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European benchmarks began the week with gains. Oil and gold prices increased, but the euro weakened against the dollar. Sentiment was influenced by OPEC+’s decision to pause production hikes in the first quarter of next year, which led to a modest rise in oil prices as fears of oversupply eased. Gains were, however, mostly lost by late morning.

The international benchmark, Brent crude futures, traded at $64.76, while US West Texas Intermediate cost $60.92 a barrel.

Alongside pauses in the new year, OPEC+ countries agreed on Sunday to increase output by a small 137,000 barrels per day in December, maintaining the pace set for October and November.

Meanwhile, investors expect fresh Western sanctions on Russia, targeting Rosneft and Lukoil, to hinder the country’s ability to boost production further.

At the same time, major Western oil companies are benefitting from the disrupted supply of Russian refined fuels due to attacks and sanctions. Refining margins have risen substantially, giving the oil majors a boost. Both BP and Shell share prices were slightly up on Monday before noon in Europe.

“The decision by producers’ cartel OPEC+ to pause further output hikes at the start of next year, amid concerns about a glut of supply, helped give oil prices a lift and, in turn, boosted UK market heavyweights BP and Shell,” said AJ Bell investment director Russ Mould.

The movements also came as BP announced it had agreed to divest stakes in US shale assets to Sixth Street investment firm on Monday.

Winners in Europe

At 11:00 CET, the UK’s FTSE 100 was up by a few points. The DAX in Frankfurt was leading the gains, up 0.8% after an initial stutter. The CAC 40 in Paris started climbing, reaching gains of nearly 0.2%. The lift in France came despite national budget uncertainties and the release of negative PMI data, which showed that the country’s manufacturing sector was still contracting in October.

US futures were positive around the same time, rising between 0.1% and 0.5%.

Meanwhile, the earnings season continues. A number of European companies are reporting this week, including AstraZeneca, BP, BMW, and Commerzbank.

Ryanair opened the week by posting stronger-than-expected results for the first half of its financial year, spanning April to September. Revenues rose 13% to €9.82bn, as traffic grew 3% and fares increased by 13%. Over the same period, profit rose by 42% year-on-year to €2.54bn, driven by a strong Easter season.

The airline’s shares were up 2.90% in Dublin at around midday.

Looking ahead, Ryanair’s outspoken CEO Michael O’Leary criticised countries in Europe where airlines face high taxes, including environmental duties. In an interview with CNBC, he threatened to move capacity outside the UK should the new budget include such a levy.

“Ryanair is also one of several airline operators with an eagle eye on taxes and costs. It is no longer putting up with unfavourable tax systems, preferring to switch flights and routes to less punitive locations,” Mould commented.

In other markets, the euro weakened against the US dollar by more than 0.2%, hitting a rate of $1.1517 by 11:00 CET. At the same time, the Japanese yen and the British pound were also losing ground against the greenback, with the dollar trading at ¥154.15 and the pound costing $1.3136.

Gold traded just above $4,000, rising slightly by 0.3%.

Published on 29/10/2025 – 11:09 GMT+1
•Updated
11:11

Nvidia shares continued their dramatic rise this week as investors banked on an easing of semiconductor trade restrictions between the US and China.

Ahead of a meeting with Chinese President Xi Jinping on Thursday, US President Donald Trump said he planned to discuss Nvidia’s advanced Blackwell artificial intelligence chip with Xi.

“We’ll be speaking about Blackwell, it’s the super duper chip,” he told reporters on Wednesday.

The president didn’t elaborate on specific policy aims, although he said he was “very optimistic” about the meeting with his Chinese counterpart.

By around 11:00 CET, Nvidia shares had jumped over 3% in pre-market trading, bringing the firm closer to a $5 trillion market capitalisation.

Semiconductors have been a key point of contention between the US and China as both nations seek to lead on advanced technologies such as AI.

The tiny chips, used to power a range of electronic devices from smartphones to medical equipment, are essential to this ambition. Since 2022, the US has therefore restricted Nvidia’s sales of advanced chips to China for national security reasons.

Trump has flip-flopped on export controls since his arrival in the White House, first restricting and then approving sales of Nvidia’s H20 AI chip to China. Nvidia designed the H20 specifically for the Chinese market to comply with Biden-era export curbs, although the Trump administration previously said it was concerned the tech could be used for military purposes.

With regard to the Blackwell processor, Trump suggested months ago that he would consider allowing Nvidia to export a downgraded version of the chip to China.

Progress on such a proposal would come as a relief to Nvidia CEO Jensen Huang, who has long criticised US restrictions. Huang has notably argued that such curbs are boosting China’s AI capabilities as the Chinese market is forced to become less reliant on US products.

It seems that such logic is already understood in Beijing, even as the US softens its stance. After Washington gave the green light to H20 exports, China’s regulator banned the country’s biggest tech companies from buying Nvidia’s artificial intelligence chips.

“The president has licensed us to ship to China, but China has blocked us from being able to ship to China,” Huang said at a Nvidia event this week in Washington. “They’ve made it very clear that they don’t want Nvidia to be there right now.”

In a document released by Beijing on Tuesday, the Communist party reiterated the importance of self-sufficiency, calling for “extraordinary measures” to achieve “decisive breakthroughs” in technologies such as semiconductors.

“The most important factor in promoting high-quality development is to accelerate high-level scientific and technological self-reliance,” Xi said in a speech released by state news agency Xinhua.

While it’s possible that Chinese restrictions on Nvidia chips could be a long-lasting policy, experts have suggested that the move may be a bargaining chip in trade negotiations with Washington.

Such policy U-turns are creating uncertainty for investors despite the fact that Nvidia shares have risen roughly 50% this year, driven higher by AI ambitions.

Netflix on Tuesday said its third-quarter revenue jumped 17% to $11.5 billion, powered by the hit animated film “KPop Demon Hunters.”

The Los Gatos-based streamer reported a net income of $2.5 billion during the third quarter, up 8% from the same period a year ago but well below the $3 billion analysts had projected, according to FactSet.

Revenue was in line with analyst estimates and was boosted by increased subscriptions, pricing adjustments and more ad revenue.

The company said it incurred a $619-million expense related to a dispute with Brazilian tax authorities.

