Technology

See also: Technical analysis on Broadcom · Broadcom company tracker

Last Updated: 18 August 2026

Broadcom Inc. is a fabless semiconductor and enterprise software company that has become the second-largest supplier of AI silicon in the world behind NVIDIA, and the owner of VMware. Its fiscal year ends on the Sunday nearest 31 October, so the most recent audited full year is FY2025, ended 2 November 2025, and the most recent reported quarter is Q2 FY2026, ended 3 May 2026 and reported on 3 June 2026. Q3 FY2026 has not yet been reported and is scheduled for 2 September 2026. This report is built entirely from Broadcom's SEC filings, earnings releases and SEC XBRL company facts. Every figure below is sourced from a primary filing; there are no analyst ratings or price targets anywhere in it.

1. Company Snapshot

Field	Value
Ticker / exchange	AVGO, Nasdaq Global Select Market
Headquarters	Palo Alto, California, United States
Fiscal year end	Sunday nearest 31 October. FY2025 ended 2 November 2025; FY2026 ends 1 November 2026
CEO / Leadership	Hock E. Tan, President and Chief Executive Officer since March 2006. Amie Thuener O'Toole, Chief Financial Officer, effective 12 June 2026. Dr Henry Samueli, Chairman of the Board
Employees	Approximately 33,000 worldwide as of 2 November 2025, with approximately 57 per cent in research and development roles (FY2025 Form 10-K)
Revenue (FY2025)	$63,887m, up 23.9 per cent on FY2024
Revenue (trailing twelve months to 3 May 2026)	$75,465m
GAAP net income (FY2025)	$23,126m
Adjusted EBITDA (FY2025)	$43,004m, 67.3 per cent of revenue
Market capitalisation	Approximately $1,867bn at $392.43 per share (17 August 2026)
Shares outstanding	4,757,580,198 as of 29 May 2026 (Q2 FY2026 Form 10-Q cover page)
Reportable segments	Two: Semiconductor Solutions and Infrastructure Software
Dividend	$0.65 per share per quarter; company target of $2.60 per share for FY2026
Recent corporate action	Ten-for-one forward stock split completed 12 July 2024. All per-share figures in this report are on the post-split basis

You can follow the price action on our Live Charts page and track the scheduled macro releases that move semiconductor names on the Economic Calendar.

2. Bull and Bear Case

Bull Case

• Custom AI silicon franchise with named multi-year customers: AI semiconductor revenue reached $10.8bn in Q2 FY2026, up 143 per cent year on year, and management guided Q3 FY2026 AI revenue to approximately $16.0bn. Broadcom has signed long-term agreements with Google for TPUs through up to 2031, Meta for MTIA silicon through 2029, Apple for custom ASICs through 2031, and OpenAI for 10 gigawatts of accelerators to be deployed between the second half of 2026 and the end of 2029.
• Contracted backlog of unprecedented size: remaining performance obligations stood at $164.6bn at 3 May 2026, an audited disclosure in the Form 10-Q, of which approximately 30 per cent is expected to convert to revenue within twelve months. That is more than twice trailing twelve-month revenue already under contract.
• Extreme cash conversion from a fabless model: capital expenditure was just $231m on $22,187m of Q2 FY2026 revenue, so free cash flow tracks operating cash flow almost one for one. Trailing twelve-month operating cash flow was $33,622m against capital expenditure of $860m, giving free cash flow of $32,762m.
• Networking attaches to every accelerator win: Broadcom is the merchant Ethernet standard for AI fabrics through Tomahawk and Jericho silicon, so a custom accelerator design win pulls high-margin switching and optical content with it. Non-GAAP gross margin was 77.1 per cent and adjusted EBITDA margin 69 per cent in Q2 FY2026.
• Software segment now a large recurring base: Infrastructure Software generated $27,029m in FY2025, up from $7,637m in FY2023, after VMware perpetual licences were converted to multi-year enterprise-wide subscriptions centred on VMware Cloud Foundation.

Bear Case

• Concentration risk is now acute: the FY2025 Form 10-K states that the top five end customers accounted for approximately 40 per cent of net revenue. With AI silicon at roughly 49 per cent of Q2 FY2026 group revenue and confined to a handful of hyperscalers, a single customer deciding to in-source or delay would be severe.
• A $29bn contingent lease backstop appeared as a subsequent event: on 8 June 2026 Broadcom arranged for an investor partner to assume AI rack purchase and lease agreements with a customer, and entered a backstop of that customer's five-year lease obligations with maximum exposure of $29bn. This converts part of a chip vendor's risk profile into a financing risk profile.
• Software growth is decelerating and drawing regulators: Infrastructure Software grew only 9 per cent year on year in Q2 FY2026. CISPE filed a formal competition complaint with the European Commission on 19 March 2026 over VMware licensing and the termination of the VMware Cloud Service Provider programme in Europe, alleging cumulative cost increases of more than 1,000 per cent and requesting interim measures.
• Valuation leaves no room for a stumble: the shares trade on roughly 65 times trailing GAAP earnings and roughly 25 times trailing sales, against a five-year revenue compound annual growth rate of 23.5 per cent that is itself flattered by the VMware acquisition rather than being wholly organic.

3. Business Segments

Broadcom reports exactly two segments. The table below shows the FY2025 full-year split, with the Q2 FY2026 position noted alongside because the mix has shifted sharply toward semiconductors as AI has ramped.

Segment	% of revenue	What it is
Semiconductor Solutions	58 per cent of FY2025 revenue ($36,858m); 68 per cent in Q2 FY2026 ($15,009m)	Custom AI accelerators designed with and for individual hyperscalers, Ethernet switching and routing silicon (Tomahawk, Jericho), optical and SerDes connectivity, wireless RF front-end filters, broadband, storage and industrial products. Grew 22 per cent in FY2025 and 79 per cent year on year in Q2 FY2026
Infrastructure Software	42 per cent of FY2025 revenue ($27,029m); 32 per cent in Q2 FY2026 ($7,178m)	Mission-critical enterprise software licensing: VMware Cloud Foundation private cloud, the former CA mainframe portfolio, Symantec endpoint security and Brocade storage networking. Grew 26 per cent in FY2025 but only 9 per cent year on year in Q2 FY2026
Memo item: AI semiconductor revenue (inside Semiconductor Solutions)	Approximately 31 per cent of FY2025 group revenue ($20bn); approximately 49 per cent in Q2 FY2026 ($10.8bn)	Custom accelerators (XPUs) and AI networking silicon. Disclosed by management as a sub-line rather than a reportable segment. Up 65 per cent in FY2025 and 143 per cent year on year in Q2 FY2026

Broadcom does not break out VMware or VMware Cloud Foundation revenue separately within Infrastructure Software. Sales to distributors accounted for 48 per cent of net revenue in each of FY2025 and FY2024.

4. Business Model and Moat

How it makes money. Broadcom sells silicon and software into two very different buying centres. On the semiconductor side it co-designs custom accelerators and networking chips with a small number of very large customers, then books high-margin revenue against multi-year supply agreements. On the software side it licenses mission-critical enterprise infrastructure on multi-year, enterprise-wide subscriptions with minimum commitments. Manufacturing is outsourced, primarily to TSMC, with internal fabs retained only for proprietary processes such as FBAR filters and GaAs and InP lasers. That makes capital expenditure negligible relative to revenue and means free cash flow tracks operating cash flow closely.

Where the moat comes from. Three layers reinforce each other. First, design incumbency: once a hyperscaler co-designs an accelerator with Broadcom, switching means re-architecting silicon, firmware and the rack network together, and the FY2025 Form 10-K notes that many major customer relationships are the result of years of collaborative product development. Second, the networking attach: Broadcom is effectively the merchant Ethernet switch standard for AI fabrics, so an accelerator win drags high-margin switching and optical silicon with it. Third, renewal economics in software: mainframe and VMware workloads are among the stickiest in enterprise IT, and the shift to enterprise-wide subscriptions locked in multi-year commitments.

What the VMware repricing actually did. Broadcom retired VMware's perpetual licences and collapsed a sprawling catalogue into a small number of subscription bundles centred on VMware Cloud Foundation. Commercially this converted a low-growth licence-and-maintenance business into a high-margin recurring one, taking Infrastructure Software from $7,637m in FY2023 to $27,029m in FY2025. The cost has been customer and regulatory friction. AT&T litigated over an alleged 1,050 per cent price increase before settling confidentially in November 2024, VMware remains in litigation with Siemens over allegedly unlicensed usage, and CISPE has taken the European licensing model to Brussels. The segment decelerating to 9 per cent year-on-year growth in Q2 FY2026 suggests the one-off repricing benefit is annualising out.

Customer concentration, as disclosed. The FY2025 Form 10-K states that aggregate sales through all channels to the top five end customers accounted for approximately 40 per cent of net revenue. Named AI customers now include Google, Meta, OpenAI, Anthropic and Apple.

5. Financial Health

All figures below are taken from Broadcom's Forms 10-K and 10-Q, its quarterly earnings releases, and SEC XBRL company facts for CIK 0001730168. Per-share figures are on the post-split basis throughout following the ten-for-one split completed on 12 July 2024.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021 (ended 31 Oct 2021)	27,450	n/a	$1.50	$2.80	$1.44	$39,440m
FY2022 (ended 30 Oct 2022)	33,203	+21.0%	$2.65	$3.76	$1.64	$39,075m
FY2023 (ended 29 Oct 2023)	35,819	+7.9%	$3.30	$4.23	$1.84	$37,621m
FY2024 (ended 3 Nov 2024)†	51,574	+44.0%	$1.23	$4.87	$2.11	$66,295m
FY2025 (ended 2 Nov 2025)	63,887	+23.9%	$4.77	$6.82	$2.36	$61,984m

† FY2024 is not organically comparable with FY2023. VMware closed on 22 November 2023 and therefore contributed roughly eleven months to FY2024 and nothing to FY2021 through FY2023. Infrastructure Software revenue jumped from $7,637m to $21,478m across that break. FY2024 GAAP earnings per share also fell to $1.23 from $3.30 because of VMware purchase accounting and intangible amortisation, including a GAAP net loss of $1,875m in Q3 FY2024. The adjusted earnings per share column strips those purchase-accounting effects out and is the more comparable series.

Long-term debt is the non-current carrying amount tagged as LongTermDebtAndCapitalLeaseObligations in each year's Form 10-K. Including the current portion, total debt was $65,136m at 2 November 2025 and $64,907m at 3 May 2026.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 FY2026 (ended 3 May 2026)	$22,187m	$2.44	$1.91
Q1 FY2026 (ended 1 Feb 2026)	$19,311m	$2.05	$1.50
Q4 FY2025 (ended 2 Nov 2025)	$18,015m	$1.95	$1.74
Q3 FY2025 (ended 3 Aug 2025)	$15,952m	$1.69	$0.85
Q2 FY2025 (ended 4 May 2025)	$15,004m	$1.58	$1.03
Q1 FY2025 (ended 2 Feb 2025)	$14,916m	$1.60	$1.14
FY2025 total (ended 2 Nov 2025)	$63,887m	$6.82	$4.77

Q3 FY2026 covers the quarter ended 2 August 2026 and has not yet been reported; results are scheduled for 2 September 2026. Management guided Q3 FY2026 revenue to approximately $29.4bn, non-GAAP operating income to approximately 67 per cent of revenue and adjusted EBITDA to approximately 68 per cent of revenue.

Cash flow and balance sheet. FY2025 operating cash flow was $27,537m against capital expenditure of $623m, giving free cash flow of $26,914m. On a trailing twelve-month basis to 3 May 2026, operating cash flow was $33,622m and capital expenditure $860m, giving free cash flow of $32,762m. Cash and cash equivalents were $19,628m at 3 May 2026 against total debt of $64,907m, so net debt was approximately $45.3bn. During the first half of FY2026 Broadcom repurchased $8,450m of stock, with $10.1bn of authorisation remaining at 3 May 2026.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Priced at $392.43 per share on 17 August 2026. The last completed regular session close was $392.99 on 14 August 2026. Trailing twelve-month figures are the sum of Q3 FY2025, Q4 FY2025, Q1 FY2026 and Q2 FY2026.

Metric	Value
Market cap	Approximately $1,867bn ($392.43 x 4,757,580,198 shares outstanding per the Q2 FY2026 Form 10-Q cover page)
Enterprise value	Approximately $1,912bn (market cap $1,867bn + total debt $64,907m - cash and equivalents $19,628m, both per the 3 May 2026 balance sheet). Net debt is approximately $45.3bn
Trailing P/E (GAAP)	Approximately 65.4x on trailing twelve-month GAAP diluted EPS of $6.00. On trailing twelve-month non-GAAP diluted EPS of $8.13 the same price is approximately 48.3x, and the gap between the two is almost entirely VMware intangible amortisation
P/E (forward)	Approximately 20.1x on a forward EPS estimate of $19.53. Treat with caution: that estimate is far above any FY2026 run rate, since first-half FY2026 non-GAAP EPS was $4.49, and almost certainly spans FY2027. Broadcom itself gives no EPS guidance, only revenue and margin
P/S (TTM)	Approximately 24.7x (market cap $1,867bn / trailing twelve-month revenue $75,465m)
EV/EBITDA (TTM)	Approximately 46x on GAAP EBITDA. EBITDA of approximately $41.4bn is trailing twelve-month operating income of $32,746m plus depreciation and amortisation of approximately $8.6bn, of which $8,014m is amortisation of intangible assets and approximately $0.6bn is depreciation. Broadcom's own trailing twelve-month adjusted EBITDA of $51,292m, which excludes stock-based compensation and restructuring, gives approximately 37x on the same enterprise value. The wide gap is the VMware purchase-accounting amortisation running through GAAP
P/FCF	Approximately 57x (market cap $1,867bn / free cash flow $32,762m; free cash flow = trailing twelve-month operating cash flow $33,622m - capital expenditure $860m per the cash flow statements)
52-week high	$495.00 intraday. The highest closing price in the trailing 52 weeks was $480.81 on 2 June 2026
52-week low	$281.87 intraday. The lowest closing price in the trailing 52 weeks was $287.49 on 21 August 2025
Short interest (% of float)	1.31 per cent. 61,196,152 shares short at the 31 July 2026 settlement date against a free float of 4,698,966,810 shares. Short interest has risen roughly 20 per cent since April 2026 but remains very low in float terms
Days to cover	3.22 on the Nasdaq calculation using 19.02m average daily volume at the 31 July 2026 settlement date. A narrower volume window gives 2.87
Dividend yield	Approximately 0.66 per cent on the annualised $2.60 per share FY2026 target rate
Price/book	Approximately 21.3x on book value per share of $18.43

7. What Are They Building

Custom accelerators for five named customers. Broadcom's XPU business designs application-specific AI accelerators alongside individual hyperscalers rather than selling a merchant GPU. Google is the longest-standing relationship, and on 6 April 2026 the two signed a long-term agreement covering custom TPUs across future generations plus a supply assurance agreement for networking and components for Google's next-generation AI racks through up to 2031. Under the same expansion, Anthropic will access approximately 3.5 gigawatts of next-generation TPU-based compute from 2027. On 14 April 2026 Broadcom announced an extended multi-year, multi-generation partnership with Meta covering multiple gigawatts of Meta's MTIA silicon through 2029, with an initial commitment above one gigawatt and first silicon on a 2nm process. On 6 July 2026 Broadcom and Apple entered new multi-year agreements through 2031 for a range of custom ASIC products across multiple generations of Apple products.

The OpenAI programme. Announced on 13 October 2025, Broadcom and OpenAI are collaborating to deploy 10 gigawatts of OpenAI-designed custom accelerators together with Broadcom Ethernet scale-up and scale-out networking. Rack deployments are targeted to begin in the second half of 2026 and complete by the end of 2029. This is the single largest capacity commitment in the portfolio and the main reason management has been able to talk about an eighteen-month backlog running through the first half of FY2027.

Ethernet for AI fabrics. The networking roadmap is what makes the accelerator wins profitable. Tomahawk 6 delivers 102.4 terabits per second of switching capacity, Tomahawk Ultra targets 250-nanosecond latency for scale-up fabrics, and Jericho4 is aimed at clusters of more than a million accelerators spanning multiple data centres. Broadcom's position here is why an XPU design win reliably drags high-margin switching and optical content along with it.

VMware Cloud Foundation. On the software side the build is the consolidation of VMware's catalogue into VMware Cloud Foundation as a single private-cloud platform, with licence portability that lets customers move environments between on-premises data centres and supported cloud endpoints. The company's stated aim is that the enterprise-wide licence model reduces complexity and eases renewals. The commercial results have been strong and the regulatory reception has not been; see Section 10.

Discuss how these AI supply agreements are being read by other traders in the ChartsView Forum.

8. Peer Comparison

Market capitalisations were re-checked live on 18 August 2026. Metrics are each from the named company's own results release or SEC filing.

Peer	Market cap (Aug 2026)	Key 2025 metric
NVIDIA (NVDA)	Approximately $5,450bn	Data-centre revenue of $193.7bn in FY2026, ended 25 January 2026, up 68 per cent year on year; Q1 FY2027 data-centre revenue a record $75.2bn, up 92 per cent
AMD	Approximately $826bn	Q2 2026 Data Center segment revenue of $6.7bn, up 107 per cent year on year, after $5.8bn and 57 per cent growth in Q1 2026
Texas Instruments (TXN)	Approximately $258bn	FY2025 revenue of $17,682m, up 13 per cent on FY2024's $15,641m, per SEC XBRL company facts
Marvell Technology (MRVL)	Approximately $210bn	FY2026 revenue of $8,195m, up 42 per cent year on year and a record; custom-silicon revenue of $1.5bn in FY2026, guided to grow more than 20 per cent in FY2027
Qualcomm (QCOM)	Approximately $170bn	FY2025 revenue of $44.3bn for the year ended 28 September 2025, up 13.6 per cent, with diluted EPS of $9.38
Astera Labs (ALAB)	Approximately $55.5bn	FY2025 revenue of $852.5m, up 115 per cent year on year; Q4 2025 revenue of $270.6m, up 92 per cent
Credo Technology (CRDO)	Approximately $52.7bn	Q2 FY2026 revenue of $268m, up 272 per cent year on year, with FY2026 guided to more than 170 per cent growth

For context on the same basis, Broadcom's own AI semiconductor revenue was $20bn in FY2025 with management guiding to approximately $56bn in FY2026. On revenue Broadcom is a clear second to NVIDIA in AI silicon and well ahead of Marvell in custom accelerators.

9. Insider Activity

Chief Executive Officer Hock E. Tan, who has led Broadcom since March 2006, made no open-market purchases or sales in the six months to 17 August 2026. His only Form 4 activity in the window was a gift of 22,000 shares on 8 April 2026. The wider picture is heavily one-directional selling, dominated by Chairman Henry Samueli's two programmed tranches. The table below is drawn from Form 4 filings under issuer CIK 0001730168; multi-tranche sales are aggregated at a weighted average price.

Name	Date	Type	Shares	Price	Value	Plan Type
Mark D. Brazeal, Chief Legal and Corporate Affairs Officer	10 Jul 2026	Sale	25,000	$401.33	Approximately $10.03m	No 10b5-1 flag on filing
Gayla J. Delly, Director	8 Jul 2026	Sale	1,890	$385.38	Approximately $0.73m	No 10b5-1 flag on filing
Justine F. Page, Director	29 Jun 2026	Sale	1,602	$373.86	Approximately $0.60m	No 10b5-1 flag on filing
Henry Samueli, Chairman of the Board	24 Jun 2026	Sale, multi-tranche	654,241	Approximately $381 weighted average	Approximately $249m	Rule 10b5-1 plan
Amie Thuener O'Toole, Chief Financial Officer	15 Jun 2026	Award, new-hire equity grant	50,000	Nil	Nil	Not applicable
Harry L. You, Director	11 Jun 2026	Open-market purchase	1,000	$373.57	$373,570	No 10b5-1 flag on filing
S. Ram Velaga, President, Infrastructure Software Group	8 to 10 Apr 2026	Sale, multi-tranche	38,215	Approximately $355 weighted average	Approximately $13.60m	No 10b5-1 flag on filing
Hock E. Tan, President and Chief Executive Officer	8 Apr 2026	Gift, disposal	22,000	Nil	Nil	No 10b5-1 flag on filing
Charlie B. Kawwas, President, Semiconductor Solutions Group	8 Apr 2026	Sale	10,000	$345.23	Approximately $3.45m	No 10b5-1 flag on filing
Henry Samueli, Chairman of the Board	25 Mar 2026	Sale, multi-tranche	781,967	Approximately $319.50 weighted average	Approximately $250m	Rule 10b5-1 plan
Mark D. Brazeal, Chief Legal and Corporate Affairs Officer	16 to 17 Mar 2026	Sale, multi-tranche	83,682	Approximately $322.40 weighted average	Approximately $27.0m	No 10b5-1 flag on filing
Kirsten M. Spears, Chief Financial Officer at the time	16 to 17 Mar 2026	Sale, multi-tranche	60,154	Approximately $322.80 weighted average	Approximately $19.4m	No 10b5-1 flag on filing
Charlie B. Kawwas, President, Semiconductor Solutions Group	16 to 17 Mar 2026	Sale, multi-tranche	64,834	Approximately $322.60 weighted average	Approximately $20.9m	No 10b5-1 flag on filing
S. Ram Velaga, President, Infrastructure Software Group	16 to 17 Mar 2026	Sale, multi-tranche	64,379	Approximately $322.50 weighted average	Approximately $20.8m	No 10b5-1 flag on filing

Three points are worth isolating. Chairman Henry Samueli sold approximately 1.44m shares for roughly $499m across two Rule 10b5-1 tranches in March and June 2026, and gifted roughly 756,000 more. The 16 to 17 March 2026 window contains four named executive officers selling into the same two days immediately after the Q1 FY2026 print, for a combined total of approximately $88m. Against all of that, there was exactly one open-market purchase by any insider in the period: Harry You's 1,000 shares for $373,570 on 11 June 2026.

10. Key Risks

• Customer concentration: the FY2025 Form 10-K discloses that the top five end customers accounted for approximately 40 per cent of net revenue, and distributors for 48 per cent. With AI silicon at roughly 49 per cent of Q2 FY2026 revenue and concentrated in a handful of hyperscalers, the loss of a single custom accelerator customer, or a decision by one to in-source, would be severe.
• AI capital-expenditure cyclicality: the Form 10-K explicitly states that Broadcom operates in a highly cyclical semiconductor industry undergoing profound change due to AI. FY2026 AI revenue is guided to approximately $56bn from $20bn in FY2025, a step change resting on customer capital plans. Remaining performance obligations of $164.6bn are large but only around 30 per cent converts within twelve months.
• The $29bn lease backstop: the 8 June 2026 arrangement leaves Broadcom with maximum exposure of $29bn to a single customer's five-year lease obligations. It was disclosed only as a subsequent event in the Q2 FY2026 Form 10-Q and converts part of the risk profile from chip supply to customer credit.
• VMware pricing backlash and EU antitrust: CISPE's complaint of 19 March 2026 seeks interim measures over the termination of the VMware Cloud Service Provider programme in Europe and alleges cost increases above 1,000 per cent. The European Commission has confirmed it is assessing the complaint. Because the Commission originally cleared the VMware acquisition on the basis of commitments to preserve competition, an adverse finding could force licensing remedies that hit the segment directly.
• VMware product security: CVE-2026-59310 in VMware vCenter, disclosed 29 July 2026 with a CVSS score of 9.8 and no workaround, came under active exploitation from 3 August 2026 by a suspected China-nexus actor, with compromises reported across 47 countries and Babuk-derived ransomware deployed. Repeated critical vCenter flaws erode the enterprise trust that the subscription model depends on.
• Substantial indebtedness: the Form 10-K carries a dedicated risk heading on this point. Total debt was $64,907m at 3 May 2026 against $19,628m of cash, leaving net debt of approximately $45.3bn even after repaying a $6.0bn term loan in July 2025 and completing a $3.0bn tender in June 2026.
• Supply-chain dependence on TSMC and Taiwan: the majority of front-end wafer manufacturing is outsourced to external foundries including TSMC, with assembly and test likewise concentrated among TSMC, ASE, Foxconn, Amkor and SPIL. Geographic concentration in Taiwan is a single point of failure for the entire AI franchise.
• Export controls and trade restrictions: the Form 10-K warns that the US government continues to add companies to its restricted entity list and that trade tensions will likely limit or prevent business with certain customers or suppliers. Broadcom's AI accelerators sit inside the US-China export-control perimeter.
• Key-person and governance turnover: the Form 10-K names Hock Tan explicitly under senior-management dependence. Tan is 74. In the six months to August 2026 the Chief Financial Officer retired, the Lead Independent Director retired at the annual meeting, and the Chairman sold approximately $499m of stock.

For completeness, none of the above is a liquidity, solvency or going-concern risk. Broadcom generated $32.8bn of trailing free cash flow, holds $19.6bn of cash and has no near-term funding cliff.

11. Recent Developments

• 13 Oct 2025 — OpenAI and Broadcom announce a 10-gigawatt custom accelerator collaboration. OpenAI-designed accelerators plus Broadcom Ethernet scale-up and scale-out networking, with rack deployments targeted to begin in the second half of 2026 and complete by the end of 2029.
• 11 Dec 2025 — FY2025 results and a tenth of dividend increase. Revenue of $63,887m up 24 per cent, adjusted EBITDA of $43,004m up 35 per cent and free cash flow of $26,914m. The quarterly dividend was raised 10 per cent to $0.65, a fifteenth consecutive annual increase, targeting $2.60 per share for FY2026.
• 06 Jan 2026 — $4.5bn of senior notes priced. Four tranches maturing 2031, 2033, 2036 and 2056, following $5.0bn issued in September 2025.
• 15 Jan 2026 — Broadcom signals termination of the VMware Cloud Service Provider programme in Europe. All but a small set of hand-picked partners were cut, which became the trigger for the subsequent European Commission complaint.
• 04 Mar 2026 — Q1 FY2026 results and a new $10bn buyback. Revenue of $19,311m up 29 per cent, AI revenue of $8.4bn up 106 per cent and non-GAAP EPS of $2.05. A new $10bn share repurchase programme was authorised and $10.9bn was returned in the quarter.
• 19 Mar 2026 — CISPE files a competition complaint with the European Commission. The complaint concerns VMware licensing and the VCSP shutdown, alleges cumulative cost increases of more than 1,000 per cent, and requests interim measures. The Commission has confirmed it is assessing the complaint.
• 02 Apr 2026 — Chief Financial Officer transition announced. Kirsten Spears retired effective 12 June 2026 and Amie Thuener, formerly Alphabet's Chief Accounting Officer, was appointed Chief Financial Officer from the same date.
• 06 Apr 2026 — Long-term agreement with Google for custom TPUs. The agreement covers future TPU generations plus supply assurance for networking and components for Google's next-generation AI racks through up to 2031. Under a parallel expansion, Anthropic will access approximately 3.5 gigawatts of TPU-based compute from 2027.
• 14 Apr 2026 — Extended multi-year partnership with Meta for MTIA silicon. Multiple gigawatts of Meta's custom silicon extending through 2029, with an initial commitment above one gigawatt and first AI silicon on a 2nm process. Hock Tan agreed to leave Meta's board in connection with the deal.
• 03 Jun 2026 — Q2 FY2026 results beat but the shares fell. Record revenue of $22,187m up 48 per cent and AI revenue of $10.8bn up 143 per cent, with Q3 guided to approximately $29.4bn. Infrastructure Software grew only 9 per cent year on year and the FY2026 AI forecast was left unchanged, and the market read the print negatively.
• 08 Jun 2026 — $29bn AI-rack lease backstop disclosed. Broadcom arranged for an investor partner to assume AI rack purchase and lease agreements with a customer, and entered a backstop of that customer's five-year lease obligations with maximum exposure of $29bn.
• 17 Jun 2026 — Cash tender offer upsized and completed. Tender offers for six senior note series, launched 11 June, were upsized from $2.5bn to $3.0bn and expired, retiring all validly tendered 4.926 per cent 2037 and 4.900 per cent 2038 notes.
• 06 Jul 2026 — Apple agreements extended through 2031. New multi-year long-term agreements for Broadcom to develop and supply a range of custom ASIC silicon products for use in multiple generations of Apple products.
• 29 Jul 2026 — Critical VMware vCenter vulnerabilities disclosed. CVE-2026-59310 and CVE-2026-59309, the former with a CVSS score of 9.8 allowing unauthenticated remote code execution with no workaround available.
• 14 Aug 2026 — Shares fall approximately 6 per cent on exploitation of the vCenter flaw. A suspected China-nexus actor had begun exploiting CVE-2026-59310 on 3 August 2026, with compromises at 361 IP addresses across 47 countries and Babuk-derived ransomware deployed. The close fell to $392.99 from $417.82, compounded by a widely-circulated sell-side note modelling Broadcom's chip-financing vehicle carrying up to $370bn of senior debt by mid-2029 at 20-gigawatt scale.

