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Honeywell International Inc. (HON) Q2 2026 Earnings Call July 23, 2026 8:30 AM EDT

Company Participants

Mark Macaluso - Senior Vice President of Investor Relations
Vimal Kapur - Chairman & CEO
Mike Stepniak - Senior VP & CFO

Conference Call Participants

Deane Dray - RBC Capital Markets, Research Division
Nigel Coe - Wolfe Research, LLC
Scott Davis - Melius Research LLC
Andrew Obin - BofA Securities, Research Division
Nicole DeBlase - Deutsche Bank AG, Research Division
Jeffrey Sprague - Vertical Research Partners, LLC
Joseph Ritchie - Goldman Sachs Group, Inc., Research Division
Andrew Kaplowitz - Citigroup Inc., Research Division
Alexander Virgo - Evercore ISI Institutional Equities, Research Division
Christopher Snyder - Morgan Stanley, Research Division
Andrew Buscaglia - BNP Paribas, Research Division

Presentation

Operator

Good morning. Thank you for standing by, and welcome to the Honeywell Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's call is being recorded. I would now like to hand the call over to Mark Macaluso, Senior Vice President of Investor Relations. Please go ahead.

Mark Macaluso
Senior Vice President of Investor Relations

Thank you. Good morning, and welcome to Honeywell Technologies Second Quarter 2026 Earnings Conference Call. Joining me today are Honeywell Technologies Chairman and Chief Executive Officer, Vimal Kapur; and Senior Vice President and Chief Financial Officer, Mike Stepniak.

This webcast and the presentation materials, including non-GAAP reconciliations, are available on our Investor Relations website. From time to time, we post new information on the Investor Relations website that may be of interest or material to our investors. Our discussion today includes forward-looking statements that are based on our best view of the world and of our businesses as we see them today and are subject to certain risks and uncertainties, including those described in our recent SEC filings.

This morning, we will review financial results for Honeywell Technologies for

Key Takeaways Broadcom leads on scale, diversification, revenue visibility and a lower forward sales valuation.AI semiconductor bookings topped $30B, with major customer commitments extending through 2028.Cerebras posted 94% revenue growth but remains unprofitable, concentrated and capital-intensive. Cerebras Systems (CBRS - Free Report) and Broadcom (AVGO - Free Report) are beneficiaries of the AI infrastructure boom. Cerebras develops proprietary AI processors and complete AI computing systems, while Broadcom is a diversified semiconductor company with a dominant position in custom AI accelerators (XPUs), networking silicon and infrastructure software.

So, Cerebras or Broadcom, which has an edge now?

The Case for CBRS StockCerebras is a high-growth, specialized AI-compute company focused on wafer-scale processors and ultra-fast inference. The company’s differentiated wafer-scale architecture delivers inference speeds more than an order of magnitude faster than conventional GPUs for certain workloads. Partnerships with OpenAI and Amazon Web Services (AWS) further validate the company’s technology and expand its long-term growth opportunity. CBRS delivered impressive first-quarter 2026 growth with revenues surging 94% year over year to $193.4 million, driven by a 59% increase in hardware revenues and a 178% jump in cloud and other services revenues.

Cerebras’ partnerships with OpenAI and AWS are important competitive endorsements. The company’s OpenAI agreement covers 750 megawatts of inference capacity and is valued at more than $20 billion over several years. The AWS partnership could broaden access to enterprise customers by deploying Cerebras systems within AWS data centers. Nevertheless, CBRS remains dependent on a relatively limited group of customers, including OpenAI, G42, MBZUAI and AWS, which is a concern for investors.

However, Cerebras is not yet profitable and is expected to suffer from higher spending. The company reported a GAAP operating loss of $15 million and a net loss of $14 million in the first quarter of 2026. Although CBRS’ core operating loss narrowed to $3.5 million, it expects profitability to deteriorate as it invests heavily in data-center infrastructure. For the second quarter of 2026, Cerebras expects gross margin to decline to 36-38% in the second quarter from 47% in the first quarter due to rented infrastructure and accelerated cloud-capacity deployment.

The Case for AVGO StockBroadcom has been benefiting from rising AI revenues, driven by strong demand for XPUs despite lower margins on the chips that are hurting the revenue mix. AI semiconductor revenues reached a record $10.8 billion in the fiscal second quarter, suggesting a 143% year-over-year surge. Management expects it to rise to $16 billion in the fiscal third quarter, indicating more than 200% year-over-year growth.

AVGO management disclosed that AI semiconductor bookings exceeded $30 billion during the fiscal second quarter, nearly three times quarterly AI shipments. CEO Hock Tan stated that visibility now extends through 2028, supported by commitments from major customers including Google, OpenAI, Anthropic and Meta Platforms. Remaining Performance Obligations reached $164.6 billion, including commitments under new custom AI accelerator contracts. These agreements provide exceptional long-term revenue visibility.

Broadcom is not only supplying custom AI accelerators but also dominates AI networking with Tomahawk 6 Ethernet switches, Jericho fabric solutions, co-packaged optics and industry-leading SerDes technology. Networking represented almost 40% of AI semiconductor revenues in the fiscal second quarter, expanding the company's content per AI cluster.

However, Broadcom has guided for the gross margin to decline to 74% in the third quarter of fiscal 2026 from 77.1% in the fiscal second quarter due to a greater mix of lower-margin AI semiconductor revenues, raising concerns that profitability may not scale as quickly as revenues. AVGO expects its consolidated operating margin to remain around 67% in the fiscal third quarter despite a significant increase in the semiconductor revenue mix.

AVGO’s Earnings Estimate Revisions Go North, CBRS Loss ImprovesThe Zacks Consensus Estimate for AVGO’s fiscal 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating a 72.14% increase over 2025’s reported figure.
 

The consensus mark for Cerebras’ 2026 loss has improved from $1.14 per share to 89 cents per share over the past 30 days.

AVGO and CBRS’ Performance, Valuation DetailsBroadcom shares have outperformed Cerebras in the past month. While AVGO shares have returned 3.9%, CBRS has jumped 15.1%.

AVGO vs. CBRS Stock Performance
Image Source: Zacks Investment Research

Both Broadcom and Cerebras are overvalued, as suggested by the Value Score of D.

