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A month has gone by since the last earnings report for Stanley Black & Decker (SWK - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Stanley Black & Decker due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Stanley Black & Decker, Inc. before we dive into how investors and analysts have reacted as of late.

Stanley Black's Q1 Earnings Beat Estimates, Revenues Rise Y/YStanley Black reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.

Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.

Segmental DiscussionEffective from the first quarter of 2025, it has renamed the Industrial segment as the Engineered Fastening segment. It had no impact on the company's consolidated financial statements or segment results.

Revenues from the company’s primary segment, Tools & Outdoor, totaled $3.34 billion, which increased 2% from the year-ago quarter. However, the segment’s organic revenues decreased 1%. Our estimate was $3.29 billion.

Revenues from the Engineered Fastening segment grossed $511 million, up 10% year over year. The segment’s organic revenues increased 7%. Our estimate was $459.3 million.

Margin ProfileStanley Black’s cost of sales was up 2.5% year over year to $2.69 billion. The gross profit increased 3.3% year over year to $1.16 billion. The gross margin increased 20 basis points (bps) year over year to 30.1%.

Selling, general and administrative expenses increased 2% year over year to $884.0 million. Adjusted EBITDA was $354.7 million, indicating a year-over-year decrease of 2%. The margin decreased 50 bps to 9.2%.

Balance Sheet and Cash FlowWhile exiting the first quarter, Stanley Black had cash and cash equivalents of $333.7 million compared with $280.1 million at the end of fourth-quarter 2025. The long-term debt balance was $4.70 billion, in line with the figure reported at the end of fourth-quarter 2025.

In the first three months of 2026, net cash used for operating activities was $388.8 million compared with $420 million used in the year-ago period. Capital and software expenditures totaled $58.5 million, down from $65 million reported in the year-ago period. Free cash flow (before dividends) was ($447.3) million compared with ($485.0) million a year ago.

In the first three months of 2026, the company paid out dividends worth $126 million to its shareholders, up 1.2% from the year-ago period.

2026 GuidanceStanley Black updated its 2026 guidance. The company now anticipates earnings to be $4.15-$5.35 per share compared with $3.15-$4.35 expected earlier. Adjusted earnings are projected to be $4.90-$5.70 per share. The company targets to generate annual free cash flow (non-GAAP) of $700-$900 million, increasing 16% at the midpoint.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresCurrently, Stanley Black & Decker has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Stanley Black & Decker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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Stock to Watch: Stanley Black & Decker (SWK - Free Report) Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.

SWK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.76; value investors should take notice.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.10 to $5.32 per share. SWK also boasts an average earnings surprise of +61.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SWK should be on investors' short list.

Key Takeaways Stanley Black's aerospace market delivered 31% organic growth in first-quarter 2026.SWK's automotive business posted 4% organic growth, helping segment organic revenues rise 7%.Stanley Black completed a cost-reduction program that generated about $2.1B in pre-tax run rate savings. Stanley Black & Decker, Inc. (SWK - Free Report) has been witnessing solid growth in the Engineered Fastening segment, driven by persistent strength across the aerospace market. The aerospace market continued its strong trajectory and generated 31% organic growth in the first quarter of 2026.

Solid momentum in the automotive business, driven by a strong demand environment in North America and healthy global fastener system sales across auto OEM markets, bodes well. The business posted 4% organic growth in first-quarter 2026. However, these gains were partially offset by lower volumes in the industrial market. Nevertheless, the segment’s organic revenues grew 7% in the quarter on a year-over-year basis. For 2026, the company expects the segment’s revenues to grow at a low-to-mid single-digit range, supported by operational improvements.

The company also completed its multi-year global cost-reduction program, having generated roughly $2.1 billion in pre-tax run-rate savings. Approximately $1.5 billion of savings came from core supply-chain initiatives, including operational excellence, material productivity and complexity reduction. These actions continue to support profitability and operational efficiency across its segments.

Segment Snapshot of SWK’s PeersRBC Bearings Incorporated (RBC - Free Report) is witnessing strength in the Industrial segment (revenues increased 5.5% year over year in the fourth quarter of fiscal 2026). Stable demand for its highly engineered bearings and precision components in food & beverage, aggregate & cement, grain, semiconductor and warehousing markets bodes well for RBC’s segment.

IDEX Corporation (IEX - Free Report) is benefiting from strength in the Fluid & Metering Technologies (FMT) An increase in demand for products across the municipal water end market has been proving beneficial for the IDEX’s FMT segment. Higher demand for mining application solutions also bodes well for the segment.

SWK’s Price Performance, Valuation and EstimatesShares of Stanley Black have gained 7% in the past month against the industry’s decline of 1%.

Image Source: Zacks Investment Research

From a valuation standpoint, SWK is trading at a forward price-to-earnings ratio of 14.64X, below the industry’s average of 16.02X. Stanley Black carries a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SWK’s 2026 earnings has increased 1.9% over the past 60 days.

Image Source: Zacks Investment Research

Stanley Black currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KANSAS CITY, Mo.--(BUSINESS WIRE)--Commerce Bancshares, Inc. announced earnings of $.96 per share for the three months ended March 31, 2026, compared to $.93 per share in the same quarter last year and $1.01 per share in the fourth quarter of 2025. Net income for the first quarter of 2026 amounted to $141.6 million, compared to $131.6 million in the first quarter of 2025 and $140.7 million in the prior quarter.

In making this announcement, John Kemper, Chief Executive Officer, said, “We delivered a strong first quarter highlighted by solid profitability and continued momentum across our diversified fee businesses. This was also our first full quarter incorporating FineMark, a strategic investment that meaningfully enhances our private banking and wealth management capabilities and expands our presence in highly attractive growth markets. Our overall performance reflected the strength of our franchise, supported by resilient net interest income, continued trust fee growth, and solid returns across our core profitability measures.

Mr. Kemper continued, “Our return on average assets remained solid at 1.62% while maintaining excellent credit quality, with non-accrual loans at just .05% of total loans. Non-interest income was $175.9 million and comprised 37% of total revenue.”

“We also remained focused on thoughtful capital deployment, returning excess capital to shareholders through the repurchase of more than $84 million of common stock this quarter while maintaining a conservative capital posture that underpins our long‑term strength and flexibility. As we look ahead, Commerce is well positioned to navigate an uncertain economic environment with discipline and confidence, balancing near‑term conditions with continued investment in long‑term growth. Our strategy remains centered on delivering consistent performance and creating durable, long‑term value for our shareholders."

First Quarter 2026 Financial Highlights:

On January 1, 2026, Commerce Bancshares, Inc. completed its acquisition of FineMark Holdings, Inc. Net interest income was $299.8 million, a $16.7 million increase over the prior quarter. The net yield on interest earning assets decreased one basis point to 3.59%. Non-interest income totaled $175.9 million, an increase of $16.9 million, or 10.6%, over the same quarter last year. Trust fees grew $14.5 million, or 25.5%, over the same period last year, mostly due to higher private client fees. Non-interest expense totaled $291.1 million and included $14.0 million in acquisition-related expense. Assets under administration grew $14.9 billion, or 19.5%, over the same period last year. Average loan balances totaled $20.3 billion, an increase of $2.7 billion, or 15.2%, over the prior quarter. Total average available for sale debt securities decreased $269.0 million from the prior quarter to $8.9 billion, at fair value. Total average deposits increased $2.1 billion, or 8.2%, over the prior quarter to $27.7 billion. The ratio of annualized net loan charge-offs to average loans was .30% in the current quarter compared to .22% in the prior quarter. The allowance for credit losses on loans increased $19.1 million during the first quarter of 2026 to $198.6 million, and the ratio of the allowance for credit losses on loans to total loans was .97% at March 31, 2026, compared to 1.01% at December 31, 2025. Total assets on March 31, 2026 were $35.7 billion, an increase of $2.8 billion over the prior quarter. For the quarter, the return on average assets was 1.62%, the return on average equity was 13.22%, and the efficiency ratio was 60.0%. Quarterly profitability metrics reflected elevated acquisition-related expenses of approximately $14 million, which temporarily pressured the efficiency ratio and return on average assets. Commerce Bancshares, Inc. is a regional bank holding company offering a full line of banking services through its subsidiaries, including payment solutions, wealth management and securities brokerage. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions. Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With the acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina. Customers can conveniently access their account 24/7 using mobile and online platforms, as well as a customer service line.

This financial news release and the supplementary Earnings Highlights presentation are available on the Company’s website at https://investor.commercebank.com/news-info/financial-news-releases/default.aspx.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

  For the Three Months Ended

(Unaudited)

(Dollars in thousands, except per share data)

Mar. 31,
2026

Dec. 31,
2025

Mar. 31,
2025

FINANCIAL SUMMARY

Net interest income

$299,840

$283,152

$269,102

Non-interest income

175,851

166,208

158,949

Total revenue

475,691

449,360

428,051

Investment securities gains (losses)

11,647

2,929

(7,591

)

Provision for credit losses

10,960

15,993

14,487

Non-interest expense

291,126

252,995

238,376

Income before taxes

185,252

183,301

167,597

Income taxes

40,881

40,620

36,964

Non-controlling interest expense (income)

2,748

2,019

(959

)

Net income attributable to Commerce Bancshares, Inc.