“Absent this expense, we would have exceeded our Q3’25 operating margin forecast,” Netflix said in a letter to shareholders on Tuesday. “We don’t expect this matter to have a material impact on future results.”

Netflix shares, which closed Tuesday at $1,241.35, fell 5% in after-hours trading.

As it continues to dominate the streaming market with more than 301 million subscribers, Netflix has been investing in a diverse slate of content, including new movies rolling out in the fourth quarter such as Guillermo del Toro’s “Frankenstein,” as well as the final season of sci-fi hit “Stranger Things” and family-friendly games for the TV such as Boggle.

“KPop Demon Hunters” has garnered more than 325 million views in its first 91 days on the service. The movie, about a trio of powerful singers who hunt demons, was released in June.

It bested 2021 action film “Red Notice,” which had been previously its most watched film in its first 91 days on Netflix with 230.9 million views.

On Tuesday, Netflix also announced a licensing deal with toymakers Hasbro Inc. and Mattel Inc. to make toys including dolls, action figures, youth electronics and other items related to “KPop Demon Hunters.”

Popular TV shows launched in the third quarter include the second season of the Addams family spinoff series “Wednesday” and the second season of drama “My Life With the Walter Boys.”

“When you have a hit the size of ‘KPop Demon Hunters,’ it stirs the imagination of where you can take this,” said Ted Sarandos, co-chief executive of Netflix, in an earnings presentation.

He said the film benefited from Netflix’s platform, allowing superfans to repeat view it and make it appealing for audiences to watch in theaters as well. “We believe this film, ‘KPop Demon Hunters,’ actually worked because it was released on Netflix first,” Sarandos added.

The company said in the fourth quarter it expects revenue to grow another 17% due to growth in subscriptions, pricing and ad revenue.

For the full year, Netflix is forecasting revenue of $45.1 billion, up 16%, and said it is on track to more than double it ad revenue in 2025.

Like other entertainment companies, Netflix has been taking steps to diversify its business in a challenging landscape, as production costs for TV and movies increases and studios consolidate.

“With entertainment industry employment becoming more precarious, Netflix is slyly pivoting its content strategy to rely more on live sports, YouTubers, creators and podcasters,” said Ross Benes, a senior analyst with research firm Emarketer in a statement.

But some investors still remain skeptical about the future of subscription streaming services, as the technology behind video generation tools powered by AI get more sophisticated, making it easier to replicate visual effects and customize content to viewers.

“Netflix’s core lay-back easy-to-watch scripted content is potentially most at risk by the emergence of generative AI compared to peers,” said John Conca, analyst with investment research firm Third Bridge. “Netflix will need to channel its earlier days and find a way to remain nimble, even though it’s now the 800-pound gorilla in this space to deal with this threat.”

On Tuesday, Netflix said it is using generative AI to improve the quality of its recommendations and content discovery on its platform. Creators on Netflix are also using AI tools for their projects, including filmmakers for comedy “Happy Gilmore 2” using generative AI and volumetric capture technology to de-age characters.

MillerKnoll (MLKN -4.42%) reported first-quarter fiscal 2026 results on September 23, 2025, with consolidated net sales of $956 million, up 10.9% year over year, and adjusted earnings per share (EPS) rising 25% to $0.45. The quarter featured strong execution in contract segments, ongoing tariff headwinds, and an accelerated U.S. retail expansion.

The following insights highlight key drivers and risks shaping the long-term investment thesis.

Gross margin expansion signals improved execution

Gross margin reached 38.5% despite $8 million in net tariff-related costs, and adjusted operating margin in North America Contract expanded 200 basis points year over year to 11.4%. The company generated $9 million in operating cash flow, ended the period with $481 million in liquidity, and maintained a net debt to EBITDA ratio of 2.92 turns, well below covenant thresholds.

“In the first quarter, we generated adjusted earnings of $0.45 per share, significantly outperforming the midpoint of our guidance and 25% ahead of prior year, driven by better than expected sales and strong gross margin performance that benefited from leverage on our sales growth. Consolidated net sales in the first quarter were $956 million, above the midpoint of our guide. Versus prior year, net sales were up 10.9% on a reported basis and up 10% organically, driven by strength in all segments of the business.”
— Kevin Veltman, Interim Chief Financial Officer

This margin outperformance demonstrates management’s ability to drive profitable top-line growth and cost discipline in a challenging macro and tariff environment, reinforcing MillerKnoll’s business model resiliency.

Retail expansion and new products fuel growth

MillerKnoll opened four new retail stores in North America and plans to open a total of 12 to 15 U.S. locations in fiscal 2026, aiming to more than double its DWR (Design Within Reach) and Herman Miller store footprint over several years. New product launches accounted for more than 20% year-over-year order growth in retail, with North America web traffic up 17% and net sales in the region up 7% year over year.

“For the full fiscal year, we anticipate opening a total of 12 to 15 new stores in the U.S., as we execute on our strategy to more than double our DWR and Herman Miller store footprint over the next several years. Onto our retail assortment expansion initiatives. This year, we’re launching 50% more product newness than we did in fiscal 2025. And new product is already positively impacting our performance with new product order growth of over 20% in the quarter. This bodes well for the future.”
— Andi Owen, Chief Executive Officer

This aggressive cadence of retail expansion and product innovation indicates MillerKnoll’s prioritization of omni-channel growth and customer acquisition, supporting a long-term growth thesis.

Pricing actions and tariff mitigation protect margins

Net tariff-related expenses reduced gross margin by $8 million and are expected to pressure next quarter’s results by $2 million to $4 million. Management asserts that mitigation measures, including surcharges and price increases introduced in June, will restore margin in the second half of the fiscal year.

The company’s backlog declined $67 million to $691 million, as previously signaled due to fourth-quarter order pull forwards triggered by announced tariff surcharges and list price changes.

“The point of the net is to say we’ve been working on pricing. We put a surcharge in place. We had a price increase in June as well. And the way it works for us is those take a little while to flow through back and through our contracts with customers. So the net impact in the short term is the $8 million that we called out from a pressure perspective. We expect that to be less in Q2, $2 million to $4 million of net impact. And then when we get into the back half of the year, we believe our pricing mitigation actions will be offsetting those costs based on the current tariff environment.”
— Kevin Veltman, Interim Chief Financial Officer

Effective pricing and mitigation strategies are critical to offsetting external cost pressures and maintaining profitability as tariffs persist.

