Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, Truist Securities analysts reaffirmed their Buy rating for Couchbase Inc (NASDAQ:BASE) stock, maintaining a price target of $21.00. This decision follows the company’s release of its first-quarter fiscal year 2026 results, which exceeded the company’s own guidance across various metrics. With analyst targets ranging from $16 to $26 and the stock currently trading at $18.56, InvestingPro data shows the company maintains impressive gross profit margins of 88%.
Couchbase reported solid performance in key areas, particularly in large customer growth, signaling stability according to the management. The management also shared that the company is regaining momentum after experiencing challenges in fiscal year 2025. This recovery is reflected in the company’s 16.35% revenue growth over the last twelve months, though InvestingPro analysis indicates the stock is trading slightly above its Fair Value.
In light of these results, Couchbase has increased its full-year annual recurring revenue (ARR) and revenue forecasts. However, the adjustments were made conservatively, not fully reflecting the quarter’s outperformance, as a cautious measure against macroeconomic uncertainties.
Truist Securities analysts expressed support for this cautious approach, considering the potential risks and challenges from previous quarters. They have updated their estimates to align with the company’s revised outlook while maintaining their positive stance on the stock.
In other recent news, Couchbase Inc. reported its first-quarter annual recurring revenue (ARR) reaching $252.1 million, marking a significant growth milestone for the company. The revenue for the quarter increased by 10% year-over-year, although it slightly lagged behind ARR due to ongoing migrations to Couchbase’s Capella. Despite this, Couchbase’s fiscal year 2026 ARR outlook has been raised to a growth of over 18%, bolstered by strong Capella growth. Analysts from DA Davidson and Stifel have maintained their Buy ratings on Couchbase, with price targets of $25.00 and $22.00, respectively, citing the company’s robust performance and strategic direction. However, Goldman Sachs reiterated a Sell rating, maintaining a $16 price target, expressing concerns about Couchbase’s path to achieving positive operating margins and free cash flow. Morgan Stanley (NYSE:MS) analysts raised their price target to $19, highlighting the company’s 20% ARR growth in constant currency. Couchbase’s earnings per share (EPS) of -0.33 missed the forecasted -0.08, yet revenue exceeded projections by $910,000, demonstrating strong sales performance despite the earnings shortfall.
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