Third-quarter reports split between rising order books and rising costs

Companies reporting third-quarter results in the week of October 19 described two different positions. Some started the quarter with growing order books and raised their outlooks. Others said their costs rose faster than their revenue, whether because of fuel, commodities or capital spending. This analysis compares nine large companies from industries as different as airlines, consumer goods, automobiles, defense, media and mining, using their own earnings releases filed with the Securities and Exchange Commission. It records what each company said caused the change and avoids assigning causes the filings do not state.

Rising input costs: fuel and commodities

United Airlines reported record quarterly revenue of $17.9 billion, up 17.4%, in its earnings release. Its aircraft fuel expense was $4,843 million against $2,997 million a year earlier, up 61.6%. The average price per gallon was $3.90 against $2.43, up 60.3%, while the volume of fuel consumed rose only 0.8%, to 1,243 million gallons from 1,233 million. In other words, fuel cost rose almost entirely because of price. Adjusted earnings per share were $2.54, which the company said were within its guidance despite a 62% increase in fuel expense. Brent crude, the international benchmark, closed at $115.22 on October 20 and $130.03 on October 9, according to the Federal Reserve Bank of St. Louis. United expects fourth-quarter revenue growth of more than 20%.

Procter & Gamble described a margin squeeze of a different kind. Net sales rose 4% to $23.3 billion in its fiscal first quarter, and organic sales also rose 4%, driven by a 2% increase in volume and a 1% contribution from mix, with a minor positive effect from pricing. The reported gross margin fell 160 basis points. The company named three drivers: 140 basis points from higher commodity costs, 140 from product reinvestments and 50 from unfavorable mix. It kept its organic sales growth guidance at 1% to 3%.

Heavy investment: Tesla and General Motors

Tesla's revenue was flat, at $28,046 million against $28,095 million, but income from operations fell to $718 million from $1,624 million and net income attributable to common stockholders to $787 million from $1,373 million, a decline of 42.7%. Capital expenditures were $4,732 million against $2,248 million, so free cash flow dropped to $1,531 million from $3,990 million. Deliveries were 486,532 against 497,099, and production was 464,391. Tesla said that battery availability "continued to be the limiting factor in increasing auto volumes" and that it continues to invest across its businesses, including robotics and energy. Its shares ended down 3% on October 22, the day after the results, according to a market report.

General Motors showed a different result from a similar industry. Its revenue rose 2.9% to $50,015 million and adjusted EBIT, a measure of operating profit, rose 21.6% to $4,106 million, a margin of 8.2% against 6.9%. It narrowed its 2026 guidance for adjusted EBIT to $14.5 billion to $15.5 billion from $14.0 billion to $16.0 billion, raised its guidance for adjusted automotive free cash flow to $11.5 billion to $12.5 billion from $9.5 billion to $11.5 billion, and approved a new $20.0 billion share repurchase authorization. Shares outstanding fell to 849 million at September 30 from 904 million at the end of 2025. Its international operations earned $28 million of adjusted EBIT against $226 million a year earlier.

Order books: Honeywell and Lockheed Martin

Honeywell reported sales of $5.0 billion, up 1% as reported and 7% on an organic basis, and operating income of $740 million, up from $413 million, with a margin of 14.8%. Adjusted earnings per share rose 34% to $2.27, and its backlog was nearly $19 billion, up 7%. The company raised its 2026 guidance for sales to $20.0 billion to $20.1 billion and for adjusted earnings per share to $8.40 to $8.45. Not every segment grew: Industrial Automation sales fell 23% in reported terms, although organic growth was 4%.

Lockheed Martin's backlog reached a record $292.0 billion, up 27% from the second quarter, including $52.5 billion for the PAC-3 MSE missile. Sales rose to $20,711 million from $18,609 million. The company raised its outlook for sales, to about $80,000 million to $82,000 million, but also said that F-35 Lot 20 negotiations and cost overruns beyond the authorized funding would have a negative effect without additional funding. Free cash flow was $3.0 billion against $3.3 billion.

Commodities and subscriptions: Newmont, Netflix and Comcast

Newmont's net income attributable to stockholders was $2.5 billion. Its average realized gold price was $4,317 an ounce, which was $97 below the previous quarter, and its all-in sustaining cost was $1,454 an ounce. Free cash flow was $1.9 billion.

Netflix said its revenue grew 12% to $12.9 billion and operating margin rose to 34.6% from 28.2%. It lowered its 2026 advertising revenue forecast to about $2.7 billion from about $3 billion, because of a slower rollout of its advertising product. For the fourth quarter it forecast an operating margin of 26.0%, which includes an effect of about 120 basis points from headcount reductions.

Comcast's revenue fell 6.1% to $29.3 billion, but the release notes that the separation of Versant was completed on January 2 and the sale of Sky Germany on May 31, and pro forma revenue was up 0.5%. Domestic broadband lost 144,000 customers, against a loss of 91,000 a year earlier, while wireless added 368,000 lines. Adjusted earnings per share were $1.07 against $1.12. The company suspended its share repurchase program through its proposed separation into two independent publicly traded companies.

What the reports show

Three patterns appear. Where companies could point to a specific cost that rose, such as fuel for United, commodities for P&G or battery supply for Tesla, they said so in the release. Where order books were growing, as at Honeywell and Lockheed Martin, outlooks went up. And where a business model is changing, as at Comcast and Netflix, the headline numbers carry adjustments for separations and forecasts. The filings do not show whether the cost pressures will persist: Brent has fallen since October 9 but is still far above its 2026 low of $61.08, set on January 7.

The next reports from large companies will test these patterns, and the filings give the guidance ranges against which later results can be compared.