On litigation, VMware sued Siemens and its US subsidiaries in the District of Delaware on 21 March 2024 over allegedly unlicensed VMware copies; Siemens countersued and the parties continue to contest jurisdiction. The AT&T suit over an alleged 1,050 per cent price increase settled confidentially in November 2024, and the VMware backlog securities class action settled with court approval in March 2025.

12. Key Dates

• 02 Sep 2026 — Q3 FY2026 results, confirmed by the company. The quarter ended 2 August 2026. Guidance is for revenue of approximately $29.4bn and adjusted EBITDA of approximately 68 per cent of revenue
• 02 Sep 2026 — Q3 FY2026 dividend declaration expected alongside results. Broadcom declares with each earnings release
• Expected Sep 2026 — next dividend ex-date and payment date at $0.65 per share, not yet declared. The FY2025 equivalents were an ex-date of 22 September 2025 and payment on 30 September 2025
• 01 Nov 2026 — FY2026 fiscal year end
• Expected Dec 2026 — Q4 and full-year FY2026 results, followed by the FY2026 Form 10-K. The FY2025 equivalents were 11 December 2025 and 18 December 2025
• 31 Dec 2026 — expiry of both the extended $11bn and the new $10bn share repurchase authorisations
• Expected Apr 2027 — 2027 annual meeting of stockholders. The 2026 meeting was held on 20 April 2026
• Expected 2027 — first deliveries under the Meta MTIA one-gigawatt commitment, and the start of Anthropic's expanded TPU-based capacity
• TBC — European Commission decision on the CISPE complaint filed 19 March 2026, including the request for interim measures. No decision date has been announced
• TBC — hearing date in VMware versus Siemens. No date has been scheduled publicly

OpenAI rack deployments under the 10-gigawatt collaboration are stated to begin in the second half of 2026 and complete by the end of 2029, but no specific milestone dates have been published. Broadcom has not announced an investor day.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

See also: Technical analysis on Meta · Meta company tracker

Last Updated: 3 September 2026

Meta Platforms runs the largest advertising audience ever assembled — Facebook, Instagram, WhatsApp, Messenger and Threads reach 3.60 billion people a day — and is currently spending the profits from that audience on an artificial-intelligence build-out of unprecedented scale. FY2025 revenue reached $200,966m and free cash flow $43,585m; in the first half of 2026 free cash flow all but disappeared as capital expenditure overtook the cash the advertising business generates. Two things dominate the story as at September 2026: a capital-expenditure programme guided at $130–145bn for 2026 alone, and a teen-safety settlement agreed on 26 August 2026 worth up to $18bn. This report sets out what the filings say, without ratings or price targets.

1. Company Snapshot

Field	Value
Ticker / exchange	META — Nasdaq Global Select Market
Headquarters	Menlo Park, California, United States
Founded / listed	Founded 2004; IPO May 2012. Never split its stock
CEO / Leadership	Mark Zuckerberg (founder, Chairman and Chief Executive Officer); Susan Li, Chief Financial Officer; Javier Olivan, Chief Operating Officer; Andrew Bosworth, Chief Technology Officer; Alexandr Wang, Chief AI Officer
Employees	75,472 as at 30 June 2026 (down 1% year on year; still includes approximately 8,000 staff affected by the May 2026 reduction)
Fiscal year end	31 December
Latest reported period	Q2 2026, quarter ended 30 June 2026, released 29 July 2026
Revenue (FY2025)	$200,966m, up 22.2% year on year
Net income (FY2025)	$60,458m
GAAP diluted EPS (FY2025)	$23.49
Share price	$592.85 (close, 2 September 2026)
Market capitalisation	Approximately $1.510 trillion, on roughly 2,548m Class A and Class B shares combined
Dividend	$0.525 per quarter; $2.10 annualised. Initiated February 2024
Share structure	Dual class. Approximately 2,206m Class A and 342m Class B at 30 June 2026; Class B carries ten votes per share

2. Bull and Bear Case

Bull Case

• The advertising engine is still accelerating: revenue grew 22.2% in FY2025 and 28% in Q2 2026, with ad impressions up 14% and average price per ad up 12% in the quarter — monetisation, not just audience, is doing the work.
• Unmatched reach at low cost of acquisition: 3.60 billion daily active people across the Family of Apps in June 2026, an audience Meta already owns and does not have to buy.
• AI is already visible in the numbers, not just the narrative: Advantage+ end-to-end solutions passed a $75bn annual revenue run rate, the GEM ranking model and sequence learning drove 8.3% more ad clicks and 15.7% more conversions on Facebook, and 9 million small businesses now use at least one Meta AI ad creative tool.
• New revenue lines are compounding off a small base: Family of Apps "Other revenue" rose 73% year on year to $1,007m in Q2 2026 on WhatsApp paid messaging and subscriptions, Threads passed 500 million monthly users, and Meta shipped over 7 million AI glasses in 2025 against roughly 2 million across 2023 and 2024 combined.
• The biggest legal overhang has now been priced and dated: the 26 August 2026 multistate settlement converts an open-ended liability into a defined payment schedule spread over ten years, of which $5.3bn is contingent on competitors matching the same protections.

Bear Case

• Free cash flow has effectively gone to zero: Q2 2026 free cash flow was $784m against $8,549m a year earlier, a 91% fall, because purchases of property and equipment rose 82% while operating cash flow rose 25%.
• Buybacks have stopped entirely: nil repurchases in Q2 2026 and nil in H1 2026, against $10,167m and $22,921m in the comparable 2025 periods. The shareholder return that supported the share count has been switched off.
• Debt is building fast and pricing worse: long-term debt went from $18,385m at FY2023 to $83,664m at 30 June 2026. The $25bn April/May 2026 issue drew $96bn of orders against $125bn six months earlier and priced wider on nearly every tranche.
• Legal cost is now recurring, not exceptional: $2.40bn of legal charges were booked in Q2 2026, an accrual of approximately $10bn is expected in Q3 2026, and the New Mexico Attorney General trial beginning 8 September 2026 is not covered by the multistate settlement.
• Near-total dependence on one revenue line: advertising was $196,175m of $200,966m FY2025 revenue, or 97.6%, and the same 97.6% in Q2 2026. There is no second business large enough to absorb an advertising downturn.

3. Business Segments

Meta reports two segments. The disclosed revenue lines within them, for FY2025, are set out below.

Segment / revenue line	% of revenue	What it is
Family of Apps — Advertising	97.6% ($196,175m)	Ads sold across Facebook, Instagram, Messenger, WhatsApp and Threads. Priced by auction; revenue is a function of impressions delivered and average price per ad, which rose 12% and 9% respectively across FY2025.
Family of Apps — Other revenue	1.3% ($2,584m)	WhatsApp Business paid messaging, subscriptions including Meta Verified, and other non-advertising app revenue. The fastest-growing line, up 73% year on year in Q2 2026.
Reality Labs	1.1% ($2,207m)	Quest headsets, Ray-Ban and Oakley Meta AI glasses, the new own-brand Meta Glasses line, and metaverse software. Reported an operating loss of $19,193m in FY2025.

The segment split understates how lopsided the economics are. Family of Apps produced $102,469m of operating income in FY2025 while Reality Labs lost $19,193m on $2,207m of revenue — roughly $8.70 of loss for every $1 of revenue. In January 2026 Reality Labs was reorganised into two divisions under Andrew Bosworth, Metaverse under Vishal Shah and Wearables under Alex Himel, with approximately 1,500 roles cut.

4. Business Model and Moat

How it makes money. Meta gives its products away and sells the attention. Advertisers bid in a real-time auction for placements across five apps; Meta takes the clearing price. Because the products are free, growth in revenue comes from two levers only — more ad impressions delivered, and a higher price per ad. In Q2 2026 both moved together, impressions up 14% and price per ad up 12%, which is why revenue grew 28% while daily active people grew only 3%.

Why it is hard to dislodge. The moat is the combination of scale and measurement. An advertiser reaching 3.60 billion daily users through one buying interface has no substitute of comparable size, and Meta's ranking and retrieval models — Andromeda for retrieval, the Generative Recommender and GEM for ranking — improve as more advertisers and more conversions flow through them. That is a data feedback loop a smaller network cannot replicate. Network effects on the consumer side are separate and equally durable: Meta's applications are where a user's contacts already are.

Where the model is being stress-tested. Meta is now converting an extremely high-margin advertising business into a capital-intensive one. FY2026 capital expenditure including finance leases is guided at $130–145bn against FY2025's $72.22bn, and non-cancellable contractual commitments stood at $349.31bn at 30 June 2026 with a further approximately $68bn of data centre leases signed in July. Depreciation on that base flows into future cost of revenue whether or not the AI products it funds generate incremental advertising dollars.

Who controls it. Mark Zuckerberg retains voting control through Class B shares carrying ten votes each. Strategic decisions of the scale now being taken — the pivot from open-weight Llama models to the closed Muse family, the suspension of buybacks, the multi-year capital programme — do not require the approval of outside shareholders.

5. Financial Health

All figures below are taken from Meta's quarterly earnings releases, its Form 10-K for FY2025 filed 29 January 2026, and the Form 10-Q for the quarter ended 30 June 2026. Meta's fiscal year is the calendar year.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	117,929	+37.2%	$13.77	$13.77†	Nil	$0m
FY2022	116,609	−1.1%	$8.59	$8.59†	Nil	$9,923m
FY2023	134,902	+15.7%	$14.87	$14.87†	Nil	$18,385m
FY2024	164,501	+21.9%	$23.86	$23.86†	$2.00	$28,826m
FY2025	200,966	+22.2%	$23.49	$23.49†	$2.10	$58,744m

† Meta publishes no adjusted or non-GAAP earnings per share in any year. Its only non-GAAP measures are revenue excluding foreign exchange, advertising revenue excluding foreign exchange, and free cash flow. GAAP diluted EPS is repeated in the Adjusted EPS column for completeness; any "adjusted" Meta EPS quoted elsewhere is an analyst construction, not a company disclosure.

Two features of that table need explaining. Long-term debt was nil until Meta's first bond issue in August 2022 and has since risen more than sixfold; it reached $83,664m at 30 June 2026 after a $25bn issue in April and May 2026, against $59,000m of face value at the end of 2025. And FY2025 EPS fell 2% despite revenue rising 22.2%, because a $15.93bn non-cash tax charge on enactment of the One Big Beautiful Bill Act pushed the FY2025 effective tax rate to 30% against 12% in FY2024. Meta states that absent the valuation-allowance charge the FY2025 rate would have been 13%.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026 (ended 30 Jun 2026)	$60,801m	$6.18†	$6.18
Q1 2026 (ended 31 Mar 2026)	$56,311m	$10.44†	$10.44
Q4 2025 (ended 31 Dec 2025)	$59,893m	$8.88†	$8.88
Q3 2025 (ended 30 Sep 2025)	$51,242m	$1.05†	$1.05
Q2 2025 (ended 30 Jun 2025)	$47,516m	$7.14†	$7.14
FY2025 full year	$200,966m	$23.49†	$23.49

The quarterly GAAP earnings series is currently a poor guide to underlying profitability in both directions. Q3 2025 EPS of $1.05 carried the $15.93bn tax charge. Q1 2026 EPS of $10.44 carried an $8.03bn tax benefit arising from US Treasury Notice 2026-7; Meta states EPS would have been $3.13 lower, at $7.31, without it, and the reported effective rate was negative 23%. Q2 2026 EPS of $6.18 absorbed $2.40bn of legal charges and $1.18bn of severance for the May 2026 headcount reduction; Susan Li said that excluding both, operating income would have risen approximately 9% rather than falling 8%.

Key cash flow and balance sheet items, from the FY2025 Form 10-K and the Q2 2026 Form 10-Q: operating cash flow $115,800m in FY2025 and $64,088m in H1 2026; purchases of property and equipment $69,691m in FY2025 and $49,113m in H1 2026; principal payments on finance leases $2,524m and $1,805m; depreciation and amortisation $18,616m and $12,355m; operating income $83,276m and $41,647m. Cash and marketable securities stood at $81,592m at 31 December 2025 and $90,260m at 30 June 2026. Meta presents no current portion of long-term debt; the only current debt-like item is a $308m finance lease liability sitting inside accrued expenses. Restricted cash within other assets rose from $2,390m at FY2025 to $13,107m at 30 June 2026, tied to the data centre financings.

Guidance issued on 29 July 2026: Q3 2026 revenue of $61–64bn; FY2026 total expenses of $165–169bn; FY2026 capital expenditure including principal payments on finance leases of $130–145bn; a tax rate of 15–17% for the remaining quarters. Meta expects FY2026 operating income to exceed FY2025 operating income. On 26 August 2026 Meta said separately that it expects to accrue approximately $10bn of legal expense in Q3 2026, which was not contemplated in the July expense outlook.

6. Valuation Metrics

Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	Approximately $1,510bn at $592.85 (close, 2 September 2026), on roughly 2,548m Class A and Class B shares. Feeds quoting only the 2,206m Class A count understate the figure by about 13%
Trailing P/E (GAAP)	Approximately 22.3x on trailing twelve-month diluted EPS of $26.55 (Q3 2025 $1.05 + Q4 2025 $8.88 + Q1 2026 $10.44 + Q2 2026 $6.18). On FY2025 GAAP EPS of $23.49 the multiple is 25.2x. Both bases are distorted by the tax items described in Section 5 — a $15.93bn charge in Q3 2025 and an $8.03bn benefit in Q1 2026 — which roughly offset over the trailing year but make any single quarter unusable
P/E (forward)	Approximately 17.0x, on a forward earnings estimate of roughly $34.96 per share
P/S (TTM)	6.6x (market cap ~$1,510bn / trailing twelve-month revenue $228,247m, being Q3 2025 to Q2 2026 inclusive)
Enterprise value	Approximately $1,504bn (market cap ~$1,510bn + total debt ~$83.7bn − cash and marketable securities ~$90.3bn, per the 30 June 2026 balance sheet). Meta presents no current portion of long-term debt. This excludes the Blue Owl and BlackRock data centre joint-venture vehicles, which are off balance sheet
EV/EBITDA (TTM)	Approximately 13.7x (EV ~$1,504bn / trailing twelve-month EBITDA ~$109.7bn). EBITDA is operating income plus depreciation and amortisation; a hand-built figure from FY2025 operating income of $83,276m adjusted for the half-year movements gives approximately $107bn, within 2% of the market-data figure used here. Meta reports a single combined depreciation and amortisation line, so there is no narrow-versus-wide choice to make
P/FCF	Approximately 34.7x on FY2025 free cash flow (market cap ~$1,510bn / FCF ~$43.6bn; FCF = operating cash flow $115,800m − purchases of property and equipment $69,691m − principal payments on finance leases $2,524m, per the FY2025 cash flow statement). On trailing figures the multiple is far higher and close to meaningless: H1 2026 free cash flow was $13,170m and Q2 2026 alone $784m
52-week high	$790.80
52-week low	$520.26
Short interest (% of float)	1.27% (28,048,106 shares short against a Class A float of approximately 2,202m, settlement date 14 August 2026). A second vendor, Fintel, reports 32,561,725 shares and 1.49% for a comparable period; both point to a negligible position
Days to cover	1.73 days on the 14 August 2026 settlement figures (Fintel: 2.30 days). Average daily volume is approximately 18.1m shares over three months

You can put these numbers against the price action on the ChartsView Live Charts page.

7. What Are They Building

A closed frontier-model family. Meta Superintelligence Labs, founded 30 June 2025 and led by Chief AI Officer Alexandr Wang, launched Muse Spark on 8 April 2026 — the first model from a stack Meta says it rebuilt from the ground up over nine months. Muse Spark is closed-weight and available in private preview by API, a decisive break from the open Llama line; no new Llama model has been released in 2026, leaving Llama 4 of April 2025 as the last. The family has since extended to Muse Image on 7 July 2026, Muse Spark 1.1 with a public Meta Model API on 9 July, Muse Spark 1.2 with a 1M-token context on 5 August, Muse Glimmer — a 30B dense multimodal model released under Apache 2.0 with open weights — on 10 August, and Muse Spark 1.3 in early September. Zuckerberg said on the Q2 call that rebuilding Meta AI on Muse Spark produced a 60% increase in daily users of the assistant.

Gigawatt-scale compute. Prometheus in New Albany, Ohio is billed as the first gigawatt-scale supercluster and is due online in 2026, supported by nuclear supply agreements with TerraPower, Oklo and Vistra. Hyperion in Richland Parish, Louisiana was expanded on 13 July 2026 to 5GW at more than $50bn, from roughly $27bn, across over 4 million square feet. A third site in El Paso, Texas — announced 26 March 2026 as a joint venture with BlackRock — carries over $10bn of Meta investment for approximately 1GW from 2028. The financing template comes from the October 2025 Hyperion joint venture with Blue Owl Capital, in which Blue Owl holds 80% and Meta 20% of a vehicle funded by roughly $27bn of A+ rated senior secured notes due 2049 plus about $2.5bn of equity — the largest private-credit transaction executed to date. El Paso reuses the structure.

Wearables as the next platform. Meta Ray-Ban Display launched at $799 including the Meta Neural Band on 30 September 2025, though international rollout was delayed when US demand outran supply. On 23 June 2026 Meta launched its first in-house-designed eyewear line with EssilorLuxottica — Fury and Adventurer from $299, and a Kylie Jenner co-designed Starfire at $399 — the first glasses to ship with Muse Spark out of the box. EssilorLuxottica said on 11 February 2026 that it more than tripled Meta AI glasses sales in 2025, to over 7 million units against roughly 2 million across 2023 and 2024 combined. Meta Connect on 23 September 2026 is the next disclosure point.

Monetising the messaging estate. WhatsApp paid messaging and subscriptions are the stated driver of Family of Apps "Other revenue", which reached $1,007m in Q2 2026, up 73%. Status ads are rolling out globally in the Updates tab while personal chats remain ad-free and end-to-end encrypted. More than one million businesses now use Meta business agents weekly across WhatsApp and Messenger. Kunal Shah, founder of CRED, was named Head of WhatsApp on 29 July 2026. Threads passed 500 million monthly active users in Q2 2026 and completed its global advertising rollout in the same quarter; Meta does not break out Threads revenue.

Selling compute and agents to businesses. Zuckerberg framed the July 2026 call around "entirely new enterprise opportunities" — the Meta Model API, the Meta Business Agent Platform, and Meta One, a subscription bundling AI features across Meta's apps. He noted Meta has received offers at a meaningful premium over what it paid for compute but is prioritising internal use. Compute partnerships underpin all of this: a reported multibillion-dollar Google Cloud TPU arrangement signed around March 2026 under which Meta rents TPUs through 2026 and purchases in 2027, and an expanded CoreWeave agreement on 9 April 2026 adding roughly $21bn for 2027–2032 on top of a prior $14.2bn deal.

8. Competitive Landscape

Peer	Market cap (September 2026)	Key 2025 metric
Alphabet (GOOGL)	Approximately $4,123bn	FY2025 revenue $402.84bn and net income $132.17bn; Google Cloud revenue grew 82% to $24.8bn in Q2 2026 with a $514bn backlog
Amazon (AMZN)	Approximately $2,750bn	FY2025 revenue $716.92bn and net income $77.67bn; AWS grew 37% in Q2 2026 to a $169bn annualised run rate, its fastest in 18 quarters
Microsoft (MSFT)	Approximately $3,689bn	FY2026, year ended 30 June 2026, revenue $331.84bn and net income $133.75bn; commercial remaining performance obligation $678bn, up 84%
Pinterest (PINS)	Approximately $12.0bn	FY2025 revenue $4.22bn and net income $0.42bn — roughly 2% of Meta's revenue on a comparable advertising model
Snap (SNAP)	Approximately $9.45bn	FY2025 revenue $5.93bn and a net loss of $0.46bn; short interest sits at 8.8% of float against Meta's 1.3%
ByteDance / TikTok (private)	No listed market cap; marketed at approximately $550bn in February 2026	Revenue of $186bn in FY2024, reported to be approaching $200bn in 2026. Overtook Meta as the largest social media company by quarterly revenue in Q2 2025, at $48bn against Meta's $46bn

The comparison that matters most is not a listed one. ByteDance passing Meta on quarterly revenue in 2025, and its re-rating to roughly $550bn after US approval in January 2026 of TikTok's restructuring into a majority US-owned joint venture, is the clearest evidence that Meta's share of global attention is contested. Against the listed megacaps, Meta carries the lowest forward multiple of the four despite the fastest recent revenue growth. Track the sector on the ChartsView Economic Calendar.

9. Insider Activity

Mark Zuckerberg, Meta's founder, Chairman and Chief Executive Officer, filed only two Form 4s in the whole of 2026 and neither reports an open-market sale. The 31 July 2026 filing records a conversion of 591,690 Class B shares into Class A and matched gift transactions of the same number of shares among Chan Zuckerberg Initiative entities — philanthropic transfers, not disposals. Every other executive and director transaction below is an open-market sale, and all of the sales identified were made under Rule 10b5-1 trading plans adopted well in advance. There were no open-market insider purchases in 2026.

Name	Date	Type	Shares	Price	Value	Plan Type
Susan Li, Chief Financial Officer	18 Aug 2026	Sale	9,196 Class A	$547.51–$560.63	Approximately $5.07m	Rule 10b5-1 plan adopted 25 Nov 2025
Andrew Bosworth, Chief Technology Officer	18 Aug 2026	Sale	7,848 Class A	$558.00	Approximately $4.38m	Rule 10b5-1 plan adopted 31 Jan 2025
Curtis J. Mahoney, Chief Legal Officer	18 Aug 2026	Sale	1,559 Class A	$558.00	Approximately $0.87m	Rule 10b5-1 plan adopted 25 Feb 2026
Dina H. Powell McCormick, President and Vice Chairman	15 Aug 2026	RSU vesting and tax withholding, not a sale	7,732 acquired; 3,518 withheld	$589.85 (withholding)	Not an open-market disposal	Quarterly RSU vesting from 15 Feb 2026
Javier Olivan, Chief Operating Officer	10 Aug 2026	Sale	1,692 Class A	$600.00–$607.14	Approximately $1.02m	Rule 10b5-1 plan adopted 17 Nov 2025
Marc L. Andreessen, Director	4 Aug 2026	Sale	426 Class A	$588.16–$591.69	Approximately $0.25m	Held of record by a16z Capital Management following distributions in kind
Robert M. Kimmitt, Director	3 Aug 2026	Sale	500 Class A	$561.56	Approximately $0.28m	Rule 10b5-1 plan adopted 25 Feb 2026
Peggy Alford, Director	31 Jul 2026	Sale	464 Class A	$543.56	Approximately $0.25m	Rule 10b5-1 plan adopted 25 Nov 2025

The pattern is pre-scheduled diversification running straight through a falling share price, from roughly $661 in mid-July to $548 in mid-August, with no discretionary selling and no buying. Javier Olivan sells on a weekly cadence — 1,466 shares at $607.85 on 27 July, 1,466 at $645.85 on 20 July and 2,163 at around $661 on 13 July. Susan Li sold 55,571 shares for approximately $36.4m on 27 February 2026 under the same November 2025 plan.

10. Key Risks

• Material litigation, now a realised cash cost: Meta booked $2.40bn of legal charges in Q2 2026, agreed on 26 August 2026 to pay up to $18bn over ten years to settle multistate teen-safety claims, and expects to accrue approximately $10bn in Q3 2026 — a charge explicitly outside guidance given six weeks earlier. The New Mexico Attorney General trial beginning 8 September 2026, where penalties of up to $62.85bn have been signalled, is not covered by that settlement, and 3,137 suits remain in the multidistrict litigation. Meta's own CFO commentary warns that youth-related trials "may ultimately result in a material loss".
• Capital expenditure with no disclosed return test: FY2026 capital expenditure guidance of $130–145bn is roughly double FY2025's $72.22bn and more than five times FY2023's $28.1bn. Q2 2026 free cash flow fell 91% to $784m, buybacks stopped entirely, and management declined to guide 2027 while stating it is maximising 2026 and 2027 capacity — implying a further step up. Non-cancellable contractual commitments were $349.31bn at 30 June 2026.
• The debt build is repricing against Meta: long-term debt rose from $18,385m at FY2023 to $83,664m at 30 June 2026, a 4.5-fold increase in 30 months. The April and May 2026 $25bn issue drew $96bn of orders against $125bn six months earlier and priced wider on nearly every tranche; carrying value of $83.66bn compares with an estimated fair value of $79.75bn, meaning the bonds trade below par. Interest expense net of capitalised interest tripled year on year to $754m in the quarter.
• Reality Labs has no disclosed path to breakeven: the division lost $19,193m in FY2025 and $8,647m in H1 2026 on FY2025 revenue of $2,207m. Cumulative losses exceed $40bn since 2020. Meta guided in January 2026 that operating losses would remain similar to 2025 levels, and Quest shipments fell 16% year on year over the first three quarters of 2025.
• Revenue concentration in a single advertising line: advertising was 97.6% of FY2025 revenue and 97.6% of Q2 2026 revenue. Reality Labs contributes 0.7% of quarterly revenue and non-advertising app revenue 1.7%. There is no diversified base to absorb an advertising downturn, and Meta's own forward-looking statements name reliance on advertising revenue as a risk factor.
• European regulatory exposure running on three tracks: two open Digital Services Act proceedings — on under-13 access opened 29 April 2026, and on addictive design opened 10 July 2026 — each carry a maximum penalty of 6% of global annual turnover, over $12bn on FY2025 revenue. The addictive-design remedies proposed by the Commission include disabling autoplay and infinite scroll by default and a less engagement-oriented recommender, which would directly reduce the impressions that drive advertising revenue. A €200m Digital Markets Act fine was already levied in April 2025, and a Statement of Objections was issued on 9 February 2026 over WhatsApp's exclusion of rival AI chatbots.
• Attention competition and decelerating audience growth: daily active people growth has slowed from 7% in December 2025 to 4% in March 2026 to 3% in June 2026, so revenue growth now comes almost entirely from monetisation. ByteDance overtook Meta on quarterly revenue in Q2 2025 and was marketed at roughly $550bn in February 2026 following US approval of TikTok's restructuring.
• Key-person concentration and organisational churn: Zuckerberg holds voting control and is the sole architect of the superintelligence strategy. Beneath him, Yann LeCun left the Chief AI Scientist role on 20 November 2025 and the title appears unfilled, approximately 600 Superintelligence Labs roles were cut in October 2025, roughly 8,000 employees were cut in May 2026, and the Chief Information Security Officer announced his departure on 2 June 2026.
• Tax volatility large enough to swamp operating results: a $15.93bn non-cash charge cut Q3 2025 EPS to $1.05, an $8.03bn benefit lifted Q1 2026 EPS to $10.44 at a negative 23% effective rate, and the 2026 outlook has already been revised from 13–16% to 15–17%. Reported GAAP EPS is currently a poor read on underlying earnings in either direction.

