- Can AudioEye (AEYE) Keep the Earnings Surprise Streak Alive?
May 11, 2026 · zacks.com
AudioEye (AEYE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
- Airbnb Q1 Earnings Miss Estimates, Revenues Rise Y/Y, Shares Up
May 8, 2026
Airbnb ABNB posted first-quarter 2026 diluted earnings of 26 cents per share, which missed the Zacks Consensus Estimate by 15.23%. Earnings improved 8.3% from 24 cents in the year-ago quarter.
Revenues were $2.68 billion, up 17.8% year over year and 15% on a forex-neutral basis. The top line beat the Zacks Consensus Estimate by 2.16%.
Demand remained healthy, highlighted by Gross Booking Value of $29.2 billion and Nights and Seats Booked of 156.2 million in the quarter.
ABNB’s implied take rate (revenue divided by Gross Booking Value) was 9.2% in the quarter, roughly in line with 9.3% in the prior-year period. Management attributed some variability to timing effects from Reserve Now, Pay Later, which can shift guest payments closer to the stay date.
Airbnb, Inc. Price, Consensus and EPS SurpriseAirbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
ABNB shares are up 13.30% while writing this blog.
ABNB’s Demand Held Up Despite Higher Cancelations
ABNB saw nights and seats booked rise 9% year over year to $186.8 million, even as management cited an approximate 100-basis-point headwind tied to elevated cancellations from the conflict in the Middle East. The company noted that, absent the conflict, growth would have been closer to 10%.
Momentum also continued to shift toward mobile. Nights booked on the app increased 22% year over year and represented 63% of total nights booked, up from 58% a year ago. First-time booker growth accelerated to 10%, with particularly strong trends cited in Brazil, Japan and India.
Airbnb’s Q1 Operating Details
In the first quarter of 2026, total costs and expenses as a percentage of revenues decreased 150 basis points (bps) year over year to 96.8% in the reported quarter. Cost of revenues decreased 60 bps year over year. Product development declined 120 bps while sales and marketing expenses increased 330 bps. Operations and support, and general and administrative, as a percentage of revenues, decreased 120 bps and 190 bps, respectively.
Adjusted EBITDA was $519 million, up 24% year over year, with an adjusted EBITDA margin of 19%.
The first quarter of 2026 operating margin contracted 150 bps year over year to 3.2%.
ABNB’s Balance Sheet & Cash Flow
As of March 31, 2026, cash and cash equivalents, short-term investments, and restricted cash totaled $12.1 billion compared with $11 billion as of Dec. 31, 2025. ABNB had $10.6 billion of funds held on behalf of guests.
Net cash provided by operating activities was $1.7 billion in the first quarter of 2026, up from $526 million reported in the fourth quarter of 2025.
ABNB produced $1.70 billion in free cash flow in the quarter, representing a 64% free cash flow margin. Over the trailing 12 months, free cash flow totaled $4.54 billion, equating to a 36% margin, though management noted working-capital impacts tied to the continued expansion of Reserve Now, Pay Later.
Airbnb repurchased $1.1 billion of stock during the first quarter of 2026.
Story Continues
Airbnb’s Outlook Signals Confidence in 2026 Growth
For the second quarter of 2026, Airbnb expects revenues in the range of $3.54-$3.60 billion, implying year-over-year growth of 14-16%, inclusive of an approximate 3% foreign-exchange tailwind after hedging. The company expects Gross Booking Value to rise in the low double digits, driven by growth in nights and seats booked and a moderate increase in Average Daily Rate.
Airbnb also raised its 2026 view, saying it now expects year-over-year revenue growth to accelerate to the low-to-mid teens. On profitability, management is targeting an adjusted EBITDA margin of at least 35% for 2026, while continuing to reinvest in efficient marketing, international expansion and AI initiatives.
ABNB’s Zacks Rank & Stocks to Consider
Airbnb currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT, and Audioeye AEYE. Each stock currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 50.7% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 59.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 19% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- Arrow Electronics Q1 Earnings Beat Estimates, Revenues Rise Y/Y
May 8, 2026
Arrow Electronics ARW reported first-quarter 2026 non-GAAP earnings of $5.22 per share, above the company's previously issued guidance of $2.70-$2.90. The bottom line increased 190% year over year and beat the Zacks Consensus Estimate by 85.77%.
