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# Beta Finch Podcast Script: Schwab Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we dig into the numbers that matter. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Charles Schwab's blockbuster Q1 2026 results, and folks, this was a quarter that had everything - record growth, AI innovation, and some serious market volatility.

**ALEX:** Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Absolutely. Now Alex, let's start with the headline numbers because Schwab really delivered this quarter.

**ALEX:** They absolutely crushed it, Jordan. Revenue hit a record $6.5 billion, up 16% year-over-year. But here's the kicker - earnings per share came in at $1.43, which is up almost 40% from last year. That's not just beating expectations, that's demolishing them.

**JORDAN:** And the client growth story is equally impressive. They added 1.3 million new brokerage accounts, pulling in $158 billion in core net new assets. CEO Rick Wurster mentioned that March was their second-highest month for net new assets ever, behind only December 2021. Remember that period?

**ALEX:** Oh yeah, the meme stock frenzy. But this feels different - more sustainable. What really caught my attention was the breadth of engagement. They supported nearly 10 million daily average trades, which is a record. But here's the interesting part - revenue per trade actually went down.

**JORDAN:** That's a fascinating dynamic, and Wurster had a really insightful explanation during the Q&A. He said their traders are feeling more uncertain about geopolitics and the economy, so they're taking smaller positions and holding them for shorter durations. More frequent trading, but smaller dollar amounts per trade.

**ALEX:** It's like the market's anxiety manifesting in real trading behavior. Speaking of innovation, Schwab is making some bold moves. They're launching spot crypto trading - Bitcoin and Ethereum to start - with competitive pricing at 75 basis points per trade.

**JORDAN:** And they're not just jumping on the crypto bandwagon. This is classic Schwab - they're doing it "the Schwab way" with education, research, and risk management built in. Plus, they closed the Forge acquisition, which gives clients access to pre-IPO shares. That's a big deal for expanding their private market offerings.

**ALEX:** But the real story here might be AI. Wurster spent significant time detailing how AI is becoming integral to their strategy. They've equipped all 33,000 employees with AI tools, and they're rolling out customer-facing AI assistants starting this summer.

**JORDAN:** The AI strategy is particularly clever. They're using it both for operational efficiency - like their Knowledge Assistant that helps phone reps answer complex questions instantly - and for client engagement through personalized portfolio insights. This isn't just tech for tech's sake.

**ALEX:** Right, and there's a revenue angle too. They mentioned that over half their clients are willing to pay for AI financial tools. That could open up new fee-based revenue streams beyond their traditional model.

**JORDAN:** Let's talk about the elephant in the room - cash management. There's been industry chatter about JPMorgan rolling out tools to reduce cash sweep friction. How did Schwab address this?

**ALEX:** Wurster was pretty confident in their response. He emphasized that clients have "intentionally allocated" their cash and that Schwab already makes it incredibly easy to optimize cash placement. They're launching their own AI agent capabilities this summer, but he seemed to view this as an

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**Beta Finch Podcast Script - Schwab Q4 2025 Earnings**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we cut through the noise to bring you the market-moving insights that matter. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Charles Schwab's Q4 2025 earnings call, and wow - this was a record-breaking quarter for the brokerage giant.

**ALEX:** Before we jump in, just a quick note - this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Absolutely. Now Alex, let's talk numbers because Schwab really delivered some impressive results here.

**ALEX:** They sure did. Full-year 2025 was nothing short of spectacular. Total net revenues hit a record $23.9 billion - that's up 22% year-over-year. But here's the kicker - adjusted earnings per share jumped 50% to $4.87, which actually exceeded their own guidance range.

**JORDAN:** That earnings growth is remarkable, especially when you consider the challenging environment brokerages have faced. What drove this performance?

**ALEX:** It's really a three-pronged story. First, they attracted $519 billion in core net new assets - a 42% increase over 2024. Second, client engagement was through the roof with 1.9 billion trades executed. And third, their diversification strategy is paying off big time.

**JORDAN:** Let's unpack that diversification piece because I think that's what makes Schwab's story so compelling right now. They're not just a traditional brokerage anymore.

**ALEX:** Exactly. Their managed investing net flows grew 36% year-over-year, hitting nearly $70 billion. Bank lending balances reached an all-time high of $58 billion. They're essentially becoming a one-stop financial shop, and clients are responding. CEO Rick Wurster mentioned that only 5% of retail households currently use their managed investing solutions, but 31% say they're willing to pay for advice.

