Daily Brief United States: Oracle Corp, Microsoft Corp, Apple , Brightstar Lottery, Lear Corp, Booz Allen Hamilton Holding, Figma, Smith (A.O.), ARM Holdings, Baker Hughes and more

• Institutional investors are turning to AI to analyze SEC filings and earnings call transcripts, with Fintool offering a quicker and more efficient solution.
• The biography of Larry Ellison, focusing on Oracle during the dot com crisis, provides insight into Ellison’s leadership style and business strategies.
• Despite some mixed feelings about Oracle and Ellison’s personality, his vision for the future of computing, such as using commodity hardware and smartphones, has proven to be accurate in hindsight.

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• Q425 revenues of $76.4 billion, up 5.5% QoQ, 18% YoY and handily beating guidance of $73.8 billion.
• Azure surpassed $75 billion in revenue in FY25, up 34% YoY, driven by growth across all workloads.
• Contracted backlog grew by $53 billion QoQ to reach $368 billion. Wow!

• 3Q25 saw an acceleration in revenues (+10% YoY) and EPS (+12%), after a long period of stagnation (2022-23-24 at ~3% growth). 4Q guidance is 5% above Consensus. 
• Impact of US import tariffs is negligible. Services is the major growth driver and Apple has few answers on critical questions (Epic ruling, DoJ rulings against Google, AI roll out). 
• The stock is expensive, as always  (27x FY26 EPS, 25x FY27 EPS) for sub-10% growth. Some people love the buybacks, the brand and dominant market position.

• Brightstar Lottery (BRSL) reported solid Q2 2025 results and is delivering on every aspect of the original thesis I laid out in June.
• The company has now begun executing on the largest capital return in its history: a $3.00 per share tax-free special dividend (paid July 29) and a $250MM accelerated share repurchase (ASR) — the first half of a $500MM buyback authorization.
• Brightstar also reiterated that it will maintain its $160MM annual dividend, so with fewer shares outstanding, the per-share dividend will increase, potentially rising to ~$0.22–$0.24 per quarter.

• Lear Corporation’s second-quarter 2025 financial results reflect a balanced mix of positive developments and areas of concern.
• Revenue remained stable at $6 billion, indicating resilience against macroeconomic and industry-specific challenges.
• The core operating earnings came in at $292 million with an operating margin of 4.8%.

• Booz Allen Hamilton’s first quarter fiscal year 2026 results reflect a dynamic environment influenced by shifting government priorities and procurement processes.
• Overall, the company’s financial performance aligned with expectations, showing resilience amidst a challenging backdrop with a 2% year-over-year growth in revenue, excluding billable expenses, despite an overall revenue decline of roughly 1%.
• Positively, Booz Allen Hamilton recorded a high quarterly book-to-bill ratio of 1.42x, contributing to a record backlog of $38 billion, suggesting future revenue streams are solid.

• Figma Inc., a product design leader with strong financial profile, priced its IPO at $33.00/share and raised ~$1.2B.
• The company raised the price range to $30.00-$32.00. The stock opened at $85.00 and closed on Thursday at $115.50, up ~250% vs. IPO offer price.
• The offering was priced above the marketed range. Figma had a ~$67B market cap at the close, implying a ~62x EV/2025E sky-high multiple on my 2025 revenue estimate of $1056M.

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• Smith’s second-quarter fiscal 2025 earnings results reflect a mixed performance, highlighting both strengths and challenges in the company’s global operations and strategic initiatives.

• Record royalties now make up over half of Arm’s revenue, with Compute Subsystems (CSS) earning nearly 2x more than conventional designs.
• Hyperscaler CPU share jumps to ~50%, as Neoverse powers AI infrastructure at NVIDIA, AWS, Google, and Microsoft.
• Custom silicon stickiness deepens, with multigenerational GPU deals and CSS design wins spanning cloud, PC, and automotive verticals.

• Baker Hughes is reportedly nearing a $13.6 billion all-cash acquisition of Chart Industries, potentially derailing Chart’s previously announced all-stock merger with Flowserve.
• The proposed deal, which values Chart at $210 per share—a 22% premium to its latest closing price—marks a significant strategic pivot by Baker Hughes toward enhancing its footprint in liquefied natural gas (LNG), nuclear energy, and digital infrastructure, particularly data centers.
• By superseding the $19 billion Flowserve-Chart merger agreement from June, Baker Hughes aims to consolidate its position in high-growth, energy-adjacent sectors through vertical integration and technology enhancement.