In terms of forward 12-month price/sales, Broadcom shares are trading at 12.14X, lower than Cerebras’ 24.62X.

AVGO and CBRS Valuation
Image Source: Zacks Investment Research

ConclusionBroadcom appears to be the stronger choice for investors seeking a more balanced risk-reward profile. While Cerebras offers compelling long-term upside through its differentiated AI architecture and high-growth partnerships, its business remains concentrated, capital intensive and unprofitable. Broadcom, by contrast, combines explosive AI growth with a diversified business model, strong cash generation, unmatched customer commitments extending through 2028 and a more reasonable valuation relative to Cerebras. Although margin pressure from AI chip mix remains a near-term headwind, Broadcom's scale, broad AI portfolio and long-term revenue visibility make it the more attractive AI infrastructure investment at current levels.

Broadcom currently carries a Zacks Rank #2 (Buy), while Cerebras has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With a yield of over 13%, AGNC Investment (AGNC -2.10%) is a stock that frequently pops up on dividend investors' radars. For those unfamiliar with AGNC, it is a mortgage real estate investment trust (mREIT) that owns a portfolio of agency mortgage-backed securities (MBS). Since these bonds are backed by government agencies, they carry essentially no default risk. However, the value of MBS can be greatly affected by movements in mortgage spreads and interest rates, and with the Fed now considering an interest rate hike rather than a cut, the environment has suddenly changed for AGNC.

Image source: The Motley Fool.

While AGNC noted the sudden shift in rate expectations with a new Fed chief, it believes the supply of new mortgages will be materially lower this year, while demand for MBS should remain high. As such, it thinks spreads can remain within 120 to 160 basis points of Treasuries and perhaps even tighten. Lower spread volatility is generally good for AGNC and can allow it to invest with more leverage.

Meanwhile, AGNC continues to generate strong net spread and dollar roll income (dollar roll is a hedging strategy used in MBS markets to avoid losses when MBS values decline), which is used to cover its dividend. For Q2, this came in at $0.40 per share, while it paid $0.36 per share in dividends. That was an increase from $0.38 a year ago. Its net interest spread was basically unchanged at 2%, as was its at-risk leverage of 7.4 times.

AGNC's tangible book value (TBV) also rose in the quarter, increasing by $0.20 per share to $8.58 at the end of Q2, up from $8.38 at the end of Q1. TBV is the value of AGNC's MBS portfolio, and it is the metric by which mREITs are normally valued. It said that as of the end of last week, its TBV was down about 1%, or a little less than 2% when accounting for its monthly dividend accrual.

Today's Change

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10.50

Should investors hold the stock? Mortgage REITs are always trying to balance the impact of mortgage rates, spreads over Treasuries, prepayments, and a host of other factors. AGNC management has done a solid job of this over the past couple of years, especially in generating solid income to cover its robust dividend.

Right now, the stock looks like it will continue to be a solid income generator. However, unless spreads tighten significantly, I don't see much additional upside beyond its current dividend payout, given that the stock trades well above its TBV per share.

Key Takeaways Public Storage is expected to post higher Q2 revenues but lower core FFO per share year over year.PSA completed the National Storage Affiliates acquisition, adding 1,000 properties and 550,000 units.PSA expects the deal to lift FFO per share through annual synergies over the next three to four years. Public Storage (PSA - Free Report) is slated to release second-quarter 2026 results on July 29, after market close. The quarterly results are expected to reflect an increase in revenues but a dip in core funds from operations (FFO) per share.

In the last reported quarter, this self-storage real estate investment trust (REIT) reported a core FFO per share of $4.22, surpassing the Zacks Consensus Estimate of $4.13. Results were backed by stable same-store occupancy, providing a steady operating base as lease-up assets added incremental growth.

Over the last four quarters, Public Storage outpaced the Zacks Consensus Estimate on all occasions, the average surprise being 1.55%. The graph below depicts the surprise history of the company:

On July 22, 2026, Public Storage announced completion of the acquisition of National Storage Affiliates Trust, adding more than 1,000 properties and 550,000 storage units. NSA shareholders received 0.14 Public Storage shares for each NSA share.

Public Storage expects the deal to boost FFO per share within the first year and eventually add about $0.35-$0.50 per share through $110-$130 million in annual synergies over three to four years. A separate joint venture will hold 313 former NSA properties, with Public Storage retaining a minority stake and managing the portfolio.

Let's dive deep to get an understanding of the factors that may impact Public Storage’s second-quarter 2026 results.

Factors at Play and Projections for PSA’s Q2 ResultsPublic Storage’s Q2 2026 results are likely to benefit from its strong brand, scale and PS Next operating platform, which supports digital customer engagement, pricing and cost efficiency. Stable occupancy, lower churn and improving move-in rent trends should have provided some support, while non-same-store properties, acquisitions, development projects and ancillary income are likely to have remained important growth drivers.

The Zacks Consensus Estimate for second-quarter revenues from self-storage facilities is pegged at $1.14 billion. This suggests an increase from the $1.12 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $90.8 million, up from the $82.4 million registered in the comparable period last year.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.21 billion. This indicates a 1% year-over-year increase.

However, same-store revenue growth may have softened as weaker rental trends from late 2025 flowed through year-over-year comparisons. Sun Belt supply pressure, the Los Angeles rent restrictions and the shift of certain property-tax benefits into the first quarter could also weigh on results.

PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the second-quarter core FFO per share has remained unchanged at $4.25 over the past two months. It indicates a marginal decrease year over year.

Here Is What Our Quantitative Model Predicts for PSA:Our proven model does not conclusively predict a surprise in terms of FFO per share for Public Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT sector — Digital Realty Trust (DLR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.

Digital Realty is slated to report quarterly numbers on July 23. DLR has an Earnings ESP of +2.30% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Key Takeaways International contract wins across Kuwait, Iraq and Suriname strengthen Halliburton's long-term growth.Technology-led drilling and automation solutions improve efficiency, margins and customer value globally.Middle East risks, softer service activity and uneven guidance keep near-term earnings visibility limited. Halliburton Company (HAL - Free Report) enters the second half of 2026 with a stronger international growth case and a still-uneven operating backdrop. The stock’s appeal rests on contract momentum, technology adoption and exposure to long-cycle energy investment.

