A lighter calendar still brings several important tests for AI infrastructure, software, and consumer demand.
May 24, 2026
Editor's note: Last week, Nvidia $NVDA posted another blockbuster earnings report. However, the market punished shareholders for the 4th consecutive quarter.
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The busiest stretch of earnings season is behind us, but there are still plenty of big reports coming out.
The companies tied to AI are still posting big numbers, but the market is becoming more selective about which stories it rewards.
And next week gives us another wave of important tests.
While the calendar is lighter, there are still several key earnings reports to keep on your radar.
But before we look ahead, let’s review what we learned last week.
Despite reporting a big double beat, Applied Materials $AMAT was punished for reporting earnings, snapping a 2-quarter beat streak.
Over longer timeframes, this is still one of our favorite names in the semiconductor industry. However, the market's expectations have gotten ahead of themselves in the short-term.
There were no S&P 500 earnings reactions to cover, so we wrote about the Google of China: Baidu $BIDU.
BIDU reported better-than-expected headline results and rallied nearly 2% in reaction to the news. What's more, the company's AI cloud infrastructure revenue grew 79% YoY. This was led by the GPU cloud business, which grew 184% YoY.
Home Depot $HD (one of the world's largest discretionary stocks) reported a double beat and rallied for its 2nd consecutive positive earnings reaction.
And on a relative basis, the consumer discretionary sector is trading at its lowest level since 2012 compared to the broader market. If HD can catch some positive post-earnings drift, it'll be a huge help for this key intermarket ratio.
Following a big double beat, TJX Companies $TJX rallied nearly 6% for its best earnings reaction in 8 quarters. The company is gaining market share from its competitors while increasing its profit margin.
Like AMAT earlier in the week, Analog Devices $ADI beat its headline expectations but failed to rally. Fundamentally, the company is crushing it, but the market's expectations have gotten ahead of themselves.
The world's largest stock, Nvidia $NVDA, reported another blockbuster quarter, but the market didn't care. The stock fell nearly 2% for its 4th consecutive negative earnings reaction.
Despite reporting a double beat and raising guidance, Intuit $INTU fell more than 20% for its worst earnings reaction ever. This move put the finishing touches on a massive top, and the stock is now trading at the lowest level since 2020.
What's happening next week 👇
The earnings calendar finally slows down next week, but there are still plenty of big earnings reports upcoming.
And because the market is closed on Monday, the action will start on Tuesday.
Before Tuesday's opening bell, we’ll hear from AutoZone $AZO, Pony AI $PONY, and the Chinese neocloud stock VNET Group $VNET.
Then, after the close, the spotlight shifts to technology, with Zscaler $ZS and Semtech $SMTC set to report.
Wednesday brings another mix of retail, banks, software, and AI infrastructure.
Dick’s Sporting Goods $DKS reports before the open, along with Bank of Nova Scotia $BNS and Bank of Montreal $BMO.
Then after the close, we’ll hear from Marvell $MRVL, Salesforce $CRM, Snowflake $SNOW, HP $HPQ, and more.
And Thursday will be the biggest day of the week.
Before the open, we’ll hear from Burlington $BURL, Dollar Tree $DLTR, Best Buy $BBY, Toronto Dominion $TD, Royal Bank of Canada $RY, and Futu $FUTU.
After the close, tech stocks will take over with Dell Technologies $DELL, Autodesk $ADSK, MongoDB $MDB, NetApp $NTAP, Okta $OKTA, SentinelOne $S, and UiPath $PATH all reporting.
Finally, there are no notable reports on Friday.
The three earnings events we’ll be watching closest are DELL, ZS, and COST.
Let’s start with Dell...
Dell reports Thursday after the close, and the market is looking for $34.97 billion in revenue and $2.91 in earnings per share.
Heading into its earnings report, DELL couldn't look better.
After breaking out from a massive accumulation pattern earlier this year, DELL has gone almost straight up and more than doubled.
