Recent News
On September 26, 2025, reporting noted a program of targeted exits for employees who cannot be retrained alongside plans to expand hiring and upskilling in AI; the company reported having trained over 550,000 workers and growing its AI and data specialist pool to 77,000, while taking material restructuring charges to fund the transition. On the same date management stated roughly 5% of U.S. staff hold H-1B visas and described an $865 million business optimization program combining rapid talent rotation with divestiture of non-strategic assets.
Technical Analysis
ADX at 26.38 signals a strong directional trend in play and supports an expectation of persistent momentum in the near term rather than a quiet market.
Directional indicators show bearish directional pressure: DI+ at 16.67 follows a peak-and-reversal, and DI- at 29.85 shows a dip-and-reversal; both readings imply a directional tilt toward sellers and weakening upside dominance.
MACD sits negative at -5.79 with a peak-and-reversal pattern and a signal line at -5.46, indicating bearish momentum and no bullish MACD crossover present.
MRO at -26.93 indicates the price sits below the WMDST target and implies mean-reversion potential that could push the price higher relative to the current level if momentum shifts.
RSI at 36.97 and trending downward reflects bearish near-term momentum while remaining above oversold thresholds, suggesting room for further weakness before a technical overshoot.
Price action trades below the 20-day average ($241.12), 50-day average ($254.79) and 200-day average ($308.58); the 12-day EMA at $240.13 trends down and the Ichimoku Tenkan/Kijun at $242.70/$245.78 lie above the close, reinforcing short-term resistance around the $242–$246 band.
Bollinger lower bands at $234.24 (1σ) and $227.36 (2σ) bracket recent lows; the close at $232.56 sits inside the lower band region, consistent with the MRO-driven mean-reversion case but within a bearish structure.
Fundamental Analysis
Profitability: Operating margin (EBIT margin) stands at 17.03%, above the industry peer mean of 13.87% and the peer median of 14.31%, below the peer high of 20.26%. QoQ improvement measured 20.54%, and YoY improvement measured 5.19%, supporting an operationally efficient profile versus peers.
Growth: YoY revenue growth reads 51.85%; QoQ revenue growth shows -210.13% on the provided metric. YoY growth appears strong, while the QoQ figure indicates material sequential variability that requires reconciliation with company reporting cadence.
Cash generation: Free cash flow totaled $3,515,259,000 with a free cash flow yield of 1.79%, above the industry peer mean of 0.74%; QoQ free cash flow yield expanded about 48.14% and rose 13.96% YoY, signaling improving conversion of revenue into distributable cash.
Balance sheet and leverage: Total debt $8.17B with debt/EBITDA near 2.47x and debt/equity about 0.27; interest coverage at 44.66 provides substantial cushion for debt service. Cash and short-term investments roughly $9.64B support liquidity metrics including a current ratio of 1.46 and cash ratio of 0.51.
Valuation metrics: Trailing PE at 90.45 and price-to-book at 6.43 lie above the industry peer mean and median for each metric, while forward PE near 89.85 tracks the high multiple environment. WMDST values the stock as over-valued; the mean analyst price target registers $220.56, below the current close of $232.56, consistent with premium multiples and an EPS shortfall (actual EPS $2.25 versus estimate $2.98, an EPS surprise of -24.50%).
