Strong quarterly results didn’t translate into broad gains, with Western Digital, American Express and Newmont all falling despite solid earnings. Kinder Morgan stood out as the week’s winner, rising after an EPS beat and a record natural gas project backlog.
Last week’s earnings showed that beating estimates was not enough to guarantee a stock rally. Kinder Morgan stood out as the only clear winner, while strong reports from Western Digital, American Express, Thermo Fisher and Union Pacific still met selling pressure as investors focused on valuation, guidance and forward momentum.
The past week’s earnings delivered a sharp market lesson: strong EPS results did not guarantee strong stock performance. Most focus companies beat listed estimates, yet only Kinder Morgan (KMI) posted a gain in the quoted market snapshots, while Western Digital (WDC), Newmont (NEM), and American Express (AXP) fell despite solid operating results.
Key Takeaways
Western Digital (WDC) delivered 55% revenue growth, a 161% EPS increase, and $1.4B in free cash flow, but the stock fell 2.97%.
American Express (AXP) posted record $20B revenue, raised its full-year EPS guidance, and still declined 3.73%.
Kinder Morgan (KMI) was the clear market winner, rising 2.11% after beating its EPS estimate and reporting a record natural gas project backlog.
Moody’s (MCO) missed its EPS estimate, but revenue topped $2B for the third straight quarter and adjusted operating margin reached 52.6%.
Industrial and commodity companies reported resilient operations, yet Union Pacific (UNP), Valero Energy (VLO), and Newmont (NEM) all traded lower.
Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific (TMO) reported third-quarter 2026 EPS of $6.68, above the $6.40 estimate. The result came from a diversified scientific services business that spans life sciences solutions, analytical instruments, diagnostics, laboratory products, and biopharma services.
Management described the quarter as another excellent period and pointed to execution through its PPI Business System. The company also said it remained well-positioned to deliver an excellent 2026. That tone supports the growth-catalyst case, although the market response was muted. TMO traded at $673.82, down 0.40%, in the quoted session.
Analysts held a Buy consensus, with 36 Buy ratings and 7 Holds. The combination of an EPS beat, a positive full-year message, and a modest decline shows that investors demanded more than a clean quarterly surprise. At nearly $674 per share, market psychology appeared more selective than celebratory.
Moody’s (MCO)
Moody’s (MCO) reported third-quarter adjusted EPS of $4.14, below the $4.25 estimate. However, revenue topped $2B for the third straight quarter. Overall rated issuance declined 2%, yet the company produced a 52.6% adjusted operating margin and 6% adjusted diluted EPS growth.
The operating mix was uneven. Moody’s Investors Service delivered its second-strongest third quarter on record, helped by strong financing activity tied to artificial intelligence infrastructure. Leverage finance activity moderated against a strong prior-year comparison. Meanwhile, Moody’s Analytics posted approximately 8% annual recurring revenue growth, matching its high-single-digit outlook.
MCO fell 1.55% to $483.45, a reasonable response to the EPS miss despite durable revenue and margin figures. Analysts still carried a Buy consensus, with 18 Buys, 13 Holds, and 1 Sell. The result reinforces the value-investor view that a strong franchise can remain attractive, but a premium valuation leaves little room for execution slips.
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Kinder Morgan (KMI) reported third-quarter EPS of $0.35, beating the $0.3206 estimate. Management said results exceeded both the comparable 2025 period and the company’s budget for 2026.
The bigger story was expansion. Kinder Morgan added one of the largest quarterly increases in its project backlog in company history. Its U.S. natural gas project backlog reached a record level. Management also cited Shell’s projection for global LNG demand to reach nearly 750 million tons per year by 2050, a 65% increase from 2025, and pointed to expected North American electricity demand growth of 225 to 245 gigawatts by 2035.
KMI rose 2.11% to $34.43, making it the strongest market reaction among the focus stocks. Analysts held a Buy consensus, with 18 Buys, 15 Holds, and 1 Sell. The gain reflects a market willing to reward visible infrastructure growth when earnings, backlog, and long-term demand support point in the same direction.
Union Pacific (UNP)
Union Pacific (UNP) reported third-quarter EPS of $3.53, above the $3.47 estimate. The railroad’s operating context included 2.31B gross ton miles moved on the day before the October 22 earnings call.
Chief Executive Officer Jim Vena emphasized that safety remained the foundation of the railroad’s strategy. He also said the company was not changing its key operating pillars. That message points to execution and network reliability rather than a dramatic change in the business model.
UNP traded at $292.87, down 1.75%, despite the EPS beat. Analysts maintained a Buy consensus, with 28 Buys, 17 Holds, 1 Strong Buy, and 1 Sell. The reaction shows how a modest earnings beat can struggle to overcome a market focused on operating momentum and the next stage of railroad performance.
Western Digital (WDC)
Western Digital (WDC) delivered one of the week’s strongest operating reports. Fiscal first-quarter EPS reached $4.64, above the $4.11 estimate. Revenue grew 55% year over year, while gross margin reached 58% and operating margin reached 49%. EPS increased 161%, and free cash flow reached $1.4B.
Demand extended beyond traditional cloud and hyperscale customers. Management cited enterprise applications, neo-cloud companies, and AI frontier labs as newer sources of storage demand. Customers are also making longer-term infrastructure investments and extending planning horizons into the next decade.
