2Q25 Revenue: $1.13B, +24.1% YoY, beat estimates by $40M
2Q25 Non-GAAP EPS: $0.42, miss estimates by $0.10
3Q25 Guidance: Expect revenue to be between $1.13bn to $1.21bn; Expect adjusted gross margin to be in the low 40s%; Expect adjusted operating expenses to be between $370mn to $375mn.
FY25 Guidance: Expect revenue growth to be approx. 14%; Expect adjusted gross margin to be at the lower end of 42% to 44% range; Expect adjusted operating expense to be around an average of $360mn to $370mn per quarter.
Comment: While Ciena delivered strong revenue growth, earnings fell short of expectations, primarily due to higher-than-anticipated incentive-based compensation. Adjusted operating expenses reached $369 million, exceeding the company’s prior forecast of $355 million. Looking ahead, Ciena expects incentive compensation to continue rising in line with strong sales performance. The company also projects a decline in gross margin to 42–44% in the coming quarter, down from 50.4% in Q2 FY25. Despite sustained demand from cloud providers and AI infrastructure, Ciena may face headwinds from macroeconomic uncertainty, which could lead customers to reduce or delay capital expenditures. 3Q25recommended trading range: $65 to $85. Neutral Outlook.
2Q25 Revenue: $15.0B, +20.1% YoY, beat estimates by $30M
2Q25 Non-GAAP EPS: $1.58, beat estimates by $0.01
2Q25 Dividend: Broadcom declared $0.59/share quarterly dividend, in line with previous; Forward yield 0.91%; Payable June 30; for shareholders of record June 20; ex-div June 20.
3Q25 Guidance: Expect revenue to be $15.8bn, above consensus of $15.77bn; expects adjusted EBITDA to be at least 66% of projected revenue
Comment: Broadcom delivered better-than-expected results and guided 3Q25 revenue slightly above market expectations. In 2Q25, the semiconductor solutions segment generated $8.4bn in revenue, while the infrastructure software segment contributed $6.6bn. The company also began shipping its next-generation networking chip, Tomahawk 6, which is designed to accelerate AI workloads. The chip doubles the performance of its predecessor and significantly enhances data center network efficiency. Looking ahead, management expects AI semiconductor revenue to accelerate to $5.1bn in 3Q25, marking the tenth consecutive quarter of growth, driven by continued investment from hyperscale customers. Demand for AI chips is also projected to pick up further in the second half of 2026, fueled by strong inference-related needs. The market continues to view Broadcom favorably, supported by robust AI fundamentals and ongoing synergy and value creation in its software business. 3Q25recommended trading range: $240 to $280. Positive Outlook.
1Q26 Revenue: $763.65M, +7.6% YoY, beat estimates by $14.73M
1Q26 Non-GAAP EPS: $0.90, beat estimates by $0.09
2Q26 Guidance: Expect revenue to be between $777mn to $781mn, midpoint of $779mn above consensus of $775.58; Expect subscription revenue to be between $760mn to $764mn; Expect billings to be between $757mn to $767mn.
FY26 Guidance: Expect revenue to be between $3.15bn to $3.16bn, above consensus of $3.14; Expect subscription revenue of $3.08 to $3.08; Expect billings to be between $3.285bn to $3.339bn, compared to between $3.3bn to $3.354bn previously.
Comment: DocuSign delivered solid quarterly results, with subscription revenue rising 8% YoY to $746.2mn. However, professional services revenue declined 40% to $17.5mn. Total billings grew modestly by 4% to $739.6mn. The company ended the quarter with over 1.7mn customers and more than 1bn users globally. In 1Q26, DocuSign introduced several key product innovations. It launched Iris, an AI engine designed to streamline agreement workflows by enabling faster drafting, clearer commitments, and improved post-signature management. The company also unveiled Workspaces, a centralized hub that brings together agreements, participants, and supporting content. Additionally, enhancements to integrations with Salesforce and Microsoft Dynamics 365 were introduced to improve data flow between CRM platforms and DocuSign’s agreement tools. Going forward, while revenue guidance came in ahead of expectations, management lowered full-year FY26 billings guidance, raising concerns about the company’s near-term growth trajectory. 2Q26recommended trading range: $70 to $85. Neutral Outlook.
