AI Takeaway
EXE delivered a transformational Q1 FY2026, doubling revenue to $4.40B and swinging to $1.16B net income from a prior-year loss, driven by dramatically improved operating leverage and a surge in operating cash flow to $2.40B.
Revenue
$4.4B
++100.23% YoY
EPS (Basic)
$4.83
++555.66% YoY
Operating Income
$1.53B
++671.27% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue surged 100.2% to $4.40B in Q1 FY2026 from $2.20B in Q1 FY2025, signaling a major step-change in the company's business scale, likely reflecting a significant acquisition, merger, or transformative contract wins.
Source: Source: 10-Q Income Statement
Operating income improved by $1.80B to $1.53B from a loss of $268M, with operating margin expanding approximately 47 percentage points to 34.8%, indicating substantial operating leverage and cost discipline relative to the revenue base.
Source: Source: 10-Q Income Statement
Cash and equivalents jumped 536.1% to $2.22B from $349M, supported by operating cash flow of $2.40B — up 119.2% year-over-year — reflecting strong cash conversion and improved earnings quality.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement
2 more insights available
Upgrade to unlockRevenue doubling in a single quarter suggests a major acquisition or structural change, which carries significant integration risk. Failure to effectively integrate operations, systems, or personnel could erode the margin gains achieved in Q1 FY2026. Execution missteps could reverse the profitability turnaround.
Source: Source: 10-Q Income Statement & Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $3.83 versus the $3.68 analyst consensus — a +4.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.4B | $2.2B | +100.23% |
Operating Income | $1.53B | $-268M | +671.27% |
Net Income | $1.16B | $-249M | +565.46% |
EPS (Basic) | $4.83 | $-1.06 | +555.66% |
EPS (Diluted) | $4.81 | $-1.06 | +553.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $29.52B | $27.93B | +5.68% |
Current Assets | $4.39B | $2.11B | +107.62% |
Total Liabilities | $9.97B | $10.74B | -7.15% |
Current Liabilities | $3.95B | $3.59B | +10.06% |
Stockholders' Equity | $19.55B | $17.19B | +13.70% |
Cash & Equivalents | $2.22B | $349M | +536.10% |
Long-Term Debt | $5.01B | $5.24B | -4.48% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.4B | $1.1B | +119.16% |
Investing Cash Flow | $-601M | $-507M | -18.54% |
Financing Cash Flow | $-192M | $-557M | +65.53% |
Share Buybacks | $66M | $0 | — |
D&A | $711M | $711M | 0.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 34.8% | -12.2% | +47.02% |
Net Margin | 26.4% | — | — |
ROE | 5.9% | — | — |
ROA | 3.9% | — | — |
Current Ratio | $1.111 | — | — |
Debt to Equity | $0.51 | — | — |
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EXE's revenue doubled to $4.40B in Q1 FY2026, up 100.2% from $2.20B in Q1 FY2025. This dramatic increase suggests a transformational event such as a major acquisition or significant new business activity rather than organic growth alone.
Yes, EXE swung to a net income of $1.16B in Q1 FY2026 from a net loss of $249M in Q1 FY2025, a 565.5% improvement. Basic EPS turned positive at $4.83 compared to -$1.06 in the prior year period.
The headline takeaways are revenue doubling to $4.40B, operating margin expanding to 34.8% from -12.2%, and cash surging 536% to $2.22B. Operating cash flow also nearly doubled to $2.40B, signaling strong underlying business momentum.
EXE's balance sheet strengthened materially, with stockholders' equity rising 13.7% to $19.55B and total liabilities falling 7.1% to $9.98B. The current ratio of 1.11x is adequate but modest, while the debt-to-equity ratio of 0.51x reflects manageable leverage.
Based on the financial data, key risks include integration challenges from the rapid revenue doubling, the sustainability of the 34.8% operating margin, and a thin current ratio of 1.11x that leaves limited liquidity buffer. The $5.01B long-term debt load also warrants monitoring given the scale of recent business changes.