Closing Bell - Closing Bell Overtime: Earnings Bonanza; CEOs of C3.AI, UiPath & Fortune Brands 12/3/25

Episode Date: December 3, 2025

A big day of tech earnings, including results from Salesforce, Snowflake, C3.AI and UiPath. BD8 Capital’s Barbara Doran and Charles Schwab’s Kevin Gordon break down the market action and react to the key earnings. C3.AI CEO Stephen Ehikian joins to break down the company’s quarter and broader trends in the industry. UiPath CEO Daniel Dines talks enterprise spending levels after his company’s earnings. Fortune Brands CEO Nicholas Fink on the health of the consumer and where they are spending in their home. Plus, Jensen Huang heads to Capitol Hill to lobby for export control changes.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Well, that's the end of regulation. Helios Technologies ringing the closing bell at the New York Stock Exchange. Callumost Investments doing the honors at the NASDAQ. Stocks moving higher once again today. It was a weak ADP jobs report. It may be increasing hopes. The Fed will cut rates next week. The Dow higher by more than 400 points.

The S&P 500 NASDAQ both up with small gains, fractional gains. The Russell 2000 was leading the way. That was up more than 1.5% today. United Health, American Express, McDonald's. Those are the leading Dow stocks. Only a handful of Dow names falling today. Among them, some of the tech names, Microsoft, Nvidia, Amazon, energy, the best performing sector today, oil up nearly 1%.

APA and EQT, both at more than 4% as well. And that's the scorecard on Wall Street, but winner stay late. Welcome to closing about overtime. I'm John Ford, alongside Morgan Brennan. And it's going to be another busy hour of earnings. The big name to highlight for you is Salesforce due out any moment. We're also expecting to hear from Snowflake and Five Below. And UiPath also reporting.

We're going to talk to that company's CEO once those results come in. But first, the new CEO of C3AI is going to join us to discuss the results from his first quarter running the company. That stock having a brutal year, the price cut by more than half. Let's begin, though, with today's market gains. Christina Parts and Avelas has a look at today's movers. Christina. Thanks, Morgan. You touch upon it, but bad news is good news on Wall Street today.

A weaker than expected ADP report actually boosted hopes for a Fed rate cut. Small caps led the charge of the rest of 2000 outpaced all major indices by at least a full. percentage point. The money went into rate-sensitive sectors, financials, and energy led with fintech names like Robin Hood, Coinbase, Pfizer, I can never pronounce that name properly, all jumping at least 5% or more also on Bitcoin's rebound. Big Tech, you had five of the Mag 7 actually closing in the red, including Microsoft and Nvidia. While the mega-cap struggled, though, the broader semiconductor sector actually held up, both SMH, and the stocks gained roughly more than about 1%. You can see the stocks up 2%. On pace for eight straight days.

of gains the longest streak since mid-September, adding fuel to the chip rally. Invita's CEO Jensen Wong was on Joe Rogan's podcast saying he expects small nuclear reactors to come online in the next six to seven years to power AI data centers. Uranium stocks did climb a little bit after 2.30 p.m. Eastern when he said those words on the podcast, Oclo-Nanonuclear, all closing higher. So it's really a market of divergences today. Small over large, cyclicals over growth, even within the tech sector, they brought our chip stories holding up better than a handful of mega-cap names. Morgan? All right, Christina Parts Nevelas. Thank you. Well, talking about blue chip names in the Dow. Salesforce earnings are out. Sima Modi has the numbers for us. Hi, Sima.

Morgan, a very strong beat on Salesforce's bottom line, adjusted earnings of $3.25 versus a $2.86 estimate revenue came in line. Also key is the current remaining performing obligations of $29.4 billion. That's is up 11% year over year and higher than Wall Street estimates CEO Mark Beniof in the press release says its backlog is signaling a powerful pipeline of future revenue. He adds that Agent Force and Data 360 are momentum drivers. So speaking of Agent Force, the company's AI agent platform, there's been a lot of discussion around this. Accounts in production, that means clients that are transitioning from pilot phase to deploying AI agents has increased 70% quarter over quarter. Now that is up from 60% in the previous quarter. They also add that 50% of agent force

and data 360 customers are coming back and expanding their partnership. That is up from 40% last quarter. Also worth noting annual recurring revenue for agent force and data 360 reaching $1.4 billion, up $114% year over year. So all of this is fueling confidence clearly from management because the company is raising its guidance for the fourth quarter and the year. The stock is responding up 9% here in overtime. Morgan and John? Yeah, that AI strategy, agent force, that of course you just mentioned. That's really what investors care about. We see it in the stock right now. Seema Modi, thank you. Don't miss Jim Kramer's exclusive interview with Salesforce, CEO Mark Benny Off. That's tomorrow on Mad Money. Well, let's turn to the bond market now