In the first quarter, ARW reported revenues of $9.47 billion, which rose 39% year over year and beat the consensus mark by 14.7%. The figure also exceeded the company's earlier guided range of $7.95-$8.55 billion. At constant currency, revenues increased 34% year over year. Changes in foreign currencies had a positive impact of $274 million on sales and 7 cents on earnings per share compared with the first quarter of 2025.
On a GAAP basis, ARW reported earnings of $4.55 per share, up 201% year over year, while net income attributable to shareholders rose 195% year over year to $235 million.
Arrow Electronics, Inc. Price, Consensus and EPS SurpriseArrow Electronics, Inc. Price, Consensus and EPS Surprise
Arrow Electronics, Inc. price-consensus-eps-surprise-chart | Arrow Electronics, Inc. Quote
ARW's Q1 Revenue Details
In the first quarter of 2026, Global Components sales increased 39% year over year on a reported basis and 35% on a constant currency basis to $6.64 billion.
Region-wise, revenues from the Americas increased 47%, and the same from the Asia-Pacific region rose 37% (36% at constant currency) year over year on a reported basis. EMEA revenues increased 32% year over year on a reported basis and 19% at constant currency.
Global Enterprise Computing Solutions (ECS) revenues were $2.83 billion, which increased 39% year over year on a reported basis and 32% at constant currency. Global ECS gross billings rose 39% year over year to $6.43 billion.
Region-wise, the segment's revenues from the Americas and EMEA grew 30% and 46%, respectively, year over year, on a reported basis. At constant currency, Americas ECS increased 30%, and EMEA ECS rose 33%.
ARW's Q1 Operating Details
Consolidated non-GAAP gross margin was 11.5%, up approximately 20 basis points on a year-over-year basis. The Global Components segment reported a non-GAAP gross margin of 12.1%, up 50 basis points year over year, whereas the Global ECS segment saw its margin contract 80 basis points to 10% year over year. The ECS gross margin contraction was primarily due to a $21.7 million loss related to the underperformance of a certain non-cancellable multi-year purchase obligation.
The non-GAAP operating income from Global Components and Global ECS was $365 million and $105 million, respectively. Global Components' operating income increased 111% year over year, while Global ECS rose 34% year over year.
Arrow Electronics' non-GAAP operating income rose to $401 million in the first quarter of 2026. The non-GAAP operating margin expanded 160 basis points year over year to 4.2%. Within segments, Global Components' non-GAAP operating margin expanded 190 basis points year over year to 5.5%, while Global ECS' non-GAAP operating margin contracted 10 basis points to 3.7%.
Story Continues
Balance Sheet & Cash Flow
As of April 4, 2026, cash and cash equivalents totaled $287 million, which decreased from $306 million as of Dec. 31, 2025.
The long-term debt was $2.35 billion, down from $3.08 billion at the end of the previous quarter. In the reported quarter, cash flow from operations was $700 million, partly due to the timing of cash flows within the company's supply chain services offering compared with $352 million in the first quarter of 2025.
In the first quarter of 2026, ARW repurchased $25 million of shares.
ARW Offers Q2 2026 Guidance
For the second quarter of 2026, sales are estimated between $9.15 billion and $9.75 billion.
Global Components sales are projected between $6.80 billion and $7.20 billion. Global ECS sales are anticipated to be between $2.35 billion and $2.55 billion.
Interest expenses are expected to be approximately $60 million. The average tax rate is expected to range from 23% to 25%.
ARW anticipates GAAP earnings of $3.91-$4.11 per share and non-GAAP earnings of $4.32-$4.52 per share.
Changes in foreign currencies are expected to increase sales by approximately $117 million and earnings per share by 11 cents compared to the second quarter of 2025. On a sequential basis, foreign-currency changes are expected to increase sales by approximately $21 million and earnings per share by 3 cents compared to the first quarter of 2026.
ARW’s Zacks Rank & Other Stocks to Consider
ARW currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT and Audioeye AEYE, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 53.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 66.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 23.3% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- RingCentral Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
May 8, 2026
RingCentral RNG posted first-quarter 2026 non-GAAP earnings of $1.20 per share, which beat the Zacks Consensus Estimate by 2.56% and rose 20% year over year.
Revenues of $644 million surpassed the Zacks Consensus Estimate by 0.22% and increased 5.3% from the year-ago quarter. The quarter reflected steady subscription momentum and improving profitability.
RNG ended the period with a total ARR of $2.707 billion, up 7% year over year, as demand for its AI-powered customer engagement offerings continued to expand.