**JORDAN:** That's a massive opportunity gap. And speaking of opportunities, their lending business caught my attention. Pledged asset line balances nearly doubled since 2023, but penetration rates are still really low - only 9% of ultra-high net worth retail clients have a PAL.

**ALEX:** Right, and that low penetration is actually good news for future growth. CFO Mike Verdeschi highlighted they've streamlined the PAL experience to about a day for most clients, with nearly three-quarters completed in less than 24 hours. With spreads north of 100 basis points, it's a win-win for clients and shareholders.

**JORDAN:** Now let's talk about their 2026 outlook because the guidance was pretty bullish. They're projecting total revenue growth of 9.5% to 10.5%, with adjusted earnings potentially reaching $5.70 to $5.80 per share.

**ALEX:** That would represent upper-teens earnings growth, which is impressive. What I found interesting was their assumption of a slight pullback in trading volumes to 7.4 million daily average trades, down from the record levels they saw in 2025. They're being conservative there, which I appreciate.

**JORDAN:** Speaking of trading, there was a fascinating discussion about prediction markets during the Q&A. Rick Wurster was pretty clear - they're open to financial prediction markets if there's client demand, but they're steering clear of sports betting.

**ALEX:** I thought his comment was telling: "Less than 5% of clients that put money into gambling apps leave with more money than they put in." That's a stark contrast to Schwab clients hitting all-time record wealth levels. It shows they're staying true to their mission of helping clients build long-term wealth.

**JORDAN:** Another strategic move that caught my eye was their ac

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into Starbucks' fiscal Q3 2026 results, and Jordan, this one's got some real momentum behind it.

JORDAN: It really does, Alex. But before we get into all the green apron talk and coffee comps, quick disclaimer for everyone tuning in: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

ALEX: Well said. Okay, let's get into it. Starbucks posted its fourth consecutive quarter of positive global comps — global comps up 7.9%, which actually accelerated sequentially from Q2. U.S. comps came in at 7.9% too, with a healthy split between transactions up 4.2% and ticket up 3.6%.

JORDAN: And that composition really matters. It's not just price hikes doing the work — pricing only added less than a point to ticket growth. This is genuine traffic and spend growth, which is a much healthier story than an earnings beat propped up by inflation.

ALEX: Right, and the profitability story is where things get really interesting. Consolidated operating margin expanded 430 basis points year-over-year to 14.4%. EPS jumped 70% year-over-year to $0.85.

JORDAN: Now, a chunk of that margin story includes some noise — tariff refunds that offset tariffs incurred earlier in the fiscal year. CFO Cathy Smith was upfront about that, pointing analysts to the year-to-date COGS rate of 32.3% as the more "normalized" number. But even stripping out those refunds, North America margin still expanded over 100 basis points year-over-year. That's the real signal — the underlying operating model is actually getting better, not just benefiting from a one-time tailwind.

ALEX: Big milestone too — North America operating margin grew year-over-year for the first time since Q1 fiscal 2024.

JORDAN: That's a notable inflection point. It tells you the "Back to Starbucks" plan under CEO Brian Niccol is finally translating into bottom-line results, not just top-line traffic.

ALEX: Speaking of the plan, let's talk Green Apron Service — this is basically the operational backbone of the turnaround. It's been a year since launch, and two-thirds of North America company-operated stores are now hitting four or more "shots" on their internal ranking system, up over 40 points since launch.

JORDAN: And food availability is now near 99%, up about 10 points from a year ago. Store leader retention is up too — leaders who've been in place two-plus years rose about 7 points year-over-year. That stability piece is easy to overlook, but management specifically called out that it correlates strongly with store performance.

ALEX: They also rolled out a new incentive — the Best of Starbucks Reward — letting eligible partners earn up to $300 a quarter for hitting performance goals. A nice retention lever.

JORDAN: On the brand side, some striking numbers: brand affinity, consideration, and purchase intent all hit five-year highs. Starbucks Rewards now has 35.8 million 90-day active U.S. members, and Refreshers delivered double-digit revenue growth in the U.S. Management's clearly leaning into that platform — they're even testing a sparkling "Spritzer" version.

ALEX: The store uplift program is another one to watch — they crossed 1,000 remodeled stores in North America, hit their full-year goal early, and now they're targeting at least 1,500 by the end of fiscal 2026, accelerating further into 2027. Cathy Smith mentioned these average around $150,000 each and get done overnight without taking stores offline.

