Beta Finch - S&P 100 - EN

**BETA FINCH PODCAST SCRIPT**

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we cut through the noise to bring you what really matters from the latest quarterly reports. I'm Alex.

**JORDAN**: And I'm Jordan. Before we dive in, I want to make sure our listeners know 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 Pfizer's Q4 2025 earnings, and wow - this was a packed call. We've got solid financial performance, major obesity drug developments, and some really interesting strategic moves. Let's start with the numbers, Jordan.

**JORDAN**: The headline numbers tell a story of resilience, Alex. Pfizer posted $62.6 billion in full-year revenue versus $63.6 billion last year - that's a 2% operational decline. But here's the key detail: when you strip out their COVID products, they actually grew operational revenue by 6%.

**ALEX**: That's huge because it shows the underlying business is healthy. What about profitability?

**JORDAN**: Even better news there. Adjusted earnings per share came in at $3.22 versus $3.11 last year, beating expectations. They expanded gross margins to 76%, and their recently launched and acquired products - which is really their growth engine - delivered over $10 billion in revenue with 14% operational growth.

**ALEX**: Now, the elephant in the room with Pfizer has always been their COVID business decline. How bad was that impact in Q4?

**JORDAN**: Pretty significant. COVID products dropped about 40% operationally year-over-year in Q4. But Alex, this is actually old news at this point. What's more interesting is how well they're managing through it. Their non-COVID business grew 9% in the quarter, driven by products like Abrysvo, Eliquis, Prevnar, and the Vyndaqel family.

**ALEX**: Speaking of managing through challenges, they reaffirmed their 2026 guidance today. Walk us through what they're expecting.

**JORDAN**: They're guiding for $59.5 to $62.5 billion in revenue and $2.80 to $3.00 in adjusted EPS for 2026. What's notable is they're expecting COVID revenues to drop to about $5 billion, and they're anticipating $1.5 billion in revenue compression from generic competition. But even with those headwinds, they expect their core business excluding COVID and loss-of-exclusivity products to grow about 4% operationally.

**ALEX**: Now let's talk about the real headline from today's call - their obesity drug data. This feels like a potential game-changer, Jordan.

**JORDAN**: Absolutely, Alex. They announced results from their VESPER-3 study for PF-3944, which is their investigational obesity treatment. And the key differentiator here is that it's designed for monthly dosing instead of weekly like current GLP-1 drugs.

**ALEX**: Monthly dosing - that's a big deal for patient convenience. What kind of weight loss are we talking about?

**JORDAN**: The data showed 10-12% placebo-adjusted weight loss at 28 weeks for their planned phase 3 doses. But here's what's really interesting - their modeling suggests the higher dose they're planning could deliver nearly 16% weight loss. And importantly, they didn't see a weight loss plateau at 28 weeks, suggesting patients could lose even more weight over time.

**ALEX**: How does that stack up against what's already on the market?

**JORDAN**: It's competitive with existing weekly GLP-1s like Ozempic and Wegovy, but the monthly dosing is the real differentiator. During the Q&A, their commercial team emphasized that reducing from four injections per month to just one could be a major advantage for patient compliance and switching existing patients to their therapy.

**ALEX**: What about side effects? That's always a concern with these obesity drugs.

**JORDAN**: The safety prof

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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 Pfizer's Q4 2024 results that just dropped. Before we get started though, 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, what a call this was. Pfizer really came out swinging with some solid numbers and a pretty clear roadmap for 2025.

ALEX: Absolutely. Let's start with the headline numbers because they're actually pretty impressive. Pfizer delivered $63.6 billion in full-year revenue for 2024, which beat expectations. But here's what really caught my attention - if you strip out their COVID products, they saw 12% operational growth. That's above their own guidance of 9% to 11%.

JORDAN: That's a key point, Alex. The market has been so focused on Pfizer's post-COVID transition, and this shows they're actually executing well on the non-COVID business. Their adjusted earnings per share hit $3.11 for the full year, which was significantly ahead of expectations. And they're guiding for 2025 revenue between $61 billion to $64 billion.

ALEX: Right, and CEO Albert Bourla was pretty confident on the call. He said, and I'm paraphrasing here, "Pfizer knows how to execute well when we set our focus on something." He pointed to their COVID vaccine development, then Paxlovid, and now he's saying they're applying that same focused execution to R&D productivity.

