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Accenture (ACN) delivered a solid start to fiscal 2026, posting Q1 revenue at the top of its guided range and EPS that comfortably cleared analyst expectations. However, while revenue of $18.7 bln represented a steady 5.7% yr/yr increase, the company’s decision to maintain its full-year EPS guidance despite the Q1 beat tempered investor enthusiasm.

• Adjusted EPS of $3.94 grew 10% yr/yr, fueled by disciplined cost management and a 30-bps expansion in adjusted operating margin to 17%.
• Margin expansion was primarily driven by talent rotation and improved contract profitability, which helped drive a 7% increase in revenue per person this quarter.
• New bookings reached $20.9 bln, a 12% increase in USD, supported by 33 clients with quarterly bookings exceeding $100 mln.
• Managed Services led the growth, with bookings of $11.1 bln (1.2 book-to-bill) outpacing Consulting bookings of $9.9 bln (1.0 book-to-bill).
• Advanced AI momentum continued with $2.2 bln in new bookings, nearly doubling from the same period last year, as the technology becomes "embedded in some way across nearly everything" the company does, according to ACN executives.
• FY26 guidance remains conservative, with the company reaffirming local currency revenue growth of 2-5% and adjusted EPS of $13.52 to $13.90.

Briefing.com Analyst Insight:

ACN’s Q1 results underscore its leadership in the "AI-enablement" era, yet the stock remains under pressure as the company opted to reaffirm rather than raise its FY26 EPS outlook. The 30-bps margin expansion is a testament to the company's ability to drive efficiency through proprietary platforms and fixed-price contracts, which now represent 60% of its work. However, management noted that the 7% growth in revenue per person may moderate as they ramp up hiring for new skills in the U.S. and Europe. The company’s AI strategy is shifting from "proof of concept" to scaled, end-to-end solutions, particularly in customer service, finance, and procurement. Given that discretionary spend in the broader market remains flat with no clear catalyst for change, ACN’s reliance on large-scale transformational deals makes it a steady but cautious play in a maturing AI landscape.

CarMax (KMX) is modestly lower today, though it has bounced off its lows, after reporting its Q3 (Nov) results this morning. The company beat EPS and revenue expectations, but both declined yr/yr as weaker retail volumes, a less favorable vehicle margin environment, and continued cost pressure weighed. Revenue fell 6.9% yr/yr to $5.79 bln. To improve current performance trends, KMX announced its intention to lower retail unit margins and increase its marketing spend in Q4, which is also weighing on sentiment due to added near-term pressure on profitability.

• Volumes drove the revenue decline, with retail softness the main drag. Total unit sales fell 7.2% yr/yr and used comps were -9%, down from -6.3% in Q2 and in line with prior guidance.
• Retail used units fell 8% and used gross profit per unit (GPU) was $2,235, down $71 yr/yr. Wholesale units fell 6.2% and wholesale GPU was $899, down $116, hit by sharp depreciation.
• CAF income increased 9.3% yr/yr, helped by a securitization gain and higher servicing fees, partially offset by a 40 bp decline in net interest margin.
• The macro and industry backdrop remains challenging, with consumers still highly value focused and used vehicle pricing dynamics tightening near-term margins.
• Management said KMX's average selling prices have drifted higher versus the market, underpinning its move to lean into sharper pricing and higher marketing to better communicate value and re-accelerate sales trends.
• The CEO search is ongoing and the Board said it is moving with greater urgency given recent performance. Management also said it expects to share early learnings from its pricing and marketing actions on the Q4 call.

Briefing.com Analyst Insight

While KMX beat expectations, it is still premature to view this as a turnaround. Unit sales are declining, pressuring comps, and a challenging used vehicle backdrop and prior missteps are tightening GPU. That said, KMX is responding by planning to lower retail unit margins and increase marketing to better communicate its value and help re-accelerate sales trends. We did not get many incremental updates on the CEO search, but the Board emphasized it is moving with greater urgency, and we will be watching closely for both the permanent appointment and the early learnings from these actions on the Q4 call. Overall, KMX is still very much in a challenging position, and while the stock has bounced back from earlier lows, the stock hovering around unchanged suggests investors want to see more tangible improvement before stepping on the gas.

Micron (MU) delivered a historic performance for 1Q26, solidifying its position alongside NVIDIA (NVDA) as a dominant force in the AI ecosystem. The company shattered estimates for both revenue and earnings while providing a Q2 outlook that far exceeded market expectations. The blowout results have provided a significant lift to peer memory and storage stocks, including Sandisk (SNDK), Seagate Technology (STX) and Western Digital (WDC), as the market recognizes a broad structural shift in data storage demand driven by AI.

• The centerpiece of the report was the massive expansion in non-GAAP gross margin, which rose to 56.8% from 45.7% a year earlier. Guidance for Q2 projects a further leap to 68.0% (+/- 1.0%), driven by high-value products and extreme supply tightness.
• The dramatic rise in gross margins is primarily attributed to outsized demand from AI hyperscalers, which has created a tight supply environment for advanced memory like DDR5 and HBM.
• As manufacturers shift capacity to high-margin AI products, shortages have emerged in traditional segments, providing further upward pressure on pricing across the board.
• MU anticipates a multi-year "super cycle" in memory, with favorable supply/demand dynamics expected to persist through calendar 2026 and likely into 2027.
• Revenue in the Cloud Memory segment surged by 99% yr/yr to $5.28 bln, fueled by the rapid build-out of AI infrastructure by data center customers.
• Within Cloud Memory, High-bandwidth memory (HBM) remains the core growth driver. MU has already secured price and volume agreements for its entire calendar 2026 HBM supply.
• The company is making rapid progress on its next-generation HBM4, which is on track to ramp with high yields in 2Q26.
• The total addressable market for HBM is now projected to reach $100 bln by 2028, two years earlier than previously forecast.
• Revenue in Mobile and Client jumped 63% to $4.26 bln, as the integration of AI capabilities into smartphones and PCs (AI at the "edge") requires significantly higher memory content per device.

