Breakfast News: Tech Earnings Tell Differing Tales

Breakfast News: Tech Earnings Tell Differing Tales

February 12, 2026

Source: Image created by Jester AI.

1. Results Trigger Volatile Tech Stocks Move

• **Cisco **(CSCO +1.73%) fell over 8% in pre-market trading following results showing security segment revenue decreasing by 4% and operating cash flow tightening, although CFO Mark Patterson said going forward they would “drive profitability by exercising financial discipline.” The May 2024 Hidden Gems recommendation is beating the S&P 500 by 54%.
• **Paycom **(PAYC +1.55%) dropped more than 9% before the market open due to quarterly earnings providing an outlook of a slower pace of growth. The company, recommended by Team Hidden Gems in _Stock Advisor, _did however report a 10.2% revenue gain versus the same period last year.
• **Cognex **(CGNX 0.72%) rocketed almost 25% higher ahead of the opening bell, as the Team Rule Breakers rec in SA posted an impressive set of financial results. CEO Matt Moschner pointed to “advancing our technology leadership in AI-enabled industrial machine vision” as a factor.

2. AI Fears Wipe 12% Off Real Estate Giants

Real estate service stocks including **CBRE Group **(CBRE +7.48%) and JLL (JLL +9.55%) closed 12% lower yesterday as concerns around AI disruption in the sector continue to grow, following on from the impact on software stocks and tax-planning companies in recent days.

• Task automation and streamlining deal processes: AI advances could put pressure on related companies’ profitability, which currently relies on high-fees and a labor-intensive operating model.
• “That scale and dominance, it’s got to count for something, right?”: Speaking in December about CBRE, Fool contributing analyst Toby Bordelon pointed to the company’s diversification, noting it offers “services ranging from leasing, sales, facility management, investment management, a whole range of stuff.”

3. Thursday Post-Market Rule Breakers Earnings

• **Airbnb **(ABNB +0.03%) is expecting further growth in nights and seats booked, building on a solid last quarter. It has beaten revenue estimates each time for the past two years.
• Vertex (VRTX 1.46%) investors will be watching for progress in converting new therapy launches to meaningful revenue. Management modestly raised the lower-end of projected full-year revenue last quarter.
• Arista Networks (ANET 2.06%) is forecasted to deliver a 24% increase in revenue this quarter, based on continued growth in the AI and cloud sectors. Margin pressure was mentioned in the previous quarter as something to watch for.

4. Your Take

Which, if any, positions have you sold all or some of from your portfolio in the last month, and why?

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