The caution is equally clear. Middle East activity, mobilization costs and service-line variability keep earnings visibility from fully matching the stronger backlog story.

Halliburton Is Leaning on International DemandInternational demand is the backbone of HAL’s current thesis. The company delivered $3.4 billion of international revenues in the second quarter, its highest second-quarter international level in more than a decade, despite disruptions in the Middle East.

Image Source: Halliburton Company

Management sees demand for Halliburton’s services and technology across every major region. Offshore, unconventional and intervention markets are carrying the international opportunity, and outside the Middle East, Halliburton expects low double-digit international growth in 2026.

HAL's Wins Are Expanding the Multiyear BacklogRecent awards are broadening Halliburton’s opportunity set. The company secured a multi-year Kuwait Oil Company agreement tied to Ahmadi Innovation Valley, an integrated field management and engineering contract in Iraq, unconventional drilling work in Algeria and long-term projects in Saudi Arabia’s Jafurah field.

Offshore work adds another layer to the backlog. Halliburton won integrated well construction contracts for TotalEnergies’ GranMorgu deepwater development offshore Suriname, supporting a more diversified revenue base across national oil companies and global operators.

SLB (SLB - Free Report) remains a key global technology competitor in energy services, while Baker Hughes Company (BKR - Free Report) gives investors another reference point for oilfield services and equipment exposure. Against that peer backdrop, Halliburton’s wins matter because they extend relationships in multiple geographies rather than depending on one market cycle.

Halliburton's Technology Is Driving Better MixTechnology is central to the margin story. Halliburton is using ZEUS IQ, LOGIX automation, OCTIV automated pumping controls and Sekal’s closed-loop drilling capabilities to improve well placement, drilling precision, recovery and operating efficiency.

This matters because the company is competing on performance, not only price. In Norway, the closed-loop drilling solution helped deliver back-to-back record wells, while the newest ZEUS IQ release gives customers better treatment control in simul-frac operations.

HAL Still Faces Near-Term Execution RisksThe improved long-term setup does not eliminate near-term risk. Middle East operations in Iraq, Kuwait, Bahrain and other markets remain tied to shifting geopolitical conditions, and management’s guidance assumes current activity rather than a return to pre-conflict levels.

Third-quarter guidance also points to uneven revenue trends. Completion and Production revenues are expected to be flat to down 2% sequentially, while Drilling and Evaluation revenues are expected to decline 3-5%.

Profit visibility is still affected by moving equipment into new international projects. Lower software sales, weaker project management activity in Latin America, lower specialty chemicals activity and Middle East service-line weakness show that recovery is not evenly distributed.

What HAL’s Ratings Signal NowThe bottom line is that HAL has a better international growth base, but the stock still reflects a balance between improving momentum and incomplete earnings visibility. Contract wins, technology deployment and cash generation support the long-term case, while guidance and geopolitical risk argue for discipline.

The stock currently carries a Zacks Rank #3 (Hold). That rank indicates a more balanced near-term earnings revision profile than a clear buy signal, which fits a company with credible drivers but not yet clean acceleration.

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

HAL has a VGM Score of B, Value Score of B, Growth Score of C and Momentum Score of A. The Style Scores suggest solid value and very favorable momentum characteristics, while the Growth Score of C points to a less convincing growth profile than the headline award momentum alone might imply.

Stephen Schwarzman, CEO and Co-Founder of Blackstone Group, attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 23, 2025. REUTERS/Yves Herman/File Photo Purchase Licensing Rights, opens new tab

CompaniesNEW YORK, July 23 (Reuters) - Blackstone (BX.N), opens new tab is working to address the societal and environmental implications of artificial intelligence development, ​CEO Stephen Schwarzman said on Thursday, as opposition to data ‌center construction mounts in the U.S.

Blackstone, opens new tab and other private capital firms are pouring tens of billions of dollars into businesses and infrastructure that aim to increase compute capacity and ​run power-hungry models.

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But the otherwise deeply divided American electorate is united ​across party lines when confronted by the pace of data ⁠center construction, and only 14% would support one being built in ​their community for technology firms, according to a June Reuters/Ipsos poll.

Blackstone is ​working closely with portfolio companies including data-center businesses "to address the workforce, environmental and community implications of development through the creation of union jobs, workforce training, water-free cooling ​systems, expanded power generation and significant local economic investment," Schwarzman said ​on a conference call.

While the impact of AI could echo the industrial revolution, which ‌eventually ⁠raised living standards, Schwarzman said, "Major change of this type also creates anxiety due to the uncertainty of how the technology will evolve."

Data-center operator QTS, which Blackstone took private for $10 billion in 2021, said earlier this ​month that it ​had terminated a project ⁠in Virginia after years of planning. The project had faced strong local opposition and litigation, despite being approved by ​county authorities.

U.S. President Donald Trump's administration sees AI development ​as ⁠a race against China, but is also working to shield households from an attendant rise in energy costs.

Schwarzman, a longtime Trump donor, said he had personally been "spending a ⁠lot ​of time with leaders in the industry ​and various policymakers thinking about how to address these critical issues, while also preserving the ​advance of America's AI leadership."

Reporting by Isla Binnie; Editing by Nia Williams

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Isla Binnie reports on how company directors and executives manage stakeholder and shareholder interests, with a focus on compensation, corporate crises, dealmaking and succession. She also covers how politics, regulation, environmental issues and the broader economy affect boardroom discussions. Isla previously covered business, politics and general news in Spain and Italy. She trained with Reuters in London and covered emerging markets debt for the International Financing Review (IFR).

Basil writes stories across the U.S. finance file including banks, asset managers, payment firms, insurers, and exchange operators. He also covers initial public offerings on U.S. exchanges and venture capital funding.

Alphabet's latest earnings report has renewed optimism for companies like Lumentum supplying optical networking and data center components, even as investors scrutinize the rising cost of artificial intelligence infrastructure.

While some investors focused on Alphabet's higher capital expenditure plans, Stifel analysts said the company's results reinforced expectations that AI infrastructure spending remains robust.