$141,623

$140,662

$131,592

Earnings per common share:

Net income — basic

$0.96

$1.01

$0.93

Net income — diluted

$0.96

$1.01

$0.93

Effective tax rate

22.40

%

22.41

%

21.93

%

Fully-taxable equivalent net interest income

$302,204

$285,830

$271,416

Average total interest earning assets (1)

$34,130,985

$31,468,907

$30,901,110

Diluted wtd. average shares outstanding

145,856,608

137,599,105

139,725,305

RATIOS

Average loans to deposits (2)

73.44

%

69.01

%

69.38

%

Return on total average assets

1.62

1.73

1.69

Return on average equity (3)

13.22

14.70

15.82

Non-interest income to total revenue

36.97

36.99

37.13

Efficiency ratio (4)

60.00

56.23

55.61

Net yield on interest earning assets

3.59

3.60

3.56

EQUITY SUMMARY

Cash dividends per share

$.275

$.262

$.262

Cash dividends on common stock

$40,355

$36,236

$36,866

Book value per share (5)

$29.64

$27.75

$24.94

Market value per share (5)

$49.20

$52.34

$59.27

High market value per share

$56.06

$57.36

$65.59

Low market value per share

$46.99

$48.69

$56.00

Common shares outstanding (5)

145,979,271

137,457,138

140,277,275

Tangible common equity to tangible assets (6)

11.07

%

11.11

%

10.33

%

Tier I leverage ratio

12.60

%

12.65

%

12.29

%

OTHER QTD INFORMATION

Number of bank/ATM locations

249

236

242

Full-time equivalent employees

4,960

4,667

4,662

(1) Excludes allowance for credit losses on loans and unrealized gains/(losses) on available for sale debt securities.

(2) Includes loans held for sale.

(3) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.

(4) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.

(5) As of period end.

(6) The tangible common equity ratio is a non-gaap ratio and is calculated as stockholders’ equity reduced by goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets reduced by goodwill and other intangible assets (excluding mortgage servicing rights).

All share and per share amounts have been restated to reflect the 5% stock dividend distributed in December 2025.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

  (Unaudited)

(In thousands, except per share data)

For the Three Months Ended

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

Interest income

$396,507

$373,617

$374,105

$371,636

$364,365

Interest expense

96,667

90,465

94,648

91,489

95,263

Net interest income

299,840

283,152

279,457

280,147

269,102

Provision for credit losses

10,960

15,993

20,061

5,597

14,487

Net interest income after credit losses

288,880

267,159

259,396

274,550

254,615

NON-INTEREST INCOME

Trust fees

71,049

62,125

58,412

55,571

56,592

Bank card transaction fees

45,585

46,761

45,551

46,362

45,593

Deposit account charges and other fees

28,578

27,949

27,427

26,248

26,622

Consumer brokerage services

5,444

5,185

6,698

5,383

4,785

Capital market fees

5,338

4,230

5,138

6,175

5,112

Loan fees and sales

3,243

3,594

3,465

3,419

3,404

Other

16,614

16,364

14,820

22,455

16,841

Total non-interest income

175,851

166,208

161,511

165,613

158,949

INVESTMENT SECURITIES GAINS (LOSSES), NET

11,647

2,929

7,885

437

(7,591

)

NON-INTEREST EXPENSE

Salaries and employee benefits

180,787

162,889

157,461

155,025

153,078

Data processing and software

38,328

35,273

33,555

32,904

32,238

Professional and other services

18,792

14,573

11,284

12,973

10,026

Net occupancy

15,308

13,172

13,474

13,654

14,020

Marketing

6,957

6,201

6,670

5,974

5,843

Equipment

5,671

5,682

5,421

5,157

5,248

Supplies and communication

5,238

4,841

4,837

4,962

5,046

Deposit Insurance

3,914

(81

)

3,074

3,312

3,744

Other

16,131

10,445

8,242

10,476

9,133

Total non-interest expense

291,126

252,995

244,018

244,437

238,376

Income before income taxes

185,252

183,301

184,774

196,163

167,597

Less income taxes

40,881

40,620

41,152

42,400

36,964

Net income

144,371

142,681

143,622

153,763

130,633

Less non-controlling interest expense (income)

2,748

2,019

2,104

1,284

(959

)

Net income attributable to Commerce Bancshares, Inc.

$141,623

$140,662

$141,518

$152,479

$131,592

Net income per common share — basic

$0.96

$1.01

$1.01

$1.09

$0.93

Net income per common share — diluted

$0.96

$1.01

$1.01

$1.09

$0.93

OTHER INFORMATION

Return on total average assets

1.62

%

1.73

%

1.78

%

1.95

%

1.69

%

Return on average equity (1)

13.22

14.70

15.26

17.40

15.82

Efficiency ratio (2)

60.00

56.23

55.26

54.77

55.61

Effective tax rate

22.40

22.41

22.53

21.76

21.93

Net yield on interest earning assets

3.59

3.60

3.64

3.70

3.56

Fully-taxable equivalent net interest income

$302,204

$285,830

$281,770

$282,428

$271,416

(1) Annualized net income attributable to Commerce Bancshares, Inc. divided by average total equity.

(2) The efficiency ratio is calculated as non-interest expense (excluding intangibles amortization) as a percent of total revenue.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - PERIOD END

  (Unaudited)

(In thousands)

Mar. 31,
2026

Dec. 31,
2025

Mar. 31,
2025

ASSETS

Loans

Business

$6,750,356

$6,439,380

$6,239,276

Real estate — construction and land

1,581,789

1,438,012

1,419,572

Real estate — business

4,059,539

3,674,567

3,628,635

Real estate — personal

4,407,606

3,053,435

3,047,809

Consumer

2,475,353

2,196,822

2,116,160

Revolving home equity

619,178

375,159

356,675

Consumer credit card

557,733

589,694

568,163

Overdrafts

9,510

4,194

3,131

Total loans

20,461,064

17,771,263

17,379,421

Allowance for credit losses on loans

(198,605

)

(179,468

)

(167,031

)

Net loans

20,262,459

17,591,795

17,212,390

Loans held for sale

2,081

4,329

2,890

Investment securities:

Available for sale debt securities

8,646,127

9,095,513

9,264,947

Trading debt securities

44,329

40,080

56,569

Equity securities

56,193

57,354

58,182

Other securities

248,339

230,459

221,370

Total investment securities

8,994,988

9,423,406

9,601,068

Federal funds sold

630

—

—

Securities purchased under agreements to resell

850,000

850,000

850,000

Interest earning deposits with banks

3,270,046

2,744,393

2,756,521

Cash and due from banks

572,588

803,239

517,332

Premises and equipment — net

527,211

485,700

476,921

Goodwill

253,805

146,539

146,539

Other intangible assets — net

145,985

13,311

13,441

Other assets

837,463

852,377

787,862

Total assets

$35,717,256

$32,915,089

$32,364,964

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits:

Non-interest bearing

$8,058,024

$8,205,711

$7,518,243

Savings, interest checking and money market

17,877,836

15,047,406

15,975,283

Certificates of deposit of less than $100,000

1,032,114

1,023,406

985,878

Certificates of deposit of $100,000 and over

1,416,345

1,363,053

1,362,393

Total deposits

28,384,319

25,639,576

25,841,797

Federal funds purchased and securities sold under agreements to repurchase

2,576,723

2,989,641

2,400,036

Other borrowings

8,045

12,798

17,743

Other liabilities

421,771

458,302

606,986

Total liabilities

31,390,858

29,100,317

28,866,562

Stockholders’ equity:

Common stock

742,606

692,944

676,054

Capital surplus

3,986,353

3,522,292

3,381,960

Retained earnings

233,094

131,826

140,220

Treasury stock

(120,692

)

(48,001

)

(85,871

)

Accumulated other comprehensive income (loss)

(539,592

)

(507,690

)

(634,576

)

Total stockholders’ equity

4,301,769

3,791,371

3,477,787

Non-controlling interest

24,629

23,401

20,615

Total equity

4,326,398

3,814,772

3,498,402

Total liabilities and equity

$35,717,256

$32,915,089

$32,364,964

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

AVERAGE BALANCE SHEETS

  (Unaudited)

(In thousands)

For the Three Months Ended

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

ASSETS:

Loans:

Business

$6,687,131

$6,317,805

$6,230,019

$6,247,252

$6,106,185

Real estate — construction and land

1,592,328

1,408,339

1,396,977

1,430,758

1,415,349

Real estate — business

4,045,670

3,730,679

3,715,597

3,692,405

3,667,833

Real estate — personal

4,417,131

3,058,834

3,059,913

3,048,895

3,045,876

Consumer

2,421,541

2,200,500

2,160,637

2,148,666

2,082,360

Revolving home equity

611,101

372,194

360,820

362,312

358,684

Consumer credit card

555,697

565,896

563,351

559,858

560,534

Overdrafts

7,144

6,592

7,037

5,663

5,860

Total loans

20,337,743

17,660,839

17,494,351

17,495,809

17,242,681

Allowance for credit losses on loans

(201,769

)

(175,129

)

(164,623

)

(166,391

)

(162,186

)

Net loans

20,135,974

17,485,710

17,329,728

17,329,418

17,080,495

Loans held for sale

2,361

2,532

2,369

1,741

1,584

Investment securities:

U.S. government and federal agency obligations

3,190,796

3,197,720

2,693,327

2,623,896

2,586,944

Government-sponsored enterprise obligations

54,800

54,955

55,014

55,038

55,330

State and municipal obligations

709,332

724,737

756,137

780,063

804,363

Mortgage-backed securities

4,211,068

4,316,799

4,461,056

4,641,295

4,788,102

Asset-backed securities

1,201,187

1,336,859

1,466,770

1,585,364

1,655,701

Other debt securities

176,676

196,633

204,281

237,385

258,136

Unrealized gain (loss) on debt securities

(630,778

)

(645,595

)

(766,025

)

(838,028

)

(935,054

)

Total available for sale debt securities

8,913,081

9,182,108

8,870,560

9,085,013

9,213,522

Trading debt securities

97,801

61,160

56,032

51,131

38,298

Equity securities

50,378

52,387

50,823

54,472

57,028

Other securities

250,641

227,395

220,041

216,560

233,461

Total investment securities

9,311,901

9,523,050

9,197,456

9,407,176

9,542,309

Federal funds sold

862

—

23

158

2,089

Securities purchased under agreements to resell

850,000

850,000

850,000

850,000

788,889

Interest earning deposits with banks

2,997,340

2,786,891

2,422,441

2,036,803

2,388,504

Other assets

2,074,538

1,700,147

1,709,247

1,671,763

1,698,296

Total assets

$35,372,976

$32,348,330

$31,511,264

$31,297,059

$31,502,166

LIABILITIES AND EQUITY:

