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Together with DUTY
👉 Week in Review — Too Long; Didn’t Read:
Key Earnings Announcements:
Salesforce’s Agentforce hit $1B in ARR.
Dell’s AI-optimized server revenue increase +757%.
Costco is sitting on $19B in cash (special dividend?).
Investor Events / Global Affairs:
Negotiations with Iran continue to remain in focus.
Anthropic is approaching a TRILLION dollar valuation.
SpaceX is massively impacting the broader market.
Economic Updates:
Inflation continues to pressure households.
Fed President Kashkari reaffirmed that it’s a serious issue.
Let’s dive right in!
👉 Best and Worst ETF Performers of the Week
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👉 Key Earnings Announcements:
Salesforce’s Agentforce hit $1B in ARR, Dell’s AI-optimized server revenue increase +757%, and Costco is sitting on $19B in cash (special dividend?).
Salesforce (CRM)
Key Metrics
Revenue: $11.1 billion, an increase of +13% YoY
Operating Income: $2.3 billion, an increase of +21% YoY
Profits: $2.1 billion, an increase of +37% YoY
Earnings Release Callout
“This was an outstanding quarter for Salesforce — record revenue, record deals, and cash flow. Agentic AI is the biggest growth opportunity for our customers, and for Salesforce. We’re the #1 Agentic CRM, with Agentforce now powering every Customer 360 application and helping tens of thousands of businesses across every industry transform into Agentic Enterprises. With more than $1 billion in Agentforce ARR, $3.4 billion in combined AI and data ARR, and 3.8 billion Agentic Work Units delivered for our customers, Salesforce has never been more essential.”
My Takeaway
The company successfully reaccelerated their top-line revenue growth and delivered a massive earnings beat. Their aggressive pivot toward agentic AI is paying off — shown by their $25B share buyback announced this quarter.
Management revealed that organic ARR for Agentforce crossed the $1 billion threshold, surging 205% year-over-year to $1.2 billion. This financial milestone was backed by staggering usage metrics: customers executed 3.8 billion Agentic Work Units during the quarter. To transparently show where growth is originating, Salesforce adjusted its reporting structure. While the core "Agentforce Apps" grew at a steady 7%, the foundational "Data 360" layer jumped by 23%. The newly integrated Informatica acquisition contributed roughly 3% to the overall 13% revenue growth rate.
Salesforce produced $6.7 billion in operating cash flow. The board authorized and immediately commenced a $25 billion accelerated share repurchase (ASR) program. Rather than using cash on hand, the company funded this massive buyback by issuing $25 billion in new Senior Notes.
Marc Benioff framed the quarter as the dawn of the "agentic enterprise," arguing that Salesforce is no longer just a system of record, but the active intelligence layer executing tasks across the corporate world. Slack’s role was heavily emphasized, functioning as the primary interface for these AI agents and factoring into nearly half of all million-dollar-plus deals signed in Q1.
Looking ahead, they’re expecting $46B in revenue over the next 12-months.
I’m absolutely going to re-open a position in Salesforce. I closed my position sometime in 2025 — the stock is beaten down + Marc had an incredible interview on the All In Podcast recently. Count me in!
Dell Technologies (DELL)
Key Metrics
Revenue: $43.8 billion, an increase of +88% YoY
Operating Income: $3.7 billion, an increase of +214% YoY
Profits: $3.4 billion, an increase of +256% YoY
Earnings Release Callout
“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute and storage. We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing.”
My Takeaway
Dell posted massive growth during the quarter, completely blowing past Wall Street’s expectations, as demand for their AI-optimized servers skyrocket.
The Infrastructure Solutions Group (ISG) generated a record $29.0 billion, up 181%. Within ISG, AI-optimized server revenue exploded by 757% to $16.1 billion. Crucially, the AI boom created a "halo effect" across the rest of the portfolio, driving traditional server revenue up 92% as enterprises upgraded their legacy systems. The Client Solutions Group (CSG) also performed well, shaking off a prolonged post-pandemic PC slump to post $14.6 billion in revenue, a 17% increase fueled heavily by commercial demand.
