Earnings Season Global: Beats, Misses and Guidance — 2026-10-23
Q3 2026 earnings season has seen a divergence between headline beats and stock performance, with 84% of reporting S&P 500 companies beating EPS estimates but guidance revisions driving market reactions. Meta and SAP posted strong results driven by AI and cloud growth, while General Motors announced a massive $20 billion buyback despite tightening its profit outlook. In Europe, Deutsche Börse raised its 2026 guidance, and in Japan, industrial firms like Fanuc issued upward revisions to operating profit forecasts.
Earnings Season Global: Beats, Misses and Guidance — 2026-10-23
Top developments
Meta Beats Estimates as AI Push Lifts Shares
Meta Platforms reported Q3 2026 revenue of $64.6 billion, a 26.1% year-over-year increase that surpassed Wall Street expectations. The company guided for Q4 2026 total revenue between $73 billion and $76 billion, with the midpoint exceeding analyst forecasts by 1.2%. Investors reacted positively to the AI-driven efficiency gains and revenue scaling, lifting shares following the announcement.

GM Announces $20 Billion Buyback and Tightens Outlook
General Motors posted Q3 2026 revenue of $50.0 billion, up from $48.6 billion a year earlier, with net income of $3.3 billion. The company’s board approved a new multiyear share buyback authorization valued at $20 billion with no expiration date. Despite beating quarterly estimates, GM narrowed its full-year 2026 earnings guidance while raising free cash flow expectations, reflecting a cautious stance on automotive profitability.

SAP Tops Estimates with Accelerating Cloud Growth
German software giant SAP reported Q3 2026 results that exceeded analyst expectations, driven by accelerating cloud business growth. The company stated it now expects to lend towards the upper end of its previously guided range for 2026 cloud and software revenue. SAP reaffirmed its guidance for current cloud backlog, operating profit, and free cash flow, signaling confidence in its long-term trajectory.

Deutsche Börse Raises 2026 Guidance on Higher Interest Rates
Deutsche Börse lifted its full-year 2026 profit guidance following a strong third quarter, citing benefits from higher interest rates and robust market activity. The DAX-listed exchange operator’s stock recovered from early losses to trade higher as the market absorbed the positive forecast revision. This move highlights the continued sensitivity of financial market infrastructure players to macroeconomic conditions.

IBM Beats Revenue Estimates but Stock Slips
IBM reported Q3 2026 earnings that beat both revenue and EPS expectations, yet its stock declined in after-hours trading. The company raised its full-year free cash flow outlook to growth of more than $1 billion while maintaining its 4%-5% revenue growth forecast. The mixed reaction suggests investors are weighing the quality of the beat against broader tech sector pressures.

Local view
Japan: Fanuc Revises Operating Profit Upward
Japanese industrial automation leader Fanuc (6954) raised its full-year operating profit forecast by 14%, reflecting strong demand in its sector. This upward revision was highlighted in local financial news as a key signal for the Japanese market, which is currently experiencing a rush of positive guidance updates from exporters and manufacturers.
Germany: Analysts React to SAP's Performance
Following SAP's Q3 results, German financial outlet wallstreetONLINE reported that analysts largely view the company as "on track." The consensus among experts is that the DAX heavyweight’s cloud growth trajectory supports its current valuation, despite broader market volatility in the tech sector.
Korea: Samsung Faces Selloff Despite Record Forecast
While Samsung Electronics forecasted a record third-quarter operating profit, the stock experienced a 7.39% selloff. Local investment insights suggest this reaction was driven by concerns over memory competition and a potential demand gap, separating the headline profit forecast from underlying margin pressures.
Context & numbers
S&P 500 Beat Rates Remain High
As of mid-October 2026, 84% of the S&P 500 companies that have reported Q3 results have beaten EPS estimates. This rate is above the 5-year average of 78% and the 10-year average of 77%. However, the aggregate earnings surprise is 2.6% above estimates, indicating that while beats are common, the magnitude of the outperformance is moderating.
TSMC Posts Sixth Consecutive Record Profit
Taiwan Semiconductor Manufacturing Company (TSMC) reported its sixth consecutive record profit quarter for Q3 2026, beating estimates on the back of the AI boom. Despite the strong results and raised full-year growth outlook, the stock has faced pressure, returning to trading levels seen a month prior as investors weigh management's prudent stance on 2027 planning.

On the radar
- Major Cloud Firms Reporting Next Week: Charles Schwab notes that major cloud firms are set to report in the coming week, with AI shares currently under pressure ahead of these key data points.
- Equifax Guidance Miss: Equifax reported Q3 2026 revenue in line with expectations but issued quarterly revenue guidance that missed forecasts, potentially signaling softening demand in the credit data sector.
- European Earnings Calendar: Investing.com highlights that eleven major quarterly reports, along with Fed and ECB policy decisions, are due in the next week, which could significantly impact European market direction.
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