Beta Finch - S&P 100 - EN

**Beta Finch Podcast Script: Vertex Pharmaceuticals Q4 2025 Earnings**

ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown where we decode the latest quarterly results to help you understand what really matters in the markets. I'm Alex.

JORDAN: And I'm Jordan. Today we're diving into Vertex Pharmaceuticals' Q4 2025 earnings call - and wow, what a story this company is telling about transformation and growth.

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, Vertex has been known primarily as the cystic fibrosis company for years, but this earnings call really highlighted how they're becoming something much bigger.

ALEX: That's exactly right, Jordan. Let's start with the headline numbers because they're pretty solid. Q4 revenue hit $3.2 billion, up 10% year-over-year, and full-year 2025 revenue reached $12 billion - that's 9% growth. But here's what caught my attention - CEO Reshma Kewalramani kept emphasizing this word "diversification."

JORDAN: Yes! And you can see it in the numbers. While their cystic fibrosis franchise - which includes drugs like TRIKAFTA - still drives the bulk of revenue with 7% growth globally, they're now generating meaningful revenue from completely different disease areas. KASJEVY, their gene therapy for blood disorders, brought in $116 million for the full year. And Gernavix, their non-opioid pain medication, generated $60 million in just eight months since launch.

ALEX: Let's talk about that diversification strategy because it's really the core story here. Duncan McKechnie, their commercial head, painted a picture of a company that's essentially building three new franchises alongside their CF business - in blood disorders, pain management, and now kidney disease.

JORDAN: The kidney disease piece is fascinating, Alex. They have this drug called Povatacept - or "Povi" as they call it - that's being developed for multiple kidney conditions. What's interesting is how confident management sounded about this becoming their "fourth vertical" as they put it. Kewalramani was practically glowing when discussing the clinical data.

ALEX: Right, and there's a reason for that enthusiasm. In their Phase 2 trial for IgA nephropathy - that's a progressive kidney disease - Povatacept showed a 56% reduction in protein in the urine, which is a key measure of kidney function. They've already submitted for FDA approval and expect to complete that submission in the first half of 2026.

JORDAN: But here's what I found most compelling from an investor perspective - the market opportunity. Management estimates that IgA nephropathy affects 330,000 people in the US and Europe alone. And they're not stopping there - they're studying the same drug for other kidney diseases and even expanding into neurological conditions like myasthenia gravis.

ALEX: The "pipeline-in-a-product" concept, as they called it. One drug, multiple indications, multiple revenue streams. It's a smart strategy, especially given how expensive drug development is these days.

JORDAN: Absolutely. Now let's talk about their guidance for 2026 because it tells us a lot about management's confidence level. They're projecting total revenue between $12.95 billion and $13.1 billion - that's 8-9% growth. But here's the kicker: they expect at least $500 million to come from non-CF products. That's basically triple what they generated from those products in 2025.

ALEX: That's aggressive guidance, Jordan. What gives them confidence they can hit those numbers?

JORDAN: Well, for KASJEVY - their gene therapy - they have great visibility because of how the treatment works. Patients go through a months-long process of cell collection and modification before getting infused

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**BETA FINCH PODCAST SCRIPT**

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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 Procter & Gamble's Q2 2026 earnings call. Before we get started, 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**: Thanks Alex. And what a quarter to unpack! P&G just reported what management called their "softest quarter of the fiscal year," but there's actually a lot more optimism here than that headline might suggest.

**ALEX**: Absolutely. Let's start with the numbers, Jordan. Organic sales were flat year-over-year, which sounds underwhelming until you understand the context. They had some major base period disruptions - remember those port strikes and hurricanes last October that caused all that inventory loading?

**JORDAN**: Right, and CFO Andre Schulten was very clear about this. The biggest impacts hit baby care, feminine care, and family care - all concentrated in the U.S. market. But here's the interesting part: the rest of P&G's business outside the U.S. actually grew nearly 3%. That's a pretty solid foundation.

**ALEX**: That's a great point. When you look at the regional breakdown, you see some real bright spots. Latin America grew 8%, Greater China was up 3% - which is impressive given the challenging consumer environment there. Europe's enterprise markets grew 6%. It really was a U.S.-centric slowdown.