Returns: Return on equity at 7.19% sits above the industry peer mean of 4.41% and peer median of 3.83%, reflecting efficient capital use despite a premium valuation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-05-31 |
| REPORT DATE: | 2025-09-25 |
| NEXT REPORT DATE: | 2025-12-25 |
| CASH FLOW | Begin Period Cash Flow | $ 8.5 B |
| Operating Cash Flow | $ 3.7 B | |
| Capital Expenditures | $ -169.11 M | |
| Change In Working Capital | $ 331.3 M | |
| Dividends Paid | $ -923.89 M | |
| Cash Flow Delta | $ 331.3 M | |
| End Period Cash Flow | $ 9.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 17.7 B | |
| Forward Revenue | $ 4.4 B | |
| COSTS | ||
| Cost Of Revenue | $ 11.9 B | |
| Depreciation | $ 138.8 M | |
| Depreciation and Amortization | $ 292.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 14.7 B | |
| PROFITABILITY | ||
| Gross Profit | $ 5.8 B | |
| EBITDA | $ 3.3 B | |
| EBIT | $ 3.0 B | |
| Operating Income | $ 3.0 B | |
| Interest Income | $ 79.0 M | |
| Interest Expense | $ 67.6 M | |
| Net Interest Income | $ 11.4 M | |
| Income Before Tax | $ 3.0 B | |
| Tax Provision | $ 707.2 M | |
| Tax Rate | 24.0 % | |
| Net Income | $ 2.2 B | |
| Net Income From Continuing Operations | $ 2.2 B | |
| EARNINGS | ||
| EPS Estimate | $ 2.98 | |
| EPS Actual | $ 2.25 | |
| EPS Difference | $ -0.73 | |
| EPS Surprise | -24.497 % | |
| Forward EPS | $ 3.52 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 63.4 B | |
| Intangible Assets | $ 24.4 B | |
| Net Tangible Assets | $ 6.2 B | |
| Total Current Assets | $ 27.4 B | |
| Cash and Short-Term Investments | $ 9.6 B | |
| Cash | $ 9.6 B | |
| Net Receivables | $ 13.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 1.6 B | |
| LIABILITIES | ||
| Accounts Payable | $ 2.7 B | |
| Short-Term Debt | $ 115.1 M | |
| Total Current Liabilities | $ 18.8 B | |
| Net Debt | — | |
| Total Debt | $ 8.2 B | |
| Total Liabilities | $ 31.8 B | |
| EQUITY | ||
| Total Equity | $ 30.6 B | |
| Retained Earnings | $ 26.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 49.06 | |
| Shares Outstanding | 622.746 M | |
| Revenue Per-Share | $ 28.47 | |
| VALUATION | Market Capitalization | $ 196.6 B |
| Enterprise Value | $ 195.1 B | |
| Enterprise Multiple | 58.931 | |
| Enterprise Multiple QoQ | -25.123 % | |
| Enterprise Multiple YoY | -5.838 % | |
| Enterprise Multiple IPRWA | high: 140.798 ACN: 58.931 median: 48.956 mean: 46.857 low: -43.256 |
|
| EV/R | 11.006 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.074 | |
| Asset To Liability | 1.992 | |
| Debt To Capital | 0.211 | |
| Debt To Assets | 0.129 | |
| Debt To Assets QoQ | 6611.979 % | |
| Debt To Assets YoY | 333.322 % | |
| Debt To Assets IPRWA | high: 1.14 mean: 0.333 median: 0.316 ACN: 0.129 low: 0.006 |
|
| Debt To Equity | 0.267 | |
| Debt To Equity QoQ | 6682.487 % | |
| Debt To Equity YoY | 360.503 % | |
| Debt To Equity IPRWA | high: 4.622 mean: 1.251 median: 0.921 ACN: 0.267 low: -2.941 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.434 | |
| Price To Book QoQ | -15.373 % | |
| Price To Book YoY | -7.217 % | |
| Price To Book IPRWA | high: 12.822 ACN: 6.434 mean: 2.985 median: 2.362 low: -1.349 |
|
| Price To Earnings (P/E) | 90.448 | |
| Price To Earnings QoQ | -28.136 % | |
| Price To Earnings YoY | -7.789 % | |
| Price To Earnings IPRWA | high: 170.061 ACN: 90.448 median: 57.289 mean: 42.731 low: -69.969 |
|
| PE/G Ratio | 3.807 | |
| Price To Sales (P/S) | 11.089 | |
| Price To Sales QoQ | -16.916 % | |
| Price To Sales YoY | -5.088 % | |
| Price To Sales IPRWA | high: 17.197 ACN: 11.089 mean: 7.771 median: 5.387 low: 0.008 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 89.851 | |
| Forward PE/G | 3.782 | |
| Forward P/S | 44.496 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.407 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.288 | |
| Asset Turnover Ratio QoQ | 3.4 % | |
| Asset Turnover Ratio YoY | -7.877 % | |
| Asset Turnover Ratio IPRWA | high: 0.719 ACN: 0.288 median: 0.215 mean: 0.211 low: 0.038 |
|
| Receivables Turnover | 1.387 | |
