Amazon beats on Q2 earnings, but Q3 profit forecast comes in light; capex goes sky-high

Nvidia is rebounding from its worst five-session decline since April this morning after Hon Hai Technology Group posted massive sales growth for January, up 35.5% year-on-year.

Hon Hai, more commonly known as Foxconn, indicated that cloud and networking products division (which includes servers for data centers) was its top source of sales growth.

“Shipments of AI racks continue to increase,” the electronics manufacturer said. “The seasonal performance for the current quarter is expected to be better than the range of the past five years.”

Near the start of 2026, Micron soared after Hon Hai announced better than expected Q4 sales.

Cigna reported earnings results that beat Wall Street estimates in Q4 but delivered underwhelming guidance for the year ahead.

For the last three months of 2025, Cigna reported:

• Adjusted earnings per share of $8.08, compared to the $7.88 analysts polled by FactSet were expecting.

• Revenue of $72.4 billion, compared to the $70.3 billion the Street was penciling in.

For the full-year 2026, Cigna expects:

• Annual adjusted earnings per share of at least $30.25, compared to the $30.30 analyst were expecting.

• Annual revenues of about $280 billion, compared to the $285.8 billion analysts had penciled in.

• Its medical cost ratio to sit between 83.7% to 84.7%, where analysts had expected 83.9%.

Health insurers have been under pressure for the past year amid rising health costs, though Cigna has been outperforming its peers.

Snap shares are up 7% in premarket trading on Thursday after the owner of the popular social media app reported better-than-expected sales and earnings in its Q4 results, released Wednesday evening.

For the quarter ending December 31, 2025, the company reported:

• Revenue of $1.72 billion, marginally above analyst estimates of $1.702 billion (consensus compiled by Bloomberg).

• Adjusted EPS of $0.183, topping expectations of $0.153 by 20%.

“Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion,” said CEO Evan Spiegel in a press release.

Investors seem to be pleased about the increased focus on the bottom line, with topline guidance actually coming in a little softer: Snap expects Q1 revenue to be between $1.5 billion and $1.53 billion, marginally below consensus forecasts for $1.526 billion at its midpoint.

However, the company also noted that the guidance excludes potential revenue from any deal with Perplexity AI’s answer engine in its app — a tie-up which would offer Snap $400 million a year in cash and equity — as the two parties are “yet to mutually agree on a path to a broader roll out.”

The bad news was that the company’s user base shrunk, with global daily active users, long a key metric for the social media company, dropping to 474 million from 477 million last quarter, lower than the previous quarter and analysts’ projections. In a letter to investors, the company addressed the slowdown as the result of a broader strategy change announced last year to focus on “profitable growth” that included plans to “substantially reduce our community growth marketing investments.” Snap also detailed its plans to invest in higher-margin ad products like Sponsored Snaps, and doubling down on its subscription business to boost its bottom line.

Snap has also been expanding into wearables and ARs in recent years, including creating a standalone subsidiary dedicated for its Specs AR glasses in January.