“The first hyperscaler print this earnings cycle reinforces our view that the AI data center buildout is not decelerating,” the analysts wrote following Alphabet's quarterly results.

Alphabet's continued investment is viewed as a positive signal for suppliers of interconnects, optics and networking hardware used in AI data centers.

The company is one of several hyperscalers, alongside Microsoft and Amazon, that are investing heavily in expanding AI infrastructure.

According to Stifel, Alphabet's results support companies with significant exposure to AI data center deployments.

Stifel identified Lumentum Holdings, Celestica and Coherent as the hardware companies with the greatest exposure to Alphabet's spending.

The brokerage also pointed to Marvell Technology as an important supplier of optical digital signal processors, while Semtech was highlighted for its growing supply of active copper cable to Alphabet.

Monolithic Power Systems was also identified as having meaningful exposure through power-related products.

“This initial read is overwhelmingly positive for the space and should skew positive for the CapEx spend insights from the other hyperscaler reports to follow,” the analysts added.

The brokerage suggested investors could look at these companies ahead of earnings from other hyperscalers. Microsoft is scheduled to report results on July 29, followed by Amazon on July 30.

Lumentum shares gained after Barclays also upgraded the stock to Overweight, citing strong demand for the company's optical and laser components used in AI data centers.

Barclays also assigned a $1,000 price target while pointing to expectations ahead of Lumentum's fiscal fourth-quarter earnings in August.

Lumentum stock LITE gained 1.8% on Thursday's session.

Lumentum has increasingly positioned itself as a beneficiary of the AI infrastructure boom by expanding its portfolio of optical and photonic technologies.

According to Seeking Alpha analysts, the company has diversified beyond legacy telecommunications markets through acquisitions including Oclaro, NeoPhotonics, IPG Photonics and Cloud Light Technology.

These deals have expanded Lumentum's exposure to cloud computing, AI, machine learning and high-speed optical networking.

The company reported that its Cloud & Networking segment accounted for 85.7% of fiscal 2025 revenue, up from 58.9% in fiscal 2022 under its previous Telecom and Datacom reporting structure.

The analysts also highlighted several long-term growth opportunities, including Optical Circuit Switches, expanding optical scale-out deployments and the anticipated transition toward optical scale-up architectures beginning in 2028.

Lumentum reported fiscal third-quarter 2026 revenue of $808.4 million, up 90.1% year over year, supported by accelerating laser sales tied to AI infrastructure demand.

Looking ahead, the analysts said broader adoption of Co-Packaged Optics for application-specific integrated circuits could drive additional demand for Lumentum's next-generation ultra-high-power lasers beginning in 2027.

At the same time, the experts warned that Lumentum continues to face execution risks, including elevated debt levels, uneven cash generation and shortages of critical components that could affect future capacity expansion.

PANews, July 24 – Blockchain data analysis platform Bubblemaps stated that after BitMEX announced its closure, its platform token BMEX fell sharply, currently down about 95% from its previous level. According to BitMEX’s publicly disclosed tokenomics, approximately 75% of the total BMEX supply was originally planned for employee incentives, ecosystem development, and long-term reserves, but these tokens have never been distributed on-chain.

Data shows that in 2021, about 92% of the BMEX supply was locked in vesting contracts, with the remaining 8% distributed at token launch, including: 5% for airdrops; 3% for product and liquidity support.

Each allocation category previously corresponded to a separate address for receiving future unlocked tokens. However, to date, only one claim has been recorded: on November 2, 2022, the product and liquidity address claimed approximately 63.75 million BMEX, while the addresses for employee incentives, ecosystem growth, and long-term reserves have seen no token claims.

Bubblemaps noted that this does not necessarily indicate a problem, as the project may have subsequently adjusted its tokenomics, contracts, or distribution plan without reflecting these changes on-chain. But according to the previously public BMEX tokenomics design, the tokens in these allocation buckets have not yet actually entered on-chain circulation.

BitMEX, co-founded by Arthur Hayes and others, pioneered the perpetual contract trading model, having a significant impact on the development of the crypto derivatives market. Following the announcement of the closure, market confidence in BMEX was noticeably shaken.

Key Takeaways Acute Care and Behavioral Health growth to support UHS' Q2 revenues and admissions.Universal Health faces higher labor, benefits and supply costs that could pressure quarterly margins.Acute Care revenues are projected to rise 6.1%, with operating income expected to increase 17.5%. Hospital operator Universal Health Services, Inc. (UHS - Free Report) is set to report second-quarter 2026 results on July 27, 2026, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $5.66 per shareon revenues of $4.52 billion. 

The second-quarter earnings estimate witnessed no movement over the past 60 days. The bottom-line projection indicates a year-over-year increase of 5.8%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 5.5%.

Image Source: Zacks Investment Research

For the full-year 2026, the Zacks Consensus Estimate for Universal Health’s revenues is pegged at $18.54 billion, implying a rise of 6.8% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at $23.44, implying growth of 7.8% on a year-over-year basis.

Universal Health beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 9.5%. This is depicted in the figure below.

Q2 Earnings Whispers for UHSOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

UHS currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping UHS’ Q2 Results?Universal Health's performance is likely to have been boosted by higher patient days and admissions in both its Acute Care Hospital Services and Behavioral Health Care Services segments.

The Zacks Consensus Estimate for net revenues in the Acute Care Hospital Services segment is pegged at almost $2.55 billion, indicating 6.1% year-over-year growth. The consensus mark for the unit’s same-facility adjusted admissions indicates 2.8% growth from the prior-year quarter.

The Zacks Consensus Estimate for net revenues in the Behavioral Health Care Services segment is pegged at $1.98 billion, indicating a 5.6% increase from the prior-year quarter. The consensus estimate for the unit’s admissions indicates a year-over-year increase of 2.8%.

The Zacks Consensus Estimate for operating income from Acute Care Hospital Services indicates 17.5% year-over-year growth, while the same for Behavioral Health Care Services suggests a 0.9% decrease.

The positives are likely to have been partially offset by rising total operating expenses by nearly 6%, due to higher salaries, wages and benefits, as well as increased costs for supplies in the second quarter, making an earnings beat uncertain. We anticipate salaries, wages and benefits to increase nearly 4% year over year, while other operating costs are expected to escalate 9.3%.

