How to read a company's quarterly results
Nov 10, 2026
Listed companies report on their business at regular intervals, and in the US most do so every quarter. These reports show how much a company sold, what it spent and how much profit it made, and they often include the company's own outlook. This guide explains where quarterly results are published, what the main figures mean and what to look for when you read a report.
Where companies publish their results
US companies usually announce their quarterly results in a press release, often called an earnings release, and file it with the US Securities and Exchange Commission (SEC) on a Form 8-K. On the same day, many hold a conference call in which managers present the results and answer analysts' questions.
The full quarterly report is filed on Form 10-Q. It contains the financial statements and management's discussion of the results. The 10-Q financial statements are not audited, while the annual report on Form 10-K includes audited financial statements for the full year. Larger companies (large accelerated and accelerated filers) must file the 10-Q within 40 days after the end of the quarter, and other companies within 45 days.
In the European Union, listed companies must publish an annual report and a half-yearly report. Quarterly reports are not required by EU law, but many large European companies still publish quarterly results or trading updates.
Companies post all of these documents in the investor relations section of their websites.
The income statement: revenue, costs and profit
The income statement shows the company's performance over the quarter. Its main lines are:
- Revenue (also called sales or turnover): the money the company earned from selling its products and services
- Gross profit: revenue minus the direct costs of making those products or providing those services
- Operating income: gross profit minus operating costs such as salaries, research and marketing
- Net income: the profit left after all costs, interest and taxes. It is often called the bottom line
Many reports also break revenue down by business segment or region, which shows which parts of the company are growing or shrinking.
Earnings per share (EPS)
Earnings per share is net income divided by the number of shares. It makes it easier to compare profit over time when the number of shares changes, for example after a share buyback. Reports usually show basic EPS and diluted EPS, which also counts shares that could be created from stock options and convertible securities.
Balance sheet and cash flow
The balance sheet is a snapshot on the last day of the quarter. It lists what the company owns (assets, such as cash and inventory), what it owes (liabilities, such as debt) and the shareholders' equity.
The cash flow statement shows how cash moved during the quarter: cash from the company's operations, cash spent on investments such as new equipment, and cash used for financing, such as taking on or repaying debt, dividends and share buybacks. Profit and cash are not the same thing, so this statement can show whether profits are turning into cash.
GAAP and adjusted figures
US companies prepare their financial statements under generally accepted accounting principles (GAAP). Many also publish adjusted, or non-GAAP, figures that leave out certain items, such as restructuring costs or stock-based pay. Companies say these figures show their underlying performance, but each company can define them differently. SEC rules require companies to show the most comparable GAAP figure alongside any non-GAAP measure and to explain the difference, so it is worth reading both.
Comparing periods
A single quarter's figures say little on their own. Reports usually compare results with the same quarter a year earlier (year on year), which removes seasonal effects, for example for retailers in the holiday season. Some figures are also compared with the previous quarter (quarter on quarter).
Guidance and the outlook
Many companies give guidance: their own forecast for revenue, profit or other figures for the next quarter or the full year. Guidance is a forward-looking statement and depends on assumptions that may not turn out to be correct. Reports usually include a section that lists the risks that could cause actual results to differ.
Results versus expectations
Analysts publish estimates for revenue and EPS before each report. News reports often describe results as beating or missing these estimates. The market's reaction to a report can depend as much on how the results and guidance compare with expectations as on the figures themselves.
What to look for when you read a report
- the main figures for revenue, operating income, net income and EPS, and how they compare with a year earlier
- which segments and regions are growing or shrinking
- the difference between GAAP and adjusted figures
- cash flow from operations and the level of debt
- changes to guidance and the reasons the company gives
- comments from managers in the conference call
What this means for investors
Quarterly results are one of the main sources of information about a company. For Investing.one users following companies that report this season, the earnings release, the 10-Q and the company's investor relations page are the primary sources. Our Week ahead article lists selected companies reporting this week.
Sources
- SEC: Beginners' Guide to Financial Statements
- Investor.gov: Form 10-Q
- Investor.gov: Form 8-K
- Investor.gov: Earnings per share (EPS)
- Investor.gov: Non-GAAP financial measures
- European Commission: Transparency requirements for listed companies
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