Non-interest bearing deposits

$7,874,488

$7,592,431

$7,345,156

$7,356,882

$7,298,686

Savings

1,301,768

1,261,285

1,283,671

1,303,391

1,294,174

Interest checking and money market

16,019,323

14,335,613

13,740,770

13,901,634

13,906,827

Certificates of deposit of less than $100,000

1,035,130

1,015,617

991,877

984,845

991,826

Certificates of deposit of $100,000 and over

1,465,168

1,389,149

1,416,572

1,371,428

1,363,655

Total deposits

27,695,877

25,594,095

24,778,046

24,918,180

24,855,168

Borrowings:

Federal funds purchased

141,888

130,487

130,622

129,891

128,340

Securities sold under agreements to repurchase

2,674,484

2,429,746

2,519,660

2,371,031

2,723,227

Other borrowings

90,796

1,230

1,860

2,748

616

Total borrowings

2,907,168

2,561,463

2,652,142

2,503,670

2,852,183

Other liabilities

423,998

395,336

402,265

360,204

421,370

Total liabilities

31,027,043

28,550,894

27,832,453

27,782,054

28,128,721

Equity

4,345,933

3,797,436

3,678,811

3,515,005

3,373,445

Total liabilities and equity

$35,372,976

$32,348,330

$31,511,264

$31,297,059

$31,502,166

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

AVERAGE RATES

  (Unaudited)

For the Three Months Ended

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

ASSETS:

Loans:

Business (1)

5.41

%

5.48

%

5.72

%

5.72

%

5.75

%

Real estate — construction and land

6.59

7.05

7.37

7.39

7.30

Real estate — business

5.75

5.76

5.92

5.92

5.88

Real estate — personal

4.82

4.38

4.34

4.30

4.28

Consumer

6.20

6.23

6.42

6.43

6.52

Revolving home equity

7.29

7.25

7.94

7.41

7.26

Consumer credit card

12.64

12.81

13.21

13.18

13.49

Overdrafts

—

—

—

—

—

Total loans

5.79

5.84

6.02

6.01

6.02

Loans held for sale

4.98

5.01

6.03

9.22

5.89

Investment securities:

U.S. government and federal agency obligations

3.60

4.07

4.06

4.28

4.09

Government-sponsored enterprise obligations

2.40

2.36

2.35

2.38

2.40

State and municipal obligations (1)

2.10

2.06

2.05

2.05

2.05

Mortgage-backed securities

2.12

2.05

2.01

2.08

2.08

Asset-backed securities

3.80

3.78

3.69

3.73

3.46

Other debt securities

3.17

2.97

2.97

2.94

2.69

Total available for sale debt securities

2.85

2.96

2.86

2.95

2.83

Trading debt securities (1)

3.14

4.61

4.67

4.63

4.97

Equity securities (1)

6.49

6.35

6.09

6.26

8.02

Other securities (1)

6.81

9.08

7.29

11.63

7.85

Total investment securities

2.97

3.12

2.99

3.16

2.98

Federal funds sold

3.29

—

—

5.08

5.63

Securities purchased under agreements to resell

4.03

4.00

4.00

4.02

3.81

Interest earning deposits with banks

3.70

3.95

4.45

4.46

4.46

Total interest earning assets

4.74

4.74

4.86

4.90

4.81

LIABILITIES AND EQUITY:

Interest bearing deposits:

Savings

.07

.05

.05

.05

.05

Interest checking and money market

1.48

1.45

1.54

1.49

1.52

Certificates of deposit of less than $100,000

3.17

3.25

3.33

3.44

3.65

Certificates of deposit of $100,000 and over

3.35

3.60

3.71

3.78

3.96

Total interest bearing deposits

1.61

1.62

1.71

1.67

1.72

Borrowings:

Federal funds purchased

3.66

3.92

4.34

4.37

4.37

Securities sold under agreements to repurchase

2.39

2.54

2.88

2.85

2.86

Other borrowings

3.88

.65

1.71

3.79

.66

Total borrowings

2.50

2.61

2.95

2.93

2.93

Total interest bearing liabilities

1.72

%

1.75

%

1.87

%

1.83

%

1.89

%

Net yield on interest earning assets

3.59

%

3.60

%

3.64

%

3.70

%

3.56

%

(1) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.

COMMERCE BANCSHARES, INC. and SUBSIDIARIES

CREDIT QUALITY

  For the Three Months Ended

(Unaudited)

(In thousands, except ratios)

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Mar. 31,
2025

ALLOWANCE FOR CREDIT LOSSES ON LOANS

Balance at beginning of period

$179,468

$175,671

$165,260

$167,031

$162,742

Initial allowance for credit loss at acquisition

22,828

—

—

—

—

Provision for credit losses on loans

11,283

13,660

20,739

7,919

15,095

Net charge-offs (recoveries):

Commercial portfolio:

Business

241

222

826

432

46

Real estate — construction and land

—

16

—

24

—

Real estate — business

5,405

(24

)

(23

)

(425

)

377

5,646

214

803

31

423

Personal banking portfolio:

Consumer credit card

7,139

6,488

6,515

7,085

6,967

Consumer

1,768

2,498

2,310

2,168

2,852

Overdraft

413

485

432

360

495

Real estate — personal

2

180

269

35

72

Revolving home equity

6

(2

)

(1

)

11

(3

)

9,328

9,649

9,525

9,659

10,383

Total net loan charge-offs

14,974

9,863

10,328

9,690

10,806

Balance at end of period

$198,605

$179,468

$175,671

$165,260

$167,031

LIABILITY FOR UNFUNDED LENDING COMMITMENTS

$17,699

$17,660

$15,327

$16,005

$18,327

NET CHARGE-OFF RATIOS (1)

Commercial portfolio:

Business

.01

%

.01

%

.05

%

.03

%

—

%

Real estate — construction and land

—

—

—

.01

—

Real estate — business

.54

—

—

(.05

)

.04

.19

.01

.03

—

.02

Personal banking portfolio:

Consumer credit card

5.21

4.55

4.59

5.08

5.04

Consumer

.30

.45

.42

.40

.56

Overdraft

23.45

29.19

24.36

25.50

34.26

Real estate — personal

—

.02

.03

—

.01

Revolving home equity

—

—

—

.01

—

.47

.62

.61

.63

.70

Total

.30

%

.22

%

.23

%

.22

%

.25

%

CREDIT QUALITY RATIOS

Non-accrual loans to total loans

.05

%

.09

%

.09

%

.11

%

.13

%

Allowance for credit losses on loans to total loans

.97

1.01

.99

.94

.96

NON-ACCRUAL AND PAST DUE LOANS

Non-accrual loans:

Business

$201

$123

$255

$410

$1,112

Real estate — construction and land

—

—

191

426

220

Real estate — business

9,369

14,785

14,940

15,109

18,305

Real estate — personal

1,316

842

867

948

989

Revolving home equity

34

—

—

1,977

1,977

Total

10,920

15,750

16,253

18,870

22,603

Loans past due 90 days and still accruing interest

$22,824

$24,659

$21,536

$25,303

$19,417

(1) Net charge-offs are annualized and calculated as a percentage of average loans (excluding loans held for sale).

COMMERCE BANCSHARES, INC.
Management Discussion of First Quarter Results
March 31, 2026

For the quarter ended March 31, 2026, net income amounted to $141.6 million, compared to $140.7 million in the previous quarter and $131.6 million in the same quarter last year. The increase in net income over the previous quarter was primarily the result of higher net interest income, non-interest income, gains on investment securities, and a decrease in the provision for credit losses, partly offset by higher non-interest expense. The net yield on interest earning assets decreased one basis point from the previous quarter to 3.59%. Average loans and deposits increased $2.7 billion and $2.1 billion, respectively, while available for sale investment securities, at fair value, decreased $269.0 million compared to the prior quarter. For the quarter, the return on average assets was 1.62%, the return on average equity was 13.22%, and the efficiency ratio was 60.0%.

On January 1, 2026, the Company closed on its previously announced acquisition of FineMark Holdings, Inc. (“FineMark”), Ft. Meyers, Florida, with 13 banking locations in Florida, Arizona, and South Carolina. The acquisition added total assets of approximately $3.9 billion, including loans of $2.7 billion, total deposits of $3.1 billion and assets under administration of $8.7 billion.

Balance Sheet Review

During the 1st quarter of 2026, average loans totaled $20.3 billion, an increase of $2.7 billion over the prior quarter, and an increase of $3.1 billion over the same quarter last year. The increase in average balances over both periods was primarily due to the acquisition of FineMark, which added $2.7 billion in loan balances. Compared to the previous quarter, average balances of personal real estate, business, business real estate, revolving home equity and consumer loans grew $1.4 billion, $369.3 million, $315.0 million, $238.9 million and $221.0 million, respectively. During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $26.2 million, compared to $27.0 million in the prior quarter.

Total average available for sale debt securities decreased $269.0 million from the previous quarter to $8.9 billion, at fair value. The decrease in available for sale debt securities was mainly the result of lower average balances of mortgage-backed and asset-backed securities. During the 1st quarter of 2026, the unrealized loss on available for sale debt securities increased $40.7 million to $687.5 million, at period end. Also, during the 1st quarter of 2026, maturities and pay downs of available for sale debt securities were $410.7 million. On March 31, 2026, the duration of the available for sale investment portfolio was 4.2 years, and maturities and pay downs of approximately $1.2 billion are expected to occur during the next 12 months.

Average interest earning deposits with banks increased $210.4 million over average balances in the previous quarter, and the average balances within other assets increased $374.4 million mainly due to increases in goodwill, intangible assets, and premises and equipment related to the Company's acquisition of FineMark.