for a look at how the ADP report might have affected perception of the Fed's likelihood to cost rates. Rick Santelli is in Chicago with that. Rick? Yeah, there's no doubt about it, that the rate cut is a positive for equities, but there are a lot of other moving parts going on here, especially higher rates in Europe. If you look at a week to date of tenure, we popped early in the week, we're coming in back filling. Basically, it's a sideways week. We broke through the range on Monday. Now we're coming back and testing that 04 to 06 level in tens. Now let's look overseas. These are three charts. That's the Boond, the German tenure. That's the oath, the French tenure, and that's the U.S. tenure.

And what you should notice about that is the lowest line on that chart is the U.S. The middle line, the green, is France, and the highest line is Boone's German. So over the last month, the U.S. rates definitely are more to the downside. Europe's rates are moving higher. That may be another reason capital is flowing here, because the rates in Europe aren't going up for good reasons. They're going up for debt reasons, for a lot of slowing economies, not to mention that the price of electricity, in the German economy is multiples of what it is in the U.S. And finally, how does that all pan out?

Well, here's something important. If you look at 10-year minus the 10-year boon, that distance now is the closest it's been in nearly two and a half years, and that is something important to pay attention to because the U.S. economy, based on many different multiples, like Atlanta GDP now, certainly looks like the slow patch might have a very short runway, but the slow patch in Europe may have a significantly longer runway. Morgan, back to you.

Yeah, and in fact, you're on a Fed pick here too, and what that could mean, we've seen that play out with the dollar as well. Rick Santelli, awesome stuff. Thank you. This morning's week, ADP report raised the odds of a rate cut next week, but did it also raise the odds of a year-end rally? Well, joining us now is Barbara Duran from BD8 Capital Partners and Kevin Gordon from Schwab Center for Financial Research.

Great to have you both here. Kevin, you're on set. I'm going to kick this conversation off with you. what are the markets telling us here? If we dig below the top line of the S&P, which is continuing to eke out gains here, at least right now, into years end, what is the movement on the sector level signaling? Yeah, so I think the sector performance mix over the past month or month and a half has been really important to look at, you know, much to the divergences that Christina was pointing out earlier on the board, the small versus large or growth versus values, cyclical versus

defensive, what has really looked like, what the market has really looked like in the fabric of leadership over the past month has been really this digestion phase for something like tech and a lot of the winners so far this year outside of those and into some of the laggards. I think about health care and energy, you know, some of the better performing sectors over the past couple of months, those have really come back up. Mostly because I think from a sentiment perspective, I mean, you look at how much they just got thrown into the waist been earlier this year relative to the index or just in absolute terms. Those sectors had really been forgotten. So a lot of it is a catch-up trade for what hasn't worked. But I think also, and importantly, and I think, you know, benefit for the broader market, a lot of the more speculative and junkier parts of the market have actually sold off in a much sharper fashion. And it hasn't really dented, you know, what we think of as the traditional market being the S&P 500. So it's been more digestion as opposed to the start of some longer projected correction in our opinion. Okay. Barb, I want to get your thoughts on, there's Bank of American note. They're probably the most cautious of the major strategists on Wall Street going into 2026. They only see modest gains for

the S&P next year. But here was the line that John. out at me. We also worry about the tension between AI taking jobs versus consumption remaining resilient in 2026. And so given what we just saw with Salesforce earnings, and on another day, we get more tech results here in this hour, how to think about that push pull between the labor market and the economy and AI adoption across industry. Yeah, well, Morgan, I think it is a very interesting question that is not answerable at the moment because we've seen this in any major transition, whether it was the industrial revolution or any of the things, the adoption of the Internet, jobs are eliminated. You're certainly seen already anecdotal stories from a college

graduates trying to find those lower level jobs that a lot of automation and AI sorts of tasks are taking over. But typically what happens, other jobs are created. And certainly, you know, we're seeing this in terms of AI software and development and all the things happening there. But right now, what we're saying, there's also reduced supply, and that's widely considered because of immigration. We have reduced immigration. You've got the aging baby boomers who are retiring. So you've got a market that, yes, the labor market is slow, but it seems to be in balance for now. Even with those ADP numbers, you know, this morning, we're not great.

They haven't necessarily reflected truly what's going on. And I think the jobless claims have actually come in less than expected the last two weeks. And those are current numbers, unlike a lot of the stale data we're getting. And that canary in the coal mine ain't singing yet. Not yet. Oh, that's a good sign. Then, Kevin, with all this going on, how much are you watching consumer sentiment? How much does affordability play in?

