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Aurora Investment Counsel purchased a new position in shares of Globe Life Inc. (NYSE:GL – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 12,763 shares of the company’s stock, valued at approximately $2,280,000. Globe Life accounts for 1.2% of Aurora Investment Counsel’s investment portfolio, making the stock its 29th biggest position.

A number of other hedge funds also recently bought and sold shares of the stock. Compound Planning Inc. grew its holdings in Globe Life by 4.3% during the 4th quarter. Compound Planning Inc. now owns 1,968 shares of the company’s stock worth $275,000 after acquiring an additional 82 shares in the last quarter. Root Financial Partners LLC raised its holdings in shares of Globe Life by 23.3% in the 1st quarter. Root Financial Partners LLC now owns 439 shares of the company’s stock valued at $61,000 after purchasing an additional 83 shares in the last quarter. Parallel Advisors LLC lifted its position in shares of Globe Life by 5.6% during the 4th quarter. Parallel Advisors LLC now owns 1,651 shares of the company’s stock worth $231,000 after purchasing an additional 87 shares during the last quarter. First United Bank & Trust lifted its position in shares of Globe Life by 2.1% during the 1st quarter. First United Bank & Trust now owns 4,355 shares of the company’s stock worth $606,000 after purchasing an additional 90 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Globe Life by 4.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,366 shares of the company’s stock worth $329,000 after purchasing an additional 91 shares during the last quarter. Institutional investors and hedge funds own 81.61% of the company’s stock.

Globe Life Stock Performance Shares of GL opened at $171.74 on Thursday. The company’s 50 day simple moving average is $178.16 and its 200-day simple moving average is $158.21. The firm has a market cap of $13.20 billion, a PE ratio of 11.40 and a beta of 0.48. Globe Life Inc. has a 12-month low of $127.85 and a 12-month high of $191.55. The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 0.43.

Globe Life (NYSE:GL – Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The company reported $3.61 EPS for the quarter, missing the consensus estimate of $3.67 by ($0.06). Globe Life had a net margin of 19.58% and a return on equity of 20.52%. The business had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.59 billion. During the same quarter last year, the company earned $3.05 EPS. The firm’s revenue for the quarter was up 8.0% compared to the same quarter last year. Globe Life has set its FY 2026 guidance at 15.550-15.950 EPS. As a group, equities analysts predict that Globe Life Inc. will post 15.71 EPS for the current year. Globe Life Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Monday, October 5th will be issued a dividend of $0.33 per share. The ex-dividend date of this dividend is Monday, October 5th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.8%. Globe Life’s dividend payout ratio (DPR) is currently 8.76%.

Globe Life declared that its Board of Directors has initiated a stock repurchase plan on Monday, August 10th that permits the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 17.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Analyst Ratings Changes Several equities analysts recently commented on the company. Piper Sandler increased their target price on Globe Life from $175.00 to $200.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Wells Fargo & Company lifted their price target on Globe Life from $172.00 to $193.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Keefe, Bruyette & Woods lowered their price objective on Globe Life from $192.00 to $190.00 and set an “outperform” rating for the company in a research report on Friday, July 24th. Truist Financial upped their price objective on Globe Life from $180.00 to $185.00 and gave the stock a “buy” rating in a research report on Friday, April 24th. Finally, Jefferies Financial Group increased their price objective on Globe Life from $147.00 to $166.00 and gave the company a “hold” rating in a report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $191.67.

Check Out Our Latest Stock Analysis on GL

Insider Transactions at Globe Life In other news, CEO James Matthew Darden sold 50,000 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $182.43, for a total value of $9,121,500.00. Following the transaction, the chief executive officer owned 58,451 shares of the company’s stock, valued at approximately $10,663,215.93. The trade was a 46.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Frank M. Svoboda sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $156.68, for a total value of $3,133,600.00. Following the completion of the transaction, the chief executive officer directly owned 54,020 shares in the company, valued at approximately $8,463,853.60. The trade was a 27.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 179,844 shares of company stock worth $31,616,279 over the last three months. 2.11% of the stock is currently owned by company insiders.

Globe Life Company Profile (Free Report)

Globe Life, traded on the NYSE under the symbol GL, is a U.S.-based insurance holding company that underwrites and distributes a range of life and supplemental health insurance products. Through its subsidiary brands—Globe Life, American Income Life, Liberty National Life, United American Insurance Company and Family Heritage Life—it offers term life, whole life, fixed annuities and supplemental health coverage designed to meet the needs of individuals and families across various socioeconomic segments.

The company’s product suite includes low-cost, easy-to-understand life insurance policies, accidental death and dismemberment coverage, hospital indemnity plans and specified disease insurance.

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Algebris UK Ltd. grew its holdings in American International Group, Inc. (NYSE:AIG – Free Report) by 98.4% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,235,231 shares of the insurance provider’s stock after purchasing an additional 612,790 shares during the quarter. American International Group comprises about 6.0% of Algebris UK Ltd.’s portfolio, making the stock its 2nd biggest position. Algebris UK Ltd. owned approximately 0.23% of American International Group worth $91,772,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of AIG. Brighton Jones LLC purchased a new position in American International Group during the fourth quarter worth about $1,091,000. Sivia Capital Partners LLC increased its position in shares of American International Group by 30.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,050 shares of the insurance provider’s stock valued at $432,000 after purchasing an additional 1,185 shares during the last quarter. Flow Traders U.S. LLC bought a new stake in shares of American International Group during the 2nd quarter worth $217,000. Ieq Capital LLC boosted its holdings in shares of American International Group by 11.5% in the 2nd quarter. Ieq Capital LLC now owns 244,871 shares of the insurance provider’s stock worth $20,958,000 after buying an additional 25,311 shares during the last quarter. Finally, HUB Investment Partners LLC purchased a new position in shares of American International Group in the 2nd quarter worth about $269,000. 90.60% of the stock is owned by institutional investors.

Analyst Ratings Changes A number of research firms recently issued reports on AIG. Barclays raised their price objective on shares of American International Group from $80.00 to $81.00 and gave the stock an “equal weight” rating in a report on Friday, August 7th. Morgan Stanley dropped their price target on American International Group from $82.00 to $81.00 and set an “equal weight” rating on the stock in a research report on Wednesday, August 12th. JPMorgan Chase & Co. boosted their price objective on American International Group from $86.00 to $90.00 and gave the company a “neutral” rating in a research note on Monday, July 20th. BMO Capital Markets lifted their price objective on shares of American International Group from $83.00 to $89.00 in a research note on Thursday, May 7th. Finally, Weiss Ratings upgraded American International Group from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd. Seven equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, American International Group has an average rating of “Hold” and an average target price of $88.28.

View Our Latest Stock Analysis on AIG Insiders Place Their Bets In other American International Group news, insider Peter Zaffino sold 36,829 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $76.14, for a total value of $2,804,160.06. Following the sale, the insider owned 556,004 shares in the company, valued at approximately $42,334,144.56. This represents a 6.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.60% of the company’s stock.

American International Group Trading Down 0.4% Shares of AIG opened at $75.81 on Thursday. American International Group, Inc. has a fifty-two week low of $71.25 and a fifty-two week high of $87.29. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.61 and a current ratio of 0.61. The firm has a 50 day moving average price of $77.67 and a 200-day moving average price of $76.96. The firm has a market cap of $39.64 billion, a price-to-earnings ratio of 13.86, a PEG ratio of 0.69 and a beta of 0.53.

American International Group (NYSE:AIG – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The insurance provider reported $2.00 EPS for the quarter, beating analysts’ consensus estimates of $1.92 by $0.08. American International Group had a return on equity of 11.05% and a net margin of 11.13%.The business had revenue of $7.08 billion during the quarter, compared to analyst estimates of $7.25 billion. During the same quarter in the prior year, the company posted $1.81 EPS. As a group, equities research analysts forecast that American International Group, Inc. will post 8.01 earnings per share for the current year.

American International Group Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $2.00 annualized dividend and a yield of 2.6%. American International Group’s payout ratio is presently 36.56%.

(Free Report)

American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.

The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.

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For Immediate ReleaseChicago, IL – August 20, 2026 – Today, Zacks Equity U.S. Bancorp (USB - Free Report) , State Street Corp. (STT - Free Report) and Northern Trust Corp. (NTRS - Free Report)

Industry: Major Regional Banks

Link: https://www.zacks.com/commentary/2976809/3-major-regional-banks-that-could-win-big-from-industry-tailwinds

The Zacks Major Regional Banks’ asset quality is expected to remain subdued in the near term due to a challenging operating backdrop. While the Federal Reserve is likely to keep rates unchanged in the near term, industry players should continue benefiting from relatively lower rates. Combined with decent economic growth and improving loan demand, this is expected to support expansion in net interest income and margins.

Business restructuring and expansion efforts and ongoing digitization should provide additional support. Major regional banks like U.S. Bancorp, State Street Corp.  and Northern Trust Corp.  are well-positioned to gain.

About the IndustryThe Zacks Major Regional Banks industry includes the nation’s largest banks in terms of assets, with most operating globally. The financial performance of these banks largely depends on the nation’s economic health. As banks are involved in numerous complex financial activities, they are required to comply with stringent regulations set by the Federal Reserve and other regulatory agencies. 

Apart from traditional banking services, which are the source of net interest income (NII), major regional banks provide a wide array of other financial services and products to retail, corporate and institutional clients, both domestic and global. These include credit and debit cards, mortgage banking, wealth management and investment banking, among others. A significant revenue source for these banks is fees and commissions earned from these services.

4 Key Themes to Influence the Major Regional Banks IndustryNo Change in Interest Rates:The Fed has paused interest rate cuts and turned hawkish because of rising inflation numbers amid the ongoing geopolitical conflict. Market participants expect at least one rate hike before 2026 ends, with no chance of further cuts till mid-2027. As such, major regional banks are likely to keep benefiting from relatively lower rates (compared with historically higher rates in 2022 and 2023) as deposit and funding costs fall/stabilize and the lending backdrop gradually improves. As such, industry players’ NII and margins are expected to keep expanding.

Rise in Loan Demand: The central bank’s aggressive monetary tightening in 2021 and 2022 weighed on loan demand amid concerns over a potential economic downturn or recession. However, the trend has reversed since then. According to the Fed’s Summary of Economic Projections released in June 2026, U.S. economic growth is expected to remain decent. This, coupled with lower borrowing costs and greater clarity on several macroeconomic factors, is likely to support loan demand. Major regional banks are expected to see a solid increase in demand for both wholesale and consumer loans.

Restructuring Initiatives: Major regional banks are taking steps to diversify their revenue streams and reduce their reliance on spread income. Business restructuring remains a key priority, enabling banks to support technological advancement, expand their domestic and international operations, and enhance profitability. 

Industry participants are investing heavily in artificial intelligence and other digital platforms, while also pursuing partnerships with or acquisitions of technology and service providers. Several major regional banks are aggressively expanding their footprints across the United States and international markets. At the same time, many are reassessing their business models to streamline operations, improve efficiency and exit less profitable businesses.

Asset Quality: Mounting worries about the economy and uncertainty around trade policies pursued by the Trump administration have added to inflationary pressure. Renewed Middle East tensions and oil-shock risks are further lifting costs, squeezing household and business budgets and, in turn, weakening borrowers’ repayment capacity. In response, major regional banks are less likely to lower loan-loss reserves to cushion against potential defaults and payment delays. While disciplined underwriting and generally resilient borrowers have helped industry players keep asset quality under control, several key credit indicators have drifted above pre-pandemic levels.

Zacks Industry Rank Indicates OptimismThe Zacks Major Regional Banks industry is a nine-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #55, which places it in the top 22% of more than 240 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outpace the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of an encouraging earnings outlook for the constituent companies in aggregate. The aggregate estimate revision trend reflects an improving situation. Over the past year, the industry’s earnings estimates for 2026 have been revised 9% upward, and those for 2027 are up 7.9%.

Before we present a handful of major regional bank stocks to bet on, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry's Stock Market Performance Is SolidThe Zacks Major Regional Banks industry outperformed the S&P 500 composite and the sector over the past two years. 

Stocks in this industry have collectively jumped 64.6% over the past two years. In the same time frame, the Zacks S&P 500 composite has surged 42.8%, and the Zacks Finance sector rallied 35.3%.

Industry's Valuation is AttractiveOne might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), which is commonly used for valuing banks because of large variations in their earnings from one quarter to the next.

The industry currently has a trailing 12-month P/TBV of 3.08X. This compares with the highest level of 3.21X, the lowest of 1.85X and the median of 2.41X over the past five years. The industry is trading at a huge discount compared with the market at large, as the trailing 12-month P/TBV for the S&P 500 composite is 10.18X.

As finance stocks typically have a lower P/TBV ratio, comparing major regional banks with the S&P 500 may not make sense to many investors. However, comparing the group’s P/TBV ratio with that of the broader sector ensures that the group is trading at a solid discount. The Zacks Finance sector’s trailing 12-month P/TBV came in at 6.05X. This is above the Zacks Major Regional Banks industry’s ratio. 

3 Major Regional Banks to ConsiderU.S. Bancorp: Headquartered in Minneapolis, MN, U.S. Bancorp provides banking and investment services, mainly operating in the Midwest and West regions of the United States. The company has expanded through several strategic acquisitions over the years, which have strengthened its market position, digital capabilities and diversified revenue streams. 

In June 2026, the company completed the acquisition of BTIG, expanding its capital markets platform with institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory capabilities. This, along with several other expansion efforts, will continue to strengthen USB’s fee-based businesses.

