The Transcript
$QCOM CEO talks of memory shortages:

"While our near-term handsets outlook is impacted by industry-wide memory supply constraints, we are encouraged by end-consumer demand for premium and high-tier smartphones & remain on track to achieve our FY 29 revenue goals"

Qualcomm CEO: "We are pleased to deliver strong quarterly results, with record total company revenues. Our momentum across personal, industrial and physical AI is growing..."

$QCOM: -9% AH https://t.co/QXxlynWpWq - The Transcript
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The Transcript
RT @mark_wharrier: Imagine a company spending $3bn+ capex a week…

Alphabet CEO guiding to $175–185B in FY26 capex vs $91.4B in FY25 [YoY increase of ~92–102%]

"To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185B."

$GOOG $GOOGL https://t.co/iCPTR76C5H - The Transcript
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Fiscal.ai
"Our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion."

$GOOGL https://t.co/uQTWAaOJPI
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The Transcript
Alphabet is guiding to FY26 CapEx of $175–185B, equivalent to nearly half of FY25 revenues.

$GOOG $GOOGL https://t.co/8RAT7ylpgH

Alphabet CEO guiding to $175–185B in FY26 capex vs $91.4B in FY25 [YoY increase of ~92–102%]

"To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185B."

$GOOG $GOOGL https://t.co/iCPTR76C5H - The Transcript
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Wasteland Capital
Insane Q4 print from $GOOG. Revenue accelerating yet again to +18% (+16 last Q). Cloud+48% (What. The. F*ck?) 😳. Search +17% (it was supposedly dead, hahaha). Margins strong, EPS +31%, scaling well. ‘26 Capex guide $175-185bn = demand driven. Gemini app now 750m users. 👏👏👏 https://t.co/0U3ET7cLw0
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The Transcript
e.l.f. Beauty double beat + raised FY 26 outlook

CEO: "We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook."

$ELF: +14% AH https://t.co/bPXqPRPq8X
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The Transcript
Snap CEO: "Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion."

Authorizes a $500M buyback

$SNAP: +6% AH https://t.co/SII7Mnl3x1
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Bourbon Capital
$GOOG CEO: More than 120,000 enterprises use Gemini including AI unicorns
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Dimitry Nakhla | Babylon Capital®
56% incremental operating margins on 48% YoY growth for Google Cloud ☁️ — and the first quarter Cloud operating margins reached 30%.

$GOOG $GOOGL https://t.co/Hge7j1Z9E3

Chris Hohn, founder of TCI, views high incremental margins as one of the strongest signals of a company’s moat & pricing power💸

Incremental operating margin tells you how much additional operating income a business generates for every additional $1 of revenue.

Here’s how to calculate it:

Pick two periods (Year 1 → Year 2)

Year 1 Revenue: $10B
Year 2 Revenue: $12B
Δ 𝐂𝐡𝐚𝐧𝐠𝐞: $𝟐𝐁

Year 1 Operating Income: $2B
Year 2 Operating Income: $3B
Δ 𝐂𝐡𝐚𝐧𝐠𝐞: $𝟏𝐁

𝐈𝐧𝐜𝐫𝐞𝐦𝐞𝐧𝐭𝐚𝐥 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐌𝐚𝐫𝐠𝐢𝐧 = Δ 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐈𝐧𝐜𝐨𝐦𝐞 / Δ 𝐑𝐞𝐯𝐞𝐧𝐮𝐞

So: $1B / $2B = 50%

𝘔𝘦𝘢𝘯𝘪𝘯𝘨: 50 cents of every new $1 of revenue fell to operating profit.
___

Why this matters: High incremental margins usually signal low incremental costs, pricing power, & structural operating leverage — the traits that allow a great business to compound faster as it scales. It’s one of the cleanest ways to see whether a company’s moat is strengthening & efficiently scaling.

I’ve included 4 high-quality stocks with their incremental operating margins since 2021 for further example 👇🏽

$FICO $MSFT $MA $NFLX - Dimitry Nakhla | Babylon Capital®
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