Total average deposits increased $2.1 billion this quarter over the previous quarter. The increase in average balances was primarily due to the acquisition of FineMark, which added $2.7 billion of interest bearing and $425 million of non-interest bearing deposit balances. Shortly after the acquisition, the Company moved $1.0 billion of FineMark’s high-cost, money market deposit balances off-balance sheet. Compared to the prior quarter, average interest checking and money market deposits and demand deposits increased $1.7 billion and $282.1 million, respectively. Additionally, average balances of certificates of deposit of $100,000 and over increased $76.0 million compared to the prior quarter, mainly due to deposit balances acquired from FineMark. Compared to the previous quarter, total average wealth and retail banking deposits grew $2.3 billion and $251.0 million, respectively, while commercial deposits declined $408.3 million. The average loans to deposits ratio was 73.4% in the current quarter and 69.0% in the prior quarter. The Company’s average borrowings, which included average customer repurchase agreements of $2.7 billion, increased $345.7 million to $2.9 billion in the 1st quarter of 2026. Federal Home Loan Bank advances of $350.0 million, which the Company acquired from the FineMark acquisition, were paid off in January 2026.

Net Interest Income

Net interest income in the 1st quarter of 2026 amounted to $299.8 million, an increase of $16.7 million over the previous quarter. On a fully taxable-equivalent (FTE) basis, net interest income for the current quarter increased $16.4 million over the previous quarter to $302.2 million. The increase in net interest income was mostly due to the acquisition of FineMark on January 1, 2026. Accretion income on FineMark’s loans resulting from purchase accounting adjustments totaled $6.9 million. The net yield (FTE) on earning assets decreased to 3.59%, from 3.60% in the prior quarter.

Compared to the previous quarter, interest income on loans (FTE) increased $30.4 million, mostly due to higher average balances in all loan categories, except consumer credit cards, and higher average rates earned on personal real estate loans, partly offset by lower average rates earned on business, construction, and business real estate loans. The average yield (FTE) on the loan portfolio decreased five basis points to 5.79% this quarter.

Interest income on investment securities (FTE) decreased $7.3 million compared to the prior quarter, mostly due to lower average rates earned on U.S. government and federal agency obligations and other securities and lower average balances of asset-backed and mortgage-backed securities. Interest income earned on U.S. government and federal agency obligations included the impact of a $3.8 million decrease in inflation income from Treasury inflation-protected securities compared to the previous quarter. In the prior quarter, interest on other securities included dividend income of $2.1 million related to a private equity investment that did not reoccur in the current quarter. Additionally, the Company recorded a $940 thousand adjustment to premium amortization on March 31, 2026, which increased interest income to reflect slower forward prepayment speed estimates on mortgage-backed securities. This increase was higher than the $731 thousand adjustment that increased interest income in the prior quarter. The average yield (FTE) on total investment securities was 2.97% in the current quarter, compared to 3.12% in the previous quarter.

Compared to the previous quarter, interest income on deposits with banks decreased $401 thousand as lower average rates more than offset higher average balances. Interest expense increased $6.2 million over the previous quarter, mainly due to higher average interest bearing deposit balances, partly offset by lower average rates paid on interest bearing deposit balances. Interest expense on deposits increased $5.1 million mostly due to higher average interest checking and money market deposit account balances. The average rate paid on interest bearing deposits totaled 1.61% in the current quarter compared to 1.62% in the prior quarter. The overall rate paid on interest bearing liabilities was 1.72% in the current quarter and 1.75% in the prior quarter.

Non-Interest Income

In the 1st quarter of 2026, total non-interest income amounted to $175.9 million, an increase of $16.9 million, or 10.6%, over the same period last year and an increase of $9.6 million over the prior quarter. The increase in non-interest income compared to the same period last year was mainly due to higher trust fees and deposit account fees. The increase in non-interest income compared to the prior quarter was mainly due to higher trust fees.

Total net bank card fees in the current quarter were flat compared to the same period last year and decreased $1.2 million compared to the prior quarter. Net corporate card fees were flat compared to the same quarter last year. Net merchant fees decreased $184 thousand, or 3.2%, while net debit card fees increased $301 thousand, or 2.9%, mainly due to higher interchange income. Net credit card fees decreased $173 thousand, or 4.8%, mostly due to higher rewards expense. Total net bank card fees this quarter were comprised of fees on corporate card ($26.0 million), debit card ($10.6 million), merchant ($5.6 million) and credit card ($3.4 million) transactions.

In the current quarter, trust fees increased $14.5 million, or 25.5%, over the same period last year, and increased $8.9 million, or 14.4%, over the prior quarter, mostly resulting from higher private client fees. Compared to the same period last year, deposit account fees increased $2.0 million, or 7.3%, mostly due to higher corporate cash management fees.

For the 1st quarter of 2026, non-interest income comprised 37.0% of the Company’s total revenue.

Investment Securities Gains and Losses

The Company recorded net securities gains of $11.6 million in the current quarter, compared to net gains of $2.9 million in the prior quarter and net securities losses of $7.6 million in the 1st quarter of 2025. Net securities gains in the current quarter mostly resulted from net fair value adjustments of $10.9 million on the Company’s portfolio of private equity investments.

Non-Interest Expense

Non-interest expense for the current quarter amounted to $291.1 million, compared to $238.4 million in the same period last year and $253.0 million in the prior quarter. The current quarter included $14.0 million in acquisition-related expense, compared to $2.8 million in the previous quarter, as well as acquisition-related intangible amortization expense of $5.4 million. The increase in non-interest expense over the same period last year was mainly due to higher salaries and benefits expense, data processing and software expense, professional and other services expense, and intangible amortization expense. The increase in non-interest expense over the prior quarter was mainly due to higher salaries and benefits expense, data processing and software expense, professional and other services expense, intangible amortization expense and deposit insurance expense.

Compared to the 1st quarter of 2025, salaries and employee benefits expense increased $27.7 million, or 18.1%, mostly due to an accrual for retention bonuses, acquisition-related compensation payments and the onboarding of FineMark’s team members. Acquisition-related salaries and benefits expense was $6.6 million in the current quarter. Full-time equivalent employees totaled 4,960 and 4,662 at March 31, 2026 and 2025, respectively.

Compared to the same period last year, data processing and software expense increased $6.1 million due to higher costs for service providers and software. Professional and other services, which increased $8.8 million compared to the 1st quarter of 2025, included $4.7 million in acquisition-related legal and professional services expense. The increase in other non-interest expense was mainly due to increases of $5.4 million in intangible amortization expense related to the FineMark acquisition and $2.0 million in other acquisition-related expense. Compared to the prior quarter, deposit insurance expense increased $4.0 million due to a $3.9 million accrual adjustment to the FDIC’s special assessment, recorded in the 4th quarter of 2025.

Income Taxes

The effective tax rate for the Company was 22.4% in the current quarter, 22.4% in the prior quarter, and 21.9% in the 1st quarter of 2025.

Credit Quality

Net loan charge-offs in the 1st quarter of 2026 amounted to $15.0 million, compared to $9.9 million in the prior quarter, and $10.8 million in the same period last year. The ratio of annualized net charge-offs to total average loans was .30% in the current quarter, .22% in the previous quarter, and .25% in the same quarter of last year. Compared to the prior quarter, net charge-offs on business real estate loans and consumer credit card loans increased $5.4 million and $651 thousand, respectively, while net charge-offs on consumer loans decreased $730 thousand. The increase in business real estate loan net charge-offs was mainly due to a charge-off on a senior living non-accrual loan.

In the 1st quarter of 2026, annualized net charge-offs on average consumer credit card loans were 5.21%, compared to 4.55% in the previous quarter and 5.04% in the same quarter last year. Consumer loan net charge-offs were .30% of average consumer loans in the current quarter, .45% in the prior quarter, and .56% in the same quarter last year.

At March 31, 2026, the allowance for credit losses on loans totaled $198.6 million, or .97% of total loans, and increased $19.1 million compared to the prior quarter. The increase was mostly attributed to the acquisition of FineMark, which added $22.8 million to the allowance for credit losses on January 1, 2026. Additionally, the liability for unfunded lending commitments on March 31, 2026 was $17.7 million, flat compared to the liability on December 31, 2025.

At March 31, 2026, total non-accrual loans amounted to $10.9 million, a decrease of $4.8 million compared to the previous quarter. At March 31, 2026, the balance of non-accrual loans, which represented .05% of loans outstanding, included business real estate loans of $9.4 million, personal real estate loans of $1.3 million and business loans of $201 thousand. Loans more than 90 days past due and still accruing interest totaled $22.8 million at March 31, 2026.

Other

During the 1st quarter of 2026, the Company paid a cash dividend of $.275 per common share, representing a 5% increase over the same period last year. The Company purchased approximately 1.6 million shares of treasury stock during the current quarter at an average price of $51.57.

Forward Looking Information

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company's Annual Report on Form 10-K.

More News From Commerce Bancshares, Inc.

Commerce Bancshares (CBSH - Free Report) reported $475.69 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 11.1%. EPS of $0.96 for the same period compares to $0.98 a year ago.

The reported revenue represents a surprise of +0.44% over the Zacks Consensus Estimate of $473.62 million. With the consensus EPS estimate being $0.94, the EPS surprise was +2.49%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Commerce performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Efficiency Ratio: 60% compared to the 58.2% average estimate based on four analysts.Net Interest Margin (Net yield on interest earning assets): 3.6% versus the four-analyst average estimate of 3.6%.Average total interest earning assets: $34.13 billion versus $33.56 billion estimated by three analysts on average.Annualized net loan charge-offs to total average loans: 0.3% versus the three-analyst average estimate of 0.2%.Book value per share: $29.64 compared to the $30.06 average estimate based on two analysts.Fully-taxable equivalent net interest income: $302.2 million versus $301.98 million estimated by four analysts on average.Total Non-Interest Income: $175.85 million versus the four-analyst average estimate of $176.89 million.Deposit account charges and other fees: $28.58 million compared to the $28.46 million average estimate based on three analysts.Net Interest Income: $299.84 million versus the three-analyst average estimate of $297.55 million.Trust fees: $71.05 million compared to the $70.12 million average estimate based on three analysts.Bank card transaction fees: $45.59 million versus $46.43 million estimated by three analysts on average.Consumer brokerage services: $5.44 million compared to the $5.27 million average estimate based on two analysts.View all Key Company Metrics for Commerce here>>>

Shares of Commerce have returned +6.9% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways CBSH Q1 EPS of 96 cents beat estimates, driven by higher NII, fee income and lower provisions.Commerce Bancshares saw revenues rise 11% y/y with growth in loans, deposits and non-interest income.CBSH shares fell as expenses rose 22% and the efficiency ratio worsened, signaling pressure on profitability. Commerce Bancshares Inc.’s (CBSH - Free Report)  first-quarter 2026 earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 94 cents. The bottom line reflected a rise of 3.2% from the prior-year quarter.