The company’s NII has been rising over the past few years. Going forward, less deposit migration, relatively lower rates and stabilizing funding costs will continue to support NII and NIM expansion. U.S. Bancorp has experienced steady growth in total loans and deposits during the past few years as it continues to expand and deepen relationships with current customers as well as acquire new customers and market share. 

The company’s capital distributions seem impressive. Following the successful completion of the 2026 stress test, management plans to increase the quarterly dividend by 4% to 54 cents per share in the third quarter of 2026, subject to board approval. The company also continues to repurchase shares under its $5 billion buyback program. Given its consistent earnings and decent liquidity position, the company’s capital deployment activities seem to be sustainable.

USB, which carries a Zacks Rank #2 (Buy), has a market cap of $100.9 billion. The Zacks Consensus Estimate for earnings indicates growth of 13% and 10.4% for 2026 and 2027, respectively. The stock has rallied 21.6% over the past three months.

State Street:Headquartered in Boston, MA, State Street provides a range of products and services for institutional investors worldwide through its subsidiaries. As of June 30, 2026, the company reported record assets under custody and administration (AUC/A) of $57.9 trillion and assets under management (AUM) of $6.28 trillion.

State Street's fee-based model continues to benefit from its scale in custody, asset management and markets, supported by strong flows, product expansion and broader distribution. While the company’s total fee revenues declined in 2022 and 2023, the metric saw a four-year (2021-2025) CAGR of 2.3%, mainly driven by higher client activity and significant market volatility. AUC/A and AUM recorded a CAGR of 5.3% and 8.2%, respectively, in the same time frame.  

At the end of the first quarter, STT reported $2.93 trillion of AUC/A to be installed and $335 million of servicing fee revenues to be installed. This provides better forward visibility beyond near-term market swings, while continued Alpha mandate wins reinforce demand for integrated front-to-back solutions. State Street remains well-placed for fundamental business activities, given its global exposure and a broad array of innovative products and services. 

This Zacks Rank #2 company has been using partnerships, minority stakes and strategic bolt-on acquisitions to expand growth platforms across investment, distribution and technology. Despite lower rates, State Street’s NII and net interest margin are expected to witness decent improvements in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

STT has a market cap of $48.7 billion. The Zacks Consensus Estimate for earnings indicates growth of 30.5% for 2026 and 11.2% for 2027. Over the past three months, the stock has gained 27.2%.

Northern Trust: With total assets worth $179.3 billion as of June 30, 2026, Northern Trust is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals. 

Organic growth is the company’s key strength. Its revenues witnessed a CAGR of 5.7% over the last five years (2020-2025), driven by rising non-interest income and NII. As the client base expands, the company expects to see a steady rise in loan activity, particularly as its wealth management services attract more clients. This ongoing focus on wealth management is expected to drive growth in the lending portfolio. 

Following the launch of Family Office Solutions for ultra-high-net-worth clients, NTRS’ investment management division, Northern Trust Asset Management, partnered with Envestnet in January to expand access to its tax-managed direct indexing solutions, enhancing distribution reach for this client segment. These initiatives, along with continued asset servicing wins and low double-digit wealth management trust fee growth, are expected to support fee income and strengthen organic growth momentum.

NTRS is undertaking expense management efforts to tackle expense growth and support operating leverage. It is focused on disciplined headcount management, vendor consolidation, rationalization of its real estate footprint and process automation. Through such efforts, it will likely improve productivity and meet the financial targets.

NTRS has a market cap of $34.9 billion. The Zacks Consensus Estimate for earnings indicates 28.6% and 9.1% growth in 2026 and 2027, respectively. The company, which carries a Zacks Rank of 2, witnessed a 15.6% rise in its stock price over the past three months.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release

, /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the second quarter ended June 30, 2026.

In this results announcement, "we", "us", and "our" refer to the Company and where the context otherwise requires, the Group.

"Our robust performance in the first half of 2026 reflects players' growing enthusiasm for both our newly launched and established games, underscoring our ability to create distinctive and refreshing experiences with lasting appeal," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "As we continue to strengthen both our live game operations and new title pipeline, we are sharpening our focus on original gameplay, cutting-edge technology and deeper global reach to support our enduring growth.

"Looking ahead, we will remain committed to creating original content that shapes industry trends, building evergreen franchises, and cultivating vibrant communities that sustain player engagement. Backed by disciplined execution and an expanding global presence, we aim to keep pushing creative boundaries, delivering exceptional gaming experiences and creating long-term value for our players, partners and shareholders," Mr. Ding concluded.

FINANCIAL HIGHLIGHTS

Second Quarter 2026 Financial Highlights

Net revenues were RMB30.1 billion (US$4.4 billion), an increase of 7.9% compared with the same quarter of 2025. Games and related value-added services net revenues were RMB25.0 billion (US$3.7 billion), an increase of 9.7% compared with the same quarter of 2025. Youdao net revenues were RMB1.5 billion (US$216.2 million), an increase of 3.5% compared with the same quarter of 2025. NetEase Cloud Music net revenues were RMB2.0 billion (US$291.4 million), which was relatively stable compared with the same quarter of 2025. Innovative businesses and others net revenues were RMB1.6 billion (US$241.6 million), a decrease of 3.5% compared with the same quarter of 2025. Gross profit was RMB21.2 billion (US$3.1 billion), an increase of 17.5% compared with the same quarter of 2025. Total operating expenses were RMB9.1 billion (US$1.3 billion), an increase of 1.5% compared with the same quarter of 2025. Net income attributable to the Company's shareholders was RMB7.0 billion (US$1.0 billion). Non-GAAP net income attributable to the Company's shareholders was RMB7.7 billion (US$1.1 billion).[1] Basic net income per share was US$0.32 (US$1.61 per ADS). Non-GAAP basic net income per share was US$0.36 (US$1.78 per ADS).[1] [1] As used in this announcement, non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results within this announcement.

Six Months Ended June 30, 2026 Financial Highlights

Net revenues were RMB60.7 billion (US$8.9 billion), an increase of 7.0% compared with the same period of 2025. Games and related value-added services net revenues were RMB50.7 billion (US$7.5 billion), an increase of 8.3% compared with the same period of 2025. Youdao net revenues were RMB2.8 billion (US$414.9 million), an increase of 3.6% compared with the same period of 2025. NetEase Cloud Music net revenues were RMB4.0 billion (US$583.4 million), an increase of 3.4% compared with the same period of 2025. Innovative businesses and others net revenues were RMB3.2 billion (US$469.9 million), a decrease of 4.0% compared with the same period of 2025. Gross profit was RMB42.4 billion (US$6.3 billion), an increase of 16.2% compared with the same period of 2025. Total operating expenses were RMB17.7 billion (US$2.6 billion), an increase of 3.9% compared with the same period of 2025. Net income attributable to the Company's shareholders was RMB17.7 billion (US$2.6 billion). Non-GAAP net income attributable to the Company's shareholders was RMB19.0 billion (US$2.8 billion). [1] Basic net income per share was US$0.81 (US$4.06 per ADS). Non-GAAP basic net income per share was US$0.88 (US$4.38 per ADS).[1] [1] As used in this announcement, non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results within this announcement.

BUSINESS OVERVIEW

We continue to drive innovation across both newly launched and established titles, while further advancing our pipeline of titles in development.

Below are some recent highlights from our key products and services:

Games and related value-added services

The Fantasy Westward Journey franchise, Identity V, Eggy Party, Sword of Justice and Where Winds Meet sustained solid momentum through ongoing content updates, gameplay innovation and vibrant community activities.

We also advanced our global strategy and enhanced player engagement through strong live operations. For example, Where Winds Meet and Marvel Rivals further broadened their international reach with a steady stream of fresh content and community-focused initiatives in various markets including North America and Europe.

With respect to our pipeline of new titles, Sea of Remnants launched in China in July 2026, while development of Ananta and Blood Message remained on track, strengthening our innovative pipeline across diverse genres, gameplay and markets.

Youdao

Youdao advanced its AI-native strategy and deepened AI-driven innovation across its ecosystem. In the second quarter, it launched the large language model, Confucius 4, which delivers leading mathematical reasoning capabilities at lower inference costs compared to its previous version. Youdao also advanced its AI agent capabilities toward the autonomous execution of complex work and learning tasks.

NetEase Cloud Music

NetEase Cloud Music further developed its music-centric ecosystem by nurturing its distinctive community and enriching its differentiated content offering with original music, thereby driving stronger community engagement. It also further improved music-oriented monetization through continued growth in subscription-based memberships.

Innovative businesses and others

Innovative businesses and others remained focused on sustainable development and efficient operations, with Yanxuan maintaining leading positions on major e-commerce platforms in China across its key categories, including pet food, home scents and home goods.

FINANCIAL REVIEW

Second Quarter 2026 Financial Results

Net Revenues

Net revenues for the second quarter of 2026 were RMB30.1 billion (US$4.4 billion), compared with RMB30.6 billion and RMB27.9 billion for the preceding quarter and the same quarter of 2025, respectively.

Net revenues from games and related value-added services were RMB25.0 billion (US$3.7 billion) for the second quarter of 2026, compared with RMB25.7 billion and RMB22.8 billion for the preceding quarter and the same quarter of 2025, respectively. Net revenues from the operation of online games accounted for approximately 97.7% of the segment's net revenues for the second quarter of 2026, compared with 97.5% and 97.1% for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter decrease was mainly due to a slight decline in net revenues from certain self-developed and licensed games. The year-over-year increase was attributable to higher net revenues from self-developed games, such as the Fantasy Westward Journey franchise and Where Winds Meet.

Net revenues from Youdao were RMB1.5 billion (US$216.2 million) for the second quarter of 2026, compared with RMB1.3 billion and RMB1.4 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter and year-over-year increases were mainly attributable to higher net revenues from its learning services.

Net revenues from NetEase Cloud Music were RMB2.0 billion (US$291.4 million) for the second quarter of 2026, remaining stable compared with the preceding quarter and the same quarter of 2025.

Net revenues from innovative businesses and others were RMB1.6 billion (US$241.6 million) for the second quarter of 2026, compared with RMB1.5 billion and RMB1.7 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter increase was mainly attributable to higher net revenues from e-commerce business and several other businesses included within the segment. The year-over-year decrease was mainly due to decreased net revenues from the e-commerce business.

Cost of Revenues

Cost of revenues for the second quarter of 2026 was RMB8.9 billion (US$1.3 billion), compared with RMB9.4 billion and RMB9.8 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter decrease was mainly due to lower revenue-sharing costs. The year-over-year decrease was mainly due to lower revenue-sharing and product costs.

Gross Profit

Gross profit for the second quarter of 2026 was RMB21.2 billion (US$3.1 billion), compared with RMB21.2 billion and RMB18.1 billion for the preceding quarter and the same quarter of 2025, respectively.

Operating Expenses

Total operating expenses for the second quarter of 2026 were RMB9.1 billion (US$1.3 billion), compared with RMB8.6 billion and RMB9.0 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter increase was primarily due to increased marketing expenditures, staff-related costs and research and development expenditures. The year-over-year increase was primarily due to increased research and development expenditures.

Other Income/(Expenses)

Other income/(expenses) consisted of net investment income/(loss), interest income, net exchange gains/(losses) and others. The quarter-over-quarter and year-over-year fluctuations in other income/(expenses) were mainly due to a decline in the fair value of equity security investments and impairment provisions made during the second quarter of 2026.

Income Tax

The Group recorded a net income tax charge of RMB2.5 billion (US$362.4 million) for the second quarter of 2026, compared with RMB2.5 billion and RMB1.6 billion for the preceding quarter and the same quarter of 2025, respectively. The effective tax rate for the second quarter of 2026 was 25.5%, compared with 18.9% and 14.7% for the preceding quarter and the same quarter of 2025, respectively. The effective tax rate represents certain estimates by the Group as to the tax obligations and benefits applicable to it in each quarter.

Net Income and Non-GAAP Net Income

Net income attributable to the Company's shareholders totaled RMB7.0 billion (US$1.0 billion) for the second quarter of 2026, compared with RMB10.7 billion and RMB8.6 billion for the preceding quarter and the same quarter of 2025, respectively.

Basic net income was US$0.32 per share (US$1.61 per ADS) for the second quarter of 2026, compared with US$0.49 per share (US$2.46 per ADS) and US$0.40 per share (US$1.99 per ADS) for the preceding quarter and the same quarter of 2025, respectively.

Non-GAAP net income attributable to the Company's shareholders totaled RMB7.7 billion (US$1.1 billion) for the second quarter of 2026, compared with RMB11.3 billion and RMB9.5 billion for the preceding quarter and the same quarter of 2025, respectively.

Non-GAAP basic net income was US$0.36 per share (US$1.78 per ADS) for the second quarter of 2026, compared with US$0.52 per share (US$2.60 per ADS) and US$0.44 per share (US$2.20 per ADS) for the preceding quarter and the same quarter of 2025, respectively.

Six Months Ended June 30, 2026 Financial Results

Net Revenues

Net revenues for the six months ended June 30, 2026 were RMB60.7 billion (US$8.9 billion), compared with RMB56.7 billion for the same period of 2025.

Net revenues from games and related value-added services were RMB50.7 billion (US$7.5 billion) for the six months ended June 30, 2026, compared with RMB46.9 billion for the same period of 2025. Net revenues from the operation of online games accounted for approximately 97.6% of the segment's net revenues for the six months ended June 30, 2026, compared with approximately 97.3% for the same period of 2025. The increase was attributable to higher net revenues from self-developed games, such as the Fantasy Westward Journey franchise, Where Winds Meet and Eggy Party.

