AI forecasts, luxury sales and an inflation wait
Friday's five: Applied Materials' record quarter, Cisco's AI outlook, Richemont's sales growth, euro-area GDP and the 8:30 AM US producer-price report.
Good morning. Chipmaking equipment, networking and luxury goods lead Friday's earnings watch. The US inflation calendar has another entry at 8:30 AM ET, after this edition.
1. Applied Materials posts a record quarter
Applied Materials reported fiscal fourth-quarter revenue of $10.41 billion, up 53% from a year earlier, for the period ended October 25. GAAP earnings were $3.40 a share and adjusted earnings were $4.16. For fiscal first-quarter 2027, the company forecasts revenue of $11.1 billion, plus or minus $500 million, and adjusted earnings of $4.35 a share, plus or minus 20 cents. Those next-quarter figures are management's forecast, not reported sales or profit.
2. Cisco raises its AI revenue outlook
Cisco reported $18.5 billion in fiscal first-quarter revenue, up 24%, with adjusted earnings of $1.40 a share. Management now expects $9 billion in AI infrastructure revenue from hyperscale customers in fiscal 2027. That is a full-year forecast, not revenue already booked for the year. Cisco also projects total annual revenue of $74.8 billion-$75.8 billion. Our Cisco results story separates quarterly results from the outlook.
3. Richemont's sales rise, with a profit caveat
Richemont reported first-half sales of EUR12.3 billion, up 16% at actual exchange rates and 17% at constant rates, for the six months ended September 30. Second-quarter growth was 13% at constant rates, slower than the first quarter's 20%. Reported operating profit reached EUR3.1 billion, including EUR229 million in positive tariff-related one-time items. Excluding those items, operating profit was about EUR2.9 billion. Read the Richemont results report.
4. Euro-area growth holds at 0.4%
Eurostat's latest flash estimate kept third-quarter euro-area GDP growth at 0.4% from the previous quarter. Employment was unchanged from the second quarter in both the euro area and the wider EU. These are seasonally adjusted quarterly changes, not annualized growth rates, and the flash figures can be revised. Our GDP and employment report covers the regional comparisons.
5. US producer prices are next
The October Producer Price Index is scheduled for 8:30 AM ET. No result is available at this edition's 8:00 AM stamp. The report measures producer-side price changes; it is not the same measure as consumer-price inflation. Today's calendar also lists the EIA natural-gas storage report for 10:30 AM ET.