**JORDAN**: And speaking of China, I loved CEO Shailesh Jejurikar's example about their Pampers Prestige innovation. They tapped into this deep cultural insight about Chinese parents wanting the best for their babies, and literally incorporated silk - this symbol of luxury for over 2,000 years - into their diapers. It's driving double-digit growth and they've gained nearly three points of market share.

**ALEX**: That's exactly the kind of consumer-centric innovation P&G is doubling down on. Jejurikar talked extensively about what he called "the next important phase of constructive disruption." They're not just tweaking around the edges - they're fundamentally reimagining how a CPG company operates in today's fragmented media landscape.

**JORDAN**: The technology transformation really stood out to me. They've built this massive data lake with petabytes of consumer information, AI-powered tools for product development, and supply chain systems that can react autonomously to demand signals. But Jejurikar was realistic about the timeline - he said it'll take 12 to 18 months to get this "future evenly distributed" across the company.

**ALEX**: Let's talk margins for a second. Core EPS came in at $1.88, flat with last year. But they delivered 270 basis points of productivity improvements, which they reinvested back into innovation and marketing. That's classic P&G - they're not letting a tough quarter derail their long-term investment strategy.

**JORDAN**: And they're maintaining all their full-year guidance, which shows real confidence. Organic sales growth of flat to plus 4%, core EPS growth of flat to plus 4%. They're basically saying "trust us, the back half is going to be much stronger."

**ALEX**: The Q&A session revealed some interesting dynamics too. When analysts pressed about U.S. market share losses, Schulten was pretty direct - they have work to do to recover share, but they're already seeing progress in categories like family care and laundry where they've made those innovation interventions.

**JORDAN**: I thought the discussion about e-commerce was fascinating. One analyst pointed out that Amazon is driving 60-80% of growth in P&G's categories. Jejurikar's response was telling - they're being very deliberate about winning in fast-growing channels, and in some markets like India, their e-commerce share

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we decode the latest quarterly results and turn corporate speak into conversations you can actually follow. I'm Alex.

**JORDAN**: And I'm Jordan. Before we dive into today's episode, I want to remind everyone 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 Jordan. Today we're breaking down Morgan Stanley's Q4 2025 results, and wow - these numbers are pretty impressive across the board. Jordan, what jumped out at you first from these results?

**JORDAN**: Alex, this was really a record-breaking quarter and year for Morgan Stanley. We're talking about $70.6 billion in full-year revenue - that's a record. EPS hit $10.21 for the year, and their return on tangible common equity came in at 21.6%. But what really caught my attention was their total client assets reaching $9.3 trillion. That's just a massive number.

**ALEX**: That's huge. And when you break it down by business segments, it seems like they had strength pretty much everywhere. Their institutional securities business - that's their investment banking and trading operations - hit record full-year revenues of $33.1 billion. Their wealth management business, which has really been their crown jewel, delivered record revenues of $31.8 billion with margins of 29%.

**JORDAN**: Right, and that wealth management story is particularly compelling. They had net new assets of $356 billion for the year - that's like adding a mid-sized asset manager every single year. What I found interesting was CEO Ted Pick's commentary about their "funnel" working. They're seeing about $100 billion migrating from their workplace and E*TRADE channels to their financial advisors, which is higher-margin business.

**ALEX**: That's a great point about the funnel. It sounds like their strategy of having multiple entry points - whether someone starts with E*TRADE for self-directed trading, gets stock options through their workplace program, or comes directly to a financial advisor - is really paying off. Now Jordan, one thing that surprised me was their decision NOT to raise their financial targets, despite clearly exceeding many of them. What's your read on that?

**JORDAN**: This was fascinating, Alex. Multiple analysts pressed them on this during the Q&A. Ted Pick was pretty candid - he basically said they don't want to "chase the dragon" by constantly raising targets just because they hit them. His philosophy seems to be about proving they can compound earnings consistently through different market cycles, not just when everything's going well.

**ALEX**: That's actually pretty refreshing in a world where companies often feel pressure to constantly raise guidance. Pick mentioned wanting to achieve "higher lows" during tougher periods rather than just reaching for higher peaks when times are good.

**JORDAN**: Exactly. And they're sitting on a lot of excess capital - over 300 basis points above their required levels. Pick was asked about potential M&A or returning more capital to shareholders, but he emphasized they want to keep the bar high for acquisitions. They've done four major deals in recent years and know how much work integration takes.

