What we heard
Information Technology
Longtime CEO Shantanu Narayen will transition to executive chair in December, handing Adobe’s leadership to Anil Chakravarthy at a pivotal juncture in creative AI.
Oracle posted negative $5 billion in quarterly free cash flow as CapEx surged to $28 billion to build out cloud infrastructure.
Oracle signed $26 billion in new RPO largely structured as prepayments or bring-your-own-hardware deals that avoid incremental capital spending.
Consumer Discretionary
Copart is acquiring ACV, pushing the land-heavy salvage auction giant directly into asset-light, digital dealer-to-dealer wholesale.
Health Care
CooperCompanies terminated its strategic review and will retain CooperSurgical, arguing fertility litigation and a new IUD competitor temporarily depressed valuation.
Consumer Staples
Kroger warned that the Inflation Reduction Act drug pricing shifts and new GLP-1 formulary additions will create a 150-basis-point drag on sales in Q4.
In detail
Information Technology
Longtime CEO Shantanu Narayen will transition to executive chair in December, handing Adobe’s leadership to Anil Chakravarthy at a pivotal juncture in creative AI.
The leadership transition marks a formal shift at the top of the organization heading into the new fiscal period. With Chakravarthy stepping in as chief executive and taking a seat on the board of directors, the company sets its governance and managerial structure under new day-to-day oversight starting December 1st. The significance of the handover will depend on how the upcoming executive structure executes ongoing strategic priorities and whether the operational continuity under the incoming board member alters the company’s broader business trajectory over subsequent quarters.
I am delighted that Anil S. Chakravarthy will become Adobe’s next president and chief executive officer and join the board of directors. Effective December 1st.
ADBE — Shantanu Narayen, Chair and CEO (FY2026-Q3) — read it in the call
Oracle posted negative $5 billion in quarterly free cash flow as CapEx surged to $28 billion to build out cloud infrastructure.
A massive expansion in capital spending has driven quarterly cash generation deep into the red, reflecting the sheer scale of current deployment. Even after accounting for upfront prepayments, net cash outlays reached eighteen billion dollars, demonstrating the financial demands placed on the balance sheet during this deployment cycle. The significance of this cash drain depends on whether these aggressive capital investments yield sufficient returns to restore positive cash flow in upcoming periods, or if elevated capital requirements will continue to strain liquidity while infrastructure buildouts remain at peak intensity.
Our CapEx for the quarter was $28 billion leading to negative free cash flow of $5 billion. And our net cash CapEx, so net of pre was $18 billion for the quarter.
ORCL — Hilary Barbara Maxson, chief financial officer (FY2027-Q1) — read it in the call
Oracle signed $26 billion in new RPO largely structured as prepayments or bring-your-own-hardware deals that avoid incremental capital spending.
Securing substantial future commitments without taking on corresponding capital obligations offers a path to expand revenue backlogs without intensifying balance-sheet strain. By structuring the vast majority of newly added contract value around customer prepayments or client-supplied hardware mechanisms, the business secures long-term revenue streams while sheltering itself from extra capital outlays. The long-term durability of this approach will depend on whether enterprise clients continue accepting these capital-light contract structures and how efficiently the company can convert this growing backlog into recognized revenue without sacrificing operational margins over time.
our remaining performance obligations or RPO increased $26 billion from Q4. There are 2 things happening here. First, we continued to grow our RPO during the quarter to support future revenues, and the vast majority of those new contracts were via prepay or bring your own hardware or a similar mechanic so will not require incremental capital from Oracle.
ORCL — Hilary Barbara Maxson, chief financial officer (FY2027-Q1) — read it in the call
Consumer Discretionary
Copart is acquiring ACV, pushing the land-heavy salvage auction giant directly into asset-light, digital dealer-to-dealer wholesale.
The deal brings a massive digital footprint into the fold without requiring substantial real estate investments. Adding an operation that transacts over eight hundred thousand units annually expands the transaction base across nationwide automotive markets, shifting the operational footprint toward an infrastructure-free model. The true impact of the acquisition will hinge on how effectively the combined organization integrates this high-volume digital marketplace alongside existing channels, and whether absorbing a large-scale platform operating without physical acreage meaningfully enhances overall vehicle throughput and marketplace efficiency going forward.
We have agreed to acquire ACV. 1 of the largest primarily digital automotive marketplaces in the country. ACV sells more than 800 thousand vehicles, each year, and importantly, operates with virtually no land of its own.
CPRT — A. Jayson Adair, CEO and executive chairman (FY2026-Q4) — read it in the call
Health Care
CooperCompanies terminated its strategic review and will retain CooperSurgical, arguing fertility litigation and a new IUD competitor temporarily depressed valuation.