Net revenues from Youdao were RMB2.8 billion (US$414.9 million) for the six months ended June 30, 2026, compared with RMB2.7 billion for the same period of 2025. The increase was mainly attributable to higher net revenues from its learning services and online marketing services, partially offset by a decrease in net revenues from smart devices.

Net revenues from NetEase Cloud Music were RMB4.0 billion (US$583.4 million) for the six months ended June 30, 2026, compared with RMB3.8 billion for the same period of 2025. The increase was mainly attributable to higher net revenues from online music services, driven by growth in sales of membership subscriptions.

Net revenues from innovative businesses and others were RMB3.2 billion (US$469.9 million) for the six months ended June 30, 2026, compared with RMB3.3 billion for the same period of 2025. The decrease was mainly due to a decline in net revenues from the e-commerce business.

Cost of Revenues

Cost of revenues for the six months ended June 30, 2026 was RMB18.3 billion (US$2.7 billion), compared with RMB20.2 billion for the same period of 2025. The decrease was mainly due to lower revenue-sharing and product costs.

Gross Profit

Gross profit for the six months ended June 30, 2026 was RMB42.4 billion (US$6.3 billion), compared with RMB36.5 billion for the same period of 2025.

Operating Expenses

Total operating expenses for the six months ended June 30, 2026 were RMB17.7 billion (US$2.6 billion), compared with RMB17.0 billion for the same period of 2025. The increase was primarily attributable to higher marketing and research and development expenditures for games and related value-added services.

Other Income/(Expenses)

Other income/(expenses) consisted of net investment income/(loss), interest income, net exchange gains/(losses) and others. The fluctuation in other income/(expenses) was mainly due to a decline in the fair value of equity security investments, increased net exchange losses, and impairment provisions made during the six months ended June 30, 2026.

Income Tax

The Group recorded a net income tax charge of RMB5.0 billion (US$734.3 million) for the six months ended June 30, 2026, compared with RMB3.5 billion for the same period of 2025. The effective tax rate for the six months ended June 30, 2026 was 21.7%, compared with 15.0% for the same period of 2025. The effective tax rate represents certain estimates by the Group as to the tax obligations and benefits applicable to it in each period.

Net Income and Non-GAAP Net Income

Net income attributable to the Company's shareholders totaled RMB17.7 billion (US$2.6 billion) for the six months ended June 30, 2026, compared with RMB18.9 billion for the same period of 2025.

Basic net income was US$0.81 per share (US$4.06 per ADS) for the six months ended June 30, 2026, compared with US$0.88 per share (US$4.38 per ADS) for the same period of 2025.

Non-GAAP net income attributable to the Company's shareholders totaled RMB19.0 billion (US$2.8 billion) for the six months ended June 30, 2026, compared with RMB20.8 billion for the same period of 2025.

Non-GAAP basic net income was US$0.88 per share (US$4.38 per ADS) for the six months ended June 30, 2026, compared with US$0.96 per share (US$4.81 per ADS) for the same period of 2025.

OTHER FINANCIAL INFORMATION

As of June 30, 2026, the Company's net cash (total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus loans) totaled RMB167.5 billion (US$24.7 billion), compared with RMB163.5 billion as of December 31, 2025. Net cash provided by operating activities was RMB10.0 billion (US$1.5 billion) for the second quarter of 2026, compared with RMB13.7 billion and RMB10.9 billion for the preceding quarter and the second quarter of 2025, respectively.

EXCHANGE RATE INFORMATION

The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. The percentages stated are calculated based on RMB.

The conversion of Renminbi (RMB) into US$ is based on the noon buying rate of US$1.00 = RMB6.7851 on the last trading day of June 2026 (June 30, 2026) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on June 30, 2026, or at any other certain date.

CONFERENCE CALL

NetEase's management team will host a teleconference call with a simultaneous webcast at 8:00 a.m. Eastern Time on Thursday, August 20, 2026 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, August 20, 2026). NetEase's management will be on the call to discuss the results and answer questions.

Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10056362, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10056362. The replay will be available through August 27, 2026.

This call will be webcast live, and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/.

ABOUT NETEASE, INC.

NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.

Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.

Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.

For more information, please visit: http://ir.netease.com/.

Contact for Media and Investors:

Email: [email protected] 

FORWARD-LOOKING STATEMENTS

This announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. In addition, statements that are not historical facts, including statements about NetEase's strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; risks associated with NetEase's business and operating strategies and its ability to implement such strategies; NetEase's ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in regulatory environment in the markets where NetEase operates, including policy or rule changes on taxation; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; risks related to evolving economic cycles and geopolitical tensions, including the direct or indirect impacts of national trade, investment, protectionist, tax or other laws or policies as well as export controls and economic or trade sanctions; risks related to the expansion of NetEase's businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.

NON-GAAP FINANCIAL MEASURES

NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

NetEase defines non-GAAP net income attributable to the Company's shareholders as net income attributable to the Company's shareholders excluding share-based compensation expenses. Non-GAAP net income attributable to the Company's shareholders enables NetEase's management to assess its operating results without considering the impact of share-based compensation expenses. NetEase believes that this non-GAAP financial measure provides useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors' assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income attributable to the Company's shareholders is that it does not reflect all items of expense/income that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in NetEase's business and are not reflected in the presentation of non-GAAP net income attributable to the Company's shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited.

NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company's shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure.

The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and US$ (in thousands, except per share data or per ADS data):

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2025

2026

2026

2026

2025

2026

2026

RMB

RMB

RMB

US$

RMB

RMB

US$

Net income attributable to the
  Company's shareholders

8,601,010

10,674,106

6,980,656

1,028,821

18,902,167

17,654,762

2,601,989

Add: Share-based compensation

930,921

600,718

766,058

112,903

1,866,491

1,366,776

201,438

Non-GAAP net income attributable
  to the Company's shareholders

9,531,931

11,274,824

7,746,714

1,141,724

20,768,658

19,021,538

2,803,427

Non-GAAP net income per share

Basic

2.99

3.53

2.42

0.36

6.53

5.94

0.88

Diluted

2.96

3.49

2.40

0.35

6.46

5.90

0.87

Non-GAAP net income per ADS

Basic

14.95

17.63

12.09

1.78

32.64

29.72

4.38

Diluted

14.81

17.46

12.02

1.77

32.32

29.49

4.35

NETEASE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

December 31, 

June 30, 

June 30, 

2025

2026

2026

RMB

RMB

US$

Assets

Current assets:

Cash and cash equivalents

47,167,904

22,814,542

3,362,447

Time deposits

92,639,378

101,978,645

15,029,792

Restricted cash

4,319,344

4,447,483

655,478

Accounts receivable, net

5,337,819

5,746,080

846,867

Inventories

689,183

511,896

75,444

Prepayments and other current assets, net

7,658,346

5,965,371

879,188

Short-term investments

22,803,503

50,599,638

7,457,464

Total current assets

180,615,477

192,063,655

28,306,680

Non-current assets:

Property, equipment and software, net

8,425,327

8,180,276

1,205,623

Land use rights, net

4,047,355

3,982,017

586,877

Deferred tax assets

2,831,423

2,695,809

397,313

Time deposits

2,995,000

260,000

38,319

Restricted cash

3,893

3,775

556

Long-term investments

18,462,883

21,336,343

3,144,588

Other long-term assets

4,033,702

3,686,261

543,287

Total non-current assets

40,799,583

40,144,481

5,916,563

Total assets

221,415,060

232,208,136

34,223,243

Liabilities, Redeemable noncontrolling interests and
  Shareholders' equity

Current liabilities:

Accounts payable

643,164

702,263

103,501

Salary and welfare payables

4,889,708

3,764,789

554,861

Taxes payable

3,874,143

3,720,498

548,334

Short-term loans

6,384,417

12,604,170

1,857,625

Contract liabilities

20,514,540

19,297,191

2,844,054

Accrued liabilities and other payables

16,062,984

15,529,221

2,288,724

Total current liabilities

52,368,956

55,618,132

8,197,099

Non-current liabilities:

Deferred tax liabilities

2,637,258

3,727,316

549,338

Other long-term liabilities

1,304,837

1,300,994

191,742

Total non-current liabilities

3,942,095

5,028,310

741,080

Total liabilities

56,311,051

60,646,442

8,938,179

Redeemable noncontrolling interests

91,319

94,938

13,992

Shareholders' equity:

Ordinary shares

2,631

2,632

388

Additional paid-in capital

9,837,460

8,781,946

1,294,299

Treasury stock

(1,518,573)

(1,617,961)

(238,458)

Statutory reserves

2,457,371

2,457,371

362,172

Accumulated other comprehensive loss

(237,770)

(1,644,123)

(242,314)

Retained earnings

149,755,000

159,110,675

23,450,011

NetEase, Inc.'s shareholders' equity

160,296,119

167,090,540

24,626,098

Noncontrolling interests

4,716,571

4,376,216

644,974

Total equity

165,012,690

171,466,756

25,271,072

Total liabilities, redeemable noncontrolling interests and
  shareholders' equity

221,415,060

232,208,136

34,223,243

NETEASE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME

(in thousands except per share data or per ADS data)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2025

2026

2026

2026

2025

2026

2026

RMB

RMB

RMB

US$

RMB

RMB

US$

Net revenues

27,891,664

30,591,281

30,106,546

4,437,156

56,720,209

60,697,827

8,945,753

Cost of revenues

(9,839,182)

(9,374,209)

(8,889,221)

(1,310,109)

(20,188,321)

(18,263,430)

(2,691,697)

Gross profit

18,052,482

21,217,072

21,217,325

3,127,047

36,531,888

42,434,397

6,254,056

Operating expenses:

Selling and marketing expenses

(3,578,174)

(3,441,485)

(3,678,809)

(542,189)

(6,273,771)

(7,120,294)

(1,049,401)

General and administrative
  expenses

(1,056,578)

(636,597)

(805,268)

(118,682)

(2,012,915)

(1,441,865)

(212,505)

Research and development
  expenses

(4,356,646)

(4,482,157)

(4,643,910)

(684,428)

(8,742,959)

(9,126,067)

(1,345,016)

Total operating expenses

(8,991,398)

(8,560,239)

(9,127,987)

(1,345,299)

(17,029,645)

(17,688,226)

(2,606,922)

Operating profit

9,061,084

12,656,833

12,089,338

1,781,748

19,502,243

24,746,171

3,647,134

Other income/(expenses):

Investment income/(loss), net

328,444

5,472

(2,953,671)

(435,317)

1,021,195

(2,948,199)

(434,511)

Interest income, net

953,490

890,267

863,201

127,220

2,014,376

1,753,468

258,429

Exchange gains/(losses), net

114,037

(622,108)

(436,492)

(64,331)

115,840

(1,058,600)

(156,018)

Other, net

192,167

438,978

62,858

9,264

447,482

501,836

73,961

Income before tax

10,649,222

13,369,442

9,625,234

1,418,584

23,101,136

22,994,676

3,388,995

Income tax

(1,560,757)

(2,523,838)

(2,458,674)

(362,364)

(3,465,900)

(4,982,512)

(734,331)

Net income

9,088,465

10,845,604

7,166,560

1,056,220

19,635,236

18,012,164

2,654,664

Accretion of redeemable
  noncontrolling interests

(1,051)

(1,104)

(1,087)

(160)

(2,100)

(2,191)

(323)

Net income attributable to
  noncontrolling interests

(486,404)

(170,394)

(184,817)

(27,239)

(730,969)

(355,211)

(52,352)

Net income attributable to the
  Company's shareholders

8,601,010

10,674,106

6,980,656

1,028,821

18,902,167

17,654,762

2,601,989

Net income

9,088,465

10,845,604

7,166,560

1,056,220

19,635,236

18,012,164

2,654,664

Other comprehensive income

Foreign currency translation
  adjustment

(389,857)

(728,683)

(770,419)

(113,546)

(628,819)

(1,499,102)

(220,940)

Total comprehensive income

8,698,608

10,116,921

6,396,141

942,674

19,006,417

16,513,062

2,433,724

Comprehensive income
  attributable to noncontrolling
  interests

(470,857)

(121,843)

(140,619)

(20,725)

(690,158)

(262,462)

(38,682)

Comprehensive income
  attributable to the
  Company's shareholders

8,227,751

9,995,078

6,255,522

921,949

18,316,259

16,250,600

2,395,042

Net income per share

Basic

2.70

3.34

2.18

0.32

5.94

5.52

0.81

Diluted

2.67

3.31

2.17

0.32

5.88

5.47

0.81

Net income per ADS

Basic

13.49

16.69

10.90

1.61

29.71

27.58

4.06

Diluted

13.36

16.53

10.83

1.60

29.41

27.37

4.03

Weighted average number of
  ordinary shares used in
  calculating net income per
  share

Basic

3,188,634

3,198,123

3,203,046

3,203,046

3,181,307

3,200,598

3,200,598

Diluted

3,214,681

3,227,325

3,221,637

3,221,637

3,210,563

3,224,495

3,224,495

NETEASE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2025

2026

2026

2026

2025

2026

2026

RMB

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

9,088,465

10,845,604

7,166,560

1,056,220

19,635,236

18,012,164

2,654,664

Adjustments to reconcile net income to net cash
  provided by operating activities:

Depreciation and amortization

428,427

430,583

439,439

64,765

909,188

870,022

128,225

Fair value changes of equity security, other
  investments and financial instruments

55,715

1,117,717

2,023,477

298,224

(502,784)

3,141,194

462,955

Impairment losses on investments

161,463

344,871

1,281,917

188,931

250,534

1,626,788

239,759

Share-based compensation cost

946,395

616,180

781,656

115,202

1,898,267

1,397,836

206,015

Allowance for expected credit losses

153,179

6,719

1,309

193

169,950

8,028

1,183

Gains on disposal of property, equipment and
  software

(30,920)