RNG’s Quarterly Details
Subscription revenue, representing 97% of total revenue, increased 5.6% year over year to $623.17 million. The performance suggests ongoing traction across the company’s core unified communications offerings, supported by continued customer demand for cloud-based communication tools.
Ringcentral, Inc. Price, Consensus and EPS SurpriseRingcentral, Inc. Price, Consensus and EPS Surprise
Ringcentral, Inc. price-consensus-eps-surprise-chart | Ringcentral, Inc. Quote
Other revenue was $21.03 million (3.3% of total revenue), which decreased 4.2% from the year-ago quarter. While smaller in overall contribution, the decline indicates that growth remains concentrated in recurring subscriptions, keeping the company’s revenue base anchored in predictable, contract-driven streams.
RingCentral Leans on AI Products and Bundled Demand
Management emphasized progress in AI-driven customer engagement, noting that ARR from customers using at least one paid AI product is now more than 10% of total ARR and doubled year over year. The commentary underscores the company’s effort to move beyond legacy UCaaS into a broader AI-powered platform spanning voice, messaging, and contact center workflows.
Product momentum was supported by multiple launches and enhancements, including RingCentral AIR Pro and expanded AIR functionality across SMS and call queues. The company also highlighted continued traction in its Customer Engagement Bundle, positioning it as a key pillar designed to meet demand for lighter-weight contact center capabilities among RingEX customers.
RingCentral’s Operating Details
First-quarter 2026 non-GAAP gross margin expanded 70 bps from the prior-year quarter to 77.7%.
On a non-GAAP basis, research and development expenses increased 7.3% year over year to $66.2 million. Sales and marketing expenses increased 4.9% year over year to $244.7 million. General and administrative expenses decreased 1.1% year over year to $42.2 million in the reported quarter.
Non-GAAP operating margin improved to 22.9%, expanding 110 basis points from the prior-year quarter. The outcome points to operating leverage, as growth in high-margin subscription revenue and tighter spending supported profitability.
The non-GAAP EBITDA margin was 26.3%, expanding 100 bps year over year.
Story Continues
RNG’s Balance Sheet & Cash Flow Details
As of March 31, 2026, cash and cash equivalents were $116.58 million compared with $132.5 million as of Dec. 31, 2025.
Net cash provided by operating activities was $164.05 million. Free cash flow came in at $140.65 million. The non-GAAP cash flow margin was 21.8% in the first quarter.
Shareholder returns remained a priority, highlighted by $81.33 million of common stock repurchases during the quarter. The company also paid $6.41 million in dividends and noted it has no debt maturities until 2030 following the repayment of its 2026 convertible notes at maturity.
RNG’s Q2 and Full-Year 2026 Outlook
For the second quarter of 2026, RNG expects total revenues between $648 million and $653 million and subscription revenues in the range of $628 million to $633 million. The company expects non-GAAP EPS of $1.15 to $1.17 and forecasts a non-GAAP operating margin of 23% to 23.2%, signaling continued focus on profitability.
For 2026, RingCentral raised its outlook, projecting total revenues of $2.62 billion to $2.64 billion and subscription revenues of $2.54 billion to $2.56 billion. Non-GAAP EPS is expected to be in the range of $4.85 to $5.01, while free cash flow is anticipated to be between $590 million and $605 million, reflecting management’s confidence in sustained execution and cash generation.
RNG’s Zacks Rank & Stocks to Consider
RingCentral currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT, and Audioeye AEYE. Each stock currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 50.7% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 59.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 19% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- BILL Holdings Q3 Earnings Beat Estimates on Core Revenue Strength
May 8, 2026
BILL Holdings, Inc. BILL posted third-quarter fiscal 2026 non-GAAP net income of 68 cents per share, beating the Zacks Consensus Estimate of 55 cents by 23.6%. The figure increased 36% from the year-ago quarter.
Quarterly revenues of $406.6 million topped the consensus mark of $403.1 million by 0.9% and rose 13.5% year over year. The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.
BILL’s Core Revenue Mix Drove Quarterly Momentum
A key feature of the quarter was the continued outperformance of core revenue, which consists of subscription and transaction fees. Core revenue climbed 16% year over year to $371.1 million, reflecting growing adoption across the platform and steady engagement from existing customers.
Within core revenue, subscription fees increased 9% to $74.5 million, supported by broader platform usage. Transaction fees rose 18% to $296.6 million, aided by higher activity levels across BILL’s payment and spend workflows. Float revenues, which consist of interest on funds held for customers, were $35.4 million in the quarter, declining 6.6% year over year.