Looking ahead

Management expects net sales between $926 million and $966 million, gross margin of 37.6% to 38.6%, and adjusted EPS between $0.38 and $0.44 for the next quarter. Tariff impacts are forecast to reduce gross margin by $2 million to $4 million, but company actions are anticipated to fully offset these costs in the second half of the year. No full-year margin or EPS guidance was provided due to macro uncertainty.

enGene (ENGN -3.50%), a clinical-stage gene therapy company advancing treatments for bladder cancer, released its fiscal 2025 third-quarter earnings on Sept. 11, 2025. The period was highlighted by key clinical and regulatory milestones, including reaching the target enrollment for its pivotal LEGEND trial cohort, and receiving Regenerative Medicine Advanced Therapy (RMAT) status from the Food and Drug Administration (FDA) for its lead therapy, detalimogene (EG-70).

Net losses more than doubled year over year, while operating expenses increased by approximately 78%, but the company reported a strong cash position expected to last into 2027. The absence of new clinical efficacy data and lack of explicit commercial guidance leave some open questions, but overall, the quarter brought notable progress at the clinical and regulatory levels.

Source: enGene. Note: Fiscal 2025’s third quarter ended July 31, 2025. Fiscal 2024’s Q3 ended July 31, 2024.

About enGene: Fast-Moving Clinical Gene Therapy Business

enGene focuses on the research and development of gene therapies for urologic cancers, with a principal emphasis on non-muscle invasive bladder cancer (NMIBC). Its lead investigational therapy, detalimogene (EG-70), is a non-viral gene therapy intended to trigger a localized anti-tumor immune response in patients whose cancer has not responded to standard Bacillus Calmette-Guérin (BCG) treatment. As a relatively young company, having been founded in 2023, enGene has yet to generate product revenues and remains firmly in the clinical development phase.

The company’s strategy rests on successfully developing and eventually gaining approval for EG-70 for high-risk, BCG-unresponsive NMIBC. This focus reflects a critical unmet need in bladder cancer, particularly for patients with carcinoma in-situ who have limited treatment options. Key to success will be the therapy’s final clinical data, successful navigation of regulatory review, the ability to differentiate the product from other therapies, and readiness to scale and commercialize once approvals are achieved.

Quarter in Review: Trial Milestones, Regulatory Wins, and Costs on the Rise

During the quarter, enGene reached several critical development milestones for its lead product candidate. Most notably, it achieved full target enrollment for the pivotal cohort of its LEGEND study, specifically enrolling 100 patients with high-risk NMIBC carcinoma in-situ whose disease did not respond to BCG. Management confirmed that this sets up for a pivotal data update in the fourth quarter of 2025 and a planned Biologic License Application (BLA) filing in the second half of 2026. These steps align tightly with previous goals and management commentary.

The quarter also brought a significant regulatory achievement as detalimogene received Regenerative Medicine Advanced Therapy (RMAT) status from the Food and Drug Administration. RMAT designation confers regulatory advantages such as earlier and more frequent agency interactions, as well as the possibility of rolling submission and priority review. This follows an earlier Fast Track designation, together expediting the therapy’s path toward potential approval. While the company achieved these procedural milestones, the quarter did not include new disclosures related to efficacy or safety results from its trial. Management reiterated that updated clinical data should be available in late 2025.

On the financial front, Total operating expenses climbed sharply to $29.9 million, an increase of approximately 78% compared to the same period last year. The main drivers were an $11.0 million increase in research and development spending, driven by higher manufacturing and clinical trial costs as well as personnel expansion. General and administrative costs rose by $2.2 million, linked to workforce expansion and greater reliance on professional services in preparation for commercialization. Net loss also widened substantially, reflecting the increased investment required to advance the clinical and regulatory agenda for the three months ended July 31, 2025.

Supporting its organizational build, enGene made several senior-level hires in regulatory and clinical leadership roles. These hires underscore its preparations to transition from a pure research organization into one that can support regulatory filings and future commercial activity. However, detailed plans for manufacturing scalability and go-to-market structures have not been disclosed.

Product Platform and Strategic Focus

Detalimogene (EG-70) is a non-viral gene therapy, administered directly into the bladder to stimulate the immune system to fight cancer cells. The technology uses enGene’s Dually Derivatized Oligochitosan (DDX) platform, which aims to provide localized gene delivery without the use of viruses, potentially avoiding some risks and complexities associated with viral-based therapies. enGene highlights this approach as well-suited to minimizing storage and delivery barriers.

The company continues to focus resources on bringing detalimogene from late-stage clinical development through regulatory review. While enGene points to the high unmet medical need, it has not yet disclosed how its candidate compares against other agents on efficacy, safety, or overall patient outcomes, leaving market positioning an open question.

Looking Ahead: Upcoming Data and Financial Perspective

Management’s outlook centers on future milestones. enGene expects to report updated pivotal cohort data from its LEGEND trial in the fourth quarter of 2025, followed by a BLA regulatory submission in the second half of 2026. No formal guidance was provided about future operating expenses, revenue expectations, or other financial performance metrics.

The company noted that its $224.9 million in cash and marketable securities will fund operations, debt obligations, and capital expenditures into 2027. ENGN does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Daktronics(DAKT 24.18%) reported fiscal first quarter ended August 2, 2025, results on September 10, 2025, delivering net income of $16.5 million and 35% year-over-year order growth, with backlog rising to $360 million and operating cash flow up 34% year-over-year. Key highlights included winning all three major league live event projects bid in the quarter, achieving record high school segment orders, and continued execution of a multi-year business and digital transformation. The following analysis examines Daktronics’ sustained gross margin expansion, robust capital deployment, and advancing transformation initiatives—each with concrete implications for long-term investors.

Gross margin expansion benefits from mix and operational leverage

While the quarter included a favorable revenue mix led by high-profit segments such as High School Park and Recreation (HSPR), margin gains were also supported by improved cost controls and volume-driven fixed cost absorption. Tariffs contributed a $6 million headwind compared to $1 million in fiscal Q1 2025.