(565)

(13,983)

(2,061)

(10,627)

(14,548)

(2,144)

Unrealized exchange (gains)/losses

(165,662)

643,942

487,982

71,920

(194,115)

1,131,924

166,825

(Gains)/losses on disposal of long-term investments

(141,078)

(1,071,442)

5,550

818

(129,403)

(1,065,892)

(157,093)

Deferred income taxes

(853,764)

532,257

693,742

102,245

(525,492)

1,225,999

180,690

Share of results on equity method investees

13,479

442,575

96,645

14,244

(5,189)

539,220

79,471

Fair value changes of short-term investments

(344,604)

(385,395)

(372,234)

(54,861)

(546,213)

(757,629)

(111,661)

Changes in operating assets and liabilities:

Accounts receivable

953,295

(1,188,837)

726,762

107,111

(135,665)

(462,075)

(68,101)

Inventories

(73,944)

143,099

34,048

5,018

(20,171)

177,147

26,108

Prepayments and other assets

583,484

116,152

(16,816)

(2,478)

288,306

99,336

14,640

Accounts payable

119,644

134,445

(105,340)

(15,525)

(28,432)

29,105

4,290

Salary and welfare payables

920,662

(2,253,559)

1,107,729

163,259

(1,164,449)

(1,145,830)

(168,874)

Taxes payable

(764,372)

1,895,324

(2,038,642)

(300,459)

1,031,751

(143,318)

(21,122)

Contract liabilities

(718,719)

1,384,445

(2,511,144)

(370,097)

1,807,479

(1,126,699)

(166,055)

Accrued liabilities and other payables

530,718

(21,044)

184,272

27,158

240,344

163,228

24,057

Net cash provided by operating activities

10,861,863

13,733,071

9,972,929

1,469,827

22,968,515

23,706,000

3,493,832

Cash flows from investing activities:

Purchase of property, equipment and software

(189,842)

(312,148)

(18,785)

(2,769)

(643,913)

(330,933)

(48,774)

Proceeds from sale of property, equipment and
  software

21,499

1,673

14,539

2,143

22,835

16,212

2,389

Purchase of intangible assets, content and licensed
  copyrights

(313,349)

(290,019)

(61,554)

(9,072)

(612,120)

(351,573)

(51,815)

Net changes of short-term investments with terms of
  three months or less

776,428

(15,766,308)

(1,594,496)

(235,000)

(5,362,128)

(17,360,804)

(2,558,666)

Purchase of short-term investments with terms over
  three months and debt securities

(5,800,000)

(5,885,000)

(12,851,707)

(1,894,107)

(8,770,000)

(18,736,707)

(2,761,449)

Proceeds from maturities of short-term investments
  with terms over three months

5,745,454

4,861,483

3,515,814

518,167

8,454,055

8,377,297

1,234,661

Investment in equity method investees

(100,986)

(94,021)

(3,040,753)

(448,152)

(155,089)

(3,134,774)

(462,009)

Investment in other equity investments

(2,640,655)

(3,110,374)

(453,871)

(66,892)

(2,677,518)

(3,564,245)

(525,304)

Proceeds from disposal of long-term investments

784,855

1,353,947

50,733

7,477

862,283

1,404,680

207,024

Placement/rollover of matured time deposits

(27,980,605)

(30,608,133)

(50,216,128)

(7,400,941)

(77,582,412)

(80,824,261)

(11,912,022)

Proceeds from maturities of time deposits

33,617,510

42,018,869

30,056,765

4,429,819

77,543,992

72,075,634

10,622,634

Change in other long-term assets

(27,367)

65,909

(58,891)

(8,679)

(28,045)

7,018

1,034

Net cash provided by/(used in) investing activities

3,892,942

(7,764,122)

(34,658,334)

(5,108,006)

(8,948,060)

(42,422,456)

(6,252,297)

Cash flows from financing activities:

Net changes from loans with terms of three months or
  less 

2,017,570

1,182,383

420,940

62,039

(236,845)

1,603,323

236,300

Proceeds of loans with terms over three months

1,231,000

6,134,520

1,326,090

195,441

3,978,550

7,460,610

1,099,558

Payment of loans with terms over three months

(1,804,730)

(2,620,900)

—

—

(4,740,407)

(2,620,900)

(386,273)

Dividends paid to shareholders

(3,082,122)

(5,156,320)

(3,138,873)

(462,613)

(8,666,654)

(8,295,193)

(1,222,560)

Net amounts received/(paid) related to capital
  contribution from or repurchase of noncontrolling
  interests shareholders

42,400

(23,418)

4,874

718

84,917

(18,544)

(2,733)

Net amounts paid related to repurchase of NetEase's
  ADSs/purchase of subsidiaries' shares 

(355,563)

(1,314,003)

(1,795,596)

(264,638)

(659,164)

(3,109,599)

(458,298)

Net cash used in financing activities

(1,951,445)

(1,797,738)

(3,182,565)

(469,053)

(10,239,603)

(4,980,303)

(734,006)

Effect of exchange rate changes on cash, cash
  equivalents and restricted cash held in foreign
  currencies

(31,749)

(340,829)

(187,753)

(27,671)

(88,681)

(528,582)

(77,903)

Net increase/(decrease) in cash, cash equivalents
  and restricted cash

12,771,611

3,830,382

(28,055,723)

(4,134,903)

3,692,171

(24,225,341)

(3,570,374)

Cash, cash equivalents and restricted cash, at the
  beginning of the period

45,395,483

51,491,141

55,321,523

8,153,384

54,474,923

51,491,141

7,588,855

Cash, cash equivalents and restricted cash, at end of
  the period

58,167,094

55,321,523

27,265,800

4,018,481

58,167,094

27,265,800

4,018,481

Supplemental disclosures of cash flow information:

Cash paid for income taxes, net

2,184,556

1,464,650

2,487,225

366,572

3,391,111

3,951,875

582,434

Cash paid for interest expenses

64,366

78,326

25,374

3,740

161,790

103,700

15,283

Supplemental schedule of non-cash investing and
  financing activities:

Fixed asset purchases financed by accounts payable
  and accrued liabilities

744,596

463,033

522,371

76,988

744,596

522,371

76,988

NETEASE, INC.

UNAUDITED SEGMENT INFORMATION

(in thousands)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2025

2026

2026

2026

2025

2026

2026

RMB

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Games and related value-added services

22,806,459

25,712,975

25,022,788

3,687,903

46,854,466

50,735,763

7,477,527

Youdao

1,417,541

1,348,022

1,466,861

216,189

2,715,803

2,814,883

414,862

NetEase Cloud Music

1,968,729

1,981,234

1,977,472

291,443

3,827,117

3,958,706

583,441

Innovative businesses and others

1,698,935

1,549,050

1,639,425

241,621

3,322,823

3,188,475

469,923

Total net revenues

27,891,664

30,591,281

30,106,546

4,437,156

56,720,209

60,697,827

8,945,753

Cost of revenues:

Games and related value-added services

(6,792,240)

(6,482,431)

(5,973,965)

(880,453)

(14,287,502)

(12,456,396)

(1,835,846)

Youdao

(808,181)

(745,729)

(749,986)

(110,534)

(1,492,216)

(1,495,715)

(220,441)

NetEase Cloud Music

(1,258,855)

(1,247,066)

(1,237,231)

(182,345)

(2,434,632)

(2,484,297)

(366,140)

Innovative businesses and others

(979,906)

(898,983)

(928,039)

(136,777)

(1,973,971)

(1,827,022)

(269,270)

Total cost of revenues

(9,839,182)

(9,374,209)

(8,889,221)

(1,310,109)

(20,188,321)

(18,263,430)

(2,691,697)

Gross profit:

Games and related value-added services

16,014,219

19,230,544

19,048,823

2,807,450

32,566,964

38,279,367

5,641,681

Youdao

609,360

602,293

716,875

105,655

1,223,587

1,319,168

194,421

NetEase Cloud Music

709,874

734,168

740,241

109,098

1,392,485

1,474,409

217,301

Innovative businesses and others

719,029

650,067

711,386

104,844

1,348,852

1,361,453

200,653

Total gross profit

18,052,482

21,217,072

21,217,325

3,127,047

36,531,888

42,434,397

6,254,056

SOURCE NetEase, Inc.

Aurora Investment Counsel acquired a new position in Qualys, Inc. (NASDAQ:QLYS – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 18,653 shares of the software maker’s stock, valued at approximately $2,565,000. Qualys comprises approximately 1.3% of Aurora Investment Counsel’s holdings, making the stock its 15th largest position. Aurora Investment Counsel owned 0.05% of Qualys at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Strive Financial Group LLC acquired a new position in shares of Qualys during the 4th quarter worth $27,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Qualys by 204.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 213 shares of the software maker’s stock valued at $28,000 after purchasing an additional 143 shares during the last quarter. Root Financial Partners LLC lifted its stake in shares of Qualys by 206.2% in the 1st quarter. Root Financial Partners LLC now owns 297 shares of the software maker’s stock valued at $26,000 after purchasing an additional 200 shares during the last quarter. Employees Retirement System of Texas acquired a new stake in shares of Qualys in the 4th quarter valued at $43,000. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in Qualys by 37,400.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 375 shares of the software maker’s stock worth $50,000 after purchasing an additional 374 shares in the last quarter. Institutional investors own 99.31% of the company’s stock.

Insider Activity In related news, CEO Sumedh S. Thakar sold 30,000 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $135.00, for a total transaction of $4,050,000.00. Following the completion of the sale, the chief executive officer owned 196,686 shares in the company, valued at $26,552,610. This trade represents a 13.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Joo Mi Kim sold 1,627 shares of Qualys stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $153.04, for a total transaction of $248,996.08. Following the transaction, the chief financial officer directly owned 75,743 shares of the company’s stock, valued at $11,591,708.72. This represents a 2.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,979 shares of company stock worth $9,217,993 over the last 90 days. 0.72% of the stock is currently owned by company insiders.

Qualys Stock Down 0.7% Qualys stock opened at $186.68 on Thursday. The business has a 50 day moving average price of $148.18 and a two-hundred day moving average price of $115.16. The stock has a market cap of $6.46 billion, a price-to-earnings ratio of 32.30 and a beta of 0.60. Qualys, Inc. has a 12 month low of $74.51 and a 12 month high of $201.54. Qualys (NASDAQ:QLYS – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.98 earnings per share for the quarter, topping the consensus estimate of $1.78 by $0.20. Qualys had a return on equity of 37.52% and a net margin of 29.38%.The company had revenue of $182.18 million for the quarter, compared to analyst estimates of $178.57 million. During the same quarter last year, the firm earned $1.68 EPS. Qualys’s revenue for the quarter was up 11.1% compared to the same quarter last year. Qualys has set its FY 2026 guidance at 7.740-7.880 EPS and its Q3 2026 guidance at 1.910-1.980 EPS. On average, analysts expect that Qualys, Inc. will post 5.85 earnings per share for the current fiscal year.

Analyst Ratings Changes QLYS has been the topic of several analyst reports. Jefferies Financial Group increased their target price on shares of Qualys from $150.00 to $185.00 and gave the stock a “hold” rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on Qualys from $139.00 to $150.00 and gave the stock a “neutral” rating in a research report on Monday, July 27th. Weiss Ratings upgraded Qualys from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, July 16th. Morgan Stanley increased their price objective on Qualys from $115.00 to $130.00 and gave the company an “underweight” rating in a report on Wednesday, August 5th. Finally, Piper Sandler raised their price objective on Qualys from $100.00 to $175.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $170.53.

Check Out Our Latest Analysis on Qualys

Qualys Profile (Free Report)

Qualys, Inc (NASDAQ: QLYS) is a leading provider of cloud-based security and compliance solutions designed to help organizations streamline their IT security programs. Operating on a unified, modular platform, Qualys offers continuous visibility into global IT assets through a combination of lightweight cloud agents and on-premises scanner appliances. The platform supports an array of security and compliance use cases, enabling real-time detection of vulnerabilities, policy violations and misconfigurations across on-premises, cloud and hybrid environments.

The company’s flagship Qualys Cloud Platform delivers a suite of integrated applications, including vulnerability management, detection and response (VMDR), policy compliance, web application scanning, file integrity monitoring, asset inventory and container security.

See Also Five stocks we like better than Qualys Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding QLYS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Qualys, Inc. (NASDAQ:QLYS – Free Report).

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Bell & Brown Wealth Advisors LLC bought a new stake in Williams-Sonoma, Inc. (NYSE:WSM – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 28,894 shares of the specialty retailer’s stock, valued at approximately $6,735,000. Williams-Sonoma comprises about 2.0% of Bell & Brown Wealth Advisors LLC’s portfolio, making the stock its 14th biggest position.

Several other hedge funds have also recently added to or reduced their stakes in the company. Strategic Advisory Partners LLC bought a new position in shares of Williams-Sonoma during the second quarter valued at approximately $272,000. Csenge Advisory Group bought a new stake in Williams-Sonoma in the second quarter valued at $407,000. Johnson Financial Group Inc. purchased a new position in Williams-Sonoma during the 2nd quarter valued at $151,000. Tocqueville Asset Management L.P. bought a new position in Williams-Sonoma in the 2nd quarter worth $19,046,000. Finally, Empirical Asset Management LLC bought a new position in Williams-Sonoma in the 2nd quarter worth $803,000. Institutional investors own 99.29% of the company’s stock.