Stocks That Warrant a LookWhile an earnings beat looks uncertain for Universal Health, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

ProMIS Neurosciences, Inc. (PMN - Free Report) has an Earnings ESP of +13.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ProMIS’ bottom line for the to-be-reported quarter of a loss of $1.45 indicates an 80% year-over-year improvement. It has witnessed one upward revision against no downward movement over the past 60 days.

Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter suggests 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. CAH’s revenues for the to-be-reported quarter are pegged at $65.61 billion, a 9.1% increase from the year-ago period.

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter indicates a 1.3% increase from a year ago. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 3.7%. The consensus estimate for ALC’s revenues is pegged at $2.77 billion, signaling a 7.3% increase.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share, an increase of 13% from the last quarterly dividend paid of $0.15 per share. This quarter's dividend will be payable on August 20, 2026, to shareholders of record as of August 5, 2026. 

About MGIC

Mortgage Guaranty Insurance Corporation (MGIC) (mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.

From time-to-time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website, and it intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

SOURCE MGIC Investment Corporation

Key Takeaways

Parsons’ expanding portfolio of mission-focused products – underpinned by artificial intelligence – complements and enhances the company's broader global solutions offerings across national security and critical infrastructure markets.Products including Cyber Fly-Away Kits, AresNXT™, Javelin®, DroneArmor™, TReX®, Peanut™, iNET®, BlueFly®, GOCaaS™, and OrbitXchange™ demonstrate the company's ability to innovate, commercialize, and scale technologies that support customer missions.Parsons continues to invest in product development and commercialization to deliver repeatable, high-value offerings that drive mission outcomes, long-term growth, and margin expansion.
CHANTILLY, Va., July 23, 2026 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN), a leading global solutions provider in the defense, intelligence, and infrastructure markets, today highlighted its growing portfolio of mission-focused products – underpinned by artificial intelligence (AI) – that complement and enhance the company's global solutions and help customers address evolving challenges.

Built on decades of operational experience and customer collaboration, Parsons' product portfolio strengthens the company's ability to deliver integrated solutions across complex mission environments. These technologies provide customers with agile, scalable capabilities that enhance decision-making, improve resilience, and support mission success while creating flexible offerings.

“Our innovation is rooted in continuous advancement and a relentless focus on customer outcomes,” said Ricardo Lorenzo, chief technology officer at Parsons. “Parsons is uniquely positioned to combine deep mission expertise, AI-powered solutions, and scalable technologies to solve complex customer challenges. Through our One Parsons approach, we are extending the strength of our existing solutions portfolio by connecting experts across transportation, cyber and electronic warfare, space and missile defense, water and environment, urban development, and critical infrastructure protection.”

The company’s One Parsons approach leverages global expertise to accelerate innovation, strengthen product development, and deliver greater value for customers. Technologies developed in support of one customer mission can be adapted, integrated, and scaled across multiple markets.

“As the global threat landscape and demands on critical infrastructure continue to evolve, Parsons is expanding a product portfolio built around two urgent missions: securing the infrastructure that communities and economies depend on, and delivering AI-enabled, mission-ready technologies that help protect lives,” said Aaron Wajsgras, vice president of product strategy and commercialization at Parsons. “Every offering is rooted in customer outcomes, turning proven innovation into repeatable solutions that help customers operate with faster decision-making, greater resilience, and a mission-critical advantage.”

Parsons' portfolio spans cyber operations, biometrics and identity management, electronic warfare, counter-unmanned aircraft systems (CUAS), space operations, critical infrastructure protection, border security, and transportation. These offerings are sold directly to customers or integrated into larger company solutions.

Domain Superiority: Cyber Fly-Away Kits, TReX®, and Peanut™
Parsons' national security portfolio includes AI-enabled technologies designed to help customers maintain an operational advantage across cyber, electronic warfare, and contested environments.

Cyber Fly-Away Kits provide rapidly deployable defensive cyber capabilities that support cyber hunt and mission assurance activities.TReX® delivers high-fidelity threat emulation and electronic warfare testing capabilities that help customers prepare for evolving threat environments.Peanut™ provides resilient positioning, navigation, and timing (PNT) capabilities that support operations when traditional GPS signals are degraded, denied, or unavailable.
Securing Critical Infrastructure: DroneArmor™, AresNXT™, Javelin®, BlueFly® and TAKaaS
Parsons helps customers protect global critical infrastructure, public venues, transportation systems, and high-consequence assets through a growing portfolio of security and identity management technologies.

AresNXT™ provides next-generation biometric identity management capabilities that improve security, interoperability, and operational efficiency across mobile and enterprise environments.Javelin® delivers secure identity enrollment and verification capabilities that support law enforcement, public safety, national security, and event security missions.Complementing these offerings, DroneArmor™ provides counter-unmanned aircraft system capabilities that help customers detect, identify, and respond to emerging aerial threats, supporting force protection and critical infrastructure security requirements around the world.BlueFly® search-and-rescue system helps first responders and search teams rapidly locate individuals in a difficult environment.TAKaaS offers comprehensive TAK (Tactical Assault Kit/Team Awareness Kit) development, hosting, integration, fielding, and training services unlocking the full potential of the TAK ecosystem and ensuring mission success and effective operations for militaries, security forces, first responders, and event personnel.
Space Solutions: GOCaaS™ and OrbitXchange™
Parsons expansive portfolio of space-focused technologies support resilient satellite operations.

OrbitXchange™ orchestrates automated access to global antenna networks enabling satellite communications, telemetry, tracking, and command services.GOCaaS™ delivers 24/7 operational satellite operations as a service for any satellite delivering automated telemetry, tracking, commanding, mission management, and data delivery within a secure environment, helping government and commercial customers improve efficiency, resiliency, and mission assurance across increasingly complex space environments. Infrastructure Solutions: iNET®
iNET® is a globally deployed platform that helps transportation agencies around the world connect vehicles, infrastructure, and operational systems to improve mobility, safety, and efficiency. Built on Parsons' deep transportation expertise, iNET® demonstrates how the company's One Parsons approach combines digital innovation, infrastructure delivery, and operational experience to help customers build and secure critical infrastructure worldwide.