BILL Scale Gains Remained Broad-Based
Operationally, BILL Holdings continued to show expanding ecosystem scale. The company served 493,800 businesses using its solutions at quarter-end, underscoring steady customer demand across integrated workflows.
Engagement indicators also remained favorable. Transactions processed increased to 34 million, up 14% year over year, indicating growing usage intensity across the platform as customers consolidate payment and spend activity in a single system.
BILL’s Margin Profile Improved on Operating Leverage
Profitability metrics showed meaningful progress in the quarter. Gross profit totaled $331.9 million, translating to an 81.6% gross margin compared with an 81.2% gross margin in the year-ago period.
On a non-GAAP basis, gross profit was $346 million and non-GAAP gross margin expanded to 85.1% from 84.9% a year earlier. Non-GAAP operating income increased to $79.8 million from $53.3 million in the prior-year quarter, reflecting improved operating leverage.
BILL’s Cash Position Supported Share Repurchases
BILL Holdings ended the quarter with cash and cash equivalents of $994.7 million and short-term investments of $1.18 billion, providing meaningful balance-sheet flexibility. Funds held for customers were $4.00 billion at quarter-end, reflecting the scale of money movement processed through the platform.
Story Continues
Cash generation remained solid. Net cash provided by operating activities was $102.7 million in the quarter, while free cash flow was $84.7 million. Capital return was also a focus: BILL repurchased roughly 1.0 million shares during the quarter for approximately $52 million and announced a new $1.0 billion share repurchase authorization.
BILL’s Outlook Called for Continued Double-Digit Growth
Management’s guidance pointed to ongoing growth in the near term. For the fiscal fourth quarter, BILL expects total revenue of $425-$435 million, representing 11-13% growth year over year and core revenue of $392-$402 million, suggesting 13-16% growth. Non-GAAP net income per share is anticipated in the range of 69-72 cents. This is above the Zacks Consensus Estimate of 56 cents.
For fiscal 2026, the company guided total revenues of $1.642-$1.652 billion, representing a 12-13% rise year over year and core revenues of $1.4963-$1.5063 billion, indicating a 15-16% increase. Non-GAAP net income per share is expected to be $2.61-$2.64. The consensus mark for the same is currently pegged at $2.39.
Currently, BILL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BILL Holdings, Inc. Price, Consensus and EPS SurpriseBILL Holdings, Inc. Price, Consensus and EPS Surprise
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Upcoming Earnings Releases
We now look forward to the earnings release of other stocks in the Internet- Software industry — Audioeye AEYE and StoneCo STNE. Both companies are scheduled to report earnings on May 12 and May 14, respectively.
The consensus mark for Audioeye’s first-quarter EPS is pegged at 17 cents, implying a 13.3% increase year over year.
The Zacks Consensus Estimate for StoneCo’s first-quarter 2026 EPS stands at 42 cents, indicating a 23.5% increase year over year.
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- Unity Software's Q1 Earnings Miss Estimates, Revenues Increase Y/Y
May 8, 2026
Unity Software U reported first-quarter 2026 non-GAAP earnings per share (EPS) of 23 cents compared with 24 cents in the year-ago quarter. The figure missed the Zacks Consensus Estimate by 4.17%.
On a GAAP basis, the company posted a net loss per share of 80 cents compared with a loss of 19 cents in the year-ago quarter, weighed down by $279 million of impairment charges related to the sunset of the ironSource Ads Network and the planned divestiture of the Supersonic publishing business.
Net revenues of $508.24 million rose 17% year over year and comfortably exceeded the company's guided range of $480-$490 million. The figure beat the consensus mark by 1.53%.
Total Strategic Revenue, which excludes the ironSource Ads Network and Supersonic, grew 35% year over year to $432 million. The revenue growth was driven by the Unity Ad Network, propelled by Unity Vector, with additional contribution from higher subscription revenues in Create.
Unity Software Inc. Price, Consensus and EPS SurpriseUnity Software Inc. Price, Consensus and EPS Surprise
Unity Software Inc. price-consensus-eps-surprise-chart | Unity Software Inc. Quote
Q1 Details of Unity Software
Unity Software reported Create Solutions revenues of $157 million, up 4% year over year. The increase was driven by higher subscription revenues, partially offset by declines in cloud and hosting services revenues tied to the company's portfolio reset in 2025. Strategic Create Revenue (which excludes non-strategic items) was $153.7 million, up 15% year over year.