Williams-Sonoma Price Performance Shares of NYSE WSM opened at $242.34 on Thursday. Williams-Sonoma, Inc. has a 1 year low of $165.51 and a 1 year high of $254.89. The stock has a market cap of $28.54 billion, a P/E ratio of 27.14, a price-to-earnings-growth ratio of 2.65 and a beta of 1.50. The firm has a 50-day moving average of $231.71 and a 200 day moving average of $207.33.

Williams-Sonoma (NYSE:WSM – Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The specialty retailer reported $1.93 earnings per share for the quarter, topping analysts’ consensus estimates of $1.80 by $0.13. The business had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.80 billion. Williams-Sonoma had a net margin of 13.81% and a return on equity of 53.29%. The business’s revenue was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.85 earnings per share. Research analysts expect that Williams-Sonoma, Inc. will post 9.38 earnings per share for the current fiscal year. Williams-Sonoma Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Friday, July 17th will be given a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, July 17th. Williams-Sonoma’s payout ratio is currently 34.04%.

Insider Transactions at Williams-Sonoma In other Williams-Sonoma news, CEO Laura Alber sold 15,000 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $200.00, for a total transaction of $3,000,000.00. Following the sale, the chief executive officer directly owned 923,524 shares in the company, valued at approximately $184,704,800. This trade represents a 1.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Karalyn Yearout sold 1,112 shares of Williams-Sonoma stock in a transaction on Monday, June 15th. The stock was sold at an average price of $228.49, for a total value of $254,080.88. Following the completion of the sale, the executive vice president directly owned 21,717 shares of the company’s stock, valued at approximately $4,962,117.33. The trade was a 4.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 18,156 shares of company stock worth $3,738,699. 1.10% of the stock is currently owned by company insiders.

Analysts Set New Price Targets A number of equities research analysts have recently weighed in on the stock. Telsey Advisory Group lifted their target price on shares of Williams-Sonoma from $225.00 to $255.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Bank of America assumed coverage on shares of Williams-Sonoma in a research note on Friday, June 12th. They issued a “buy” rating and a $250.00 price target for the company. Royal Bank Of Canada lifted their price objective on Williams-Sonoma from $192.00 to $260.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Argus set a $230.00 target price on Williams-Sonoma in a report on Friday, May 29th. Finally, Wells Fargo & Company increased their target price on Williams-Sonoma from $190.00 to $240.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $231.88.

Get Our Latest Analysis on Williams-Sonoma

Williams-Sonoma Profile (Free Report)

Williams‑Sonoma, Inc is a specialty retailer focused on the home and culinary markets, best known for premium cookware, kitchen tools and home furnishings. The company traces its roots to a single cookware store founded by Chuck Williams in 1956 in Sonoma, California, and has evolved into a multi‑brand home furnishings and housewares business. Its merchandise mix spans cookware and kitchen electrics, tabletop and food prep items, furniture, bedding, lighting and decorative accessories designed for both everyday use and higher‑end interiors.

The company operates a portfolio of consumer brands that target distinct segments of the home market.

See Also Five stocks we like better than Williams-Sonoma Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think?

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Aurora Investment Counsel bought a new position in shares of Xylem Inc. (NYSE:XYL – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 4,723 shares of the industrial products company’s stock, valued at approximately $558,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Callahan Advisors LLC acquired a new position in shares of Xylem during the fourth quarter worth approximately $1,721,000. Northwestern Mutual Wealth Management Co. boosted its position in Xylem by 2,309.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company’s stock worth $54,314,000 after purchasing an additional 413,904 shares during the last quarter. Abacus Wealth Partners LLC purchased a new position in Xylem in the fourth quarter valued at about $1,663,000. Norges Bank bought a new position in Xylem during the fourth quarter valued at $361,012,000. Finally, MUFG Securities EMEA plc increased its stake in shares of Xylem by 608.1% in the fourth quarter. MUFG Securities EMEA plc now owns 32,990 shares of the industrial products company’s stock worth $4,493,000 after purchasing an additional 28,331 shares in the last quarter. 87.96% of the stock is currently owned by institutional investors.

Xylem Price Performance Shares of XYL stock opened at $116.28 on Thursday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.24 and a current ratio of 1.61. The business’s 50 day moving average price is $117.87 and its 200-day moving average price is $120.03. The firm has a market cap of $27.15 billion, a P/E ratio of 27.69, a P/E/G ratio of 1.58 and a beta of 1.02. Xylem Inc. has a fifty-two week low of $105.29 and a fifty-two week high of $154.27.

Xylem (NYSE:XYL – Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.34 by $0.12. The business had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.34 billion. Xylem had a net margin of 11.15% and a return on equity of 11.77%. The company’s revenue for the quarter was up 1.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.26 EPS. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. On average, equities research analysts anticipate that Xylem Inc. will post 5.67 earnings per share for the current year. Xylem Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 27th will be issued a $0.43 dividend. The ex-dividend date is Thursday, August 27th. This represents a $1.72 annualized dividend and a yield of 1.5%. Xylem’s dividend payout ratio (DPR) is 40.95%.

Analyst Ratings Changes Several research analysts have commented on the stock. Mizuho raised their price target on shares of Xylem from $124.00 to $130.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Stifel Nicolaus boosted their price target on shares of Xylem from $157.00 to $160.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. UBS Group increased their price target on shares of Xylem from $135.00 to $138.00 and gave the stock a “neutral” rating in a report on Thursday, August 13th. Oppenheimer lowered their price objective on shares of Xylem from $160.00 to $158.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Finally, Jefferies Financial Group raised shares of Xylem from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $130.00 to $140.00 in a report on Thursday, June 25th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $154.23.

View Our Latest Analysis on XYL

About Xylem (Free Report)

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.

Further Reading Five stocks we like better than Xylem Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding XYL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xylem Inc. (NYSE:XYL – Free Report).

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GUANGZHOU, China, Aug. 20, 2026 (GLOBE NEWSWIRE) -- EHang Holdings Limited (Nasdaq: EH) (“EHang” or the “Company”), a world-leading advanced air mobility (“AAM”) technology platform company, today announced a strategic cooperation framework agreement of intent with China Construction Sixth Engineering Bureau Corp., Ltd. (“CSCEC Sixth Engineering Bureau”), a top-tier state-owned infrastructure giant in China. The partnership intends to focus on low-altitude infrastructure development and operational scenario planning. The Cross-Sea Low-Altitude Corridor Project in Lingao, Hainan (the “Project”) marks the first project to break ground under the partnership, aiming to establish a closed-loop low altitude economy ecosystem that integrates infrastructure and commercial operations.

Under the framework agreement, China Construction Sixth Engineering Bureau will draw on its industrial chain strengths and state-owned enterprise resources to jointly develop low‑altitude infrastructure such as general aviation airports, eVTOL vertiports and hangars tailored for low‑altitude flight operations and project planning and implementation. EHang, in turn, will deploy its core expertise in R&D, airworthiness certification and operations of pilotless passenger‑grade eVTOLs, providing aircraft alongside supporting operational and technical solutions.

The Project, as the first implementation of the partnership, has officially commenced construction, with Hainan Fuma General Aviation, a client and partner of EHang, as the project owner, CSCEC Sixth Engineering Bureau as the main constructor and EHang providing joint planning of infrastructure and operational sites, aircraft, operational services and technical support.

Centered around the Maniao General Aviation Airport, the Project will develop multiple eVTOL operational sites and vertiports along Lingao’s coastline, with plans to implement point-to-point passenger eVTOL routes and cross-sea shuttle services. The first key flight station, the WingHub South Sea, is taking shape and will include an operations and exhibition center, vertiports compatible with EHang’s pilotless eVTOL aircraft, and testing zones. The center’s application rollout will be implemented in phases: starting from offering aerial sightseeing, low-altitude logistics, training, and testing, followed by expansion to cross-sea passenger transport.

In December 2025, EH216-S completed a 22-kilometer cross-sea flight across the Qiongzhou Strait in 18 minutes, from Haikou in Hainan to Xuwen Port in Guangdong, validating the technical capabilities and efficiency of pilotless eVTOLs in cross-sea applications.

Hainan's 15th Five-Year Comprehensive Transportation Plan calls for the development of island-wide and cross-sea low-altitude route networks, as well as upgrades of general aviation airports and construction of low-altitude vertical takeoff and landing infrastructure. The Maniao General Aviation Airport in Lingao has been included among 36 major low-altitude infrastructure projects of Hainan's 15th Five-Year plan. Upon completion, the airport is expected to support point-to-point eVTOL flights between Lingao in Hainan and Xuwen in Guangdong, serving as the key base of an “aerial express corridor” across the inter-provincial Qiongzhou Strait.

A representative of CSCEC Sixth Engineering Bureau, stated, “As a strategic emerging industry and an important area of future development, the low-altitude economy is becoming an important driver of new quality productive forces and urban development. We will leverage its strengths in engineering construction, infrastructure investment and urban development to work with EHang, a leading eVTOL enterprise, on low-altitude infrastructure and application scenarios, supporting the standardized and high-quality development of the low-altitude economy in China.”

Zhao Wang, Chief Operating Officer of EHang, said, “With our pilotless human-carrying eVTOL aircraft that have met the technical and airworthiness requirements for commercial operations, infrastructure remains a critical enabler for scaling real-world applications. Our strategic partnership with CSCEC Sixth Engineering Bureau will bring together infrastructure development capabilities and EHang’s pilotless eVTOL technology to accelerate the build-out of AAM operational infrastructure and flight route network. Starting with the Project in Lingao, Hainan, EHang will work with CSCEC Sixth Engineering Bureau from infrastructure planning through operation launch. We look forward to applying this integrated approach to more cities and regions.”

(Image: EHang and CSCEC Sixth Engineering Bureau Sign Strategic Cooperation Framework Agreement)

(Image: Conceptual Planning Rendering of the WingHub South Sea)

About EHang

EHang (Nasdaq: EH) is the world’s leading advanced air mobility (“AAM”) technology platform company, committed to making safe, autonomous, and eco-friendly air mobility accessible to everyone. The company develops and manufactures a diversified portfolio of pilotless electric vertical take-off and landing (“eVTOL”) aircraft for a wide range of use cases, including aerial tourism, intra-city transport, intercity travel, logistics and emergency firefighting. Its flagship model, EH216-S, has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for pilotless eVTOL issued by the Civil Aviation Administration of China, and is now commercially operated under the country’s first Air Operator Certificates for human-carrying eVTOL services. Complementing this, EHang’s VT35 expands its reach into long-range and intercity scenarios, supporting the development of a multi-tiered low-altitude mobility network. By integrating advanced autonomous technologies with scalable operational infrastructure, EHang is redefining how people and goods move—across cities, regions, and natural barriers—shaping the future of air mobility. For more information, please visit www.ehang.com.

About CSCEC Sixth Engineering Bureau

China Construction Sixth Engineering Bureau Corp., Ltd. (“CSCEC Sixth Engineering Bureau”) is a core member of China State Construction Engineering Corporation, a Fortune Global 500 company. With registered capital of RMB6.278 billion, the company holds top-tier qualifications in building construction, municipal engineering and highway construction, and first-class qualifications in water conservancy, river and lake management and real estate development. Its core businesses include infrastructure, high-end building construction and real estate. The company provides integrated services covering planning, investment, design, construction, operations and technical consulting, with a focus on developing capabilities across the full project lifecycle.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about management’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to those relating to certifications, our expectations regarding demand for, and market acceptance of, our products and solutions and the commercialization of UAM services, our relationships with strategic partners, and current litigation and potential litigation involving us. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause EHang’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Investor Contact: [email protected]
Media Contact: [email protected]

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/5981942a-774d-412d-9c50-5b89ec9b17e0

https://www.globenewswire.com/NewsRoom/AttachmentNg/e552bef3-6662-4355-97ef-e663eefb9dd3

Tap Global Group PLC (LSE:TAP), the AIM-listed digital finance company, saw its shares rise 18% to 1.30pt, up from a previous close of 1.10p, after it reported stronger-than-expected revenue and a sharp narrowing of its operating loss.

The shares opened at 1.20p, compared with a previous close of 1.10p, before reaching 1.30p, according to London Stock Exchange data.

Tap reported revenue of approximately £3 million for the year ended 30 June, about 7% above market expectations, despite cryptocurrency exchange volumes falling by more than half during the year.

The group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss was approximately £260,000, about 80% lower than market expectations of £1.3 million, while its group EBITDA loss was about £55,000.

Tap said it was EBITDA-profitable in the second half of the financial year, marking an improvement as the company moved towards its stated goal of sustained profitability.

The company’s Tap Earn product, launched in May, also showed strong early growth, with assets under management reaching more than $5.6 million, up 61% in three months.

Tap Earn has delivered 15 consecutive weekly payouts and generated approximately $125,000 in yield revenue, equivalent to an annualised gross yield of about 7% on committed capital.

Customer deposits have reached $6.9 million since launch, compared with withdrawals of approximately $700,000, indicating that deposits have significantly exceeded withdrawals.

Tap had more than 400,000 registered users at 30 June, compared with about 391,000 a year earlier, while cash and cryptoassets totalled £2.15 million.

The company said its financial year 2026 performance demonstrated the resilience of its fee-based model during a difficult cryptocurrency market, while financial year 2027 would focus on scaling and sustained profitability.

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Alibaba reports June-quarter results on Thursday with investors looking to its cloud business to end a four-quarter run of earnings disappointments.

The company will release results before the US market opens, followed by a conference call at 7:30 a.m. ET.

Alibaba enters the print with renewed enthusiasm around Qwen and cloud computing, but a tougher test: whether rapid AI growth is becoming profitable enough to offset weaker Chinese consumption and heavy investment.

UBS and Jefferies expect group revenue growth of about 9%, up from 3% in the previous quarter, while UBS sees cloud revenue rising roughly 45%.

