Good morning. Meta has priced its financing. SoFi and PayPal have delivered their earnings. Growth has different costs.

Also inside: Anthropic’s S-1, Broadcom’s $63 billion financing structure, Boeing’s recovery and Corning’s optical boom. The scoreboard uses Monday’s closes, before today’s earnings.

Meta prices $37.5 billion of funding. Nvidia takes a stake.

Coolcaesar; edit by Jacek Halicki / Wikimedia. Headquarters archive. · Creative Commons license

Meta’s financing now has a price, a larger common-stock component and a recurring cost. The company priced $25 billion of common shares at $625 each, alongside $12.5 billion of mandatory convertible preferred securities. That is $37.5 billion before underwriter options, up from the initial $35 billion package.

The preferred securities carry a 6.5% annual dividend rate. On $12.5 billion, that implies roughly $812.5 million annually before options, calculated from the stated terms. Dividends are cumulative and payable when declared; settlement can use cash or qualifying shares. Paying with shares preserves cash but adds dilution.

The common-stock financing uses forward-sale agreements. Meta does not expect those proceeds immediately: settlement is expected on or before November 19, 2027.

Nvidia separately committed $3 billion to Meta’s offering while expanding their Muse AI collaboration. Meta plans more Vera Rubin systems, Vera CPUs and networking infrastructure. The equity investment is capital Nvidia puts into a customer, distinct from revenue earned by supplying that customer.

New shares, preferred dividends and eventual conversion create additional claims on future earnings. Funding supports investment; it cannot establish the return.

Meta lists general corporate purposes as the use of proceeds. AI is the strategic context, but this is not ring-fenced project financing.

SoFi’s record quarter comes with a $6.4 billion plan for 2027.

Troutfarm27 / Wikimedia. SoFi Stadium, 2021. · Creative Commons license

SoFi grew third-quarter GAAP revenue 44% to $1.385 billion and net income 73% to $241 million. Diluted EPS reached $0.18. The bigger new catalyst is management’s 2027 outlook: approximately $6.4 billion of adjusted revenue and $0.90 adjusted EPS.

That implies about 27% revenue growth over the new 2026 forecast. Management also targets $2.24 billion of adjusted EBITDA and a roughly 20% adjusted net-income margin next year.

Company forecasts, non-GAAP. Sources: Q2 release and October 27 Q3 release.

The 2026 revenue forecast rises about 5% above July’s midpoint. Smaller EBITDA and EPS revisions show that revenue growth is not translating equally into per-share earnings.

Deposits are helping fund the expansion. Net interest income rose 59% year over year to $929.5 million, while net interest margin improved to 6.14% from 5.98% in Q2. Fee-based revenue reached $570.6 million, up 21% sequentially, through activities including loan origination, payments, brokerage and the technology platform.

The mix remains uneven. Financial Services revenue rose 25% year over year to $525.1 million. Technology Platform revenue was $87.4 million, up 3% sequentially but down 24% from a year earlier after a large client’s departure. Excluding that client, management reports 18% growth; the reported decline still matters.

Credit deserves the same care. The 2.26% annualized personal-loan charge-off rate includes the effects of loan sales, new originations and delinquency sales. It is not a standalone measure of lifetime credit losses.

The deposit-funded consumer platform is producing stronger earnings. Sound credit and better profit conversion underpin the 2027 targets; the technology business has not recovered its revenue base.

PayPal raises its outlook. Buybacks lift earnings per share.

PayPal office, archive. Courtesy of PayPal.

PayPal raised full-year adjusted EPS guidance to about $5.60 from $5.38, even as third-quarter adjusted net income fell 3%. Adjusted EPS increased 8% to $1.45. The gap shows why per-share earnings and total company profit need separate attention.

Revenue grew 2% to $8.584 billion. Total payment volume rose 6% to $487.1 billion, while transaction margin dollars excluding interest on customer balances increased 3%. Payments are growing faster than the revenue PayPal retains, and the core business is still expanding at a modest pace.

July’s guidance had called for a low-single-digit decline in Q3 adjusted EPS from $1.34 a year earlier. The delivered $1.45 is a clear improvement against management’s own forecast. GAAP EPS, however, declined 4% to $1.25, and GAAP operating income fell 8%.