1Q25 Revenue: $2.37B, +7.2% YoY, in line with estimates
1Q25 GAAP EPS: $2.60, beat estimates by $0.01
2Q25 Guidance: Expect net revenue to be in the range of $2.535B to $2.560B, representing growth of 7% to 8%. Diluted earnings per share are expected to be in the range of $2.85 to $2.90 for the quarter. This assumes a tax rate of approximately 30%.
FY25 Guidance: Reaffirmed net revenue to be in the range of $11.15B to $11.30B, representing growth of 5% to 7%, or 7% to 8% excluding the 53rd week of 2024. Lowered expectations for diluted earnings per share to be in the range of $14.58 to $14.78 for the year. This assumes a tax rate of approximately 30%.
Comment: Lululemon reported first-quarter revenue of US$2.37bn, in line with estimates, and earnings per share of US$2.60, slightly ahead of expectations. However, the company issued softer than expected guidance for the current quarter and trimmed its full-year earnings outlook, raising investor concerns about its ability to sustain growth amid intensifying competition, evolving consumer preferences, and newly imposed tariffs. Sales declined in the Americas, with cautious U.S. consumer behaviour further challenging Lululemon’s 2025 growth ambitions. Elevated input costs, particularly from a projected 30% tariff on Chinese imports, are compressing margins and prompting modest price increases. While new product categories like running and golf apparel have shown early promise, they have yet to offset broader macroeconomic and competitive headwinds. Despite these near-term challenges, Lululemon remains focused on long-term brand resilience, product innovation, and global expansion. If supply chain disruptions ease and consumer confidence rebounds, the company’s diversified portfolio and international growth initiatives could help it regain momentum and drive sustainable growth beyond 2025. In the meantime, tariffs and cautious spending will continue to weigh on performance. 2Q25recommended trading range: $225 to $300. Negative Outlook.
1Q26 Revenue: $366.9M, +30.7% YoY, beat estimates by $15.46M
1Q26 Non-GAAP EPS: $0.11, beat estimates by $0.05
2Q26 Guidance: Expect revenue to be between $371M and $373M and non-GAAP net income per share of $0.06-$0.07.
FY26 Guidance: Expect revenue between $1.547B and $1.555B and non-GAAP net income per share of $0.39-$0.41.
Comment: Samsara reported a strong first quarter with US$1.54bn in revenue, a 31% YoY increase, driven by large enterprise wins and expanded multi-product adoption. The company is gaining momentum in key sectors such as transportation, construction, and public infrastructure, and continues to grow its base of high-value customers. Major new partnerships with organizations like 7-Eleven and Dallas Fort Worth Airport underscore its increasing relevance in digitizing physical operations for improved safety and efficiency. New AI-powered safety and maintenance features, including tools for driver coaching and predictive asset servicing, are delivering tangible results. For instance, a propane distributor saw a 75% drop in safety incidents, while Sterling Crane saved over US$3mn annually through reduced downtime and maintenance costs. Samsara is also scaling through integrations with major OEMs, Hyundai, Stellantis, and Rivian, allowing customers to connect assets directly to its platform without additional hardware. International markets contributed 18% of new business, with Europe seeing record growth. For FY2026, Samsara projects 24%-25% revenue growth and expects to maintain strong operating leverage, targeting a 13% non-GAAP operating margin and EPS of US$0.39-US$0.41. With deepening product adoption, growing global reach, and a focus on AI-driven operational intelligence, Samsara is well positioned for durable, efficient long-term growth. 2Q26recommended trading range: $40 to $50. Neutral Outlook.