Results benefited from higher net interest income (NII), a rise in non-interest income and lower provisions. The sequential rise in loans and deposits acted as a tailwind. However, higher expenses hurt the results to some extent. Probably because of this, CBSH shares fell 1.6% following the earnings release.

Net income attributable to Commerce Bancshares was $141.6 million, up 7.6% year over year. Our estimate for the metric was $132 million.

CBSH’s Revenues Improve, Expenses RiseTotal revenues were $475.7 million, up 11.1% year over year. The top line outpaced the Zacks Consensus Estimate of $473.6 million.

NII was $299.8 million, rising 11.4% from the year-ago quarter. Net yield on interest-earning assets was 3.59%, increasing 3 basis points (bps) year over year. Our estimates for NII and net yield on interest-earning assets were $288 million and 3.60%, respectively.

Non-interest income was $175.9 million, up 10.6% year over year. The rise was mainly driven by higher trust fees, deposit account charges and other fees, consumer brokerage services fees, and capital market fees. Our estimate for non-interest income was $175.2 million.

Non-interest expenses increased 22.1% year over year to $291.1 million. The rise was due to improvements in all cost components. We had projected expenses of $272.8 million.

Investment securities gains were $11.6 million against losses of $7.6 million in the prior-year quarter.

The efficiency ratio increased to 60% from 55.61% in the year-ago quarter. A rise in the efficiency ratio indicates a deterioration in profitability.

CBSH’s Loans & Deposits RiseAs of March 31, 2026, net loans were $20.26 billion, up from $17.59 billion as of Dec. 31, 2025. Total deposits were $28.38 billion, up from $25.64 billion at the end of the previous quarter. Our estimates for net loans and total deposits were $20.38 billion and $29.22 billion, respectively.

Commerce Bancshares’ Asset Quality: A Mixed BagProvision for credit losses was $11 million, down 24.3% from the prior-year quarter. Our estimate for the metric was $20.6 million. Non-accrual loans to total loans were 0.05% at the quarter-end, down from 0.13% in the year-ago quarter.

However, the allowance for credit losses on loans to total loans was 0.97% on March 31, 2026, increasing 1 bp year over year. The ratio of annualized net loan charge-offs to average loans was 0.30%, up from 0.25% in the prior-year quarter.

CBSH’s Capital Ratios Improve, Profitability Ratios DeclineAs of March 31, 2026, the Tier I leverage ratio was 12.60%, up from 12.29% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 11.07% from 10.33% in the prior-year quarter.

In the reported quarter, return on total average assets was 1.62%, down from 1.69% in the year-ago quarter. Return on average equity was 13.22% compared with 15.82% in the prior-year quarter.

CBSH’s Share Repurchase UpdateIn the reported quarter, the company purchased 1.6 million shares of treasury stock at an average price of $51.57.

Our Take on Commerce BancsharesOn Jan. 1, the company closed the deal to acquire FineMark Holdings, which will be accretive to its earnings and lead to cost savings. CBSH’s revenues are expected to be driven by decent loan demand, balance sheet repositioning strategy and efforts to bolster fee income. However, rising expenses and deteriorating asset quality remain near-term headwinds.

Currently, Commerce Bancshares carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other BanksM&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.

MTB’s results were aided by higher NII and a rise in non-interest income, along with modest loan growth. However, a decline in deposits, higher provision for credit losses and elevated expenses acted as headwinds.

KeyCorp’s (KEY - Free Report) first-quarter 2026 earnings from continuing operations of 44 cents per share outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflected a 33.3% rise from the prior-year quarter.

KEY’s results primarily benefited from higher NII and non-interest income. Higher average loan balances, along with lower provisions, were other tailwinds. However, higher expenses hurt KEY’s results to some extent.

Commerce Bancshares, Inc. (CBSH) Shareholder/Analyst Call Prepared Remarks Transcript

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KANSAS CITY, Mo.--(BUSINESS WIRE)--Commerce Bancshares, Inc. (NASDAQ: CBSH) announced today that it has participated in an exchange offer initiated by Visa Inc. (“Visa”) involving a portion of the Company’s Visa Class B‑2 common stock holdings.

Under the terms of the exchange offer, and subject to final settlement, Commerce expects to exchange tendered Visa Class B‑2 shares for a combination of Visa Class B-3 common stock and Visa Class C common stock. The Company has tendered all 411,723 of its shares of Visa Inc. Class B-2 common stock and is awaiting notification of acceptance of that tender and the closing of the exchange offer.

If the Company’s tendered shares are accepted and the exchange occurs in the second quarter of 2026, Commerce expects to record a significant gain during the second quarter of 2026, based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. Additionally, if the tendered shares are accepted and the exchange occurs in the second quarter of 2026, Commerce may execute other strategic initiatives, including evaluating its investment portfolio as part of its ongoing capital and balance‑sheet management strategy. This may include repositioning a portion of the Company’s investment securities portfolio through the sale of available-for-sale debt securities, which may result in a significant loss, and the purchase of investment securities at current market yields to enhance net interest income, manage interest rate risk, and improve the overall quality and flexibility of the company’s balance sheet.

Commerce will provide additional details regarding the tender exchange and any related portfolio actions in future filings or disclosures, as appropriate.

About Commerce Bancshares, Inc.

Commerce Bancshares, Inc. (NASDAQ: CBSH) is a regional bank holding company with $35.7 billion in assets¹, offering banking, payment solutions, wealth management and securities brokerage through its subsidiaries. Commerce Bank, its primary subsidiary, brings over 160 years of experience helping individuals and businesses through high-touch service and sophisticated, personalized financial solutions.

Commerce maintains an extensive network of banking centers, wealth offices, and ATMs throughout the Midwest, as well as commercial offices in 11 states and offers payment solutions nationwide. With its recent acquisition of FineMark Holdings, Inc., Commerce builds on its existing private banking and wealth management presence in Florida and adds wealth offices in Arizona and South Carolina.

Customers can conveniently access their accounts 24/7 using mobile and online platforms, as well as a customer service line.

Learn more at www.commercebank.com

1As of March 31, 2026

Forward Looking Information

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions, and other statements that are not historical facts. Such statements are based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Additional information about risks and uncertainties is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within the Company's Annual Report on Form 10-K.

More News From Commerce Bancshares, Inc.

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. CBSH has a Momentum Style Score of B, and shares are up 2.8% over the past four weeks.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $4.10 per share. CBSH boasts an average earnings surprise of +3.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CBSH should be on investors' short list.

Key Takeaways Commerce Bancshares records a $99M gain after Visa accepted its tender of 411,723 Class B-2 shares.CBSH plans to sell almost $911M of 2.5% AFS securities, taking an estimated $95M pre-tax loss.CBSH expects reinvesting mostly into 4% securities to boost NII, with CET1 impact nearly neutral. Commerce Bancshares (CBSH - Free Report) is taking steps to improve the strength and flexibility of its balance sheet. The move will drive net interest income (NII) expansion and lower rate sensitivity in the quarters ahead.

The company announced that Visa Inc. (V - Free Report) accepted Commerce Bancshares’ tender of 411,723 shares of Visa Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock. The tender was earlier disclosed in a Form 8-K filed on April 27, 2026.

Following the completion of the exchange offer, Commerce Bancshares marked its Visa Class C common stock to fair value and recorded a $99 million gain. The gain was based on the conversion privilege of the Visa Class C common stock and the Visa Class A common stock’s closing price of $318.79 on May 8, 2026. The company expects to continue marking its Visa Class C shares to fair value regularly, using Visa Class A shares as evidence of orderly market transactions for similar securities issued by Visa.

Commerce Bancshares is using this gain as an opportunity to reposition part of its available-for-sale debt securities portfolio. The company approved a plan to sell securities with an amortized cost of roughly $911 million. These securities currently yield about 2.5%, and the sale is expected to generate a pre-tax loss of approximately $95 million.

CBSH intends to reinvest most of the proceeds into investment securities yielding around 4%. This will provide a meaningful pickup in portfolio yield and support NII growth over time. Management expects the combined effect of the Visa-related gain and the securities repositioning to be almost neutral to the company’s Common Equity Tier 1 ratio. This indicates that the company can enhance future profitability while preserving a solid capital profile.

Our Take on CBSH’s Securities RepositioningThe balance sheet repositioning is likely to support Commerce Bancshares’ prospects by boosting future NII, reducing interest-rate sensitivity and strengthening financial flexibility. The move reflects management’s proactive efforts to improve earnings quality while preserving capital discipline.

In the first quarter of 2026, CBSH’s NII jumped 11.4% year over year to $299.8 million on the back of the FineMark acquisition (completed in January) and balance sheet strength. With the balance sheet repositioning action, NII and net interest margin will likely expand further with additional support from the improving lending scenario and stabilizing funding costs.

In 2024, CBSH took similar steps following the acceptance of a share exchange deal with Visa. At that time, JPMorgan (JPM - Free Report) also announced recognizing accounting gains of almost $8 billion in the second quarter of 2024 as part of a share exchange deal with Visa. JPMorgan tendered its 37.2 million shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock.

Shares of Commerce Bancshares have lost 4.5% in the past six months against the industry’s growth of 2%.

Image Source: Zacks Investment Research

At present, CBSH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Commerce Bancshares (CBSH - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Commerce due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Commerce Bancshares’ Q1 Earnings Beat as Revenues Rise Y/YCommerce Bancshares’ first-quarter 2026 earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 94 cents. The bottom line reflected a rise of 3.2% from the prior-year quarter.

Results benefited from higher net interest income (NII), a rise in non-interest income and lower provisions. The sequential rise in loans and deposits acted as a tailwind. However, higher expenses hurt the results to some extent. Probably because of this, CBSH shares fell 1.6% following the earnings release.