11. Recent Developments

• 25 Mar 2026 — First personal-injury bellwether verdict against Meta. A Los Angeles Superior Court jury found Meta and Google negligent over design choices contributing to a minor plaintiff's depression and suicidal ideation, awarding $6m in damages. Internal documents shown at trial included a memo about winning "big with teens" by bringing them in as tweens.
• 26 Mar 2026 — El Paso data centre joint venture announced with BlackRock. Approximately 1GW of capacity with over $10bn of Meta investment, online from 2028, structured as an 80/20 special purpose vehicle mirroring the Blue Owl template.
• 08 Apr 2026 — Muse Spark launched, ending the open Llama line. The first model from Meta Superintelligence Labs and the first major new Meta model in a year, released closed-weight in private preview.
• 29 Apr 2026 — Q1 2026 results, and the market punished the spending. Revenue $56.31bn up 33%, net income $26.77bn, diluted EPS $10.44 including an $8.03bn tax benefit. Capital expenditure guidance was raised to $125–145bn and the shares fell roughly 7% after hours despite the beat. The European Commission issued its first Digital Services Act preliminary finding the same day, over failure to prevent under-13s accessing the services.
• 30 Apr 2026 — Approximately $25bn bond offering launched one day after results. Six series, coupons of 4.55% to 6.45%, longest tranche maturing 2066. Peak orders were $96bn against roughly $125bn for the October 2025 deal, and nearly all tranches priced wider.
• 20 May 2026 — Approximately 8,000 employees laid off, around 10% of the workforce. Roughly 6,000 open roles were also cancelled and upwards of 7,000 workers were redirected into AI teams. Zuckerberg's memo said "Success isn't a given." Severance of $1.18bn was booked in Q2.
• 23 Jun 2026 — Meta Glasses own-brand line launched with EssilorLuxottica. Meta's first in-house-designed eyewear, from $299, and the first glasses to ship with Muse Spark.
• 10 Jul 2026 — Second Digital Services Act preliminary finding, on addictive design. The Commission preliminarily found Instagram and Facebook in breach over infinite scroll, autoplay, push notifications and personalised recommenders. Proposed remedies include disabling autoplay and infinite scroll by default and a less engagement-oriented recommender.
• 13 Jul 2026 — Hyperion investment raised to more than $50bn. The Louisiana campus was expanded to 5GW from roughly $27bn previously. A further approximately $68bn of data centre leases were entered during July, commencing 2027 and 2028 on 18 to 20 year terms.
• 29 Jul 2026 — Q2 2026 results missed on earnings. Revenue $60.80bn up 28%, but EPS of $6.18 fell 13% against consensus of roughly $7.20, operating income fell 8%, and costs rose 55% including $2.40bn of legal charges and $1.18bn of severance. Free cash flow collapsed to $784m from $8.55bn. Capital expenditure guidance was narrowed to $130–145bn and the expense floor raised. Shares fell 4.2% after hours, deepening to 7–9% over the following session.
• 18 Aug 2026 — First state attorney-general trial opened in Oakland, California. California, Colorado, Kentucky and New Jersey argued Meta engineered Instagram and Facebook to capture minors' attention and deceived the public about safety. Trial proceedings had begun on 12 August.
• 26 Aug 2026 — Mid-trial settlement of up to $18bn agreed with 52 state attorneys general. Just over $17bn resolves the suit brought jointly by 29 states in 2023, payable over ten years, of which approximately $12.7bn is guaranteed and $5.3bn is contingent on YouTube and TikTok adopting comparable protections and matching payments. Mandated teen changes include a two-hour daily time limit, muted notifications during school hours, a non-algorithmic feed option, and a bar on switching off certain safety settings without parental consent. Meta expects to accrue approximately $10bn in Q3 2026.
• 02 Sep 2026 — Shares closed at $592.85, up 2.47% on the day. Meta also permanently disabled cameras on roughly 7,000 pairs of smart glasses whose owners had defeated the LED recording-indicator light, and announced Muse Spark 1.3 and Muse Voice Transcribe.

On the antitrust track, Meta won at first instance. On 18 November 2025 US District Judge James E. Boasberg held that the Federal Trade Commission had failed to prove Meta currently holds monopoly power in personal social networking, finding that Meta competes with TikTok and YouTube and that the proposed market was unduly narrow. No divestiture was ordered. The FTC filed a notice of appeal on 20 January 2026 to the D.C. Circuit and 28 states plus the District of Columbia filed a supporting amicus brief on 29 May 2026. Separately, buybacks were nil throughout the first half of 2026 while dividends continued at $1,353m per quarter. Discussion of these filings continues on the ChartsView Forum.

12. Key Dates

• 08 Sep 2026 — New Mexico Attorney General trial scheduled to begin. The state has indicated an intent to seek penalties of up to $62.85bn; these claims are not covered by the 26 August multistate settlement.
• 08 Sep 2026 — FTC consent-order litigation status update due in the District Court for the District of Columbia, following the stay continued on 9 June 2026.
• 23 Sep 2026 — Meta Connect 2026 opens at the Menlo Park campus, keynote at 4pm Pacific, running to 24 September. Zuckerberg has said there will be more to share on the glasses lineup.
• 29 Sep 2026 — FTC reply brief due in the D.C. Circuit appeal, No. 26-5028. No oral argument date has been set.
• Expected September 2026 — Declaration of the Q3 2026 dividend. The rate has been held at $0.525 per quarter throughout 2025 and 2026; the most recent payment was made on 25 June 2026 to holders of record on 15 June 2026. No Q3 declaration had been made as at 3 September 2026.
• 06 Oct 2026 — Deferred appendix due in the D.C. Circuit appeal, with final briefs due 20 October 2026.
• Expected October 2026 — Q3 2026 results. Calendar providers most commonly cite 28 October 2026 after market close, with an estimated window running to 2 November 2026. Meta had issued no confirming press release as at 3 September 2026.
• Expected February 2027 — Next school-district bellwether trial in multidistrict litigation 3047 before Judge Yvonne Gonzalez Rogers. Exact date not confirmed.
• TBC — European Commission decisions on the two open Digital Services Act proceedings, and on the WhatsApp AI-chatbot Statement of Objections issued 9 February 2026. Meta may inspect the file and respond in writing; no deadline for a final decision has been published.

Article 50 transparency obligations under the EU AI Act became enforceable on 2 August 2026, and Meta signed the associated Code of Practice on Transparency of AI-Generated Content during July 2026. Italy's competition authority ordered Meta to halt the WhatsApp AI-chatbot restriction in Italy on 24 December 2025, and that probe runs in parallel with the Commission's.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

See also: Technical analysis on Apple · Apple company tracker

Last Updated: 12 August 2026

Apple enters the final weeks of Tim Cook's fifteen-year tenure as chief executive in unusually good shape. The June 2026 quarter was the strongest third quarter the company has ever reported — revenue of $109.4bn, up 16.4% year over year, with Greater China back to double-digit growth after two years of decline. On 1 September 2026 hardware engineering chief John Ternus takes over as CEO and Cook moves to executive chairman. The handover lands in the middle of three unresolved questions: whether the rebuilt Siri, unveiled at WWDC26 and shipping with iOS 27, closes Apple's assistant gap; whether the roughly $20bn a year Google pays for Safari search placement survives the antitrust appeals; and whether a genuine memory-chip shortage that management called a "100-year flood" squeezes margins through the autumn iPhone cycle. This report sets out what the filings say, and leaves the conclusions to you.

1. Company Snapshot

Field	Value
Company	Apple Inc.
Ticker / Exchange	AAPL / NASDAQ
Headquarters	Cupertino, California, United States
Founded / IPO	Founded 1976; listed December 1980
Sector	Technology — consumer electronics and digital services
CEO / Leadership	Tim Cook, Chief Executive Officer (since 2011). John Ternus becomes CEO on 1 September 2026; Cook becomes Executive Chairman. Kevan Parekh, Senior Vice President and Chief Financial Officer. Sabih Khan, Chief Operating Officer.
Employees	Approximately 166,000 full-time equivalents (FY2025 Form 10-K, as at 27 September 2025)
Revenue (FY2025, ended 27 Sep 2025)	$416,161m ($416.2bn), up 6.4% year over year
Net income (FY2025)	$112,010m ($112.0bn); GAAP diluted EPS $7.46
Revenue (trailing twelve months to 27 Jun 2026)	$466,823m ($466.8bn)
Most recent quarter	Q3 FY2026, ended 27 June 2026, reported 30 July 2026: revenue $109,417m, GAAP diluted EPS $2.02
Market cap	~$4,449.9bn ($4.45 trillion) at the 11 August 2026 close of $304.91
Dividend	$0.27 per share quarterly ($1.08 annualised); yield ~0.35%
Fiscal year end	Last Saturday of September

2. Bull Case & Bear Case

Bull Case

• Reacceleration is real and broad-based: Q3 FY2026 revenue grew 16.4% to $109,417m with every geography up double digits, including Greater China at +22.4% after a year of contraction. Operating income rose 26.6% to $35,695m — growth is running well ahead of the 3.3% five-year revenue CAGR embedded in the FY2021–FY2025 record.
• Services is now a genuine second business: Services revenue reached $109,158m in FY2025 and $30,739m in Q3 FY2026 at a 75.6% gross margin, against 40.1% for products. With over 2.5bn active devices and more than 1.5bn paid subscriptions, the recurring layer keeps expanding regardless of any single hardware cycle.
• Premium mix is winning a shrinking market: global smartphone shipments fell 6.7% year over year in Q2 2026 as memory-cost inflation crushed budget Android makers, yet Apple took 20.1% of units and roughly 49% of industry revenue. Pain that hurts rivals disproportionately is a competitive advantage.
• Capital return at extraordinary scale: the board authorised a further $100bn of buybacks on 30 April 2026. Apple repurchased $90,711m of stock in FY2025 and $62,094m in the first nine months of FY2026, shrinking the diluted share count from 16,865m in FY2021 to 15,005m in FY2025 — a mechanical tailwind to per-share figures.
• A denser product cycle than usual: the September 2026 line-up is expected to include the first foldable iPhone alongside the iPhone 18 Pro, with the C2 in-house modem, camera-equipped AirPods and an M5 Vision Pro also in train. Apple has told suppliers to prepare roughly 10 million foldable units.

Bear Case

• The Google search payment is the single largest earnings risk: trial evidence put Google's payments for Safari default placement at about $20bn in 2022 alone, close to pure operating profit. Judge Mehta's remedies bar exclusivity and multi-year conditioning, both sides have appealed, and the arrangement's long-run value is genuinely uncertain.
• Regulatory pressure is compounding, not easing: the EU General Court dismissed Apple's gatekeeper challenge on 8 July 2026, a €500m anti-steering fine stands, the App Store commission structure was rebuilt on 1 January 2026, US link-out purchases currently carry zero commission, and the DOJ monopolisation suit survived dismissal in June 2025.
• Input costs and supply are both moving the wrong way: management guided September-quarter gross margin down to 47–48% from 50.1%, warned that supply constraints on advanced-node silicon would "increase significantly sequentially" across iPhone, Mac and iPad, and described memory pricing as a "100-year flood" that has already forced iPad and Mac price rises.
• Apple is buying its AI rather than building it: the rebuilt Siri runs on a custom Google Gemini model under a reported billion-dollar-a-year agreement, after the in-house revamp slipped repeatedly through 2025 and 2026. Siri AI has still not shipped to the public. R&D rose 32.3% year over year in Q3 FY2026 to $11,729m, which is the cost of catching up.
• Succession risk meets a full valuation: the stock trades at roughly 35 times trailing GAAP earnings and about 9.5 times sales, near record highs, at the exact moment an unproven chief executive takes over from arguably the most successful operator of his generation. There is limited margin for a stumble.

3. Product & Service Segments

Apple reports one operating segment but discloses revenue by product category and by geography. The category split for FY2025, the most recent completed fiscal year, is below.

Segment	% of revenue	What it is
iPhone	50.4% ($209,586m)	The smartphone line and the anchor of the whole ecosystem. Grew 4.2% in FY2025 and accelerated sharply to +21.7% in Q3 FY2026 ($54,252m).
Services	26.2% ($109,158m)	App Store commissions, iCloud, Apple Music, Apple TV, Apple Pay, AppleCare, advertising and search licensing. Highest-margin business at 75.6% gross margin; grew 13.5% in FY2025.
Wearables, Home and Accessories	8.6% ($35,686m)	Apple Watch, AirPods, Vision Pro, HomePod, Apple TV hardware and accessories. Declined 3.6% in FY2025, the only category to shrink.
Mac	8.1% ($33,708m)	Desktop and notebook computers on Apple silicon, including the newer lower-cost MacBook Neo line. Grew 12.4% in FY2025 and 28.7% in Q3 FY2026.
iPad	6.7% ($28,023m)	Tablet line spanning iPad, iPad Air, iPad Pro and iPad mini. Grew 5.0% in FY2025 but fell 5.9% in Q3 FY2026.

By geography in FY2025: Americas $178,353m (42.9%), Europe $111,032m (26.7%), Greater China $64,377m (15.5%, down 3.8%), Rest of Asia Pacific $33,696m (8.1%) and Japan $28,703m (6.9%). The Greater China picture changed materially in Q3 FY2026, with the region growing 22.4% to $18,816m.

4. Business Model & Competitive Moat

How it makes money. Apple sells hardware at premium prices and gross margins around 40%, then monetises the installed base a second time through Services at gross margins above 75%. The two reinforce each other: hardware creates the subscriber, Services raises the cost of leaving. In FY2025 products generated $220,960m of cost of sales against $416,161m of revenue, and the blended gross margin was 46.9%. In Q3 FY2026 the blend reached 50.1%, helped by roughly two percentage points of tariff refunds and by Services growing faster than hardware.

Where the moat comes from. Switching costs are the core of it. More than 2.5bn active devices share one account system, one payments layer, one messaging protocol and one continuity model, so leaving means abandoning purchases, photo libraries, subscriptions and the connections between devices. Vertical integration is the second pillar: Apple designs its own application processors, and since 2025 its own cellular modem, which lets it ship performance-per-watt characteristics competitors buy off the shelf. The third is distribution — over 500 retail stores and control of the App Store, which is precisely why regulators keep arriving.

What the moat does not cover. Apple does not own a frontier AI model, and the rebuilt Siri depends on a custom Google Gemini model running inside Apple's Private Cloud Compute. It also does not control the search revenue line, which is a contractual payment from a company currently subject to antitrust remedies. Both are places where the integration story has a seam.

5. Financial Health

Five-year annual record from Apple's Form 10-K filings. Apple does not publish a non-GAAP adjusted EPS, so the adjusted column repeats GAAP except where a disclosed one-off distorts the comparison.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021 (25 Sep 2021)	365,817	+33.3%	$5.61	$5.61 †	$0.85	$109,106m
FY2022 (24 Sep 2022)	394,328	+7.8%	$6.11	$6.11 †	$0.90	$98,959m
FY2023 (30 Sep 2023)	383,285	−2.8%	$6.13	$6.13 †	$0.94	$95,281m
FY2024 (28 Sep 2024)	391,035	+2.0%	$6.08	$6.75 ‡	$0.98	$85,750m
FY2025 (27 Sep 2025)	416,161	+6.4%	$7.46	$7.46 †	$1.02	$78,328m

† Apple reports on a GAAP basis only and publishes no adjusted earnings measure, so GAAP diluted EPS is repeated in the adjusted column.
‡ FY2024 GAAP diluted EPS of $6.08 absorbed a one-time $10,246m income tax charge arising from the European Commission State Aid decision. Excluding that charge, diluted EPS was $6.75. The figure is derived from Apple's disclosed charge divided by 15,408,095 thousand weighted-average diluted shares, and is not a company-published non-GAAP measure.

Revenue over the five years compounds at 3.3% a year, but the shape matters more than the average: a pandemic-inflated FY2021, two flat-to-down years, then a clear reacceleration in FY2025 that has continued into FY2026. Long-term debt has been reduced every year since FY2021, from $109,106m to $78,328m. Cash generation is the standout — FY2025 operating cash flow of $111,482m against capital expenditure of just $12,715m.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q3 FY2026 (ended 27 Jun 2026)	$109,417m	$2.02 †	$2.02
Q2 FY2026 (ended 28 Mar 2026)	$111,184m	$2.01 †	$2.01
Q1 FY2026 (ended 27 Dec 2025)	$143,756m	$2.84 †	$2.84
Q4 FY2025 (ended 27 Sep 2025)	$102,466m	$1.85 †	$1.85
Q3 FY2025 (ended 28 Jun 2025)	$94,036m	$1.57 †	$1.57
FY2025 total (ended 27 Sep 2025)	$416,161m	$7.46 †	$7.46

The Q3 FY2026 result included a $2.2bn tariff refund, worth roughly two percentage points of gross margin and $0.11 of diluted EPS. Nine-month FY2026 revenue stands at $364,357m with net income of $101,464m and operating cash flow of $116,996m. At 27 June 2026 the balance sheet held $39,544m of cash, $22,855m of current marketable securities and $84,118m of non-current marketable securities against $84,344m of total debt — a net cash position of roughly $62.2bn.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Share price	$304.91 (close, 11 August 2026)
Market cap	~$4,449.9bn ($304.91 × ~14,594m shares outstanding)
Trailing P/E (GAAP)	~35.0x ($304.91 / TTM diluted EPS $8.72, being the sum of the four quarters to 27 Jun 2026: $1.85 + $2.84 + $2.01 + $2.02). Apple publishes no adjusted EPS, so there is no separate adjusted multiple; the only material distortion in the series was the FY2024 State Aid charge, which is outside this TTM window.
P/E (forward)	~32.1x (on a consensus forward EPS estimate of ~$9.51)
P/S (TTM)	~9.5x (market cap ~$4,449.9bn / TTM revenue $466,823m)
EV/EBITDA (TTM)	~26.1x (EV ~$4,387.7bn / TTM EBITDA ~$167.9bn; EBITDA = TTM operating income $154,859m + D&A of roughly $13.1bn). On the audited FY2025 basis the multiple is ~30.3x, where EBITDA of $144,748m = operating income $133,050m + depreciation and amortisation $11,698m, which ties exactly to the cash flow statement add-back.
P/FCF	~45.1x (market cap ~$4,449.9bn / FY2025 FCF $98,767m; FCF = operating cash flow $111,482m − capital expenditure $12,715m per the FY2025 cash flow statement). Trailing-twelve-month operating cash flow has since risen to roughly $146.7bn, which would lower this materially once the full-year capex figure is known.
Enterprise value	~$4,387.7bn (market cap ~$4,449.9bn + total debt $84,344m − cash and marketable securities $146,517m, per the 27 June 2026 balance sheet). Netting only cash and current securities, as several data vendors do, gives ~$4,471.9bn.
Price/book	~41.4x (book value per share $7.36). Book value is heavily suppressed by cumulative buybacks, so this is of limited use for Apple.
52-week high	$344.57 intraday; $340.08 on a closing basis (28 July 2026)
52-week low	$223.78 intraday; $224.90 on a closing basis
Short interest (% of float)	0.97% (141,606,163 shares short against a float of ~14,240m, settlement date 31 July 2026)
Days to cover	2.58 days
Dividend yield	~0.35% ($1.08 annualised on $304.91)

Compare these levels against the live price action on the ChartsView Live Charts page.

7. What Are They Building

Siri AI and the next Apple Intelligence. Announced at WWDC26 on 8 June 2026, the rebuilt Siri handles multi-turn conversation, real-time world knowledge and cross-app awareness of personal data, and is surfaced through the Dynamic Island. It has not yet shipped publicly — it arrives with iOS 27, expected around 14 September 2026, with the advanced features restricted to iPhone 17 Pro and newer. The engine underneath is a custom Google Gemini model of roughly 1.2 trillion parameters, confirmed on 12 January 2026 under a multi-year agreement reported at about $1bn a year, run inside Apple's Private Cloud Compute.

The foldable iPhone and a restructured launch calendar. Apple's first foldable is expected at the September 2026 event alongside the iPhone 18 Pro and Pro Max, with suppliers asked to prepare roughly 10 million units. The standard iPhone 18, the 18e and the next iPhone Air have been pushed to spring 2027, splitting what was a single autumn launch into two cycles a year.

Silicon independence. The C2 modem, successor to the C1, is expected in the iPhone 18 Pro line with satellite 5G browsing, and a 5G MacBook is expected to follow late in 2026. Apple also disclosed on 30 July 2026 an agreement with Broadcom worth more than $30bn covering custom silicon and wireless connectivity components. On the Mac side, M5 versions of the Mac Studio, Mac mini and iMac are expected during 2026, with an OLED, redesigned M6 MacBook Pro to follow.

New sensing hardware. Camera-equipped AirPods are targeted for this autumn, enabling hand-gesture recognition and detection of whether a user is being spoken to — capability that leans directly on the Q.ai acquisition of around $1.6bn completed in January 2026, whose technology covers whispered-speech interpretation and facial micro-movement sensing. Apple is also reported to be reconsidering the Apple Watch line-up as the industry shifts toward screen-free devices.

US manufacturing. The American Manufacturing Program commits $600bn over four years, raised from $500bn on 6 August 2025, covering Corning cover glass in Kentucky, a server plant in Houston and a Detroit manufacturing academy. Apple says it now sources over 100 million components a year from Arizona alone.

8. Competitive Landscape

Market capitalisations below were re-checked live on 12 August 2026 against the 11 August closes. Non-US figures are converted at rates pulled the same day (KRW/USD 1,414.93; HKD/USD 7.8459).

Peer	Market cap (August 2026)	Key 2025/26 metric
Alphabet (GOOGL)	~$4,204.7bn	TTM revenue ~$445.9bn. Also Apple's largest Services counterparty via the Safari search default, and now the supplier of the Gemini model behind Siri AI.
Microsoft (MSFT)	~$3,741.1bn	TTM revenue ~$331.8bn at a ~40% net margin; ~223,000 employees. Competes in personal computing, productivity and cloud AI.
Samsung Electronics (005930.KS)	~$1,192.7bn (KRW 1,687.6tn)	Led global smartphone units in Q2 2026 with 22.6% share (62.7m units) versus Apple's 20.1%. Also a major memory supplier, benefiting from the cost inflation hurting Apple.
Dell Technologies (DELL)	~$284.9bn	TTM revenue ~$134.0bn at a ~6.3% net margin; ~97,000 employees. Direct Mac competitor in PCs and a large AI-server vendor.
Xiaomi (1810.HK)	~$86.1bn (HKD 675.5bn)	Q2 2026 smartphone shipments fell 26.3% to 31.2m units for 11.2% share — the clearest example of memory costs squeezing the mid-range.
Lenovo Group (0992.HK)	~$45.2bn (HKD 354.3bn)	TTM revenue ~$83.1bn at a ~2.3% net margin; ~73,500 employees. World's largest PC vendor by units.
HP Inc (HPQ)	~$26.6bn	TTM revenue ~$57.4bn at a ~4.4% net margin; ~55,000 employees. Trades on ~11x trailing earnings against Apple's ~35x.

The Q2 2026 industry backdrop is unusual. Global smartphone shipments fell 6.7% year over year to 277.5m units, the weakest second quarter since 2013 on Counterpoint's numbers, yet Apple shipped 55.8m units for its first ever 20%-plus share in a June quarter and captured roughly 49% of all industry revenue at an average selling price of $946. Rising memory prices are the mechanism: they compress margins hardest at the low end, where Apple does not compete.

9. Insider Activity

Tim Cook, chief executive since 2011, remains Apple's largest individual insider seller and continues to dispose of vested shares under a Rule 10b5-1 plan. He adopted a new plan on 28 May 2026 covering up to 16,250 shares plus shares vesting during its term, expiring 30 October 2026. Chief Financial Officer Kevan Parekh sells under a plan adopted 21 November 2025. Notably, there have been no recorded Form 4 transactions in July or August 2026, and no open-market purchases by any insider during the period reviewed — the pattern is uniformly programmatic disposal of vested stock rather than discretionary selling or buying.

Name	Date	Type	Shares	Price	Value	Plan Type
Ben Borders (Principal Accounting Officer)	16 Jun 2026	Sale	116	$295.14	$34,236	Post-vest disposal
Arthur D. Levinson (Chairman)	27 May 2026	Sale	50,000	$311.02	$15,551,000	10b5-1 plan
Ben Borders (Principal Accounting Officer)	8 May 2026	Sale	1,274	$290.00	$369,460	Post-vest disposal
Arthur D. Levinson (Chairman)	6 May 2026	Sale	250,000	$284.76	$71,189,722	10b5-1 plan
Kevan Parekh (Chief Financial Officer)	23 Apr 2026	Sale	1,534	$275.00	$421,850	10b5-1 plan adopted 21 Nov 2025
Deirdre O'Brien (Senior Vice President)	2 Apr 2026	Sale	30,002	$255.35	$7,660,875	10b5-1 plan
Timothy D. Cook (Chief Executive Officer)	2 Apr 2026	Sale	64,949	$254.23	$16,512,198	10b5-1 plan adopted 24 May 2024
Timothy D. Cook (Chief Executive Officer)	2 Oct 2025	Sale	129,963	$256.81	$33,375,723	10b5-1 plan

Cook retained 3,351,250 shares after the April 2026 sale; Levinson held 3,755,576 after his May disposals. Jennifer Newstead, Senior Vice President and General Counsel, adopted a new 10b5-1 plan on 5 May 2026 covering up to 24,912 shares plus up to 90% of shares vesting between 15 June 2026 and 15 March 2027.

10. Key Risks

• Search revenue concentration: Google's payments for default placement in Safari were valued at approximately $20bn in 2022 on trial evidence and carry almost no associated cost. The remedies in the Google search case bar exclusivity and multi-year conditioning, both sides have appealed, and oral argument is not expected before late 2026 or early 2027. Any reduction flows almost directly to operating income.
• Antitrust and platform regulation across three jurisdictions: the DOJ monopolisation suit survived a motion to dismiss on 30 June 2025 with no trial date set; the EU General Court dismissed Apple's gatekeeper challenge on 8 July 2026 and a €500m anti-steering fine stands; and the US Supreme Court granted certiorari on 30 June 2026 in the Epic contempt matter, to be heard in the term beginning October 2026. Adverse outcomes would compress App Store economics.
• Component cost inflation and supply constraints: management guided September-quarter gross margin down to 47–48% from 50.1% and warned that constraints on advanced-node system-on-chip supply would worsen significantly, affecting iPhone, Mac and iPad. Memory pricing was described as a "100-year flood", and Apple has already raised iPad and Mac prices in response.
• Greater China exposure and geopolitics: the region generated $64,377m in FY2025 and remains a substantial share of both demand and manufacturing capacity. Revenue there declined 3.8% in FY2025 before recovering, and the recovery depends on conditions Apple does not control. Tariff policy has swung from a $1.4bn quarterly cost guided for December 2025 to a $2.2bn refund in June 2026.
• Artificial intelligence execution: the Siri rebuild slipped repeatedly through 2025 and into 2026 and still has not reached the public. Apple now depends on a third-party frontier model for its flagship assistant. If Siri AI underdelivers at launch, the case for upgrading to newer hardware weakens at exactly the point Apple needs a strong cycle.
• Leadership transition: John Ternus becomes chief executive on 1 September 2026 after a career in hardware engineering, taking over a company where the growth narrative increasingly rests on Services, software and AI. Cook remains as executive chairman, but the operating decisions pass to someone without a public track record in the role.
• iPhone dependence: the iPhone still generated 50.4% of FY2025 revenue and 49.6% of Q3 FY2026 revenue, and drives Services attachment on top. A weak reception for the foldable, or delays to the split 2026–2027 launch calendar, would be felt across the whole income statement.

11. Recent Developments

• 11 Aug 2026 — Apple Arcade expands its catalogue. Block Blast!+ and Art of Fauna were added to the subscription gaming service, continuing the steady content cadence that supports Services growth.
• 09 Aug 2026 — Reports of an Apple Watch overhaul and camera-equipped AirPods. Bloomberg reported that Apple is exploring a shake-up of the smartwatch line-up as the industry moves toward screen-free devices, and is targeting AirPods with cameras for this autumn.
• 30 Jul 2026 — Record third-quarter results. Revenue of $109,417m was up 16.4%, operating income rose 26.6% to $35,695m and diluted EPS of $2.02 grew 29%, including $0.11 from a $2.2bn tariff refund. Operating cash flow of $34.4bn was a June-quarter record and Greater China returned to 22.4% growth.
• 30 Jul 2026 — Cautious September-quarter guidance. Management guided to revenue growth of 9–11% but gross margin of 47–48%, warning that advanced-node supply constraints would increase significantly sequentially and that memory pricing represented a "100-year flood".
• 30 Jul 2026 — Broadcom silicon agreement disclosed. Apple confirmed an agreement exceeding $30bn covering the design and production of custom silicon and wireless connectivity components.
• 08 Jul 2026 — EU General Court rules against Apple. The court dismissed Apple's challenge to its gatekeeper designation for the App Store and iOS and upheld the interoperability obligations under the Digital Markets Act. Apple may appeal to the Court of Justice on points of law only.
• 30 Jun 2026 — Supreme Court grants certiorari in the Epic contempt case. The case will be heard in the term beginning October 2026. Zero commission on qualifying US link-out purchases remains the operative rule in the meantime.
• 08 Jun 2026 — Siri AI unveiled at WWDC26. Apple showed a fully rebuilt Siri with multi-turn conversation, real-time world knowledge and cross-app personal context, shipping with iOS 27.
• 20 Apr 2026 — Chief executive succession announced. Apple confirmed that John Ternus, Senior Vice President of Hardware Engineering, becomes CEO on 1 September 2026, with Tim Cook moving to executive chairman and Arthur Levinson becoming lead independent director.
• 29 Jan 2026 — Q.ai acquisition. Apple acquired the Israeli AI audio and sensing startup for a reported figure of around $1.6bn, its second-largest acquisition ever. Gross intangible assets rose from $24,950m at FY2025 year-end to $38,220m by 27 June 2026.
• 12 Jan 2026 — Google Gemini selected to power Siri. Apple confirmed a multi-year agreement, reported at roughly $1bn a year, for a custom Gemini model of about 1.2 trillion parameters to run behind Siri inside Private Cloud Compute.