The company produced $4.1 billion in operating cash flow during the quarter. Management deployed this liquidity aggressively, returning $2.1 billion to shareholders, heavily weighted toward the repurchase of 11 million shares. Despite this aggressive capital return, Dell ended the quarter with a fortress balance sheet containing nearly $11.6 billion in cash.
Management emphasized that the pipeline for AI is growing at greater than historical rates, pointing to the $24.4 billion in AI orders booked in a single quarter. They said the only thing preventing them from recognizing even more revenue is the global supply chain, specifically highlighting tightness in memory components like DRAM and NAND that will force a substantial backlog into the next fiscal year.
Look ahead, the company raised their full-year revenue guidance to $167B, with $60B of that coming specifically from AI servers.
No position, unfortunately.
Costco (COST)
Key Metrics
Revenue: $70.5 billion, an increase of +12% YoY
Operating Income: $2.8 billion, an increase of +11% YoY
Profits: $2.2 billion, an increase of +15% YoY
Earnings Release Callout
"Our focus is providing quality goods and services at the lowest possible price continues to resonate strongly with our members. The value proposition is performing well against ongoing macro uncertainty."
My Takeaway
Costco continues to prove to Wall Street their durability. They posted double-digit growth across both top and bottom lines — beating expectations.
Diving into the business highlights, the e-commerce segment was the star. Digitally-enabled comparable sales surged 21%, driven by a massive 37% spike in online traffic and a highly successful push into same-day delivery. In the physical warehouses, the company's gas stations functioned as a massive customer acquisition engine, posting record-breaking volumes as consumers sought relief from high national fuel prices. This traffic fed directly into the core merchandise business, where fresh foods, gold, jewelry, and pharmacy — buoyed by demand for GLP-1 medications — all posted robust sales growth.
The company generated over $11.13 billion in operating cash flow through the first 36 weeks of the fiscal year. This liquidity pushed its cash and cash equivalents pile to an enormous $18.95 billion. While capital expenditures reached $1.41 billion for the quarter as the company targets 30-plus new store openings annually, the rapidly growing cash hoard has Wall Street actively speculating about the timing of the next special dividend.
Management emphasized their core philosophy of being the first to lower prices and the last to raise them. They explained that their recent price reductions, particularly across Kirkland Signature products, are actively driving higher shopping frequencies and larger basket sizes.
The company committed to $6.5B in total capital expenditures and maintained their 30-plus net new warehouses globally.
Long COST.
👉 Investor Events / Global Affairs:
Negotiations with Iran continue to get constant focus, Anthropic is approaching a TRILLION dollar valuation, and SpaceX is massively impacting the broader market.
U.S.-Iran Negotiations Continue as Middle East Tensions Remain Elevated
Smoke rises following an Israeli airstrike on the village of Arnoun on May 31. Source: AFP/Getty Images
The U.S. and Iran continued exchanging proposals over the weekend in an effort to reach a broader agreement that would extend the current ceasefire, reopen the Strait of Hormuz, and address concerns surrounding Iran’s nuclear program. While both sides appear to be actively negotiating, officials indicated that key disagreements remain and there is still no guarantee a final deal will be reached.
One of the largest sticking points remains control of the Strait of Hormuz, one of the world's most important energy shipping routes. Reports suggest Iran is seeking a greater role in overseeing traffic through the waterway, while the U.S. continues pushing for unrestricted international access. Discussions have also reportedly included access to frozen Iranian assets and limitations on Iran’s nuclear activities.
Meanwhile, regional tensions remain high despite the ongoing diplomacy. Israel significantly expanded its military operations in southern Lebanon after renewed attacks from Hezbollah, raising concerns that the conflict could continue spreading even if progress is made between Washington and Tehran.
Markets continue to closely monitor developments because the outcome could have major implications for oil prices, inflation, and global economic growth. A successful agreement could help stabilize energy markets and reduce inflationary pressures, while a breakdown in negotiations could reignite fears of further disruptions across the region.
“This is the first time the Iranians have ever been willing — in 47 years — to discuss not having a nuclear weapon. Now it’s on the table for the first time thanks to President Trump.”
Anthropic Approaches $1 Trillion Valuation Ahead of IPO
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