Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, DA Davidson analysts reaffirmed their Buy rating on Couchbase Inc (NASDAQ:BASE) stock, while also maintaining a price target of $25.00. Currently trading at $18.56 with a market cap of $1 billion, the stock has gained 19% year-to-date. The analysts highlighted the company’s strong performance in its fiscal first quarter, with annual recurring revenue (ARR) reaching $252.1 million. This figure includes a $3.6 million foreign exchange tailwind, surpassing the consensus estimate of $244.1 million and marking a 20% year-over-year growth at constant currency. According to InvestingPro, analyst consensus remains bullish, with price targets ranging from $16 to $26.
Guidance for the second quarter ARR also exceeded expectations, and the fiscal year 2026 ARR guidance was revised upward, though not as significantly as the first quarter’s results. The analysts pointed out that revenue and operating loss guidance adjustments were mixed, due to revenue headwinds from Capella migrations and foreign exchange impacts on operating expenses. InvestingPro data shows impressive gross profit margins of 88.08% and revenue growth of 16.35% over the last twelve months, despite challenging market conditions.
Despite these challenges, the analysts noted that revenue growth and ARR growth are expected to align again in the second half of the year and into fiscal year 2027. The report emphasized that Couchbase has had a robust start to the year, especially considering the challenging macroeconomic environment.
The DA Davidson team reiterated their confidence in Couchbase’s performance and potential, maintaining their Buy rating and $25 price target. The report underscores the analysts’ positive view on the company’s growth trajectory and strategic direction.
In other recent news, Couchbase Inc. reported its financial results for the second quarter of 2025, posting revenue of $56.5 million, which exceeded forecasts of $55.59 million. However, the company’s earnings per share (EPS) of -0.33 fell short of the anticipated -0.08. Despite this earnings miss, Couchbase’s total annual recurring revenue (ARR) grew by 21% year-over-year, reaching $252.1 million, with significant contributions from its Capella platform. In the first quarter of fiscal year 2026, Couchbase’s revenue and ARR slightly surpassed consensus estimates, and its operating margin exceeded expectations by 100 basis points. Morgan Stanley (NYSE:MS) analysts responded to Couchbase’s performance by raising the stock price target to $19 from $18, citing a 20% ARR growth in constant currency. Conversely, Goldman Sachs maintained a Sell rating, expressing concerns over Couchbase’s path to achieving positive operating margins and free cash flow. Despite these mixed analyst views, Couchbase continues to focus on product innovation and strategic initiatives to drive future growth.
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