**ALEX**: Speaking of capital allocation, they did return $4.6 billion to shareholders through buybacks in 2025 and raised their dividend by 7.5 cents to $1 per share. But it sounds like they're being pretty disciplined about not getting too aggressive.

**JORDAN**: Right. And looking forward, there are some interesting growth drivers. Pick talked about being in the "third inning" of a capital markets recovery, driven by what he calls the "equitization of global markets" - basically more companies and assets going public and trading. They're also investing he

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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we turn quarterly calls into coffee-shop conversations. I'm Alex, and I'm here with my co-host Jordan to break down 3M's Q4 2025 earnings call that just wrapped up. Jordan, this was one of those calls where the CEO really wanted to drive home that the turnaround is working.

**JORDAN:** Absolutely, Alex. And before we dive in, let me quickly mention - 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 reminder. Now, let's get into the numbers because 3M delivered some solid results here. Organic growth of 2.2% in Q4, operating margin of 21.1%, and earnings per share came in at $1.83. But the real story is the full-year performance - they grew organic sales 2.1% for the year, which is a nice acceleration from that 1.2% they posted in 2024.

**JORDAN:** What really caught my attention was the margin expansion story. They delivered 23.4% adjusted operating margin for the full year - that's up 200 basis points year-over-year and at the high end of their guidance. CEO Bill Brown has been hammering this "commercial excellence" message for the past 21 months, and it seems like it's actually working.

**ALEX:** Yeah, and let's talk about innovation because this is where things get interesting. They launched 284 new products in 2025 - that's up 68% from the prior year. Brown was pretty excited about this, saying sales from products launched in the last five years were up 23% for the full year.

**JORDAN:** That's a key metric to watch, Alex. They call it their "new product vitality index" or NPVI, and it hit 13% - about two points above where they started the year. But here's what I found fascinating - Brown said about 80% of their R&D spending is now focused on what they call "priority verticals" - the higher-growth, higher-margin areas.

**ALEX:** Right, and speaking of those priority verticals, they represent about 60% of the business now. Brown hinted that there's going to be some portfolio reshuffling ahead. He mentioned about 10% of their business is in more commodity-like areas that they're probably going to think about exiting over time.

**JORDAN:** The operational metrics were impressive too. Their OTIF - that's on-time, in-full delivery - hit 90%, up 300 basis points from the prior year. Brown called it "the best we've achieved in decades" and they sustained that rate for seven months straight. That's the kind of operational excellence that actually moves the needle with customers.

**ALEX:** Now let's talk guidance because this is where it gets really interesting for investors. For 2026, they're calling for organic sales growth of approximately 3% - so accelerating from that 2.1% they just posted. They expect adjusted operating margin expansion of 70 to 80 basis points, and EPS of $8.50 to $8.70.

**JORDAN:** What I like about this guidance is the confidence in their "outgrowth" strategy. Brown said they expect the macro environment to be around 1.7% growth, but they're guiding to 3% organic growth. That delta - over $300 million - is what he calls outperforming the macro, and about half of that is coming from new product introductions.

**ALEX:** The Q&A had some interesting moments too. There were several questions about tariffs, which makes sense given the current political environment. Brown said they're already dealing with about $140 million in gross tariff impact, and there could be additional headwinds if new Europe tariffs get implemented.

**JORDAN:** Yeah, Brown was pretty measured on that topic. He said if the proposed Europe tariffs play out as discussed - 10% initially, then up to 25% - it could be a $30 to $40 million impact in 2026. But he emphasized that's not in their gui

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown where we decode corporate quarterly results for everyday investors. I'm Alex.

JORDAN: And I'm Jordan. Today we're diving into Exxon Mobil's Q4 2025 earnings call - and wow, there's a lot to unpack here.

ALEX: Before we get started, 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, Exxon's CEO Darren Woods came out swinging in this call, talking about transformation and competitive advantages. What caught your attention first?

ALEX: The numbers are pretty impressive, Jordan. They hit 4.7 million oil equivalent barrels per day in upstream production - that's their highest annual company production in over 40 years. But what really stands out is Woods saying their unit earnings are more than double what they were in 2019 on a constant price basis.

JORDAN: That's a massive improvement. And they're not just talking about past performance - they've got some bold targets for 2030. Tell me about this "advantaged assets" strategy.

ALEX: So they're targeting 65% of production to come from what they call "advantaged assets" by 2030. These are primarily their Permian Basin operations, Guyana offshore fields, and LNG projects. Woods emphasized these have "lower cost of supply, lower emissions intensity, and higher returns."