Cloud is now the clearest measure of whether Alibaba’s AI strategy is translating into commercial demand.

At the previous update, external cloud revenue growth accelerated to 40%, while AI-related product revenue posted triple-digit growth for an 11th consecutive quarter. That has raised expectations.

UBS analysts led by Kenneth Fong said investors were likely to “refocus on its valuable AI assets and AI growth angle,” according to the South China Morning Post.

UBS expects cloud revenue growth of about 45% and annual recurring revenue from AI model services of roughly 10 billion yuan.

Morgan Stanley analyst Gary Yu is bullish. TipRanks reported that Yu expects cloud growth of about 45% year on year, ahead of market expectations, with margins improving towards 11%.

However, Cloud remains smaller than Alibaba’s commerce operations, leaving the company exposed to China’s subdued consumer backdrop.

JD.com offered a reminder when its quarterly revenue fell 2.9% year on year, its first decline in more than a decade, despite beating analyst expectations.

Yu has flagged pressure in Alibaba’s core e-commerce business from soft consumption.

Citi analyst Alicia Yap expects weaker customer-management revenue after subdued retail sales and the 6.18 shopping festival.

Yap expects cloud revenue to grow about 45%, with cloud margins reaching roughly 11.5%. She also sees smaller quick-commerce losses and stronger cloud profitability helping offset weaker retail trends.

That is the earnings tension investors must resolve. Cloud is growing far faster than commerce, but commerce remains larger.

Alibaba therefore needs AI growth to become visible in group profits, not simply in headline growth percentages.

Alibaba has missed EPS expectations in four consecutive quarters, making another respectable report unlikely to reset sentiment on its own.

Investors will be watching three areas: whether cloud growth reaches the roughly 45% level expected by major brokers, whether cloud margins improve as AI demand scales, and whether quick-commerce losses continue narrowing.

Barclays has positioned for upside. The bank recommended call spreads ahead of earnings, citing accelerating cloud growth, AI recurring revenue exceeding targets, faster improvement in quick-commerce losses and stabilising core-commerce profitability.

The options market was pricing an earnings move of about 6%, below Alibaba’s six-quarter average realised move of 7.6%.

The second quarter of 2026 was not kind to United Wholesale Mortgage (UWMC +3.47%). It posted a massive quarterly loss, eliminated its dividend, and got a cash infusion from Oaktree Capital. This is not a stock that risk-averse investors should be considering. And even more aggressive investors might want to tread with caution. And yet, United Wholesale Mortgage remains an industry giant in the mortgage space.

How bad was the second quarter? United Wholesale Mortgage posted a loss of $451.9 million in the second quarter. That was down from net income of $170.4 million in the first quarter and $314.5 million in the second quarter of 2025. Clearly not a good showing. Notably, loan originations were down sequentially from the first quarter and flat year over year. A big part of the problem is the weak housing market and rising interest rates, both of which work against the company.

Image source: Getty Images.

And yet, the company remains one of the largest mortgage loan originators in the United States. A key part of its business is that it doesn't deal directly with customers; instead, it provides mortgage brokers with the tools they need to make loans. Further, the company generally retains mortgage servicing rights to the loans that it eventually packages into bond-like securities and sells. Those servicing rights generate reliable cash flows. In some ways, the business model is appealing.

But that doesn't change the fact that the operating environment today is difficult. Notably, rising rates depress the value of mortgage servicing rights and mortgage loans, and reduce the volume of new loan originations. This helps explain the weak first quarter and the company's need to raise over $2 billion in capital from Oaktree Capital and SFS Group Capital. SFS Capital is a new investment vehicle created by the Ishbia Family. The CEO of United Wholesale Mortgage is Mat Ishbia, so there's an important connection here.

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Given the cash infusion and weak financial results, the company had little choice but to stop paying dividends. The stock, as you might expect, has been performing poorly, trading near its 52-week lows. This could realistically be a make-or-break situation. If the company can muddle through this rough patch, it could turn things around over the longer term. If it continues to struggle despite the financial backstop, buying the stock amid today's uncertainty could be a costly mistake.

Most investors should watch from the sidelines The risk-versus-reward balance with United Wholesale Mortgage is tilted toward risk right now. Only the most aggressive investors should consider it. To be fair, Oaktree Capital is a highly respected business partner. And the CEO is putting their money where their mouth is, given the CEO's family's involvement in the cash infusion. However, being a large mortgage lender in a weak housing market amid rising interest rates has clearly stretched the company's finances. The company is likely to struggle until the industry backdrop improves.

California American Water's proposal is rooted in multiple years of strong water storage through Aquifer Storage and Recovery and continued regulatory progress on the desalination project

, /PRNewswire/ -- Today, California American Water submitted written testimony to the State Water Resources Control Board (Water Board) regarding the Monterey Peninsula Water Management District's (District) application to modify the cease-and-desist order limiting new water connections on the Monterey Peninsula.

"California American Water shares the District's goal of a thriving Peninsula and welcomes the opportunity to chart a responsible path toward easing these restrictions without threatening existing water supplies," said Sarah Leeper, president of California American Water. "Successful expansion of Aquifer Storage and Recovery, coupled with continued regulatory progress on the desalination project, means Monterey Peninsula is on a path toward better water security, and we can support a temporary suspension of the moratorium on new water connections to allow more flexibility for the community while maintaining key protections for the Carmel River."

The Water Board instated the cease-and-desist order in 2009, banning new water connections until sufficient new water sources could be developed to reduce Carmel River pumping. While the pause on new connections has supported the recovery of the Carmel River watershed and its steelhead population, it has also stunted the Monterey Peninsula's ability to build affordable housing, grow businesses and develop its economy for nearly two decades.

The importance of adding long-term water supply was underscored last summer when the California Public Utilities Commission unanimously confirmed that Monterey could face an annual shortfall of 815 million gallons by 2050. To mitigate this projected water supply shortage, California American Water continues to focus on the three-part Monterey Peninsula Water Supply Project – which includes the Aquifer Storage and Recovery project, water recycling and desalination. Each offers unique benefits to the region; however, desalination is the only solution that will bring the Monterey Peninsula the new, drought-proof supply it needs to reduce reliance on the Carmel River and support future demand.

"Any modification to the cease-and-desist order must consider Monterey Peninsula's unique water supply constraints, and we urge a cautious and strategic approach until Monterey has a permanent, drought-resilient water supply," continued Leeper. "If the order is lifted without the appropriate guardrails, the subsequent increase in demand could cause challenges during future droughts, putting decades of Carmel River restoration at risk."

The public will have an opportunity to provide public comment to the Water Board on November 5, 2026.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 19 military installations. American Water's approximately 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About California American Water

California American Water, a subsidiary of American Water with approximately 300 dedicated employees, provides safe, clean, reliable and affordable water and wastewater services to approximately 720,000 people.

SOURCE American Water

BERKELEY, Calif., Aug. 19, 2026 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) ("Rigetti"), a pioneer in full-stack quantum computing, today announced a new operating structure designed to scale deployment of on-premises quantum systems, strengthen end-to-end operational execution, and further focus its engineering resources on quantum processor development.

Rigetti is establishing a dedicated Systems Delivery organization and creating the role of Chief Operating Officer to lead manufacturing operations, systems delivery, commercial functions, and customer-facing engineering. Quantum processor architecture, chip development, and hardware engineering will be consolidated under the Chief Technology Officer.

The Company has seen increased demand for customer deployments of on-premises systems, ranging from 9-qubit Novera systems to large-scale 108-qubit Cepheus-class systems. Historically, installation and customer support activities have been supported within the engineering organization. The new structure creates dedicated leadership and resources for system deployment and customer success, while enabling engineering teams to concentrate on advancing processor performance and the Company's published technology roadmap, including its target of 99.5% median two-qubit gate fidelity on Cepheus-1-108Q.

David Rivas, who has served as Rigetti’s Chief Technology Officer since February 2023, has been appointed Chief Operating Officer. In this newly created role, Rivas will oversee fabrication operations, systems delivery, software engineering, applications, business development, government programs, supply chain, and facilities.

Andrew Bestwick, Ph.D., currently Senior Vice President, Quantum Systems, has been appointed Chief Technology Officer. Dr. Bestwick has led the architecture of Rigetti's Cepheus-class multi-chip systems and will oversee quantum processor development, chip fabrication development, and hardware engineering. The technology organization will remain Rigetti’s largest engineering organization, underscoring the Company's continued focus on advancing processor performance and executing its technology roadmap.

Both executives report to Rigetti’s President and Chief Executive Officer Dr. Subodh Kulkarni. The appointments are effective August 18.

"Rigetti’s growing deployment activity makes this the right time to establish a dedicated organization focused on delivering and supporting systems for customers," said Dr. Kulkarni. "This structure gives our commercial and operational teams clear, end-to-end accountability for scaling system delivery, while giving our technology organization even greater focus on quantum processor innovation and performance. David brings deep experience building the operational capabilities that support our systems and customers, and Andrew brings exceptional technical leadership to our chiplet-based architecture. Together, we believe these appointments position Rigetti to execute across both customer deployments and our technology roadmap."

About David Rivas

David Rivas joined Rigetti in March 2019 as Senior Vice President of Systems and Services, where he oversaw the engineering and operations of Rigetti's Quantum Cloud Services platform, and was appointed Chief Technology Officer in February 2023. He previously held executive positions at Sun Microsystems, Nokia, Bolt Threads, and Stage 3 Systems, including leadership of field engineering and services organizations of product management, and core engineering organizations. He holds a B.S. in electrical engineering and an M.S. in electrical engineering from the University of California, San Diego.

About Andrew Bestwick

Andrew Bestwick, Ph.D., joined Rigetti in August 2015 and has held technical and leadership positions spanning chip fabrication, circuit design, cryogenic RF hardware engineering, and system architecture. He was appointed Senior Vice President, Quantum Systems in January 2024. He previously worked in management consulting at Bain & Company. He holds an A.B. in physics and mathematics from Harvard University and a Ph.D. in physics from Stanford University.

About Rigetti

Rigetti is a pioneer in full-stack quantum computing. Rigetti quantum computers are based on superconducting qubits, which are widely believed to be the leading qubit modality given their maturity, clear path to scaling, and fast gate speeds. Rigetti quantum computing systems achieve gate speeds of 50-70 nanoseconds, which is about 10,000 times faster than trapped-ion systems and 100 times faster than neutral-atom systems.

Rigetti sells on-premises 9-qubit to 108-qubit quantum computing systems, which support national laboratories and quantum computing centers. Rigetti’s Cepheus 36-qubit to 108-qubit systems are based on the Company’s proprietary chiplet-based technology and include the Company’s control electronics. Rigetti’s 9-qubit Novera QPU supports a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems.

The Company operates quantum computers over the cloud through its Rigetti Quantum Cloud Services (QCS) platform, enabling global enterprise, government, and research clients to pursue R&D. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing.

Rigetti developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. Leveraging this proprietary technology, Rigetti deployed the industry’s largest multi-chip quantum computer in 2026 with Cepheus-1-108Q, based on twelve 9-qubit chiplets tiled together. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at https://www.rigetti.com/.

Contacts

Rigetti Computing Investor Contact:
[email protected]

Rigetti Computing Media Contact:
[email protected]

Cautionary Language and Forward-Looking Statements

Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s expectations with respect to its future success and performance, including the design of the Systems Delivery organization to scale deployment of on-premises quantum systems, strengthen end-to-end operational execution, and further focus its engineering resources on quantum processor development; the advancement of processor performance and the Company's published technology roadmap; the target of 99.5% median two-qubit gate fidelity on Cepheus-1-108Q; and the belief that these appointments position Rigetti to execute across both customer deployments and our technology roadmap. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; Company’s ability to deliver products to customers in time or at all, including actions by customers, such as controls over their facilities and cancelling orders; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the success of the Company’s partnerships and collaborations; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare, and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and other documents filed by the Company from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

Nordson (NDSN - Free Report) came out with quarterly earnings of $3.25 per share, beating the Zacks Consensus Estimate of $3.09 per share. This compares to earnings of $2.73 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.18%. A quarter ago, it was expected that this maker of adhesives and industrial coatings would post earnings of $2.82 per share when it actually produced earnings of $2.86, delivering a surprise of +1.42%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Nordson, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $817.67 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 4.96%. This compares to year-ago revenues of $741.51 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Nordson shares have added about 26.5% since the beginning of the year versus the S&P 500's gain of 12.4%.

What's Next for Nordson?While Nordson has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Nordson was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.33 on $792.5 million in revenues for the coming quarter and $11.59 on $2.98 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Industrial Products sector, Core & Main (CNM - Free Report) , is yet to report results for the quarter ended July 2026.

This distributor of water and fire protection products is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +6.9%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level.

Core & Main's revenues are expected to be $2.14 billion, up 2.3% from the year-ago quarter.

Bill Holdings Inc. (NYSE:BILL) posted its fourth-quarter results after Wednesday’s closing bell, beating estimates on the top and bottom lines. Here’s a look at the details inside the report. 

BILL stock is moving. Watch the price action here. Bill Holdings reported quarterly earnings of 84 cents per share, which beat the consensus estimate of 70 cents by 18.3%.

Quarterly revenue came in at $436.19 million, which beat the Street estimate of $430.55 million.

Bill reported the following quarterly highlights:

Served 479,300 businesses using BILL solutions as of the end of the fourth quarter. Processed $98 billion in total payment volume in the fourth quarter, an increase of 14% year-over-year. Processed 37 million transactions during the fourth quarter, an increase of 14% year-over-year. Core revenue, which consists of subscription and transaction fees, was $400.5 million, an increase of 16% year-over-year. Subscription fees were $76.2 million, up 11% year-over-year. Transaction fees were $324.3 million, up 17% year-over-year. Float revenue, which consists of interest on funds held for customers, was $35.7 million. “Our results for the year demonstrate the durability of our business. We continue to see strong demand for BILL’s integrated platform, with increasing adoption of our AI capabilities,” said René Lacerte, BILL CEO and founder.