JORDAN: Speaking of R&D, that was probably the biggest strategic story from this call. They've completely reorganized their research and development under Chris Boshoff into four focused units - oncology, vaccines, internal medicine, and inflammation & immunology. Boshoff said they want each unit to "operate with the focus and agility of a biotech company."

ALEX: That's fascinating because it suggests they're trying to move faster and be more decisive. And they're putting their money where their mouth is - they expect at least four regulatory decisions this year, up to nine Phase 3 readouts, and 13 potential pivotal program starts. Those are some pretty aggressive targets.

JORDAN: The oncology story is particularly compelling. Their Padcev drug, which they got from the Seagen acquisition, is already the number one prescribed first-line treatment for certain bladder cancers. And they've got potential data coming this year that could nearly triple the addressable patient population if it's successful.

ALEX: Let's talk about some of the individual products because there were some real standouts. Vyndaqel, their heart disease drug, grew 90% year-over-year in the U.S. That's just massive growth for a specialty drug.

JORDAN: And Nurtec, their migraine treatment, grew 36% with about 49% market share in its category. But I thought one of the most interesting exchanges was about their COVID business. An analyst asked about sustainability, and management was pretty confident that it's now a "predictable and durable" revenue stream.

ALEX: That's important because the street has been treating COVID revenues as this wild card. But Aamir Malik, who runs U.S. commercial, explained how Paxlovid usage directly tracks disease burden, and they've got multi-year international contracts. So it sounds like they've built a more stable foundation there.

JORDAN: The financial discipline story was also compelling. They returned $9.5 billion to shareholders through dividends, invested nearly $11 billion in R&D, and paid down $7.8 billion in debt. CFO Dave Denton said they now have capacity for $10 billion to $15 billion in business development deals in 2025 if they choose to pursue them.

ALEX: That's a lot of firepower. And when an analyst asked about their BD strategy, Andrew Baum, who oversees portfolio planning, said t

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we turn complex corporate calls into clear insights. I'm Alex, and with me as always is Jordan.

**JORDAN**: Hey everyone! Today we're diving into Pfizer's Q3 2024 earnings, and wow - this was a solid quarter that really shows the pharma giant is hitting its stride post-pandemic.

**ALEX**: Before we jump in, I need to share our mandatory 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 Pfizer really delivered here.

**ALEX**: They did! Total revenue came in at $17.7 billion, which represents an impressive 32% operational growth year-over-year. But here's what I found interesting - it wasn't just COVID products driving this growth.

**JORDAN**: Right, and that's crucial context. PAXLOVID contributed $2.7 billion and COMIRNATY added $1.4 billion, but their non-COVID business also showed robust performance with $13.6 billion in revenue - that's 14% operational growth on its own.

**ALEX**: That non-COVID growth is really the story here. It shows their underlying business is healthy and growing, which addresses one of the biggest concerns investors have had about Pfizer - what happens when COVID revenue normalizes?

**JORDAN**: Exactly. And speaking of normalization, CEO Albert Bourla made some fascinating comments about COVID becoming "normal business" now. He pointed out that PAXLOVID usage patterns in 2024 are almost identical to 2023 - 4.9 million patients treated through Q3 this year versus 5.2 million last year.

**ALEX**: That predictability is huge for investors. Bourla even said they'll stop separating COVID from non-COVID business because "it's Pfizer business." But let's talk about their star performers outside of COVID.

**JORDAN**: Oncology was the standout with 31% year-over-year growth. XTANDI grew 28%, TALZENNA surged 77%, and they're seeing great momentum with newer launches like PADCEV, which has become the most prescribed first-line treatment for advanced bladder cancer.

**ALEX**: The TALZENNA data was particularly exciting. They announced that TALZENNA combined with XTANDI showed statistically significant overall survival benefit in prostate cancer patients - becoming the first and only such combination to do so. That's huge for a cancer that's the second most common in men.

**JORDAN**: And don't sleep on their pipeline. They've got multiple Phase III trials starting, including their CDK4 inhibitor for breast cancer and several next-generation ADCs for lung cancer. The Seagen acquisition is really paying dividends here.

**ALEX**: Speaking of Seagen, that integration seems to be going smoothly. They retained the vast majority of Seagen employees and the legacy Seagen products contributed $854 million in Q3 alone, with PADCEV generating over $400 million.