JORDAN: The Permian numbers are particularly striking. They hit 1.8 million barrels per day in Q4 - a new record. But here's what's interesting: they're deploying this "lightweight proppant" technology in about 25% of wells now, expecting to reach 50% by end of 2026. Woods said there's "no near-term peak Permian" for them and they expect to exceed 2.5 million barrels per day beyond 2030.

ALEX: That's the technology angle that keeps coming up. They've got over 40 what they call "stackable technologies" in various stages of testing. It's not just about drilling more holes - it's about getting more oil out of each hole more efficiently.

JORDAN: And Guyana continues to be their crown jewel. Their Yellowtail project came online ahead of schedule, pushing gross production to about 875,000 barrels per day in Q4. Woods mentioned their first four floating production units are producing 100,000 barrels per day above the investment basis.

ALEX: There was an interesting exchange about Guyana's future too. An analyst asked about the license expiring in 2027 and the disputed waters with Venezuela. Woods seemed optimistic about resolving the border dispute through the International Court of Justice, and hinted that recent developments in Venezuela might make the naval environment "more friendly."

JORDAN: Speaking of Venezuela, that was probably the most intriguing part of the Q&A. Woods acknowledged he told the White House that Venezuela was currently "uninvestable" but said the Trump administration is committed to addressing that. He even offered to send a technical team to assess opportunities there.

ALEX: The geopolitical opportunities don't stop there. Woods mentioned they're looking at Libya, Iraq, and other markets where improved fiscal terms and legal frameworks could unlock significant resources. He emphasized that Exxon's technological advantages and project execution capabilities make them attractive partners for these resource-rich countries.

JORDAN: Let's talk about their broader transformation strategy. This isn't just about oil and gas anymore. They're moving into carbon capture and storage in a big way, with about 9 million tons per year of CO2 sequestration capacity across various projects.

ALEX: And here's something that caught my ear - they're in "very serious substantive conversations" with hyperscale data center companies about carbon capture solutions. Woods expects a project announce

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# Beta Finch Podcast Script: Wells Fargo Q4 2025 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into Wells Fargo's fourth quarter 2025 results, and folks, this is a big one. 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**: That's right, Alex. And what a transformation story this is becoming. Wells Fargo just reported some pretty impressive numbers - net income hit $5.4 billion for the quarter, up 6% year-over-year, with diluted earnings per share at $1.62, up 13%. But the real story here is what's happening behind these numbers.

**ALEX**: Absolutely. Let's start with the elephant in the room that's actually turned into a huge positive - the removal of that Federal Reserve asset cap. Jordan, this has completely unleashed Wells Fargo's ability to grow their balance sheet again.

**JORDAN**: It's like taking the parking brake off a race car, Alex. CEO Charlie Scharf said their assets grew 11% year-over-year, with broad-based loan growth and higher trading assets. They're finally able to use their balance sheet to support customers properly again. And get this - they've had 22 consecutive quarters of headcount reductions, cutting over 25% since Q2 2020, while simultaneously growing the business.

**ALEX**: That's remarkable efficiency. Now, let's talk about their ambitious targets. They're now shooting for a 17-18% return on tangible common equity in the medium term. That's up from their current 15%. But when analysts pressed Scharf for a timeline, he basically said "look, we don't control interest rates or the economy."

**JORDAN**: Yeah, that was one of the more interesting Q&A moments. Steven Chubak from Wolfe Research pushed back, saying other banks do provide timelines. But Scharf held firm - he's clearly learned from overpromising in the past. His approach is essentially "judge us by our results, not our promises."

**ALEX**: Smart approach given their history. Now let's dive into the business segments. Their consumer business is really starting to show momentum. Credit card accounts opened nearly 3 million new accounts in 2025, up 21% year-over-year. Auto business returned to growth with 19% balance growth. Jordan, what stood out to you here?

**JORDAN**: What I found fascinating is how methodical they're being about this growth. Scharf specifically mentioned they're not just chasing growth for growth's sake - they want profitable growth. In auto, they became the preferred financing provider for Volkswagen and Audi. But he emphasized they're focused on "making sure we have the right level of profitability, not just growth."