Looking AheadBILL expects fiscal 2027 adjusted EPS of $3.56 to $3.79, versus the $3.35 analyst estimate, and revenue in a range of $1.81 billion to $1.86 billion, versus the $1.85 billion estimate.  

Read Next

BILL Stock Price Activity: According to data from Benzinga Pro, Bill stock was up 1.17% to $48.27 in Wednesday’s extended trading.  

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Key Takeaways D-Wave trails peers after Q2 as revenues fell short and bookings dropped sharply from the prior quarter.D-Wave has $40.7M in RPO, planned 2026 system deliveries and growing production applications.QBTS carries a lofty valuation, while analysts see 71% upside if bookings convert into revenue growth. D-Wave Quantum (QBTS - Free Report)  has gained just 0.6% since its Aug. 6 second-quarter earnings report, trailing IonQ (IONQ - Free Report) , Rigetti (RGTI - Free Report) and the S&P 500, as investors appear to be prioritizing near-term financial execution over D-Wave’s long-term technology milestones. The disconnect is evident in the company’s second-quarter revenues, essentially flat year over year and 19.5% below the Zacks Consensus Estimate, while adjusted EBITDA loss widened to $37.1 million.

More importantly, second-quarter bookings were only $2.1 million after a $33.4 million first-quarter haul, indicating the lumpiness of demand despite first-half bookings surging 1,120% to $35.5 million.

Stock Comparison Since QBTS’ Q2 Earnings Announcement
Image Source: Zacks Investment Research

Still, the outlook is improving with $40.7 million of RPO, 57% expected to convert within 12 months, two system deliveries planned for 2026, and production applications already generating 37.3% of first-half QCaaS revenues, providing potential catalysts.

Meanwhile, stronger U.S. policy support for quantum commercialization and domestic supply chains adds a favorable backdrop. The key near-term test is whether bookings convert into revenue and commercial deployments fast enough to justify elevated spending.

Q3 & 2026 Revenue, EPS EstimatesThe Zacks Consensus Estimate for the third quarter of 2026 is pegged at $3.95 million, a 5.7% improvement over the year-ago reported number, with a loss per share expectation of 7 cents (narrower than the year-ago 41 cents of loss), suggesting that the impact of D-Wave’s strong bookings is unlikely to be fully reflected in the near-term results.

For full-year 2026, the Zacks Consensus Estimate for revenue is pegged at $38.63 million, a 57.1% improvement over the 2025 reported number. The projected EPS loss narrows to 28 cents from $1.11 in 2025. The estimates therefore place considerable weight on second-half execution, particularly the conversion of bookings, RPO and planned system deliveries into recognized revenue.

Image Source: Zacks Investment Research

Technical AnalysisGoing by the technical picture, QBTS trades below both its 50-day and 200-day simple moving averages (SMAs). Moreover, the 50-day average remains below the 200-day average, offering no strong technical confirmation of a potential trend reversal. The chart indicates that the market remains cautious despite D-Wave’s improving bookings, RPO and commercial pipeline.

50-200-Day SMAs
Image Source: Zacks Investment Research

Lofty ValuationDespite its commercial momentum, QBTS continues to trade at a lofty valuation relative to its current revenue base. The stock is currently trading at a 12-month Price/Sales ratio of 110.17X, compared with approximately 5X for the S&P 500. Its three-year median P/S ratio stands at 87.89X, also well below the current multiple. This implies that the stock already carries substantial growth expectations, leaving limited room for execution disappointments.

Image Source: Zacks Investment Research

But Price Target is HighWith the short-term average price target of $35.79 implying 71.49% upside from the last close of $20.87, the consensus suggests that, despite the stock’s recent weakness and elevated valuation, analysts see substantial room for appreciation as D-Wave converts its strong bookings and commercial pipeline into revenue growth.

Image Source: Zacks Investment Research

Why Hold QBTS NowInvestors may prefer to hold QBTS rather than book profits or initiate fresh positions, as the stock’s strong commercial pipeline and 71% analyst-implied upside offer meaningful potential, while its lofty valuation and weak technical setup warrant caution. The company’s ability to convert bookings into revenue remains the key catalyst. Accordingly, Zacks Rank #3 (Hold) supports a wait-and-watch approach until execution improves. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Klarna Group plc (KLAR) Q2 2026 Earnings Call August 18, 2026 8:30 AM EDT

Company Participants

Sebastian Siemiatkowski - Co-Founder, CEO & Director
Niclas Neglen - CFO & Director

Conference Call Participants

William Nance - Goldman Sachs Group, Inc., Research Division
Robert Wildhack - Autonomous Research US LP
Harshita Rawat - Bernstein Institutional Services LLC, Research Division
James Faucette - Morgan Stanley, Research Division
Bryan Keane - Citigroup Inc., Research Division
Connor Allen - JPMorgan Chase & Co, Research Division
Jason Kupferberg - Wells Fargo Securities, LLC, Research Division
Andrew Bauch - BMO Capital Markets Equity Research
Matthew O'Neill - BofA Securities, Research Division
Harry Bartlett - Rothschild & Co Redburn, Research Division
Kyle Peterson - Needham & Company, LLC, Research Division
Thomas Nilsson - Nordea Markets, Research Division
Moshe Orenbuch - TD Cowen, Research Division
Giuliano Anderes-Bologna - Compass Point Research & Trading, LLC, Research Division
Lemar Clarke

Presentation

Operator

Hello, everyone, and welcome to Klarna's Second Quarter 2026 Earnings Call. During this call, we will discuss our business outlook and make forward-looking statements. These statements are based on our current expectations and assumptions as of today. Actual results may differ materially due to various risks and uncertainties, including those described in our most recent filings with the SEC.

During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website as well as filed with the SEC. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period in 2025. [Operator Instructions]

Before we move to Q&A, we will begin with a brief presentation. Sebastian, please go ahead.

Sebastian Siemiatkowski
Co-Founder, CEO & Director

Good morning, everyone, and thank you for joining. This was a good quarter. We delivered above

Uber (UBER.N), Verne and Pony.ai (PONY.O) said on Wednesday they had launched autonomous rides in Zagreb, making the Croatian ​capital the first European city where ‌users can book a self-driving vehicle through Uber's app.

Here are more details:

Currently, riders can book ​robotaxis in key areas in ​Zagreb, including the city center, with service ⁠availability and geographic coverage expected to ​expand over time, the companies said.

During the initial ​phase, a licensed operator will be on board to monitor the vehicle as the companies ​work toward fully autonomous operations, they ​said.

Chinese robotaxi firm Pony.ai provides the autonomous driving technology, while Croatian startup ‌Verne ⁠serves as the fleet owner and service operator and Uber integrates the service into its ride-hailing platform.

The launch advances ​the partnership announced ​in ⁠March, with the companies planning to expand the service to ​additional European cities.

Riders can book ​the ⁠service by requesting a UberX or Comfort ride through the Uber app, which ⁠will ​show vehicle details and ​instructions when a self-driving car is available.

In the second quarter of 2026, SpaceX's (SPCX -2.57%) revenue surged 92% year over year to $7.8 billion, and it narrowed its net loss from $1.01 billion to $541 million. However, its total capex surged more than sixfold year over year, from $2.83 billion to $18.37 billion. It allocated $15.8 billion of that capex to expanding its AI business. Let's see where all that money went.

Image source: Getty Images.

What AI investments did SpaceX make? SpaceX originally operated two main businesses: its Starlink satellite internet services and its rocket launch services. But in Feb. 2026, it acquired xAI -- which owns Grok, X, and its other AI assets -- in an all-stock transaction to form its new AI business. It also acquired the AI start-up Cursor earlier this month. Elon Musk believes its AI revenue will jump from $3.5 billion in 2025 to $700-$750 billion in 2030.

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To sow the seeds for that expansion, SpaceX spent most of its second-quarter capex on Nvidia's (NVDA -0.99%) data center GPUs and other AI accelerators. The rest was used to deploy, acquire, and build more high-power data centers to increase its active capacity from 1.4 GW today to its target of 10 GW by next year.

That would give it a lot more bandwidth to handle its multi-billion-dollar compute hosting contracts with external enterprise clients. However, the expansion of that unprofitable AI business could offset Starlink's profits and keep its bottom line in the red.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Chevron (CVX +0.88%), one of the world's largest integrated energy companies, is often considered a boring stock. It's not as exposed to the AI-driven energy boom as natural gas and nuclear companies, and it pays a lower dividend than many top midstream companies.

But over the past 30 years, Chevron has delivered a total return (including reinvested dividends) of 1,940%, beating the S&P 500's 1,890% return. It pays a forward yield of 3.5%, has raised its dividend annually for 39 consecutive years, and will become a Dividend King if it maintains that streak for 50 years. Its low trailing payout ratio of 67% gives it ample room for future hikes. Let's see why Chevron could still be a great income play for long-term investors.

Image source: Getty Images.

Why is Chevron a well-rounded stock? Chevron owns upstream extraction and downstream refining businesses. It also operates midstream pipelines, but that's a "captive" business that only connects its own upstream and downstream businesses rather than serving other energy companies.

When oil prices rise, upstream businesses flourish as their revenue growth outpaces their expenses, but downstream businesses often struggle with higher input costs. But when oil prices decline, downstream businesses usually fare better than upstream ones.

Chevron's scale and diversification across both markets make it a more well-rounded energy company than stand-alone upstream, midstream, and downstream companies. It has a presence in 180 countries, but it gets most of its oil from the U.S., Kazakhstan, and Australia rather than the Middle East. That geographic diversification insulates it from geopolitical conflicts.

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Why does Chevron have plenty of upside potential? Most of Chevron's recent earnings growth has been driven by higher oil prices. Those prices could pull back if the Iran war ends, but Chevron only needs the price of Brent crude (currently at $88 per barrel) to stay above $50 per barrel to cover its capex and dividends through 2030.

Chevron expects to boost its oil and gas production by 2%-3% annually through 2030, as it upgrades its main field in the Permian Basin, expands its overseas operations in Kazakhstan, Australia, and Guyana, and launches new deepwater projects in the Gulf of Mexico. To offset that spending pressure, it will reduce its structural costs by up to $4 billion by the end of 2026.

Analysts expect Chevron's adjusted EPS to more than double to $15.72 this year, easily covering its forward dividend rate of $7.12 per share. At $207, it looks like a bargain at 13 times this year's adjusted earnings -- so it's still a safe stock to buy in this turbulent market.

Coty (COTY.N) on Wednesday posted a surprise increase in fourth-quarter revenue on resilient demand for fragrances and cosmetics, ​and said it has appointed former British American Tobacco (BATS.L) finance chief Soraya Benchikh ‌as CFO.

Shares of the beauty company were down about 9% in extended trading after it posted a wider-than-expected quarterly loss, although it said fiscal 2027 would be a "transition year".

The company is advancing ​its "Coty. Curated." strategy to simplify its business and conducting a review of ​the consumer beauty division.

The review, expected to complete by year-end, could lead to the sale ⁠of brands such as CoverGirl and Rimmel.

The company said the CFO change ​was part of organizational changes it unveiled in early July under its "Coty. Curated" ​strategy.

Benchikh had also served as president, Europe at Diageo, and is replacing Laurent Mercier, who served as Coty's finance chief for about five years.

The initiative, along with a cost-reduction program, ​would help offset a likely sales hit in fiscal 2028 from its ​early return of Gucci Beauty license to Kering (PRTP.PA), Coty said.

Coty's net revenue rose 1.3% to $1.27 billion ‌in ⁠the quarter ended June 30, compared with analysts' average estimate of a 4.6% decline, according to data compiled by LSEG.

"Consumer demand for beauty remains resilient, with continued growth in fragrances and cosmetics, although consumers are becoming increasingly selective in ​their purchasing decisions," the ​company said.

Coty said it ⁠saw a roughly 1% impact from the Middle East conflict, which was less severe than the 2% to 3% hit it forecast ​in May.

Quarterly adjusted loss per share narrowed to 2 cents ​from ⁠5 cents a year ago, but was wider than analysts' expectation of a 1-cent loss.

Peers Estee Lauder (EL.N) and Elf Beauty (ELF.N) recently forecast a stronger year ahead on steady demand ⁠for beauty ​products.

Coty, which did not provide annual forecasts, ​expects like-for-like revenue in the current quarter to decline by a low- to mid-single-digit percentage, compared with ​an 8% drop last year.

Wolfspeed Inc (NYSE:WOLF) posted mixed fourth-quarter results after Wednesday’s closing bell, missing the Street’s revenue estimate. Here’s a look at the details inside the report. 

WOLF stock is moving. Watch the price action here. Wolfspeed Q4 Details     Wolfspeed reported a quarterly adjusted loss of $2.26 per share, which beat the consensus estimate for losses of $2.45, according to Benzinga Pro data.

Quarterly revenue came in at $149.6 million, which missed the $224.48 million Street estimate.

“We continued to expand our device business, highlighted by strong growth in AI data center applications and the launch of our fifth-generation SiC MOSFET. These achievements strengthen our technology leadership and confidence in our long-term growth opportunities,” said Wolfspeed CEO Robert Feurle.

Looking AheadWolfspeed expects first-quarter revenue in a range of $140 million to $160 million, versus the $150.4 million analyst estimate.