The decision to end the formal assessment keeps the surgical division within the corporate fold despite active buyout talks with multiple prospective suitors. Management concluded that holding the asset provides superior long-term shareholder value after external headwinds, including market entry from a non-hormonal competitor, dampened pricing during final negotiations. The wisdom of retaining the business will turn on whether these valuation pressures prove genuinely short-lived and whether the division can regain operational momentum, or if persistent market competition will permanently validate the lower price bids received during the evaluation process.
the Board has concluded the strategic review. As part of the process, we conducted a thorough assessment of CooperSurgical, including a potential sale of the business, where we received significant interest and engaged with numerous parties. Ultimately, however, the Board unanimously determined that shareholders are better served by continued ownership than by pursuing a transaction at this time. The Board and our advisers believe several temporary factors influenced valuations late in the process, including developments related to a competitive entrant in the non-hormonal IUD market and the i
COO — Albert White, President and Chief Executive Officer (FY2026-Q3) — read it in the call
Consumer Staples
Kroger warned that Inflation Reduction Act drug pricing shifts and new GLP-1 formulary additions will create a 150-basis-point drag on sales in Q4.
Upcoming legislative and formulary adjustments are poised to noticeably dampen underlying identical sales performance heading into the final quarter. The anticipated drag stems directly from pricing modifications tied to federal healthcare policy alongside the January inclusion of expensive treatments such as GLP-1 medications. How significantly this headwind alters full-year results will depend on whether pharmacy customer volume can compensate for mandated price shifts, and whether subsequent quarters see further formulary additions that compound top-line pressure or if identical store metrics stabilize once the January adjustments are fully absorbed.
We expect additional sales headwinds in the fourth quarter, the identical sales without fuel impact from the Inflation Reduction Act is projected to accelerate to approximately 150 basis points as new high cost drugs including GLP-1s, are added to the formulary in January.
KR — David John Christopher Kennerley, Chief Financial Officer (FY2026-Q2) — read it in the call
Coming up
2026-09-30 · MICRON TECHNOLOGY INC (MU) — Look for HBM (high bandwidth memory) revenue ramp, pricing momentum across DRAM/NAND, and gross margin guidance.
2026-09-24 · COSTCO WHOLESALE CORP /NEW (COST) — Look for membership fee renewal rates following recent increases, e-commerce growth, and discretionary general merchandise demand.
2026-10-01 · Accenture plc (ACN) — Look for generative AI bookings growth, recovery in discretionary consulting spend, and full-year FY27 guidance.
2026-09-23 · CINTAS CORP (CTAS) — Look for organic revenue growth across Uniform Rental and First Aid segments alongside operating margin expansion. — our analysis
2026-10-01 · NIKE, Inc. (NKE) — Look for progress on product innovation and lifecycle resets, wholesale channel re-engagement, and Greater China sales trends.
2026-09-22 · AUTOZONE INC (AZO) — Look for same-store sales performance between Commercial (B2B) and DIY segments, as well as gross margin resilience. — our analysis
2026-09-23 · PAYCHEX INC (PAYX) — Look for small-business client retention and hiring trends, HR Solutions growth, and interest earned on client funds. — our analysis
2026-09-30 · JABIL INC (JBL) — Look for demand trends across cloud and AI data center infrastructure versus legacy automotive and industrial exposure. — our analysis
2026-09-29 · Carnival Corp Ltd. (CCL) — Look for net cruise yield growth, advance booking volumes and pricing for future quarters, and pace of debt paydown. — our analysis
2026-09-24 · DARDEN RESTAURANTS INC (DRI) — Look for same-restaurant guest traffic trends at Olive Garden and LongHorn Steakhouse amid macro consumer pressure. — our analysis
2026-09-23 · GENERAL MILLS INC (GIS) — Look for organic volume recovery versus promotional discounting in North America Retail and Pet segments. — our analysis
2026-10-01 · MCCORMICK & CO INC (MKC) — Look for volume trends in the Consumer segment versus Flavor Solutions and gross margin expansion from cost-savings initiatives. — our analysis
2026-09-30 · FACTSET RESEARCH SYSTEMS INC (FDS) — Look for Annual Subscription Value (ASV) growth, client retention amid financial sector cost controls, and AI product monetization. — our analysis
Companies that reported this period
7 earnings calls held between 2026-09-05 and 2026-09-19.
2026-09-09 · CASEYS GENERAL STORES INC (CASY) — FY2027-Q1
2026-09-09 · COOPER COMPANIES, INC. (COO) — FY2026-Q3
2026-09-10 · ADOBE INC. (ADBE) — FY2026-Q3
2026-09-10 · COPART INC (CPRT) — FY2026-Q4
2026-09-10 · ORACLE CORP (ORCL) — FY2027-Q1
2026-09-11 · KROGER CO (KR) — FY2026-Q2
2026-09-17 · LENNAR CORP /NEW/ (LEN) — FY2026-Q3