**JORDAN**: Now, we can't ignore the elephant in the room - the activist investor situation with Starboard Value.

**ALEX**: Bourla addressed this head-on, which I appreciated. He acknowledged they met with Starboard two weeks ago and said while they agree with some points, they have "vastly different views on many others." Particularly around capital deployment and business development.

**JORDAN**: His response was pretty measured. He defended deals like Seagen and BioNTech as transformational, and pointed out they've been executing a five-point strategic plan since January that's showing results. Three consecutive quarters of revenue growth, successful cost reduction programs, strong pipeline advancement.

**ALEX**: The cost management story is compelling too. They're on track to deliver $4 billion in net cost savings from their realignment program and expect $1.5 billion in manufacturing savings by 2027.

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**BETA FINCH PODCAST SCRIPT - MERCK 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 what really matters from corporate America's quarterly reports. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Merck's Q4 2025 earnings - and folks, this one's got some really interesting moving parts.

**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 Merck delivered some solid, if not spectacular, results.

**ALEX:** Right, so Q4 revenue came in at $16.4 billion - that's 5% growth year-over-year, or 4% if you strip out foreign exchange impacts. But what's really interesting here is the story behind these numbers.

**JORDAN:** Exactly. Keytruda, their blockbuster cancer drug, continues to be the workhorse with $8.4 billion in sales, up 5%. But here's what caught my attention - CEO Rob Davis mentioned they now see a path to over $70 billion in potential commercial opportunity by the mid-2030s. That's $20 billion more than just a year ago!

**ALEX:** That's a massive increase in their pipeline projections. And Jordan, this gets to the heart of what investors are really worried about with Merck - what happens when Keytruda loses patent protection?

**JORDAN:** Bingo. The so-called "patent cliff." But here's where it gets interesting - Davis dropped some news about potentially extending Keytruda's protection. They have additional patents that could push the loss of exclusivity from December 2028 out to May or even November 2029.

**ALEX:** That's huge if it holds up. An extra year of Keytruda exclusivity could be worth billions. But let's talk about some of the challenges they're facing. Gardasil, their HPV vaccine, saw sales drop 35% to $1 billion, largely due to lower demand in China and Japan.

**JORDAN:** Yeah, that's a significant headwind. And looking at their 2026 guidance, they're projecting pretty modest growth - just 1% to 3% revenue growth to between $65.5 and $67 billion. That includes dealing with about $2.5 billion in headwinds from generic competition and pricing pressures.

**ALEX:** Speaking of 2026, there's this massive one-time charge of about $9 billion related to their acquisition of Sidera Therapeutics. This deal is all about MK1406, a potentially first-in-class flu prevention drug.

**JORDAN:** This acquisition really stood out to me. Management thinks MK1406 has greater than $5 billion in revenue potential. It's designed as a long-acting antiviral that could prevent influenza in high-risk individuals - basically a once-per-season shot instead of the traditional annual flu vaccine approach.

**ALEX:** The timing is interesting too, given we're in the middle of what seems to be a pretty severe flu season. Dr. Dean Li, their R&D chief, mentioned they've completed enrollment in the Northern Hemisphere for their Phase 3 trial and are now enrolling patients in the Southern Hemisphere.

**JORDAN:** Let's pivot to some of their other growth drivers. Winrevair, their pulmonary arterial hypertension drug, continues to impress with $467 million in global sales. They had over 1,500 new patients start treatment in the U.S. alone this quarter.

**ALEX:** And they just launched Ohtuvayre for COPD after acquiring Verona Pharma. That brought in $178 million in just part of the quarter. These respiratory drugs are clearly becoming a key growth pillar for Merck post-Keytruda.

**JORDAN:** What I found fascinating in the Q&A was the discussion around their HIV programs. They have this two-drug combination that showed non-inferior results to the standard three-drug regimen. Dr. Li was particularly excited abou

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**Beta Finch Podcast Script: Altria (MO) Q4 2025 Earnings**

ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and I'm joined by my co-host Jordan. Today we're diving into tobacco giant Altria's fourth quarter 2025 results. 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, what a quarter for Altria. The company delivered some solid financials but also took a massive $1.3 billion impairment charge on their e-vapor business. That's not exactly chump change.

ALEX: Absolutely not. Let's start with the big picture numbers. Altria grew adjusted earnings per share by 4.4% for the full year and returned a whopping $8 billion to shareholders through dividends and share buybacks. That's serious cash returning to investors.