**ALEX**: That's a mature approach. On the commercial side, they hired 185 coverage bankers over the last two years, with over 60% hired in 2025. They're seeing early success with higher client acquisition and loan growth. But here's where it gets interesting - they're really pushing into investment banking.

**JORDAN**: Right, they've set a goal to be a top 5 U.S. investment bank. They moved up to 8th in M&A rankings in 2025 from 12th in 2024. And Scharf mentioned they're entering 2026 with their deal pipeline "meaningfully greater than it has been at any point in the last 5 years." That's a bold statement.

**ALEX**: Now, let's talk numbers for 2026. They're guiding for net interest income of around $50 billion, up from $47.5 billion in 2025. But here's where it gets complex - they're breaking out their markets business separately now.

**JORDAN**: This is actually really important for investors to understand. They expect markets net interest income to grow to about $2 billion in 2026, but this growth will be partially offset by lower noninterest income. It's essentially a shift in how reve

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**BETA FINCH PODCAST SCRIPT**

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 TJX Companies' fourth 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, TJX just delivered what CEO Ernie Herrman called an "excellent" quarter with some pretty impressive numbers.

JORDAN: Absolutely, Alex. The off-price retail giant crushed expectations across the board. Fourth quarter sales hit $17.7 billion, up 9% year-over-year, while comparable store sales grew a very strong 5%. That's on top of a 5% comp increase last year, so we're talking about solid momentum here.

ALEX: And the bottom line looked even better. Adjusted earnings per share came in at $1.43, up 16% from $1.23 last year and well above their plan. For the full year, they crossed a major milestone - net sales surpassed $60 billion for the first time, reaching $60.4 billion.

JORDAN: What I found particularly impressive was the breadth of their success. Every single division delivered comp sales growth of 4% or better. Marmaxx, their largest division, grew 4% to $36.6 billion in annual sales. HomeGoods hit its own milestone, surpassing $10 billion in annual sales with a strong 5% comp increase. And their international operations showed real strength - TJX Canada posted an outstanding 7% comp growth.

ALEX: Speaking of profitability, their adjusted gross margin expanded 60 basis points to 31.1% in Q4, driven primarily by higher merchandise margins. CFO John Klinger highlighted that shrink is now essentially back to pre-COVID levels after two consecutive years of 20 basis point improvements.

JORDAN: That shrink improvement is huge, Alex. It shows their operational excellence and suggests they've successfully navigated the inventory challenges that plagued many retailers. What's also interesting is their inventory strategy - balance sheet inventory was up 14%, but they frame this as a positive, with outstanding merchandise availability giving them tremendous buying flexibility.

ALEX: Let's talk about their growth strategy because Herrman was quite bullish about playing offense. He outlined several key initiatives - more aggressive marketing campaigns, including new campaigns for HomeGoods and TJ Maxx, deeper vendor relationships, and continued store remodels and new prototypes to enhance the shopping experience.

JORDAN: The vendor relationship piece is fascinating. They now work with approximately 21,000 vendors through their team of over 1,400 buyers. Herrman mentioned they're being more aggressive than ever in going after brands, particularly as some competitors face closures or disruptions. He said vendors are essentially giving them first call on excess inventory because of their reputation for being straightforward and paying on time.

ALEX: And the expansion story continues. They're planning to add 146 net new stores in fiscal 2027, including their first five stores in Spain. Long-term, they see potential for 7,000 stores globally with existing banners in current countries plus Spain - that's about 1,700 more stores than they have today.

JORDAN: But let's talk about the guidance, which was a bit more conservative. For fiscal 2027, they're projecting comp sales growth of 2% to 3%, total sales of $62.7 to $63.3 billion, and earnings per share of $4.93 to $5.20. That EPS range represents 4% to 6% growth, which is solid but notably more modest than recent performance.

ALEX: During the Q&A, there were some interesting insights. When asked about pricing actions, Herrman explained their flexible approach - they don't dictate retail prices but rather maintain appropriate value gaps versus competitors. He noted their value perception has actually improved over the last six m

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

**JORDAN**: And I'm Jordan. Today we're diving into Stryker's Q4 2025 earnings - and folks, this medical device giant just delivered what CEO Kevin Lobo called "outstanding results" across all key metrics.

**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**: Absolutely. Now Alex, let's talk numbers because Stryker really brought the heat this quarter.