12. Key Dates

• 13 Aug 2026 — payment date for the $0.27 quarterly dividend declared on 30 July 2026 (record date was 10 August 2026)
• 26 Aug 2026 — Expected date for September event invitations to be issued, based on Apple's usual lead time
• 31 Aug 2026 — Tim Cook's final day as chief executive
• 01 Sep 2026 — John Ternus becomes chief executive; Cook becomes executive chairman; Arthur Levinson becomes lead independent director and Ternus joins the board
• 09 Sep 2026 — Expected September product event: iPhone 18 Pro, iPhone 18 Pro Max and Apple's first foldable iPhone (date not yet confirmed by Apple)
• 14 Sep 2026 — Expected public release of iOS 27 and Siri AI
• 26 Sep 2026 — Expected FY2026 fiscal year end, being the last Saturday of September
• 29 Oct 2026 — Expected Q4 FY2026 and full-year results (not yet confirmed by Apple)
• Expected Oct 2026 — US Supreme Court term opens; the Epic contempt appeal is to be heard during the term, argument date not yet scheduled
• Expected Nov 2026 — next quarterly dividend declaration, record date and payment, following the FY2025 pattern
• Expected Feb 2027 — annual meeting of shareholders (the FY2026 meeting was held 24 February 2026)
• Expected 2027 — earliest realistic trial date in the DOJ antitrust case if settlement talks reported in July 2026 do not conclude

Oral argument in the Google search remedies appeal, which bears directly on Apple's search licensing revenue, has not been scheduled and is not expected before late 2026 at the earliest. Track scheduled macro releases alongside these company dates on the ChartsView Economic Calendar, and discuss the setup with other members in the ChartsView Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

See also: Technical analysis on Nvidia · Nvidia company tracker

Last Updated: 4 September 2026

NVIDIA is the world's largest company by market capitalisation, at roughly $5.5 trillion, and it reached that position by supplying the accelerated-computing platform on which almost all frontier AI is trained and served. In the quarter ended 26 July 2026 the company reported revenue of $96.22bn, up 106% year on year, with Data Center alone contributing $89.02bn. What has changed most in 2026 is not the growth rate but the structure of the business around it: NVIDIA has issued $25bn of bonds, committed $366bn of future purchase and lease obligations, agreed to acquire Hugging Face for $12.93bn, and taken on a $105bn residual value guarantee against OpenAI's data-centre leases in Ohio. This report sets out what the filings say, without price targets or analyst ratings. The most recent reported period throughout is fiscal Q2 2027, reported on 26 August 2026.

1. Company Snapshot

Field	Value
Ticker / exchange	NVDA — Nasdaq Global Select Market
Headquarters	2788 San Tomas Expressway, Santa Clara, California, USA (Delaware incorporated)
Founded	1993
CEO / Leadership	Jen-Hsun (Jensen) Huang, founder, President and Chief Executive Officer. Colette Kress, EVP and Chief Financial Officer. Nicholas Parker became EVP, Worldwide Field Operations on 24 Aug 2026.
Employees	Approximately 42,000 in 38 countries at the end of FY2026, of which about 31,000 are in research and development (FY2026 Form 10-K)
Revenue (FY2026, year ended 25 Jan 2026)	$215,938m
Net income (FY2026, GAAP)	$120,067m
Most recent reported quarter	Fiscal Q2 2027, ended 26 Jul 2026, reported 26 Aug 2026: revenue $96,221m, GAAP diluted EPS $2.46
Market capitalisation	Approximately $5.52 trillion (3 Sep 2026 close of $228.45 on 24.147bn shares)
Fiscal year end	Last Sunday in January. FY2027 ends in late January 2027.
Dividend	$0.25 per share per quarter, raised from $0.01 with effect from the 26 Jun 2026 payment

2. Bull and Bear Case

Bull Case

• Growth has not decelerated at scale: revenue of $96.22bn in fiscal Q2 2027 was up 18% sequentially and 106% year on year, and guidance for fiscal Q3 2027 is $108.0bn plus or minus 2% — another 12% sequential step, explicitly assuming zero Data Center compute revenue from China.
• Margin structure is holding through the ramp: GAAP gross margin was 75.0% in the quarter, up 2.6 points year on year, with GAAP operating income of $63.73bn on operating expenses of just $8.41bn. Guidance for Q3 is 74.0% gross margin plus or minus 50 basis points.
• Vera Rubin is in full production, on schedule: the platform is running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. The NVL72 configuration is claimed at up to 30 times more work per watt for agentic AI than the prior generation, which matters when power, not silicon, is increasingly the constraint.
• Cash generation funds everything without strain: trailing twelve-month operating cash flow was $134.36bn against capital expenditure of $7.35bn. The company returned roughly $26.0bn to shareholders in the quarter and still held $99.0bn of remaining buyback authorisation at quarter end.
• The software and networking moat is widening, not just the GPU: CUDA remains the default development target, and NVIDIA now sells the full rack — Vera CPU, NVLink 6, ConnectX-9, BlueField-4 and Spectrum-6 — rather than a chip. The pending Hugging Face acquisition extends that into the model distribution layer.

Bear Case

• Commitments have outrun visibility: total future commitments reached $366bn at 26 Jul 2026, of which supply and capacity commitments alone jumped from $119bn to $279bn in a single quarter, with roughly $120bn falling due in the remainder of FY2027. Inventories rose to $31.58bn from $21.40bn at year end. If the AI capital-expenditure cycle pauses, these are contractual, not discretionary.
• Circular financing is now on the balance sheet: NVIDIA is simultaneously supplier, investor and credit backstop to its own customers — a $105bn cap on residual value guaranties for OpenAI's Ohio leases, $3,529m notional of land, power and shell guarantees for AI cloud partners against just $712m of partner escrow, $25bn of committed equity investments, and non-marketable securities that more than doubled to $51.16bn.
• Earnings quality has deteriorated: GAAP other income of $7,773m in the quarter was almost entirely $7,771m of gains on equity securities. That is why non-GAAP EPS of $2.22 sits below GAAP EPS of $2.46. Marketable equity securities rose from $12.89bn to $42.78bn in six months, so reported earnings now move with the share prices of NVIDIA's own investees.
• China is effectively closed, in the company's own words: NVIDIA states it was "effectively foreclosed" from China's data-centre compute market, took a $4.5bn H20 charge in FY2026 and a further $0.4bn H200 charge in the first half of FY2027, and shipped less than 1% of Data Center revenue there. H200 units must be inspected in the United States and carry a 25% import tariff NVIDIA cannot pass on.
• Custom silicon is growing faster than merchant GPUs: TrendForce puts custom-ASIC shipment growth at 44.6% in 2026 against 16.1% for merchant GPUs. The programmes behind that — Google TPU, Amazon Trainium, Microsoft and Meta, designed with Broadcom and Marvell — sit inside the same hyperscalers that represent NVIDIA's 13–16% individual revenue concentrations.

3. Business Segments

NVIDIA reports two segments, Compute and Networking and Graphics, and separately discloses revenue by market platform. That market-platform disclosure was restructured from fiscal Q1 2027: the former Data Center, Gaming, Professional Visualization, Automotive and OEM breakdown was replaced by Data Center, split into Hyperscale and AI Clouds, Industrial and Enterprise, plus Edge Computing. Prior periods were recast. Figures below are for fiscal Q2 2027.

Segment	% of revenue	What it is
Data Center — Hyperscale	50.6% ($48,710m)	GPUs, CPUs, networking and full racks sold to the largest cloud service providers. Up 102% year on year.
Data Center — AI Clouds, Industrial and Enterprise (ACIE)	41.9% ($40,313m)	Specialist AI cloud operators, sovereign AI programmes, enterprise and industrial deployments. Up 138% year on year.
Edge Computing	7.5% ($7,198m)	PCs, game consoles, workstations, AI-RAN base stations, robotics and automotive. Up 27% year on year.
Reportable segment: Compute and Networking	91.8% ($88,299m)	The accounting segment covering data-centre compute, networking and automotive platforms. Segment operating income $62,696m.
Reportable segment: Graphics	8.2% ($7,922m)	GeForce, professional visualisation, virtual GPU software and cloud gaming. Segment operating income $3,899m.

Geographically in the same quarter, revenue by customer headquarters was United States $60,074m, Taiwan $26,985m, China including Hong Kong $7,880m and other regions $1,282m. One direct customer accounted for 16% of total revenue in the quarter; across the first half of FY2027 three direct customers accounted for 16%, 15% and 13%.

4. Business Model and Moat

How it makes money. NVIDIA designs accelerated-computing systems and sells them, increasingly as complete racks rather than discrete chips, to cloud providers, AI laboratories, enterprises and governments. It manufactures nothing itself — TSMC fabricates the silicon and partners assemble the systems — so the model converts design and software leadership directly into gross margin. At 75.0% GAAP gross margin and only $8.41bn of quarterly operating expenses against $96.22bn of revenue, incremental revenue drops through at extraordinary rates.

Where the defensibility sits. The durable asset is CUDA and the software stack built on it. Two decades of libraries, frameworks and developer habit mean that a competing accelerator must be not merely cheaper but sufficiently better to justify rewriting a workload. NVIDIA has extended that from the chip to the rack: NVLink, Spectrum-X Ethernet, BlueField DPUs and the reference system designs make the whole cluster the product, which is far harder to substitute piecemeal than a GPU.

What has changed in the model this year. NVIDIA has moved upstream and downstream simultaneously. Upstream it has locked in supply, taking capacity commitments from $119bn to $279bn in one quarter and signing a multi-year memory partnership with SK hynix. Downstream it is underwriting demand — guaranteeing residual values on OpenAI's leases, investing equity in AI model makers and infrastructure financiers, and convening more than $500bn of third-party financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. The pending $12.93bn Hugging Face acquisition adds the model distribution layer.

Where the model is weakest. NVIDIA's customers are also its most credible competitors. The hyperscalers that generate its concentrated revenue are the same organisations funding custom accelerator programmes, and they have both the volume and the engineering depth to displace merchant silicon on their own internal workloads. Meanwhile the supply chain has no redundancy: essentially all leading-edge output comes from a single foundry, and advanced packaging and high-bandwidth memory are both hard constraints.

5. Financial Health

All figures below are taken from NVIDIA's quarterly earnings press releases, Forms 10-Q and 10-K, and the SEC XBRL company facts dataset. Fiscal years end on the last Sunday in January and are labelled by the calendar year in which they end.

Split basis. NVIDIA executed a four-for-one stock split effective 20 Jul 2021 and a ten-for-one split effective 10 Jun 2024. The per-share figures below are stated on the fully adjusted post-2024 basis. The FY2022 row required manual restatement: the latest SEC-tagged value for that year, $3.85, was filed in February 2024 before the ten-for-one split and has never been restated in a subsequent Form 10-K.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2022 (ended 30 Jan 2022)	$26,914m	+61.4%	$0.385	$0.444	$0.016	$10,946m
FY2023 (ended 29 Jan 2023)	$26,974m	+0.2%	$0.17	$0.334	$0.016	$9,703m
FY2024 (ended 28 Jan 2024)	$60,922m	+125.9%	$1.19	$1.296	$0.016	$8,459m
FY2025 (ended 26 Jan 2025)	$130,497m	+114.2%	$2.94	$2.99	$0.034	$8,463m
FY2026 (ended 25 Jan 2026)	$215,938m	+65.5%	$4.90	$4.77	$0.040	$7,469m

Long-term debt above is the non-current balance as tagged in each Form 10-K. It rose sharply after the year end: NVIDIA issued $25.0bn of senior notes across seven tranches maturing 2028 to 2056 in June 2026, taking non-current long-term debt to $32,366m at 26 Jul 2026, with $1,000m of current debt representing the 3.20% notes due 2026. FY2026 gross margin of 71.1% was depressed by the $4.5bn H20 China inventory write-down taken in the first quarter of that year.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 FY2027 (ended 26 Jul 2026)	$96,221m	$2.22†	$2.46
Q1 FY2027 (ended 26 Apr 2026)	$81,615m	$1.87†	$2.39
Q4 FY2026 (ended 25 Jan 2026)	$68,127m	$1.62	$1.76
Q3 FY2026 (ended 26 Oct 2025)	$57,006m	$1.30	$1.30
FY2026 full year (ended 25 Jan 2026)	$215,938m	$4.77	$4.90

† From fiscal Q1 2027 NVIDIA's non-GAAP measures no longer exclude stock-based compensation. The FY2027 adjusted figures are therefore calculated on a stricter basis than the FY2026 rows and the two are not directly comparable. On the restated basis including stock-based compensation, Q4 FY2026 adjusted EPS would have been $1.59.

Cash flow and balance sheet, taken from the fiscal Q2 2027 earnings release and Form 10-Q. For the six months to 26 Jul 2026: operating cash flow $74,421m, purchases related to property, equipment and intangible assets $4,434m, depreciation and amortisation $2,124m, share repurchases $39,044m and dividends paid $6,290m. For FY2026: operating cash flow $102,718m, capital expenditure $6,042m, depreciation and amortisation $2,843m. At 26 Jul 2026 NVIDIA held cash and equivalents of $22,443m plus marketable debt securities of $34,143m and a further $42,783m of marketable equity securities; total shareholders' equity was $228,984m, accounts receivable $63,059m and inventories $31,575m.

Guidance for fiscal Q3 2027, given on 26 Aug 2026: revenue of $108.0bn plus or minus 2%, GAAP and non-GAAP gross margin of 74.0% plus or minus 50 basis points, GAAP operating expenses of approximately $9.2bn and non-GAAP operating expenses of approximately $9.0bn, with a full-year tax rate of 16.0% to 18.0%. The outlook assumes no Data Center compute revenue from China.

6. Valuation Metrics

Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Share price (3 Sep 2026 close)	$228.45
Market cap	~$5,516bn (24.147bn shares outstanding per the 10-Q cover page × $228.45)
Trailing P/E (GAAP)	~28.9x (trailing twelve-month GAAP diluted EPS of $7.91 = first-half FY2027 $4.85 plus Q4 FY2026 $1.76 plus Q3 FY2026 $1.30). Note that GAAP earnings are flattered by $23.7bn of equity-securities gains in the first half; on trailing non-GAAP EPS of $7.01 the same calculation gives approximately 32.6x, though the non-GAAP definition changed mid-series.
P/E (forward)	~23.4x, derived from company guidance rather than consensus: Q3 FY2027 revenue of $108.0bn at 74.0% gross margin less $9.0bn non-GAAP operating expenses implies roughly $70.9bn of operating income, or about $2.44 per share after tax at the 17% midpoint on 24.1bn shares, annualised at four times. This assumes no further sequential growth and excludes non-operating equity gains.
P/S (TTM)	~18.2x (market cap ~$5,516bn / trailing twelve-month revenue $302,970m)
Enterprise value	~$5,493bn (market cap ~$5,516bn + total debt $33,366m − cash, equivalents and marketable debt securities $56,586m, per the 26 Jul 2026 balance sheet. Excludes $42,783m of marketable equity securities.)
EV/EBITDA (TTM)	~27.3x (EV ~$5,493bn / EBITDA $201,266m; EBITDA = trailing operating income $197,579m + depreciation and amortisation $3,687m, both built from the income statement and cash flow statement across the second half of FY2026 and the first half of FY2027)
P/FCF	~43.4x (market cap ~$5,516bn / free cash flow $127,006m; FCF = trailing operating cash flow $134,360m − trailing capital expenditure $7,354m)
Price/book	~24.1x (market cap ~$5,516bn / total shareholders' equity $228,984m at 26 Jul 2026)
52-week high	$236.54
52-week low	$164.07
Short interest (% of float)	~1.23% (285,956,804 shares short at the 14 Aug 2026 settlement date against a float of 23.127bn shares)
Days to cover	2.35

Two cautions. The trailing GAAP multiple is calculated on earnings that include large non-operating gains on equity investments, which can reverse; net unrealised gains on publicly held equity securities were $12.5bn in the first half alone. The forward multiple rests on a single quarter of company guidance annualised, because NVIDIA does not guide earnings per share or full-year revenue. Compare the live picture using ChartsView Live Charts.

7. What Are They Building

NVIDIA spent $7,054m on research and development in fiscal Q2 2027 alone, up 64% year on year, and $18,497m across FY2026 — three and a half times the FY2022 figure.

Vera Rubin. The current flagship platform entered full production and is deployed at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. It comprises six co-designed chips: the Rubin GPU, Vera CPU, NVLink 6 switch, ConnectX-9 SuperNIC, BlueField-4 DPU and Spectrum-6 Ethernet switch. The NVL72 rack pairs 72 Rubin GPUs with 36 Vera CPUs at roughly 260 TB/s of aggregate NVLink bandwidth, rated at 3.6 exaflops of NVFP4 inference and 2.5 exaflops of training, fully liquid cooled, and claimed at up to 30 times more work per watt for agentic AI than the prior generation.

Vera and Rubin CPX. NVIDIA describes Vera as the first CPU built for AI agents, with SpaceXAI announced as a deployer on 24 Aug 2026. Rubin CPX is a specialised GPU class with 128GB of GDDR7 optimised for the compute-bound prefill phase of million-token-context inference, paired with standard Rubin GPUs in the NVL144 CPX rack.

Networking and storage. Spectrum-6 switch systems supporting both pluggable and co-packaged optics are being deployed across large AI facilities. NVLink Fusion was expanded with NVHBM custom high-bandwidth memory on 26 Aug 2026, and BlueField-4 underpins an AI-native inference context memory storage tier.

Roadmap beyond Rubin. Rubin Ultra is targeted for the second half of 2027 in the Kyber NVL576 rack, moving to a quad-die GPU module. Reports in July 2026 suggested Kyber could slip toward 2028; NVIDIA responded that its roadmap is intact but published no revised schedule. The post-Rubin generation, Feynman, is expected in 2028 paired with the Rosa CPU, using stacked GPUs and optical NVLink. The Groq 3 LPX interactive inference accelerator, arising from the Groq licensing transaction, entered full production on 24 Aug 2026.

8. Competitors and Market Position

Market capitalisations below were re-checked live on 3–4 September 2026.

Peer	Market cap (September 2026)	Key 2025 metric
Broadcom (AVGO)	~$1,699bn	Trailing twelve-month revenue $75.5bn at 76.3% gross margin; the principal custom-XPU design partner to the hyperscalers
Alphabet (GOOGL)	~$4,189bn	Trailing twelve-month revenue $445.9bn; operates the Tensor Processing Unit programme, the largest internal custom accelerator effort
Amazon (AMZN)	~$2,793bn	Trailing twelve-month revenue $775.7bn; develops Trainium and Inferentia, yet agreed on 26 Aug 2026 to take two million additional NVIDIA GPUs
AMD (AMD)	~$745bn	Trailing twelve-month revenue $41.3bn; signed six-gigawatt agreements with both Meta and OpenAI; Instinct estimated at 5–7% of the AI accelerator market
Intel (INTC)	~$485bn	Trailing twelve-month revenue $57.0bn at 38.9% gross margin and loss-making on a trailing basis; AI GPU share estimated near 1%
Marvell (MRVL)	~$188bn	Trailing twelve-month revenue $9.45bn; second-source custom AI silicon designer to the hyperscalers

Estimates of NVIDIA's share of the AI accelerator market for 2026 range from 70% to 86%, narrowing to roughly 75–81% for the first half of 2026 once hyperscaler custom silicon is counted in the denominator. The structural pressure is visible in shipment growth rather than share: TrendForce puts custom-ASIC shipment growth at 44.6% in 2026 against 16.1% for merchant GPUs. Two other companies matter more as dependencies than as rivals. TSMC, at roughly $2,163bn, fabricates essentially all leading-edge NVIDIA silicon and is the single most critical supplier. Micron, at roughly $1,082bn, is one of three qualified high-bandwidth memory suppliers, all of which have sold out 2026 HBM capacity. NVIDIA has also noted in its own filings that exclusion from China helped competitors there build larger developer and customer ecosystems.

9. Insider Activity

The most striking feature of NVIDIA's 2026 Form 4 record is what founder, President and Chief Executive Officer Jensen Huang did not do: he made no open-market sales of NVIDIA stock through 4 September 2026, a break from prior years' pre-arranged selling programmes. His only dispositions were gifts — 117,925,204 shares on 18 Mar 2026 and a further 400,000 on 16 Jun 2026, transactions typical of transfers to family trusts or charitable vehicles — plus mandatory tax withholding on vesting. Director Mark Stevens, by contrast, has been by far the largest seller. All transactions below are from Forms 4 filed under CIK 0001045810.

Name	Date	Type	Shares	Price	Value	Plan Type
Mark A. Stevens (Director)	31 Aug – 2 Sep 2026	Sale	1,848,501	$220.06–$226.27	~$410.8m	No plan cited
Timothy S. Teter (EVP, General Counsel)	31 Aug 2026	Sale	30,000	$216.84–$218.53	~$6.5m	Rule 10b5-1
Mark A. Stevens (Director)	18 Jun 2026	Sale	885,000	$209.70–$210.44	~$186.0m	No plan cited
Mark A. Stevens (Director)	2–4 Jun 2026	Sale	1,000,000	$217.66–$222.38	~$221.1m	No plan cited
Stephen C. Neal (Director)	3 Jun 2026	Sale	15,500	$215.73	$3.34m	No plan cited
Colette Kress (EVP and CFO)	20 Mar 2026	Sale	62,645	$171.97–$177.51	~$11.0m	Rule 10b5-1
Ajay K. Puri (then EVP, Worldwide Field Operations)	18 Mar 2026	Sale	300,000	$181.31–$182.94	~$54.8m	Rule 10b5-1
Aarti S. Shah (Director)	19 Mar 2026	Sale	19,000	$176.71	$3.36m	Rule 10b5-1

Mark Stevens sold roughly 3,955,183 shares for approximately $856m across 2026, and his filings do not carry the Rule 10b5-1 footnote that the officer sales do. There were no open-market purchases by any insider during the period. Remaining Form 4 activity was routine tax withholding on vesting, annual director stock grants and the March 2026 executive equity awards.

10. Key Risks

• Extreme customer concentration: one direct customer was 16% of total revenue in fiscal Q2 2027, and three direct customers were 16%, 15% and 13% of first-half revenue. NVIDIA's own risk factors state that revenue could be adversely affected if it loses or is prevented from selling to any of these customers. Indirect concentration in a handful of hyperscalers is greater still.
• China and export controls: NVIDIA states it has been effectively foreclosed from China's data-centre compute market. It took a $4.5bn H20 charge in FY2026 and a $0.4bn H200 charge in the first half of FY2027, shipped less than 1% of Data Center revenue to China in the quarter, and faces a 25% US import tariff on H200 units that it cannot pass to customers. The replacement for the rescinded AI Diffusion rule remains undefined.
• Purchase and lease commitments of $366bn: supply and capacity commitments of $279bn, cloud service agreements of $29bn, uncommenced data-centre leases of $25bn, equity investment commitments of $25bn and capital expenditure of $8bn, with roughly $120bn falling due in the remainder of FY2027. NVIDIA's risk factors already acknowledge that long lead times combined with inaccurate demand estimates have led to supply and demand mismatches.
• Counterparty and vendor-financing exposure: the $105bn cap on residual value guaranties for OpenAI's Ohio leases, $3,529m notional of land, power and shell guarantees against $712m of partner escrow, $4.7bn of maximum variable-interest-entity loss exposure, $4,800m notional of public company warrants and $51.16bn of non-marketable securities together convert customer credit risk into NVIDIA balance-sheet risk.
• Competition from custom silicon: custom-ASIC shipment growth of 44.6% in 2026 against 16.1% for merchant GPUs, driven by Google, Amazon, Microsoft and Meta programmes designed with Broadcom and Marvell, targets precisely NVIDIA's largest customers. AMD has signed six-gigawatt agreements with both Meta and OpenAI.
• Supply-chain concentration: NVIDIA manufactures nothing, depending on third parties to fabricate, assemble, package and test. Essentially all leading-edge output comes from TSMC, advanced packaging capacity is a hard constraint, and high-bandwidth memory is sold out across all three qualified suppliers for calendar 2026.
• Earnings quality and reversal risk: GAAP other income of $7,773m in the quarter was almost entirely equity-securities gains, and marketable equity securities rose from $12.89bn to $42.78bn in six months. Reported GAAP earnings now move materially with the share prices of NVIDIA's own ecosystem investees and can reverse.
• Antitrust and regulatory scrutiny: the Form 10-Q discloses increased regulator interest in the European Union, United States, United Kingdom, South Korea, Japan and China, including broad information requests from EU competition regulators. China's antitrust authorities published a preliminary finding in September 2025 that NVIDIA violated conditions of the Mellanox approval, the US Department of Justice has issued subpoenas over exclusivity practices, and the French Competition Authority is examining whether gaming and data-centre GPUs are separate product categories. The pending Hugging Face acquisition requires approvals in that environment.
• Power and physical build-out constraints: NVIDIA is now securing land, power and shell capacity directly, an acknowledgement that grid capacity rather than silicon is becoming the gating factor. It has committed $25bn to data-centre leases that have not yet commenced, dependent on construction completion, with terms of up to twenty years.

11. Recent Developments

• 03 Sep 2026 — NVIDIA agrees to acquire Hugging Face for $12.93bn. The definitive agreement was signed on 2 Sep 2026 and comprises approximately $11.9bn of cash to stockholders plus up to roughly $1.0bn of retention equity, expected to close in the first half of calendar 2027 subject to regulatory approvals. NVIDIA committed to keep the platform open to any model or dataset and to continue supporting other silicon vendors, and added a new standalone risk factor covering government restrictions on open-source models.
• 31 Aug 2026 — Director Mark Stevens begins the largest insider disposal of the year, selling 1,848,501 shares for approximately $410.8m across 31 Aug to 2 Sep 2026.
• 26 Aug 2026 — fiscal Q2 2027 results. Revenue of $96.22bn, up 106% year on year, GAAP diluted EPS of $2.46, GAAP gross margin of 75.0%, and Q3 guidance of $108.0bn assuming no Data Center compute revenue from China. Approximately $26.0bn was returned to shareholders in the quarter with $99.0bn of buyback authorisation remaining.
• 26 Aug 2026 — AWS agrees to deploy two million additional NVIDIA GPUs alongside next-generation infrastructure for agentic and physical AI, a significant expansion of the existing collaboration. NVLink Fusion was expanded with NVHBM custom high-bandwidth memory the same day.
• 17 Aug 2026 — $105bn residual value guarantee for OpenAI data-centre leases. NVIDIA entered residual value guaranties with SB Energy covering leases for roughly 4.25 gigawatts of IT load at the PORTS-Pike campus in Pike County, Ohio, with discretion to credit-support a further 3.8 gigawatts. OpenAI is the tenant and has agreed to reimburse and indemnify NVIDIA. Obligations trigger on OpenAI insolvency or payment failure and are expected to begin in 2028.
• 11 Aug 2026 — more than $500bn of third-party AI infrastructure financing platforms announced with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, subject to definitive agreements.
• 02 Jul 2026 — leadership transition in worldwide sales. Ajay Puri, EVP Worldwide Field Operations and a 21-year veteran, notified the company on 28 Jun 2026 of his intention to retire. Nicholas Parker, previously EVP and Chief Business Officer of Microsoft's Worldwide Sales and Solutions, took the role on 24 Aug 2026.
• 17 Jun 2026 — $25.0bn senior notes issued across seven tranches maturing between 2028 and 2056, taking non-current long-term debt from $7.5bn to $32.4bn, alongside a $25.0bn commercial paper programme with nothing drawn.
• 07 Jun 2026 — multi-year memory partnership with SK hynix covering next-generation memory across NVIDIA's forward product roadmap, part of a broader effort to secure high-bandwidth memory allocation across all three qualified suppliers.
• 20 May 2026 — $80bn additional buyback authorisation and a 25-fold dividend increase. The board approved the repurchase authorisation on 18 May 2026 and raised the quarterly dividend from $0.01 to $0.25 per share, first paid on 26 Jun 2026.

12. Key Dates

• 10 Sep 2026 — record date for the $0.25 per share quarterly dividend declared with fiscal Q2 2027 results.
• 01 Oct 2026 — payment date for that $0.25 per share quarterly dividend.
• Expected Nov 2026 — fiscal Q3 2027 results for the quarter ending in late October 2026. NVIDIA had not issued a conference-call scheduling release as of 4 Sep 2026; the prior-year equivalent was reported on 19 Nov 2025. Aggregator estimates cluster around late November. Track confirmations on the ChartsView Economic Calendar.
• Expected Feb 2027 — fiscal Q4 and full-year 2027 results, based on the pattern of the FY2026 report on 25 Feb 2026.
• 14 Mar 2027 — GTC AI Conference 2027 opens at the San Jose McEnery Convention Center, running to 18 Mar 2027. Registration is stated to open later in autumn 2026 and the keynote line-up has not been announced.
• Expected Jun 2027 — 2027 annual meeting of stockholders. The 2026 meeting was held virtually on 24 Jun 2026 and results were filed on 30 Jun 2026.
• TBD — completion of the Hugging Face acquisition, which NVIDIA expects in the first half of calendar 2027 subject to regulatory approvals.