And maybe how much reading into results of retailers like five below? Yeah, you know, the affordability aspect, obviously it made it sort of made a big splash in the elections that we saw earlier in November in a pretty big way. And it's actually become one of our bigger themes and it'll be a big theme in the outlook when we publish it next week around how it is probably going to become more of a powerful force in terms of this. We've started to call it a vibe pression as opposed to a vibe session where you really haven't seen any pickup in a lot of these sentiment metrics, despite markets having done well, the economy continuing to grow, the labor market, remaining at a relatively healthy spot in terms of low unemployment, even though we have seen a tick up over the past several months. But I think that it'll become a more dominant force to the extent that concerns over affordability, especially, as you move down the age spectrum, if those concerns start to manifest in a way where it does start to affect the electoral backdrop, you could see an instance where from a fiscal side of things that actually starts to change the game a little bit. I think it's still too soon to say

that that's going to be a definitive shift. We'll probably have to wait until, you know, the midterms for a more definitive result on that. But I do think it's going to become a more powerful force, especially because you have this really large segment of investors, consumers, individuals who have been, you know, locked out of key markets like housing, but have also just not been as invested in equities for a longer period of time to not feel a lot of the upside that maybe older investors have. Okay. And with all that on the table, Barb, as investors at home are thinking about their portfolios, you're saying to avoid small caps. So where specifically would you advise going for diversification? Yeah. Well, you know, John, the reason I said avoid small caps,

even though they had a big run today. A lot of what we saw today in the sector rotation really was, in my view, just a knee-jerk reaction to the prospect of lower rates. And that's typically what you see rate-sensitive names. But I still think you have to look at next year. It depends what you think that growth is going to be. It looks like one and a half to two percent GDP. Earnings reports were great. Forward guidance was good, but it is not robust. It's not three to four percent at the moment. So I think you still have to look for growth. And it always comes back to AI because that is a longer-term sustainable trend. So you have to pick your moments there. These stocks, like, for instance, you look at invidia, has come awful lot.

It is not expensive. You know, and all the corollaries there and the metas and the hyperscalers, but you have to wait because they've had big runs. And you will see you continue to have profit taking. They sell off. We rotate into the laggards, as Kevin was talking about earlier, but then it comes back because it really has to do with the macro environment and what's happening with earnings and overall growth. All right. Barb Duran and Kevin Gordon, thank you so much for kicking off the hour with us with all the major averages higher.

And actually the big outperformer today, we're also 2,000. 2000 was up 1.9%, but the Dow transports, which is economically sensitive, up 2%, perhaps in part because of those upbeat Delta comments. Well, 5 below earnings are out, and Gabrielle Fon Rouge has the numbers for us. Hi. Hey, Morgan. So 5 below reporting adjusted earnings per share of 68 cents. That's almost three times higher than expectations of 24 cents. So really strong quarter. Also on the top line as well, reporting revenue of 1.4 billion. That's well ahead of 980 million that they were expecting. key story tonight, though, is going to be guidance. This is a discretionary retailer. Everybody's wondering what they're going to be doing for holiday.

So Q4, both EPS and sales guidance, are coming in ahead of expectations. EPS are expecting $3.36 per share or up to $3.54 cents per share, while expectations were $3.10 per share. And then when we're looking at revenue, they're expecting $1.58 billion to $1.61 billion, and that's ahead of expectations of $1.55 billion. And then, of course, we're also looking at what Winnie Park CEO said in the release. She had a little bit of tease towards Holiday in her statement. She said, as we head into the holiday season, we are well positioned to delight our customers

with unique gifts and stocking stuffers at incredible value in a fun shopping environment. So certainly a positive tone headed into Holiday. Not a huge move on the stock, but a lot of this was baked in. The stock is up about 55% year to date. So it's going to take a lot to move it up a bit higher. Okay. Gabrielle, thank you. Snowflake earnings are out as well. Well, that stock heading lower, about 5% in overtime.

Sima Modi has the number. Well, as we were discussing, John, the bar was really high for Snowflake. The company did beat on earnings, 35 cents adjusted, so it's a 4 cent beat, revenue topping expectations. But when the company looks forward to the fourth quarter, it's anticipating non-gap operating margins to come in at around 7%. The street was looking for 8.3%. And that perhaps is why shares are moving lower here in overtime.

Now, in conjunction with earnings, the company announcing an expanding. partnership with Anthropics Cloud Models to Snowflakes Cortex AI. The company shares in this press release that this partnership with Anthropic will help organizations handle complex, multi-step analysis across sensitive enterprise data using cloud-powered agents. Shares are down about 5%. We'll get you more as the earnings call starts. All right.

Seema, thank you. Meantime, don't miss Jim Kramer's exclusive interview with Snowflake's CEO. It's coming up 6 p.m. on Mad Money. Well, the bidding war for Warner Brothers Discovery has helped make that stock one of this year's best performers, but it's dragging on Netflix today. We're going to have those details next. And C3AI shares are now fractionally higher following results, but all over the place. They plunge lower initially in a pot back up. The company reporting a loss of 25 cents versus estimates for a loss of 33 cents.

Revenue meeting estimates at $75 million. Second quarter subscription revenue coming in above estimates. The company giving Q3 guidance of $72 to $80 million in revenue versus estimates of $76, which is right in line. The company's new CEO is going to join us after the break to break down the quarter when overtime's back in two. Thank you. Thank you. Thank you. Welcome back. UiPath earnings are out and the stock is up by about 10.5% right now. The company reporting EPS that beat,

by Ascent. And reporting a revenue beat of $411 million, that's versus estimates, a $393 million from the street. License and subscription revenue, both beating as well. And the company giving fourth quarter revenue guidance of $462 to $467 million. That's versus estimates of $463 million. We're going to speak exclusively with the CEO of UiPath, Daniel Dines. That's straight ahead and before the analyst call. And C3AI reporting results moments ago. That stock is, was wriggling around. what it's doing. I'm going to have to look at a chart because you never know. After the, it's moving around a lot after the company reported a beat on adjusted loss per share and subscription revenues, but missed gross margin expectations. You can see it there now up

4%. That happened quick. Joining me now in a first on CNBC interview, C3AI, CEO, Stephen Akenean. Stephen, it's good to see you. So how, what's the status of getting the go-to-market motion fixed that really hit the stock earlier. And how did that play out in the quarter? Yeah. I would say it was a solid quarter with a disciplined execution across sales and go to market. What we really saw was acceleration in our federal business. We also saw key blue chip customers. And we saw the ability to go up market as well with some high volume, high value seven-figure deals. This is despite the headwinds in the federal space with a 43-day shutdown in the government. But overall, I would say, I'm very proud of the execution of the

C-3 AI team. Stephen Hickey, and I apologize. So what are you seeing demand-wise in industries right now, particularly when it comes to some of those crucial areas like defense? I have been in back-to-back meetings for the last 90 days with companies, customers, prospects, partners, and a consistent theme is a desire to go faster adopting enterprise AI. And this is across their critical operations. I've seen this across asset maintenance, supply chain optimization, demand forecasting, and we're really applying this across the federal government, Department of War, and civilian, but also key verticals in energy, health care, manufacturing, and key commercial sectors. But a lot of reasons why I joined C3, coming from the federal

government is a lot of the focus within federal cover right now is to buy commercial off-the-shelf solutions and as well as to focus on adopting AI. C3 does that today. This is the products. This is our core capabilities and we're built for this moment. This non-gap gross margin at 54% is going to raise a few eyebrows. Does that have to do with product mix? Why a bit lower than the street was looking for? We're investing in innovation right now. The market, what I'm seeing from our customers and our partners, there is a dramatic poll, so I'm investing in innovation and our gooder market motion. We are looking at our operating cost structure, but again, what I'm seeing from our customers is a poll to go faster, and that's where we're investing.

So does that mean hiring? We're hiring and we're building. Building, how should investors factor in the time to the payoff in that building? What kind of building are you doing? The key is to convert what we call an initial production deployment. So our with our customers. We are trying to deploy these applications as fast as possible to deliver economic value. You're going to hear that a lot from C3. Our use cases are not simple chatbots. We're literally affecting core operations across some largest companies in the world and the federal government. This is from the Air Force to how they maintain their fleet to shell to how they maintain their assets across valves and compressors. So our goal is to actually get our products

live as fast as possible to demonstrate economic value. Because when we convert, there's examples like GSK, they went from, you know, demand forecasting of vaccines to now we're rolling out across production throughout their R&D manufacturing and operation lines. Any bump from the government reopening or given that you didn't have much trouble with federal during the quarter? Is it just steady as she goes? We should be accelerating and getting the federal space. I'm very excited for the opportunity. Again, there's a huge push to move away from highly bespoke government-built solutions to what they call COTS, commercial off-the-shelf solutions. And we're seeing this across the Department of War. We saw expansions in the Army,

Navy, Marine Corps, and the civilian side, the Department of Health and Human Services. All right. Stephen Hickey and C3 AI, CEO, the stock now up a little better than 3%. Thanks for joining us first on CNBC. Thank you very much. I think this is the topic we're talking more about later this week with Reagan National Defense Forum, where companies like C3AI and many others are going to be in attendance as well. Well, the Dow leading the way higher as new names lead the charge and some big tech stocks cool off. Well, in loved parts of the market, be the right investments for 2026.

Mike Santoli's joining us. He's going to take a look at one unloved strategy. That's next on overtime. Welcome back to overtime. The Dow leading the major averages higher to that. day with a few names in the index hitting record levels. Walmart rising for the sixth straight day to hit all-time highs now up 26 percent this year. Apple hitting an intraday record this morning before closing lower, snapping a seven-session win streak. And 3M sticking a more than four-year

high dating back to May 2021. Well, let's pivot now to a look at a particular out-of-favor segment of the market, dividend stocks. As the Fed-Eyes potential easing, could that change the flow of equity income funds or have the so-called dogs of the Dow lost their bite. Well, senior markets commentator, Mike Santoli is here with more. Hi, Mike. Yes, Morgan, sir, here's a look over the last year of how dividend-related stocks have basically been dead money in a strong market. The S&P 500 up 13% on a 12-month basis. Here you have the high beta, very aggressive, more volatile and expensive parts of the market. That's been outperforming. And here you have the select dividend ETF. Noble is the dividend, aristocrats, so-called. Those are companies that over a very long period of time have

raised their dividends reliably every year. So these are mature companies, obviously, usually more of a value-oriented bent very much out of favor. And now you go to that dogs of the Dow strategy or various modifications of it, which traditionally was pick the 10 highest yielding Dow stocks at the end of a given year and then own those for the next year and the idea that mean reversion and basically that income is going to help you outperform. Well, this ETF does it for each sector, not for the Dow, an equal weights. And so you see also it's been left behind. This is on a total return basis. So this includes the dividends that are in this Alp sector dividend ETF. And again, it's because it doesn't own enough tech, it doesn't own enough of the big

expensive AI-related companies. And in general, investors have not really put much of a premium on steady income coming out of equities. Again, as you know, as you mentioned, maybe if money market rates go down, that changes a little bit, or if the market itself hits some turbulence, that cushion of a dividend might come back into favor. Yeah. You know, it's interesting because just this afternoon Bespoke put out a chart of the day as well, and it was their Dogs of the Dow update. And one of the things they said is that after massively underperforming in 2024,

their Dogs of the Dow, as they define it, has switched over to outperformance in 2025. And I think it raises the question. Are there different definitions of Dogs of the Dow? How to think about it. Yeah, I think they're kind of looking at the sort of long-term kind of defined method of using those 10 highest yielding stocks in the dogs of the Dow. Now, what that really was back in the day, every stock pretty much paid a dividend.

So if you were picking the highest yielding ones, usually those are the ones that were down the most and still seemed financially viable. So it was kind of a shortcut to just buy low and bet that there's going to be reversion to the mean and the laggard to become the leaders. So it's been hit or miss on a given year, but I would note that things like IBM

would have been in the Dogs of Dowell for many years. running, I would imagine, with the high yield, and it's been a great performer. And now its own yield is down at like 2.2%. So usually that's why you have to rebalance it each year. All right. Mike Santoli, thank you. Time down for a CNBC News update with Christina Parts and Evelas. Christina. John, Ukrainian President Vladimir Zelenskyy says Keev is preparing a delegation for talks

with Trump administration representatives soon. It comes after special envoy Steve Wickoff and President Trump's son-in-law, Jared Kushner, met with Russia's president just yesterday in Moscow. Zelensky said in a video address today that Ukraine expects to hear next steps after the American team returns from Russia and holds relevant consultations. A doctor who pleaded guilty to supplying friend star Matthew Perry, ketamine in the weeks before his overdose death was sentenced today to two and a half years in present. Salvador Placencia is the first of five people convicted in the case to learn his fate. He could have faced up to 40 years in prison if he was convicted at trial. An appeals court cited with Adidas today in a lawsuit by U.S. shareholders over the company's partnership with Yee, the rapper, formerly known as Kanye West.

The shareholders claimed Adidas hid antisemitic and improper behavior by Yee before terminating its partnership with the rapper. The three judge panel said reasonable investors would know celebrity partnerships come with inherent risks. Guys, back to you. Especially with Ye. Oh, yeah. Thank you, Christina. Coming up on overtime, we'll get you caught up on all the big post-earnings moves. And we're going to speak to the CEO of U.I.P.

following that company's numbers stocks up more than 13% right now right here in overtime we will be right back well welcome back to overtime stocks higher today the doubt gaining more than 400 points russell 2 000 up almost 2% just a small gain for the nasdaq bitcoin continuing its bounce today now over 93 000 that helped robin hood and coin base the top two performers in the financial sector today, both up more than 5%. Checking on metals, gold and silver got small gains, but copper up nearly 3%. Now some earnings after the bell, starting with Sales Force. The company beating on earnings, but a slight miss on revenue, raising its revenue forecast, as it says Agent Force sales now exceed $500 million. You can see it off the highs are still up 5.5%. Snowflake falling,

though, in overtime, down eight and a half. Small beats on earnings and revenue. Fourth quarter product revenue guidance slightly ahead of estimates, but the operating margin for forecast to come in below. Also announcing a $200 million partnership with Anthropic. Well, let's get another check on UiPath. That stock is surging right here in overtime. It's about 7.5% right now. So pairing some of those games we saw a little bit earlier. That's after beating on the top and bottom lines. Company giving fourth quarter revenue guidance of $462 to $467 million. That was better than street expectations of $463 million. Joining us now exclusively is UiPath CEO Daniel Dines with his first comments before the conference call. Daniel, it's great to have you back

on the show welcome and let's start right there because a r growth of 11 percent year over year what's driving it well first of all thank you for having me uh we are very pleased with the execution in the quarter the growth was driven primarily by the momentum that we are seeing in agent it creates the pool through across all our platform and of course paired with good execution on our part. It landed to what I call a solid quarter. So can we say that your agentic strategy is taking root and working here? I would say so. Our message in Agentic was always very clear. We believe that the terminating automation is part of the foundation to leverage Agentic into enterprises.

prices. What do you offer is determining automation plus agentic plus orchestration to achieve end-to-end process automation. We believe this is really the core tenet of driving solid outcomes. We just mentioned Snowflake, which also reported earnings this hour. That's one of your partners. You have a number of partnerships. You've announced more in the quarter as well. How deep do these partnerships run? And which ones do you think? will be the most valuable the most meaningful over the longer term yeah i think all of them will be really meaningful we we partner with snowflake for the data layer and their ontology layer while we'll leverage of course open ai in uh in different aspects of our platform i'm also bullish

on our partnership with nvia to provide more governance secure environment especially on industries like financial services and health care. So how does all this speak to demand trends if you look across the business? And I guess if you put that within context of the macro landscape right now. Yeah, look, the macro continues to be dynamic. This is basically our new normal. We are seeing, as I said before, solid traction in financial services, health care. We are seeing signs of good demand in the public sector as well.

So I think overall the environment is not particularly changed since last quarter. We continue the momentum inogenic. And we are seeing like buying patterns with customers converting from POCs, into pilots and putting some of the use cases into production. How does this set UI path up for 2026? And perhaps just as importantly, how do you see this AI ecosystem evolving further next year? Well, I believe that AI is a technology

is at the point where it's really ripped to produce solid gains in the industry. I'm one of the advocate that says that we don't necessarily need a huge giant leap improvement into AI. We just need to take what we existently have and create the blueprints of large-scale installations. And this is where we are working right now. Entire year was dedicated to understanding better customer demands, creating solutions for the most. complex, most demanding use cases.

And we are looking forward, really quite optimistic to next year into driving a lot of more AI consumption across the entirety of our platform. Interesting. Okay, incremental improvements. Daniel Dines of UiPath. Thanks for joining us. Thanks. Well, I'm VINDIA CEO Jensen Wong, personally lobbying D.C. lawmakers today over AI regulations and chip export restrictions.

details and the potential impact for Wall Street next plus fortune brands which makes everything from faucets to locks it has not been so fortunate at least the stock hasn't been this year it's lost a third of its value over the past year we're going to take the pulse of the consumer when we speak with the company's CEO that is coming up right here in just a little bit on overtime welcome back to overtime welcome back to Over time, microchip technology was the top performer in the S&P 500 today, the semiconductor maker, raising both its third quarter profit and revenue forecast. That was thanks to a pickup in business since its earnings call in early November. Stock finished up 12%. That news, pushing those shares

into the green for the year as well. Well, InVIDIA CEO, Jensen Huang, meeting with congressional leaders today as he tries to persuade lawmakers about AI regulations and chip export restrictions. Emily Wilkins has the details, Emily. Hey, John. Well, yeah, look, this meeting comes as NVIDIA just notched really a major win on Capitol Hill. There was a measure that would have limited AI exports, and that was now removed from a major must-pass bill after NVIDIA, and then the White House opposed it. And I asked Jensen Wong about that balance between China Hawks who want to see stricter exports and his position that more chips being sold overseas is going to help solidify U.S. dominance. We have to ensure national security. China makes plenty of chips and their military has plenty of ample chips and bought Chinese

chips to build whatever they need. We need to ensure America can continue to win the technology lead leadership position around the world. Senator Tim Scott, the chair of the Senate Banking Committee, said in a statement after the meeting that maintaining that edge, the U.S. edge, also means protecting sensitive U.S. technology through strong export controls and ensuring innovators have access to the capital they need to build here at home, including modernizing how companies raise funds in both private and public market. Wong also told me that he did meet with President Donald Trump today.

He said they discussed export controls, said he's not expecting any sort of announcement anytime soon. And Trump, too, when asked about the meeting, complimented Juan saying he was a very smart guy. Guys? You know, Emily, this is super fascinating to me because a lot of the data that's been collected out there, and I suspect we're going to get more in coming days to suggest that there's a lot of bipartisan support for export controls around these chips and a lot of concern, both among lawmakers and among the American public, about China's military might. So given the fact that you're at the CFO Council Summit today, and you have been talking to

some of those lawmakers, what has been the feedback on this particular topic from some of those policymakers? So I had a conversation today with Senator Tom Tillis. He's a Republican. He's actually on the Senate Banking Committee. Wasn't able to get to that meeting with Jensen Huang, however. But he said, look, there's an understanding that the U.S. does need to be dominant when it comes to AI. He did have some concerns about those export controls.

And I've talked with folks on the Hill who have kind of, it seems like there might be a bit of a change. There was a lot, initially a lot of concern about what would happen if China got a hold of some of these chips. But Tillis said, you know, at some point they're going to get there. If they want to sort of take the U.S. technology, deconstruct those chips, they can. He's like, what's most important is that making sure that the folks are using U.S. chips and that they're building technology around U.S. chips, that that's really the way to maintain dominance. So are we going to actually get a spending bill in other parts of a defense bill, I should say, and other parts of the spending bill here before this continuing resolution wears out?

You know, Morgan, we are told that for particularly the defense part, and remember, this is just the authorization of funding, not the actual spending, but it's so critical. And we are expecting, yes, we are expecting to get the text of that potentially as soon as this week, votes next week. And remember, because it's one of those must-pass bills, you have a lot of interesting bits and pieces riding on it. There might not be that provision on chips, but there could be some very other interesting provisions for investors, particularly those looking to invest in China, and there could be some additional limits coming on them. We're paying very close attention for when that text is released. All right. Emily, thank you. Up next, the CEO of Fortune Brands, which makes faucets, entry doors, and locks, whether he's seeing any signs of slowing consumer spending.

And scan the QR code right there on your screen right now for a special limited time opportunity to join CNBC Pro for exclusive analysis, real-time data, and deep dive reporting. Welcome back to overtime. Wayfair shares under a lot of pressure today. Jeffrey's downgrading the online furniture retailer to hold from buy slashing its price target to $94 per share. That's down $1.23, citing valuation, a survey showing a slowdown in web traffic. You can see those shares down 6% today. Wayfair has been a big winner. Shares more than doubling this year. So maybe some profit taking here too. And now sticking with consumer spending, let's talk housing, a potential rate

cut by the Fed next week, could spur lower mortgage rates and give home buying a boost. and would that also help the remodeling sector? Joining us now for a CNBC exclusive. Here on set is Nick Fink, Fortune Brands and Innovation CEO. Nick, great to have you here. Thanks for having me. So the macro has been tough on your stock this year, especially higher rates. Why can 26 be better?

Well, fundamentally, we operate in a really good part of the market. We have underlying demand. There are not enough homes. The homes that exist are really old. $36 trillion of tapable home equity is out there. And so what you really need is a consumer that's a little bit less cautious and starts to lean in. And I think they're tired. It's been a tough few years from an affordability and an inflation perspective.

Starting to see that rebalance now. Our consumer point of sale numbers have been flattish, which is an improvement over what we've seen for a little while. And so as we get into a more normalized period, I think there's opportunity for people to lean into what the fundamental is requiring, which is either remodeling or new home construction. How well is the high-end consumer holding up? You've got some high-end brands that have been, I think, particularly strong during this period, smart home, et cetera. And is gifting even a thing in your categories? Yeah, actually a little bit. We just launched our employee annual sale, and so you'll see a lot of gifting inside of the company,

especially brands like Monster Lock and some of the Yale, the connected products, and our flow by my own product. But really interesting question. You know, we operate a portfolio, and we're very fortunate, and I think you're seeing across that portfolio a bit of a barbell effect, right, where if you can give consumers an opportunity at value-sharp price points where, when I say value, not inexpensive, but I'm getting value for my money, there's opportunity there. We saw a really good prime day in July, right? You've seen a great Black Friday e-commerce numbers. And then we have a luxury portfolio that we built over the last five years where we're still seeing double-digit growth. And that's becoming a pretty significant

part of our business. And so you're seeing that consumer continue to lean in strongly to remodeling and really, you know, fairly priced and sensitively putting really nice stuff in their homes. So much of your manufacturing footprint and your supply chain is U.S.-based. What has that meant for the company this year amid an evolving trade policy dynamic? Yeah, well, certainly tariffs have been a lot of work to undertake and to re-platform a lot of our global supply chain. And so we, our global supply chain manager, I'd say amongst the industry, we probably have the highest exposure to U.S. manufacturing. We still operate a lot of U.S. manufacturing. And so it's required a lot of replatforming of that supply chain, some of the

parts that used to come in to get assembled here. We've had to redirect from other places. And it's a lot of work. Net net. We've covered it off. We're very fortunate an excellent supply chain team. We've covered off most of that impact through that replatforming and cost work. and the little bit that was left, we had to adjust through pricing, which has been fairly modest. You know, I think part of the impact, though, is you take a lot of resources that we would have spent this year on things like continuous improvement. You spent them on this replatforming, turning to 26. We're really excited to get that team back working on taking that new platform and now just finding ways to drive more value so we can invest for growth. You talked about the importance of remodeling and also new home

construction. I guess what is your outlook looking across housing overall for 2026 and how much of that does actually hinge on rates continuing to come down? Yeah, you know, we're going to bet on it being pretty modest for 2026 and we don't want to bet on a big recovery as we build our plans. And that's just part of, you know, running a P&L and doing it really well. And so, you know, we're going to bet on it being fairly the same in terms of, you know, a flattish from the consumer perspective. You can see starts numbers are down. We're more tied to the completion's part of the cycle, which is much more even. So, you know, we'll expect to see that.

And probably around, you know, the midpoint of the year, as rates come down a little bit more, you expect to see some acceleration. That said, you know, I think rates coming down a little bit certainly helps. But you're starting to get into the range of long-term rates at this point. And so then it becomes really about addressing affordability. And that's where our digital portfolio comes in, where we can really take a lot of cost out of owning a home. through things like our flow by my own product, which can take water damage from, you know, we estimate it to be in excess of $20 billion a year preventable and literally take it close to zero.

And that will make a bigger dent in home affordability than pretty much anything else that we can do inside the portfolio. And so that's where we'll focus. All right. Nick Fink from Fortune Brands, Innovations. Thank you. Yeah, thanks for having me. Well, consumer stocks taking center stage again on tomorrow's earnings calendar. all the names that need to be on your radar straight ahead. Don't forget, you can catch us on the go by following the closing bell overtime podcast on your favorite podcast app. We will be right back.

Welcome back. Let's get another check on the overtime earnings. report in software we heard from sales force that stock is rising still at five and a half percent on a big earnings beat despite a revenue miss snowflake though is falling down eight and a half percent its result in guidance beating estimates on most counts but just narrowly and a couple retail names also out five below earnings much better than expected it's up three percent same store sales grew 14 percent compared to the estimate of seven pvh slightly lower well now a little bit more almost 3%, despite better than expected earnings and a small beat on revenue, narrowing its full year earnings outlook, saying it expects a hit from tariffs of more than a dollar a share.

Let's get you set with tomorrow's trade today. Weekly jobless claims, it's the only data on the economic front, but it will be another big day for earnings. Dollar General Kroger, Hormel, Brown Foreman, TD Bank are all set to report before the bell. And then right here on overtime, we will break down results from Ulta Beauty, HPE, docus sign, rubric. and Sentinel 1. We also get Challenger job cuts tomorrow, and I just think in the wake of a lack of non-farm

payrolls, all of these, and we saw it say with ADP, all of these data points are taking on more importance than perhaps the otherwise would. Yeah, a lot of reading into this more you know, softer, anecdotal, not quite anecdotal, but at least micro numbers that we're trying

to extrapolate out to the big picture because the big picture has been hazy. Big picture's been hazy. We do get September PCE on Friday. That one will be closely watched. We've got a Fed blackout right now before the decision next week. So all of this, though, is going to matter and everything's getting parsed. Yeah, that Salesforce bumped. That's pretty nice, though, for those who are eager for the AI trade to continue. Yeah, absolutely. Some acceleration there. That does it for us here at overtime. Fast money starts now.