**ALEX**: They sure did, Jordan. Stryker crushed it with 11% organic sales growth in Q4, hitting over $25 billion in sales for the full year. That's their fourth consecutive year of double-digit organic growth. And here's what I love - they managed 10.3% growth for the full year against a tough 10.2% comparable from 2024.

**JORDAN**: The consistency is remarkable. And it wasn't just the top line - adjusted earnings per share jumped 11.5% to $4.47 in the quarter, with full-year EPS up 11.8% to $13.63. What really stands out to me is they achieved this while managing $400 million in tariff headwinds, including an incremental $200 million hit they're expecting in 2026.

**ALEX**: That tariff management is impressive. Preston Wells, their CFO, mentioned they're absorbing these costs while still driving meaningful operating margin expansion. Speaking of which, they delivered their second consecutive year of at least 100 basis points of margin expansion. That shows real operational muscle.

**JORDAN**: Let's break down the business segments because there were some real standouts. MedSurg and Neurotechnology posted 12.6% organic growth, with U.S. growth hitting 13%. The instruments business was particularly hot with 19.1% U.S. growth driven by strong capital demand.

**ALEX**: And then there's the Mako story - which honestly feels like the star of this whole show. Jordan, they had another record quarter for Mako installations, both in the U.S. and worldwide. Their installed base now includes over 3,000 Mako systems globally.

**JORDAN**: The Mako 4 transition has been what Lobo called "an absolute home run." Here's a stat that blew me away - over two-thirds of their knee procedures and over one-third of hip procedures in the U.S. are now performed on Mako. One surgeon even told Lobo that the new revision hip application was like a "cheat code" for difficult procedures.

**ALEX**: That's incredible feedback. And they're not stopping there - they're expanding Mako into shoulder applications mid-year, plus they just started cases on their handheld robot called Mako RPS. This is designed for surgeons who want robotic assistance but aren't ready for the full Mako system complexity.

**JORDAN**: The RPS launch is smart positioning. It sits between their manual instruments and full Mako systems, potentially opening up new customer segments, especially in ambulatory surgery centers. Speaking of ASCs, they mentioned hips and knees are now in the high teens percentage flowing through that channel.

**ALEX**: Let's talk guidance because this is where Stryker shows confidence in their momentum. For 2026, they're guiding 8% to 9.5% organic sales growth and adjusted EPS of $14.90 to $15.10. That top end of the range is slightly higher than where they started 2025, which Lobo says reflects their elevated capital backlog and strong procedural outlook.

**JORDAN**: And here's something interesting from the Q&A - when asked if 10% growth was still possible, Lobo said "certainly possible" for their fifth consecutive year of double-digit growth. The confidence seems genuine, backed by that strong order book and Mako momentum.

**ALEX**: There were some organizational changes wo

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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 Philip Morris International's Q4 2025 earnings call. Now before we get started, 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**: Thanks Alex! And what a call this was from Philip Morris. They absolutely crushed it in 2025, delivering what CEO Jacek Olczak called "another outstanding year." We're talking about their fifth consecutive year of positive volumes, driven primarily by their smoke-free products business.

**ALEX**: Right, and the numbers really tell the story here. Philip Morris hit over $40 billion in total net revenues for 2025, with smoke-free products now representing 41.5% of that - nearly $17 billion! That's a massive shift from where they were just a few years ago.

**JORDAN**: The growth trajectory is impressive. Smoke-free product volumes grew 12.8%, with IQOS leading the charge at 11% growth. But here's what caught my attention - their ZYN nicotine pouches in the US grew shipments by 37%, despite supply constraints. That's reaching 11.9 billion pouches, making up about 7% of their total smoke-free volume.

**ALEX**: And let's talk profitability because that's where this story gets really interesting. Their smoke-free gross margin hit 69.5%, which is now four percentage points higher than their combustible business. CFO Emmanuel Babeau made it clear that this improving profitability mix is a key driver of their overall margin expansion.

**JORDAN**: Speaking of margins, they delivered 140 basis points of organic margin expansion to reach 40.4% adjusted operating margin. That's while they're still investing heavily in marketing and brand building for their smoke-free portfolio. It shows real operating leverage in the business model.

**ALEX**: Now, the guidance for 2026 is where things get particularly interesting. They're forecasting organic net revenue growth of 5-7%, which might seem modest compared to recent years, but there are some specific headwinds they're navigating.

