Market Analysis for February 26th, 2026

Canada’s TSX  gained over 1 percent, led by strength in the energy and financial sectors. Canadian Imperial Bank of Commerce, Royal Bank of Canada, and Toronto-Dominion Bank all reported quarterly earnings above last year’s levels, with capital markets divisions driving much of the upside. Robust trading revenue,  particularly in fixed income and equity markets  offset softer consumer and commercial banking momentum.

However, management commentary struck a cautious tone. Banks signaled that provisions for credit losses (PCLs) are likely to trend higher in 2026 as households and small businesses adjust to elevated borrowing costs and ongoing trade uncertainty. While credit metrics remain manageable, forward-looking guidance implies a normalization in loan performance rather than continued benign conditions.

Investors are now focused on Friday’s Canadian GDP release for December, which will provide a clearer read on whether tariff-related pressures and weaker global trade are beginning to materially weigh on domestic growth. The trajectory of GDP will be critical for Bank of Canada rate expectations and, by extension, financial sector multiples.

American Markets

US stocks broadly pulled back sharply despite strong earnings from Nvidia. Although the company delivered robust results and issued an upbeat forward outlook,  reinforcing continued AI infrastructure demand,  investors “sold the news.” Investors were particularly disappointed by the absence of detailed commentary regarding China exposure and export dynamics, which remain a key sensitivity for semiconductor names. The reaction underscores how elevated positioning and expectations in mega-cap tech leave little margin for uncertainty.

European Markets

European markets reached fresh record highs, supported by resilient corporate earnings and improving risk sentiment. However, data from the European Central Bank showed euro zone business lending growth slowing, suggesting tighter credit transmission and more cautious corporate borrowing behavior. The moderation in loan growth may reflect both weaker investment appetite and the lagged effects of restrictive monetary policy.

UK stocks  moved higher, led by a sharp rally in Rolls-Royce Holdings after the company reported profits jumping nearly 40%, reinforcing its operational turnaround narrative and margin expansion trajectory.

Domestic data revealed over one million young Britons are reportedly not in employment, education, or training,  a structural labour market concern that will continue to weight on the economy.

Corporate Stock News

Agilent Technologies (A): Reported Q1 revenue of $1.80B, in line with estimates, with strength in life sciences and diagnostics. Raised the top end of its full-year revenue outlook to $7.5B.

American Tower Corporation (AMT): Jefferies raised its price target to $209 from $200, citing international tower and data center growth offsetting softer U.S. fundamentals.

Amazon.com (AMZN): Lost a bid to dismiss UK lawsuits worth up to £4B alleging abuse of market dominance, while reports indicated a potential $50B investment in OpenAI tied to AGI milestones or an IPO.

APA Corporation (APA): Beat Q4 profit estimates on lower operating costs despite weaker commodity prices; adjusted EPS came in at 91 cents versus 64-cent expectations.

AT&T (T): Settled a lawsuit allowing shareholders to vote on workforce diversity disclosure at its 2026 annual meeting.

Baidu (BIDU:US): Reported a 4% revenue decline amid weak advertising, offset by strong AI and cloud growth, with core AI revenue rising to 11B yuan.

Boeing (BA:): FAA issued an airworthiness directive for 737 MAX aircraft over a circuit breaker issue; Boeing said certification timelines remain unaffected.

C3.ai (AI): Announced a 26% workforce reduction and forecast revenue below estimates; restructuring charges expected between $10M–$12M.

Canadian Imperial Bank of Commerce (CM:CA): Posted Q1 net income of C$3.10B, up from C$2.17B, driven by a 42% surge in capital markets earnings.

Cheniere Energy (LNG:US): Reported a 64% rise in full-year profit to $5.33B on strong LNG demand and 30% revenue growth.

Chime Financial (CHME:US): Forecast 2026 revenue above estimates as active members grew 19% and purchase volume rose 16%.

Cognizant Technology Solutions (CTSH:US): Management downplayed fears of AI replacing IT services, emphasizing continued enterprise demand for AI integration.

Coupang (CPNG): Fined 2.2B won by South Korea’s regulator for pressuring suppliers and delaying payments.

Eni (E): Q4 adjusted earnings rose 35% year-over-year, supported by strong exploration and refining performance.

FS Bancorp (FSBW): Agreed to acquire Pacific West Bancorp in a $36.4M deal, creating a combined entity with $3.6B in assets.

HSBC (HSBC): Began exploring a sale of its Singapore life insurance manufacturing business, potentially valued above $1B.

Jefferies Financial Group (JEF:): Sued by investors alleging misrepresentation in a fund linked to bankrupt auto supplier First Brands.

Lowe’s Companies (LOW): Piper Sandler raised its target to $300 from $294 on improving sales trends.

Magnite (MGNI): B. Riley cut its target to $20 from $25 due to valuation compression despite improving CTV momentum.

Nu Holdings (NU): Reported a 50% increase in Q4 net profit to $894.8M, with loan growth up 40%.

Nvidia (NVDA): Reported 94% revenue growth to $68.13B and forecast Q1 revenue above estimates, though guidance excluded China data center sales.

Paramount Global (PARA): Forecast Q1 revenue slightly below expectations amid legacy TV declines, while Paramount+ subscribers reached 78.9M.

Royal Bank of Canada (RY:CA): Reported Q1 adjusted net income of C$5.86B, supported by capital markets and personal banking strength.

Salesforce (CRM): Forecast fiscal 2027 revenue slightly below expectations but raised its 2030 target to $63B on AI initiatives.

Snowflake (SNOW:): Forecast fiscal 2027 product revenue above estimates, though Scotiabank cut its price target citing valuation concerns.

Steel Dynamics (STLD): Saw its A$15B revised bid for BlueScope Steel rejected, though further discussions remain possible.

Stellantis (STLA): Reported a €20.1B net loss in H2 2025 after significant EV-related writedowns, despite revenue growth.

Tesla (TSLA): Logged zero autonomous test miles in California in 2025, despite ongoing robotaxi ambitions.

Toronto-Dominion Bank (TD:CA): Reported Q1 adjusted net income of C$4.22B, up from C$3.62B, supported by higher interest income.

Toyota Motor Corporation (TM): Plans a large-scale unwinding of strategic shareholdings worth up to $19B as part of governance reforms.

The Trade Desk (TTD): Forecast Q1 revenue below estimates amid competitive pressures, though Q4 results beat expectations.

United Therapeutics (UTHR): Jefferies raised its price target to $640 from $575, citing commercial momentum and upcoming Phase III catalysts.

Universal Health Services (UHS): Missed Q4 estimates due to flat admissions but issued 2026 guidance above expectations.

VICI Properties (VICI): Forecast 2026 AFFO below estimates amid macro uncertainty.

Zoom Communications (ZM): Forecast quarterly profit below expectations despite Q4 revenue beat, citing competitive pressures.