JORDAN: Efficient capital use, basically — cheap relative to a full remodel, and the early data shows transaction lift across all dayparts and formats. Meanwhile, internationally, the China busin

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# Beta Finch Podcast Script: Starbucks Q2 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Starbucks' second quarter 2026 results, and folks, this is a story about a turnaround that's actually working.

**ALEX:** Before we jump in, I need to share our standard disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Right, and what a quarter to analyze! Starbucks just delivered something they haven't done in over two years - simultaneous top and bottom line growth.

**ALEX:** The numbers are pretty impressive. Revenue hit $9.5 billion, up 9% year-over-year. But Jordan, what really caught my attention was that earnings per share jump - $0.50, up 22% from last year.

**JORDAN:** Exactly! And CEO Brian Niccol was clearly excited about this milestone. He called it "a turn in our turnaround," which is quite the statement. The global comparable sales growth of 6% was driven by what he described as "terrific performance across the business, especially in the U.S."

**ALEX:** Let's break down those U.S. numbers because they're really telling. U.S. comps accelerated to over 7%, with more than 4 percentage points coming from transaction growth. Niccol mentioned they haven't seen this kind of transaction strength in three years.

**JORDAN:** That transaction growth is huge, Alex. It means people are actually visiting more, not just spending more per visit. And here's what's fascinating - they're seeing broad-based growth across all income levels and age demographics. In this economic environment, that's remarkable.

**ALEX:** Speaking of remarkable, let's talk about their "Back to Starbucks" strategy. Niccol really emphasized their "Green Apron Service" model. Jordan, can you explain what they're tracking here?

**JORDAN:** Sure! They use something called a "Grow scorecard" that tracks customer comments, throughput, staffing, and food safety. They measure stores on a 5-shot system, and since launching this in October, they've seen over a 30 percentage point increase in stores delivering 4 or more shots. But here's the kicker - about 40% of stores still aren't at that 4-shot level, so there's room to grow.

**ALEX:** That's a great operational insight. And internationally, all top 10 markets, including China, posted positive comparable sales for the first time in 9 quarters. Though there's a big strategic shift happening with China, isn't there?

**JORDAN:** Absolutely. They completed their transaction with Boyu Capital, transitioning China to a joint venture model. CFO Catherine Smith mentioned this deal is valued at more than $13 billion, and Starbucks received about $3.1 billion in cash proceeds. Starting in Q3, China will be deconsolidated from their financials.

**ALEX:** Now let's talk guidance, because management got pretty confident here. They raised their global comparable sales growth guidance to "5% or better" and boosted their EPS range to $2.25 to $2.45.

**JORDAN:** Right, and when analysts pressed on why the EPS raise wasn't even higher given the strong performance, Smith was candid about macro headwinds. She mentioned elevated coffee prices - almost a dollar per pound year-over-year - and tariff impacts, though both are expected to moderate in the back half of the year.

**ALEX:** One thing that jumped out in the Q&A was the discussion about their rewards program. They just redesigned it in March, and typically that causes some disruption. But Niccol said membership actually grew, which is unusual for that quarter.

**JORDAN:** That's impressive execution. The new program has three tiers - green, gol

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and I'm here with my co-host Jordan to dive into Starbucks' first quarter 2026 results. Jordan, this feels like a real turnaround story unfolding.

JORDAN: Absolutely, Alex. But before we get into the details, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

ALEX: Thanks for that, Jordan. Now, let's talk about what CEO Brian Niccol is calling the "Back to Starbucks" plan. The headline here is that they're finally seeing transaction-led growth again. Revenue hit $9.9 billion, up 5%, with global comparable store sales growing 4%.

JORDAN: What really caught my attention was the U.S. performance. They had 4% comp growth with 3% transaction growth - and this is the first time in eight quarters that their Starbucks Rewards transactions grew year-over-year. That's huge because it means people are actually coming back to the stores more frequently.

ALEX: Right, and it wasn't just rewards members. Non-rewards customers grew transactions even faster than rewards members. Niccol made a point about this - he said when he first arrived, non-rewards customers had been declining consistently, which is never healthy for a business.

JORDAN: The interesting thing is how they're driving this growth. It's not through discounting - they specifically mentioned that value perception scores held strong paired with average ticket growth. They're creating value through what they call the "Green Apron service model" and menu innovation, not price cuts.