JORDAN: Right, and they're guiding for 2026 EPS between $5.56 and $5.72, which represents 2.5% to 5.5% growth. But here's the interesting part - CEO Billy Gifford said that growth will be "weighted to the second half of the year." That suggests a slower start to 2026.

ALEX: That timing issue ties into one of their big strategic moves. Altria is investing heavily in what they call "import-export capabilities" - basically a duty drawback program where they can manufacture cigarettes for international markets and then reimport them to get tax benefits. It's a complex play, but CFO Sal Mancuso said it has a payback period of less than a year.

JORDAN: That's actually pretty clever from a financial engineering standpoint. But let's talk about the elephant in the room - that $1.3 billion e-vapor impairment. They acquired NJOY to get into the vaping space, but the market is absolutely dominated by illegal flavored disposables from China.

ALEX: Exactly. Gifford said illegal products represent about 70% of the e-vapor category. Think about that - seven out of ten vaping products sold in the US are essentially operating outside FDA regulations. That makes it nearly impossible for legitimate companies like Altria to compete profitably.

JORDAN: But there might be a silver lining here. The company is seeing early signs that federal enforcement is starting to bite. Disposable e-vapor volume growth slowed from over 50% in 2024 to about 30% in 2025. Plus, Congress allocated at least $200 million in tobacco user fees specifically for enforcement activities.

ALEX: That enforcement angle is crucial for understanding Altria's strategy. They're basically saying "we'll wait on the sidelines until the government cleans up the illegal competition." Meanwhile, they're focusing on their nicotine pouch business, which is actually performing pretty well.

JORDAN: Speaking of nicotine pouches, their ON! brand is interesting. They got FDA authorization for ON! PLUS in December - that's their premium product with what they call "innovative pouch material and smooth flavor." They're positioning it as a premium option that can command higher prices than their classic ON! pouches.

ALEX: The numbers back that up. Helix, which makes the ON! products, shipped over 177 million cans for the full year, up about 11%. And while competitors were cutting prices - down 12% year-over-year according to Altria - they actually raised ON! prices by 3%.

JORDAN: But let's be real about the core business. Cigarette volumes declined 10% for the full year. That's a serious headwind. Even more concerning, Marlboro's retail share dropped below 40% for the first time ever.

ALEX: That Marlboro number caught my attention too. But Gifford pushed back on concerns during the Q&A, saying they're focused on "maximizing profitability over the long term" rather than chasing market share. They're also aggressively promoting their Basic discount brand in about 30,000 stores t

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# Beta Finch Podcast Script - Medtronic Q3 2026 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we turn complex quarterly reports into clear insights. I'm Alex.

**JORDAN**: And I'm Jordan. Today we're diving into Medtronic's Q3 2026 results, and wow - this was quite the quarter for the medical device giant.

**ALEX**: Before we jump in, I need to share our mandatory 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, thanks Alex. So Medtronic - ticker MDT - just reported some pretty impressive numbers. Let's start with the headline figures. Revenue hit $9 billion, growing 8.7% reported and 6% organically. That's actually a 50 basis point acceleration from the prior quarter.

**ALEX**: And they beat their own guidance by 50 basis points too. The real star here was their cardiovascular portfolio, which grew 11% year-over-year - that's the strongest growth they've seen in cardiovascular in the last ten years, excluding COVID comps.

**JORDAN**: The standout within cardio was their Cardiac Ablation Solutions, or CAS business, which includes their pulse field ablation technology. This grew 80% year-over-year, with PFA accounting for 80% of that revenue. CEO Geoffrey Martha seems really excited about this - they're calling it one of their "generational growth drivers."

**ALEX**: Speaking of growth drivers, Medtronic is really pushing four major ones: their PFA technology, the Simplicity Spyral system for hypertension, Altaviva for urinary incontinence, and their Hugo surgical robot. Jordan, what caught your attention in the management commentary?

**JORDAN**: What's fascinating is how they're building entirely new markets. Take their Simplicity system for hypertension - they launched a direct-to-consumer campaign called "Go Beyond" and saw website visits jump from 50,000 in Q2 to 2.5 million in Q3. That's a 50x increase! They opened over 200 new accounts this quarter and now have about 100 million covered lives, which is roughly one-third of the US population.

**ALEX**: That consumer demand story is really compelling. And it sounds like they're seeing great patient outcomes, which is driving physician excitement. But let's talk numbers - what about profitability?