PayPal repurchased $1.5 billion of stock during the quarter and $6 billion over the trailing year. Fewer shares lift each remaining share’s earnings claim without creating additional aggregate profit.

There are operating positives. Adjusted operating income increased 3%, and the earnings presentation identifies Venmo and Braintree as contributors to transaction-margin growth. Branded-checkout payment volume grew just 1% on a currency-neutral basis, making a broad checkout recovery harder to declare.

Free cash flow was $1.43 billion, down 17%. The $2.05 billion adjusted figure excludes timing effects from buy-now-pay-later receivables; it also declined, by 10%. Both measures matter when judging how much cash can fund continued repurchases.

PayPal delivered better EPS than it promised. Faster underlying revenue and cash growth would make the recovery more durable.

Anthropic’s $80.7 billion loss hides a profitable operating quarter.

Anthropic office sign, archive. Image via Bloomberg.

Anthropic’s S-1 reveals a $974 million second-quarter operating profit alongside an $80.7 billion first-half net loss. Financing revaluations dominate the loss headline; operating performance improved sharply. The larger test is whether customer spending can support long-term compute commitments.

The Claude maker filed Monday for a Nasdaq listing under ANT. The offering price and share count remain undetermined. There is no public IPO valuation to assess yet.

First-half revenue reached $16.3 billion, versus $1.2 billion a year earlier. Within 2026, quarterly revenue rose from $4.7 billion in Q1 to $11.6 billion in Q2. The operating result swung from a $1.7 billion loss to that $974 million profit. These are GAAP operating figures.

The first-half net loss includes a $72.4 billion fair-value charge on convertible notes, derivatives and other financing arrangements, primarily reflecting Anthropic’s rising enterprise valuation. That charge is not equivalent to cash spent running Claude. Removing it alone would not prove profitability: the first half still recorded a $693 million operating loss.

Operations generated $3.9 billion of first-half cash, versus a $1.5 billion outflow a year earlier. Customer collections and vendor-payment timing contributed, so this is not an established cash-generation rate.

At June 30, Anthropic disclosed $321.4 billion of estimated undiscounted payments for leases not yet commenced, principally compute and infrastructure. They begin between 2026 and 2028, with terms up to 20 years; some depend on contractual conditions. Separately, fixed or minimum purchase commitments totaled $265.6 billion. These are multiyear obligations, not this year’s cash bill.

Demand is less locked in. Consumption-based sales supplied 80% of first-half revenue. The five largest customers generated roughly 25% of revenue over the first nine months, and many large customers can reduce spending or have contracts expiring soon.

Our read: operating improvement is real, but flexible customer spending must support long-lived infrastructure commitments. Sustained profits as capacity arrives would strengthen the case; slower usage growth would make those obligations harder to absorb.

The Mag 7 + three: Monday’s close.

Tesla led this watchlist; Meta, Apple and Alphabet declined. SPY gained 0.71% and QQQ rose 1.11%. Those are ETF price changes, not index returns.

October 26 regular-session adjusted closes versus October 23. Returns calculated before rounding. C&C editorial watchlist, not an official index.

Broadcom’s $63 billion financing deal brings supplier exposure.

Broadcom campus, archive. Image via Bloomberg.

A $63 billion financing structure helps turn Anthropic’s compute demand into funded equipment orders—and gives Broadcom exposure beyond the initial hardware sale. Bank of America, Citi, Morgan Stanley and Blackstone announced the arrangement Monday.

A special-purpose vehicle will buy Broadcom AI accelerators and networking equipment and lease them to Anthropic. Deliveries are expected during calendar 2027 under the existing compute relationship. The announced financing amount is not $63 billion of revenue recognized today.

The banks provide first-lien financing, while Blackstone-managed vehicles provide second-lien capital. That describes a financing structure with different repayment priorities, rather than one undifferentiated loan or an outright purchase by Anthropic.

The consequential detail is Broadcom’s residual-value support equivalent to the first-lien financing. It helps lenders support the arrangement, but leaves the supplier exposed to the equipment’s eventual value. The announcement does not disclose the first-lien amount, so calling all $63 billion Broadcom’s guarantee would overstate what is known.

