10-27-26: A Closer Look at Last Week’s Earnings Leaders

by Louis Navellier

October 27, 2026

Here is a closer look at some of major stock reports which dominated the market news last week:

On Tuesday, Super Micro Computer (SMCI) pre-announced its fiscal first-quarter sales, predicting a range of $18.5 billion to $19.5 billion, up sharply from previous guidance of $14.5 billion to $15.5 billion due to increased demand for the company’s AI platforms. The company also said its gross margins should reach 12% to 12.5%, up from its previous guidance of 10.4% to 10.8%. This higher guidance from SMCI boosted Dell Computer (DELL) and Hewlett Packard, (HPE).

Then, on Wednesday, Elon Musk’s Space Exploration Technologies Corp (SPCX) announced better-than-expected results, raising its guidance above analyst estimates. The company has successfully made the transition from negative to positive operating results. Specifically, SpaceX reported operating earnings of 35 cents per share, which is 112.5% higher than the analyst consensus estimate of 16 cents per share and it should remain profitable in its upcoming quarters. SpaceX and Tesla have also formed committees to evaluate merging Tesla & SpaceX.

This merger speculation has also helped to boost Tesla Inc, (TSLA) stock price, and Tesla announced better-than-expected third-quarter results. The company’s operating margins have resumed improving as its Optimus robot production is no longer distracting investors as a major capital expense. Looking forward, the analyst community now expects Tesla’s fourth-quarter sales to rise by 17.3% and its earnings to decline by 12.7%. Tesla shareholders seem tentative about a merger with SpaceX, since it is expected to be a stock swap, but whether or not the stock swap will be at a fair price is causing some investor anxiety.

On Thursday, Western Digital (WDC) announced that its latest quarterly revenues rose 55.5% to $4.38 billion (5.2% better than analyst estimates) and its operating earnings surged 160.7% to $4.64 per share (13.3% better than analyst estimate). Naturally, the company also raised its guidance above consensus estimates. I like the fact that Western Digital’s operating margins expanded to 58.1%, up from 49.1% in the past year, which should insure strong operating earnings in the upcoming quarters.

One analyst noted that Western Digital’s inventories rose to $1.78 billion up from $1.51 billion in the same quarter a year ago, insinuating that higher inventories were potentially a problem. However, that analyst is wrong, in my view, since compared to Western Digital’s explosive sales growth, the company’s inventories are actually tighter as a percent of sales than they were a year ago. The stock sold off after its earnings announcement on apparent inventory concerns and is now a screaming near-term buy!

Also on Thursday, Comfort Systems (FIX) announced that its third-quarter revenue rose 53.7% to $3.766 billion compared with $2.451 billion in the same quarter a year ago. During the same period, the company’s earnings rose 68.6% to $489 million or $13.91 per share compared to $291.6 million, or $8.25 per share. The analyst community was expecting revenue of $3.3 billion and earnings of $12.71 per share, so Comfort Systems posted a 12.5% positive revenue surprise and a 9.4% earnings surprise.

The grande finale for earnings last week was Bloom Energy (BE), which announced its third-quarter revenues soared 138% to $1.24 billion compared with $519.05 million in the same quarter a year ago. During the same period, the company’s earnings surged 526.7% to $0.94 per share compared to $0.15. The analyst community was expecting revenue of $1.07 billion and earnings of 68 cents per share, so Bloom Energy posted a 15.9% revenue surprise and a 38.2% earnings surprise. Naturally, the company raised its guidance above analyst estimates. Bloom Energy is spending a lot of money striving to boost its fuel cell production five-fold, so some naysayers are worried about its cash burn, but when companies like Bloom Energy have such massive order backlogs, the naysayers are wrong.  And don’t forget, the world’s greatest investors – the Pelosi family – recently took a major position in Bloom Energy!

News from The World’s Biggest Trouble Spots – Mostly in France, Ukraine and the Middle East

There is no doubt France has been in shock after an estimated 550,000 protesters nationwide burned and looted a once proud country. French government bonds have risen to a 24-year high. French President Emmanuel Macron has expressed “anger” and “shame” over “insurrection elements from radical groups, joined by numerous criminals.” And on Truth Social, President Trump wrote, “France is burning!”