Parsons’ smart-mobility and traffic-management expertise extend beyond North America into the Middle East, where the company has delivered major ITS, traffic management centers, and smart-city mobility programs across the UAE, Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait. These programs include integrated corridor management, centralized traffic operations centers, real-time monitoring and analytics, connected ITS devices, and multimodal coordination.

Parsons’ products trace their origins to customer missions around the world and are deployed across government, commercial, and critical infrastructure environments. From transportation agencies operating statewide mobility networks to security professionals conducting identity operations, cyber teams defending critical assets, and space operators supporting national security missions, the company’s solutions help customers solve complex challenges while preparing for future operational demands.

To learn more about Parsons' products and technology solutions, visit Parsons.com/products.

About Parsons:
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Please visit Parsons.com and follow us on LinkedIn to learn how we’re making an impact.

Forward-Looking Statements:
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government’s budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train or retain employees with the requisite skills, experience and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews and investigations, which may result in materially adverse judgments, settlements or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so by law.

Media Contact:                                        
Bryce McDevitt
+1 703.851.4425
[email protected]

Investor Relations Contact:
Dave Spille
+1 703.775.6191
[email protected]

MarketBeat Week in Review – 03/09 - 03/13Huntington Bancshares NASDAQ: HBAN executives said the bank delivered a strong second quarter of 2026, citing organic loan and deposit growth, higher revenue, improving profitability and completion of the Cadence systems conversion as key milestones.

Chairman, President and CEO Stephen Steinour called the quarter “exceptional,” saying Huntington is now at an “inflection point” after completing recent integrations and expanding its footprint. He said customer activity remains steady, commercial demand is broad-based and visibility on economic trends has improved since the prior quarter.

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Huntington Bancshares Is Chasing a Bigger Growth Story“Our core businesses are performing at a high level, our conversions are complete, and we are positioned to capture the benefits of our investments, as well as the recent partnerships and expanded footprint,” Steinour said.

Cadence Conversion Completed as Management Shifts Focus to Growth Brant Standridge, Huntington’s President of Consumer and Regional Banking, said the bank completed the Cadence systems conversion 235 days after announcement. He said the process included training and transitioning 4,500 colleagues onto Huntington systems, onboarding hundreds of thousands of customers, converting ATM and ITM locations and changing more than 4,000 signs.

Regional Banking Sector Near a Critical Inflection PointStandridge said Huntington grew deposits during the conversion weekend and in the weeks that followed, a result he described as unusual for a bank conversion. He said the company is retaining about 80% of maturing CD balances in the Cadence footprint, reducing higher-cost wholesale funding and brokered deposits, and increasing checking account growth.

Management said Huntington remains on track to achieve $365 million in Cadence cost synergies in the fourth quarter. Chief Financial Officer Zach Wasserman said the combined Veritex and Cadence run-rate expense synergy target remains $435 million by the fourth quarter.

Standridge also highlighted early revenue opportunities from the Cadence combination, including nearly $1 billion of expanding client commitments across energy, commercial real estate and auto floorplan businesses. He said Huntington has completed more than 10 capital markets transactions with customers in the Cadence footprint since closing, generating approximately $12 million of fees.

Loan and Deposit Growth Remain Central to Results Wasserman said average loans increased $15 billion, or 8.6%, sequentially in the second quarter. Normalizing for the day-count effect of the Cadence balance sheet in the first quarter, average loans increased $2.2 billion, or 1.2%, which he described as strong organic expansion.

Loan growth was led by commercial and industrial categories, including corporate and specialty areas. Wasserman cited activity from the financial institutions group, industrials, diversified businesses, corporate mortgage finance and Native American financial services. Commercial real estate balances declined modestly as planned, while auto production was lower.

Average deposits increased $18.8 billion, or 9.2%, sequentially. On an organic basis adjusted for the Cadence day-count effect, deposits grew $4 billion, or 1.8%, outpacing loan growth. Wasserman said primary banking relationships increased across customer segments, with consumer relationships up 4%, business banking up 5% and commercial up 8% year-over-year.

Deposit costs increased six basis points during the quarter, including about one basis point from the full-quarter impact of Cadence and five basis points from the legacy Huntington franchise.

Revenue Momentum Includes Strong Fee Growth Net interest income was $2.1 billion, up 8.5% sequentially, supported by what management called strong core-funded asset growth. Huntington’s net interest margin increased 10 basis points year-over-year but declined three basis points sequentially. Wasserman said the second quarter should represent the trough for net interest margin, with expected improvement from fixed-asset repricing, liquidity optimization and Cadence deposit portfolio actions.

Value-added fee revenues rose more than 60% year-over-year. Excluding the impacts of Cadence, the Janney Capital Markets business acquisition and last year’s sale of the corporate trust business, Wasserman said value-added fee revenue increased about 30% organically year-over-year.

In specific fee categories, payments increased 10% year-over-year, wealth management rose 12%, capital markets increased 46% and loan and deposit fees grew 19%.

Wasserman said adjusted pre-provision net revenue increased 12% quarter-over-quarter, while value-added fee revenues increased 15%. He also said Huntington generated 210 basis points of positive operating leverage on a trailing 12-month basis.

Outlook Emphasizes NII Pressure, Fee Upside and 2027 Targets Management’s full-year outlook drew scrutiny during the question-and-answer portion of the call after UBS analyst Erika Najarian noted that the stock opened down about 5% and asked about the unchanged outlook despite a lower net interest income expectation.

Wasserman said overall revenue remains robust, but the spread outlook has shifted more toward volume-driven growth. He said Huntington expects net interest income to be at the bottom end of its range or perhaps modestly below it, largely because of deposit cost pressure. At the same time, he said fee income is tracking toward the high end of guidance or potentially above it.

Wasserman said the company expects net interest margin to rise modestly into the low 320-basis-point range in the third quarter and into the mid- to high-320s in the fourth quarter. He also said management expects loans and deposits to grow sequentially in the second half of the year.