**JORDAN**: Adjusted EPS came in at $1.36, beating the midpoint of guidance by 3 cents. However, gross margins are taking a hit from business mix - specifically from CAS and their Diabetes business. CFO Thierry Pieton explained that CAS currently has an unfavorable mix of lower-margin capital equipment to higher-margin catheters, since they're still in early launch phase.

**ALEX**: But that should improve over time as the installed base grows and catheter sales increase relative to the initial capital equipment, right?

**JORDAN**: Exactly. Pieton said they expect to see that mix inflection in the second half of next year, with CAS actually driving gross margin improvement as early as fiscal 2027. There's also the Diabetes business separation they're planning - since Diabetes has lower margins than the rest of the business, spinning it off should provide a natural margin lift.

**ALEX**: Let's talk about that guidance for fiscal 2027. They're maintaining their expectation for high-single-digit EPS growth, but there are some moving pieces.

**JORDAN**: Right, there are several puts and takes. They'll have a full year of tariff impact - about $300 million versus $185 million in 2026. There's an extra selling week that will help growth. And the Diabetes separation will create some temporary dilution of 1-2 cents per month between the IPO and the full split, since they lose 20% of Diabetes profits but don't get the share buyback benefit until the full separation.

**ALEX**: The Q&A session had some interest

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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 McDonald's Q4 2025 results. Jordan, this was quite the quarter for the Golden Arches.

JORDAN: Absolutely, Alex! And before we dig in, I need to 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, Jordan. Now, let's talk numbers. McDonald's delivered some impressive results - system-wide sales hit nearly $140 billion, up 5.5% in constant currency for the full year. But what really caught my eye was that Q4 comp sales growth of 5.7% globally. That's pretty strong in what they're calling a "challenging industry backdrop."

JORDAN: Right, and breaking that down by segment - the U.S. was particularly strong at 6.8% comp growth, well above expectations. What's interesting is they had positive guest counts, which is always a key indicator of sustainable growth. CEO Chris Kempczinski mentioned they achieved their highest quarterly comparable guest count gap to competitors "in recent history."

ALEX: That's a fancy way of saying they're stealing customers from the competition! And speaking of the U.S., their value strategy seems to be working. They launched McValue early in the year, then relaunched Extra Value Meals in September. The results? They gained share with low-income consumers in December and saw meaningful improvement in value and affordability scores.

JORDAN: The marketing machine was firing on all cylinders too. The MONOPOLY promotion became one of their largest digital customer acquisition events ever - they now have 46 million 90-day active users in their U.S. loyalty app alone. But get this - the Grinch Meal campaign set new sales records, including the highest single sales day in McDonald's history!

ALEX: 50 million pairs of Grinch-themed socks sold globally! They literally became the largest seller of socks in the world for nearly a week. Only McDonald's could pull that off.

JORDAN: The international segments held up well too. International Operated Markets grew comp sales 5.2% - that's three consecutive quarters above 4% growth. The U.K., Germany, and Australia all delivered mid-to-high single-digit comp growth, with each market gaining market share.

ALEX: Now, let's talk about what's coming next because this is where it gets really interesting. They're accelerating restaurant openings - targeting 2,600 gross openings in 2026, up from 2,275 in 2025. That puts them on track for 50,000 restaurants by end of 2027.

JORDAN: The capital expenditure guidance reflects this growth - they're expecting $3.7 to $3.9 billion in CapEx for 2026, up from $3.4 billion in 2025. CFO Ian Borden was clear this increase was planned and keeps them on track with their December 2023 investor day targets.

ALEX: But here's what I found most intriguing - the menu innovation pipeline. New Chief Restaurant Experience Officer Jill McDonald outlined some ambitious plans. They're rolling out "Best Burger" to nearly all markets by end of 2026, and the Big Arch burger is gaining permanent spots on menus after successful pilots.

JORDAN: And beverages - this could be huge, Alex. They're targeting a $100 billion global beverage opportunity with new offerings under the McCafe brand. Energy drinks, indulgent iced coffees, fruity refreshers, crafted sodas. They even mentioned continuing their Red Bull collaboration. Their beverage test in 500+ U.S. restaurants exceeded expectations and drove incremental occasions across different dayparts.

ALEX: The chicken category focus is smart too - it's twice the size of beef and faster growing. They grew chicken category share across their top 10 markets in 2025 and are targeting at least 1 percen

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

**JORDAN**: And I'm Jordan. Before we dive 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**: Thanks Jordan. Today we're breaking down Mastercard's Q4 2025 earnings call, and wow - this was a masterclass in how to deliver consistent growth in an uncertain world. The headline numbers here are impressive: 15% revenue growth on a currency-neutral basis, with their value-added services segment absolutely crushing it at 22% growth.

