Equity Research Reports

MongoDB's stock has surged following its transformation into a cloud-native database leader and its positioning for the AI era. This analysis explores valuation metrics, growth scenarios, and competitive dynamics to assess potential price targets and risks.

This comprehensive analysis examines the AI ecosystem's complete value chain, from energy infrastructure and chip design tools to semiconductor manufacturers and model builders. With valuations reaching historical extremes in 2024-2025, we assess whether the AI theme remains investable for 2026. The report analyzes ten key players across EDA software, power generation, chip design, cloud infrastructure, and AI development, providing perspective on competitive positioning and growth sustainability. Our analysis suggests a bifurcated outlook: infrastructure winners with pricing power versus challenged hardware suppliers facing margin compression.

Snowflake Inc.'s Q3 Fiscal Year 2026 earnings call highlighted the company's strong financial performance, with product revenue reaching $1,160,000,000, up 29% year over year. The non-GAAP product gross margin was 75.9%, and non-GAAP operating margin expanded more than 450 basis points year over year to 11%. The actual EPS came out at '0.35' relative to estimates at '0.3116', indicating a positive surprise. The company's product revenue growth is driven by its consumption model, where customers sign deals with a certain amount of slack capacity.

Leslie's reported net sales of $389.2 million in Q4, a 2.2% decline from $397.9 million in the prior year, with the 53rd week contributing $18.3 million. Gross margin expanded to 38.6% from 36% in the prior year, driven by favorable vendor rebates and freight costs. However, the company reported a net loss of $162.8 million, or $17.54 per diluted share, due to a $184 million impairment charge related to goodwill and store closures. Adjusted EBITDA increased to $45.2 million. The actual EPS came out at -$17.54, significantly below estimates, while revenue was slightly above the high end of the guided range.

Salesforce reported a robust fiscal 2026 third-quarter performance, with revenue reaching $10.26 billion, up 9% year over year. The non-GAAP operating margin expanded by 240 basis points to 35.5%, while the GAAP operating margin rose by 130 basis points. Earnings per share (EPS) came in at $3.25, beating estimates of $2.86. Operating cash flow was $2.3 billion, up 17%, and free cash flow was $2.2 billion, up 22%. The company's Current Remaining Performance Obligation (CRPO) stood at $29.4 billion, up 11%, and Remaining Performance Obligation (RPO) nearly reached $60 billion, growing 12% year over year.

Guidewire Software reported a robust first quarter fiscal 2026, with revenues reaching $333 million, up 27% year over year, and ARR growing 22% to $1.063 billion. Gross profit was $219 million, with a gross margin of 66%, and operating income finished at $63 million, up 83% year over year. Earnings per share (EPS) came in at $0.66, surpassing estimates of $0.614. The company's strong financial performance was driven by accelerating cloud adoption, with eight cloud deals in Q1, including five significant deals in North America and three international deals.

UiPath's third-quarter fiscal 2026 revenue grew 16% to $411 million, with ARR totaling $1.782 billion, up 11%. The company's disciplined approach to operational efficiency resulted in its first GAAP profitable third quarter, with GAAP operating income of $13 million, and non-GAAP operating income of $88 million, representing a 21% margin. EPS came out at $0.365, significantly beating estimates of $0.14. The strong financial performance was driven by a dollar-based net retention rate of 107% and a strong pipeline of customers, with over 950 companies developing agents and 365,000 processes orchestrated with Maestro.

American Eagle Outfitters (AEO) reported a record revenue of $1.4 billion in Q3 2025, a 6% increase from the previous year, driven by a 4% increase in comparable sales. The company's operating income was $113 million, exceeding guidance, with diluted EPS of $0.53, up 10% from the adjusted EPS last year. The earnings per share (EPS) came in higher than expected, beating analyst estimates of $0.43. The gross margin declined 40 basis points to 40.5%, due to net tariff pressure of $20 million.

Impax Asset Management reported an adjusted operating profit of £33.6 million and EPS of 21.3p for the full year ending September 2025, representing a decline of about one-third from the prior year. Revenue dropped by £28 million to £141.7 million, primarily due to a decrease in assets under management (AUM) to £26.1 billion from £37.2 billion. However, cost actions saved £9 million, and the operating margin remained relatively healthy at 23.7%. The actual EPS came out at 21.3p, which is significantly higher than '0.04774' mentioned in some estimates, but still below the estimated '0.064'. The company's revenue decline was largely driven by outflows, including a £6.2 billion mandate loss and £4 billion in negative net flows.

Sprinklr reported a total revenue of $219.1 million for Q3 FY2026, representing a 9% year-over-year growth, with subscription revenue growing 5% to $190.3 million. The company achieved a non-GAAP operating income of $33.5 million, resulting in a 15% non-GAAP operating margin. The actual EPS came out at $0.01116, missing estimates of $0.09. The company's gross margins on a non-GAAP basis were 77% for subscription and 5% for professional services, resulting in a total non-GAAP gross margin of 67%.

Dollar Tree's Q3 2025 results showcased a robust financial performance, with net sales increasing 9.4% to $4.7 billion, driven by a 4.2% comparable sales growth that was primarily ticket-driven. The company's adjusted EPS came in at $1.21, exceeding expectations of $1.09. Gross margin expanded 40 basis points to 35.8%, driven by merchandise margin, successful execution of merchant levers, and favorable freight. However, the SG&A rate increased 160 basis points to 26.2%, driven by higher store payroll and restickering costs.