| Receivables Turnover Ratio QoQ | 4.216 % | |
| Receivables Turnover Ratio YoY | 10.708 % | |
| Receivables Turnover Ratio IPRWA | high: 3.883 mean: 1.64 ACN: 1.387 median: 1.214 low: 0.415 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 65.771 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 45.1 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -16.634 % | |
| Cash Conversion Cycle Days IPRWA | high: 62.313 ACN: 45.1 median: 36.764 mean: 31.483 low: -56.4 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.05 | |
| CapEx To Revenue | -0.01 | |
| CapEx To Depreciation | -1.218 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 35.6 B | |
| Net Invested Capital | $ 35.7 B | |
| Invested Capital | $ 35.7 B | |
| Net Tangible Assets | $ 6.2 B | |
| Net Working Capital | $ 8.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.513 | |
| Current Ratio | 1.461 | |
| Current Ratio QoQ | -1.124 % | |
| Current Ratio YoY | 26.199 % | |
| Current Ratio IPRWA | high: 3.358 mean: 1.825 median: 1.767 ACN: 1.461 low: 0.34 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.466 | |
| Cost Of Debt | 0.633 % | |
| Interest Coverage Ratio | 44.655 | |
| Interest Coverage Ratio QoQ | 22.706 % | |
| Interest Coverage Ratio YoY | -81.014 % | |
| Interest Coverage Ratio IPRWA | high: 46.876 ACN: 44.655 mean: 10.945 median: 5.909 low: -32.337 |
|
| Operating Cash Flow Ratio | 0.1 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 20.671 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.379 | |
| Dividend Payout Ratio | 0.42 | |
| Dividend Rate | $ 1.48 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.833 % | |
| Revenue Growth | 6.414 % | |
| Revenue Growth QoQ | -210.13 % | |
| Revenue Growth YoY | 51.847 % | |
| Revenue Growth IPRWA | high: 15.386 % ACN: 6.414 % mean: 2.957 % median: 1.903 % low: -11.52 % |
|
| Earnings Growth | 23.759 % | |
| Earnings Growth QoQ | -210.775 % | |
| Earnings Growth YoY | 82.818 % | |
| Earnings Growth IPRWA | high: 116.406 % ACN: 23.759 % median: 2.941 % mean: -17.329 % low: -122.222 % |
|
| MARGINS | ||
| Gross Margin | 32.867 % | |
| Gross Margin QoQ | 10.059 % | |
| Gross Margin YoY | -1.569 % | |
| Gross Margin IPRWA | high: 68.47 % ACN: 32.867 % mean: 30.202 % median: 28.773 % low: 3.216 % |
|
| EBIT Margin | 17.028 % | |
| EBIT Margin QoQ | 20.535 % | |
| EBIT Margin YoY | 5.189 % | |
| EBIT Margin IPRWA | high: 20.261 % ACN: 17.028 % median: 14.308 % mean: 13.868 % low: -4.292 % |
|
| Return On Sales (ROS) | 17.028 % | |
| Return On Sales QoQ | 20.535 % | |
| Return On Sales YoY | 5.189 % | |
| Return On Sales IPRWA | high: 19.395 % ACN: 17.028 % median: 13.305 % mean: 13.006 % low: -5.114 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 3.5 B | |
| Free Cash Flow Yield | 1.788 % | |
| Free Cash Flow Yield QoQ | 48.136 % | |
| Free Cash Flow Yield YoY | 13.958 % | |
| Free Cash Flow Yield IPRWA | high: 5.903 % ACN: 1.788 % median: 0.917 % mean: 0.735 % low: -10.517 % |
|
| Free Cash Growth | 31.04 % | |
| Free Cash Growth QoQ | -85.094 % | |
| Free Cash Growth YoY | -39.798 % | |
| Free Cash Growth IPRWA | high: 539.652 % ACN: 31.04 % median: 2.477 % mean: -2.969 % low: -467.291 % |
|
| Free Cash To Net Income | 1.6 | |
| Cash Flow Margin | 10.562 % | |
| Cash Flow To Earnings | 0.852 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.566 % | |
| Return On Assets QoQ | 19.384 % | |
| Return On Assets YoY | -2.701 % | |
| Return On Assets IPRWA | high: 8.172 % ACN: 3.566 % median: 2.155 % mean: 1.875 % low: -6.078 % |
|
| Return On Capital Employed (ROCE) | 6.77 % | |
| Return On Equity (ROE) | 0.072 | |
| Return On Equity QoQ | 17.632 % | |
| Return On Equity YoY | 3.274 % | |
| Return On Equity IPRWA | high: 0.157 ACN: 0.072 mean: 0.044 median: 0.038 low: -0.139 |
|
| DuPont ROE | 7.35 % | |
| Return On Invested Capital (ROIC) | 6.425 % | |
| Return On Invested Capital QoQ | -128.733 % | |
| Return On Invested Capital YoY | -112.704 % | |
| Return On Invested Capital IPRWA | high: 7.923 % ACN: 6.425 % median: 3.145 % mean: 3.024 % low: -7.46 % |
|