Strong Jobs Report Tempers Rate Cut Hopes as Markets Digest Mixed Earnings

Cisco Systems announced record quarterly revenue of $15.3 billion on February 11, representing 10 percent year-over-year growth and exceeding analyst expectations of $15.12 billion. The networking giant reported GAAP earnings per share of $0.80, up 31 percent from the prior year, and non-GAAP EPS of $1.04, beating the consensus estimate of $1.02. Product orders surged 18 percent with AI infrastructure orders from hyperscalers totaling $2.1 billion.

Core networking revenue climbed 21 percent to $8.3 billion, driven by accelerating demand for AI infrastructure. The company's networking product orders grew more than 20 percent year-over-year as enterprises invested in upgrading their network capabilities to support artificial intelligence workloads.

Despite the strong results, Cisco shares dropped approximately 7 percent in after-hours trading after the company issued earnings guidance that merely met analyst estimates rather than exceeding them. The conservative outlook overshadowed the record-breaking quarterly performance, with investors concerned about future growth momentum.

McDonald's Corporation reported fourth quarter earnings of $3.12 per share on February 11, exceeding analyst expectations by 2.2 percent. Net revenue climbed 10 percent to $7 billion, while same-store sales increased 5.7 percent globally with U.S. comparable sales jumping 6.8 percent. The results marked the company's third consecutive quarter of domestic sales growth.

The fast-food giant's performance was driven by successful marketing initiatives including the Monopoly promotion and Grinch-themed campaigns, which generated significant digital engagement. The company's McValue menu and affordability initiatives resonated with price-conscious consumers amid persistent inflation concerns. Operating income rose 10 percent despite restructuring charges tied to the company's organizational realignment efforts.

McDonald's loyalty program continued its rapid expansion, reaching nearly 210 million active users within a 90-day period. System-wide sales across all locations totaled $140 billion for the year, up 5.5 percent in constant currency terms. The strong results underscore the effectiveness of the company's value-focused strategy in driving customer traffic during a challenging economic environment.

T-Mobile US reported fourth quarter adjusted earnings of $2.14 per share on February 11, surpassing the consensus estimate of $2.04. Revenue increased 11.3 percent year-over-year to $24.33 billion, exceeding expectations of $24.18 billion. The wireless carrier added 2.4 million postpaid customers during the quarter, including 962,000 postpaid phone subscribers and 558,000 broadband customers.

For the full year 2025, T-Mobile achieved record customer additions of 7.8 million postpaid subscribers, the most in any single year in company history. Service revenues reached $18.7 billion for the quarter, contributing to compound annual growth rates of 6 percent for service revenues and 8 percent for Core Adjusted EBITDA over the 2023-2025 period. Management attributed the strong performance to network quality leadership, improved customer experience metrics, and rapid digital transformation initiatives.

Despite exceeding earnings expectations and reporting record customer growth, T-Mobile shares fell approximately 5 percent on concerns about forward guidance. The company projected adding between 900,000 and 1 million new accounts in 2026, which some analysts viewed as conservative given the strong momentum. T-Mobile raised its multi-year growth outlook and increased share buyback plans.