**JORDAN**: Exactly. The big story is Japan, where they're facing significant excise tax increases on heated tobacco products - we're talking 50-100 yen per pack, which could be 10-20% of current retail prices. This creates an asymmetry where heated tobacco gets hit first, before cigarettes face similar increases in 2027.

**ALEX**: And in the US, there's the ZYN inventory normalization. They estimate there are about 25 million cans of surplus inventory in the downstream supply chain that needs to work through, likely in Q1. But the underlying demand story remains strong - ZYN maintained about 61.5% volume share in the US nicotine pouch category.

**JORDAN**: What I found fascinating in the Q&A was the discussion around ZYN Ultra, their higher-strength nicotine pouch that's pending FDA approval. Olczak was pretty direct - they have readiness to launch "essentially as we speak," and they're expecting some movement this summer, though he admitted he doesn't have a great track record forecasting the FDA!

**ALEX**: [Laughs] At least he's honest about that! But you can tell they're frustrated with the regulatory environment. When asked about New York's proposed excise tax on nicotine pouches, Olczak called it "counterproductive to the health benefits" and "the wrong idea."

**JORDAN**: The international expansion story is really compelling too. They're now in 106 markets with smoke-free products, and some of these new launches are showing impressive traction. Taiwan caught my eye - they hit 4% market share in just a few weeks after launch. That's remarkable penetration for a new market entry.

**ALEX**: And they're not just focused on IQOS any

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# Beta Finch Podcast Script: NVIDIA Q4 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into NVIDIA's absolutely massive Q4 2026 results that just dropped. Jordan, before we get started, 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:** Thanks Alex. And wow, where do we even start with these numbers? NVIDIA just reported Q4 revenue of $68 billion - that's up 73% year-over-year and they added $11 billion in sequential growth. This is a company that's now doing nearly $200 billion in annual data center revenue alone.

**ALEX:** Right, and what's really striking is the acceleration. They went from strong growth in Q3 to even stronger growth in Q4. The data center business hit $62 billion for the quarter, up 75% year-over-year. But Jordan, what caught my attention was their guidance for Q1 - they're calling for $78 billion in revenue, which would be another massive jump.

**JORDAN:** Exactly, and that guidance assumes zero revenue from China, which is important context given the ongoing trade restrictions. But let's talk about what's driving this growth - it's really the Blackwell architecture that's just taken off. Jensen mentioned they have 9 gigawatts of Blackwell infrastructure already deployed, and here's the kicker - even their six-year-old Ampere chips are sold out in the cloud.

**ALEX:** That supply constraint theme runs throughout this call. Colette Kress mentioned they've strategically secured inventory and purchase commitments extending into calendar 2027 - that's much further out than usual and reflects the unprecedented demand visibility they're seeing. Speaking of segments, their networking business was a real standout, hitting $11 billion in revenue, up more than 3.5x year-over-year.

**JORDAN:** And that networking growth ties directly into their "AI factory" strategy. Jensen kept emphasizing this concept that in the new world of AI, compute literally equals revenue. When companies can generate tokens faster and more efficiently, that directly translates to higher revenues. It's why their customers are so willing to spend massive amounts on infrastructure.

**ALEX:** Speaking of spending, the numbers Jensen threw out about cloud provider CapEx were staggering. He said analyst expectations for 2026 CapEx across the top five cloud providers are approaching $700 billion - that's up $120 billion just since the start of the year. But there's something bigger happening here with what they're calling "agentic AI."

**JORDAN:** Right, this was probably the most important strategic theme of the call. Jensen talked about how we've hit an inflection point with AI agents - systems like Claude Code and OpenAI Codex that can actually take on complex, long-running tasks. He mentioned these agents are being used extensively by NVIDIA's own engineers, and the demand for the compute power to run them is going exponential.

**ALEX:** And they're betting big on this trend. NVIDIA announced a $10 billion investment in Anthropic this quarter, deepening their partnerships with all the major AI players. They're also working closely with OpenAI, Meta's expanding their deployment to millions of GPUs, and they even acquired talent from Groq to enhance their inference capabilities.

**JORDAN:** Let's talk about their next-generation platform - Rubin. They unveiled this at CES with six new chips, and Jensen claims it will train models with one-fourth the number of GPUs compared to Blackwell and reduce inference costs by up to 10x. They've already started shipping samples and expect production in the second half of the year.

**ALEX:** The margins story is fascinating too. They maintained gross margins around

This episode includes AI-generated content.