Lease commencements at the OpenAI and SB Energy Ohio campus are expected to be ready for service beginning in 2028, which is when NVIDIA's residual value guarantee obligations could first be triggered. No regional GTC date for Washington DC in 2026 has been confirmed.

Discuss this company with other ChartsView members in the Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

See also: Technical analysis on Micron · Micron company tracker

Last Updated: 4 September 2026

Micron Technology is the only American-headquartered manufacturer of both DRAM and NAND flash memory, and it is currently living through the most violent upcycle in the industry's history. Revenue in the quarter ended 28 May 2026 was $41.46bn — more than four times the $9.30bn Micron reported in the same quarter a year earlier — on gross margins of 84.6%. The cause is a structural shortage of high-bandwidth memory (HBM) and conventional DRAM created by AI data-centre construction, and Micron has responded by selling out its entire calendar-2026 HBM output, locking in roughly $100bn of minimum contracted revenue and committing more than $250bn of US investment through 2035. This report sets out what the filings actually say, without price targets or analyst ratings. Micron's fiscal 2026 year ended in early September 2026 but has not yet been reported; the most recent reported period throughout is fiscal Q3 2026, reported on 24 June 2026.

1. Company Snapshot

Field	Value
Ticker / exchange	MU — Nasdaq Global Select Market
Headquarters	8000 S. Federal Way, Boise, Idaho, USA (Delaware incorporated)
Founded	1978
CEO / Leadership	Sanjay Mehrotra, Chairman and Chief Executive Officer. Mark Murphy, EVP and Chief Financial Officer. Manish Bhatia became President and Chief Operating Officer on 26 Aug 2026.
Employees	Approximately 53,000 as of 28 Aug 2025 (FY2025 Form 10-K, latest company disclosure)
Revenue (FY2025, year ended 28 Aug 2025)	$37,378m
Net income (FY2025, GAAP)	$8,539m
Most recent reported quarter	Fiscal Q3 2026, ended 28 May 2026, reported 24 Jun 2026: revenue $41,456m, GAAP diluted EPS $24.67
Market capitalisation	Approximately $1.08 trillion (3 Sep 2026 close of $958.16 on 1,129.4m shares)
Fiscal year end	The Thursday nearest 31 August. FY2026 ended 3 Sep 2026 and has not yet been reported.
Dividend	$0.15 per share per quarter, raised 30% from $0.115 on 18 Mar 2026

2. Bull and Bear Case

Bull Case

• Contracted revenue, not spot hope: Micron disclosed with Q3 FY2026 results that 14 of its 16 Strategic Customer Agreements carry cumulative revenue at minimum price of approximately $100bn over their remaining terms. That converts a notoriously spot-priced commodity into something closer to a backlog.
• HBM is sold out and the mix is shifting: the entire calendar-2026 HBM output is committed, HBM4 revenue has already passed $1bn, and the HBM4 12-high ramp is running roughly twice as fast as HBM3E 12-high did. Cloud and core data-centre business units together were 61.0% of revenue in Q3 FY2026, at 83% and 87% gross margin respectively.
• Balance sheet transformed inside nine months: long-term debt fell from $14,017m at 28 Aug 2025 to $5,140m at 28 May 2026 through tender offers and prepayments, while cash and short-term investments rose from $10,307m to $26,022m and total equity nearly doubled to $100,724m.
• 1-gamma node leadership: Micron was first in the industry to ship the 1-gamma DRAM node and expects it to become the highest-volume node in company history. It underpins 16Gb LPDDR5X already ramping at a leading smartphone OEM, 256GB DDR5 RDIMM samples, and the HBM4E generation targeted for volume production in calendar 2027.
• Capital return is contractually about to loosen: buybacks have been constrained by CHIPS Act direct-funding conditions, with only $650m repurchased under the programme in the first nine months of FY2026. Management has said it intends to increase capital return from 9 Dec 2026, the second anniversary of the CHIPS agreements, and over time to return 100% of excess cash.

Bear Case

• This is a cycle, and Micron says so: the company's own risk disclosure states that over the past five fiscal years annual DRAM average selling prices have moved between an increase in the low-40% range and a decrease in the high-40% range. DRAM ASPs rose approximately 140% in the first nine months of FY2026. Reversion from that level would be brutal.
• FY2023 is the reference point, not FY2025: three fiscal years ago revenue halved to $15,540m and the company lost $5.34 per share on a GAAP basis. The same asset base produced both outcomes.
• Capital intensity is escalating faster than revenue guidance: FY2026 capex is guided to approximately $27bn and FY2027 above the mid-$40bn range, mostly construction. New Idaho and New York fabs will carry depreciation for years before contributing revenue.
• Third place in the HBM4 race: NVIDIA has certified Samsung, SK hynix and Micron for the Vera Rubin platform, but SK hynix is reported to hold roughly 60–70% of that volume and Samsung 25–30%, leaving Micron the remainder. Micron is the smallest of the three qualified suppliers on the highest-value product.
• Customer and end-market concentration: Micron disclosed that in FY2025 more than half of total revenue came from its top ten customers and approximately one-half of revenue was concentrated in the data-centre end market. The exit from China's server market removed roughly $3.4bn of prior-year revenue and narrowed the customer set further.

3. Business Segments

Micron reports four business units. The structure has been unchanged through FY2025 and FY2026, with prior-year comparatives presented on the same basis. Figures below are for fiscal Q3 2026, the quarter ended 28 May 2026.

Segment	% of revenue	What it is
Cloud Memory Business Unit (CMBU)	33.2% ($13,769m)	HBM and high-capacity DRAM sold to hyperscale cloud operators. 83% gross margin, 78% operating margin in the quarter.
Core Data Center Business Unit (CDBU)	27.8% ($11,524m)	Server DRAM modules and data-centre SSDs for enterprise and non-hyperscale cloud. 87% gross margin.
Mobile and Client Business Unit (MCBU)	27.8% ($11,521m)	LPDDR mobile DRAM, client SSDs and PC memory. 87% gross margin.
Automotive and Embedded Business Unit (AEBU)	11.2% ($4,634m)	Automotive, industrial and embedded memory and storage, including UFS 4.1 automotive NAND. 79% gross margin.
All Other	0.02% ($8m)	Residual activity not allocated to a business unit.

By technology in the same quarter: DRAM $31,328m (75.6% of revenue), NAND $9,943m (24.0%) and other products, primarily NOR flash, $185m (0.4%).

4. Business Model and Moat

How it makes money. Micron designs and manufactures memory and storage semiconductors in its own fabrication plants and sells them to cloud operators, server OEMs, smartphone makers, PC builders and automotive suppliers. Revenue is the product of bits shipped and average selling price per bit. Because the marginal cost of an additional wafer is largely fixed once a fab is built, the model is enormously operationally geared: in fiscal Q3 2026 a 346% year-on-year revenue increase produced an operating margin of 80.4%, against 23.3% in the comparable prior-year quarter.

Where the defensibility sits. There are only three companies in the world capable of manufacturing leading-edge DRAM at scale — Samsung, SK hynix and Micron — and the barrier is not patents but capital and process yield. A leading-edge memory fab is a multi-year, tens-of-billions commitment with no salvage value if the node is wrong. Micron's 1-gamma node, shipped first in the industry, and its advanced HBM packaging capacity are the current expressions of that lead.

What has changed structurally. HBM is not a commodity in the way conventional DRAM is. It is qualified per customer, per platform, and it is sold under multi-year agreements at negotiated minimum prices — Micron's 16 Strategic Customer Agreements carry roughly $100bn of minimum contracted revenue. That is a different business model from the spot DRAM market that produced the FY2023 collapse, and it is why the company has been willing to commit more than $250bn of US investment through 2035.

Where the model is weakest. Micron does not control demand. It controls supply, and supply decisions are made three to five years ahead of the revenue they serve. The exit from China's server market and the wind-down of the Crucial consumer brand both narrow the customer base at precisely the moment capacity is being expanded.

5. Financial Health

All figures below are taken from Micron's quarterly earnings press releases, Forms 10-Q and 10-K, and the SEC XBRL company facts dataset. Fiscal years end on the Thursday nearest 31 August.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021 (ended 2 Sep 2021)	$27,705m	+29.3%	$5.14	$6.06	$0.10	$6,621m
FY2022 (ended 1 Sep 2022)	$30,758m	+11.0%	$7.75	$8.35	$0.315	$6,803m
FY2023 (ended 31 Aug 2023)	$15,540m	−49.5%	−$5.34	−$4.45	$0.46	$13,052m
FY2024 (ended 29 Aug 2024)	$25,111m	+61.6%	$0.70	$1.30	$0.46	$12,966m
FY2025 (ended 28 Aug 2025)	$37,378m	+48.9%	$7.59	$8.29	$0.46	$14,017m

Long-term debt above is the non-current balance as tagged in each Form 10-K. It fell sharply after the fiscal year end: at 28 May 2026 non-current long-term debt was $5,140m and current debt $582m, for total debt of $5,722m, following cash tender offers settled on 3 Apr 2026 and a series of note prepayments from October 2025 onwards.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q3 FY2026 (ended 28 May 2026)	$41,456m	$25.11	$24.67
Q2 FY2026 (ended 26 Feb 2026)	$23,860m	$12.20	$12.07
Q1 FY2026 (ended 27 Nov 2025)	$13,643m	$4.78	$4.60
Q4 FY2025 (ended 28 Aug 2025)	$11,315m	$3.03	$2.83
FY2025 full year (ended 28 Aug 2025)	$37,378m	$8.29	$7.59

Cash flow and balance sheet, taken from the Q3 FY2026 Form 10-Q and the FY2025 Form 10-K. For the nine months to 28 May 2026: operating cash flow $45,702m, expenditures for property, plant and equipment $19,602m, depreciation and amortisation $6,862m. For FY2025: operating cash flow $17,525m, capital expenditure $15,857m, depreciation and amortisation $8,352m. At 28 May 2026 Micron held cash and equivalents of $24,995m plus short-term investments of $1,027m, with a further $4,106m of long-term marketable investments; total equity was $100,724m and inventories $8,567m.

Guidance for fiscal Q4 2026, given on 24 Jun 2026: revenue of $50.0bn plus or minus $1.0bn, gross margin of approximately 86%, and non-GAAP diluted EPS of $31.00 plus or minus $1.00 on roughly 1.15bn diluted shares. Management said free cash flow in the quarter is expected to exceed $30bn.

6. Valuation Metrics

Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Share price (3 Sep 2026 close)	$958.16
Market cap	~$1,082bn (1,129.4m shares outstanding at 28 May 2026 × $958.16)
Trailing P/E (GAAP)	~21.7x (trailing twelve-month GAAP diluted EPS of $44.24 = nine-month FY2026 $41.40 plus Q4 FY2025 $2.84). On trailing non-GAAP EPS of $45.12 the same calculation gives approximately 21.2x.
P/E (forward)	~13.1x on FY2026 non-GAAP EPS of approximately $73.09, derived from nine-month actual non-GAAP EPS of $42.09 plus company guidance midpoint of $31.00 for Q4 FY2026. Micron issues no full-year EPS guidance beyond the current quarter.
P/S (TTM)	~12.0x (market cap ~$1,082bn / trailing twelve-month revenue $90,274m)
Enterprise value	~$1,062bn (market cap ~$1,082bn + total debt $5,722m − cash and short-term investments $26,022m, per the 28 May 2026 balance sheet. Excludes $4,106m of long-term marketable investments.)
EV/EBITDA (TTM)	~15.6x (EV ~$1,062bn / EBITDA $68,254m; EBITDA = trailing operating income $59,243m + depreciation and amortisation $9,011m, both built from the cash flow statement and income statement across Q4 FY2025 and the first nine months of FY2026)
P/FCF	~41.3x (market cap ~$1,082bn / free cash flow $26,172m; FCF = trailing operating cash flow $51,432m − trailing capital expenditure $25,260m). The ratio is high because Micron is spending roughly half its operating cash flow on capacity.
Price/book	~10.7x (market cap ~$1,082bn / total equity $100,724m at 28 May 2026)
52-week high	$1,255.00
52-week low	$125.66
Short interest (% of float)	~2.67% (30,016,025 shares short at the 14 Aug 2026 settlement date against a float of 1,125.6m shares)
Days to cover	0.7

Two cautions on these figures. First, the trailing multiples are calculated on earnings generated during the steepest part of an upcycle, and Micron's own filings document DRAM price swings of more than 40% in either direction within a single year. Second, the forward multiple relies on one quarter of company guidance, not a full year. Readers can compare the live picture using ChartsView Live Charts.

7. What Are They Building

Micron spent $1,316m on research and development in fiscal Q3 2026 alone, and $3,737m across the first nine months of FY2026 — already approaching the $3,798m spent in the whole of FY2025.

Memory roadmap. HBM4, built on the 1-beta DRAM node, is in high-volume shipment for the lead customer's platform, with qualification samples at multiple end-customers and revenue already past $1bn. HBM4E, built on 1-gamma, is in development with volume production expected in calendar 2027. On the 1-gamma node itself, Micron has shipped qualification samples of 256GB DDR5 RDIMMs using advanced 3D die stacking, is ramping 16Gb LPDDR5X at a leading smartphone OEM, is sampling 24Gb LP5X to multiple smartphone customers, and has shipped first 1-gamma DDR5 samples to a robotaxi customer.

Storage roadmap. G9 NAND now supports a PCIe Gen6 high-performance SSD in high-volume production, a 245TB QLC SSD in shipment, a Gen5 QLC client SSD qualified at a lead customer, and the first volume shipments of G9-based UFS 4.1 automotive NAND.

Manufacturing. The Idaho ID1 fab is projected to produce first DRAM wafers in mid-calendar 2027, with ID2 construction beginning in 2026 for initial output in late calendar 2028. Micron broke ground on the first of up to four Clay, New York DRAM fabs in January 2026, supplying from 2030 and beyond. In Singapore the company broke ground on an HBM advanced packaging facility in January 2025, materially expanding packaging capacity from the first half of calendar 2027, and on an additional wafer fab in January 2026. The Gujarat assembly and test facility in India has commenced commercial shipments and ramps through 2026, and Hiroshima is being modernised for future DRAM nodes. The overall US commitment now exceeds $250bn through 2035, targeting 40% of Micron DRAM manufactured in the United States by the mid-2030s, backed by up to $6.4bn of CHIPS Act grants, a 35% investment tax credit and a non-binding New York State term sheet for up to $5.5bn.

8. Competitors and Market Position

Market capitalisations below were re-checked live on 3–4 September 2026. Non-US figures are converted at spot rates of 1,353 KRW and 156.3 JPY to the dollar.

Peer	Market cap (September 2026)	Key 2025 metric
Samsung Electronics (005930.KS)	~$1,247bn (KRW 1,687.6tn)	Number one in DRAM at approximately 38.5–39% revenue share in Q2 calendar 2026 on $37.32bn of DRAM revenue, and approximately 28% of NAND revenue (TrendForce)
SK hynix (000660.KS)	~$878bn (KRW 1,187.6tn)	Number two in DRAM at approximately 26–28.8% share in Q2 calendar 2026 on $27.98bn of DRAM revenue; reported to hold roughly 60–70% of NVIDIA Vera Rubin HBM4 volume
Sandisk (SNDK)	~$228bn	Pure-play NAND following the 2025 separation from Western Digital; trailing twelve-month revenue approximately $20.2bn
Kioxia Holdings (285A.T)	~$191bn (JPY 29.9tn)	NAND revenue of approximately $10.72bn in Q2 calendar 2026, up 79.9% quarter on quarter, for roughly 13.6% share (TrendForce)
Western Digital (WDC)	~$159bn	Hard-disk-only after the Sandisk separation; trailing twelve-month revenue approximately $12.9bn

Micron's own position: approximately 22.4% of DRAM revenue in Q2 calendar 2026 on TrendForce's $21.75bn estimate, or approximately 25% on Counterpoint's basis, which places Micron within roughly one percentage point of SK hynix for second place. In NAND, Micron held approximately 14% share in the same quarter, moving into third place. On HBM4 for the Vera Rubin platform, Micron is the third qualified supplier behind SK hynix and Samsung. The upstream customer of consequence is NVIDIA, which certified all three suppliers for Vera Rubin HBM4 in early June 2026 and has requested 16-high HBM samples by the fourth quarter of 2026.

9. Insider Activity

Chairman and Chief Executive Officer Sanjay Mehrotra has been selling steadily throughout 2026 under Rule 10b5-1 trading plans, at a consistent 40,000 shares per month. He terminated an 8 Nov 2025 plan on 30 Jan 2026 and adopted a new plan covering up to 200,000 shares. The single notable purchase of the year was made by a director rather than an officer. All transactions below are taken from Forms 4 filed with the SEC under CIK 0000723125.

Name	Date	Type	Shares	Price	Value	Plan Type
Sanjay Mehrotra (Chairman and CEO)	21 Aug 2026	Sale	40,000	$968.90	$38.76m	Rule 10b5-1
Sumit Sadana (then EVP and Chief Business Officer)	18 Aug 2026	Sale	15,000	$934.29	$14.01m	Discretionary
Sanjay Mehrotra (Chairman and CEO)	24 Jul 2026	Sale	40,000	$932.25	$37.29m	Rule 10b5-1
April Arnzen (EVP and Chief People Officer)	1 Jul 2026	Sale	40,000	$1,083.94	$43.36m	Rule 10b5-1
Lynn Dugle (Lead Independent Director)	30 Jun 2026	Sale	1,300	$1,150.43	$1.50m	Discretionary
Sanjay Mehrotra (Chairman and CEO)	26 Jun 2026	Sale	40,000	$1,158.38	$46.34m	Rule 10b5-1
Manish Bhatia (now President and COO)	22 Jan 2026	Sale	26,623	$391.04	$10.41m	Discretionary
Teyin M. Liu (Director)	13–14 Jan 2026	Open-market purchase	23,200	~$337.07	$7.82m	Discretionary

The pattern is one-directional apart from the January purchase: officers and directors have been consistent net sellers into strength across 2026, the majority under pre-arranged plans adopted before the run in the share price. Remaining Form 4 activity in the period was routine tax withholding on vesting and small director stock-unit accruals.

10. Key Risks

• Memory price cyclicality: Micron's own risk factors state that annual DRAM average selling price changes over the past five fiscal years have ranged from an increase in the low-40% range to a decrease in the high-40% range. DRAM ASPs rose approximately 140% across the first nine months of FY2026 and NAND ASPs approximately 130%. The entire earnings base rests on prices that the company itself documents as violently mean-reverting.
• Capital intensity and expansion execution: FY2026 capex of approximately $27bn and FY2027 capex guided above the mid-$40bn range are committed against demand that will not appear until 2027–2030. Micron carried $2.93bn of property, plant and equipment purchase obligations at 28 May 2026. The named risk factor is realising expected returns from capacity expansions.
• China exposure and export controls: Micron is exiting the server and data-centre chip market in mainland China following the 2023 Cyberspace Administration of China ban, removing revenue that was approximately $3.4bn, or roughly 12% of the total, in the prior fiscal year. YMTC has filed multiple patent infringement suits in China and the United States covering 3D NAND, DDR5 DRAM and SSDs. Tariffs, trade restrictions and further government action remain live risks.
• Customer and end-market concentration: in FY2025 more than half of total revenue came from the top ten customers and approximately one-half of revenue came from the data-centre end market. HBM4 volumes are concentrated on a small number of AI accelerator platforms controlled by a single dominant buyer.
• Competitive position in HBM: Samsung and SK hynix are both qualified on the same NVIDIA HBM4 platform and hold the large majority of that volume. SK hynix has a multi-year co-development agreement with NVIDIA. Separately, China's CXMT has reached roughly 7% of the DRAM market and is growing.
• Government incentive conditions and clawback: CHIPS Act grants of up to $6.4bn and the New York State term sheet for up to $5.5bn are conditioned on outcomes and compliance and are subject to reduction, termination or clawback. The same agreements currently restrict share repurchases.
• Labour action in Taiwan: Micron's Taiwanese unions, representing roughly 10,000 of about 15,000 employees in Taoyuan and Taichung, moved toward a strike vote in September 2026 over profit-sharing, after more than 80% of surveyed members backed action in an August internal poll.
• Litigation: ongoing YMTC and Netlist patent actions, a securities class action in the District of Idaho, and a New York state petition filed on 16 Jan 2026 challenging the environmental review for the Clay fabs and seeking to annul permits.

11. Recent Developments

• 01 Sep 2026 — Taiwan unions move toward strike action. Unions in Taoyuan and Taichung, with roughly 10,000 members, said they would proceed toward a strike unless the bonus system is overhauled, demanding a one-off FY2026 bonus and, from FY2027, a scheme allocating 15% of operating profit to bonuses paid quarterly. Micron Taiwan has said this year's performance bonus will be its highest ever.
• 26 Aug 2026 — Q4 and full-year FY2026 results scheduled, and senior leadership reshuffled. Results will be released on 30 Sep 2026. On the same day Manish Bhatia was appointed President and Chief Operating Officer, Dr Scott DeBoer became President and Chief Technology and Products Officer, Sumit Sadana moved to Senior Advisor to the CEO, and Sanjay Mehrotra's title became Chairman and Chief Executive Officer.
• 09 Jul 2026 — up to $3bn of strategic investment in the US semiconductor supply chain. This included $500m of strategic financing to GlobalWafers for its 300mm wafer fab in Sherman, Texas, alongside a ten-year wafer supply agreement. Micron simultaneously raised its total US commitment to more than $250bn through 2035, targeting 40% of its DRAM manufactured in the United States by the mid-2030s.
• 24 Jun 2026 — record fiscal Q3 2026 results. Revenue of $41.46bn at an 84.6% GAAP gross margin, GAAP diluted EPS of $24.67. Micron disclosed that 14 of 16 Strategic Customer Agreements carry approximately $100bn of cumulative minimum-price revenue over their remaining terms, that HBM4 revenue had already exceeded $1bn, and that FY2027 capex would exceed the mid-$40bn range.
• 09 Jun 2026 — Dr Alexis Black Björlin appointed to the board. She is Chief Strategy Officer at General Catalyst and previously ran NVIDIA's DGX Cloud business.
• 07 Jun 2026 — NVIDIA certifies Micron for Vera Rubin HBM4. Samsung, SK hynix and Micron all passed certification, though reported volume allocation favours SK hynix and Samsung heavily.
• 03 Apr 2026 — cash tender offers settled across six senior note series. Together with prepayments of the 2028, 2029A, 2029B and 2030 notes and the 2029 Term Loan A, these reduced non-current long-term debt from $14,017m to $5,140m over nine months.
• 18 Mar 2026 — quarterly dividend raised 30% to $0.15 per share. First paid on 15 Apr 2026. Management has indicated an intention to increase capital return further from 9 Dec 2026, when CHIPS Act buyback restrictions ease.

12. Key Dates

• 16 Sep 2026 — US Federal Open Market Committee interest-rate decision, flagged in market commentary as a nearer-term driver for the memory complex than the earnings print itself. Track it on the ChartsView Economic Calendar.
• 30 Sep 2026 — fiscal Q4 and full-year 2026 results and conference call, 2:30pm Mountain time, confirmed by Micron on 26 Aug 2026. This is the first report of the completed FY2026 year.
• Expected Oct 2026 — next quarterly dividend declaration, record date and payment date. The $0.15 per share dividend declared on 24 Jun 2026 had a record date of 6 Jul 2026 and was paid on 21 Jul 2026; the next declaration is expected alongside the 30 Sep 2026 results and has not been announced.
• 09 Dec 2026 — second anniversary of the CHIPS Act definitive agreements, the date from which management has said it intends to step up capital return.
• Expected Dec 2026 — fiscal Q1 2027 results, based on the prior-year pattern of a late-December report.
• Expected 2027 — first DRAM wafer output from the Idaho ID1 fab, projected for mid-calendar 2027, and volume production of HBM4E on the 1-gamma node.

No investor day has been announced for 2026. A strike vote by Micron's Taiwanese unions was described as possible during September 2026 but no date has been published.

Discuss this company with other ChartsView members in the Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 25 September 2026

Adobe keeps reporting double-digit revenue growth, but the stock trades on a single-digit multiple of forward non-GAAP earnings. On 10 September 2026 it reported record third-quarter revenue of $6,760m, up 13%, and raised its full-year targets for the third time. The same results showed net new annualised recurring revenue down roughly a third on a year earlier and remaining performance obligations growing only 8%. A week earlier the company had named Anil Chakravarthy to succeed Shantanu Narayen as Chief Executive from 1 December 2026, and the head of its creative business announced his departure. This report sets out what Adobe's SEC filings and press releases show: revenue, earnings, cash flow, debt, insider dealing and scheduled events. Every valuation figure is shown as a calculation.

1. Company Snapshot

Field	Value
Company	Adobe Inc., headquartered in San Jose, California
Ticker / exchange	ADBE, Nasdaq Global Select Market
CEO / Leadership	Shantanu Narayen (Chair and CEO until 30 November 2026, then Executive Chair); Anil Chakravarthy (President and CEO from 1 December 2026); Steve Day (interim CFO since 15 June 2026)
Employees	31,360 at 28 November 2025 (FY2025 Form 10-K), split evenly between the US and the rest of the world
Revenue (FY2025)	$23,769m, up 10.5% year on year (fiscal year ended 28 November 2025)
Net income (FY2025, GAAP)	$7,130m; GAAP diluted EPS $16.70; non-GAAP diluted EPS $20.94
Revenue (trailing twelve months to 28 August 2026)	$25,970m
Market cap	~$93.0bn (389.2m shares outstanding at 18 September 2026 per the Q3 FY2026 Form 10-Q cover, at the $238.93 close of 24 September 2026)
Total Adobe ARR	$27.50bn at the end of Q3 FY2026, up 11.2%, including roughly $480m acquired with Semrush
Dividend	None. Adobe returns cash through share repurchases; a new $25bn authorisation was approved on 21 April 2026
Most recent reported period	Q3 FY2026 (quarter ended 28 August 2026), reported 10 September 2026

Live price action for ADBE and the wider software sector can be followed on the ChartsView Live Charts page.

2. Bull Case and Bear Case

Bull Case

• Revenue growth has not broken: revenue has grown by at least 10% in every year since FY2021, reaching $23,769m in FY2025. Q3 FY2026 grew 13% to $6,760m, and management raised the FY2026 revenue target to $26.576bn to $26.626bn, up from an initial $25.90bn to $26.10bn.
• Cash conversion is exceptional: trailing operating cash flow was $10,806m against capital expenditure of only $214m. Adobe repurchased 26.1m shares in the first three quarters of FY2026 and still has about $24.55bn of authorisation left.
• AI revenue is now measurable: AI-first ARR exceeded $650m at the end of Q3 FY2026, up more than 150% year on year. Firefly ending ARR rose 40% quarter on quarter, and Acrobat AI Assistant monthly active users doubled over the quarter.
• Distribution at consumer scale: Adobe reports more than one billion monthly active users, over 900m across Acrobat and Express. Its creative and document tools are now available inside ChatGPT, Claude, Copilot, Gemini and Slack, so it sits within rival AI platforms rather than outside them.
• Enterprise marketing stack is growing faster than the group: ending ARR for GenStudio, Adobe Experience Platform and Adobe Experience Manager each grew more than 20% in Q3 FY2026. Semrush, closed on 28 April 2026, adds search and AI-visibility data to that stack.

Bear Case

• Forward indicators are slowing: net new ARR in Q3 FY2026 fell roughly 36% year on year, which management attributes to the shift towards freemium. Remaining performance obligations of $22.16bn grew only 8% and declined sequentially, and ending ARR growth for FY2026 is targeted at 10.2%.
• Leadership is changing at the top and below it: the CEO transition takes effect on 1 December 2026. David Wadhwani, who ran the creativity and productivity business, is leaving, and the company has had an interim CFO since Dan Durn departed on 15 June 2026.
• Generative AI lowers the barrier to entry: the FY2025 Form 10-K names failure to keep pace with AI, and competition from generative and agentic AI entrants, as its first two risk factors. Canva and Figma target the same designers, and Adobe itself now hosts third-party image and video models from OpenAI, Google, Runway and others inside Firefly.
• The departing CEO is a consistent seller: Shantanu Narayen's family trust sold 75,000 shares in April 2026 and 125,000 in September 2026, about $49.6m in total. By contrast, a director bought $1.95m of stock in June.
• Consumer-protection and impairment charges: Adobe agreed a $150m settlement of the US government's subscription-cancellation case in March 2026. It booked $92m of legal-matter charges in the first half of FY2026 and a $70m goodwill impairment on its Publishing and Advertising unit in Q2.