Read Next

WOLF Stock Price Activity: According to data from Benzinga Pro, Wolfspeed stock was down 6.33% to $27.25 in Wednesday’s extended trading.  

Photo: Shutterstock

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ROCHESTER, N.Y., Aug. 19, 2026 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading U.S.-based total beverage alcohol company, today announced an incremental $100 million investment over the next five years to support U.S. farmers in Idaho, Montana, and North Dakota, reinforcing the company’s long-term commitment to American agriculture and the vital role it plays in sustaining America’s iconic beer industry. The investment includes incremental purchases from American farmers and initiatives designed to help strengthen the future of these U.S. farming communities.

This investment reflects the company’s continued commitment to U.S. farmers as they face sustained pressure from declining acreage, shifting demand, rising input costs, and weather-related challenges that have made it harder for many growers to maintain and expand their businesses. Barley, corn, and hops remain essential to the American beer industry and its extensive and multifaceted supply chain inclusive of U.S. farmers, maltsters, brewers, distributors, retailers, transportation and logistics partners, and local communities across the country.

As part of this investment, Constellation Brands will partner with growers in Idaho, Montana, and North Dakota to identify opportunities that help sustain their farming operations for the long term. The company is establishing Constellation’s Farmers Future, a grower-led advisory committee that will bring together farmers, trade groups, and community leaders to help inform investments intended to strengthen agricultural resilience and the domestic agricultural supply chain.

“U.S. barley, corn, and hops farmers are an essential part of the American economy and foundational to our business,” said Nicholas Fink, President and Chief Executive Officer of Constellation Brands. “Their work supports communities, drives economic activity across the supply chain, and makes it possible for our products to reach consumers across the country. We have deep respect for the persistence and expertise of these growers, especially after several challenging years for American farming, and we remain committed to continuing to support this foundational part of our supply chain.”

Constellation Brands already invests more than $750 million annually with American farmers and suppliers, including purchasing approximately 80% of all U.S. barley exports. This commitment is part of the company’s broader economic impact in the U.S., where it invests more than $4.2 billion annually in employee wages, capital expenditures, and U.S. taxes. The company’s operations also support more than 100,000 American jobs across its supply chain.

As part of this initiative, Constellation Brands will partner with growers and agricultural partners to determine how its investment can help support farm resiliency, market access, sustainability, and the continued economic vitality of farming communities in key producing states.

"Idaho is proud to be one of the top barley-producing states in the nation, and this investment from Constellation Brands is great news for our farmers and rural communities. Our growers work hard every day to supply the barley that fuels a critical American industry. This kind of long-term partnership recognizes their contribution to Idaho and the U.S. economy,” said Idaho Governor Brad Little (R-ID).

“North Dakota has a long and proud history as a barley-growing powerhouse, and we appreciate Constellation Brands investing in our farmers so they can continue to play a pivotal role in the U.S. beverage industry well into the future,” said North Dakota Governor Kelly Armstrong (R-ND).

“Idaho is the nation’s leading producer of barley, and it is an important part of our state’s agricultural economy. An investment in Idaho barley is an investment in thousands of Idaho jobs and a commitment to American-grown crops. I commend this good news for Gem State growers,” said Idaho Senator Mike Crapo (R-ID).

"Idaho's barley farmers are an important anchor in our agricultural economy and communities. This investment will support jobs and keep costs low for farmers across the Gem State as they help to feed the world,” said Idaho Senator Jim Risch (R-ID).

"Montana's barley farmers are the backbone of our agricultural economy. This announcement comes at a critical time for our growers, and it shows what's possible when American companies invest in American farmers. I appreciate Constellation Brands' commitment to Montana and the Trump administration's continued focus on strengthening U.S. agriculture,” said Montana Governor Greg Gianforte (R-MT).

"Ag is Montana’s top industry, and the hard work of our farmers and ranchers puts food on the table for millions of families across the country and around the world. The future of Montana relies heavily on our ag community, and investments like this will be critical to protect and promote Montana agriculture,” said Montana Senator Steve Daines (R-MT).

“Montana’s farmers feed America, support good-paying jobs, and keep our rural communities strong. This investment is a major vote of confidence in Montana barley growers and will help family farms stay competitive and pass their operations on to the next generation. I’m proud to see Constellation Brands doubling down on Montana agriculture,” said Montana Senator Tim Sheehy (R-MT).

“North Dakota is a leading producer of barley, with our farmers producing more than 28 million bushels last year. We appreciate this $100 million, five-year investment in North Dakota and the surrounding states’ barley industries. Our barley production is integral to the U.S. brewing industry and this investment will benefit both of these important industries,” said North Dakota Senator John Hoeven (R-ND), Chairman of the Senate Agriculture Appropriations Committee.

“North Dakota is a leader in American barley and corn production, and today’s announcement from Constellation Brands is a long-term investment in the farmers who make that success possible. Our grain growers strengthen our national agricultural economy and supply chains, and they deserve the support to keep their farms resilient and sustainable,” said North Dakota Senator Kevin Cramer (R-ND). 

“Montana's farmers are the best in the world, and they deserve strong partners who are willing to invest in their future. I appreciate Constellation Brands’ continued commitment to Montana barley growers. Investments like this strengthen our agricultural economy and create more certainty for the producers who keep it moving,” said Montana Congressman Troy Downing (R-MT).

“Thank you to Constellation for their recognition of and investment in Montana agriculture. Montana farmers grow some of the best products available. This expansion will build on the already strong ag economy and further strengthen our ag security. Bravo Zulu to all,” said Montana Congressman Ryan Zinke (R-MT).

“I’m thrilled to see the $100 million investment supporting American barley farmers and strengthening the supply chain. As the nation’s leading barley-producing state, Idaho growers are powering our economy. I’m excited to celebrate this great news with barley growers nationwide,” said Idaho Congressman Mike Simpson (R-ID).

“I’m thrilled to see Constellation Brands expanding its commitment to American agriculture through increased support for barley, hops, and corn farmers across Idaho, Montana, and North Dakota. Idaho is a leading producer of these vital crops, and this initiative will further strengthen our agricultural sector, give growers a greater voice, and support farming communities across our state,” said Idaho Congressman Russ Fulcher (R-ID).

“This announcement helps deliver exactly what our farmers are asking for: more local markets. North Dakota’s barley, corn, and hops growers are proud to produce a quality product that is used and enjoyed right here in our own country. This is very welcome news from Constellation Brands right as producers are harvesting their fields. Thank you,” said North Dakota Congresswoman Julie Fedorchak (R-ND).

“Constellation Brands current and future support for our agricultural community comes at a critical time. Our sustainable future depends on committed partners, innovative products and new markets for American farmed barley and wheat, inside and outside of the U.S. We appreciate the continued steadfast support of Constellation Brands in support of our growers and look forward to working with them and other great companies who support our future,” said the Idaho Barley Commission, Montana Wheat and Barley Committee, and the North Dakota Barley Council in a joint statement.

“Strong markets and committed end users are critical to the future of U.S. barley production. We welcome continued investment in American barley growers and appreciate Constellation Brands’ commitment to engaging producers as these initiatives are developed. Investments that expand opportunities for U.S. grown barley and strengthen our rural communities are important to the long-term success of our growers,” said the Montana Grain Growers.

ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ), a U.S. headquartered company, is a leading producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It's worth our dedication, hard work, and calculated risks to anticipate market trends and deliver for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what's next. 

Every day, people reach for brands from our high-end, imported beer portfolio anchored by the iconic Corona Extra and Modelo Especial, a flavorful lineup of Modelo Cheladas, and favorites like Pacifico, and Victoria; our exceptional wine brands including The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca; and our craft spirits brands such as Mi CAMPO Tequila and High West Whiskey. 

As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our strategy is embedded into our business, and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For. 

To learn more, visit www.cbrands.com and follow us on LinkedIn and Instagram.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The word “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements may relate to business strategy, future operations, prospects, plans, and objectives of management, including the amount, timing, beneficiaries, and results of the investment to support U.S. farmers and agricultural partners, including planned purchases, initiatives, and opportunities to help sustain farming operations, the company’s continuing commitment to U.S. farmers and American agriculture, the establishment and goals of Constellation’s Farmers Future grower-led advisory committee, and the role and contributions of U.S. farmers and agricultural partners in the U.S. beverage industry, as well as information concerning expected actions of third parties. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements.

The forward-looking statements are based on management’s current expectations and should not be construed in any manner as a guarantee that any of the events anticipated by the forward-looking statements will in fact occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release and Constellation Brands does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

In addition to risks and uncertainties associated with ordinary business operations, the forward-looking statements contained in this news release are subject to other risks and uncertainties, including the accuracy of all projections and other factors and uncertainties disclosed from time-to-time in Constellation Brands’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 28, 2026, which could cause actual future performance to differ from current expectations.

A downloadable PDF copy of this news release can be found here:
http://ml.globenewswire.com/Resource/Download/fa769f6c-5589-4af2-b6c4-809d16979609

For well over a year, Bloom Energy (BE -1.14%) has been one of the energy sector's top-performing stocks.

And for no small reason: The solid oxide fuel cell maker's energy systems -- sleek grey boxes that generate power on-site -- allow data centers to sidestep what could be a years-long wait to connect to the grid.

Bloom calls this its "time-to-power" advantage. Indeed, Bloom can make an energy system operational within 90 days, so it claims, and its deployment of a system for Oracle (ORCL +0.71%) within 55 days is testimony to how fast it can move. Few companies can deliver on-site power generation as fast as Bloom -- and a new deployment system could make that time advantage even stronger.

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Bloom is moving electrical work into the factory. Bloom's energy technology is pretty ingenious. Inside the box, Bloom's fuel cells use an electrochemical reaction to oxidize a fuel, such as natural gas, thereby releasing electrons. Those electrons then flow through an external circuit, generating an electric current. That current is then converted into usable electricity and delivered to a customer's facility.

These boxes are mass-produced in factories and shipped to clients for on-site installation. The installation phase, when the systems are wired and integrated, can involve extensive work and, therefore, considerable time. It follows, therefore, that if Bloom can reduce installation time, it could potentially deliver power to its clients faster.

And that's exactly what Bloom is doing.

On Aug. 19, 2026, it announced a new deployment system, "Power Connect." Unlike Bloom's current process, this one arrives "pre-connected, pre-wired, tested and ready for installation." Bloom believes the new system can cut onsite power installation time by over 40%. That makes an already speedy process that much faster.

Image source: Bloom Energy.

A faster installation process could help clear one of Bloom's bottlenecks. As I've written about before, Bloom's biggest problem isn't demand. In fact, it's the opposite problem: It has too much demand. As CEO K.R. Sridhar put it in Bloom's second-quarter earnings call, Bloom's "backlog [is] growing at a faster pace than revenue." That's not a bad problem to have, but it does create some limit on how quickly Bloom can turn its project backlog into revenue.

Power Connect could, in this sense, help speed up the process tremendously. Under the old model, Bloom had to rely on skilled electricians to install energy systems. This is a problem because skilled electricians are in short supply across the U.S. By moving electrical work into the factory, Bloom can potentially scale its deployments without having to scale its installation workforce. It reduces a potential bottleneck, and, as a result, could put more servers in operation in a shorter time.

Don't miss that last point. A shorter deployment time is great for clients, but it's also great for Bloom: It means Bloom can convert more of its roughly $20 billion backlog into sales. Likewise, it could improve its installation margin by shifting electrical work into the factory, which could lower installation costs.

Bloom has been a market favorite: It's more than quadrupled over the past year, and it now trades at roughly 270 times its trailing earnings. That's not cheap by any measure. That said, if Power Connect allows Bloom to work through its backlog faster, while also reducing installation costs, today's lofty valuation could be easier to justify. I think it makes Bloom a compelling buy, albeit one I'd approach with patience, given how much future growth is already priced in.

Toll Brothers, Inc. (TOL) Q3 2026 Earnings Call August 19, 2026 8:30 AM EDT

Company Participants

Douglas Yearley - Executive Chairman
Karl Mistry - CEO & Director
Gregg Ziegler - Executive VP & CFO
Seth Ring - COO & President

Conference Call Participants

John Lovallo - UBS Investment Bank, Research Division
Stephen Kim - Evercore ISI Institutional Equities, Research Division
Alan Ratner - Zelman & Associates LLC
Michael Dahl - RBC Capital Markets, Research Division
Rafe Jadrosich - BofA Securities, Research Division
Richard Reid - Wells Fargo Securities, LLC, Research Division
Trevor Allinson - Wolfe Research, LLC
Jay McCanless - Citizens JMP Securities, LLC, Research Division
Ryan Gilbert - BTIG, LLC, Research Division
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Alex Barrón - Housing Research Center, LLC
Matthew Bouley - Barclays Bank PLC, Research Division
Jason Sabshon - Keefe, Bruyette, & Woods, Inc., Research Division

Presentation

Operator

Good morning, and welcome to the Toll Brothers Third Quarter Fiscal Year 2026 Conference Call. [Operator Instructions] The company is planning to end the call at 9:30 when the markets open. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Doug Yearley, Executive Chairman. Please go ahead.

Douglas Yearley
Executive Chairman

Thank you, Betsy. Good morning. Welcome, and thank you all for joining us. With me today are Karl Mistry, Chief Executive Officer; Gregg Ziegler, Chief Financial Officer; and Seth Ring, President and Chief Operating Officer. During today's call, I will provide a brief overview of our third quarter results and current market conditions. Karl will discuss our operating performance and trends across our markets, and Gregg will review our financial results and our outlook.

Before we begin, please note that many statements on this call are forward-looking based on assumptions about the economy, world events, housing and financial markets, interest rates, the availability of labor and materials, inflation and