Net income attributable to Commerce Bancshares was $141.6 million, up 7.6% year over year. Our estimate for the metric was $132 million.

Revenues Improve, Expenses RiseTotal revenues were $475.7 million, up 11.1% year over year. The top line outpaced the Zacks Consensus Estimate of $473.6 million.

NII was $299.8 million, rising 11.4% from the year-ago quarter. Net yield on interest-earning assets was 3.59%, increasing 3 basis points (bps) year over year. Our estimates for NII and net yield on interest-earning assets were $288 million and 3.60%, respectively.

Non-interest income was $175.9 million, up 10.6% year over year. The rise was mainly driven by higher trust fees, deposit account charges and other fees, consumer brokerage services fees, and capital market fees. Our estimate for non-interest income was $175.2 million.

Non-interest expenses increased 22.1% year over year to $291.1 million. The rise was due to improvements in all cost components. We had projected expenses of $272.8 million.

Investment securities gains were $11.6 million against losses of $7.6 million in the prior-year quarter.

The efficiency ratio increased to 60% from 55.61% in the year-ago quarter. A rise in the efficiency ratio indicates a deterioration in profitability.

Loans & Deposits RiseAs of March 31, 2026, net loans were $20.26 billion, up from $17.59 billion as of Dec. 31, 2025. Total deposits were $28.38 billion, up from $25.64 billion at the end of the previous quarter. Our estimates for net loans and total deposits were $20.38 billion and $29.22 billion, respectively.

Asset Quality: A Mixed BagProvision for credit losses was $11 million, down 24.3% from the prior-year quarter. Our estimate for the metric was $20.6 million. Non-accrual loans to total loans were 0.05% at the quarter-end, down from 0.13% in the year-ago quarter.

However, the allowance for credit losses on loans to total loans was 0.97% on March 31, 2026, increasing 1 bp year over year. The ratio of annualized net loan charge-offs to average loans was 0.30%, up from 0.25% in the prior-year quarter.

Capital Ratios Improve, Profitability Ratios DeclineAs of March 31, 2026, the Tier I leverage ratio was 12.60%, up from 12.29% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 11.07% from 10.33% in the prior-year quarter.

In the reported quarter, return on total average assets was 1.62%, down from 1.69% in the year-ago quarter. Return on average equity was 13.22% compared with 15.82% in the prior-year quarter.

Share Repurchase UpdateIn the reported quarter, the company purchased 1.6 million shares of treasury stock at an average price of $51.57.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresCurrently, Commerce has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Commerce has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

CBSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. CBSH has a Momentum Style Score of A, and shares are up 8.4% over the past four weeks.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $4.12 per share. CBSH also boasts an average earnings surprise of +3.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CBSH should be on investors' short list.

As international travel accelerates ahead of major global sporting events across North America, Ultra Mobile (NASDAQ: TMUS) is making it easier for customers to stay connected at home and overseas. The international wireless leader just introduced Go Roam World Passes — flexible roaming add-ons designed for travelers who want reliable service around the globe without the stress of surprise charges or swapping SIMs.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260519786228/en/

Ultra Mobile’s new Go Roam World Passes give customers flexible options for staying connected while traveling internationally — whether for vacation, work or visiting loved ones overseas. With the 15-Day Pass offering 5GB of high-speed data for $10, customers can roam globally for as low as $2 per GB.

The launch comes as Ultra Mobile was recently recognized by BestPhonePlans.net as the “Top Pick for International Calling”, reinforcing Ultra’s position as the wireless brand built for people who live internationally connected lives.

“Ultra Mobile customers shouldn’t have to think twice before calling home or traveling abroad,” said Sharif Ailey, SVP of Indirect Sales at Ultra Mobile. “Now we’re extending that experience beyond international calling and texting to international roaming — with simple, affordable passes that help customers stay connected in more than 200 destinations worldwide.”

Introducing Go Roam World Passes

Ultra Mobile’s new Go Roam World Passes give customers flexible options for staying connected while traveling internationally — whether for vacation, work or visiting loved ones overseas. With the 15-Day Pass offering 5GB of high-speed data for $10, customers can roam globally for as low as $2 per GB.

New roaming passes include:

Go Roam World 5-Day Pass — $5 1GB high-speed data 100 talk minutes 100 SMS Unlimited incoming SMS Coverage in 200+ destinations Go Roam World 15-Day Pass — $10 5GB high-speed data 300 talk minutes 300 SMS Unlimited incoming SMS Coverage in 200+ destinations Ultra Mobile will also continue offering its existing Go Roam Mexico Data Pass, which includes 5GB of high-speed data in Mexico for 30 days. The pass is available as an add-on with any plan for $5 and is included on all Unlimited plans.

The new Go Roam World Passes are available exclusively to Ultra Mobile customers and can be added to any Ultra Mobile plan. Customers can even stack passes for longer trips abroad.

International by Design

Ultra Mobile has long focused on delivering more international value, flexibility and convenience for customers with global connections. From unlimited international calling to 90+ destinations, global texting to 200+ destinations and roaming benefits in Mexico and Canada included on select plans, Ultra Mobile makes it easy to stay connected across borders. With flexible prepaid plans, no annual service contracts and options like eSIM activation and Wi-Fi Calling, Ultra Mobile gives customers more ways to stay connected at home and abroad — backed by T-Mobile’s industry-leading network. The new Go Roam World Passes extend that experience even further with affordable roaming coverage in more than 200 destinations worldwide.

Recognized for International Value

BestPhonePlans.net recently named Ultra Mobile its Top Pick for International Calling, highlighting the brand’s strong international feature set and exceptional value for customers with friends, family and connections around the world. The recognition reinforces Ultra Mobile’s mission to deliver flexible, affordable ways for customers to stay connected globally.

Availability

Go Roam World Passes are available now through Ultra Mobile’s website, app and participating retail locations.

For more information, visit www.ultramobile.com.

Taxes & fees extra. Capable device required. Availability, speed & coverage varies. Ultra Go Roam World Passes must be activated within 360 days of purchase; unused talk, text, and data will expire at end of pass duration; not refundable. International features, including Go Roam Mexico Data Pass, are included on select plans; not for extended international use; primary usage must occur in U.S. See ultramobile.com for lists of countries and additional terms.

About T-Mobile

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information please visit: https://www.t-mobile.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20260519786228/en/

Peter Osvaldik, chief financial officer of T-Mobile US, Inc. (NASDAQ: TMUS), will present and provide a business update on Tuesday, June 2, 2026 at 12:30 p.m. Pacific Time (PT) at the 2026 Evercore TMT Global Conference.

A live webcast of the event will be available on the Company’s Investor Relations website at https://investor.t-mobile.com. An on-demand replay will be available shortly after the conclusion of the presentation.

To automatically receive T-Mobile financial news by e-mail, please visit the T-Mobile Investor Relations website, https://investor.t-mobile.com, and subscribe to E-mail Alerts.

About T-Mobile US, Inc.

As the supercharged Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile’s unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information please visit: https://www.t-mobile.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260526588761/en/

It has been about a month since the last earnings report for T-Mobile (TMUS - Free Report) . Shares have lost about 3.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is T-Mobile due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for T-Mobile US, Inc. before we dive into how investors and analysts have reacted as of late.

TMUS Q1 Earnings Beat Estimates on Strong Service Revenue Growth

T-Mobile reported first-quarter 2026 earnings of $2.70 per share, beating the Zacks Consensus Estimate of $2.06 by 31.07%. Earnings increased 4.7% from the year-ago quarter’s $2.58.

Total revenues of $23.11 billion topped the consensus mark of $22.96 billion by 0.63% and rose 10.6% year over year. The upside was primarily driven by strong service revenue growth and continued expansion in postpaid accounts and ARPA.

TMUS Posts Strong Service Revenue Growth

T-Mobile generated total service revenues of $18.83 billion in the first quarter, reflecting an 11.3% year-over-year increase. This growth was fueled by higher postpaid service revenues, which climbed 15% to $15.63 billion.

The expansion in service revenues was supported by an increase in postpaid accounts and higher average revenue per account (ARPA). Postpaid ARPA rose 3.9% year over year to $151.93, indicating sustained monetization of its customer base.

T-Mobile Drives Account Growth and ARPA Expansion

T-Mobile reported postpaid net account additions of 217,000 in the quarter, up 6% year over year, highlighting continued customer momentum. Total postpaid accounts reached 34.4 million at quarter-end.

Growth was driven by higher gross additions, including contributions from prior acquisitions and broadband offerings, partially offset by increased industry switching. As shown in the investor factbook (page 4), account growth continues to trend upward despite seasonal softness in sequential additions.

ARPA growth remained a key driver, supported by pricing optimization, increased customers per account and adoption of bundled services such as 5G broadband.

TMUS Profitability Adversely Impacted by Higher Costs

Operating income declined to $4.50 billion from $4.80 billion in the prior-year quarter, reflecting higher operating expenses. Total operating expenses rose to $18.61 billion from $16.09 billion.

Cost pressures were driven by the higher cost of equipment sales and increased depreciation and amortization, partly linked to network investments and merger-related impacts. Net income declined 15.2% year over year to $2.50 billion, primarily due to UScellular-related costs.

Despite these headwinds, the company maintained strong profitability metrics, supported by revenue growth and disciplined cost management in other areas.

T-Mobile Delivers Strong Cash Flow and EBITDA Growth

Core adjusted EBITDA increased 11.9% year over year to $9.24 billion, underscoring solid operating performance. The company also generated $7.22 billion in operating cash flow, up 5.5% from the prior year.

Adjusted free cash flow rose 5% to $4.6 billion, reflecting efficient capital deployment and strong underlying business fundamentals. These metrics highlight T-Mobile’s ability to convert revenue growth into cash generation.

Additionally, the company returned $6 billion to shareholders during the quarter through share repurchases and dividends, reinforcing its commitment to capital returns.

TMUS Balance Sheet and Capital Allocation Trends

T-Mobile ended the quarter with total assets of $214.67 billion and cash and cash equivalents of $3.52 billion. Long-term debt was $83.81 billion, reflecting ongoing investments and acquisition-related financing.

