Who Will Surprise With Earnings Next Week? (07.08.2026)
The Q2 2026 earnings season is nearing its end, with several mid-cap companies set to report their earnings. Understanding the specifics of these companies can help investors position themselves effectively ahead of the earnings releases.
Lumentum Holdings Inc (LITE.US)
Lumentum is a leader in the photonics industry, which is experiencing a surge in demand for computing power. The company has consistently beaten market expectations in its last eight earnings calls, with six of those resulting in a rise in share price. The growth rate is accelerating, and profits are rising exponentially, indicating that the market may be underestimating the company's earnings potential. The current quarter's expectations are around USD 1 billion in revenue and an EPS of about USD 3, with a gross margin of at least 35%. A surprise would be seen if revenue exceeds USD 1.02 to 1.05 billion and EPS reaches around USD 3.1 to 3.2, with a gross margin above 36%.
Coherent Inc (COHR.US)
Coherent, also in the photonics sector, is expected to benefit from similar trends as Lumentum but is not as well-positioned. The company’s profitability is largely driven by its product mix, particularly in the data center segment, which is growing at about 40%. Maintaining revenue growth above 20% year-over-year and gross margins above 40% will be crucial for a positive market reaction. The market is looking for an EPS of over USD 1.5 and optimistic guidance from management. However, there is a risk of overexpansion in production capacity, which could negatively impact free cash flow.
Brinker International Inc (EAT.US)
Brinker owns popular US restaurant brands like Chipotle and Chili’s. While previous quarters showed positive results, the current high expectations may not be met due to economic pressures on lower-income consumers. The consensus expects an EPS of around USD 10 to 11, which may be challenging to achieve given the current economic environment. The company faces significant competition from larger international chains that can manage costs more effectively.
Cardinal Health Inc (CAH.US)
Cardinal Health has set high expectations with guidance of USD 10.7 to 10.8 EPS for the year. However, the market's focus on profitability may overlook the importance of growth, especially after a previous quarter where strong EPS did not prevent a stock drop due to disappointing revenue. The company’s performance heavily relies on its specialty pharmaceuticals segment, which is currently performing well. For a positive reception, the company needs to show revenue growth, margin expansion, and optimistic guidance for the next year.
In summary, the upcoming earnings reports from these companies will be closely watched, with varying expectations and potential for surprises based on their performance metrics and market conditions.