Market Notes: What Tesla's, Meta's, IBM's, Lockheed Martin's and SpaceX's Earnings Told Long-Term Investors

Five widely followed companies reported this week: an automaker, a social-media and AI company, a technology company, a defense contractor and a space and satellite company. Their reports are useful case studies in how to read quarterly results, including the parts that do not fit a tidy story. None of this is a recommendation (see the disclosures below).

What did Tesla report?

Tesla (Nasdaq: TSLA) reported on Wednesday, October 21. Revenue was $28.05 billion versus $28.10 billion a year earlier; GAAP operating income was $718 million versus $1.62 billion; GAAP diluted earnings per share were $0.22 versus $0.39; free cash flow was $1.53 billion versus $3.99 billion; and capital expenditures were $4.73 billion versus $2.25 billion. Deliveries were 486,532 vehicles versus 497,099 (Tesla Form 8-K, Exhibit 99.1).

On the call, CFO Vaibhav Taneja said Tesla is revising its capital-expenditure guidance to approximately $20 billion for the current year, and described deliveries as "constrained primarily by production." CEO Elon Musk said the early part of the ramp for the Optimus robot "has a shallow slope and is somewhat bumpy."

What did Meta's quarter show?

Meta Platforms (Nasdaq: META) also reported on October 21. Revenue was $64.60 billion, up 26% from $51.24 billion. Income from operations was $12.99 billion versus $20.54 billion a year earlier (a 20% margin versus 40%), which includes a $9.89 billion charge tied to an August 2026 agreement with 52 state attorneys general. Free cash flow was negative $2.12 billion versus positive $10.63 billion. Meta guided to 2026 capital expenditures of $135 billion to $145 billion (Meta Form 8-K, Exhibit 99.1).

On the call, CFO Susan Li said the company continues to see scrutiny on youth-related issues and has several U.S. youth-related trials scheduled in the coming months. Asked about 2027 spending, she declined to give expense or capital-expenditure guidance until the fourth-quarter call.

What did IBM report?

IBM (NYSE: IBM) reported on October 21. Revenue was $17.10 billion, up 5% (6% at constant currency). Software revenue was $7.80 billion, up 8%; and consulting was $5.34 billion, flat (up 2% at constant currency). GAAP net income was $2.19 billion versus $1.74 billion. Full-year revenue growth guidance of 4% to 5% at constant currency was unchanged, and the free-cash-flow outlook was raised to growth of more than $1 billion (IBM Form 8-K, Exhibit 99.1).

On the call, CFO Jim Kavanaugh said IBM now expects full-year software growth of approximately 7% to 8%. CEO Arvind Krishna tempered one strong line: "I do not expect double-digit performance in TP to keep going," referring to transaction processing. Asked about IBM's longer-term software target, Kavanaugh said it would be quantified in January.

What did Lockheed Martin report?

Lockheed Martin (NYSE: LMT) reported on Thursday, October 22. Sales were $20.71 billion, up 11% from $18.61 billion; diluted earnings per share were $7.97 versus $6.95; and free cash flow was $3.00 billion versus $3.35 billion. Backlog was a record of about $292.0 billion versus $193.6 billion at year-end 2025. The company raised its 2026 outlook to sales of about $80 billion to $82 billion and free cash flow of about $7.8 billion to $8.0 billion. The release also noted that costs on the F-35 Lot 20 advance-acquisition contract began exceeding current authorization and funding, which it said would hurt future results unless the U.S. government provides more (Lockheed Martin Form 8-K, Exhibit 99.1).

On the call, management described a 10-year F-35 multi-year agreement as the path to 850 U.S. aircraft, said it expects a pension contribution above $1 billion in 2027, and said it sees high single-digit revenue growth in 2027 but will not give formal guidance until January.

What did SpaceX report?

SpaceX (Nasdaq: SPCX) reported on Tuesday, October 20. Revenue was about $14.6 billion versus $5.58 billion, including $5.25 billion from Starlink connectivity, up 69%, and $7.56 billion from its SI segment, versus $0.81 billion. Operating income was $2.79 billion versus a $273 million loss, and net income was $4.40 billion versus a $1.05 billion net loss. Net income included a $390 million tax benefit. Capital expenditures were $19.59 billion versus $6.88 billion, of which $16.44 billion was in SI. The company held $51.3 billion in cash and $38.6 billion in marketable securities, with about $38.8 billion of debt and finance leases (SpaceX third-quarter 2026 results).

On the call, CFO Bret Johnsen said the company ended the quarter with 1.7 gigawatts of nameplate compute capacity, that connectivity gross margin of 55% included a one-time benefit of roughly 3%, primarily from tariff refunds, and that fourth-quarter capital expenditures are expected to be $35 billion to $40 billion. CEO Elon Musk, on Starship, said "Success is not guaranteed on these first flights." He added that he thought it "more likely than not" the next flight succeeds. He also said SpaceX and Tesla have formed special committees on a possible combination that have not reached agreement on terms.

What can long-term investors take from these reports?

First, growth and cash generation can diverge. Capital spending is large and rising: it roughly doubled at Tesla, Meta guided to $135 billion to $145 billion for 2026, and SpaceX guided to $35 billion to $40 billion for the fourth quarter alone, while free cash flow fell at Tesla and Meta. Second, reported and adjusted figures differ, so it helps to read what is included, such as Meta's legal charge or SpaceX's one-time tariff-refund benefit to connectivity margin. Third, concentration matters: Lockheed Martin's results depend on government funding decisions, and IBM's own CEO cautioned against extrapolating one strong line. A diversified portfolio, sensible costs and a plan matched to your own goals are what carry investors through quarters like these, good and bad.

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