Earnings week: AI and data centre demand shape Q3 tech results

Earnings reports made up the week's releases. Several companies tied results to AI and data centre demand: BCE says higher capital spending on Bell AI Fabric data centres and Ziply Fiber's network reduced free cash flow, Kyndryl reported hyperscaler-related revenues of more than $550 million, up 27.2%, and ECARX signed a non-binding memorandum of understanding with Arm to co-develop AI compute platforms. MACOM posted the strongest growth, with fiscal fourth quarter revenue up 62.7% to $424.8 million.

IT services and data firms showed flat or declining revenue alongside steps to protect earnings. Kyndryl's revenue fell 1.9% as it took workforce rebalancing charges, EPAM grew revenue 2.3% while expanding buybacks, and Teradata's revenue fell 4% even as it raised its EPS outlook. Guidance was mostly confirmed or raised: BCE, Kyndryl and ECARX reaffirmed outlooks, Teradata raised EPS ranges and MACOM guided to higher first-quarter revenue.