The company continues to allocate capital toward network expansion and acquisitions, including the UScellular wireless business. These investments are aimed at strengthening its competitive positioning and supporting long-term growth.

Management also increased its 2026 shareholder return authorization to $18.2 billion, signaling confidence in future cash flow generation.

T-Mobile Outlook Supported by Strong Momentum

Management raised its full-year 2026 outlook following a strong first-quarter performance. T-Mobile now expects postpaid net account additions of 950,000 to 1.05 million, reflecting continued customer growth momentum.  The company reiterated its expectation for full-year service revenue of approximately $77 billion, implying about 8% growth, with second-quarter service revenue projected at roughly $19 billion, up 9% year over year.

T-Mobile also increased its core adjusted EBITDA guidance to $37.1 billion–$37.5 billion, raising the lower end of the range by $100 million. Second-quarter core adjusted EBITDA is expected to be about $9.4 billion, implying 10% year-over-year growth.

 Adjusted free cash flow is now expected in the range of $18.1 billion to $18.7 billion for full-year 2026, also up $100 million at the low end. Capital expenditures are projected to remain around $10 billion. Overall, the updated guidance reflects sustained strength in postpaid growth, ARPA expansion and network-driven differentiation, positioning T-Mobile for another year of solid financial performance.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM ScoresAt this time, T-Mobile has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, T-Mobile has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerT-Mobile belongs to the Zacks Wireless National industry. Another stock from the same industry, Verizon Communications (VZ - Free Report) , has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Verizon reported revenues of $34.44 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.28 for the same period compares with $1.19 a year ago.

For the current quarter, Verizon is expected to post earnings of $1.28 per share, indicating a change of +4.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

Verizon has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

On June 01, 2026, we present a detailed DCF analysis for T-Mobile US Inc TMUS , a company that has experienced a challenging price performance with a year-to-date decline of 6.7% and a one-year drop of 19.9%. This analysis aims to provide insights into the intrinsic value of TMUS based on discounted cash flow models.

DCF Earnings-based intrinsic value of $307.85 vs current price of $187.53 (margin of safety: 37.4%) DCF FCF-based intrinsic value of $161.86 vs current price (second opinion: fair valued with -15.9% margin of safety) GF Score™ of 77/100 indicating a reliable assessment of the DCF inputs What Is TMUS Worth? DCF Earnings-Based Model The DCF earnings-based model for T-Mobile US Inc TMUS utilizes a two-stage approach to estimate the intrinsic value of the company. In the first stage, we project earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are as follows:

Parameter Value Current EPS (TTM, excl. non-recurring) $9.59 10-Year Growth Rate 20.4% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we expect EPS to grow at 20.4% per year, discounted at a rate of 11%. The terminal phase (Years 11-20) assumes a slower growth rate of 4%. The calculation summary is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 20.4%, discounted at 11% $154.09 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $153.76 Intrinsic Value Growth + Terminal $307.85 With the current price at $187.53 and the intrinsic value calculated at $299.69, TMUS appears significantly undervalued, presenting a margin of safety of 37.4%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, visit the TMUS DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based DCF model provides an alternative perspective on TMUS's intrinsic value, calculated at $161.86. Compared to the earnings-based model, the FCF-based valuation suggests a fair value status with a margin of safety of -15.9%. This discrepancy indicates that while the earnings-based model shows TMUS as significantly undervalued, the FCF model presents a more cautious view, suggesting that investors should consider both valuations in their analysis.

How Does GF Value™ Compare to the DCF Models? The GF Value™ of T-Mobile US Inc is calculated at $223.50, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the earnings-based DCF model indicates significant undervaluation, the FCF model suggests fair value, and the GF Value™ presents a middle ground. This divergence among the three models emphasizes the importance of a comprehensive analysis. For more information, visit the GF Value™ page.

What Does TMUS's GF Score™ Tell Us? The GF Score™ for T-Mobile US Inc is 77/100, ranking the stock based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006 to 2021). The following table summarizes TMUS's GF Score™ metrics:

Metric Rating GF Score™ 77/100 Financial Strength 4/10 Profitability 8/10 Growth 9/10 Valuation 10/10 Momentum 1/10 With a predictability rank of 3/5 stars, the DCF model's reliability for TMUS is moderate, indicating that while the model can provide valuable insights, investors should remain cautious. For more details, visit the TMUS stock page.

Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as TMUS, may yield less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future market conditions.

What This Means for Investors In synthesizing the results from the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that TMUS is primarily viewed as undervalued based on the earnings-based DCF model, while the FCF model suggests fair value. The GF Value™ provides a slightly higher valuation perspective, indicating that investors should consider multiple viewpoints before making investment decisions. For the full DCF analysis, visit the TMUS DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is TMUS's intrinsic value based on DCF?

Based on the DCF analysis, the earnings-based intrinsic value is $299.69, while the FCF-based intrinsic value is $161.86.

Is TMUS overvalued or undervalued?

The earnings-based DCF model suggests TMUS is undervalued, while the FCF model indicates it is fair valued. The GF Value™ also suggests a valuation that is somewhat higher than the current price.

How reliable is the DCF model for TMUS?

The DCF model's reliability for TMUS is moderate, with a predictability rank of 3/5 stars, indicating that while useful, investors should be cautious with the estimates.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

T-Mobile US, Inc. (TMUS) Presents at 2026 Evercore Global TMT Conference Transcript

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As a proud sponsor of America250, the Un-carrier joins the national Semiquincentennial commemoration and reflects on its 30-year history of helping American people, businesses and communities stay connected to what matters most.

BELLEVUE, Wash.--(BUSINESS WIRE)--T-Mobile (NASDAQ: TMUS) and America250, the national nonpartisan organization charged by Congress to lead the commemoration of the signing of the Declaration of Independence, today announced that T-Mobile will serve as an official sponsor of the nation’s 250th anniversary celebration. As the United States marks this historic milestone, T-Mobile joins organizations across the country in helping bring the Semiquincentennial to life through events, programs and experiences nationwide.

As the United States marks this historic milestone, T-Mobile joins organizations across the country in helping bring the Semiquincentennial to life through events, programs and experiences nationwide.

Share “250 years in, what still defines America is connection — to family, to community and to the ideas that shape what comes next,” said Jon Freier, Chief Operating Officer, T-Mobile. “That’s been T-Mobile’s mission for nearly 30 years, and it’s why this partnership with America250 means so much to us. This is a celebration that belongs to every corner of this country, and we’re honored to be part of it.”

“As we prepare to commemorate America’s 250th anniversary, partnerships that help connect and engage people nationwide are more important than ever,” said Rosie Rios, Chair of America250. “T-Mobile’s focus on innovation and connectivity will help us reach Americans in every corner of the country as we celebrate this historic milestone together.”

From families staying close across long distances, to small businesses serving their communities, to first responders relying on communications in urgent moments, connectivity has become an essential part of modern life. Since its founding as VoiceStream Wireless PCS in 1994, T-Mobile has grown into one of the country’s leading connectivity providers, helping expand access to wireless service and challenging the industry to deliver more value for American customers. Today, T-Mobile’s 5G network covers more than 332 million people in the US, supporting communications people rely on to work, learn, build, serve and stay connected.

T-Mobile’s partnership with America250 reflects the many ways the Un-carrier supports Americans and our communities across the nation, such as:

Keeping Americans connected. T-Mobile built the first nationwide 5G network and continues to invest in coverage and capacity across urban, suburban, rural and underserved areas. That work includes expanding access to reliable wireless, broadband, and satellite-enabled service for households, students, entrepreneurs and communities that have long needed more choice. Looking ahead, T-Mobile is also advancing the next generation of connectivity, including AI-enabled capabilities and the evolution toward 6G. Connecting first responders. Through T-Priority, launched in 2024, T-Mobile provides first responders with a dedicated slice of its 5G standalone network to give them more capacity, faster 5G speeds and the highest priority, helping them stay connected when communications are most critical. Serving military families and veterans. As a nationally recognized gold-level Military Friendly Employer®, T-Mobile recognizes the role active service members, veterans, and their families play in the country’s strength and prosperity. Verified Military and veteran families can save hundreds of dollars each year versus regular-rate Experience plans, and T-Mobile was an original signatory of the U.S. Chamber of Commerce’s 4+1 Commitment. T-Mobile is also a proud partner of the One Tribe Foundation, helping expand access to physical and mental healthcare for veterans. Investing in local communities. T-Mobile supports people across the nation through programs that help schools, small businesses and local organizations grow. Since the program’s launch in 2024, Friday Night 5G Lights has provided $8 million in funding and upgrades benefiting nearly 800 schools. Project 10Million has connected millions of eligible K-12 student households to free and reliable internet, and employee giving programs including Magenta Match and Volun-T help employees support causes that matter most to them. T-Mobile will celebrate America’s milestone birthday and this exciting partnership throughout the summer and fall, beginning with Independence Day festivities in Los Angeles and New York City and continuing through our proud sponsorship of the T-Mobile Home Run Derby during MLB All-Star Week. America250 events, and our support of them, will culminate with an America Innovates event in the nation’s capital in November.

For more information about T-Mobile, visit T-Mobile.com. To learn more about America250 and its national commemorative efforts, visit America250.org. To register for the America Innovates event hosted in partnership with Forbes, visit https://www.eventbrite.com/e/america-innovates-tickets-1982829617763?aff=a250website.

About T-Mobile

As the supercharged Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile’s unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information, visit https://www.t-mobile.com.

About America250

America250 is the national nonpartisan initiative working to engage every American in celebrating and commemorating the Semiquincentennial, the 250th anniversary of the signing of the Declaration of Independence. It is spearheaded by the congressionally-appointed U.S. Semiquincentennial Commission and its sole-supporting nonprofit organization, America250.org, Inc., together known as America250. This multi-year effort kicked off with America’s Invitation on July 4, 2023: a national public engagement campaign inviting all Americans to share their stories and their hopes and dreams for the future of this country. Leading up to July 4, 2026, America250 is working to provide opportunities for all Americans to pause and reflect on our nation’s past, honor the contributions of all Americans, and look to the future we want to create for the next generation and beyond. To learn more, visit America250.org, and follow us on X, Instagram, Facebook, LinkedIn, and TikTok.