“We did have a mixed benefit as I alluded to. So you know, going forward, it depends on the mix is gonna look like. And know, we’ll have to see about that. We did as Brad mentioned, continue to have better alignment between particularly, our manufacturing expenses and revenue production. That helped, and that’s, you know, where we intend to operate going forward. We had a small benefit this quarter. I shouldn’t say benefit. We had a benefit. We had a cost a year ago in the margin from some unusually high warranty expenses, which normalized this quarter. So it’s a little bit of that. But yeah, I mean, you know, what we saw in the quarter was a combination of kind of fixed cost leverage on revenue as well as the mix effect that I just mentioned.”
— Howard Atkins, Acting Chief Financial Officer

Sustained margin strength demonstrates that Daktronics’ ongoing operational initiatives are counteracting tariff headwinds and normalizing warranty costs.

Daktronics accelerates capital deployment and balance sheet strength

Fiscal first quarter-end cash of $137 million increased 7% year-over-year, even after $10.7 million in share repurchases at $16.43 per share; no debt was drawn against the company’s credit line. Operating cash flow surged to $26 million, while inventory-to-sales stood at 49% as management positions for strong order fulfillment ahead.

“We ended the first quarter with a cash balance of $137 million an increase of 7% from 2025 and that’s after taking into account $10.7 million worth of shares repurchased in the quarter and the conversion of the convertible note since last year. Our operating cash flow is $26 million up 34% on solid earnings and the completion of our initiative to better utilize spare inventory. Inventory to sales ratio is now at 49%. Inventory levels are likely to increase somewhat. Perhaps as we position for fulfillment of the high backlog. As mentioned, we repurchased $10.7 million worth of shares in the quarter at a volume-weighted average price of 16.43 We have had no borrowings, of course, under the company’s bank line of credit, and none are contemplated.”
— Howard Atkins, Acting Chief Financial Officer

Controlled capital allocation, demonstrated by growing cash and significant buybacks without increasing leverage, provides Daktronics with ample flexibility for continued strategic investment, opportunistic share repurchases, or selective M&A, enhancing long-term shareholder value.

Transformation plan drives operating progress and targets premium financial returns

Daktronics is executing a multi-year transformation blending value-based pricing, focused product innovation, and digital upgrades in operations and service. IT and product development spending reached $17.2 million, supporting efforts to advance corporate performance management, subscription platforms, and new product releases.

“We are targeting performance aligned with higher operating margins of 10% to 12% on average over time, operating in the top quartile ROIC target of 17% to 20%, and achieving a compound annual growth rate of seven to 10% by fiscal year 2028. Our plan is in place. We’re executing on it, and we have work to do. The team is committed to its success. We remain on track with the many, many objectives initiatives and most importantly, on track with our growth and margin objectives.”
— Howard Atkins, Acting Chief Financial Officer

Pursuit of top-quartile return on invested capital (ROIC) and double-digit margin targets—with clear investment in digital, SaaS, and new products—signals a probability of sustained value creation if execution stays on pace, directly supporting a long-term compound earnings growth thesis.

Looking Ahead

For fiscal 2026, management projects sustained robust demand across core segments and points to a sizable order backlog of $360 million as a revenue tailwind for future periods, while maintaining vigilance on tariff volatility and supply chain constraints. Transformation targets remain in place: achieving average operating margins of 10%-12%, ROIC of 17%-20%, and 7%-10% compound annual growth rate (CAGR) through fiscal 2028. No updated quantitative short-term guidance was provided this quarter.

While Zscaler (ZS 2.14%) stock has had a strong run this year, the momentum shifted after the cybersecurity company reported its fiscal 2025 fourth-quarter results following the close of trading Tuesday. Though the period’s numbers were good, and management issued upbeat guidance, the stock sank 4% in Wednesday trading. However, even after the pullback, the stock is still up by about 50% year to date.

Let’s take a closer look at the company’s results and guidance to see if Wednesday’s dip has created a buying opportunity.

An upbeat outlook

While endpoint cybersecurity companies like CrowdStrike (CRWD 1.18%) and Palo Alto Networks (PANW 0.99%) tend to get more attention from investors, Zscaler has carved out an important niche in a fast-growing part of the cybersecurity sector. It’s focused on zero trust security, which is built around the idea that no individual user or device should automatically be trusted, even if it was previously found to be trustworthy. That means that all users’ access to various platforms must be verified, authorized, and then regularly revalidated.

The rise of artificial intelligence (AI) and AI agents, meanwhile, has only added to the complexity of the cyberthreat landscape. This is leading to growth in newer areas for Zscaler, including AI Security, Zero Trust Everywhere, and Data Security Everywhere, which combined to exceed $1 billion in annual recurring revenue (ARR) in its fiscal Q4, which ended July 31. The company is also working on solutions to secure agent-to-agent and agent-to-application communications.

All of this helped Zscaler achieve robust revenue growth. In the quarter, its revenue climbed 21% year over year to $719.2 million, easily surpassing management’s prior guidance for revenue of between $705 million and $707 million. Adjusted earnings per share (EPS) climbed to $0.89 from $0.72 a year earlier. That was also well ahead of the company’s $0.79 to $0.80 forecast.

Zscaler generated operating cash flow of $250.6 million and free cash flow of $171.9 million. It ended the period with $3.6 billion in cash and short-term investments on its balance sheet and $1.7 billion in debt in the form of convertible notes. It also completed the acquisition of managed detection and response specialist Red Canary for an undisclosed sum right after the quarter ended, so that cash position is likely to come down.

Image source: Getty Images

Zscalar’s calculated billings — the amount invoiced to customers, and a potential indicator of future revenue growth — surged by 32% year over year to $1.2 billion. Deferred revenue — money the company has received for services that it has not yet delivered — jumped by 30% to $2.47 billion. Both these metrics are indications that revenue growth could begin to accelerate in the new fiscal year.

Management forecast that fiscal 2026 revenue would be between $3.265 billion and $3.284 billion, which would amount to approximately 22% to 23% growth. Red Canary is projected to add about $90 million in revenue. ARR is projected to be between $3.676 billion and $3.698 billion, also equal to growth of 22% to 23%. The guidance range for adjusted EPS was $3.64 to $3.68.

For its fiscal 2026’s first quarter, Zscaler guided for revenue of between $772 million and $774 million with adjusted EPS of between $0.85 and $0.86.

Data source: Zscaler.

Is it time to buy the dip?

Zscaler turned in a solid quarter, but what is even more promising is that metrics such as calculated billings and deferred revenue suggest that revenue growth should nicely accelerate in fiscal 2026. Moreover, while the company issued an upbeat outlook, historically, it tends to guide very conservatively, so revenue growth in the mid-to-high 20% range is possible.

The company is seeing nice momentum in new growth vectors, and the advent of AI agents could only add to this. Meanwhile, Zscaler has also taken a page out of CrowdStrike’s book by introducing its own flexible payment program, Z-Flex. Such programs let customers pay for and deploy modules only when needed. Zscalar introduced Z-Flex two quarters ago and saw a 50% increase in flex billings in fiscal Q4. This could be another growth driver for Zscaler.

Zscaler trades today at a forward price-to-sales multiple of about 13 based on analysts’ consensus estimates for the current fiscal year. Given that I think its revenue growth is likely to be around 25%, I think that is a fair multiple, but the stock isn’t in the bargain bin. Overall, given its valuation and prospects, I view Zscaler as a solid stock to hold although I’d prefer to be a new buyer after a further dip in price.

Agilent Technologies (A 0.33%), a global leader in laboratory instruments and scientific solutions for life sciences and diagnostics, released its Q3 fiscal 2025 results on Aug. 27, 2025. The company delivered revenue of $1.74 billion, coming in over its own projected revenue guidance and achieving a 10.1% increase over the prior year period. Non-GAAP earnings per share were $1.37, which was at the high end of management’s forecast and matched analyst expectations. Profitability also improved compared to last year.

However, operating margins narrowed in all business units due to increased costs, including tariffs and higher operating expenses. Overall, the quarter demonstrated broad-based growth across the company, with management responding by raising both annual revenue and profit forecasts for fiscal 2025.

What does Agilent Technologies do?

Agilent Technologies provides analytical instruments, software, and consumables for laboratories worldwide. Its customers work primarily in life sciences, pharmaceutical research, diagnostics, food testing, and chemical analysis. The company’s products help scientists analyze everything from new medicines to food safety and environmental samples. Its technology range includes mass spectrometry systems, which identify molecular structures; liquid chromatography platforms, which separate chemical mixtures; and automated pathology diagnostics used in hospitals.

It operates through three main segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. It has strengthened its position through sustained investment in new technologies, a broad portfolio of instruments and software, and a global footprint. Key drivers of success include technological leadership, regulatory compliance, access to emerging markets, and the flexibility to reorganize segments in line with growth opportunities.

Quarter in review: Growth, margins, and market trends

During the quarter, Agilent achieved notable top-line gains, with revenue growing 10.1% year over year, well above its own guidance. All three major business units and every geographic region posted year-over-year increases in sales, underscoring both resilient demand and the effectiveness of its execution initiatives.

The Life Sciences and Diagnostics segment, which includes laboratory instruments and automated diagnostic tools, posted the fastest growth at 14%. This reflects demand for technologies used in scientific research, biopharmaceuticals, and hospital labs. The Applied Markets unit, which provides testing systems for food, environmental, and chemical analysis, and Agilent CrossLab, which offers services and consumables that support overall laboratory workflow, also saw revenue increases.

The broad-based growth was coupled with a sequential and year-over-year decline in operating margins across segments. In the Life Sciences and Diagnostics group, higher sales were accompanied by a decrease in both gross and operating margins, with gross margin down to 50.5% from 54.4% a year ago.

The CrossLab segment’s operating margin slipped to 33.3%, down from 35.9% a year earlier, while Applied Markets diminished as well. Tariffs and higher costs, including an increase in the cost of goods sold and operational expenses, were cited as factors affecting profitability. Even though overall operating income improved in dollar terms, the reduced operating margin as a percentage of revenue points to elevated cost pressures that management is committed to addressing.

The company reported both strong cash and a solid balance sheet, with operating cash flow for the first nine months of fiscal 2025 totaling $1,014 million, down 20% compared to the same period a year earlier. The company noted that the cash flow decrease was mainly due to inventory building as a strategy to manage ongoing supply chain and tariff risks, as well as higher capital spending. Cash and cash equivalents rose to $1.54 billion as of the end of the quarter. Research and development spending decreased 12.6% compared to the same period last year.

The company continued its regular share repurchase and dividend programs.

What’s new and what stands out this quarter?

The most significant theme was continued strong demand from biopharma firms and hospitals in both developed and emerging markets. The Life Sciences and Diagnostics segment in particular, linked to testing tools and systems for analyzing biological samples and automating clinical workflows, delivered both the fastest growth rate and the largest sales increase. Applied Markets, supplying instruments for food safety, environmental, and forensics labs, and CrossLab, focused on laboratory consumables and support, both contributed to broad revenue gains.

While the quarter was marked by revenue growth, each segment also experienced some profit margin compression. This was attributed to ongoing tariff exposure and increases in operating expenses, including supply chain investment. To hedge against these risks, Agilent continued its Ignite Transformation initiative, aimed at driving operational efficiencies, expanding its innovation pipeline, and mitigating cost increases. While Ignite has helped offset some headwinds, cost inflation and tariffs have outpaced some efficiency benefits, as reflected in lower segment gross and operating margins. Management indicated it would continue focusing on price realization, localized manufacturing, and supply chain adjustments in future quarters.

Management reaffirmed continued investment in new technologies, including advanced mass spectrometry products, which are devices for analyzing molecules. Prior quarters emphasized portfolio expansion in life sciences instrumentation and informatics, and the company reiterated its commitment to innovation. All global regions contributed to growth.

There were no new sustainability or environmental disclosures in the quarter. The company’s public goal to achieve net-zero greenhouse gas emissions by 2050 remains in place, though no new progress updates were provided. Agilent reported no regulatory compliance issues or fines; compliance remains a critical factor because its diagnostic and analytical tools must meet health and safety regulations in all relevant markets.

Looking ahead: Guidance and key areas for investors

Management raised its full-year guidance for fiscal 2025, now expecting revenue of $6.91–$6.93 billion and non-GAAP earnings per share of $5.56–$5.59, both meaningfully higher than previous projections. For the fourth quarter of fiscal 2025, Agilent projects revenue between $1.822 billion and $1.842 billion, with non-GAAP earnings between $1.57 and $1.60 per share. This stronger guidance points to continued broad demand across end markets and signals confidence in ongoing portfolio and geographic expansion.

Investors should keep an eye on margin trends, as inflation, tariffs, and supply chain dynamics continue to present risks to profitability. The company is prioritizing operational resilience through supply chain strategy, efficiency programs like Ignite, and targeted price increases. Emerging markets, new product launches, and ongoing regulatory compliance will remain important watchpoints.

Agilent Technologies pays a regular dividend and continued its dividend program during the quarter.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Napco Security Technologies (NSSC 4.26%), a leader in commercial and residential electronic security solutions, reported mixed results in its earnings release on August 25, 2025. Recurring Service Revenue (RSR) was a standout, but equipment sales and gross margins both declined year-over-year. Net income (GAAP) and diluted earnings per share (GAAP) also dropped. This quarter marked stabilizing trends in some areas but ongoing pressure in others.

Business Overview and Key Focus Areas

Napco Security Technologies designs and manufactures security hardware and software for commercial, industrial, and residential buildings. Its products include intrusion alarms, access control hardware, electronic locks, and monitoring platforms that support safety and communication needs.

The company’s most important focus lately has been on building up recurring service revenue, which delivers predictable, high-margin income. This service is tied to cellular connectivity subscriptions for things like security alarms and remote management. Innovation and R&D spending continue to support this shift, while cost efficiency from Dominican Republic-based manufacturing helps protect margins. Increasing sales to the school safety market and providing complete, integrated security solutions remain top priorities for the business.

Fourth Quarter Developments: Revenue Trends, Product Mix, and Margins

GAAP revenue edged up just under 1% from the prior year, reaching $50.7 million. Recurring Service Revenue stood out with a 10% increase to $22.4 million. This revenue comes from monthly or annual charges for services like StarLink radios, which provide cellular communication and alarm connection, as well as the newly launched MVP Access platform for cloud-based entry control. RSR now makes up nearly half of total sales and enjoys a gross margin of 91%—by far the most profitable segment in the portfolio.

In contrast, equipment sales—revenue from physical security products such as alarms and electronic door locks—declined 5% year over year to $28.3 million. The company did manage a 27% sequential gain in equipment sales versus the previous quarter, suggesting distributors may be starting to rebuild inventory. However, the full-year picture shows a notable 16% decline in equipment sales for FY2025. Management cited ongoing distributor “destocking”—meaning dealers bought less to use up old inventory—as a reason for weak hardware revenues in Q3 FY2025. This hurt overall gross profits, even as RSR improved.

Gross profit margin dropped to 52.8% from 55.3% compared to the prior year. The company maintained its industry-leading RSR margin at 91%. Selling, general, and administrative expenses grew, including higher R&D and legal costs. Net income fell 14 % to $11.6 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization—a measure of core operating performance) shrank 7.6 %.

Despite these profit headwinds, Napco made significant improvements in operating cash flow, which reached $53.5 million (GAAP) for FY2025, thanks to reductions in inventory. The balance sheet remains solid, with $83.1 million in cash and no debt as of June 30, 2025. The company also highlighted its use of cash for shareholder returns: during FY2025, it paid $18.6 million in dividends and spent $36.8 million on stock buybacks.

The quarter included the public launch of the MVP Access platform, a cloud-based system enabling remote and recurring management of building and door security. This product launch is important because it expands the recurring service base, which management hopes will soon surpass the 50% threshold of total revenue, compared to 48% for FY2025. Investments in R&D also increased, reaching $12.6 million for FY2025, or almost 7% of net sales—supporting a pipeline of new products and features.

Looking Ahead: Guidance and Investor Watchpoints

Management maintained its dividend at $0.14 per share, with no increase or decrease for the coming period. It did not provide specific sales or earnings guidance for fiscal 2026, only indicating optimism about improving hardware demand and ongoing strength in recurring services. Continued pressure on EPS and margins means recovery in hardware and cost control will be key areas to monitor.

Investors should watch for any major change in equipment order trends, progress in recurring service mix, and signs of margin stabilization in the coming quarters. With no formal forward guidance offered, visibility on the timing of a broader rebound in hardware sales remains limited. NSSC does pay a dividend, which was unchanged at $0.14 per share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Twilio (TWLO 5.25%) is a cloud communications company that’s known for its application programming interfaces (APIs) that help its clients build software tools to remain in touch with their customers through various channels such as voice, text, email, video, and instant messaging. Its growth has accelerated in recent quarters thanks to the integration of artificial intelligence (AI)-focused tools into its communications platforms.

However, Twilio stock has witnessed a lot of volatility on the market this year. It has lost just over 4% of its value in 2025 as of this writing, driven by the company’s mixed quarterly performances. It fell like a rock in February this year, and a similar story unfolded following the release of its second-quarter results on Aug. 7.

Shares of Twilio sank over 19% after its latest report, thanks to disappointing guidance. However, Twilio’s 12-month median price target of $131, as per 30 analysts covering the stock, points toward a 27% jump from current levels. Let’s see why analysts are upbeat about Twilio’s direction in the coming year.

Image source: Getty Images.

Twilio’s growth is accelerating thanks to AI

Twilio reported a 13% year-over-year increase in revenue in Q2. Its earnings grew at a faster pace of 37% to $1.19 per share. It is worth noting that Twilio’s revenue growth has accelerated in the past year.

TWLO Revenue (Quarterly) data by YCharts.

The company’s improving growth profile can be attributed to the stronger growth in its customer base in recent quarters, as well as a jump in spending by existing customers on its solutions. This is evident in the following table.

Data source: Twilio quarterly reports.

The active customer accounts refer to customers from whom Twilio generated at least $5 in revenue in the final month of the quarter. Meanwhile, the dollar-based net expansion rate compares the spending by active customer accounts in a quarter to the spending by those same customers in the year-ago period.

The company is witnessing a nice uptick on both fronts, and this explains why its top- and bottom-line growth have started getting better in recent quarters. The adoption of Twilio’s AI tools is playing a central role in giving its growth a shot in the arm. For instance, the company is witnessing a “surge in voice AI start-ups who are building on Twilio.”

Management points out that it saw an 86% year-over-year increase in the number of customer accounts using its conversational intelligence messaging platform last quarter. Twilio’s conversational intelligence solutions allow its clients to extract and analyze insights from voice calls and chats, convert voice calls into transcripts in real time, summarize conversations, and measure customer sentiment.

Companies can integrate this tool into their communications software with Twilio’s APIs so they can use the data from conversations for improving sales and reducing customer churn. So, it is easy to see why Twilio’s AI communications tools are helping it attract more customers, while also allowing it to win a bigger share of existing customers’ wallets.

Investors need to look past the near-term guidance

Twilio’s Q3 revenue guidance calls for 10% to 11% growth from the year-ago period. That would be a slight deceleration from the growth it reported in the previous quarter. Even the earnings guidance range of $1.01 per share to $1.06 per share doesn’t point toward a significant improvement over the year-ago period’s reading of $1.02 per share.

However, don’t be surprised to see Twilio exceeding its expectations and reporting stronger growth. That’s because the adoption of AI in the cloud-based contact center market is expected to generate a revenue opportunity of $10 billion in 2032, compared to less than $2 billion last year. As a result, Twilio can keep attracting new customers and cross-sell its AI tools to existing ones.

This should lead to an improvement in its bottom line in the future, and this is what analysts are expecting.

TWLO EPS Estimates for Current Fiscal Year data by YCharts.

An improvement in Twilio’s earnings growth could lead the market to reward it with a higher multiple. The stock is trading at 24 times forward earnings, which is a discount to the tech-focused Nasdaq-100 index’s forward earnings multiple of 30 (using the index as a proxy for tech stocks). If Twilio can indeed hit $6.20 per share in earnings in 2027 and trades in line with the index’s forward earnings multiple at that time, its stock price could jump to $186.

That would be an 80% jump from current levels. So, Twilio seems to be in a position to not just hit Wall Street’s price target in the coming year, but deliver stronger gains in the long run. That’s why investors should consider buying this AI stock on the dip, since its weakness shouldn’t last for long.

Social media videos show terrified passengers jumping into sea as flames and black smoke billow from burning vessel.

Three people have died and more than 500 others have been rescued after a ferry caught fire off the Indonesian island of Sulawesi, emergency officials said.

Passengers jumped overboard the KM Barcelona 5, as it sailed from Melonguane port in Talaud Islands district towards the city of Manado, the capital of North Sulawesi province, after the fire broke out on Sunday, said the Indonesian coastguard.

Photos and videos circulated on social media showed terrified passengers, mostly wearing life jackets, jumping into the sea as orange flames and black smoke billowed from the burning vessel.

A video released by the Manado rescue agency showed a coastguard vessel spraying water on the ferry, which was emitting black smoke.

Indonesian authorities previously reported five people died in the accident, but later revised the death toll to three after two passengers initially reported as dead were saved in a hospital, including a two-month-old baby whose lungs were filled with seawater.

At least 568 people were rescued from the ferry, the national search and rescue agency said in a statement on Monday.

A coastguard ship, six rescue vessels and several inflatable boats were deployed in the rescue operation, Franky Pasuna Sihombing, chief of the Manado navy base, told The Associated Press news agency.

According to officials, the blaze is believed to have started on the upper deck.

“Until now, the joint rescue team is still conducting the search and rescue operation because the data is still developing,” Manado rescue agency head George Leo Mercy Randang told the AFP news agency on Monday. “Our post is still open 24 hours a day, in case families want to report about their missing relative.”

One survivor described waking up to smoke filling the passenger deck.

“The air was full of smoke and everyone started panicking,” Johan Rumewo told Kompas TV after being evacuated to Manado port. “I managed to grab a life jacket and jumped into the sea. I floated for about an hour before being rescued.”

The ferry’s log had registered only 280 passengers and 15 crew on board. Local media reported that the ship had a capacity for 600 people.

Marine accidents are a regular occurrence in the Southeast Asian archipelago of about 17,000 islands, in part due to lax safety standards or bad weather.

Sunday’s fire came just weeks after another ferry sank off the popular resort island of Bali due to bad weather, killing at least 19 people.

In March, a boat carrying 16 people capsized in rough waters off Bali, killing an Australian woman and injuring another person. In 2018, more than 150 people drowned when a ferry sank in one of the world’s deepest lakes on Sumatra Island.

Video shows people jumping into the sea as fire engulfs a passenger ship, the KM Barcelona VA, in Indonesia. The national search and rescue agency has begun evacuating the burning vessel near Talise Island, in North Sulawesi Province.

A flight from Majorca Palma Airport to Manchester led to ‘moments of great tension’ as passengers attempted to escape the plane by ‘jumping from its wing’ onto the tarmac

In a worrying turn of events, Ryanair passengers “jumped from the wings” of the plane due to a false fire warning, leaving 18 travellers reportedly injured.

The incident took place just after midnight on July 4 when the Manchester-bound flight from Majorca Palma Airport was halted due to a false fire alert, Ryanair confirmed. The plane was evacuated but it is said to have caused “moments of great tension” with passengers seen jumping from the plane’s wing reportedly “acting out of fear.”

Dramatic footage captured passengers exiting the plane via its wing and jumping onto the tarmac as emergency services, including firefighters and police, responded rapidly. Amid scenes of terrified passengers jumping from the wing in their haste to escape, an airport employee was heard on a walkie-talkie expressing confusion to a colleague, “Do you know the plane has emergency exits?”

He continued, “Plane about to leave from apron ten or eight and now the people are jumping from the wing onto the ground. Something’s happening, something’s happening, they’re evacuating the plane. Now the firefighters are coming.”

READ MORE: Ryanair passengers told to take cardboard boxes on flights

Several passengers sustained injuries during the evacuation before they were escorted back to the terminal. However, most passengers are said to have evacuated the aircraft in a more orderly manner.

