Friday, February 20, 2026
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Earnings season is the heartbeat of the market, and every day brings fresh signals about where money is flowing. With each report, we learn not just how companies are performing, but how investors are reacting. In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session: the winners, the losers, and the reactions that reveal what really matters to the market right now. Whether it's a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most. |
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Here are the top beats from the S&P 500 👇 |
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*Click the image to enlarge it Thursday's top beat came from the $26B advertising agency, Omnicom $OMC. After posting mixed headline results, shareholders were rewarded with a +7.51 reaction score. In the 8-K, OMC reported revenues of $5.53B, crushing the expected $4.50B, and earnings per share were $2.59, below the expected $2.72. The big beats from Deere $DE, Southern Co. $SO, Occidental Petroleum $OXY, and Quanta Services $PWR also stood out to us. |
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Here are the bottom beats from the S&P 500 👇 |
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*Click the image to enlarge it Thursday's bottom beat came from the $8B tech stock, EPAM Systems $EPAM. Despite a big double beat, shareholders suffered a -6.55 reaction score. EPAM reported revenues of $1.41B, beating the expected $1.39B, and earnings per share were $3.26, above the expected $3.16. The beatdown in Pool $POOL also stood out to us. Let's talk about what else happened 👇 |
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OMC had its best earnings reaction of the 21st century🔥 |
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Omnicom had a +15.4% post-earnings reaction, and here's what happened: |
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- This was the company's first earnings report since acquiring IPG, which formed the world's largest marketing and sales company. The single biggest surprise was the upward revision to merger synergy expectations. They now expect annual run-rate synergies of $1.5B over the next 30 months.
- The board approved a $5B share repurchase program, with half of it to be launched immediately via an accelerated share repurchase. They also announced a 15% increase in the quarterly dividend.
- Aside from the upward revision to merger synergy expectations, the management team didn't provide much forward guidance. They are expected to release more information at the March 12 investor day presentation.
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This was an incredible earnings report, and the market's reaction made that very clear. Not only was this the best earnings reaction we've seen this century, but it also marked the third consecutive positive earnings reaction. The earnings sentiment is extremely positive, but the technicals haven't yet confirmed it. But we think that's about to change... With OMC pressing against the upper bound of a textbook bearish-to-bullish reversal pattern, we believe the stock is about to enter a brand-new primary uptrend. |
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EPAM snapped a 3-quarter beat streak🐻 |
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EPAM Systems had a -17% post-earnings reaction, and here's what happened: |
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- The company's largest customer is struggling right now, and their revenues are expected to decline significantly.
- After an exceptional 94.7% free cash flow conversion in 2025, the management team expects this key performance indicator to normalize to the 80%-90% range in 2026.
- After previously stating that revenue growth would accelerate in 2026, the management team guided to slower growth this year than last.
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Like many other AI consultants, this company has been struggling for years. Since peaking in late 2021, the stock has cratered by more than 80%. And with the stock putting the finishing touches on a massive distribution pattern, it looks poised to decline even further. Over the past 3 quarters, earnings sentiment has been a tailwind. However, with this quarter's extremely negative earnings reaction, this is no longer the case. We expect EPAM's path of least resistance to remain lower for the foreseeable future. Happy Friday! -The Beat Team |
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Editor's Note: AI is coming for retail, and Jeff Macke just gave away the inside scoop on how to profit from this generational trend. If you missed yesterday's livestream, catch the replay here before it's too late. |
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STAY HUNGRY. STAY FOOLISH |
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