Grow Solutions revenues were $352 million, up 24% year over year. The growth was driven by Unity Vector within the Unity Ad Network, partially offset by declines in the IronSource Ad Network. Strategic Grow Revenue was $278.7 million, up 49% year over year, almost twice the rate of total Grow growth — reflecting Vector's continuing momentum. Per the March 26, 2026, preliminary release, Unity Vector increased 15% sequentially in the first quarter, marking its fourth consecutive quarter of mid-teens sequential growth.
Non-Strategic Revenue, consisting primarily of the ironSource Ads Network and Supersonic, was $75.8 million, down 34% year over year.
Operating Details of Unity
In the first quarter, non-GAAP gross profit increased 16.7% year over year to $419.1 million. Unity's adjusted gross margin of 82% was flat year over year.
Research & development expenses on an adjusted basis grew 8.7% year over year to $152.1 million. Adjusted R&D, as a percentage of revenues, contracted 200 basis points to 30%.
Sales and marketing expenses on an adjusted basis declined 2.3% year over year to $90.9 million. Adjusted S&M, as a percentage of revenues, contracted 300 basis points to 18%.
General & administrative expenses on an adjusted basis decreased 10.3% year over year to $37.9 million. Adjusted G&A, as a percentage of revenues, contracted 300 basis points to 7%.
Unity Software reported adjusted EBITDA of $138 million, up 64.7% year over year and well above the prior guidance of $105-$110 million. The company's adjusted EBITDA margin of 27% improved 800 basis points compared with the prior year, driven by higher revenues and continued cost control.
On a GAAP basis, the net loss for the quarter was $347 million, including the $279 million of impairment charges related to the ironSource Ads Network sunset and the planned Supersonic divestiture, compared with a net loss of $78 million in the year-ago quarter.
Story Continues
Unity Software's Balance Sheet & Cash Flow
As of March 31, 2026, Unity had cash, cash equivalents and restricted cash of $2.15 billion compared with $2.06 billion as of Dec. 31, 2025. The increase was primarily driven by operations.
Operating cash flow was $71 million in the reported quarter, up from $13 million reported in the year-ago quarter. Free cash flow during the quarter was $66 million compared with $7 million in the prior-year quarter. The current portion of convertible notes was $556.8 million as of March 31, 2026.
Significant Q1 Developments
Alongside its first-quarter results, Unity Software announced the sunset of the ironSource Ads Network, effective April 30, 2026, and disclosed that it had engaged a financial advisor to assist with the divestiture of its Supersonic game publishing business. Management stated that, once completed, these actions are expected to drive faster revenue growth and higher adjusted EBITDA margins. The company also reiterated its expectation to become GAAP profitable by the fourth quarter of 2026.
Unity Software's Guidance for Q2 2026
For the second quarter of 2026, Unity Software anticipates total revenues between $505 million and $515 million. Strategic Revenue is expected in the range of $455-$465 million, implying a rise of 29-32% year over year. Within that, Strategic Grow Revenue is expected between $302 million and $306 million, suggesting an increase of 50-52% year over year, and Strategic Create Revenue is guided in the range of $154-$158 million, indicating a rise of 11-14% year over year (excluding the impact of a $12 million one-time revenue item in the second quarter of 2025).
Adjusted EBITDA is expected in the range of $130-$135 million, indicating year-over-year growth of 44-49%.
Unity’s Zacks Rank & Stocks to Consider
Unity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT and Audioeye AEYE, each currently carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 53.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 66.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 23.3% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- Datadog Q1 Earnings and Revenues Surpass Estimates, Rise Y/Y
May 8, 2026
Datadog DDOG reported first-quarter 2026 non-GAAP earnings per share (EPS) of 60 cents, which increased 30.4% from the year-ago quarter and exceeded the company's guidance of 49-51 cents. The figure beat the Zacks Consensus Estimate by 20%.
The company's revenues of $1.006 billion rose 32% year over year and surpassed the prior guided range of $951-$961 million. The figure beat the consensus mark by 5.18%. This was the first quarter in which Datadog's quarterly revenues crossed the $1-billion mark.
Datadog, Inc. Price, Consensus and EPS SurpriseDatadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Q1 Details of DDOG
The company ended the first quarter with approximately 33,200 customers, up from about 30,500 in the prior-year period.