Clearly, Marine Le Pen’s National Party is now expected to sweep the upcoming elections in France, since this level of domestic unrest has become intolerable. Curfews have been imposed in major French cities, but obviously that is just a Band-Aid that will not solve France’s widespread social unrest.

Speaking of burning, a defiant Ukrainian President Zelensky has resumed attacking Russian refineries and energy storage facilities, ranging from St. Petersburg to Siberia. On “Meet the Press,” Zelensky expressed his frustration that Starlink curtailed its internet speed, which effectively impedes Ukraine’s drones from responding on time, as they rely on Starlink for navigation. Ukraine’s armed forces also rely on a secure, militarized version of Starlink called Starshield. President Trump said Ukraine is targeting Russian diesel refineries “knowing these attacks are seriously hurting the world diesel markets, including those in the United States,” adding that Russia was “sending, at a low price, millions of barrels of diesel to the world.”

Obviously, the alliance to support Ukraine’s offensive attacks on Russia are now fractured. Although most European allies largely back Zelensky, there is growing concern the next step will be U.S. withdrawal from support for Ukraine. This means the upcoming G20 meeting at Doral, Florida will be quite tense. President Trump has disinvited South Africa while inviting Russia. Obviously, President Trump is striving to force a peace agreement between Russia and Ukraine before December’s G20 meeting. However, since Putin and Zelensky obviously hate each other, reaching some accord is becoming a formidable task.

The Wall Street Journal reported that more crude oil is now flowing out of the Persian Gulf than before the Iran war, so the Strait of Hormuz is no longer a bottleneck. That is the good news. The bad news is the Houthi attacks on Saudi Arabia persist and are keeping crude oil prices high. The State Department has ordered nonessential personnel to depart Saudi Arabia due to Houthi attacks on critical infrastructure. As a result, crude oil prices are expected to remain high due to the threat on Saudi Arabian energy facilities.

Closer to home, Alberta voted overwhelming to remain in Canada, so its secession movement has ended. This is a major victory for Prime Minister Mark Carney, who was raised in Edmonton, the capital of Alberta. And now, Alberta’s Premier Danielle Smith is being blamed for putting secession up to a vote to circumvent the courts. Alberta remains Canada’s most profitable province due to high crude oil prices.

In conclusion, I expect a very strong year-end U.S. stock market rally fueled by: (1) a return to quality, (2) the end of the fake news propagated by Chinese bots after the midterm elections, (3) an early “January effect” aided by another Russell index realignment, and (4) international capital pouring into the U.S. due to a strong dollar. I am not worried about the midterm election outcome, since the Trump administration front-loaded its economic agenda and Wall Street historically favors political gridlock in Washington DC.

Also, November is a historically strong month, and the upcoming holidays are a time when happiness raises investor sentiment, which historically triggers a strong year-end rally. It is impossible to suppress rising sales, earnings, guidance and order backlogs much longer.  I realize most of the world is a mess, but that does not apply to America, which is an oasis for global capital. Maybe France will be the first domino to fall, leading to a breakup in the EU, so I expect global capital flight to America in 2027 to keep rising.

Navellier & Associates; own Super Micro Computer Inc. (SMCI), Bloom Energy (BE), Comfort Systems (FIX), Western Digital (WDC), Hewlett Packard (HPE) and Dell Technology (DELL) in managed accounts. Navellier does not own Tesla Inc. (TSLA) or Space Exploration Technologies Corp (SPCX) in managed accounts. Louis Navellier and his family own Super Micro Computer Inc. (SMCI), Bloom Energy (BE), Comfort Systems (FIX), Western Digital (WDC), Hewlett Packard (HPE) and Dell Technology (DELL) via a Navellier managed account. They do not own Tesla Inc. (TSLA) or Space Exploration Technologies Corp (SPCX) personally.