#financialresults

Q4 only looks “good” if you stop at the headline: revenue jumped +26%, but that’s almost entirely because Xerox bought Lexmark.

Strip that out and the underlying business is still shrinking by 9%. Cash is the real story: free cash flow for 2025 fell to about $130M, down from roughly $470M last year, a MASSIVE drop at the exact moment debt is crushing the company.

The snapshot that truly matters: Xerox has roughly $500M in cash, $4+ billion in debt, and only about $400–450M of equity left.

Goodwill sits around $2+ billion (Goodwill Guy will check this), meaning one big write-down and equity is basically gone on paper.

Interest expense alone is running close to $250M A YEAR. This is why management rolled out the warrant scheme before earnings as an attempt to reduce debt without spending cash and without going to bankruptcy court.

Q4 proved the company is operationally alive but financially boxed in.

The warrants, the timing, the messaging... all of it points to one thing: advanced financial engineering to avoid Chapter 11, not confidence in growth.

This is what survival mode looks like when you still want to stay in control.

https://investors.xerox.com/news-releases/news-release-details/xerox-releases-fourth-quarter-and-full-year-results-2

FCF of $133 mil for FY 25, and operating margin is 3.5% down 140 BP YOY.

TL;DR: Gross sales are up, but they are running out of money.

I mean, our results figures were really not that bad. What gives?

Microsoft’s Xbox hardware revenue has declined for three financial years in a row, and it looks like those declining revenues are going to continue throughout fiscal 2026. Xbox hardware revenue was down 32 percent year-over-year during the recent holiday quarter. Overall gaming revenue was also down 9 percent.

https://www.theverge.com/news/869493/microsoft-q2-2026-earnings-revenue-profits-windows-xbox-gaming-surface

IBM isn't a healthy company

https://techrights.org/n/2026/01/29/IBM_s_Financial_Performance_in_IBM_s_Own_Words_Money_Down_Debt_.shtml

https://www.ibm.com/downloads/documents/us-en/1550f7eea8c0ded6

Paste title in your search engine for details

That is not easy to do when most Financials are hitting all time high with the S&P, Congrats FIS Sr. Executives !!!!

Expect a weak earnings print and disappointing bonuses. The setup is already clear.

Revenue growth is barely positive and EPS is expected to decline year over year. Legacy segments continue to drag results while growth areas aren’t scaling fast enough to offset it. Meanwhile, the balance sheet is still weighed down by massive debt, limiting flexibility and magnifying every misstep.

Billions have been spent on buybacks at higher prices, yet the stock continues to underperform peers and the broader market. That’s textbook value destruction, capital out the door with nothing to show for it. Analysts have responded by trimming expectations, not raising them.

On the cost side, operating expenses are creeping higher while productivity gains remain elusive. Decisions that add friction instead of efficiency show up quietly in margins and execution, even if they’re never called out directly.

Bonuses follow the numbers. Flat growth, declining EPS, weak stock performance, and constrained free cash flow don’t justify upside payouts. At best, expect tight targets. At worst, expect “discipline.”

https://www.crn.com/news/ai/2026/ibm-q4-earnings-preview-5-things-to-know

Still have faith in our leadership?

https://www.forbes.com/sites/petercohan/2026/01/26/intel-cut-chip-capacity-at-the-worst-possible-time---and-its-stock-paid-the-price/

Dan, the heat is on you!!! Our CEO to profess Verizon's earnings this Friday (1/30/2026) morning.

Wells Fargo, lowers, Adjusts PT on Verizon Communications to $41 From $43, Maintains Equal weight Rating.

