17 out of 18 Information Technology stocks deliver EPS wins this week: Earnings Scorecard

Information technology stocks grabbed the spotlight this week as Wall Street digested earnings reports from companies including Palantir Technologies (PLTR [https://seekingalpha.com/symbol/PLTR]), Advanced Micro Devices (AMD [https://seekingalpha.com/symbol/AMD]) and QUALCOMM (QCOM [https://seekingalpha.com/symbol/QCOM]) among others.

The Information Technology sector (XLK [https://seekingalpha.com/symbol/XLK]) has gained over 24% so far this year, outperforming over 16% increase in the broader S&P 500 Index.

In this week's earnings recap, 18 tickers reported results, out of which 17 companies exceeded EPS expectations, while one slipped below expectations. On the revenue front, 16 out of 18 companies beat revenue estimates.

Below are the latest quarterly reports from some of the key players that reported results this week:

AMD (AMD [https://seekingalpha.com/symbol/AMD]) reported [https://seekingalpha.com/news/4514685-amd-ticks-up-as-q3-results-guidance-top-estimates]third-quarter results and guidance that came in above Wall Street's forecast.

For the period ending Sept. 27, the Dr. Lisa Su-led AMD earned an adjusted $1.20 per share as revenue rose 36% year-over-year to come in at $9.25B. Data Center revenue rose 22% year-over-year to $4.34B, aided by its MI300 AI accelerator and its Instinct and EPYC processors. Analysts were anticipating $4.14B in Data Center revenue.

Looking ahead, AMD said it expects fourth-quarter sales to be between $9.3B and $9.9B, with the mid-point of $9.6B above the $9.21B consensus. Adjusted gross margin is expected to be 54.5%. AMD added its outlook does not include any impact of potential sales of its MI308 shipments to China.

Shares of Palantir Technologies (PLTR [https://seekingalpha.com/symbol/PLTR]) fell [https://seekingalpha.com/news/4514018-palantir-stock-tumbles-despite-q3-beat-as-analysts-mull-valuation] on Tuesday, despite third quarter results beating estimates and the company raising its full-year guidance.

The company, which has seen its stock surge about 174% year-to-date, expects fourth quarter revenue [https://seekingalpha.com/news/4513543-palantir-non-gaap-eps-of-0_21-beats-by-0_04-revenue-of-1_18b-beats-by-90m#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] to be between $1.327B and $1.331B, above the $1.18B estimate. Palantir raised [https://seekingalpha.com/news/4513250-palantir-pops-as-it-boosts-full-year-guidance-on-back-of-strong-q3-results#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] its revenue guidance to between $4.396B and $4.4B, up from a prior forecast of $4.14B to $4.15B, and above the consensus estimate of $4.17B.

Palantir’s third quarter revenue jumped 63% year-over-year to $1.18B, while adjusted EPS amounted to $0.21. Both top and bottom-line numbers beat estimates.

Qualcomm (QCOM [https://seekingalpha.com/symbol/QCOM]) shares fell [https://seekingalpha.com/news/4515828-qualcomm-slips-even-as-q4-results-guidance-top-estimates] in extended trading on Wednesday, even after the San Diego-based chipmaker reported fiscal fourth-quarter results and offered up guidance that were above Wall Street's forecast.

For the period ending Sept. 28, the Cristiano Amon-led firm earned an adjusted $3 per share as revenue came in at $11.27B, up 10% year-over-year. However, the company took a $5.7B non-cash charge related to the One Big Beautiful Bill Act that impacted earnings on a GAAP basis by $5.29 per share. Qualcomm said it now expects to be subject to the U.S. corporate alternative minimum tax beginning in fiscal 2026.

A consensus of analysts expected the company to earn an adjusted $2.88 per share on $10.77B in revenue.

Looking to the fiscal first-quarter, Qualcomm said it expects to earn between $3.30 and $3.50 per share on an adjusted basis. Revenue is forecast between $11.8B and $12.6B, including $10.3B to $10.9B for QCT revenue. Analysts were expecting $3.26 per share in earnings and $11.59B in revenue.

So far this quarter, 46 out of 433 companies that reported results are part of the information technology sector.

Almost 96% of the S&P 500 technology sector companies that have reported results so far this quarter have recorded an EPS beat, while 4% of companies reported a miss. In terms of revenue, 94% of the S&P 500 technology sector companies have recorded an EPS beat, while 6% of companies reported a miss.

For the upcoming week, Applied Materials (AMAT [https://seekingalpha.com/symbol/AMAT]) and Cisco Systems (CSCO [https://seekingalpha.com/symbol/CSCO]) are among the key information technology companies that are scheduled to report quarterly results.

MORE ON THE TECHNOLOGY SELECT SECTOR SPDR® FUND ETF

* U.S. Stocks Sector Divergence Raises Red Flags [https://seekingalpha.com/article/4828924-us-stocks-sector-divergence-raises-red-flags]
* Hold XLK, Buy VGT: How To Stay In Tech Without Being Dependent On 3 Ticker Symbols [https://seekingalpha.com/article/4825213-hold-xlk-buy-vgt-how-to-stay-in-tech-without-being-dependent-on-3-ticker-symbols]
* XLK: No Reason To Sell A Stake In Tech, More Gains Are Ahead [https://seekingalpha.com/article/4820550-xlk-no-reason-to-sell-a-stake-in-tech-more-gains-are-ahead]
* AI rally shows familiar bubble signs but market crash not imminent, Dario Perkins says [https://seekingalpha.com/news/4517041-ai-rally-shows-familiar-bubble-signs-but-market-crash-not-imminent-dario-perkins-says]
* Tech valuations are ‘pretty reasonable’ given growth rates despite drop in big tech – strategist [https://seekingalpha.com/news/4514845-tech-valuations-are-pretty-reasonable-given-growth-rates-despite-drop-in-big-tech-strategist]