Executives reiterated longer-term targets for 2027, including earnings per share of $1.90 to $1.93 and return on tangible common equity in the 18% to 19% range. Wasserman said Huntington expects EPS growth of approximately 30% from the 2025 level, supported by organic growth, fee income expansion, revenue synergies and expense discipline.

Credit and Capital Remain Areas of Management Confidence Wasserman said credit performance remains strong and consistent with expectations. Net charge-offs are trending near the low end of the company’s guided range, and Huntington now expects charge-offs to be in the lower half of its 25- to 35-basis-point range for the year. He said criticized assets declined during the quarter, while nonperforming assets remain elevated because of government-guaranteed loan categories with “virtually no loss content” and downgrades of select commercial credits.

Huntington completed $310 million of its planned $550 million share repurchase program for 2026 year-to-date. Wasserman said the company expects to repurchase an additional $1.1 billion to $1.2 billion in 2027.

Steinour closed the call by saying Huntington has become a “stronger, more diversified super regional bank” through new markets, broader business mix and added capabilities. He said the company remains on track for its 2027 financial targets, with the fourth quarter expected to provide a clearer view of the earnings power of the combined franchise.

About Huntington Bancshares (NASDAQ:HBAN)Huntington Bancshares Incorporated NASDAQ: HBAN is a bank holding company headquartered in Columbus, Ohio, that provides a broad range of banking and financial services through its principal subsidiary, Huntington National Bank. The company's operations are centered on retail and commercial banking, and it serves individual consumers, small and middle-market businesses, and institutional customers.

Huntington's product offerings include traditional deposit and lending products, consumer and commercial loans, mortgage origination and servicing, auto financing, and business banking solutions.

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Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

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A month has gone by since the last earnings report for KB Home (KBH - Free Report) . Shares have lost about 8.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is KB Home 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 catalysts for KB Home before we dive into how investors and analysts have reacted as of late.

KB Home Q2 Earnings Meet, Revenues Beat on Built-to-Order ShiftKB Home reported second-quarter fiscal 2026 earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings declined 71.3% from $1.50 per share in the year-ago quarter.

Total revenues of $1.112 billion beat the consensus mark of $1.090 billion by 2% but decreased 27% year over year. Results reflected lower deliveries and pricing pressure, partly offset by progress in the company’s Built to Order model, which represented 73% of net orders.

KB Home’s Homebuilding HighlightsHousing revenues totaled $1.11 billion, down 27% from $1.52 billion in the prior-year quarter. The decline was primarily due to a 23% decrease in homes delivered and a 5% drop in the overall average selling price (ASP).

Homes delivered were 2,395 compared with 3,120 a year ago. The backlog conversion rate was 66%, down from 70% in the year-ago period, reflecting the strategic shift toward a higher mix of Built to Order homes. The ASP was $461,900, down from $488,700 a year ago. Sequentially, ASP rose 2%, supported by product and geographic mix.

Net orders declined 4% year over year to 3,317 homes. Net order value also fell 4% to $1.55 billion. Monthly net orders per community were four compared with 4.5 in the prior-year quarter. Management cited elevated mortgage rates, affordability pressures, weak consumer confidence, inflation and geopolitical uncertainty as factors that weighed on traffic conversion.

The cancellation rate improved to 12% of gross orders from 16% a year ago. The company ended the quarter with 280 communities, up 11% from 253 in the prior-year period.

The ending backlog was 4,526 homes, down 5% year over year. Backlog value declined 7% to $2.14 billion. However, backlog improved 26% sequentially. Management said the company expects sequential backlog growth to continue in the third quarter and anticipates returning to year-over-year backlog growth during that period.

KBH Margins Hurt by Pricing PressureHomebuilding operating income was $28.2 million compared with $131.5 million a year ago. The homebuilding operating income margin contracted to 2.5% from 8.6%.

Housing gross margin was 15.2% compared with 19.3% in the prior-year quarter. Excluding inventory-related charges of $5.6 million, adjusted housing gross margin was 15.7% compared with 19.7% a year ago.

The year-over-year margin contraction primarily reflected price reductions, higher relative land costs and reduced operating leverage. SG&A expenses were 12.7% of housing revenues compared with 10.7%, mainly due to lower operating leverage.

KBH’s Liquidity UpdateThe company ended the quarter with total liquidity of $1.12 billion, including $199.8 million in cash and $923.4 million of available revolver capacity. During the quarter, KBH repurchased 1.4 million shares for $75 million, bringing first-half repurchases to $125 million.

KBH Updates Fiscal 2026 GuidanceFor the third quarter of fiscal 2026, KBH expects deliveries of 2,600-2,800 homes and housing revenues of $1.20-$1.35 billion. Housing gross margin is projected between 16.0% and 16.6%, assuming no inventory-related charges.

For fiscal 2026, the company expects deliveries of 10,500-11,000 homes (from 10,000-11,500 homes) and housing revenues of $4.90-$5.30 billion (from $4.8-$5.5 billion). Housing gross margin is projected between 16.1% and 16.5%, assuming no inventory-related charges.

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

The consensus estimate has shifted 15.4% due to these changes.

VGM ScoresAt this time, KB Home has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a score 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 C. 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, KB Home has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Merck, the Dow's hottest stock, gets set to report Q4 financialsShareholders of Organon & Co. NYSE: OGN approved the company’s proposed merger agreement with Sun Pharmaceutical Holdings USA, Inc. at a virtual special meeting held Wednesday, according to preliminary voting results announced during the meeting.

The special meeting was convened solely to consider two proposals described in Organon’s proxy statement: adoption of the merger agreement and a non-binding advisory vote on merger-related compensation that may be paid to the company’s named executive officers.

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Merger Agreement Approved Lululemon Athletica Races to New High with S&P 500 EntryKirke Weaver, Organon’s General Counsel and Corporate Secretary, said the merger agreement is dated April 26, 2026, and is among Organon, Sun Pharmaceutical Holdings USA, Inc., referred to during the meeting as Sun Pharma USA, and Sun Pharma America Inc., a wholly owned subsidiary of Sun Pharma USA, referred to as Merger Sub, along with other parties.

Under the agreement described by Weaver, Merger Sub will merge with and into Organon, with Organon surviving the transaction as a wholly owned subsidiary of Sun Pharma USA. Weaver said Organon’s board of directors recommended that shareholders vote in favor of both proposals.