In the quarter under review, Datadog had about 4,550 customers with an Annualized Run Rate (ARR) of $100,000 or more, up from about 3,770 in the year-ago quarter. These customers generated about 90% of the total ARR.
As of the end of the first quarter, 56% of customers used four or more products, up from 51% in the year-ago period. Furthermore, 35% of customers used six or more products, up from 28% a year ago, while 20% used eight or more products, up from 13% in the prior-year quarter. Datadog reported a trailing 12-month net revenue retention rate in the low 120% range in the first quarter, up from approximately 120% in the prior quarter, while gross revenue retention remained stable in the mid-to-high 90% range.
Datadog's total ARR surpassed $4 billion in the quarter, and the company delivered an all-time record for the sequential ARR added. New logo annualized bookings also set an all-time record, more than doubling on a year-over-year basis. Of Datadog's 26 products, five generate more than $100 million in ARR, while another three are between $50 million and $100 million in ARR.
Operating Details of DDOG
In the first quarter, non-GAAP gross profit increased 32% year over year, reaching $807.2 million. Datadog's non-GAAP gross margin was 80.2%, declining 10 basis points on a year-over-year basis from 80.3%.
Research & development expenses on a non-GAAP basis grew 33% year over year to $300.4 million. Research & development, as a percentage of revenues, expanded 20 basis points to 29.9%.
Sales and marketing expenses on a non-GAAP basis rose 31.9% year over year to $235.3 million. Sales and marketing expenses, as a percentage of revenues, contracted nearly 10 basis points to 23.4%.
General & administrative expenses on a non-GAAP basis increased 17.3% year over year, reaching $48.1 million in the reported quarter. General and administrative expenses, as a percentage of revenues, contracted 60 basis points to 4.8%.
Datadog reported a non-GAAP operating income of $223.5 million, up 34.2% year over year. Its non-GAAP operating margin of 22% remained flat compared with the prior-year quarter.
Story Continues
Datadog's Balance Sheet & Cash Flow
As of March 31, 2026, Datadog had cash, cash equivalents and marketable securities of $4.8 billion compared with $4.5 billion as of Dec. 31, 2025. Operating cash flow was $335 million in the reported quarter, up from $327 million reported in the previous quarter. Free cash flow during the quarter was $289 million compared with $291 million in the prior quarter, with a free cash flow margin of 29%.
Billings totaled $1.03 billion in the quarter, up 37% year over year, while remaining performance obligations were $3.48 billion, up 51% year over year.
Datadog's Guidance for Q2 & 2026
For the second quarter of 2026, Datadog anticipates revenues between $1.07 billion and $1.08 billion. Non-GAAP EPS is expected in the range of 57-59 cents. Non-GAAP operating income is expected in the band of $225-$235 million.
For fiscal 2026, Datadog anticipates revenues between $4.30 billion and $4.34 billion. Non-GAAP EPS is projected to be between $2.36 and $2.44. Non-GAAP operating income is expected in the range of $940-$980 million.
Datadog’s Zacks Rank & Stocks to Consider
Datadog currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT and Audioeye AEYE, each currently carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 53.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 66.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 23.3% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- MKSI Q1 Earnings Beat Estimates, Revenue Increase Y/Y, Shares Up
May 7, 2026
MKS Inc.’s MKSI first-quarter 2026 non-GAAP earnings of $2.30 per share increased 34.5% year over year. The figure surpassed the Zacks Consensus Estimate by 15.21%.
Revenues came in at $1.08 billion, rising 15.2% from the year-ago quarter and beating the Zacks Consensus Estimate by 2.95%. Strength was supported by broad-based demand tied to AI-related investment.
Product revenues (88.5% of total revenues) totaled $954 million, up 16.5% year over year. Services revenues (11.5% of total revenues) increased 6% year over year to $124 million.
Shares of the company rallied 8.38% while writing this blog.
MKS Inc. Price, Consensus and EPS SurpriseMKS Inc. Price, Consensus and EPS Surprise
MKS Inc. price-consensus-eps-surprise-chart | MKS Inc. Quote
MKSI Q1 Top-Line Details
Semiconductor end-market revenues totaled $466 million (43.2% of total revenues), increasing 13% year over year, with management citing broad-based growth across products aimed at DRAM, NAND and foundry/logic applications. The company also pointed to sequential improvement in power solutions as NAND equipment upgrades increased.
Electronics & Packaging revenues rose 27% year over year to $321 million, and contributed 29.8% of total revenue in the reported quarter. The company attributed the performance to strength in flexible PCB drilling systems supported by consumer electronics seasonality, along with solid results in chemistry and chemistry equipment.