**JORDAN**: Yeah Alex, those VAS numbers really caught my attention. But let's start with the big picture - Mastercard hit $4.76 in earnings per share, up 20% year-over-year. What's interesting is how broad-based this growth was. They're not just relying on one region or one business line.

**ALEX**: Exactly. And CEO Michael Miebach was pretty confident in his opening remarks. He emphasized three key factors driving their success: focus, innovation, and diversification. But Jordan, what really stood out to me was this idea of a "virtuous cycle" between their payment network and services offerings. Can you break that down?

**JORDAN**: It's actually quite elegant when you think about it. More transactions flowing through their network means more data. More data enables better services and analytics they can sell to banks and merchants. Those better services help their partners grow, which drives more transactions back through the network. Rinse and repeat. They mentioned that 60% of their value-added services revenue is "network-linked," meaning it directly benefits from transaction growth.

**ALEX**: That's a powerful moat. Now, let's talk about some of the big strategic wins they announced. The Capital One renewal was huge news - they're extending their credit partnership and Capital One will use more Mastercard services across their entire business.

**JORDAN**: Right, and this came up multiple times in the Q&A. What's significant is that Capital One chose to deepen their relationship with Mastercard even as they're integrating the Discover network they acquired. That's a strong vote of confidence in Mastercard's value proposition. Miebach emphasized that banks choose Mastercard for their global acceptance, security, and digital capabilities - not just price.

**ALEX**: Speaking of big wins, they had some impressive international expansion stories. A nearly 10 million card migration in Turkey with Yapi Credi, new partnerships across Latin America with Scotiabank, and some exclusive deals in South Africa that could increase their market share by multiple percentage points.

**JORDAN**: The international story is really compelling. Remember, about 70% of their business comes from outside the US, so these wins matter. But Alex, I want to pivot to something that came up in the Q&A that I think investors should pay attention to - the regulatory environment.

**ALEX**: Oh yes, the Credit Card Competition Act discussion. Miebach was pretty direct about this - he called it a "race to the bottom for the cheapest network option, but not the safest." His argument is that there's been little progress on the bill since 2023, and there's united opposition because it takes payment choice away from consumers and could create cybersecurity risks.

**JORDAN**: And there was also discussion about the potential 10% interest rate cap on credit cards. While Mastercard doesn't set interest rates, Miebach acknowledged they're actively engaged in industry discussions about affordability. He emphasized the unintended consequences - like potentially cutting off credit access for vulnerable consumers who need it most.

**ALEX**: T

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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 Lam Research's Q2 2026 earnings call. Before we get started, I want to remind our listeners 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, what a quarter for Lam Research! The semiconductor equipment maker absolutely crushed it with record revenues of $5.34 billion - that's their tenth consecutive quarter of growth. They beat the midpoint of guidance and exceeded expectations across the board.

ALEX: The numbers really tell the story here. For the full year 2025, they hit record revenues of $20.6 billion, up 27% year-over-year. But what's even more impressive is the profitability - gross margins of 49.9%, operating margins of 34.1%, and earnings per share of $4.89, up 49% from the prior year.

JORDAN: And looking ahead, CEO Tim Archer and CFO Doug Bettinger painted a picture of an industry that's absolutely on fire. They're projecting wafer fabrication equipment spending - that's WFE - to jump from about $110 billion in 2025 to $135 billion in 2026. That's roughly 23% growth!

ALEX: But here's the fascinating part - and this came up multiple times in the Q&A - the industry is actually constrained by clean room space shortages. Tim Archer mentioned that chipmakers are essentially sold out, which is creating this pent-up demand situation.

JORDAN: Right, it's almost like a luxury problem to have. The demand is there, the orders are there, but customers literally don't have the physical space to install all the equipment they want. Doug Bettinger mentioned they expect 2026 to be "second-half weighted" because of these constraints, with growth ramping as more clean room space comes online.

ALEX: The AI boom is really driving everything here. Lam is particularly well-positioned because AI chips require more complex manufacturing processes - specifically more deposition and etching, which is exactly what Lam specializes in. Archer talked about how they're seeing accelerated adoption of advanced technologies like gate-all-around transistors and 3D advanced packaging.