Medical emergency coordinators reported that 18 individuals received treatment for “minor injuries”. Six required hospitalisation and three were reportedly taken to Clínica Rotger, a private facility in Palma. The remaining three were admitted to Hospital Quironsalud Palmplanas in the island’s capital.

Ryanair attributed the flight’s disruption to a “false fire warning.” Their statement read: “This flight from Palma to Manchester, on July 4, discontinued take-off due to a false fire warning light indication. Passengers were disembarked using the inflatable slides and returned to the terminal.

“While disembarking, a small number of passengers encountered very minor injuries (ankle sprains, etc.) and crew requested immediate medical assistance.

“To minimise disruption to passengers, we quickly arranged a replacement aircraft to operate this flight, which departed Palma at 07:05 this morning.

“We sincerely apologise to affected passengers for any inconvenience caused.”

This morning, a representative from the regional government-run emergency response coordination centre verified: “We received an alert about a fire on a plane on the ground at Palma airport at 00.36am today.

“Four ambulances were sent to the scene which were two basic life support units and two advanced life support unit.

“Eighteen people were injured and received medical assistance of whom six were taken to hospital.

“They were all minor. Three went to the Clinica Rotger and three to the Palmaplanas Hospital.”

Published on
24/06/2025 – 7:59 GMT+2

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Stocks rallied on Tuesday after US President Trump said that a “complete and total ceasefire” between Iran and Israel would take effect in the coming hours.

Iran’s foreign minister denied that an official ceasefire agreement had been reached, but noted that Tehran would not continue its attacks as long as Israel halted its “aggression”. At the time of writing, Israel had yet to comment.

The truce, which Trump is labelling the end of the “12-day war”, came after Iran attacked a US base in Qatar on Monday, retaliating against the US bombing of its nuclear sites over the weekend.

In response to Tuesday’s development, oil prices dropped as fears over a blockage to the Strait of Hormuz subsided. 

About 20% of global oil and gas flows through this narrow shipping lane in the Gulf.

Brent crude, the international standard, dropped 2.92% to $69.39, while WTI dropped 3.18% to $66.35.

Last week, Brent reached over $78 a barrel, a level not seen since the start of this year.

Looking to the US, S&P 500 futures rose 0.58% to 6,112.00 on Monday, while Dow Jones futures increased 0.51% to 43,118.00.

Australia’s S&P/ASX 200 jumped 0.89% to 8,550.10, South Korea’s Kospi rose 2.75% to 3,097.28, and the Shanghai Composite index climbed 1.07% to 3,417.89.

Hong Kong’s Hang Seng rose 2% to 24,162.70 and the Nikkei 225 increased 1.16% to 38,796.39.

The US Dollar Index slipped by 0.32% to 98.10. The euro gained 0.25% against the dollar while the yen dropped 0.48% in comparison to the greenback.

Economists had suggested that persistent threats to oil would increase the value of the US dollar and hurt other currencies such as the euro, notably as the US economy is more energy independent.

Greg Hirt, chief investment officer with Allianz Global Investors, told Euronews earlier this week that although the dollar may see a short lift on the Iran-Israel conflict, “structural issues around a twin deficit and the Trump administration’s volatile handling of tariffs should continue to weigh on an overvalued US dollar”.

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Risk-on sentiment continued to dominate global market trends during Monday’s Asian session after officials from the US and China signalled “substantial progress” following two days of trade negotiations in Switzerland over the weekend.

China’s Vice Premier, He Lifeng, described the meeting as “an important first step” towards resolving differences, with both sides agreeing to establish a mechanism for further discussions. However, no specific details were provided regarding the points of agreement or the timeline for subsequent meetings. US Treasury Secretary Scott Bessent stated that more information would be shared on Monday, while he noted that a joint statement would be released.

Risk-on prevails

Optimism toward a potential de-escalation in trade tensions between the US and China fuelled risk-on sentiment, with stock markets rallying and safe-haven assets declining.

As of 5:30 am CEST, US stock futures had surged, with the Dow up 1.12%, the S&P 500 rising 1.46%, and the Nasdaq Composite gaining 1.93%. European equities were also poised for a higher open. Among major stock futures, Germany’s DAX advanced 0.85%, reaching a fresh high; the Euro Stoxx 600 rose 0.8%; and the UK’s FTSE 100 climbed 0.36%.

Asian equity markets also posted gains. Hong Kong’s Hang Seng Index rose 0.9%, Japan’s Nikkei 225 added 0.1%, the ASX 200 gained 0.28%, and South Korea’s Kospi advanced 0.7%.

Conversely, gold prices declined sharply as demand for safe-haven assets eased. Spot gold fell 1.4% to $3,279 per ounce, marking its lowest level since 5 May.

Meanwhile, haven currencies, including the euro, the Japanese yen, and the Swiss franc, weakened further against the US dollar, falling to their lowest levels since 10 April.

Markets await details of trade talks

Uncertainty remains as investors await further information regarding the trade discussions between the world’s two largest economies.

“Greater clarity on these matters, to provide firm backing to the apparent more conciliatory tone of rhetoric seen from both sides, will be needed to give markets additional confidence that the peak of trade uncertainty and tit-for-tat tariffs is indeed in the rear-view mirror, and to unlock the door to a more durable and sustainable firming in risk appetite,” wrote Michael Brown, a senior research strategist at Pepperstone Group in London.

“For the time being, however, given the prevailing uncertainty, I’m inclined to fade this strength in the dollar and equities — at least in the short term,” he added.

The S&P 500 has rebounded nearly 10% since US President Donald Trump indicated a substantial cut to tariffs on China in late April. Nonetheless, the benchmark index remains negative year-to-date, down 3.8%. Meanwhile, the US dollar index (DXY) has dropped more than 7% this year, despite the recent rebound.

According to Bloomberg, the US is considering reducing tariffs on Chinese goods to below 60% as a first step, while seeking to negotiate the removal of Chinese restrictions on rare earth exports to the US. In early April, Beijing announced export restrictions on a wide range of critical minerals — including germanium, gallium, antimony, and magnets — potentially disrupting production in American electric vehicles and other electronic devices.