CSX Q4 Profit Down on Weak Demand, Severance

CSX reported a 2% profit slip in the fourth quarter. This decline was attributed to weak demand. Severance costs from recent layoffs also impacted results. The railroad earned $720 million, or 39 cents per share. CEO Steve Angel expects only modest economic growth for the coming year.

https://www.abc4.com/news/business/ap-business/ap-csx-railroad-profit-slips-2-as-shipping-demand-remained-weak-and-severance-costs-hurt-results/amp/

Lcation: Jacksonville, Florida

My manager told us that Optum Care on the west coast lost over a billion dollars last year, and that we have until the end of this year to break even. I can’t help but think that means layoffs.

https://www.stocktitan.net/sec-filings/XRX/s-3-xerox-holdings-corp-shelf-registration-statement-257169fede10.html

So they decided to print more shares. It's down ~12% pre market as of 8:50 EST.

WOW. There is never a good time to do something this stupid, but a week before earnings. This is super desperate.

Can someone who is smarter than me help me understand how good or bad the quarterly results, and because of timing, the annual results for 2025?

It seems like we had a really good year but I can be reading this wrong. But I'm getting upset that it looks like we had a good year but I know the compensation numbers are horrible this round. And if that's the case, they do not in fact pay for performance.

Looks like getting beaten down

How much is underwriting loss last year ? Is it more than a billion dollar ?

Just looked at the earnings for Shell’s chemical business coming up and margins dropped from 160 to 140 a metric ton, obviously giving the business a significant loss on top of the business already struggling. I think this is pretty much the last straw and Shell will either be closing or fire selling all chemical assets to stop the bleeding. Any thoughts?

Company releases are showing preliminary net outflows of US$12B for the month of December and US$26B for Q4 2025. This is one of the worst quarters in a long time. The company needs more change NOW! Lazy salespeople be gone!

All tech shares saw a drop today. But SAP's is a small drop in the bucket. Wait for the 29th when the quarterly financial results are out and you'll see how much faith investors actually have at SAP.

Investors are realizing two important things: (i) that SAP is abandoning its core revenue generating businesses for stupid AI features that do not work and no one wants to pay for, and (ii) that SAP has no real strategy to grow the company revenue. They're only focused on saving some operating costs using layoffs and by cutting down on employee salary budgets and benefits. But there is no real plan to make the company more profitable. There are better companies to invest in and that's where shareholders are focusing their wealth.

Also there has been a talk between SAP executives to restart share buybacks. Maybe that's why some of the millionaire executives are dumping their shares.

An on point post from @a9+1keyr10dv.

OK, here is the money crunch. There was ~$479,000,000 in cash or equivalents on the books on 9/30/25.

Great! (not really)

There are also 27,000 people on payroll. Divide the numbers and you get $17,740 per person. Great? No, not really.

Some people make a lot, some make terrible money. If the mean salary is $50,000/year and you divide that into $17,740, you get 35.4% of a year - or about 90 days of payroll.

Money is coming in still but this, and overhead, the cost of goods, and most importantly, the debt load, is too much to survive. The only way they can survive is to borrow money and they can't. It's too late to fire their way out of this, hence the lack of trying.

There are two smaller debt payments (both around $100 mil) due this year. Either one could end the ballgame.

Surprised nobody is talking about that here.

For the right price I think we should do exactly that. We need to focus efforts on turning around our core brands: Nike and Jordan. Converse is generating strategic as well as financial drag.

In another distant time it must have been quite a triumph to buy them but that era is long gone. Let’s attach our mask first.

From StockStory

3 Reasons to Sell TDC

Why Do We Think Teradata Will Underperform?
Despite the momentum, we don't have much confidence in Teradata. Here are three reasons there are better opportunities than TDC and a stock we'd rather own.

1. Declining Billings Reflect Product and Sales Weakness

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Teradata’s billings came in at $422 million in Q3, and it averaged 4.4% year-on-year declines over the last four quarters. This performance was underwhelming and shows the company faced challenges in acquiring and retaining customers. It also suggests there may be increasing competition or market saturation.

1. Low Gross Margin Reveals Weak Structural Profitability

For software companies like Teradata, gross profit tells us how much money remains after paying for the base cost of products and services (typically servers, licenses, and certain personnel). These costs are usually low as a percentage of revenue, explaining why software is more lucrative than other sectors.