3. Business Segments

Adobe reported three segments through FY2025. The FY2025 split is below. From Q1 FY2026 the company became a single reportable segment and now presents subscription revenue by customer group instead. In FY2025, Business Professionals and Consumers subscription revenue was $6.50bn (+15%) and Creative and Marketing Professionals $16.30bn (+11%). In Q3 FY2026 the figures were $1.905bn (+16%) and $4.651bn (+13%).

Segment	% of revenue	What it is
Digital Media	74.3% ($17.65bn, +11%)	Creative Cloud (Photoshop, Illustrator, Premiere, Firefly), Document Cloud (Acrobat, Acrobat AI Assistant) and Adobe Express. Digital Media ARR was $19.20bn at FY2025 year end
Digital Experience	24.7% ($5.86bn, +9%)	Enterprise marketing software: Adobe Experience Platform, Experience Manager, Journey Optimizer, Analytics, Commerce and GenStudio. Subscription revenue was $5.41bn
Publishing and Advertising	~1.1% (~$0.26bn, derived as the residual)	Legacy products including e-learning, technical publishing, print and advertising technology. It took a $70m goodwill impairment in Q2 FY2026

4. Business Model and Moat

How it makes money. Almost all of Adobe's revenue is recurring subscriptions. Individuals and businesses pay monthly or annually for Creative Cloud, Acrobat and Express, and enterprises sign multi-year contracts for the Experience Cloud marketing platform. Adobe tracks the business through annualised recurring revenue, which reached $27.50bn at the end of Q3 FY2026. Because the software is delivered from the cloud, capital spending is tiny: $179m in FY2025 against $10,031m of operating cash flow.

Where the durable advantage sits. Adobe's file formats (PDF, PSD, AI) are industry standards, and creative professionals are trained and hired on its tools. Agencies and enterprises build their workflows around Creative Cloud and Experience Manager, which makes switching costly. Its Firefly models are trained on licensed content, which lets enterprise customers use generated assets commercially with indemnification. With more than one billion monthly active users, Adobe has a large funnel into which it can place AI features.

Where the model is fragile. Generative AI lets people with no Adobe training produce images, video and documents, which weakens the skills barrier that protected the professional franchise. Adobe has responded by offering free tiers and paying for third-party models inside its own products. That can widen the funnel but also dilutes growth in new recurring revenue, as Q3 FY2026 net new ARR shows. It also makes Adobe partly dependent on the model providers it competes with.

5. Financial Health

All figures come from Adobe's quarterly earnings releases and Form 10-K and 10-Q filings, cross-checked against its SEC XBRL data. Fiscal years end on the Friday closest to 30 November, and FY2021 contained 53 weeks. Adobe pays no dividend, so that column reads nil throughout.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	15,785	+22.7%	$10.02	$12.48	Nil	$4,123m
FY2022	17,606	+11.5%	$10.10	$13.71	Nil	$3,629m
FY2023	19,409	+10.2%	$11.82	$16.07	Nil	$3,634m
FY2024	21,505	+10.8%	$12.36	$18.42	Nil	$4,129m
FY2025	23,769	+10.5%	$16.70	$20.94	Nil	$6,210m

† Long-term debt is the non-current portion of debt at fiscal year end. The current portion was a further $500m at FY2022, $1,499m at FY2024 and nil at FY2025. At 28 August 2026 total debt was $6,363m, of which $1,597m was current and $4,766m non-current. ‡ Adjusted EPS is Adobe's own non-GAAP diluted EPS. It excludes stock-based compensation, amortisation of intangibles and certain other items. FY2024 GAAP EPS includes the $1bn Figma merger termination fee.

Cash generation and balance sheet: FY2025 operating cash flow was $10,031m, capital expenditure $179m and depreciation and amortisation $818m. GAAP operating income was $8,706m and non-GAAP operating income $10,986m. For the twelve months to 28 August 2026, operating cash flow was $10,806m, capital expenditure $214m and depreciation and amortisation $766m. At 28 August 2026 cash and equivalents were $4,359m and short-term investments $1,280m, a total of $5,639m against $6,363m of debt. Net debt was therefore about $0.72bn, and stockholders' equity was $11,764m.

Quarter / Half	Revenue ($m)	Adjusted EPS	GAAP EPS
Q3 FY2026	6,760	$6.13	$4.62
Q2 FY2026	6,618	$5.96	$4.25
Q1 FY2026	6,398	$6.06	$4.60
Q4 FY2025	6,194	$5.50	$4.45
Q3 FY2025	5,988	$5.31	$4.18
Q2 FY2025	5,873	$5.06	$3.94
Q1 FY2025	5,714	$5.08	$4.14
FY2025 total	23,769	$20.94	$16.70

Q3 FY2026 revenue rose 12.9% year on year, and GAAP operating income was $2,354m against $2,173m a year earlier. Management guided Q4 FY2026 revenue to $6.80bn to $6.85bn, GAAP EPS to $4.65 to $4.70 and non-GAAP EPS to $6.30 to $6.35. The full-year targets are GAAP EPS of $18.12 to $18.17 and non-GAAP EPS of $24.45 to $24.50.

6. Valuation Metrics

Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$93.0bn (389.2m shares at the $238.93 close of 24 September 2026)
Trailing P/E (GAAP)	~13.3x (price $238.93 / trailing twelve-month GAAP diluted EPS $17.92, the sum of Q4 FY2025 to Q3 FY2026). On Adobe's non-GAAP EPS of $23.65 over the same four quarters the multiple is ~10.1x
P/E (forward)	~9.8x (price $238.93 / $24.475, the midpoint of management's FY2026 non-GAAP EPS target). On the GAAP EPS target midpoint of $18.145 the multiple is ~13.2x
P/S (TTM)	~3.6x (market cap $93.0bn / trailing revenue $25.97bn)
Enterprise value	~$93.7bn (market cap $93.0bn + total debt $6.36bn − cash and short-term investments $5.64bn, per the 28 August 2026 balance sheet)
EV/EBITDA (TTM)	~9.3x (EV $93.7bn / EBITDA $10.04bn; EBITDA = trailing GAAP operating income $9.27bn + depreciation and amortisation $0.77bn from the cash flow statement)
P/FCF	~8.8x (market cap $93.0bn / free cash flow $10.59bn; FCF = trailing operating cash flow $10.81bn − capital expenditure $0.21bn)
52-week high	$363.70 (28 October 2025)
52-week low	$190.12 (18 June 2026)
Short interest (% of float)	~4.8% of float, being 18.5m shares short against a float of about 388m at the 15 September 2026 settlement date (17.37m shares, 4.4% to 4.9% depending on the float definition used, at 31 August 2026)
Days to cover	~3.6 days at the 15 September 2026 settlement date (4.2 days at 31 August 2026)
Price/book	~7.9x (market cap $93.0bn / stockholders' equity $11.76bn at 28 August 2026)

The gap between GAAP and non-GAAP earnings comes mostly from stock-based compensation and acquisition amortisation. On either basis, the trailing multiples here are lower than the double-digit revenue growth in Section 5 would usually suggest. That gap between growth and valuation is what the bull and bear cases disagree about.

7. What Are They Building

Firefly and the creative agent. Firefly added native audio, music and speech generation in Q3 FY2026. Firefly Enterprise launched in July 2026 in Foundry, Graph and Creative Production editions, and Disney Imagineering said on 16 June 2026 that it is adopting Firefly Foundry. On 18 June 2026 Adobe extended its creative agent into Photoshop and Premiere and made it available inside ChatGPT, Claude, Copilot, Gemini and Slack. Firefly also hosts partner models from OpenAI, Google, Runway, FLUX, Luma, Ideogram, Pika, ElevenLabs, Moonvalley and Topaz.

Acrobat as a productivity agent. The Acrobat Productivity Agent launched on 6 May 2026 and was expanded on 9 September 2026 to turn complex documents into interactive reports, slides, podcasts and knowledge bases. Acrobat capabilities are also offered in ChatGPT, Chrome, Claude, Edge and WhatsApp. Acrobat and Express together have more than 900m monthly active users.

Enterprise agentic AI. CX Enterprise and CX Enterprise Coworker were unveiled at Adobe Summit on 20 April 2026 and became generally available on 10 June 2026, with about 1,700 customers and early adopters. GenStudio for Commerce Media Networks followed on 17 June. Adobe Brand Visibility combines Adobe's LLM Optimizer with Semrush's AI-visibility data, built on a database of about 300m AI search prompts. Paid customers for the product doubled over the quarter.

Acquisitions. Semrush closed on 28 April 2026 for a total purchase price of $1,874m, adding about $480m of ARR. Topaz Labs, an AI image and video enhancement company, closed on 23 September 2026 for about $340m and will remain a standalone brand. The next set of product announcements is expected at Adobe MAX, which runs from 10 to 12 November 2026 in Miami Beach.

8. Competitive Landscape

Market capitalisations were re-checked live on 24 September 2026. Revenue figures come from each company's most recent full-year results release; fiscal years differ, so each is labelled.

Peer	Market cap (September 2026)	Key 2025 metric
Microsoft (MSFT)	~$3,697bn	FY2026 (to June 2026) revenue $331.8bn, up 18%; Copilot competes for document-productivity and image-generation users
Salesforce (CRM)	~$196.1bn	FY2026 (to January 2026) revenue $41.5bn, up 10%; the main rival to Adobe's Experience Cloud in marketing software
Intuit (INTU)	~$74.1bn	FY2026 (to July 2026) revenue $21.4bn, up 14%; competes for small-business marketing and productivity spend
Autodesk (ADSK)	~$44.2bn	FY2026 (to January 2026) revenue $7.21bn, up 18%; design software for engineering, construction and media
Figma (FIG)	~$11.4bn	FY2025 revenue $1.056bn, up 41%; collaborative interface design, and the subject of Adobe's terminated acquisition that cost it a $1bn fee in FY2024
Canva (private)	~$42bn (August 2025 secondary-sale valuation; not listed)	Roughly $4bn of annualised revenue, reported as growing about 35%

Adobe's revenue is larger than that of Autodesk, Figma and Canva combined, and comparable to Intuit's, yet its market value is only about a quarter higher than Intuit's. The competitive pressure is split in two. In creative tools, Canva and Figma attack from the low end and the collaborative end. In enterprise marketing, Salesforce and Microsoft compete for the same customer-data and campaign budgets as the Experience Cloud.

9. Insider Activity

Chair and CEO Shantanu Narayen accounts for most of the value sold in 2026, through the Narayen Family Trust. His Form 4 footnotes describe the sales as for tax and estate planning, and they do not state that the sales were made under a Rule 10b5-1 plan. Director David Ricks made the only open-market purchase of the year. The table is compiled from SEC Form 4 filings.

Name	Date	Type	Shares	Price	Value	Plan Type
Shantanu Narayen (Chair and CEO)	16 Sep 2026	Sale (16 to 17 September, via family trust)	125,000	$250.76 average	~$31.3m	10b5-1 not stated; tax and estate planning
Jillian Forusz (SVP, Chief Accounting Officer)	29 Jul 2026	Sale	416	$264.33	~$0.11m	Not verified
David Ricks (Director)	25 Jun 2026	Open-market purchase	10,000	$194.51	~$1.95m	Discretionary
Jillian Forusz (SVP, Chief Accounting Officer)	30 Apr 2026	Sale	755	$246.25	~$0.19m	Not verified
Shantanu Narayen (Chair and CEO)	28 Apr 2026	Sale (via family trust)	75,000	$243.54	~$18.3m	10b5-1 not stated; tax and estate planning
Dan Durn (then EVP and CFO)	20 Apr 2026	Sale	1,336	$248.02	~$0.33m	Not verified
Dan Durn (then EVP and CFO)	27 Jan 2026	Option exercise and sale	1,646	$294.85	~$0.49m	Not verified

Narayen's 2026 sales total about $49.6m. They came in the months before he hands over the CEO role on 1 December 2026, when he becomes Executive Chair. Ricks bought within a week of the 52-week low of $190.12 set on 18 June 2026. That is the only insider buying on record this year.

10. Key Risks

• AI disruption of the core franchise: the FY2025 Form 10-K lists failure to innovate or keep pace with AI as its first risk factor. If generative and agentic tools make professional-grade output available without professional software, the value of Creative Cloud seats could fall faster than new AI revenue grows.
• Decelerating forward indicators: net new ARR fell about 36% year on year in Q3 FY2026, and remaining performance obligations grew just 8% and declined sequentially. Revenue growth usually lags these measures, so the effect on reported revenue may come later.
• Leadership transition: a new CEO takes over on 1 December 2026, the head of the largest business unit is leaving and the CFO role is filled on an interim basis. Strategy, capital allocation and guidance practice could all change under new management.
• Consumer-protection enforcement: the $150m settlement with the US government over subscription cancellation includes injunctions on disclosure and easy cancellation. These could raise churn in the consumer and prosumer base. Court entry of the stipulated order has not been confirmed in the filings reviewed.
• AI regulation, intellectual property and model dependence: the EU AI Act and training-data liability for third-party models hosted inside Adobe products are named risks. Adobe also relies increasingly on outside model providers and cloud compute, whose costs and access terms it does not control.
• Acquisition integration: Semrush ($1,874m) and Topaz Labs (~$340m) were bought in 2026. Goodwill of $1,251m was recognised on Semrush alone, and Adobe has already impaired $70m of goodwill in its Publishing and Advertising unit this year.
• Currency and macro exposure: about half of Adobe's employees and a large share of revenue are outside the US. Q3 FY2026 revenue growth was 13% reported against 12% in constant currency, so currency moves visibly affect reported results.

11. Recent Developments

• 23 Sep 2026 — Topaz Labs acquisition completed. Adobe closed the purchase of the AI image and video enhancement company for about $340m, mostly in cash, having announced the deal on 25 June 2026. Topaz remains a standalone brand and its models are already available in Firefly.
• 22 Sep 2026 — Jet2 agentic AI partnership announced. Adobe announced an agentic AI partnership with the airline and holiday company, adding to the enterprise customer list for its CX Enterprise tools.
• 16 Sep 2026 — CEO sold 125,000 shares. The Narayen Family Trust sold shares on 16 and 17 September at a weighted average of $250.76, about $31.3m in total, and the Form 4 footnote cites tax and estate planning.
• 10 Sep 2026 — Q3 FY2026 results: record revenue and raised targets, but slower forward indicators. Revenue was $6,760m (+13%) and non-GAAP EPS $6.13, with record Q3 operating cash flow of $2,523m and 9.5m shares repurchased for $2,232m. FY2026 targets were raised. Net new ARR fell about 36% year on year and remaining performance obligations grew 8%.
• 09 Sep 2026 — Acrobat Productivity Agent expanded. The agent can now turn complex documents into interactive reports, slide decks, podcasts and knowledge bases.
• 03 Sep 2026 — Anil Chakravarthy named next CEO. The President of Customer Experience Orchestration and former Informatica CEO will become President and CEO on 1 December 2026, and Shantanu Narayen becomes Executive Chair. David Wadhwani's departure was announced the same day, and the shares fell.
• 31 Aug 2026 — Partnership with Saudi Arabia expanded. An agreement with the Ministry of Communications and Information Technology and HUMAIN gives up to 27m residents free access to Firefly and Express. Adobe values the access at more than $4bn.
• 25 Jun 2026 — Director bought $1.95m of stock. David Ricks bought 10,000 shares at $194.51, a week after the 52-week low.

12. Key Dates to Watch

• 10 Nov 2026 — Adobe MAX 2026 opens at the Miami Beach Convention Center and runs to 12 November, with pre-conference sessions on 8 and 9 November.
• 27 Nov 2026 — FY2026 fiscal year end.
• 01 Dec 2026 — Anil Chakravarthy becomes President and CEO; Shantanu Narayen becomes Executive Chair.
• 09 Dec 2026 — Q4 and FY2026 earnings release and conference call, 2:00pm Pacific time. Management has guided Q4 revenue to $6.80bn to $6.85bn. FY2027 targets would normally be given at the same time.
• TBC — court entry of the stipulated order settling the US government's subscription-cancellation case, filed on 13 March 2026.
• TBD — 2027 annual meeting of stockholders. The 2026 meeting was held virtually on 15 April 2026.

Adobe pays no dividend, so there are no ex-dividend or payment dates to track. Macro releases that move large-cap software are listed on the ChartsView Economic Calendar. Reader discussion of these dates continues in the Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 7 September 2026

Taiwan Semiconductor Manufacturing Company makes the chips that almost every AI ambition depends on, and in 2026 it has stopped pretending otherwise. Second-quarter revenue reached a record NT$1,270.38bn, gross margin hit 67.7%, and net income rose 77% year on year — the fifth consecutive record quarter. Management has raised full-year revenue growth guidance to more than 40% in US-dollar terms and lifted 2026 capital expenditure to a range of US$60bn to US$64bn, then committed a further US$100bn to Arizona on top of what was already the largest foreign direct investment in American manufacturing history. This report works through the reported figures — in New Taiwan dollars, as TSMC reports them, with the US-dollar equivalents the company itself publishes — and shows every valuation input as a calculation.

1. Company Snapshot

Field	Value
Company	Taiwan Semiconductor Manufacturing Company Limited
Ticker / exchange	TSM American Depositary Shares on the New York Stock Exchange; ordinary shares trade in Taipei as TWSE 2330. One ADR represents five ordinary shares
CEO / Leadership	Dr. C.C. Wei, Chairman and Chief Executive Officer (Chairman since June 2024, CEO since June 2018); Wendell Huang, Chief Financial Officer
Employees	90,557 worldwide at the end of 2025, up 8.0% from 83,825 a year earlier (2025 Form 20-F and annual report)
Revenue (FY2025)	NT$3,809.05bn, equivalent to US$122.42bn, up 31.6% year on year
Net income (FY2025)	NT$1,717.88bn attributable to shareholders of the parent; diluted EPS NT$66.25 per ordinary share
Revenue (trailing twelve months to 30 June 2026)	NT$4,440.49bn
Market cap	US$2,224.5bn (4 September 2026 ADR close of $428.91 across 5,186,474,013 ADRs, representing 25,932,370,067 ordinary shares)
Foundry market share (FY2025)	Approximately 69.9% of the pure-play foundry market
Dividend	Quarterly. NT$22.00 per ordinary share declared in respect of FY2025, rising to NT$7.00 a quarter for the 2026 declarations
Most recent reported period	Q2 2026, reported 16 July 2026. Q3 2026 has not yet been reported

Live price action for TSM and the wider semiconductor complex can be followed on the ChartsView Live Charts page.

2. Bull Case and Bear Case

Bull Case

• Pricing power is now visible in the margin line: gross margin expanded from 58.8% in Q1 2025 to 67.7% in Q2 2026 and operating margin from 48.5% to 60.3% over the same six quarters. TSMC is reportedly raising sub-5nm wafer prices 3% to 5% for 2026, a fourth consecutive annual increase, and customers are paying it.
• Near-monopoly at the leading edge: TSMC held roughly 69.9% of the pure-play foundry market in FY2025 against Samsung Foundry's 7.2%, and Intel Foundry lost US$10.32bn at operating level on US$17.83bn of FY2025 revenue. There is currently no second source for volume 2nm production.
• The 2nm ramp is ahead of schedule and already material: N2 reached 3% of wafer revenue in Q2 2026 having only entered volume production in late 2025, with monthly capacity targeted at 120,000 to 130,000 wafers by the end of 2026. Apple has reportedly booked more than half the initial allocation.
• Overseas fabs are turning profitable faster than expected: the Arizona operation generated roughly NT$36.1bn of cumulative profit in the first half of 2026 alone, against NT$16.1bn for the whole of 2025, and the Kumamoto joint venture swung to profit in Q1 2026. The margin-dilution drag investors feared is shrinking.
• Cash generation funds the capex bill internally: trailing operating cash flow of NT$2,634.68bn covered trailing capital expenditure of NT$1,510.01bn with NT$1,124.67bn of free cash flow left over, while cash and short-term investments stood at NT$3,597.44bn against total debt of NT$1,064.95bn at 30 June 2026.

Bear Case

• Geographic concentration is unhedgeable: the overwhelming majority of leading-edge capacity remains on one island in a contested strait. No amount of Arizona, Kumamoto or Dresden capacity changes that within this decade, and the risk is binary rather than gradual.
• Capital intensity is climbing faster than revenue: capex guidance rose from a prior US$52bn to US$56bn range to US$60bn to US$64bn for 2026, with the CFO indicating the next three years will be significantly heavier than the last three. If AI demand normalises, the depreciation from this build-out arrives regardless.
• Customer concentration on a handful of AI buyers: high-performance computing rose to 66% of Q2 2026 revenue from 58% for FY2025, and North America accounted for roughly 75% of FY2025 revenue. The revenue base has become more dependent on fewer end-customers than at any point in TSMC's history.
• Trade policy is an unpriced variable: a 25% Section 232 tariff on a narrow set of advanced logic semiconductors took effect on 15 January 2026, and China AI-chip exports now require case-by-case licensing tied to a US government revenue share. Both act on TSMC's customers, and therefore on TSMC.
• Currency and the ADR premium both work against a US buyer: TSMC reports in New Taiwan dollars and has repeatedly flagged unfavourable exchange rates in its gross-margin bridges, while the ADR closed 4 September 2026 at a premium of roughly 12% to the Taipei-listed ordinary shares translated at spot. A US investor is paying twice for the same earnings stream.

3. Business Segments

TSMC operates as a single reportable segment — foundry — but discloses revenue by end-market platform and by process node. The FY2025 platform split is shown below, with the Q2 2026 comparison in the third column to make the AI shift visible.

Segment / platform	% of revenue	What it is
High performance computing	58% in FY2025, rising to 66% in Q2 2026	AI accelerators, data centre CPUs and GPUs, networking silicon — the Nvidia, AMD and hyperscaler custom-silicon business
Smartphone	29% in FY2025, falling to 22% in Q2 2026	Application processors and modems, dominated by Apple A-series and M-series silicon on leading-edge nodes
Internet of Things	5% in FY2025 and 5% in Q2 2026	Connected devices, wearables and edge processors, typically on mature and specialty nodes
Automotive	5% in FY2025, 4% in Q2 2026	Advanced driver assistance, infotainment and vehicle microcontrollers
Digital consumer electronics and others	3% in FY2025 and 3% in Q2 2026	Set-top boxes, televisions, games consoles and residual categories

By process node, FY2025 wafer revenue was 24% from 3nm, 36% from 5nm and 14% from 7nm, with advanced technologies of 7nm and below reaching 74% of wafer revenue against 69% in FY2024. In Q2 2026 the mix had moved again: 2nm 3%, 3nm 30%, 5nm 33% and 7nm 11%.

4. Business Model and Moat

How it makes money. TSMC does not design chips and does not sell them to end-users. It sells manufacturing capacity, priced per wafer, to companies that design silicon but own no fabs — Apple, Nvidia, AMD, Qualcomm, Broadcom and, increasingly, Intel. Because it competes with none of its customers, it can host all of them, and it captures value from whichever design wins. Revenue is therefore a function of two things: how many wafers it can make, and what price the leading edge commands.

Where the durable advantage sits. The moat is compounding capital plus accumulated process knowledge. A leading-edge fab now costs tens of billions of dollars and takes years to bring to yield; the learning curve on each new node is the product of running the previous one at enormous volume. Advanced packaging reinforces this: CoWoS capacity is scaling toward 120,000 to 140,000 wafers a month by the end of 2026 from roughly 35,000 in late 2024, and lines are fully booked. An AI accelerator is not just a die — it is a die plus the packaging that only TSMC can currently supply at scale.

What the capital is buying. The US$60bn to US$64bn of 2026 capex is being spent to hold that lead through 2nm and A16, and to place capacity outside Taiwan for political rather than economic reasons. The Arizona commitment now stands at roughly US$265bn across around twelve facilities after the additional US$100bn announced on 16 July 2026.

Where the model is exposed. Fabs are fixed cost. A demand pause does not reduce depreciation, and TSMC has never faced a build-out of this magnitude concentrated on a single end-market. The company also sits inside a geopolitical fault line that no operational decision can fully mitigate.

5. Financial Health

TSMC reports in New Taiwan dollars under IFRS. Figures below are taken from TSMC's own quarterly earnings releases and management reports; fiscal years end 31 December. TSMC does not publish a non-GAAP or adjusted earnings measure, so the adjusted column repeats the reported diluted figure.

Fiscal Year	Revenue (NT$bn)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	1,587.42	+18.5%	NT$23.01	NT$23.01†	NT$11.00	NT$613.4bn
FY2022	2,263.89	+42.6%	NT$39.20	NT$39.20†	NT$11.00	NT$839.1bn
FY2023	2,161.74	-4.5%	NT$32.34	NT$32.34†	NT$13.00	NT$918.3bn
FY2024	2,894.31	+33.9%	NT$45.25	NT$45.25†	NT$17.00	NT$958.4bn
FY2025	3,809.05	+31.6%	NT$66.25	NT$66.25†	NT$22.00	NT$896.1bn

† TSMC publishes no adjusted or non-GAAP earnings measure, so the reported diluted figure is repeated. All per-share figures are per ordinary share; one ADR represents five ordinary shares, so the FY2025 figure is NT$331.25 per ADR. ‡ Long-term debt is the non-current portion of interest-bearing debt, being bonds payable plus long-term bank borrowings excluding lease liabilities and the current portion. Adding the current portion gives total interest-bearing debt of NT$1,032.99bn at 31 December 2025 and NT$1,018.29bn at 31 December 2024.

Cash generation over the twelve months to 30 June 2026: operating cash flow NT$2,634.68bn, capital expenditure NT$1,510.01bn, free cash flow NT$1,124.67bn, depreciation and amortisation NT$688.89bn. Cash and short-term investments stood at NT$3,597.44bn at 30 June 2026 against total debt of NT$1,064.95bn including lease liabilities, so TSMC is comfortably net cash. Shareholders' equity was NT$6,432.52bn.

Quarter / Half	Revenue (NT$bn)	Adjusted EPS	GAAP EPS
Q2 2026	1,270.38	NT$27.25†	NT$27.25
Q1 2026	1,134.10	NT$22.08†	NT$22.08
Q4 2025	1,046.09	NT$19.50†	NT$19.50
Q3 2025	989.92	NT$17.44†	NT$17.44
Q2 2025	933.79	NT$15.36†	NT$15.36
Q1 2025	839.25	NT$13.94†	NT$13.94
FY2025 total	3,809.05	NT$66.25	NT$66.25

In US-dollar terms, which is how TSMC reports alongside the New Taiwan dollar figures, the same six quarters ran US$25.53bn, US$30.07bn, US$33.10bn, US$33.73bn, US$35.90bn and US$40.20bn, with earnings per ADR of US$2.12, US$2.47, US$2.92, US$3.14, US$3.49 and US$4.31. Monthly revenue disclosure through 2026 shows the acceleration continuing: January NT$401.26bn (+36.8%), February NT$317.66bn (+22.2%), March NT$415.19bn (+45.2%), April NT$410.73bn (+17.5%), May NT$416.98bn (+30.1%), June NT$442.68bn (+67.9%) and July NT$467.58bn (+44.7%), for a cumulative January-to-July figure of NT$2,872.06bn, up 37.0% on the same period of 2025.

6. Valuation Metrics

Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.

New Taiwan dollar figures are converted at NT$31.595 to the US dollar, the spot rate on 7 September 2026, so that every multiple is expressed against the ADR price.