ALEX: Let's talk about that Green Apron model because it seems to be the foundation of everything. Essentially, they've invested heavily in labor - bigger rosters, better training, new customer service standards. CFO Catherine Smith mentioned they're anniversarying these investments by Q4, which should help margins going forward.

JORDAN: The proof is in the pudding too. Those 650 pilot stores that got the full Green Apron treatment are still outperforming the rest of the fleet by about 200 basis points in comp growth. And get this - they're hitting their four-minute service targets even with meaningful transaction growth. That's operational excellence.

ALEX: Now, the earnings picture is more complicated. EPS came in at $0.56, down 19% year-over-year. Operating margins contracted 180 basis points to 10.1%. But management is basically saying "top line first, then earnings will follow."

JORDAN: Exactly. And they're not just hoping margins improve - they have a concrete plan. Niccol announced a $2 billion cost efficiency program over the next two years covering procurement, technology, and general administrative functions. Plus, they expect coffee prices and tariff pressures to peak in Q2 and find relief in the back half of the year.

ALEX: The guidance for fiscal 2026 reflects this cautious optimism. They're projecting 3% or better global comp sales growth, but EPS guidance of $2.15 to $2.40 is pretty wide. When an analyst asked about scenarios for the high and low end, Niccol basically said it comes down to maintaining comp performance.

JORDAN: Speaking of guidance, there's a big strategic shift happening in China. They're forming a joint venture with Boyu Capital where Boyu gets up to 60% of retail operations and Starbucks keeps 40% plus the brand and IP licensing. This could be about 40 basis points accretive to consolidated margins annually.

ALEX: That China move is fascinating because it shows they're willing to give up control for better local execution. China had 7% comp growth in Q1 - their third consecutive quarter of growth. Sometimes the best strategy is partnering with someone who

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown! Today we're diving into RTX's second quarter 2026 results, and this one's got a lot of moving pieces — defense budgets, GTF engines, international demand, the works. Before we get into it though, quick disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: And Alex, this was a genuinely strong print. Adjusted sales of $24.7 billion, up 16% organically. Adjusted EPS of $1.89, up 21% year-over-year. Free cash flow of $2.9 billion. Pretty much across the board, beat and raise.

ALEX: Right, and the backlog number really jumped out at me — $289 billion, a record, up 22% year-over-year. Raytheon alone booked nearly $20 billion in awards this quarter, giving them a book-to-bill ratio of 2.4. That's just a massive amount of future work stacking up.

JORDAN: What's interesting is where that demand is coming from. Over $5 billion of it was GEM-T Patriot effectors, largely international, plus the first domestic GEM-T production order in 30 years. And get this — 48% of Raytheon's backlog is now international, up four points year-over-year. Europe alone contributed over $7 billion in the first half.

ALEX: That NATO spending story is really showing up in the numbers. And CEO Chris Calio flagged something big on the domestic side too — the 2027 base budget request is around $1.1 trillion, roughly a 25% increase year-over-year, with real money earmarked for RTX priority programs like Tomahawk and LTAMDS.

JORDAN: Let's talk guidance, because they raised it meaningfully. Full-year adjusted sales now expected between $95 and $96 billion, up from $92.5 to $93.5 billion previously. EPS guidance moved up to $7.10-$7.25, from $6.70-$6.90. And free cash flow guidance ticked up to $8.5-$8.75 billion.

ALEX: Breaking that down by segment — Collins Aerospace sales were up 13% organically, driven by strength across commercial OE, aftermarket, and defense. Pratt & Whitney was up 17% organically, helped by a huge 25% jump in commercial aftermarket. And Raytheon posted 18% organic growth with margins expanding a full 100 basis points to 12.6%.

JORDAN: That Pratt aftermarket story is worth unpacking a bit. Remember, last year's Q2 had a four-week work stoppage, so there's some catch-up dynamic at play. But the underlying trend is real — GTF engine AOGs, meaning aircraft grounded waiting on engines, are down 25% year-to-date. MRO output was up over 40%, turnaround times down 23%. They're clearly getting that fleet management situation under control.

ALEX: And on the innovation side, a few milestones stood out to me. Pratt got certification for the GTF Advantage engine and started deliveries to Airbus — that's supposed to double time-on-wing performance. Collins got selected to deliver mission autonomy software for the Air Force's Collaborative Combat Aircraft program, which feels like a meaningful foothold in next-gen fighter development.

