Stocks finish flat after blockbuster jobs report

Cisco beat Wall Street expectations for sales and earnings in its fiscal second-quarter results, which it released after the close of trading Wednesday.

Shares slid 7% in the after-hours session. A lighter-than-expected forecast for fiscal third-quarter profit margins may have played a role.

For the fiscal second quarter of 2026, the computer networking equipment giant reported:

• Non-GAAP earnings per share of $1.04 vs. the $1.02 expected by Wall Street analysts, according to FactSet.

• Sales of $15.35 billion vs. the $15.11 billion consensus expectation.

• AI infrastructure orders from hyperscalers of $2.1 billion vs. $1.3 billion in the previous quarter.

• Revenue guidance for fiscal Q3 of between $15.4 billion and $15.6 billion vs. $15.19 billion consensus estimate. 

• Adjusted gross margin guidance for fiscal Q3 of 65.5% to 66.5%, compared with analysts’ forecasts for 68.2%.

• Fiscal year 2026 sales guidance of $61.2 billion to $61.7 billion vs. previous guidance of between $60.2 billion and $61.0 billion.

Along with other companies like Lumentum, Corning, and new S&P 500 member Ciena, which provide things like the wiring and networking equipment needed to connect server racks, Cisco shares have had a strong start to 2026 as the AI data center boom continues to roll. 

Through the end of trading on Wednesday they were up 11% for the year, compared to a 1.4% gain for the S&P 500.

This is a developing story.

McDonald’s reported Q4 results on Wednesday that beat Wall Street’s expectations, which the company attributes to its “value leadership.”

For the last three months of 2025, the fast-food giant reported:

• Adjusted earnings per share of $3.12, compared to the $3.05 analysts polled by FactSet were expecting.

• Revenue of $7 billion, higher than the $6.8 billion analysts were penciling in.

• Global comparable-store sales growth of 5.7%, compared to the 3.9% growth analysts were expecting. In the US, comparable sales grew 6.8% versus the 5.4% that was expected. The company said this was “driven by positive check and guest count growth primarily from successful marketing promotions.”

McDonald’s has emphasized discounts and promotions, such as its $5 meal deals. “McDonald’s value leadership is working,” CEO Chris Kempczinski said in a statement.

Shares were little changed in after-hours trading.

Gilead rose more than 5% on Wednesday after it reported quarterly earnings and revenue that beat Wall Street estimates, driven by sales of its HIV drugs.

For the last three months of 2025, Gilead reported:

• Adjusted earnings per share of $1.86, compared to the $1.81 the Street was expecting.

• $7.9 billion in revenue, more than the $7.6 billion the Street was penciling in. Late last year the company began selling Yeztugo, a twice-yearly HIV prevention shot. CEO Daniel O’Day told analysts it “has already exceeded our coverage goals and is rapidly gaining market share.”

For the full year in 2026, the company expects:

• Adjusted earnings per share of $8.45 to $8.85, compared to the $8.79 analysts forecast.

• Revenue of $29.6 billion to $30 billion, compared to the $29.92 billion the Street was expecting. The company anticipates Yeztugo will contribute $800 million in revenue in 2026.