Equities

Tesla's cash flow blows past forecasts as IBM and TI beat

Tesla's revenue was flat, but free cash flow beat estimates by billions. IBM, Texas Instruments, AT&T and Elevance beat, Philip Morris trimmed expectations, and Moody's missed.

By Marcus Rodriguez · Oct 22, 2026, 11:20 AM EDT

For information only, not investment advice. Prices delayed.

Tickers: TSLA, IBM, TXN, T, ELV, CSX, PM, MCO, GM, ISRG

Tesla ($TSLA) delivered the night's headline: a quarter that didn't grow but threw off far more cash than Wall Street had braced for. Revenue was $28.05 billion against a Bloomberg consensus of $28.13 billion, and adjusted earnings per share were $0.48 versus a $0.44 estimate, Yahoo Finance reported. The number most people will skip is the one that mattered most: free cash flow of $1.53 billion, where analysts had penciled in negative $4.92 billion, with capital spending of $4.732 billion against $7.96 billion expected.

Tesla's own figures show total revenue essentially flat with a year ago, at $28,046 million versus $28,095 million. In its quarterly update, the company said "battery availability continued to be the limiting factor in increasing auto volumes in the quarter." It also said it "ended the quarter with the largest backlog for our passenger vehicles in four years," which is the company's claim about demand, not a sales figure. Tesla shares were up 3.41% at $386.47 as of Oct 21, 4:00 PM ET.

IBM ($IBM) beat on both lines. Revenue rose to $17.10 billion versus an LSEG estimate of $16.82 billion, and adjusted EPS of $2.95 topped $2.86, Reuters reported. Software grew 8.3% to $7.80 billion, ahead of $7.62 billion expected. IBM said it now expects full-year free cash flow "to increase by more than $1 billion year-over-year."

Texas Instruments ($TXN) reported revenue of $6.06 billion and EPS of $2.62, against estimates of $5.92 billion and $2.42, according to Investing.com. CEO Haviv Ilan said in the release that revenue rose 28% from a year ago "with continued broad growth in industrial, automotive and data center." The fourth-quarter EPS outlook of $2.45 to $2.79 sits above the $2.27 consensus, per Investing.com.

AT&T ($T) posted revenue of $32.3 billion, up 5.3%, and adjusted EPS of 65 cents, both above estimates, Reuters reported. It now expects full-year adjusted EPS of about $2.40, up from $2.25 to $2.35. Adjusted EPS was up from 54 cents a year earlier, the company said.

Elevance Health ($ELV) beat analysts on profit and revenue, Fierce Healthcare reported, and raised its full-year adjusted EPS guidance to at least $29.00. Its $6.99 adjusted EPS includes a net non-operating benefit of $1.85 per share, the release shows.

CSX ($CSX) reported record quarterly revenue of $4.02 billion, up 12%, and EPS of $0.57, up 54%, with total volume up 5%, per its release.

Philip Morris ($PM) beat estimates for sales and profit but now expects full-year adjusted EPS "around the middle to lower half of its $8.29 to $8.44 guidance range," citing conflicts and US investment, Reuters reported. Net revenue rose 5.5% to $11.4 billion, per the company. Zyn's US shipments grew 4.2%, which Reuters says was well below earlier growth.

Moody's ($MCO) was the clear miss: adjusted EPS of $4.14 fell short of the $4.27 midpoint of forecasts, Quartz reported, citing Bloomberg. Moody's reaffirmed full-year adjusted EPS guidance of $16.50 to $17.00.

Reported Tuesday, Oct. 20

General Motors ($GM) beat, with adjusted EPS of $3.70 versus $3.63 expected, CNBC reported, but its narrowed guidance has a $13.25 midpoint, below the $13.41 analysts were looking for. GM approved a new $20.0 billion multi-year buyback.

Intuitive Surgical ($ISRG) grew revenue 22% to $3.05 billion, and its $3 adjusted EPS beat the $2.64 estimate, Reuters reported. The company now expects 2026 da Vinci procedure growth of about 14% to 15%, "closer to the midpoint of this range," it said, and booked a $450 million pre-tax charge to settle antitrust litigation.

Tags: earnings · guidance · ev-autos · big-tech · semiconductors · healthcare-pharma · buybacks-dividends