What's more, the stock closed last week at a new all-time high, and last quarter’s earnings reaction was the best in the stock's history.
That is exactly what we want to see...
The chart confirms the fundamentals, and the fundamentals confirm the chart.
Last quarter, Dell reported record revenue of $33.38 billion, up 39% YoY, while non-GAAP earnings per share surged 45% over the same period.
The AI story is doing the heavy lifting here, with AI-optimized server revenue up more than 300% YoY in the quarter, and management guiding to roughly $50 billion in AI-optimized server revenue in the next fiscal year.
Dell also exited the year with a $43 billion AI backlog, giving investors a clear reason to keep rewarding the stock.
In other words, Dell has become one of the best ways to express a bullish thesis on the AI infrastructure buildout beyond the obvious mega-cap semiconductor names.
And so long as DELL remains in a primary uptrend and making new all-time highs, we expect this name to remain a leader in the AI revolution.
Next up is Zscaler...
Zscaler reports Tuesday after the close, and the market is looking for $836 million in revenue and $1.01 in earnings per share.
Heading into Tuesday's earnings report, Zscaler is sitting at a key inflection point.
Over the past few months, ZS has carved out a textbook bearish-to-bullish reversal, and it's now pressing right into the upper bound of that structure.
What's more, the breakout level lines up perfectly with the volume-weighted average price anchored to last year’s peak.
In other words, this is a critical level of interest.
Above $182, ZS can gap-n-go. If buyers take control after earnings, this stock could quickly shift from a broken software name into a fresh leadership candidate.
But if ZS fails here, the most likely outcome is more sideways churn.
The earnings scorecard explains why this report matters so much.
Zscaler has been punished for 3 consecutive earnings events, even though the business continued to execute.
Last quarter, Zscaler's revenue grew 26% YoY, ARR grew 25%, and management raised its full-year guidance for ARR, revenue, operating income, and EPS.
The fundamental story is not the problem...
Zscaler is positioning itself as the security platform for the AI era, as AI adoption expands the attack surface and creates new demand for zero-trust security, AI protection, and data security.
Now the market needs to care...
If ZS can finally flip earnings sentiment from a headwind to a tailwind, the technical reversal becomes much more believable.
All eyes are on $182.
Finally, we have Costco...
Costco reports Thursday after the close, and the market is looking for $69.61 billion in revenue and $4.98 in earnings per share.
Costco is one of the highest-quality consumer staples stocks in the world, but the chart is not exactly giving the bulls a layup.
Last week, Costco tried to break out to new all-time highs and failed miserably.
That failed breakout came right after Walmart $WMT sold off hard on a double beat, which only adds to the concern.
Costco is not Walmart, but the two trade close enough that Walmart’s reaction cannot be ignored.
Heading into the report, the line in the sand for COST is at $1,078.
Below that level, COST looks more like a bull trap than a fresh breakout. Above it, the buyers can regain control and put the stock back on track for new highs.
Fundamentally, there is plenty to like about Costco.
Last quarter, Costco grew net sales 9.1% YoY, and digitally enabled comparable sales jumped more than 20% over the same period.
Membership fee income also grew 13.6% YoY, powered by membership growth and executive upgrades.
Costco is one of the strongest retail businesses in the world, but that doesn't mean the stock is ready to run higher.
After last week’s failed breakout attempt and Walmart’s ugly reaction, we’re not nearly as bullish on COST heading into the print as we are on Dell and Zscaler.
So this week, the question is simple.
Can Costco reclaim $1,078 and erase the bull trap?
Or does the failed breakout stick?
We’ll find out Thursday after the close.
Recently, we've made a lot of portfolio moves at the Premium Beat Report as earnings season has provided us with a bunch of new signals.
If you want access to our next trade, join our growing community at the Premium Beat Report.
We hope you have a good holiday weekend,
-The Beat Team
Editor's Note: Steve Strazza just pulled back the curtain on the simple system behind his short-term trading strategy.
It's the same system Steve has used to produce a +204% return on his portfolio in 30 days.