JORDAN: The Q&A had some good color too. One analyst pushed on those defense "framework agreements" — basically pre-negotiated deals that haven't converted into firm, backlog-counted contracts yet. Calio was pretty candid that those conversations are ongoing and productive, but the real unlock is getting multi-year funding commitments so suppliers will actually invest in ramping capacity.

ALEX: There was also a great exchange about Collins margins. CFO Neil Mitchill talked about a "big step up" expected in the second half — about 60% from volume drop-through, 40% from structural cost-cutting actions like consolidating operations and reducing overhead layers. Long-term, they're still eyeing that 19-20% margin range for C

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# Beta Finch Podcast Script: RTX Q1 2026 Earnings Breakdown

**ALEX:** Welcome back to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and I'm here with my co-host Jordan to dive into RTX's first quarter 2026 results. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex. RTX, the aerospace and defense giant formerly known as Raytheon Technologies, just delivered some impressive Q1 numbers. We're talking about a company that's riding high on both commercial aerospace recovery and defense spending surge. Should be a fascinating discussion.

**ALEX:** Absolutely. Let's start with the headline numbers because they're pretty striking. RTX posted adjusted sales of $22.1 billion - that's up 10% organically year-over-year. Even more impressive, adjusted earnings per share came in at $1.78, up a hefty 21% from last year.

**JORDAN:** And don't forget that record backlog, Alex. We're looking at $271 billion in backlog, up 25% year-over-year. That's a massive number that really speaks to the long-term demand they're seeing across both commercial and defense segments.

**ALEX:** Right, and CEO Christopher Calio was pretty clear about what's driving this growth. They're seeing strength across all three channels - commercial OE up 6%, commercial aftermarket up 14%, and defense up 9%. But Jordan, what really caught my attention was how confident they were about raising guidance.

**JORDAN:** Exactly. They bumped up their full-year adjusted sales outlook by $500 million to a range of $92.5 to $93.5 billion. And they raised EPS guidance by 10 cents on both ends - now expecting $6.70 to $6.90 for the year. That's management basically saying "we see sustained momentum ahead."

**ALEX:** Let's break this down by segment because each business has its own story. Starting with Raytheon - their defense segment - this was really the star of the show, wasn't it?

**JORDAN:** Oh absolutely. Raytheon posted $6.9 billion in sales, up 10%, with operating profit jumping $167 million year-over-year. But here's what's really exciting - they booked $6.6 billion in awards during the quarter. We're talking major contracts like over $600 million to supply the Netherlands with Patriot equipment.

**ALEX:** And those framework agreements Calio mentioned - these are game-changers. Five landmark agreements with the Department of Defense for critical munitions including Tomahawk, AMRAAM, and Standard Missiles. Once finalized, these provide long-term visibility that lets RTX and their suppliers invest in ramping production well above existing rates.

**JORDAN:** The geopolitical backdrop here is crucial, Alex. With ongoing conflicts and tensions globally, there's this urgent need for munitions depth and integrated air defense systems. RTX is perfectly positioned with their battle-tested systems that form the backbone of U.S. and allied defense architectures.

**ALEX:** Now let's talk about their commercial aerospace business, particularly the GTF engine program at Pratt & Whitney. This has been a challenging story, but there are some positive developments.

**JORDAN:** The fleet management plan remains on track, which is reassuring. AOGs - that's aircraft on ground - were down about 15% compared to year-end. The key driver was MRO output on the PW1100, which jumped 23% year-over-year. They're making real progress working through the powder metal issues that have plagued this program.

**ALEX:** And they achieved a significant milestone with aircraft certification of the GTF Advantage. This incorporates a decade of learning and should deliver better performance and time on wing for customers. The "Hot Section Plus" retr

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**Beta Finch Podcast Script: RTX Q4 2025 Earnings**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we decode corporate calls so you don't have to. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into RTX's fourth quarter 2025 results - and wow, what a call this was.

**ALEX:** Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Absolutely. Now Alex, RTX just delivered some seriously impressive numbers. Walk us through the highlights.

**ALEX:** The numbers are pretty staggering, Jordan. Full year adjusted sales hit $88.6 billion - that's up $9 billion year-over-year, or 11% organic growth. But here's what really caught my eye: their backlog reached a record $268 billion. That's up 23% from last year.

**JORDAN:** A quarter of a trillion dollars in backlog - that's just mind-boggling. And their free cash flow performance was equally impressive, right?

