%, while the EPS exceeded the consensus estimate by +10.61% [1] Financial Performance Metrics - Annual recurring revenue (ARR) reached $4,435.6 million, surpassing the seven-analyst average estimate of $4,414.2 million [4] - Remaining Performance Obligations (RPO) stood at $6.8 billion, exceeding the $6.07 billion average estimate from two analysts [4] - Subscription revenue was reported at $1.05 billion, matching the 13-analyst average estimate and reflecting a year-over-year increase of +20.5% [4] - Professional services revenue was $52.67 million, above the $49.90 million estimate from 13 analysts, representing a +7.8% change year-over-year [4] - Non-GAAP subscription gross profit was $840.77 million, slightly below the nine-analyst average estimate of $843.70 million [4] - Non-GAAP professional services gross profit was $16.37 million, compared to the $17.71 million estimate from nine analysts [4] - GAAP professional services gross profit was $5.90 million, below the five-analyst average estimate of $9.07 million [4] - GAAP subscription gross profit was reported at $808.39 million, compared to the $823.81 million average estimate from five analysts [4] Stock Performance - CrowdStrike shares have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +4.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]