Metric	Value
Market cap	US$2,224.5bn (5,186,474,013 ADRs at the $428.91 close of 4 September 2026). The Taipei-listed ordinary shares closed at NT$2,410, which translates to roughly US$2,014bn, so the ADR carries a premium of about 12%
Trailing P/E (GAAP)	~31.4x (ADR price $428.91 / trailing twelve-month EPS of US$13.65 per ADR, being NT$86.27 per ordinary share summed across Q3 2025 to Q2 2026, multiplied by five and converted at NT$31.595). On the sum of TSMC's own reported US-dollar EPS per ADR of $13.86 the multiple is ~30.9x. TSMC publishes no adjusted earnings measure
P/E (forward)	~19.6x (ADR price $428.91 / forward EPS estimate of $21.86 per ADR)
P/S (TTM)	~15.8x (market cap US$2,224.5bn / trailing revenue NT$4,440.49bn, being US$140.6bn at NT$31.595)
Enterprise value	~US$2,144.4bn (market cap US$2,224.5bn + total debt NT$1,064.95bn or US$33.7bn − cash and short-term investments NT$3,597.44bn or US$113.9bn, per the 30 June 2026 balance sheet). TSMC is net cash, so enterprise value sits below market capitalisation
EV/EBITDA (TTM)	~21.3x (EV US$2,144.4bn / EBITDA US$100.6bn; EBITDA = trailing operating income NT$2,491.08bn + depreciation and amortisation NT$688.89bn taken from the cash flow statement, giving NT$3,179.97bn)
P/FCF	~62.5x (market cap US$2,224.5bn / free cash flow US$35.6bn; FCF = trailing operating cash flow NT$2,634.68bn − capital expenditure NT$1,510.01bn, giving NT$1,124.67bn). The multiple is elevated because 2026 capex is running at a record NT$1.5tn annualised
52-week high	$479.00 intraday on the ADR
52-week low	$241.62 intraday on the ADR
Short interest (% of float)	Approximately 0.6%, being 30,161,233 ADRs short at the 14 August 2026 settlement date against 5,186,474,013 ADRs outstanding. Note that the commonly quoted float figure for TSM conflates ordinary shares with ADRs, so the ratio here is stated against ADRs outstanding
Days to cover	2.18 days at the 14 August 2026 settlement date
Dividend yield	~1.0% (NT$28.00 a year per ordinary share at the current NT$7.00 quarterly rate, being NT$140.00 or about US$4.43 per ADR against the $428.91 price)

The striking feature of this table is how ordinary the multiples look for a company growing revenue above 30% with a 60% operating margin. The forward multiple of under 20 times reflects the fact that consensus expects the earnings acceleration to continue; the trailing free cash flow multiple of 62 times reflects the fact that TSMC is spending almost everything it earns on capacity.

7. What Are They Building

N2 and the 2nm ramp. Volume production began in late 2025 at Fab 20 in Hsinchu and Fab 22 in Kaohsiung. N2 reached 3% of wafer revenue in Q2 2026, and monthly capacity is targeted at 120,000 to 130,000 wafers by the end of 2026. Reported wafer pricing of roughly US$30,000 for 2nm compares with about US$20,000 for 3nm and US$18,000 for 5nm.

A16 and beyond. TSMC originally targeted volume production of A16, which adds backside power delivery, for late 2026. An April 2026 roadmap update reported by TrendForce indicated a shift to 2027, with A12 and A13 nodes slotted for 2029. The timing remains genuinely disputed in the trade press and TSMC has not resolved it in a filing.

Arizona. On 16 July 2026, alongside Q2 results, TSMC announced an additional US$100bn of Arizona investment, taking the total commitment to roughly US$265bn across around twelve facilities and at least four more 2nm fabs. Fab 2, on 3nm, has completed construction with volume production expected in 2027; Fab 3 is targeted for 2030. The Arizona operation produced roughly NT$36.1bn of cumulative profit in the first half of 2026 against NT$16.1bn for the whole of 2025.

Japan and Germany. Construction of the second Kumamoto fab began on 28 October 2025 at a cost of about US$13.9bn, with the process upgraded from 6nm to 3nm on stronger demand and equipment installation expected around 2028. The Dresden ESMC facility, 70% owned by TSMC, has entered its main structural build with equipment move-in targeted for the second half of 2026 and production around 2027.

Advanced packaging. CoWoS monthly capacity is scaling toward 120,000 to 140,000 wafers by the end of 2026 from roughly 35,000 in late 2024, with the supply and demand gap expected to narrow from around 20% to around 10%. A next-generation CoPoS research line at VisEra is targeting pilot production in mid-2027.

8. Competitive Landscape

Market capitalisations below were re-checked live on 4 September 2026 rather than carried over. The point of the table is the asymmetry: TSMC is worth more than four times the combined value of every other foundry listed here, on a share of the pure-play market approaching seventy per cent.

Peer	Market cap (September 2026)	Key 2025 metric
Samsung Electronics (005930.KS)	US$1,310.2bn (KRW1,763.1tn at 1,345.7 won to the dollar)	FY2025 foundry market share of 7.2% on roughly US$12.63bn of foundry revenue, down 3.9% year on year, slipping further to 6.5% in Q1 2026. The group figure includes memory and handsets, not foundry alone
Intel (INTC)	US$506.4bn	FY2025 Intel Foundry revenue of US$17.83bn with an operating loss of US$10.32bn, widened from a US$2.25bn loss in 2024
SMIC (0981.HK)	HK$585.2bn, approximately US$75bn	FY2025 revenue of US$9.33bn, a record and up 16.2% year on year, for a foundry share of about 5.32%
United Microelectronics (UMC)	US$52.1bn	FY2025 revenue of NT$237.6bn, up 2.3%, with a gross margin of 29.0% and EPS of NT$3.34, for a foundry share of about 4.35%
GlobalFoundries (GFS)	US$24.8bn	FY2025 revenue of US$6.79bn, up 1% year on year, for a foundry share of about 3.9%

The competitive picture is not really about share today. It is about whether anyone can fund a credible second source at 2nm and below. Intel is ramping 18A while continuing to outsource leading-edge dies to TSMC — Intel's own chief executive described the relationship as a trusted partnership in June 2026 — and Samsung Foundry's share has fallen for consecutive periods. Reports of an Intel and TSMC joint venture have circulated but have not been confirmed by either company in a filing.

9. Insider Activity

Chairman and Chief Executive Officer Dr. C.C. Wei leads the company, having held the chief executive role since June 2018 and added the chairmanship in June 2024 following Dr. Mark Liu's retirement. TSMC is a foreign private issuer, which normally exempts officers from US Section 16 reporting, but in practice a number of TSMC officers do file Form 4s with the SEC covering their holdings of Taiwan-listed ordinary shares. The most recent verifiable filing is below.

Name	Date	Type	Shares	Price	Value	Plan Type
Yuan Lipen (Vice President)	18 Aug 2026	Purchase of ordinary shares, including spouse and employee stock purchase trust holdings	2,350	US$73.58 to US$74.50 (NT$2,350 to NT$2,380)	~US$174,000	Routine officer filing, Form 4 filed 20 Aug 2026
Various officers	02 Sep 2026	Form 4 filings lodged with the SEC	Not individually reviewed	Not disclosed here	Not disclosed here	Routine officer filings

No Form 144 filings were located for TSMC, and Taiwan Stock Exchange director and manager shareholding disclosures are made under a separate local regime that does not map onto the US Form 4 format. Readers should treat the US filings as a partial rather than complete picture of insider activity at this company.

10. Key Risks

• Geopolitical concentration: the great majority of TSMC's advanced-node capacity sits in Taiwan. Cross-strait escalation, or any interruption to shipping and power in the region, would have consequences that no operational hedge can address. Overseas fabs are a decade-long mitigation, not a near-term one.
• Capital intensity and depreciation risk: 2026 capex guidance of US$60bn to US$64bn, with management indicating the next three years will be significantly heavier than the last three, locks in a rising depreciation charge. If AI accelerator demand normalises before that capacity is fully utilised, margins compress mechanically.
• Customer and end-market concentration: high-performance computing reached 66% of revenue in Q2 2026 and North America roughly 75% of FY2025 revenue. A capex pause at two or three hyperscalers would be felt directly and quickly.
• Tariffs and export controls: a 25% Section 232 tariff on a narrow set of advanced logic semiconductors took effect on 15 January 2026, and a parallel Bureau of Industry and Security rule moved China AI-chip exports to case-by-case licensing with a US government revenue share attached. Policy that constrains TSMC's customers constrains TSMC.
• Overseas fab margin dilution: TSMC's own 4Q25 management report cites margin dilution from overseas fabs as an offset to gross-margin gains. Arizona and Kumamoto have improved, but Dresden posted a loss in Q1 2026 and each new site starts the cycle again.
• Currency translation: TSMC reports in New Taiwan dollars while pricing largely in US dollars, and has repeatedly identified an unfavourable exchange rate as a drag in its quarterly gross-margin bridges. A stronger New Taiwan dollar compresses reported margin without any change in operations.
• Technology leakage and litigation: TSMC has sued former Senior Vice President Dr. Lo Wei-Jen in Taiwan's Intellectual Property and Commercial Court after his departure to Intel, and Taiwanese authorities have reportedly opened a National Security Act investigation. Intel has called the claims meritless. The case illustrates a structural risk as rivals recruit against TSMC's process knowledge.
• Natural hazard exposure: a magnitude 6.4 earthquake in southern Taiwan in January 2026 briefly disrupted fabs, and a magnitude 7.1 quake struck Kumamoto on 28 July 2026. TSMC reported no structural damage on either occasion, but the exposure is permanent.

11. Recent Developments

• 10 Aug 2026 — July revenue of NT$467.58bn, up 44.7% year on year. Cumulative January-to-July revenue reached NT$2,872.06bn, 37.0% ahead of the same period in 2025. August revenue is scheduled for release on 10 September 2026.
• 28 Jul 2026 — Magnitude 7.1 earthquake struck Kumamoto, Japan. TSMC reported no structural damage at the JASM facility and a phased restart, and said the Q3 revenue outlook was unaffected.
• 16 Jul 2026 — Record Q2 2026 results and an additional US$100bn Arizona commitment. Revenue of NT$1,270.38bn or US$40.20bn, up 36% year on year; net income of NT$706.56bn, up 77.4% and a fifth consecutive record; gross margin 67.7% and operating margin 60.3%. Full-year 2026 revenue growth guidance was raised to more than 40% in US-dollar terms and capex to US$60bn to US$64bn. The Arizona commitment rose to roughly US$265bn.
• 04 Jun 2026 — Annual shareholders' meeting held in Hsinchu. Shareholders approved the FY2025 results and amendments to the articles of incorporation.
• 23 Apr 2026 — Roadmap update reported A16 volume production shifting to 2027. TrendForce reported that A12 and A13 nodes are slotted for 2029, without high-NA EUV. The revised A16 timing has not been confirmed by TSMC in a filing and remains disputed.
• 16 Apr 2026 — FY2025 Form 20-F filed, disclosing 90,557 employees worldwide. Headcount rose 8.0% from 83,825 at the end of 2024.
• 15 Jan 2026 — A 25% Section 232 tariff took effect on a narrow set of advanced logic semiconductors. A parallel Bureau of Industry and Security rule introduced case-by-case licensing for China AI-chip exports tied to a US government revenue share, and a US-Taiwan trade agreement focused on reshoring chip manufacturing was announced the same day. Broad blanket semiconductor tariffs were not imposed.
• 28 Oct 2025 — Construction began on the second Kumamoto fab at a cost of about US$13.9bn. The process was upgraded from 6nm to 3nm on stronger than expected demand, with equipment installation expected around 2028.
• Jul 2025 — TSMC sued former Senior Vice President Dr. Lo Wei-Jen after his move to Intel. The action in Taiwan's Intellectual Property and Commercial Court alleges breach of non-compete and trade-secret obligations; Intel has said the claims are without merit.

12. Key Dates to Watch

• 10 Sep 2026 — August 2026 monthly revenue release, per TSMC's published financial calendar.
• 16 Sep 2026 — Ex-dividend date for the NT$7.00 per ordinary share first-quarter 2026 dividend; record date 22 September 2026.
• 08 Oct 2026 — Payment date for the NT$7.00 first-quarter 2026 dividend, and September 2026 monthly revenue release.
• Expected 15 Oct 2026 — Q3 2026 earnings conference. TSMC has not yet added the date to its own financial calendar; this is the date indicated by scheduling services and consistent with the 16 October 2025 precedent.
• 10 Nov 2026 — October 2026 monthly revenue release.
• 10 Dec 2026 — Ex-dividend date for the NT$7.00 second-quarter 2026 dividend, and December monthly revenue release for November; record date 16 December 2026.
• 07 Jan 2027 — Payment date for the NT$7.00 second-quarter 2026 dividend.
• 08 Jan 2027 — December 2026 monthly revenue release, completing the FY2026 revenue picture ahead of results.
• TBC — Resolution of the A16 volume production timing, and confirmation of whether the node lands in late 2026 or 2027.
• TBD — 2027 annual shareholders' meeting, expected around June 2027 but not yet scheduled.

Macro releases that move the semiconductor complex, including US CPI and Federal Reserve decisions, are listed on the ChartsView Economic Calendar, and reader discussion of TSMC's node roadmap continues in the Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

See also: Technical analysis on Datadog · Datadog company tracker

Last Updated: 31 August 2026

Datadog sells a consumption-priced observability and security platform that watches over cloud infrastructure, applications, logs and, increasingly, AI systems. The twelve months to 30 June 2026 were the strongest in the company's history on almost every operating measure — trailing revenue of roughly 3.97bn dollars, quarterly revenue through 1bn dollars for the first time, trailing free cash flow above 1bn dollars — and yet the shares fell about 19 per cent on the day the second-quarter numbers landed, because management disclosed that its largest customer had cut usage. This report sets out what the filings actually say: the five-year revenue and earnings record, the balance sheet, the cash flow, the valuation arithmetic, insider activity and the scheduled dates ahead. No analyst ratings, no price targets.

1. Company Snapshot

Field	Value
Company	Datadog, Inc.
Ticker / Exchange	DDOG, Nasdaq Global Select Market (Class A common stock)
Sector / Industry	Technology — application software, cloud observability and security
Headquarters	New York, New York, United States
Founded / Listed	Founded 2010 by Olivier Pomel and Alexis Lê-Quôc; IPO 19 September 2019
CEO / Leadership	Olivier Pomel (co-founder, Chief Executive Officer since inception); Alexis Lê-Quôc, co-founder and Chief Technology Officer; David Obstler, Chief Financial Officer
Employees	8,100 as at 31 December 2025 (FY2025 Form 10-K), up roughly 25 per cent year on year
Revenue (FY2025, year to 31 Dec 2025)	3,427.2m dollars, up 27.7 per cent on FY2024
Revenue (trailing twelve months to 30 Jun 2026)	3,966.7m dollars
Net income (FY2025)	107.7m dollars; GAAP diluted EPS 0.31 dollars
Share price	236.98 dollars at the close on 28 August 2026
Market capitalisation	Approximately 85.1bn dollars (28 August 2026)
Shares outstanding	Approximately 359.1m on a fully implied basis; dual-class structure, Class A one vote per share and Class B ten votes per share
Dividend	None. Datadog has never declared or paid a cash dividend
Index membership	S&P 500 (added 9 July 2025, replacing Juniper Networks)
Corporate domicile	Nevada. Shareholders approved conversion from Delaware on 21 April 2026; the conversion completed during 2026

Two housekeeping points before the numbers. First, Datadog has not carried out a stock split, and no split has been announced. Second, the company reincorporated from Delaware to Nevada during 2026 after a shareholder vote on 21 April 2026 — a governance change, not an operational one, but it drew public criticism from at least one large institutional holder. There is no pending merger, spin-off or delisting.

2. Bull Case and Bear Case

Bull Case

• Platform expansion is compounding: the share of customers using eight or more Datadog products reached roughly 20 per cent by the June 2026 quarter, against about 13 per cent a year earlier, and six-or-more adoption moved from roughly 29 per cent to 37 per cent. That is the land-and-expand engine working in the disclosure, not in the marketing.
• Growth re-accelerated rather than decayed: revenue grew 26.1 per cent in FY2024 and 27.7 per cent in FY2025, then 32 per cent in the March 2026 quarter and 36 per cent in the June 2026 quarter. Remaining performance obligations rose 43 per cent year on year to 3.47bn dollars at 30 June 2026.
• Cash generation is now substantial and real: trailing twelve-month operating cash flow was 1,229.0m dollars and free cash flow 1,072.8m dollars after 156.3m dollars of combined property and capitalised-software spend — a free cash flow margin of about 27 per cent on trailing revenue.
• Net cash balance sheet: 434.9m dollars of cash plus 4,550.5m dollars of marketable securities at 30 June 2026 against 985.5m dollars of convertible notes. The 2025 notes were retired for cash rather than converted into shares, so that tranche caused no dilution.
• AI observability is a genuine new attach surface: the June 2026 DASH conference launched more than 100 capabilities including autonomous Bits AI, AI Guard and Bring Your Own Cloud, and the Adaptive ML acquisition (announced 30 June 2026) added a research team. Datadog was named a Leader in Gartner's observability Magic Quadrant for a sixth consecutive year on 15 July 2026.

Bear Case

• Single-customer concentration is now a disclosed risk, not a theoretical one: at the 6 August 2026 results Datadog said reduced usage from its largest customer would weigh on the forward outlook. The shares fell roughly 19 per cent that day despite a headline beat and a raised full-year guide.
• Guidance implies a sharp deceleration: third-quarter 2026 revenue guidance of 1,135m to 1,145m dollars implies 28 to 29 per cent growth, against the 36 per cent just delivered. That is a seven-to-eight-point step down in a single quarter.
• GAAP economics remain thin: trailing twelve-month GAAP operating income was only 16.3m dollars on 3,966.7m dollars of revenue, and FY2025 GAAP operating income was negative 44.4m dollars. Essentially all of the reported profitability sits in the non-GAAP presentation.
• The rating leaves no margin for error: 474 times trailing GAAP earnings and about 94 times the midpoint of the company's own FY2026 non-GAAP EPS guidance. A multiple set on 30-plus per cent growth is exposed if growth settles in the twenties.
• Consumption billing means low forward visibility: revenue follows customer usage rather than fixed commitments, so a customer-side cost-optimisation cycle — exactly what appears to have happened at the largest AI-native account — can move a quarter materially with little warning.

3. Revenue Segments

Datadog reports as a single operating segment. The disaggregation the company does publish is geographic, supplemented by product-adoption cohorts.

Segment / category	% of revenue	What it is
North America	Approximately 71 per cent (FY2025)	The domestic base. Datadog disclosed international revenue at 29 per cent of the FY2025 total in its Form 10-K, implying roughly 2,434m dollars from North America on FY2025 revenue of 3,427.2m dollars.
International	29 per cent (FY2025)	Europe, Middle East, Africa and Asia Pacific combined, approximately 993m dollars in FY2025. Growing from a smaller base and a stated expansion priority.
Product families (Infrastructure Monitoring, APM, Log Management, Security, Digital Experience, AI and LLM Observability)	Not separately disclosed	Datadog does not publish revenue by product. It discloses adoption instead: roughly 85 per cent of customers use two or more products, 58 per cent four or more, 37 per cent six or more and 20 per cent eight or more as at the June 2026 quarter.

Two other disclosed operating measures matter. Customers spending 100,000 dollars or more of annual recurring revenue reached approximately 4,720 at 30 June 2026, up about 23 per cent year on year from roughly 3,850, and this cohort generates around 90 per cent of total annual recurring revenue. Trailing net revenue retention has run in the low 120s per cent through the first half of 2026. On the AI-native cohort, Datadog disclosed 31 customers spending more than 1m dollars a year and 8 spending more than 10m dollars a year at the June 2026 quarter, but it does not publish the cohort's share of total annual recurring revenue.

4. Business Model and Moat

How it makes money. Datadog charges for consumption — hosts monitored, log events ingested and indexed, spans traced, containers watched, security signals processed — typically against a committed annual minimum. Revenue therefore tracks the size and activity of a customer's estate rather than a fixed seat count. That is why a customer growing its cloud footprint raises Datadog's revenue automatically, and equally why a customer optimising its cloud spend lowers it automatically.

How it expands. Customers arrive for one or two products, usually infrastructure monitoring or application performance monitoring, and are then cross-sold across a platform that now spans more than twenty products. The company's own cohort data is the cleanest evidence that this works: eight-or-more product adoption moved from roughly 13 per cent to 20 per cent of customers in a single year. Larger accounts drive the economics, with the 100,000-dollar-plus cohort accounting for around 90 per cent of annual recurring revenue.

Where the switching costs sit. The Datadog agent is deployed across a customer's infrastructure and application stack, historical telemetry accumulates inside the platform, and development, operations and security teams standardise their workflows and dashboards on it. Ripping that out means re-instrumenting production systems and losing historical baselines — expensive and risky, which is what keeps retention in the low 120s per cent.

Where the moat is thinner. The hyperscalers bundle native observability with the cloud itself, and point specialists compete hard on individual layers. Datadog's defence is breadth — one vendor and one pane of glass across infrastructure, applications, logs, security and now AI systems — sustained by a very high product-release cadence and a large integration catalogue. Research and development spending reached 1,548.5m dollars in FY2025, up from 1,152.7m dollars in FY2024.

5. Financial Health

All figures below are taken from Datadog's own earnings releases, Forms 10-K and 10-Q, and cross-checked against the company's XBRL facts filed with the SEC. Revenue is in millions of US dollars; earnings per share are diluted.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021 (to 31 Dec 2021)	1,028.8	+70.5%	-$0.07	$0.48	Nil	$735.5m
FY2022 (to 31 Dec 2022)	1,675.1	+62.8%	-$0.16	$0.80	Nil	$738.8m
FY2023 (to 31 Dec 2023)	2,128.4	+27.1%	$0.14	$1.32	Nil	$742.2m
FY2024 (to 31 Dec 2024)	2,684.3	+26.1%	$0.52	$1.82	Nil	$979.3m†
FY2025 (to 31 Dec 2025)	3,427.2	+27.7%	$0.31	$2.05	Nil	$983.4m

† At 31 December 2024 Datadog also carried 634.0m dollars of convertible senior notes classified as current — the 0.125 per cent notes due 2025 — taking total convertible debt to 1,613.3m dollars. Those notes were repaid in cash during 2025 rather than converted, so no shares were issued against them. The 983.4m dollars shown for FY2025 is the carrying value of the zero-coupon convertible senior notes due 2029 (1.0bn dollars face value, issued December 2024). Datadog has never paid a dividend and has not announced any intention to start.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026 (to 30 Jun 2026)	$1,121.5m	$0.65	$0.12
Q1 2026 (to 31 Mar 2026)	$1,006.4m	$0.60	$0.15
Q4 2025 (to 31 Dec 2025)	$953.2m	$0.59	$0.13
Q3 2025 (to 30 Sep 2025)	$885.7m	$0.55	$0.10
Q2 2025 (to 30 Jun 2025)	$826.8m	$0.46	$0.01
FY2025 total (to 31 Dec 2025)	$3,427.2m	$2.05	$0.31

Cash flow and balance sheet, taken from the cash flow statement and balance sheet in the FY2025 Form 10-K and the Form 10-Q for the quarter ended 30 June 2026. FY2025 operating cash flow was 1,050.1m dollars, against capital expenditure on property and equipment of 49.6m dollars and capitalised software development of 85.8m dollars. Depreciation and amortisation was 55.8m dollars. On a trailing twelve-month basis to 30 June 2026 — FY2025 plus the first half of 2026 less the first half of 2025 — operating cash flow was 1,229.0m dollars, property capital expenditure 46.9m dollars, capitalised software 109.3m dollars, depreciation and amortisation 69.1m dollars and GAAP operating income 16.3m dollars. At 30 June 2026 the balance sheet showed 434.957m dollars of cash and cash equivalents, 4,550.481m dollars of current marketable securities, no current debt and 985.545m dollars of non-current convertible senior notes. Net cash was therefore approximately 4.0bn dollars.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Share price	$236.98 (close, 28 August 2026)
Market cap	~$85.1bn
Enterprise value	~$81.1bn (market cap ~$85,094m plus total debt $985.5m less cash and marketable securities $4,985.4m, per the 30 June 2026 balance sheet). Datadog is a net cash company, so enterprise value sits below market cap.
Trailing P/E (GAAP)	~474x on trailing twelve-month GAAP diluted EPS of $0.50 ($236.98 divided by $0.50). On the company's non-GAAP earnings the same trailing period equates to roughly 100x, since trailing non-GAAP diluted EPS is about $2.36.
P/E (forward)	~94x, derived from the company's own FY2026 guidance of non-GAAP diluted EPS of $2.50 to $2.54 (midpoint $2.52), issued 6 August 2026. Datadog does not guide to GAAP EPS.
P/S (TTM)	~21.5x (market cap ~$85,094m divided by trailing twelve-month revenue of $3,966.7m)
EV/EBITDA (TTM)	~950x on a strict GAAP basis (EV ~$81,094m divided by EBITDA of ~$85.4m, being trailing GAAP operating income of $16.3m plus depreciation and amortisation of $69.1m from the cash flow statement). This figure is not economically meaningful in isolation: GAAP operating income is almost entirely absorbed by stock-based compensation. Measured against the company's own FY2026 guidance for non-GAAP operating income of $1.01bn to $1.03bn plus roughly $75m of depreciation and amortisation, the equivalent multiple would be about 74x.
P/FCF	~79x (market cap ~$85,094m divided by free cash flow of ~$1,072.8m; free cash flow = trailing operating cash flow $1,229.0m less capital expenditure of $156.3m, itself property and equipment $46.9m plus capitalised software $109.3m, per the cash flow statement)
Price/book	~19.5x on book value per share of approximately $12.17
52-week high	$292.72, reached 5 August 2026 — the session before the second-quarter results
52-week low	$98.01, reached 24 February 2026
Short interest (% of float)	~3.2 per cent, being 9.25m shares short against a float of roughly 291m, at the 14 August 2026 settlement date. Short interest has fallen from a May 2026 peak above 5 per cent.
Days to cover	~1.84 days at the same settlement date, on recent average daily volume
Dividend yield	Nil — no dividend is paid

For live pricing and charting on this and other names, see the ChartsView Live Charts page.

7. What Are They Building

Datadog's product cadence stepped up sharply in 2026, and the direction is unambiguous: from monitoring systems that humans then fix, towards agents that investigate and remediate on their own, plus a security layer built specifically for AI workloads.

DASH 2026 and the agent push. At its developer conference on 9 and 10 June 2026 at the Javits Center in New York, Datadog launched more than 100 capabilities. The headline items were a fully autonomous Bits AI able to run end-to-end incident detection, investigation and remediation; AI Guard, which protects AI agents against prompt injection and data poisoning; Bring Your Own Cloud, which lets customers run Datadog inside their own cloud tenancy rather than Datadog's; and Bits Agent Builder for constructing custom agents. Bits Code, Bits Chat and Bits Agent Builder reached general availability alongside the second-quarter results on 6 August 2026.

Acquisitions. Three tuck-ins in fifteen months. Metaplane, a data-observability business, was announced in April 2025. Eppo, a feature-flagging and experimentation platform, was announced in May 2025 for a reported 220m dollars. Adaptive ML, announced on 30 June 2026 with terms undisclosed, brought a frontier-AI and reinforcement-learning-operations team that has been folded into a new Datadog AI Research group working on world models and agentic post-training.

Where the money goes. Research and development spending was 1,548.5m dollars in FY2025 against 1,152.7m dollars in FY2024, an increase of about 34 per cent — faster than revenue growth in the same year. Headcount reached 8,100 at the end of 2025, up roughly 25 per cent. Capitalised software development rose from 60.8m dollars in FY2024 to 85.8m dollars in FY2025 and is running at 61.5m dollars for the first half of 2026 alone, which is where a meaningful part of the agent build shows up on the cash flow statement.

External validation. On 15 July 2026 Datadog was named a Leader in the 2026 Gartner Magic Quadrant for Observability Platforms for the sixth consecutive year, positioned highest for ability to execute.

8. Competitive Landscape

Peer	Market cap (August 2026)	Key 2025/2026 metric
Dynatrace (DT, NYSE)	~$15.6bn	Fiscal 2026 revenue of $2,018m, up 19 per cent year on year (17 per cent in constant currency), per the company's fiscal fourth-quarter earnings release. The closest pure-play observability comparator; roughly half Datadog's trailing revenue and about one-fifth the market value.
Elastic (ESTC, NYSE)	~$10.5bn	First-quarter fiscal 2027 revenue (quarter ended 31 July 2026, reported 27 August 2026) of $478m, up 15 per cent year on year, with subscription revenue up 18 per cent. Competes directly in log management and search-based observability.
Cisco Systems (CSCO, Nasdaq)	~$433.3bn	Third-quarter fiscal 2026 revenue (quarter ended 25 April 2026) of $15.8bn, up 12 per cent year on year, with full-year fiscal 2026 guidance of $62.8bn to $63.0bn. Owns Splunk, acquired in 2024, which removed the largest independent log-analytics competitor from public markets.
ServiceNow (NOW, NYSE)	~$149.6bn	Second-quarter 2026 subscription revenue of $3,877m, up 24.5 per cent year on year, with full-year 2026 subscription guidance of $15,735m to $15,775m. Competes at the AIOps and incident-workflow layer rather than in raw telemetry collection.

Two competitors do not appear in the table because they are not publicly quoted. New Relic was taken private in 2023 by Francisco Partners and TPG. Grafana Labs remains venture-backed. The most significant competitive pressure, however, comes from a source with no separately reported revenue at all: the hyperscalers' native tooling — AWS CloudWatch, Azure Monitor and Google Cloud Operations — which is bundled with the underlying cloud contract and therefore competes on price at the entry level. Datadog's answer has consistently been breadth and depth rather than price.