The benefit is practical: financing can enable a customer to obtain capacity and support future deliveries. The trade-off is that hardware obsolescence and financing terms become relevant alongside order demand. A productive installation supports the economics; weaker residual values could create additional obligations.

Anthropic’s S-1 shows improving operations but large future commitments. This deal shows how lenders and suppliers fund that expansion—and why strong equipment demand can bring financing exposure with it.

Boeing’s $745 billion backlog still needs to become profitable cash.

Anthony Bolante / PSBJ. Former Renton headquarters, archive.

Boeing generated $464 million of free cash flow in Q3, but its commercial-airplane business still lost $697 million. Revenue rose 4% to $24.2 billion, while backlog reached $745.4 billion. Orders are plentiful; profitable execution remains the harder task.

The commercial division delivered 161 airplanes, versus 171 in Q2, and posted a negative 6.5% operating margin. Higher projected production-rate adjustment costs, supply-chain costs and delivery mix weighed on performance. Boeing is progressing toward a stabilized 737 rate of 47 per month; that production target is distinct from deliveries.

Defense earned $492 million, but a $252 million gain from selling HRL Laboratories accounted for just over half that profit. Services supplied $1.02 billion of operating earnings at an 18.3% margin, providing a stronger recurring earnings base.

Cash generation also needs context. Operating cash flow benefited from working-capital timing and absorbed roughly $700 million of Justice Department payments. After capital spending, year-to-date free cash flow remained negative $359 million. Debt was $45.9 billion.

Our reading: the recovery has tangible support in production progress and services profits, but one positive cash-flow quarter does not establish a durable turnaround. Sustained commercial margins and cash generation without favorable payment timing would make the backlog more valuable to shareholders.

Corning’s AI demand is turning into faster profit growth.

Corning company sign, archive. Image via CTech.

Corning’s optical business grew sales 44%, while its segment profit rose 80%. That is the useful evidence behind the AI story: higher demand is generating earnings faster than revenue.

Companywide Q3 core sales reached $5.081 billion and core EPS $0.91, above July’s guidance ceilings of $5.0 billion and $0.89. These are non-GAAP measures; GAAP sales were $4.855 billion and EPS $0.78. Core operating margin expanded 3.1 percentage points year over year to 22.7%.

Optical sales reached $2.379 billion, with Enterprise Networks up 84% and Gen AI products growing more than 100%. Four new long-term, multibillion-dollar customer agreements, including Verizon and AT&T, support capacity investment.

The acceleration is uneven. Glass Innovations sales declined 3%. Solar lost $7 million despite 37% revenue growth, matching Q2’s loss after management had forecast improving profitability. Optical strength is offsetting weaker businesses.

Management guides Q4 core EPS to $0.96–$1.00. The midpoint is about 7% above the $0.9125 pre-release mean from four analysts, dated October 22. That supports the earnings case; it does not establish that the stock is cheap. Maintaining margins as new capacity arrives remains the test.

Data provided by Zacks Investment Research, Inc., www.zacksdata.com, via Fiscal.ai. Consensus uses adjusted EPS; company guidance uses core EPS.

Today’s calendar: consumers and the Fed.

Tuesday, October 27 · All times ET. Consumer confidence is scheduled for 10 a.m. September’s reading was 81.9. SoFi, PayPal, Boeing and Corning have reported. Visa and Robinhood report after the close.

The Fed’s two-day meeting begins today. The decision is scheduled Wednesday at 2 p.m., followed by the press conference at 2:30 p.m. Confidence was unreleased at our research cutoff.

Prediction markets still favor a Fed hold.

The October Fed-decision contract displayed approximately 93% for no change when checked around 7:22 a.m. ET Tuesday. Market odds are not a Fed forecast; the statement can still reset expectations for later meetings.

Higher price targets do not always mean bullish ratings.

Apple: Jefferies raised its target to $270.62 from $263.66 while retaining Sell. Microsoft: Truist raised its target to $600 from $575 and maintained Buy. October 26 target revisions, not rating upgrades. Apple’s target remains below its $343.91 Monday close.

Crypto, briefly.

Bitcoin: about $79,938. Ether: about $2,316. Coinbase USD spot snapshots retrieved at 7:09 a.m. ET, October 27. Spot levels, not daily returns.

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Independent market commentary. C&C interpretations are analysis; company targets and reported deal terms are not guarantees.