Specialty Industrial revenues increased 8% from the prior-year period to $291 million and contributed 27% of total revenues, even as results reflected a sequential dip tied largely to Lunar New Year seasonality. The company cited year-over-year strength, driven by datacom and defense markets.
MKSI’s Q1 Operating Details
In the first quarter of 2026, gross margin contracted 40 basis points (bps) on a year-over-year basis to 47%.
Adjusted EBITDA increased 17.4% year over year to $277 million. Adjusted EBITDA margin expanded 50 bps year over year to 25.7%.
Non-GAAP operating expenses were $271 million, and the company flagged higher R&D investment and a seasonal lift in stock-based compensation as key contributors to spending levels.
On a non-GAAP basis, operating margin expanded 160 bps to 21.8% from 20.2% a year ago, reflecting revenue growth and operating leverage.
MKSI’s Balance Sheet
As of March 31, 2026, MKS Instruments had cash and cash equivalents of $569 million compared with $675 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt totaled $2.65 billion.
Cash flow from operations was $53 million in the first quarter of 2026 compared with $142 million in the previous quarter.
The free cash flow was $29 million compared with $91 million in the first quarter of 2025.
Story Continues
MKSI’s Q2 Guidance
MKSI expects second-quarter 2026 revenues of $1.20 billion (+/- $40 million).
MKS anticipates a gross margin of 47% (+/- 1%). The company expects an adjusted EBITDA of $328 million (+/- 26 million).
On a non-GAAP basis, MKSI expects earnings of $2.90 (+/- 30 cents) per share.
MKSI Zacks Rank & Other Stocks to Consider
MKSI currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT and Audioeye AEYE. Each stock currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 53.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 66.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 23.3% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- NICE Q1 Earnings Beat Estimates on Strong Cloud Revenues, Shares Up
May 7, 2026
Nice NICE reported first-quarter 2026 non-GAAP earnings of $2.64 per share, down 8.0% year over year but beat the Zacks Consensus Estimate by 4.66%.
Revenues grew 9.8% from the year-ago period to $768.6 million and surpassed the consensus mark by 0.99%. The uptick was primarily driven by the continued strength in its cloud business and the ongoing AI momentum.
Revenues in the Americas were $625 million, up 6% year over year. The same in EMEA was $99 million in the reported quarter, up 34% year over year. APAC revenues increased 23% year over year to $44 million.
NICE shares have gained 2.04% in the pre-market trading.
Nice Price, Consensus and EPS SurpriseNice Price, Consensus and EPS Surprise
Nice price-consensus-eps-surprise-chart | Nice Quote
NICE’s Top-Line Details
NICE generated cloud revenues of $603.4 million, which represented 79% of total revenue for the quarter. The company’s cloud growth was 14.6%, up year over year, reflecting continued adoption of CXone and expanding AI-driven use cases.
Within the cloud, management highlighted that AI remained a central growth lever. AI ARR was included in 100% of CXone enterprise deals during the quarter, signaling that AI is moving from add-on to standard buying behavior across larger customers. AI & self-service ARR jumped 66% year over year to $345 million, underscoring demand for NICE’s AI-native CX platform.
Nice reported services revenues of $124.0 million (16.1% of revenues), down 11.6% year over year. The decline was due to ongoing migration away from on-premise deployments, which reduces legacy service activity as customers transition to the cloud.
Product revenue rose 22.6% year over year to $41.3 million. Product revenue contributed 5.4% of revenues in the reported quarter. The increase was driven by strength in the financial crime and compliance business, which benefited from premise-based term renewals alongside continued cloud expansion in the segment.
NICE Segment Results Highlight FCC Outperformance
NICE’s Customer Engagement segment delivered revenues of $636 million, up 7% year over year. Growth was fueled by double-digit cloud gains that more than offset reductions in on-premise product and services revenue tied to the legacy base.
Financial Crime and Compliance revenue was $133 million, rising 23% year over year. Management attributed the performance to strong premise-based term renewals with large global financial institutions, reinforcing retention strength in the installed base while cloud offerings continue to scale.
NICE Operating Details
On a non-GAAP basis, gross margin was 68.4% compared with 69.9% a year ago. Management framed the margin pressure as a result of deliberate, time-bound investments to scale global cloud infrastructure and support higher AI workloads.