The stock reaction was the week’s clearest disconnect between fundamentals and price. WDC fell 2.97% to $343.67 on volume of 13.9 million shares, above its 8.17 million average. Analysts maintained a Buy consensus, with 44 Buys, 16 Holds, and 1 Sell. The figures support a strong growth-catalyst narrative, but the decline shows that investors can sell even when the operating dashboard is flashing green.
Valero Energy (VLO)
Valero Energy (VLO) reported third-quarter EPS of $23.90, beating the $21.17 estimate. The company said its teams ran refineries at near-record utilization levels while tight product inventories and market volatility continued from the prior quarter.
Valero’s ethanol segment also reached a quarterly production record. Management remained constructive on the long-term outlook, citing low product inventories, limited excess refining capacity, and continued transportation fuel demand. Those factors give the refining business a favorable operating backdrop, although earnings remain tied to market conditions.
VLO fell 1.64% to $419.28. Analysts maintained a Buy consensus, with 19 Buys, 16 Holds, 2 Sells, and 1 Strong Buy. The lower share price after a sizeable EPS beat suggests that investors treated the quarter as strong but cyclical, rather than as proof of a permanently higher earnings base.
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Newmont (NEM) reported third-quarter adjusted EPS of $2.20, above the $1.96 estimate. The company produced approximately 1.3 million ounces of gold, 23,000 tons of copper, and 11 million ounces of silver.
The quarter also generated $1.9B in free cash flow, while adjusted net income per share reached a third-quarter record. Newmont returned approximately $1.9B to shareholders through its dividend and share repurchases. Since launching its repurchase program in February 2024, the company has bought more than 115 million shares, equal to approximately 10% of shares outstanding.
Management improved full-year cost guidance and remained on track for its production and capital guidance. It also announced an amended Nevada Gold Mines joint venture agreement that adds the Fourmile, Fiber Line, and Myke properties. Despite those positives, NEM fell 4.59% to $108.87. Analysts held a Buy consensus, with 27 Buys and 10 Holds. The move suggests that a strong gold miner can still face profit-taking after a large run.
Comcast (CMCSA)
Comcast (CMCSA) reported third-quarter EPS of $1.07, above the $0.986 estimate. The company said its separation of NBCUniversal and Sky remained on track for completion by the middle of next year.
The cable business faced aggressive fixed-wireless competition, elevated fiber construction, and promotional pricing. Comcast is changing its pricing, packaging, and customer proposition. Management acknowledged near-term financial pressure from those investments, while presenting them as necessary to strengthen customer relationships and support a return to growth.
CMCSA fell 0.66% to $22.69. Analysts retained a Buy consensus, with 34 Buys, 24 Holds, and 3 Sells. The muted decline reflects a split investor view: the EPS beat offered support, but broadband competition and restructuring work kept the stock from gaining traction.
American Express (AXP)
American Express (AXP) reported third-quarter adjusted EPS of $4.68, above the $4.50 estimate. Reported EPS was $5.42, while revenue reached a record $20B, up 9%.
The company reaffirmed its 10% revenue growth guidance and raised full-year EPS guidance to $18.30 to $18.60 on a reported basis. Adjusted EPS guidance increased to $17.60 to $17.90. The quarter included the closing of the Global Business Travel transaction, with part of the gain flowing to earnings and part used for restructuring.
AXP also recorded legal expenses connected to a civil money penalty from the Office of the Comptroller of the Currency. Management said the penalty did not affect 2026 guidance, while remediation costs were not expected to affect 2027 guidance.
Despite record revenue and higher guidance, AXP declined 3.73% to $313.03 on volume of 4.02 million shares, above its 2.95 million average. Analysts held a Hold consensus, with 23 Buys, 30 Holds, and 4 Sells. The reaction captures the market’s focus on quality of earnings, legal costs, and valuation rather than on the headline beat alone.
Wrap-Up
This week’s earnings recap favored operating strength over simple beat counts. WDC, AXP, KMI, and NEM showed powerful cash generation or demand trends, yet market reactions depended on guidance, competition, cyclicality, and valuation.
KMI earned the clearest reward because its EPS beat arrived with a record project backlog. By contrast, the declines in WDC, NEM, and AXP show that investors still demand proof that strong quarterly numbers can compound into durable shareholder value.
▌Common Questions
Frequently asked questions
+Why did stocks fall even when companies beat earnings estimates?
Investors often look beyond EPS beats and focus on valuation, guidance, margins, and whether results change the long-term growth outlook. In this week’s reports, several companies posted strong operating numbers but still declined because expectations were already high.
+Why did Kinder Morgan stock rise after earnings?
Kinder Morgan beat EPS estimates and highlighted a record U.S. natural gas project backlog, which signaled visible future growth. The market also responded to management’s upbeat view on LNG and power demand trends.
+What happened to Western Digital after its earnings report?
Western Digital reported 55% revenue growth, a 161% EPS increase, and $1.4 billion in free cash flow, but the stock still fell. That reaction suggests investors were not fully rewarded by the results despite the strong operating improvement.
+Did American Express raise guidance after earnings?
Yes, American Express posted record revenue and raised its full-year EPS guidance. Even so, the stock declined, showing that the market was more focused on expectations and valuation than on the headline beat alone.
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