| “The Trump tariffs will cause a recession in the second half of this year.” | | | | | | On earnings calls: | - Broadcom (No. 88) saw a 20% year-over-year increase in revenue in Q2 thanks in part to $4.4 billion in AI semiconductor revenue, up from 46% in the same quarter last year. CEO Hock Tan says he expects AI semiconductor revenue to increase to about $5.1 billion in Q3 and to continue increasing in fiscal year 2026.
- Dollar Tree (No. 139) COO Michael Creedon announced that the chain added 2.6 million new customers in Q1 alongside a 9% increase in the amount of customers visiting Dollar Tree locations at least three times a month. “In the current environment, our low prices and smaller pack sizes are perfect for families trying to manage a tight household budget,” Creedon said.
- Hewlett Packard Enterprise (No. 143) saw revenue increase 7% year-over-year in Q2, but decline 3% from last quarter. CFO Marie Myers noted that the quarter-over-quarter loss was impacted by “corrective pricing actions we took at the end of Q1,” though revenue from AI systems helped mitigate that loss. She also announced that the company expects to complete an ongoing workforce reduction of around 5% by the end of the year.
- Lululemon athletica (No. 401) quarterly performance was in line with expectations. CFO Meghan Frank said on the Thursday call that the company is planning “strategic price increases” that will be “modest in nature” to offset tariffs, and shares plunged by about 20% on Friday.
- Campbell’s (No. 425) CEO Mick Beekhuizen said the company has observed a “growing preference for home cooked meals” by its consumers, “leading to the highest levels of meals prepared at home since early 2020.” They’re also buying more condensed cooking soups, broth, and Italian sauces, which suggests they’re trying to reduce spending on food and dining. Campbell’s third-quarter net sales increased by 4%.
- ABM Industries (No. 458) revenues increased by 4.6% compared to Q2 last year. However, the facilities maintenance company saw some project delays in the second quarter that CEO Scott Salmirs said in a statement will be realized next quarter.
- Science Applications International (No. 496) CFO Prabu Natarajan said on the call that despite “extra scrutiny” on the value of government contracts like the ones SAIC relies on, there has not “really not seen a slowdown in the actual solicitation of proposals.” Revenues increased 2% compared to the prior year’s first quarter.
| | Earnings to watch next week: United Natural Foods (No. 138), Casey's General Stores (No. 297), and J.M. Smucker (No. 466) on June 10; Oracle (No. 87) and Chewy (No. 357) on June 11; and Adobe (No. 201) on June 12. | | | | | Fortune COO Summit 2025 | Join Fortune editors, fellow COOs, and top speakers from around the world as they explore strategies and solutions for addressing today’s most pressing business issues, from talent management to navigating financial pressures and integrating AI and other emerging technologies. (Scottsdale, Ariz.) Request invite | | | Brainstorm AI Singapore: The Age of Intelligence | The next generation of AI will reason, plan, and act—all while managing a complete overhaul of computing as we know it. Are we prepared to fully embrace this new capability—to deploy it, scale it, regulate it, and live, work, and play with it? (Singapore) Register now | | | | | | This email was sent to | | | | | | Fortune Media
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