9. Insider Activity

Chief Executive Officer Olivier Pomel, who co-founded Datadog in 2010 and has led it ever since, has been selling under a Rule 10b5-1 trading plan adopted on 15 December 2025. Chief Technology Officer and co-founder Alexis Lê-Quôc and Chief Financial Officer David Obstler have also sold during 2026. Every transaction identified in Datadog's 2026 Form 4 filings is a disposal or an option exercise followed by a disposal. No open-market purchases — SEC transaction code P — were identified for any officer or director during 2026.

Name	Date	Type	Shares	Price	Value	Plan Type
Olivier Pomel (CEO, co-founder)	13 Jul 2026	Sale	~127,000	~$259.00 weighted average	~$32.9m	Rule 10b5-1 plan (adopted 15 Dec 2025)
Olivier Pomel (CEO, co-founder)	23 Jul 2026	Sale	47,054	Not separately disclosed	~$11.5m	Rule 10b5-1 plan
Olivier Pomel (CEO, co-founder)	19 Aug 2026	Sale	47,054	$235.49	~$11.1m	Rule 10b5-1 plan
Alexis Lê-Quôc (CTO, co-founder, director)	20 Jul 2026	Sale of Class A shares	43,224	Not separately disclosed	~$11.5m	Rule 10b5-1 plan
Alexis Lê-Quôc (CTO, co-founder, director)	10 Aug 2026	Option exercise followed by sale	53,912	Not separately disclosed	~$13.7m	Rule 10b5-1 plan
Alexis Lê-Quôc (CTO, co-founder, director)	24 Aug 2026	Class B to Class A conversion followed by sale	43,224	$225.79 to $233.70 weighted average	Not separately disclosed	Rule 10b5-1 plan
David Obstler (CFO)	8 Jun 2026	Sale	75,000	Not separately disclosed	~$17.4m	Rule 10b5-1 plan

Context matters when reading this table. Sales under a pre-adopted Rule 10b5-1 plan are scheduled in advance and are not discretionary decisions taken on the day, so they carry far less signal than an unplanned open-market sale would. Equally, founder-led companies with dual-class share structures routinely show steady founder selling as a diversification mechanism. After the 24 August 2026 transaction Alexis Lê-Quôc retained approximately 509,974 Class A shares. The absence of any open-market purchase across the whole of 2026 is nonetheless a fact worth recording rather than explaining away.

10. Key Risks

• Largest-customer concentration: at the 6 August 2026 results Datadog disclosed that reduced usage from its single largest customer would weigh on the forward outlook. The market's response — a fall of roughly 19 per cent on a day when the company beat and raised — shows how much of the valuation rests on that cohort. Datadog does not disclose the customer's name or its share of revenue.
• Consumption-model volatility: because revenue follows usage rather than contracted seats, a customer-side optimisation programme reduces Datadog's revenue immediately and without notice. This cuts both ways, but it makes quarterly outcomes materially harder to forecast than in a seat-based software business.
• Hyperscaler and platform competition: AWS, Microsoft and Google bundle native observability with cloud infrastructure at effectively marginal cost, while Cisco (now owning Splunk), ServiceNow, Dynatrace and Elastic attack individual layers of the platform. Datadog's own filings list competition in its markets as a principal risk factor.
• Valuation and multiple compression: the shares trade on approximately 474 times trailing GAAP earnings and about 94 times the midpoint of company-guided FY2026 non-GAAP EPS. A multiple of that order embeds sustained high growth and continuing margin expansion; the guided step down from 36 per cent to 28 to 29 per cent growth is exactly the kind of change such multiples react to.
• Dilution from the 2029 convertible notes: 1.0bn dollars face value of zero-coupon convertible senior notes due 2029 remain outstanding, carried at 985.5m dollars at 30 June 2026. The 2025 tranche was retired for cash, so it caused no dilution, but conversion of the 2029 notes at a sufficiently high share price would issue new Class A shares.
• Dual-class control and the Nevada reincorporation: Class B shares carry ten votes each against one for Class A, concentrating control with the founders. The conversion of the corporate domicile from Delaware to Nevada, approved by shareholders on 21 April 2026, drew public objection from at least one institutional holder on the grounds that it narrows certain shareholder protections.
• Data privacy, security and service-level exposure: the platform ingests customer telemetry and log data at very large scale. Datadog's filings identify changing data-privacy laws and the risk of a security breach as material business risks, and separately flag contractual service credits for uptime or response-time failures and customer indemnification obligations as ongoing legal exposures.
• Thin GAAP profitability: trailing GAAP operating income of 16.3m dollars on 3,966.7m dollars of revenue leaves no cushion. If revenue growth slows while stock-based compensation and headcount continue rising, the company can move back into GAAP operating loss, as it did in FY2025.

11. Recent Developments

• 10 Feb 2026 — Fourth-quarter and full-year 2025 results. FY2025 revenue of 3,427.2m dollars, up 27.7 per cent, with GAAP diluted EPS of 0.31 dollars and non-GAAP diluted EPS of 2.05 dollars. Initial FY2026 revenue guidance was set at 4.06bn to 4.10bn dollars.
• 27 Feb 2026 — Definitive proxy filed proposing reincorporation in Nevada. The DEF 14A set out a conversion of the corporate domicile from Delaware to Nevada for a special shareholder meeting.
• 21 Apr 2026 — Shareholders approve the Nevada reincorporation. The conversion was subsequently completed during 2026 via a Delaware certificate of conversion and Nevada articles of conversion.
• 7 May 2026 — First-quarter 2026 results. Revenue of 1,006.4m dollars, up 32 per cent and the first quarter above 1bn dollars, with non-GAAP diluted EPS of 0.60 dollars and free cash flow of 289m dollars. The shares rose sharply on the day.
• 09 Jun 2026 — DASH 2026 opens in New York. Datadog launched more than 100 capabilities across the two-day conference, including autonomous Bits AI, AI Guard for agent security, and Bring Your Own Cloud deployment.
• 30 Jun 2026 — Acquisition of Adaptive ML announced. The frontier-AI and reinforcement-learning-operations team was folded into a new Datadog AI Research group. Terms were not disclosed.
• 15 Jul 2026 — Named a Gartner Magic Quadrant Leader for a sixth consecutive year. Datadog was positioned highest for ability to execute in the 2026 Magic Quadrant for Observability Platforms.
• 16 Jul 2026 — Second-quarter earnings call date announced. The company confirmed it would report on 6 August 2026, following its usual practice of a separate scheduling release roughly three weeks ahead.
• 29 Jul 2026 — Cloudaware partnership announced. The two companies partnered on closing cloud log-coverage gaps through the LogSight product.
• 06 Aug 2026 — Second-quarter 2026 results and a 19 per cent share price fall. Revenue of 1,121.5m dollars was up 36 per cent, billings up 38 per cent and remaining performance obligations up 43 per cent, and full-year guidance was raised to 4.45bn to 4.47bn dollars. The shares nonetheless fell about 19 per cent after management disclosed reduced usage from its largest customer and guided third-quarter growth down to 28 to 29 per cent. Bits Code, Bits Chat and Bits Agent Builder reached general availability the same day.

12. Key Dates and Catalysts

• Expected 05 Nov 2026 — third-quarter 2026 results. This date appears on public earnings calendars but Datadog had not issued its own confirming press release as at 31 August 2026.
• Expected Oct 2026 — the separate Datadog press release confirming the third-quarter earnings call date. The company issued the equivalent notice on 16 July 2026 for the 6 August call.
• Expected Feb 2027 — fourth-quarter and full-year 2026 results, together with initial FY2027 guidance. Datadog reported the equivalent period on 10 February 2026.
• TBC — DASH 2027 developer conference. DASH 2026 ran on 9 and 10 June 2026 at the Javits Center in New York; no 2027 date has been announced.
• TBD — maturity of the 1.0bn dollar zero-coupon convertible senior notes due 2029. The exact maturity date within 2029 is set out in the December 2024 indenture and was not confirmed in the sources reviewed for this report.

Between now and the November print, the questions that actually matter are unscheduled: whether the largest customer's usage stabilises, whether the AI-native cohort broadens beyond the handful of accounts spending more than 10m dollars a year, and whether the eight-or-more-product adoption curve keeps climbing. None of those arrive on a calendar. For the macro releases that do, see the ChartsView Economic Calendar, and to discuss this name with other readers visit the ChartsView Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 28 August 2026

CoStar Group is the largest commercial property data and analytics business in the world, and — after nearly a decade of very expensive effort — a serious residential marketplace operator too. The FY2025 accounts show a company that grew revenue 19% to $3.25bn while earning almost nothing on a GAAP basis, because roughly $1.5bn a year of residential spending was being absorbed by the income statement. The second quarter of 2026, reported on 28 July 2026, is the first period in which that picture visibly changed: revenue of $925m, net income of $55m against $6m a year earlier, and a Residential segment that turned adjusted-EBITDA positive for the first time. This report sets out what the filings actually say, without ratings or price targets. For live pricing see our Live Charts page.

1. Company Snapshot

Field	Value
Company	CoStar Group, Inc.
Ticker / exchange	CSGP (NASDAQ)
Headquarters	Arlington, Virginia, United States
Sector	Commercial and residential real estate data, analytics and marketplaces
CEO / Leadership	Andy Florance (Founder, President & Chief Executive Officer); Robin Rossmann (Chief Financial Officer, from August 2026); Louise Sams (independent Board Chair)
Employees	8,441 (as at 31 January 2026, per the FY2025 Form 10-K), up roughly 28% on the 6,593 disclosed a year earlier
Revenue (FY2025)	$3,247m, up 18.7% year on year
Net income (FY2025)	$7m (GAAP); Adjusted EBITDA $442m
Latest reported period	Q2 2026, quarter ended 30 June 2026, reported 28 July 2026
Revenue (Q2 2026)	$925m, up 18% year on year
Share price	$31.34 (close, 27 August 2026)
Market cap	Approximately $12.70bn
Shares outstanding	405,197,588 (10-Q cover page, 27 July 2026)
Dividend	None. CoStar has never declared or paid a dividend on its common stock
Fiscal year end	31 December

2. Bull and Bear Case

Bull Case

• Profitability inflection is now visible in the numbers: Q2 2026 delivered $925m of revenue, $55m of GAAP net income against $6m a year earlier, and Adjusted EBITDA of $184m, up 116% year on year — the second highest quarterly figure in company history.
• Residential has stopped burning cash at the segment level: Residential Real Estate reported positive Adjusted EBITDA of $12m in Q2 2026, a $41m sequential improvement, against a full-year FY2025 segment loss of $230m.
• The core commercial franchise is a genuine near-monopoly: the CoStar and LoopNet brands together produced $481m of Q2 2026 revenue at $172m of segment Adjusted EBITDA, with a contract renewal rate reported at 93% in the quarter and 95% for customers of five years or more.
• Subscription mechanics and a long growth record: 73% of revenue sits on annual subscription contracts, net new bookings reached a record $308m in FY2025 and $69m in Q2 2026, and the company recorded its 61st consecutive quarter of double-digit revenue growth.
• The founder is buying his own stock: Andy Florance made three open-market purchases in 2026 — March, May and August — totalling more than 210,000 shares, with the August tranche of 83,300 shares bought at an average $29.89.

Bear Case

• GAAP earnings remain negligible relative to the market value: FY2025 net income was $7m on $3,247m of revenue and the FY2025 GAAP operating result was a $72m loss; trailing GAAP EPS of roughly $0.19 leaves the shares on an extreme reported multiple.
• Homes.com still has to prove the return: roughly 35,000 paid agent members and an annual run-rate around $100m sit against a residential investment programme that an activist publicly characterised as multi-billion-dollar, and Zillow still reports several times Homes.com's audience.
• New antitrust litigation is unresolved: two federal actions were filed in 2026 — a Sherman Act case in the Eastern District of Virginia in April and a rent-data price-fixing class action in the Northern District of Illinois on 12 June — with no trial dates set.
• Goodwill is now roughly half the balance sheet: $4,981m of goodwill at 30 June 2026 against $10,139m of total assets, built up through Matterport, Domain, Visual Lease and now Zonda, which makes any residential stall an impairment question.
• The share price has de-rated violently: the stock closed at $31.34 against a 52-week high of $91.89, and the finance function changed hands in July 2026 when Chris Lown left for Allstate.

3. Revenue Segments

From the fourth quarter of 2025 CoStar reports two segments — Commercial Real Estate and Residential Real Estate — and disaggregates commercial revenue by brand. The table below uses the disaggregated revenue disclosure for the three months ended 30 June 2026, on total revenue of $925m.

Segment / revenue line	% of revenue	What it is
Residential Real Estate	48.0% ($444m)	Apartments.com, Homes.com, Domain in Australia, Matterport digital twins and the land marketplaces. Grew 33% year on year from $335m and turned Adjusted EBITDA positive for the first time in Q2 2026
CoStar (commercial information)	36.4% ($337m)	The flagship commercial property research subscription — leasing, sales comparables, tenant and analytics data for brokers, owners, lenders and investors
LoopNet	9.4% ($87m)	The commercial property marketing marketplace, sold on a listing-exposure basis to owners and brokers
Other Commercial Real Estate	6.2% ($57m)	Ten-X online auctions, STR hospitality benchmarking, Visual Lease lease administration and other commercial products

Total Commercial Real Estate was $481m, or 52.0% of the quarter. For the full FY2025 year, Commercial Real Estate was $1,787m (55.0%) against Residential Real Estate of $1,460m (45.0%), with segment Adjusted EBITDA of $672m and negative $230m respectively.

4. Business Model and Moat

How it makes money. CoStar sells annual subscriptions to proprietary databases and marketplace exposure, collected monthly and sold through a large direct field sales force. Approximately 73% of revenue was on annual subscription contracts in the most recent disclosure. The company's own forward indicator is net new bookings — the annualised value of new and expanded contracts less cancellations — which was $67m in Q1 2026 and $69m in Q2 2026, following a record $308m for FY2025.

Where the moat sits. The commercial database is built by a research operation that physically verifies property, lease and sale data at a scale competitors have not replicated, and the resulting dataset is embedded in the workflow of brokers, appraisers, lenders and institutional owners. That shows up as renewal behaviour: management reported a 93% contract renewal rate in Q2 2026, with 95% for customers of five years' tenure or more. Switching costs are behavioural as much as contractual — comparables histories, saved searches and internal underwriting models are all built on the CoStar record.

Why residential is different. Homes.com and Apartments.com are advertising marketplaces, where the moat is audience rather than data exclusivity. CoStar reported roughly 118m average monthly unique visitors across its websites in Q2 2026 and an average of 108m for the Homes.com Network across 2025, and has been buying reach — Domain in Australia in August 2025, Matterport in February 2025 and Zonda in August 2026. The economics only work if agent subscriptions convert that traffic; membership stood at roughly 35,000 paid agents after a fee increase that took effect in late April 2026.

Capital intensity. Property capital expenditure has been dominated by the Richmond, Virginia campus build: $307m of "new campuses" spending in FY2025 plus $82m of other property and equipment, falling to $83m and $29m respectively in the first half of 2026 as the programme tapers.

5. Financial Health

All figures below are taken from CoStar Group's annual and quarterly earnings releases filed with the SEC and from the company's XBRL financial data. Adjusted EPS is the company's own non-GAAP net income per diluted share.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	1,944.1	+17.2%	$0.74	$1.14	Nil	$987.9m
FY2022	2,182.4	+12.3%	$0.93	$1.27	Nil	$989.2m
FY2023	2,455.0	+12.5%	$0.92	$1.22	Nil	$990.5m
FY2024	2,736.0	+11.4%	$0.34	$0.73	Nil	$992.0m
FY2025	3,247.0	+18.7%	$0.02	$0.87	Nil	$993.0m

Long-term debt is the $1.0bn of 2.800% senior notes due 2030, carried net of issuance costs; CoStar has no current portion of long-term debt. The dividend column is nil in every year because the company has never declared one and states it has no plan to.

Quarter / Half	Revenue ($m)	Adjusted EPS	GAAP EPS
Q2 2026	925	$0.32	$0.14
Q1 2026	897	$0.23	$0.01
Q4 2025	900	$0.31	$0.11
Q3 2025	834	$0.23	−$0.07
FY2025 total	3,247	$0.87	$0.02

Cash flow and balance sheet. Operating cash flow was $430m in FY2025 and $267m in the first half of 2026 against $200m in the comparable prior period. Capital expenditure across both disclosed lines was $389m in FY2025 and $112m in the first half of 2026. Depreciation and amortisation was $263m in FY2025 and $167m in the first half of 2026. At 30 June 2026 the company held $1,266m of cash, cash equivalents and restricted cash against $994m of long-term debt, $4,981m of goodwill, $10,139m of total assets and $7,945m of total equity. The first-half cash outflow of $467m reflects $587m of share repurchases and a $109m litigation accrual payment tied to the Matterport Brown judgment; the $800m Zonda purchase closed after the balance sheet date on 21 August 2026 and is not reflected above.

Guidance. For FY2026 management guides revenue of $3.715bn to $3.755bn, Adjusted EBITDA of $780m to $820m, GAAP diluted EPS of $0.54 to $0.61 and Adjusted EPS of $1.32 to $1.39 on 405m shares. Q3 2026 guidance is revenue of $935m to $945m and Adjusted EPS of $0.31 to $0.34.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Share price	$31.34 (close, 27 August 2026)
Market cap	~$12.70bn (405.2m shares at $31.34)
Enterprise value	~$12.43bn (market cap ~$12.70bn + total debt ~$0.99bn − cash and restricted cash ~$1.27bn per the 30 June 2026 balance sheet; CoStar reports no current portion of long-term debt and no separate short-term investments line)
Trailing P/E (GAAP)	~165x ($31.34 divided by trailing twelve-month GAAP diluted EPS of $0.19, being Q3 2025 −$0.07, Q4 2025 $0.11, Q1 2026 $0.01 and Q2 2026 $0.14). On the company's own trailing twelve-month Adjusted EPS of $1.09 the same price is about 29x
P/E (forward)	~23x on the midpoint of company FY2026 Adjusted EPS guidance of $1.32–$1.39; approximately 55x on the midpoint of FY2026 GAAP diluted EPS guidance of $0.54–$0.61
P/S (TTM)	~3.6x (market cap ~$12.70bn / trailing twelve-month revenue $3,556m, being FY2025 $3,247m − H1 2025 $1,513m + H1 2026 $1,822m)
EV/EBITDA (TTM)	~31.5x (EV ~$12.43bn / trailing twelve-month EBITDA of $394m; EBITDA = trailing operating income $77m + trailing depreciation and amortisation $317m, using the wider cash-flow-statement D&A line rather than the narrower property-only depreciation figure). GAAP EBITDA remains heavily depressed by acquired-intangible amortisation, so this multiple sits far above the ~15x implied on the company's own FY2026 Adjusted EBITDA guidance of $780m–$820m
P/FCF	~56x (market cap ~$12.70bn / free cash flow ~$227m; FCF = trailing operating cash flow $497m − trailing capital expenditure $270m across both disclosed property lines)
Price/book	~1.6x (market cap ~$12.70bn / total equity $7,945m at 30 June 2026)
52-week high	$91.89
52-week low	$25.89
Short interest (% of float)	4.15% (16.69m shares short against a 399.6m share float, settlement date 14 August 2026)
Days to cover	2.15
Dividend yield	n/a — no dividend is paid

7. What Are They Building

Artificial intelligence across the marketplaces. Homes AI launched on Homes.com on 17 February 2026 as a conversational property search and shopping layer, and an equivalent Apartments.com AI product followed in June 2026. Both are aimed at converting the audience CoStar has bought and built into paid agent and property-manager subscriptions.

New-home data through Zonda. The $800m acquisition of Zonda from MidOcean Partners, agreed 29 May 2026 and completed on 21 August 2026, brings NewHomeSource and Livabl plus a lot-level new-construction database. It extends CoStar's residential coverage into the new-build segment, where the advertiser is a homebuilder rather than an agent.

Digital twins and international. Matterport, acquired in February 2025, is being pushed into listing workflows across the residential and commercial products. Domain, acquired in August 2025, gives CoStar an established Australian marketplace, while the European business — previously run by the incoming CFO — has been extended into France.

The Richmond campus. The largest single capital project of recent years is CoStar's Richmond, Virginia campus, which absorbed $307m of capital spending in FY2025 and is tapering: $83m in the first half of 2026. Its completion is a meaningful free-cash-flow tailwind independent of trading.

8. Competitive Landscape

CoStar sits between two competitive sets. In commercial data and analytics it competes with the broader financial information complex; in residential marketplaces it competes with Zillow, Realtor.com and, increasingly, brokerage-owned portals. Market capitalisations below were checked live on 27–28 August 2026.

Peer	Market cap (August 2026)	Key 2025 metric
Moody's Corporation (MCO)	~$88.15bn	Trailing twelve-month revenue of $8.16bn; the benchmark for a subscription analytics franchise with pricing power
MSCI Inc. (MSCI)	~$41.38bn	Trailing twelve-month revenue of $3.33bn on a similar revenue base to CoStar but with far higher margins — trailing EBITDA of roughly $1.96bn
Verisk Analytics (VRSK)	~$24.86bn	Trailing twelve-month revenue of $3.14bn and trailing EBITDA of roughly $1.52bn
Compass, Inc. (COMP)	~$8.52bn	Trailing twelve-month revenue of $10.56bn on brokerage gross accounting; reported record Q2 2026 revenue of $4.31bn
Zillow Group (ZG)	~$8.17bn	Trailing twelve-month revenue of $2.81bn; Q2 2026 revenue of $772m, up 18%, with a $4m net loss after a $36m restructuring charge

Two structural points sit behind the table. Zillow's audience remains materially larger than the Homes.com Network's, which is the single most important competitive fact for CoStar's residential thesis. And News Corp's Move business, which operates Realtor.com, reported FY2026 revenue up 11% to $610m with a seventh consecutive quarter of growth, indicating the third-place fight is not going uncontested. Black Knight no longer trades independently, having been absorbed into Intercontinental Exchange.

9. Insider Activity

Founder, President and Chief Executive Officer Andy Florance has been a consistent open-market buyer of CoStar stock through 2026, in three separate tranches spanning March, May and August, against a share price that has fallen heavily over the period. The only insider sale of note was by the Chief Accounting Officer in August 2026. All entries are drawn from Form 4 filings under CIK 1057352.

Name	Date	Type	Shares	Price	Value	Plan Type
Andy Florance (Founder, CEO & Director)	04 Aug 2026	Buy	83,300	$29.89 avg	~$2.49m	Open market
Cynthia Cammett Cann (Chief Accounting Officer)	07 Aug 2026	Sell	4,788	$30.78	~$0.15m	Not stated on filing summary
Christine M. McCarthy (Director)	23 Jun 2026	Restricted share grant	8,262	$0.00	Nil consideration	Annual director equity award
Andy Florance (Founder, CEO & Director)	01 May 2026	Buy	71,430	Not disclosed in filing summary	Not disclosed	Open market
Andy Florance (Founder, CEO & Director)	02 Mar 2026	Buy	55,720	~$44.51 avg	~$2.48m	Open market

After the August purchase Florance's reported holding stood at 1,806,165 shares.

10. Key Risks

• Residential return on investment: Homes.com has roughly 35,000 paid agent members and an annualised revenue run-rate near $100m against a residential build-out that consumed the great majority of the group's operating profit for two years. Q2 2026 was the first quarter of positive segment Adjusted EBITDA, at $12m, and a single quarter does not establish durability.
• Antitrust litigation: two federal actions were filed in 2026 — a Sherman Act monopolisation suit in the Eastern District of Virginia in April 2026 and a rent-data price-fixing class action in the Northern District of Illinois on 12 June 2026 naming CoStar alongside major brokerages. CoStar has publicly denied the claims; no trial dates have been set and no financial exposure has been quantified in the filings.
• Goodwill and acquisition integration: goodwill stood at $4,981m at 30 June 2026, roughly 49% of total assets, having roughly doubled since the end of 2024 through Matterport, Domain and now Zonda. Management continues to list realisation of Matterport benefits as a forward-looking risk in its own filings.
• Competitive intensity in residential: Zillow reports a substantially larger audience and Realtor.com has posted seven consecutive quarters of revenue growth. Agent advertising budgets are finite, and Homes.com raised new-member pricing in April 2026 into that environment.
• Commercial real estate cycle exposure: the commercial subscription base is sold to brokers, owners and lenders whose headcount and budgets move with transaction volumes. A renewed downturn in commercial transaction activity would hit net new bookings before it hit revenue.
• GAAP earnings quality and reliance on adjustments: the gap between FY2026 GAAP EPS guidance of $0.54–$0.61 and Adjusted EPS guidance of $1.32–$1.39 is roughly $251m of acquired-intangible amortisation and $156m of stock-based compensation. Investors valuing the shares on the adjusted figure are excluding real, recurring costs.
• Leadership and governance transition: the Chief Financial Officer changed hands in July 2026, the board was substantially refreshed through 2025 and 2026, and an activist campaign ran publicly from January to April 2026 before the investor exited entirely.

11. Recent Developments

• 27 Jan 2026 — Third Point launches a public activist campaign. Dan Loeb's Third Point wrote to the board demanding an overhaul and an exit from Homes.com, criticising both the scale of residential investment and executive pay.
• 17 Feb 2026 — Homes AI launches. CoStar rolled out an AI-driven property search and shopping experience on Homes.com.
• 20 Feb 2026 — Delaware litigation resolved. The Chancery Court dismissed the Matterport-related class and derivative claims with prejudice as to the named plaintiff after the disputed clause was removed.
• 24 Feb 2026 — FY2025 results. Revenue of $3,247m, up 19%, net income of $7m, Adjusted EBITDA of $442m up 83%, record net new bookings of $308m, and a $700m buyback planned for 2026.
• 13 Apr 2026 — Third Point exits. The activist sold its entire CoStar position, with Loeb stating the original thesis no longer held, ending the campaign without a proxy fight.
• 28 Apr 2026 — Q1 2026 results. Revenue of $897m, up 23%, net new bookings of $67m up 20%, and a return to positive GAAP net income of $3m.
• 29 Apr 2026 — Homes.com raises pricing. New agent membership fees increased, taking the average annual subscription cost to roughly $3,400.
• 29 May 2026 — Zonda agreed. CoStar agreed to acquire Zonda from MidOcean Partners for $800m in cash.
• 12 Jun 2026 — Price-fixing class action filed. A hub-and-spoke antitrust class action was filed in the Northern District of Illinois naming CoStar and several major commercial brokerages over alleged sharing of non-public rent data.
• 25 Jun 2026 — Annual meeting. Stockholders re-elected all director nominees and supported the say-on-pay proposal.
• 28 Jul 2026 — Q2 2026 results. Revenue of $925m up 18%, GAAP net income of $55m against $6m, Adjusted EBITDA of $184m up 116%, and the first positive Residential segment Adjusted EBITDA at $12m.
• 31 Jul 2026 — CFO change. Chris Lown left to become Chief Financial Officer of Allstate; Robin Rossmann, previously Europe Managing Director, was named his successor.
• 04 Aug 2026 — CEO buys stock. Andy Florance purchased 83,300 shares at an average $29.89, roughly $2.5m, in the open market.
• 21 Aug 2026 — Zonda closes. The $800m acquisition completed, funded from cash on hand, adding NewHomeSource and Livabl to the residential portfolio.
• 26 Aug 2026 — Data-centre demand research published. A CoStar report showed data centres taking an increasing share of United States industrial demand, a data point for the commercial analytics franchise.

12. Key Dates and Catalysts

• Expected late Oct 2026 — Q3 2026 results. Company guidance is revenue of $935m to $945m and Adjusted EPS of $0.31 to $0.34; CoStar has reported the third quarter in the second half of October in each of the last two years, but has not yet confirmed the date.
• Expected Feb 2027 — FY2026 results, against full-year guidance of $3.715bn to $3.755bn of revenue and $780m to $820m of Adjusted EBITDA.
• Expected Jun 2027 — annual meeting of stockholders; the 2026 meeting was held on 25 June 2026.
• TBC — procedural milestones in the two 2026 federal antitrust actions in the Eastern District of Virginia and the Northern District of Illinois. No hearing or trial dates have been published.
• TBD — first full quarter of Zonda contribution. The acquisition closed on 21 August 2026, so Q3 2026 will carry roughly six weeks of it and Q4 2026 will be the first clean quarter.

For scheduled macroeconomic releases that move real estate and rate-sensitive equities, see the ChartsView Economic Calendar. Reader discussion of this and other companies is on the ChartsView Forum.

---

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.