**ALEX:** Exactly. Free cash flow came in at $7.9 billion for the year, up $3.4 billion from 2024. CEO Chris Calio seemed pretty confident about their momentum, pointing to what he called "durable demand" across both commercial and defense segments.

**JORDAN:** Speaking of segments, let's break down where this growth is coming from. Commercial OE was up 10%, commercial aftermarket up 18%, and defense up 8%. But I think the real story here is what's happening with their defense business, especially given the current geopolitical environment.

**ALEX:** That's a great point. Raytheon, their defense segment, had some massive contract wins. They booked $1.2 billion to supply Spain with Patriot air defense systems, another $1.2 billion for Tamir missile production, and get this - their international backlog mix is now 47%, up from 44% last year.

**JORDAN:** And the timing couldn't be better. Calio mentioned that NATO allies are committed to increasing defense spending from 2% of GDP to 3.5% by 2035. That's a huge tailwind for companies like RTX.

**ALEX:** But let's not forget about the elephant in the room - the GTF engine issues that have been plaguing Pratt & Whitney. How are they handling that?

**JORDAN:** Actually, this was one of the more encouraging parts of the call. They reported that aircraft on ground - that's AOGs - declined in Q4 and are down over 20% from 2025 highs. Their maintenance and repair output was up 39% in the fourth quarter alone.

**ALEX:** That's a significant improvement. And they're expecting similar MRO growth rates in 2026. Plus, they got EU certification for their GTF Advantage engine and expect aircraft certification soon.

**JORDAN:** Now let's talk guidance, because this is where things get really interesting for 2026. They're projecting sales between $92-93 billion, which represents 5-6% organic growth.

**ALEX:** And EPS guidance of $6.60 to $6.80 - that's solid growth on top of their $6.29 in 2025. But what really stood out to me was their free cash flow guidance of $8.25 to $8.75 billion. They're basically saying they can maintain this cash generation machine while investing heavily in capacity.

**JORDAN:** Speaking of investments, they're planning to spend $10.5 billion in CapEx and R&D in 2026, including $3.1 billion in CapEx alone. That's a $500 million increase from last year. They're really betting big on future demand.

**ALEX:** And then we got to the Q&A section, which was fascinating. There were some pointed questions about the new administration's defense policies and expectations for contractors.

**JORDAN:** Right, CEO Calio was pretty diplomatic but direct. He acknowledged the "frustration" from the Department of Def

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown! Today we're digging into Regeneron's second quarter 2026 results, and Jordan, this was a big one.

JORDAN: A really strong quarter across the board. But first, the standard note — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

ALEX: Right. So let's set the scene — before diving into numbers, the call opened with a tribute to longtime board member Art Ryan, who passed away this week. He'd been on Regeneron's board for over two decades, previously ran Prudential. A nice moment of the human side of these calls.

JORDAN: Definitely worth noting. Now, onto the business — total revenue was up 17% year-over-year to $4.3 billion, and non-GAAP EPS grew 11% to $14.29. That's their second straight quarter of double-digit growth on both lines.

ALEX: And the headline here is really the trio of record quarters — Dupixent, EYLEA HD, and Libtayo all hit all-time highs for quarterly sales.

JORDAN: Let's start with Dupixent since it's the big one. Global net sales hit $6 billion, up 38% on a constant currency basis. U.S. sales alone grew 42% to $4.6 billion. That's a drug now serving over 1.5 million patients across nine approved indications.

ALEX: Nine! That's dermatology, asthma, nasal polyps, COPD, eosinophilic esophagitis — it just keeps expanding. And here's something investors should watch: Regeneron fully repaid its $3.1 billion development balance owed to Sanofi. That balance had been suppressing collaboration revenue — about $930 million lower in 2025 and $530 million in the first half of this year.

JORDAN: So starting in Q3, Regeneron gets to keep its full share of collaboration profits. That's a real step-up to the bottom line going forward, not tied to any new sales growth — just an accounting unlock.

ALEX: Exactly. Now let's talk EYLEA HD — this one's on fire. U.S. net sales just under $600 million, up 52% year-over-year. And notably, this was the first quarter EYLEA HD sales actually exceeded the original EYLEA.

JORDAN: That's the conversion story playing out. EYLEA HD now makes up about 60% of the franchise, up from 34% a year ago. Meanwhile legacy EYLEA sales fell 45% as patients and doctors shift over — plus there's now biosimilar competition entering that older product's market.