Teradata’s gross margin is substantially worse than most software businesses, signaling it has relatively high infrastructure costs compared to asset-lite businesses like ServiceNow. As you can see below, it averaged a 59.4% gross margin over the last year. That means Teradata paid its providers a lot of money ($40.58 for every $100 in revenue) to run its business.

The market not only cares about gross margin levels but also how they change over time because expansion creates firepower for profitability and free cash generation. Teradata has seen gross margins decline by 0.9 percentage points over the last 2 year, which is poor compared to software peers.

1. Operating Margin in Limbo

While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products.

Looking at the trend in its profitability, Teradata’s operating margin might fluctuated slightly but has generally stayed the same over the last two years. Shareholders will want to see Teradata grow its margin in the future. Its operating margin for the trailing 12 months was 11.5%.

Final Judgment

We cheer for all companies solving complex business issues, but in the case of Teradata, we’ll be cheering from the sidelines. Following the recent rally, the stock trades at 1.8× forward price-to-sales (or $30.54 per share). This valuation is reasonable, but the company’s shaky fundamentals present too much downside risk. There are superior stocks to buy right now.

With all the money that execs have burned on RTO, a new Global HQ, and the stock tanking because that’s all Stankey knows how to do, how are feeling about bonuses?

Are we going to be paying for RTO, new HQ, and our horrific work culture out of our bonuses?

Really debating on dumping my stocks and reinvesting elsewhere since we continue to tank and can’t seem to stabilize.

Outside of ESPP contributors, employees being rewarded with stocks, executives; do people actually buy Nike stock? Trying to figure out why anyone would considering the results of the last 4 years especially when you compare it to the broader market where everyone else is up bigly it seems.

Seems like you could have thrown money at literally anything else and made money but still lost somehow on Nike. I guess I’m asking why any large investment firm or private investor would currently invest in Nike? Like what do they see that I am missing.

Anyone have information on bonuses this year? Up, down or same?

Salesforce Inc. gave an outlook for revenue in the current period that topped analysts’ estimates, suggesting the software company is persuading customers to buy its AI tools.

Revenue will be $11.1 billion to $11.2 billion in the period ending in January, the company said Wednesday in a statement. Analysts, on average, estimated $10.9 billion. Current remaining performance obligations, a measure of bookings, will increase about 15%, compared with analysts’ estimates of a 10% rise.

The revenue forecast includes 3 percentage points of growth from Informatica, a data integration software maker that Salesforce acquired last month in an $8 billion deal. The outlook for current remaining performance obligations includes 4 percentage points from Informatica.

The largest maker of software to track customer relationships is trying to push adoption of Agentforce — its AI tool that can complete tasks such as sales development and customer service without human supervision. Still, use has been largely limited to experimentation, in part due to customer confusion over pricing and disorganized data, wrote Derrick Wood, an analyst at TD Cowen, ahead of earnings.

Salesforce Chief Executive Officer Marc Benioff touted adoption of the AI tool, saying “our Agentforce and Data 360 products are the momentum drivers.”

Agentforce launched last year, and the company said it has closed more than 9,500 paid deals since then, an increase from 6,000 in the prior quarter.Annual recurring revenue for Salesforce’s division that includes AI-focused tools such as data organization and agents was $1.4 billion in the period ended Oct. 31, the company said.

The shares gained about 8% in extended trading after closing at $238.72 in New York. The stock has dropped 29% this year through Wednesday’s close as investors have grown concerned about AI disrupting incumbent application software makers.

In the fiscal third quarter, Salesforce reported that revenue increased 8.6% to $10.3 billion. Profit, excluding some items, was $3.25 per share. Analysts, on average, estimated adjusted earnings of $2.86 a share on $10.3 billion revenue, according to data compiled by Bloomberg. The current remaining performance obligation was $29.4 billion, while analysts expected $29.1 billion.

