Earnings Volatility Watch: Oracle And Adobe Report, But the Wild Swings Belong to Smaller Names
Oracle and Adobe headline the week, both down about 20% in 2026, yet the biggest implied earnings moves belong to InnovAge, SailPoint and eight others.
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Top analysts change outlook on top names: BMO, Chardan, Rosenblatt, Susquehanna, Evercore, Deutsche Bank, Baird, Stephens & Co.
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Oracle and Adobe headline the week, both down about 20% in 2026, yet the biggest implied earnings moves belong to InnovAge, SailPoint and eight others.
Kratos Defense (KTOS) has underperformed the aerospace-defense industry by 37% year-to-date despite securing major defense contracts worth $55+ million and projecting strong EPS growth of 50.91% and 37.06% for 2026-2027. However, supply-chain disruptions, a low 4.54% ROE, and recent stock weakness suggest new investors should wait for better entry points, though current holders may continue holding given strong earnings momentum.
Cramer favors Howmet, remains cautious on AeroVironment, Rocket, AtaiBeckley and MP Materials, citing competition and limited upside.
AeroVironment won a $464.8 million Army contract to deliver dozens of LOCUST X3 laser weapon systems for layered counter-UAS defense.
The Cheesecake Factory (CAKE) has surged 70.1% over three months, significantly outperforming the restaurant industry. The rally is driven by positive traffic growth of 2.7%, menu innovation, strong digital engagement through its Cheesecake Rewards app, and margin expansion to 20%. Q2 2026 revenues exceeded $1 billion for the first time with adjusted EPS jumping 24% year-over-year. Analysts have raised 2026 and 2027 earnings estimates, with the stock trading at a reasonable valuation relative to peers.