ALEX: They're also awaiting FDA approval on an EYLEA HD prefilled syringe, which could drive even more adoption. Management sounded confident that could land by year-end.

JORDAN: And rounding out the trio, Libtayo — their oncology drug — hit $489 million globally, up 29%. It's gaining real traction in non-small cell lung cancer, now capturing 20% of new prescriptions, double what it was just last year.

ALEX: Let's talk pipeline for a second, because Regeneron's whole philosophy here is "don't bet on one horse." They've got roughly 50 active clinical programs.

JORDAN: A few near-term catalysts stood out to me. There's cemdisiran, their siRNA therapy for myasthenia gravis, with an FDA decision expected in November — that could be the first siRNA approved for that disease. There's also garetosmab for a rare bone disease called FOP, with an FDA decision expected as soon as August.

ALEX: And on the bigger picture front, they're moving into Phase III trials later this year for both their obesity program — a GLP-GIP combo called olatorepatide — and their anticoagulation program targeting Factor XI, which is a different approach than the traditional blood thinners on the market.

JORDAN: One thing that came up repeatedly in Q&A was the Sanofi relationship. CEO Leonard Schleifer confirmed they're in "productive early discussions" with Sanofi about expanding the collaboratio

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# Beta Finch Podcast Script: Regeneron Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we dive deep into the numbers that move markets. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're breaking down Regeneron's first quarter 2026 results, and folks, this biotech giant is firing on all cylinders.

**ALEX:** Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Absolutely. Now Alex, let's talk numbers because Regeneron just posted some impressive results. Revenue jumped 19% to $3.6 billion, and non-GAAP earnings per share grew 15%. Those are solid double-digit growth numbers across the board.

**ALEX:** What really caught my attention is the DUPIXENT story. This drug is becoming an absolute juggernaut - global net sales hit $4.9 billion in the quarter, up 31% on a constant currency basis. Jordan, we're looking at annualized sales approaching $20 billion for this single drug.

**JORDAN:** It's incredible when you put it in perspective. DUPIXENT is now treating over 1.4 million patients worldwide, and they keep expanding into new indications. This quarter alone, they got approval for allergic fungal rhinosinusitis and chronic spontaneous urticaria in younger patients. It's like they're building a franchise within a franchise.

**ALEX:** Speaking of franchises, let's talk about their eye drug portfolio. EYLEA HD had a strong quarter with U.S. sales of $468 million, up 52% year-over-year. But here's the interesting dynamic - while EYLEA HD is growing rapidly, the original EYLEA is declining as expected, down 36%. It's a classic product transition story.

**JORDAN:** And there's still some uncertainty hanging over that transition. They're waiting on FDA approval for the EYLEA HD prefilled syringe, which missed its April deadline. Management expects a decision this quarter, but it shows how regulatory timing can impact even established companies like Regeneron.

**ALEX:** Now, what really excited me during the call was the pipeline discussion. CEO Leonard Schleifer and Chief Scientific Officer George Yancopoulos laid out some compelling near-term catalysts. They've got this complement inhibitor cemdisiran for myasthenia gravis that showed really impressive Phase 3 results.

**JORDAN:** The data on that was striking. Their drug delivered a 2.3-point improvement compared to placebo, which actually outperformed existing treatments that showed 1.6 to 1.9 points in their trials. Plus, it's dosed quarterly versus every two weeks for competitors. That convenience factor could be huge.

**ALEX:** And then there's their obesity play with olatorepatide. This is where Regeneron is trying to differentiate in the crowded GLP-1 space. Their strategy is fascinating - they want to combine this obesity drug with their cholesterol drug Praluent.

**JORDAN:** George Yancopoulos made a compelling pitch on this during the Q&A. He basically said, imagine you have a GLP-1 that works as well as the best ones out there, but also lowers your bad cholesterol by 50% and reduces cardiovascular risk. Why would anyone choose a different GLP-1? It's an interesting value proposition in a competitive market.

**ALEX:** What struck me about that answer is how confident they sounded. Yancopoulos said it would be a "no-brainer" choice for physicians and patients. That's either brilliant positioning or they're setting themselves up for disappointment. Time will tell.

**JORDAN:** One moment that really stood out was when they announced they're giving away their new gene therapy, Otarmeni, for free in the U.S. This treats genetic hearing loss in children, and they got

This episode includes AI-generated content.