More News From T-Mobile US, Inc.

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T-Mobile leads the telecommunications sector in postpaid account additions and maintains an industry-low churn rate. TMUS reported 217,000 net postpaid account additions in Q1 2026, up 6% YoY, with average revenue per postpaid account rising 3.9% to $151.93. The postpaid account churn rate was just 1.04%, indicating strong customer retention and satisfaction.

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Key Takeaways T-Mobile added 217,000 postpaid net accounts and more than 0.5 million broadband net additions in Q1 2026.TMUS raised 2026 postpaid net account guidance and expects 2.5%-3% full-year postpaid ARPA growth.Competition in the U.S. telecom market remains intense as rivals invest in wireless and broadband expansion. T-Mobile, US, Inc. (TMUS - Free Report) continues to benefit from healthy demand trends across wireless and broadband services. In the first quarter of 2026, the company added 217,000 postpaid net accounts, up 6% year over year. Total postpaid accounts reached 34.4 million. Superior network quality, compelling value offerings and enhanced customer experience are driving customer addition.

Postpaid Average Revenue Per Account (ARPA) increased 3.9% year over year to $151.93. Successful rate plan optimization, higher fee revenues, increased customer density per account and continued adoption of 5G broadband and T-Mobile for Business services are driving growth.

It continues to expand beyond traditional wireless offerings. The company added more than 0.5 million broadband net additions in the first quarter, supported by accelerating 5G broadband adoption and favorable customer experience metrics. Management highlighted that fixed wireless speeds remain ahead of peers while fiber partnerships and joint ventures are expanding the company’s addressable market in a capital-efficient manner.

Strong momentum prompted T-Mobile to raise guidance for 2026. The company expects postpaid net account addition of 950,000 to 1.05 million, up from prior guidance of 900,000 to 1.0 million. It expects full-year postpaid ARPA growth of 2.5-3%.

How Are Competitors Faring?T-Mobile faces competition from AT&T, Inc. (T - Free Report) and Verizon Communications, Inc. (VZ - Free Report) in the U.S. telecom market. AT&T continues to invest in fiber and 5G to expand advanced Internet reach and drive more households to buy wireless and home Internet together. In first-quarter 2026, the company reported 584,000 total fiber and fixed wireless advanced Internet customer net additions, including 512,000 consumer advanced home Internet net adds. Within that, AT&T added 273,000 fiber net adds and 239,000 AT&T Internet Air net adds. Postpaid phone net adds were 294,000, and postpaid phone churn was 0.89%.

In first-quarter 2026, Verizon added 55,000 postpaid phone net additions, the first positive first-quarter total since 2013, and management tied the year-over-year swing of more than 340,000 to a higher mix of new-to-Verizon gross additions and a shift away from relying on heavy promotions. Verizon’s broadband build continues to broaden its addressable market and create more room to sell converged offers over time. In first-quarter 2026, Verizon delivered 341,000 broadband net additions, including 214,000 fixed wireless access net additions and 127,000 fiber broadband net additions, bringing fixed wireless access and fiber broadband connections to about 16.8 million.

TMUS’ Price Performance, Valuation & EstimatesT-Mobile has declined 19.6% over the past year compared with the industry’s decline of 16.5%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company’s shares currently trade at 15.78, higher than the 11.06 for the industry.

Image Source: Zacks Investment Research

TMUS’ earnings estimates for 2026 and 2027 have declined over the past 60 days.

Image Source: Zacks Investment Research

T-Mobile currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Published in communications tech-stocks

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Nordson (NDSN - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this maker of adhesives and industrial coatings a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Nordson is 6.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 11.5% this year, crushing the industry average, which calls for EPS growth of 10.5%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Nordson is 5.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 4.8%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.1% over the past 3-5 years versus the industry average of 9%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Nordson have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Nordson a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Nordson well for outperformance, so growth investors may want to bet on it.

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nordson (NDSN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.

Nordson is a member of our Industrial Products group, which includes 182 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Nordson is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NDSN's full-year earnings has moved 2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, NDSN has returned 17.7% so far this year. In comparison, Industrial Products companies have returned an average of 15.6%. This shows that Nordson is outperforming its peers so far this year.

RBC Bearings (RBC - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 33.1%.

Over the past three months, RBC Bearings' consensus EPS estimate for the current year has increased 5.1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nordson belongs to the Manufacturing - General Industrial industry, which includes 42 individual stocks and currently sits at #170 in the Zacks Industry Rank. This group has gained an average of 12.4% so far this year, so NDSN is performing better in this area. RBC Bearings is also part of the same industry.

Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Nordson and RBC Bearings as they could maintain their solid performance.

Key Takeaways Allegion Q1 EPS of $1.80 missed estimates and fell 3.2% despite 9.7% revenue growth.ALLE Americas revenues rose 6.9% on non-residential and electronics strength.Margins declined as costs and expenses rose, though 2026 revenue guidance was raised. Allegion plc’s (ALLE - Free Report) first-quarter 2026 adjusted earnings of $1.80 per share missed the Zacks Consensus Estimate of $1.88. The bottom line decreased 3.2% year over year.

ALLE’s Revenue DetailsAllegion’s revenues were $1.03 billion, which increased 9.7% year over year. Organic revenues increased 2.6%, driven by price realization. Revenues beat the Zacks Consensus Estimate of $1.02 billion. While acquired assets boosted revenues by 4.8%, foreign currency had a positive impact of 2.3%.

ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:

Revenues from Allegion Americas increased 6.9% year over year to $809.9 million. The figure accounted for 78.4% of the quarter’s revenues. Our estimate for segmental revenues was $807.1 million. Organic revenues increased 4.5%, driven by solid momentum in the non-residential and electronics businesses.

Operating income for the segment was $215.1 million, up 1.8% year over year. Our estimate was $209.7 million.

Revenues from Allegion International were $223.7 million, up 21.5% year over year. The metric accounted for 21.6% of the quarter’s revenues. Organic revenues decreased 5.3%. Segmental operating income was $8.3 million, down 29.1% year over year.

Allegion’s Margin ProfileIn the quarter, Allegion’s cost of revenues increased 11.5% year over year to $579.1 million. Gross profit was $454.5 million, up 7.5% year over year, while the gross margin declined 90 basis points (bps) to 44%.

Selling and administrative expenses increased 14.6% year over year to $259.2 million. Adjusted EBITDA was $236.8 million, reflecting a year-over-year increase of 3.9%. The margin was 22.9%, down 130 basis points on a year-over-year basis.

Adjusted operating income increased 2.6% year over year to $218.9 million. The adjusted margin was 21.2%, down 150 basis points year over year. Interest expenses were $24.2 million, down 2% year over year. The effective tax rate (on an adjusted basis) was 20.1%, up from 16.1% in the year-ago quarter.

ALLE’s Balance Sheet and Cash FlowWhile exiting first-quarter 2026, Allegion had cash and cash equivalents of $308.9 million compared with $356.2 million at the end of 2025. Long-term debt was $2.03 billion, higher than $1.98 billion at 2025-end.

In the first three months of 2026, ALLE generated net cash of $101.3 million from operating activities, reflecting a decrease of 3.1% year over year. Capital expenditure was $21 million, in line with the year-ago period. For the first three months of 2026, the available cash flow was $80.3 million.

Allegion repurchased shares for $40.6 million. Dividends paid out totaled $47.4 million, reflecting an increase of 8.7% year over year.

Allegion’s 2026 OutlookThe company has raised its 2026 revenue guidance. Allegion expects revenues to increase in the range of 6-8% year over year, higher than 5-7% projected earlier.  ALLE continues to expect organic revenues to grow in the range of 2-4%.

Adjusted earnings are still projected to be in the range of $8.70-$8.90 per share. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%.

ALLE’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold).

DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.

Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.5%.

RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Nordson (NDSN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Nordson is a member of our Industrial Products group, which includes 181 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Nordson is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for NDSN's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that NDSN has returned about 17.9% since the start of the calendar year. Meanwhile, the Industrial Products sector has returned an average of 16% on a year-to-date basis. This shows that Nordson is outperforming its peers so far this year.

One other Industrial Products stock that has outperformed the sector so far this year is Ranpak Holdings Corp (PACK - Free Report) . The stock is up 20.3% year-to-date.

Over the past three months, Ranpak Holdings Corp's consensus EPS estimate for the current year has increased 26.5%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nordson belongs to the Manufacturing - General Industrial industry, a group that includes 41 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, stocks in this group have gained 6.7% this year, meaning that NDSN is performing better in terms of year-to-date returns.

In contrast, Ranpak Holdings Corp falls under the Containers - Paper and Packaging industry. Currently, this industry has 10 stocks and is ranked #195. Since the beginning of the year, the industry has moved -1.8%.

Investors interested in the Industrial Products sector may want to keep a close eye on Nordson and Ranpak Holdings Corp as they attempt to continue their solid performance.

Wall Street analysts expect Nordson (NDSN - Free Report) to post quarterly earnings of $2.82 per share in its upcoming report, which indicates a year-over-year increase of 16.5%. Revenues are expected to be $731 million, up 7% from the year-ago quarter.

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Nordson metrics that are commonly monitored and projected by Wall Street analysts.

It is projected by analysts that the 'Net Sales- Industrial Precision Solutions' will reach $337.18 million. The estimate points to a change of +5.8% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Advanced Technology Solutions' of $190.40 million. The estimate indicates a year-over-year change of +18.1%.

Based on the collective assessment of analysts, 'Net Sales- Medical and Fluid Solutions' should arrive at $213.44 million. The estimate points to a change of +5.2% from the year-ago quarter.

View all Key Company Metrics for Nordson here>>>

Over the past month, shares of Nordson have returned +1.3% versus the Zacks S&P 500 composite's +7.7% change. Currently, NDSN carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .