Companies promised AI gains— here's how the payoff showed up in earnings

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on CNBC or enjoy below:

🗞️ Driving the news: Artificial intelligence is beginning to deliver measurable financial benefits for companies across banking, pharmaceuticals and technology, as third-quarter earnings increasingly demonstrate tangible returns on AI investments
• Santander, Novartis, Standard Chartered, Meta and Alphabet are among the companies reporting improvements in revenue, productivity or profitability linked to AI deployment

🔭 The context: Corporate AI investment reached $581.7 billion in 2025, up 130% year-on-year, according to Stanford's 2026 AI Index
• With major technology companies expected to spend approximately $700 billion combined on AI infrastructure in 2026, investors are increasingly demanding evidence of commercial returns rather than promises of future productivity
• Meta cited substantial incremental advertising revenue from AI investments, and Alphabet's Google Cloud revenue more than doubled in the third quarter

🌍 Why it matters for the planet: AI's growing commercial adoption also raises questions about its environmental footprint, particularly electricity consumption, data-centre expansion and infrastructure requirements
• Productivity gains could support more efficient economic activity, but their climate benefits will depend on energy sources and how AI systems are deployed

⏭️ What’s next: Companies are expected to expand AI integration across operations, research and development, customer services and marketing
• Investors will increasingly scrutinise whether these productivity gains translate into sustainable earnings growth and justify escalating infrastructure spending.

💬 One quote: “This is the first quarter I’ve really seen AI start to improve actually our P&L on a tangible basis,” - Novartis CEO Vas Narasimhan

📈 One stat: €194 million: The business value Santander attributed to AI initiatives in the first nine months of 2026

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