JORDAN: One product that really stood out was their Aqara conductor etch system. They've doubled its installed base over the past year and are winning production contracts for the most advanced chip manufacturing. Tim Archer explained that as critical dimensions keep shrinking - we're talking 10 to 20% smaller with each new technology node - Lam's tools become even more essential.

ALEX: The memory business is particularly interesting. DRAM was a standout, making up 23% of systems revenue, up from 16% in the previous quarter. This is largely driven by high-bandwidth memory or HBM demand for AI applications. But what caught my attention was their advanced packaging business - they expect it to grow more than 40% in 2026.

JORDAN: And then there's NAND flash memory, which has been a bit of a sleeper story. While it was down sequentially in Q2, management is seeing new use cases emerging, particularly for AI inference applications. They mentioned that for every 2-3 million AI accelerators sold, they estimate a one-point increase in NAND bit demand growth.

ALEX: Let's talk about the geographic mix because it's quite telling. China represented 35% of revenue, down from 43% in the prior quarter. Management expects China to be roughly flat year-over-year in 2026, while everywhere else grows substantially. This shift is partly due to regulatory changes but also reflects where the cutting-edge demand is coming from.

JORDAN: The guidance for Q3 2026 shows continued momentum - they're expecting revenue of $5.7 billion, plus or minus $300 million, with gross margins around 49%. What's remarkable is that they're alread

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**Beta Finch Podcast Script: Eli Lilly Q4 2025 Earnings**

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**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 Eli Lilly's blockbuster Q4 2025 results - and folks, when I say blockbuster, I mean it. This pharmaceutical giant just delivered some truly staggering numbers.

But 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**: Thanks Alex. And wow, where do we even start with these numbers? Lilly just reported 45% full-year revenue growth - that's not a typo, folks - forty-five percent. We're talking about $65.2 billion in revenue for 2025, with earnings per share jumping 86% to $24.21.

**ALEX**: It's almost surreal when you see numbers like that from a major pharma company. Jordan, what's driving this incredible performance?

**JORDAN**: It all comes down to one word: incretins. These are the diabetes and obesity drugs that have become absolute juggernauts. Their key products - we're talking Mounjaro, Zepbound, and their international rollouts - generated over $13 billion in Q4 revenue alone and grew 91% compared to the same quarter last year.

**ALEX**: Let's break that down for our listeners. Mounjaro is their diabetes drug, Zepbound is the obesity treatment, but they're essentially the same molecule - tirzepatide - just branded differently for different conditions. And the demand has been absolutely explosive.

**JORDAN**: Exactly. What's fascinating is how they've captured market leadership. In the US, Mounjaro now has over 55% of new prescriptions in the diabetes incretin market, while Zepbound commands nearly 70% share in the branded obesity market. But here's what really caught my attention - they're not just winning in the US anymore.

**ALEX**: Right, their international business has been crushing it. CEO David Ricks mentioned they're now the incretin market share leader outside the US as well. That's a huge development because historically, US pharma companies have struggled to replicate their domestic success internationally, especially in obesity treatments.

**JORDAN**: And they're not slowing down. Looking ahead to 2026, management guided to revenue between $80-83 billion. That's another 25% growth at the midpoint. But here's where it gets interesting - they're expecting significant pricing headwinds.

**ALEX**: This is crucial for investors to understand. Lilly is projecting price declines in the low-to-mid teens for 2026. That's a massive headwind, but they believe volume growth will more than offset it.

**JORDAN**: The pricing pressure comes from several factors. First, they struck a deal with the US government to provide obesity medicines to Medicare patients for just $50 per month out-of-pocket starting no later than July 1st. That's huge for patient access but means lower prices for Lilly.

**ALEX**: They're also facing competition from oral versions of these drugs. During the call, they discussed launching their own oral obesity treatment, orforglipron, which they expect to get FDA approval for in Q2 2026.

**JORDAN**: The oral competition point is really interesting. When Novo Nordisk launched oral Wegovy recently, instead of cannibalizing existing injectable sales, it actually expanded the overall market. Lilly's management seems confident this trend will continue - that oral options bring new patients into treatment rather than just switching existing ones.

**ALEX**: Let's talk about their direct-to-consumer business because this is revolutionary for pharma. They've reached 1 million patients on their US direct-to-patient platform. Think about that - patients are buying prescription obesity drugs directly from the manufacturer, often payin

This episode includes AI-generated content.