If there is one lesson from this week's earnings, it is that beating estimates no longer guarantees a higher stock. Wednesday night's reports from Tesla, Meta, Lam Research and IBM all had something to like, and all four were lower before Thursday's open. Investors are grading the biggest names on spending and guidance, not just on the quarter they just finished. Here's what each company reported, with links to the filings.
Tesla: less capex now, more later
Tesla reported third-quarter revenue of $28.05 billion, essentially flat from $28.10 billion a year earlier, according to its Q3 update. Automotive revenue was $20.56 billion, energy generation and storage revenue fell to $2.88 billion, and services and other revenue rose to $4.61 billion. GAAP net income was $787 million, or $0.22 a share, down from $1.37 billion, or $0.39, a year earlier. Non-GAAP earnings were $0.48 a share.
The cash flow surprised to the upside. Operating cash flow was $6.26 billion and free cash flow $1.53 billion, compared with the $4.92 billion cash burn analysts expected, according to LSEG data cited by Reuters. Quarterly capital spending of $4.73 billion came in well under the roughly $7.5 billion analysts had expected, and Tesla cut its full-year 2026 capex forecast to about $20 billion from more than $25 billion. CNBC noted Tesla blamed weaker auto results on lower average selling prices and tight battery supply. Tesla also said it started Robotaxi rides with Cybercabs in Austin on September 3 and produced its 10 millionth vehicle.
The stock was down about 3.6% premarket, per Reuters, as investors worried about the pace of AI and robotics investment and what a possible SpaceX merger means for Tesla shareholders.
Meta: record revenue and a new share class
Meta's third-quarter revenue rose 26% to $64.60 billion, according to its earnings release. Diluted EPS was $3.83, which includes a $9.89 billion charge tied to its settlement with state attorneys general over teen mental health litigation. Excluding that charge, EPS would have been $7.40. Capital expenditures were $34.91 billion in the quarter, and free cash flow was negative $2.12 billion.
Meta guided fourth-quarter revenue to $73 billion to $76 billion and narrowed 2026 capex to $135 billion to $145 billion. The bigger headline was structural: Meta will create a new non-voting Class C common stock, distributed as a dividend of one Class C share per existing share with an effective date of January 19, 2027. The Wall Street Journal reported it is effectively a 2-for-1 split that gives Meta a new way to raise capital for AI without changing Mark Zuckerberg's voting control. Shares were down about 2% premarket.
Lam Research: record quarter, unexciting guide
Lam Research reported fiscal first-quarter revenue of $8.22 billion, up 54% from a year earlier, with non-GAAP EPS of $2.20, according to its release. For the December quarter, Lam guided revenue of $8.60 billion, plus or minus $400 million, and non-GAAP EPS of $2.33, plus or minus $0.15. Investor's Business Daily reported the guide failed to impress, and the stock sank more than 7% premarket, dragging the chip-equipment group lower.
IBM: software outlook goes up, stock goes down
IBM's third-quarter revenue rose 5% to $17.1 billion, with software up 8% to $7.8 billion, per its results. Reuters reported IBM raised its annual software revenue outlook as previously delayed deals came back. Shares still fell 4.7% premarket.
Thursday morning: P&G, Lockheed, Comcast, Blackstone and American
- Procter & Gamble earned a core $2.00 a share on revenue of $23.3 billion, beating the $1.88 and $22.8 billion analysts expected, according to CNBC. Organic sales grew 4%, and P&G kept its fiscal 2027 core EPS guidance of $6.89 to $7.11 while raising all-in sales growth to 2% to 4% to reflect its Thorne acquisition (P&G). Shares rose more than 2% premarket.
- Lockheed Martin reported sales of $20.7 billion and earnings of $7.97 a share, with a record $292 billion backlog (Lockheed Martin).
- Comcast beat estimates with adjusted EPS of $1.07 on $29.3 billion of revenue, and Peacock was profitable again (CNBC).
- Blackstone posted GAAP net income of $1.3 billion and distributable earnings of $1.32 a share (Blackstone). Reuters said earnings fell from a year earlier and the stock slipped 1.4%.
- American Airlines set a revenue record of $16.3 billion but posted a GAAP loss of $269 million as fuel costs jumped (American Airlines), and Reuters said it now forecasts an annual loss.
Where Loomi fits
When good numbers lead to lower prices, the move usually shows up first in options. Implied volatility runs into a report, then collapses, and the stock's reaction depends on guidance more than the headline beat. Loomi's options scanner helps spot where implied moves look rich or cheap before a report, and the GEX regime view adds context on how dealer positioning might shape the day after. If you would rather not trade every print by hand, Loomi's automated strategies follow predefined rules, with track records on results and verification.
What's next
The AI spending debate now carries into next week's reports from the rest of the megacaps, along with the Federal Reserve meeting. For earlier reactions this week, see our recap of Netflix, SpaceX, AT&T and Danaher.
This article is for information only and is not financial advice.
— Rowan Ellery, Markets Editor, Loomi.Ai. Questions or corrections? See our research methodology.
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FAQ
What did Tesla report for Q3 2026?
Tesla reported revenue of $28.05 billion, GAAP EPS of $0.22, non-GAAP EPS of $0.48 and free cash flow of $1.53 billion, and cut its 2026 capital spending forecast to about $20 billion from more than $25 billion.
What is Meta's new Class C stock?
Meta will issue one non-voting Class C share for each existing Class A and Class B share, effective January 19, 2027. It works like a 2-for-1 split and gives Meta a way to raise capital without changing voting control.
Why did Lam Research stock fall after earnings?
Lam reported record revenue of $8.22 billion, but its December-quarter guide of $8.60 billion, plus or minus $400 million, only roughly matched expectations, and the stock fell more than 7% premarket.
Loomi.Ai provides educational market research, not financial advice. Nothing here is a recommendation to buy or sell any security. Trading stocks, futures and options involves substantial risk of loss. Estimates and schedules cited were current at publication and can change.
Sources
- Tesla Q3 2026 Update (Exhibit 99.1), Tesla (SEC)
- Tesla cuts spending before potential SpaceX deal, Reuters via MarketScreener
- Tesla Q3 2026 earnings report, CNBC
- Meta Reports Third Quarter 2026 Results, Meta
- Meta will split stock, create new class to fund AI spending, The Wall Street Journal
- Lam Research Q1 fiscal 2027 results (Exhibit 99.1), Lam Research (SEC)
- Lam Research falls as chip-gear maker's guide fails to impress, Investor's Business Daily
- IBM Releases Third-Quarter Results, IBM
- IBM raises annual software revenue outlook as deal delays ease, Reuters via Investing.com
- P&G Announces First Quarter Results for Fiscal Year 26/27, P&G
- Procter & Gamble earnings beat as sales rise 4%, CNBC
- Lockheed Martin Reports Third Quarter 2026 Financial Results, Lockheed Martin
- Comcast Q3 2026 earnings, CNBC
- Blackstone 3Q26 earnings press release, Blackstone
- American sets new revenue records amid historic fuel cost pressure, American Airlines
- Nasdaq futures sink as AI doubts resurface, oil jumps, Reuters via Investing.com