Inditex reported a robust 9-month performance for 2025, with sales in constant currency rising by 6.2% to EUR 28.2 billion, driven by a 2.7% growth. The company's gross margin expanded by 79 basis points, contributing to a 3.6% increase in profit before tax to EUR 6 billion. Net income also grew by 3.9% to EUR 4.6 billion, with earnings per share (EPS) coming in at 0.586, beating analyst estimates of 0.555.

Torrid Holdings reported a decline in its third-quarter fiscal 2025 sales to $235.2 million, down 8.3% year-over-year, with comparable sales negatively impacted by a tariff-related pause in the shoe category. The company's adjusted EBITDA was $9.8 million, representing a 4.2% margin, significantly lower than the $19.6 million and 7.4% margin reported a year ago. The earnings per share (EPS) came out at -$0.0648, missing estimates of -$0.01. The gross margin stood at 34.9%, down from 36.1% in the prior year, due to higher promotions and deleverage on the lower sales base. SG&A expenses, however, decreased by $8.6 million year-over-year.

Box, Inc.'s third-quarter fiscal 2026 revenue was $301 million, a 9% year-over-year growth, with operating margins of 28.6%. The company's gross margin was 81.7%, and operating income was $86 million. EPS was $0.31, in line with estimates. Billings grew 12% year over year to $296 million, and remaining performance obligations (RPO) grew 18% year over year to $1.5 billion. The company has more than 2,000 customers paying at least $100,000 annually, up 7% year over year. Box generated free cash flow of $61 million and ended the quarter with $731 million in cash and short-term investments.

CrowdStrike Holdings, Inc. reported an exceptional third quarter, with revenue growing 22% year-over-year to $1.23 billion, and subscription revenue increasing 21% to $1.17 billion. The company's non-GAAP operating income was a record $264.6 million, with an operating margin of 21%. Earnings per share (EPS) came in at $0.96, beating estimates of $0.939. The strong financial performance was driven by a robust demand environment, with net new ARR growth accelerating to 73% year-over-year, and ending ARR reaching $4.92 billion, up 23% from the previous year.

Pure Storage reported a robust Q3 fiscal 2026, with revenue reaching $964 million, up 16% year-over-year, and operating profit of $196 million, up 17% year-over-year. The company's product revenue stood at $534 million, an 18% year-over-year increase, while subscription services revenue was $430 million, a 14% year-over-year growth. Earnings per share (EPS) came in at $0.58, in line with analyst estimates. Gross margin expanded to 74.1%, with subscription services gross margin at 75.5% and product gross margin at 72.9%. The company generated $53 million in free cash flow and returned $53 million to shareholders through share repurchases.

Okta reported a solid quarter with total revenue growth, non-GAAP operating margins of 25%, and free cash flow margins of approximately 31% for Q4 guidance. The company's actual EPS came out at $0.82, beating estimates of $0.758. The financial performance was driven by strength in large customers and upsells, particularly with new products like Okta Identity Governance. Okta's CFO, Brett Tighe, highlighted a disciplined approach to investments, focusing on improving sales productivity, product innovation, and leveraging channel partners. The company ended Q3 with nearly $2.5 billion in cash, cash equivalents, and short-term investments.

Marvell Technology reported record revenue of $2.075 billion for the third quarter of fiscal 2026, a 3% sequential increase and 37% year-over-year growth. The company's non-GAAP earnings per share of $0.76 exceeded guidance, with a non-GAAP gross margin of 59.7% and non-GAAP operating margin of 36.3%. The data center business drove growth, with revenue up 38% year-over-year, fueled by AI demand. Analysts had estimated EPS of $0.743, making the actual EPS of $0.76 a positive surprise.

GitLab's third-quarter fiscal year 2026 revenue grew 25% year-over-year to $244 million, surpassing guidance by two points. The company's non-GAAP operating margin reached 18%, exceeding Q3 guidance by five points. GitLab's non-GAAP net income per share came in at -$0.04987, missing estimates of $0.22. Non-GAAP gross margin was 89%, and Q3 non-GAAP operating income was $43.7 million. Total RPO grew 27% year-over-year to $1 billion, and CRPO grew 28% year-over-year to $659 million.

Asana, Inc.'s Q3 revenue was $201 million, growing 9% year over year, exceeding guidance. Non-GAAP operating income was $16.3 million or an 8% operating margin. The actual EPS came out at $0.07, beating estimates of $0.06. Free cash flow was $13.4 million, indicating the company's ability to generate cash from its operations. The revenue growth, although slowing, was accompanied by an improvement in non-GAAP operating margin and adjusted free cash flow.

Citi Trends reported a 10.8% comparable store sales growth in Q3 2025, with total sales up 10.1% to $197.1 million, driven by increased customer traffic and strong performances in children's, men's, and basic apparel categories. The gross margin rate was 38.9%, down 90 basis points from Q3 2024, but in line with expectations. Adjusted SG&A expense totaled $79.5 million, up from $74.6 million in the prior year period, driven by higher incentive compensation accrual and store expenses. The company's adjusted EBITDA for the quarter was a loss of $2.9 million, in line with management expectations and better than a loss of $3.3 million a year ago. Actual EPS came out at -$0.88, relative to estimates at $0.8.

United Natural Foods, Inc. (UNFI) reported net sales of $7.8 billion for the first quarter of fiscal 2026, roughly flat compared to the prior year, with the natural segment growing 11% driven by strong unit growth, new business projects, and secular strength in natural, organic, and specialty products. The company's adjusted EBITDA was $107 million, up 25% year over year, and free cash flow improved by over $100 million. UNFI's earnings per share (EPS) came in at $0.56, beating estimates of $0.39. Gross margin rate was 13.4%, up 20 basis points versus the prior year quarter, and operating expense rate was 12.7% of net sales, compared to 12.9% last year.