Copy of Broadcom Narrowly Beats Estimates, Its Stock Still Falls; Victoria Secret Is Bringing Sexy Back; HP Blows Estimates Out Of The Water

Artificial intelligence remained the dominant theme of earnings season as Broadcom reported a 48% surge in AI-related sales, Palo Alto Networks benefited from rising cybersecurity spending, and Hewlett Packard Enterprise delivered its biggest beat-and-raise in six years on booming demand for AI infrastructure. Outside tech, Victoria’s Secret stunned investors with a 50% stock surge after a major beat-and-raise signaled that its turnaround strategy may finally be gaining traction. All this and more in today’s Read It And Eat!

Markets as of  4th of June 2026.. Cells in RED mean that the value is down, cells in Green mean the value is up.

MAJOR HEADLINES

•  Broadcom Beats Earnings Estimates Narrowly And Still Got Pummelled

Broadcom beat second-quarter earnings estimates but missed revenue expectations despite reporting a 48% surge in AI-related sales, driven largely by demand for custom AI chips, including Google's Tensor Processing Units (TPUs), according to CNBC. Investors were unimpressed by the revenue miss and the company's decision not to raise its long-term AI outlook, sending Broadcom stock down more than 10% in after-hours trading following the report.

The results reinforce a growing trend across the semiconductor industry: while AI demand remains extraordinarily strong, investors are increasingly scrutinizing whether that growth is translating into enough revenue to justify lofty valuations. Broadcom's custom chip business has emerged as one of the biggest beneficiaries of the AI boom, positioning the company as a key alternative to Nvidia as cloud giants seek specialized processors for their next-generation AI workloads. CNBC

• Victoria Secret Is Bringing The Sexy Back; Shares Soar 50% Rewarding The Corporate Turnaround

Victoria's Secret posted a major first-quarter earnings and revenue beat while raising its full-year outlook, according to CNBC. Investors cheered the results, sending Victoria's Secret stock soaring roughly 50% as management pointed to improving sales trends, stronger customer engagement, and growing success in efforts to restore the brand's identity.

The blockbuster quarter marks one of the strongest signs yet that Victoria's Secret's turnaround strategy may be gaining traction after years of declining relevance and intense competition. Investors welcomed evidence that the retailer is successfully reconnecting with consumers while improving profitability, making it one of the latest examples of a legacy consumer brand benefiting from a well-executed brand repositioning strategy. CNBC

• Palo Alto Networks Beats Estimates As AI Drives Cybersecurity Spending Boom

Palo Alto Networks beat first-quarter earnings and revenue estimates as demand for cybersecurity solutions continued to accelerate amid growing AI adoption, according to CNBC. The company reported stronger-than-expected results while also raising its full-year outlook, prompting a positive market reaction. Palo Alto stock initially surged in after-hours trading following the earnings release as investors welcomed the stronger guidance and continued momentum across its AI-powered cybersecurity platform.

The results highlight how AI is becoming a double-edged sword for cybersecurity. While organizations are using AI to improve defenses, cybercriminals are also leveraging the technology to launch more advanced attacks, creating greater urgency for enterprises to upgrade their security infrastructure. Palo Alto's performance suggests cybersecurity remains one of the clearest long-term beneficiaries of the global AI boom. CNBC  

• Hewlett Packard Enterprise Delivers Biggest Beat-And-Raise In Six Years On AI Demand

Hewlett Packard Enterprise delivered its biggest earnings beat-and-raise in six years, fueled by blockbuster demand across its cloud and AI businesses, particularly its server division, according to CNBC. Investors enthusiastically welcomed the results, sending HPE stock up roughly 28% to 30% following the earnings release after the company beat earnings and revenue expectations and sharply raised its full-year outlook. The rally marked one of the strongest post-earnings moves in the technology sector this year and added billions of dollars to the company's market value.

The results provide further evidence that the AI spending cycle remains robust across the broader technology ecosystem, extending beyond chipmakers to the companies supplying the servers, networking equipment, and data center infrastructure needed to support AI workloads. HPE's strong quarter signals that demand for enterprise AI infrastructure remains one of the most powerful growth drivers in the technology sector today.  Reuters

Minor Headlines

• GameStop posted record quarterly profit on a 65% surge in its collectibles business as it adapts to consumers buying video games digitally WSJ

• CrowdStrike issued a Q1 beat-and-raise as 'the worlds of cybersecurity and frontier AI collide' CNBC

• Marvell Technology beat earnings expectations on robust AI infrastructure demand, as cloud giants increased spending on custom chips and data-center networking solutions Reuters

• Lululemon beat earnings expectations on strong international growth despite concerns about slowing consumer spending Yahoo.Finance

• Ulta Beauty beat earnings expectations as premium beauty spending remained surprisingly resilient CNBC

• Macy's issued a beat-and-raise on its strongest Q1 growth in four years amid a high-stakes turnaround effort CNBC

• Signet Jewelers beat earnings forecasts and raised guidance as luxury jewelry demand outperformed expectations Yahoo.Finance