Briefing.com Analyst Insight:

MU has effectively silenced any remaining doubts regarding the durability of the AI-driven memory cycle. By delivering record-breaking results and guidance that wasn't in the same orbit as prior estimates, the company has transitioned from a cyclical recovery story to a secular growth powerhouse. While traditional consumer segments like PCs and smartphones remain more balanced, the shift toward AI-heavy configurations is creating a pricing floor that benefits the entire industry. The primary risk remains the potential for eventual oversupply if capital expenditures -- which MU hiked to $20 bln -- outpace long-term demand. However, with 2026 supply already effectively sold out and HBM4 on the horizon, MU currently commands a "strategic asset" status that justifies its recent valuation surge. In short, MU and NVDA currently represent the "gold standard" for play in AI infrastructure.

Darden Restaurants is trading higher despite missing on EPS for the second consecutive quarter, as investors focused on solid top-line performance and meaningfully improved outlook. The company reported in-line revenue, reaffirmed FY26 EPS guidance of $10.50-10.70, and raised both FY26 revenue and comp guidance, underscoring improving demand trends across its portfolio (Olive Garden, LongHorn Steakhouse, Ruth's Chris, Chuy's).

• Olive Garden delivered robust comps of +4.7%, driven by the success of the Never Ending Pasta Bowl promotion and continued momentum in first-party delivery. The $13.99 starting price resonated strongly with guests, while the partnership with Uber Direct continues to attract younger, more affluent customers who value convenience and order more frequently. The strength in delivery is helping fund investments such as the rollout of a lighter portion menu, featuring seven existing dishes with smaller portions and lower prices, which is expected to be completed systemwide in January.
• LongHorn Steakhouse posted standout comps of +5.9%, aided by the return of a guest-favorite seasonal item, the 14 oz 7-pepper crusted New York strip, which received strong guest and social media engagement. The Other segment saw comps of +3.1%, driven by solid performance at Yard House, while Fine Dining comps rose +0.8%, supported by strength at Ruth's Chris Steak House.
• The EPS miss was largely attributable to elevated commodity costs, particularly near-record beef prices, which weighed on margins across all brands except Olive Garden. Management noted beef costs are likely to remain elevated into Q3 (Feb), with some relief expected in Q4 (May).

Briefing.com Analyst Insight:

Investors appear willing to look past the EPS miss, as it was driven primarily by persistently high beef costs rather than demand weakness. The more important takeaway is the strong and consistent comp performance and the significant increase in FY26 comp and revenue guidance. This suggests Darden is executing well in an environment where consumers are increasingly value-conscious. Olive Garden's pricing discipline, promotions, and delivery strategy highlight management's strong grasp of current consumer behavior. In our view, Darden "gets it," and the market is rewarding the company for delivering value-driven traffic growth despite ongoing commodity cost pressures.

General Mills (GIS) is moving higher today after reporting its Q2 (Nov) results this morning. The packaged food giant beat EPS expectations, though EPS fell sharply yr/yr as stepped-up brand investment and higher costs continued to squeeze margins. Revenue also declined, but less than analysts had expected, falling 7.2% yr/yr to $4.68 bln. GIS also reaffirmed its FY26 guidance.

• Organic volume and organic sales improved by 1 pt and 2 pts, respectively, compared to Q1, with organic volume flat and organic sales down 1%.
• Notably, organic volume in North America Retail increased 1%, its first growth in more than four years, though organic sales in the segment still fell 3% as unfavorable price/mix offset the volume improvement.
• North America Pet and International also improved, with Pet returning to organic sales growth (+1%) and International organic sales up 4%, helped by a return to +4% volume growth after -2% in Q1.
• These results reflect progress in its "remarkability" strategy, leaning into value investments, more innovation/product news, and higher advertising, but that push is still weighing on profitability, with adjusted operating margin down 290 bps to 17.4%.
• GIS also noted continued pressure on consumers, who are buying more on promotion, raising the cost of volume even though promo depth and frequency are largely unchanged, which reinforces the need for its value investments.
• Looking ahead, it expects momentum to keep building through the remainder of the year as its investments gain traction and comparisons turn more favorable.

Briefing.com Analyst Insight

On paper, this report still looks a bit rough, with sharp yr/yr declines on the top and bottom line and margins remaining under pressure amid a difficult operating environment and continued reinvestment in value and innovation. That said, underlying trends finally improved. What really stood out was North America Retail returning to organic volume growth for the first time in over four years. Organic sales in the segment still declined, but with two-thirds of the base pricing work now in place and comparisons easing later in the year, management sounded confident that trends can keep improving. It also highlighted continued share holds and gains, which suggests the portfolio is holding up reasonably well in a tough backdrop, and it remains upbeat on the Love Made Fresh rollout in Pet. Overall, this report showed progress on the strategy, and the key now is seeing that volume and share momentum continue to build from here.