Research and development expenses, as a percentage of revenues, were flat year over year to 12.7%. Sales and marketing expenses, as a percentage of revenues, fell 100 bps year over year to 24.1%.
General and administrative expenses, as a percentage of revenues, increased 120 bps year over year to 11.1%.
On a non-GAAP basis, operating expenses, as a percentage of revenues, contracted 300 bps year over year to 42.4%.
The non-GAAP operating margin contracted 450 bps on a year-over-year basis to 26%.
The non-GAAP EBITDA margin contracted 450 bps to 29.1%.
Story Continues
NICE Balance Sheet & Cash Flow Statement
As of March 31, 2026, NICE had cash and cash equivalents (including short-term investments) of $304.1 million compared with $417.4 million as of Dec. 31, 2025.
In the reported quarter, there was no outstanding debt.
Operating cash flow was $179.2 million in the reported quarter, while free cash flow totaled $148.8 million.
The company also repurchased $253.3 million of shares in the quarter, reflecting an ongoing commitment to return capital alongside investment in growth initiatives.
NICE Initiates 2Q26 and FY26 Guidance
For the second quarter of 2026, Nice expects non-GAAP revenues in the range of $761 million to $771 million and non-GAAP earnings of $2.60 to $2.70 per share.
For 2026, NICE reiterated non-GAAP revenue guidance of $3.170 billion to $3.190 billion, and raised non-GAAP EPS guidance to $10.98-$11.18. Management also reiterated that cloud revenue growth is expected to be within the 13%-15% range for 2026, with some near-term variability tied to renewal-related commercial actions that are designed to secure longer-term AI commitments.
NICE’s Zacks Rank & Stocks to Consider
Nice currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT and Audioeye AEYE. Each stock currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 53.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 66.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 23.3% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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- DoorDash Q1 Earnings Top Estimates, Revenues Increase Y/Y, Shares Up
May 7, 2026
DoorDash DASH posted first-quarter 2026 earnings of 42 cents per share, beating the Zacks Consensus Estimate by 13.51%. The company had reported year-ago quarter’s earnings of 44 cents per share.
Revenues rose 33.1% year over year to $4.04 billion but missed the consensus mark by 2.14%. While top-line growth remained strong, net revenue margin moved lower to 12.8% from 13.1% in the year-ago quarter.
Following the results, DoorDash shares have rallied 10.38% in the pre-market trading.
DASH’s Q1 Details
In the first quarter of 2026, total orders increased 27% year over year to 933 million. The figure missed the Zacks Consensus Estimate by 2.45%. Total orders were driven by growth in consumers, average consumer engagement and the acquisition of Deliveroo.
Marketplace GOV increased 37% year over year to $31.6 billion. The figure beat the consensus mark by 0.34%.
DoorDash, Inc. Price, Consensus and EPS SurpriseDoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
The adjusted gross profit was $2.09 billion, up 33.1% year over year. The adjusted gross margin was flat on a year-over-year basis to 51.9%.
The contribution margin was 34.2% compared with 33.6% reported in the year-ago quarter.
Adjusted sales & marketing expenses rose 29.1% year over year to $715 million. Adjusted research & development expenses increased 50.5% year over year to $277 million. Adjusted general & administrative expenses surged 41.9% year over year to $349 million.
Adjusted EBITDA was $754 million, up 27.8% year over year. Adjusted EBITDA margin contracted 80 bps year over year to 18.7%.
DASH’s Balance Sheet and Cash Flow
As of March 31, 2026, DoorDash had $5.83 billion in cash, cash equivalents, and short-term marketable securities compared with $5.78 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $594 million in the first quarter, which was down from $635 million a year earlier. Free cash flow was $420 million, which declined from $494 million in the year-ago quarter. This reflects the interplay of working-capital movement and investment spending.
DASH’s Q2 Marketplace GOV and EBITDA Guidance
For the second quarter of 2026, DoorDash expects Marketplace GOV in the range of $32.4-$33.4 billion and adjusted EBITDA of $770-$870 million.
For 2026, DoorDash expects stock-based compensation expense of approximately $1.3-$1.4 billion and depreciation and amortization expense of roughly $1.1-$1.2 billion, including about $450 million tied to acquired intangible assets.
DASH’s Zacks Rank & Stocks to Consider
DoorDash currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Materials AMAT and Audioeye AEYE. Each stock currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 53.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 66.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 23.3% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
Story Continues
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
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DoorDash, Inc. (DASH) : Free Stock Analysis Report
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