Earnings, excluding some items, will be $3.02 a share to $3.04 a share in the period ending in January. Analysts, on average, estimated $3.03.

For the full year ending in January, adjusted operating margin will be about 34%, in line with estimates.

The company is piling new debt on top of old debt again borrowing money to refinance what it is already refinanced block of debt.

Pull a block. Add a block. Raul smiling like all good. Until the market sneezes at the shaky debt tower. or it collapses under ongoing client exodus resulting in cashflow shortfall.

From Seeking Alpha on Snowflake trading at 267 today.

Wall Street expects the cloud-based data storage company to post an EPS of $0.31, implying a 55% increase, while revenue is expected to rise 25.3% to $1.18 billion for the quarter.

The company, during its Q2 earnings call, stated that it expects Q3 product revenue to come in between $1.125 billion and $1.13 billion.

We expect this to support NRR around ~125% and healthy new customer growth of +18-19% YoY,” Oppenheimer analyst Ittai Kidron highlighted in a research note.

Over the last two years, SNOW has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.

Over the last three months, EPS estimates have seen four upward revisions and one downward move, while revenue estimates have seen eight upward revisions, compared to one downward revision.

Since the start of the year, SNOW shares have gained over 70%, compared to nearly 16% rise in the broader S&P 500 index.

Oracle made $125M on $900M worth of rev from renting out data centers powered by Nvidia GPUs... this works out to a 14% profit margin. That’s a sh---y profit margin in a normal business, it’s VERY modest in a highly volatile industry like this one. It’s much smaller than the roughly 70% gross margin Oracle gets on non-AI services…

Q3 results "Revenue of $1.96 billion , up 28.3 percent, or 27.0 percent in constant currency"...."Operating cash flow of $159 million, up $43 million year-over-year.
Free cash flow(1) of $131 million, up $24 million year-over-year."

These are all up, yet everything else is down. "Headwinds, inflation, uncertain government blah blah" stock is tanking, entire company is on yard sale duty, your coworkers are disappearing.

Why do these numbers not add up?

Skimming off the top? SLT stowing extra cash away? What is happening?

WayDay was lower than expectations so they have to make the balance sheet up somewhere. Rob Peter to pay Paul.

https://investors.xerox.com/static-files/adf78906-cdf0-4fef-b8ce-21264d06bd9b

Debt servicing on the interest is up to around $1.1 million a DAY! Each and every day, this is not going away. Not principal, just the interest. Under 'Total Interest expense.'

That''s 400 million a year, just on the vig.

• Wendy's plans to close about 300 stores nationwide beginning in late 2025
• The closures represent a mid single-digit percentage of the chain's 6,000 U.S. locations
• Interim CEO Ken Cook announced the plan during a November 7 investor call
• The decision follows the earlier closure of 140 Wendy's locations in the previous year
• Closures will target underperforming restaurants that hurt franchisee profitability
• Some locations may be improved or transferred to new operators instead of closing
• The exact list of stores affected has not yet been released
• Closures are set to begin in the fourth quarter of the year
• Wendy's reported a 4.7 percent drop in same-store sales and a 2.6 percent global sales decline in Q3
• The company aims to strengthen brand performance and financial health through these actions

Share price down after results? What’s going on? More layoff ahead ?

Topgolf Callaway Brands President and CEO Chip Brewer revealed that his company eliminated “about 300 positions” in response to the impact of incremental tariffs. “We intend to mitigate as much of this impact as possible via efficiency improvements, pricing and vendor negotiations,” Brewer said on the company’s Q3 earnings call on Thursday.

https://www.sportsbusinessjournal.com/Articles/2025/11/07/topgolf-callaway-reveals-layoffs-raises-full-year-financial-guidance/

The happy-talk non-GAAP will be left out of the formal earnings filing, and we'll see how bad it really is. It's due 40 days after quarter end, which is Sunday. They will wait until after market close to do so.