After the polls closed, Weaver said the Inspector of Election had informed him that the preliminary vote report showed the requisite votes had been cast in favor of adopting the merger agreement. Weaver declared the merger agreement proposal approved.

Advisory Compensation Proposal Also Passes Shareholders also approved, on a non-binding advisory basis, compensation that may be paid or become payable to Organon’s named executive officers in connection with the merger.

Weaver said the preliminary vote report indicated that the compensation proposal also received the required shareholder support. The company said final certified voting results will be reported in a Form 8-K filing with the Securities and Exchange Commission in accordance with applicable SEC rules.

Meeting Details and Quorum The meeting was called to order at 10:02 a.m. Eastern Daylight Time by Carrie Cox, Executive Chairman of the Board. Cox said members of Organon’s board and executive leadership team were present, along with representatives of PricewaterhouseCoopers LLP, Organon’s independent registered public accounting firm, and Michael Barbera, who served as Inspector of Election.

Weaver said Organon’s board set June 15, 2026, as the record date for determining shareholders entitled to vote at the special meeting. As of that date, 262,609,433 shares of common stock were outstanding and entitled to vote.

According to Weaver, the Inspector of Election reported that immediately before the meeting began, 195,671,381 shares of common stock were represented in person or by proxy, equal to approximately 74.5% of the voting power as of the record date. Weaver said that amount was sufficient to establish a quorum.

The polls opened at 10:01 a.m. Eastern Daylight Time and closed at 10:06 a.m. Eastern Daylight Time. Cox adjourned the meeting at 10:07 a.m. Eastern Daylight Time, stating that there was no further business to come before shareholders.

About Organon & Co. (NYSE:OGN)Organon & Co is a global healthcare company that was established as an independent, publicly traded entity following its spin-off from Merck & Co in June 2021. Headquartered in Jersey City, New Jersey, Organon focuses on delivering therapeutic solutions across women’s health, biosimilars, and established brands. The company’s creation reflected a strategic effort to concentrate on specialty pharmaceuticals and legacy products with proven patient impact.

In women’s health, Organon provides a broad portfolio of products addressing reproductive and gynecological conditions, including fertility treatments, contraception, and hormone replacement therapies.

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Should You Invest $1,000 in Organon & Co. Right Now?Before you consider Organon & Co., you'll want to hear this.

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Cullen/Frost Bankers (CFR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis financial holding company is expected to post quarterly earnings of $2.53 per share in its upcoming report, which represents a year-over-year change of +5.9%.

Revenues are expected to be $594.16 million, up 4.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Cullen/Frost?For Cullen/Frost, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.19%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Cullen/Frost will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Cullen/Frost would post earnings of $2.46 per share when it actually produced earnings of $2.65, delivering a surprise of +7.72%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Cullen/Frost appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Banks - Southwest industry, FinWise Bancorp (FINW - Free Report) , is soon expected to post earnings of $0.24 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -17.2%. Revenues for the quarter are expected to be $46.02 million, up 83.6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for FinWise Bancorp has remained unchanged. Nevertheless, the company now has an Earnings ESP of -8.33%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that FinWise Bancorp will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

NVR (NVR - Free Report) came out with quarterly earnings of $83.96 per share, missing the Zacks Consensus Estimate of $94.82 per share. This compares to earnings of $108.54 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -11.45%. A quarter ago, it was expected that this homebuilder would post earnings of $78.25 per share when it actually produced earnings of $67.76, delivering a surprise of -13.41%.

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

NVR, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $2.28 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.23%. This compares to year-ago revenues of $2.55 billion. The company has topped consensus revenue estimates two times over the last four quarters.

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

NVR shares have lost about 12.9% since the beginning of the year versus the S&P 500's gain of 9.6%.

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

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

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

Ahead of this earnings release, the estimate revisions trend for NVR was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $107.42 on $2.59 billion in revenues for the coming quarter and $371.11 on $9.59 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, M/I Homes (MHO - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.

This homebuilder is expected to post quarterly earnings of $3.17 per share in its upcoming report, which represents a year-over-year change of -28.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

M/I Homes' revenues are expected to be $1.18 billion, up 1.8% from the year-ago quarter.

SpaceX SPCX shares fell more than 3% on Thursday as investors awaited the company's delayed Starship test flight, a mission widely viewed as a key catalyst for the newly public space and artificial intelligence company.

The stock traded around $111.35 in early trading after tumbling 6.7% on Wednesday, extending a volatile stretch following its record-setting initial public offering.

Broader markets were also weaker, with futures tied to the S&P 500 and Dow Jones Industrial Average down 1.2% and 1.1%, respectively.

Investor attention is centered on SpaceX's 13th Starship test flight, scheduled to lift off from Texas later today.

The launch was originally planned for July 16 but was postponed for a week because of an engine issue.

The mission is expected to be closely watched by investors looking for evidence that the company can continue advancing its launch capabilities as it seeks to justify its premium valuation.

Shares have struggled since their initial surge following the IPO, with valuation concerns weighing on sentiment.

According to the information provided, SpaceX trades at roughly 40 times estimated 2026 sales, a multiple that investors have questioned given the company's size and current financial profile.

Bearish investors have continued to add to their positions as the stock declined below its IPO price.

According to Reuters, citing Ortex Technologies data through Tuesday, short sellers are sitting on an estimated $15.5 billion in paper profits since SpaceX's mid-June listing.

The stock has fallen below its $135 IPO price after reaching a post-listing high of $225.64 and dropped to a record low of $115.26 on Wednesday.

"There is no sign of short sellers taking profits on SpaceX," Ortex co-founder Peter Hillerberg told Reuters.

"If anything they are leaning in harder," Hillerberg added.

According to Ortex, approximately 360 million SpaceX shares, representing about 56% of the free float, were on loan through Tuesday, indicating sustained bearish positioning.

Chief Executive Elon Musk responded earlier this week with a warning aimed at investors betting against the company.

“Survival probability of firms who maintain significant short position in SPCX over time is very low,” Musk wrote in a post on X.

Analysts remain constructiveDespite the recent share price weakness, Wall Street analysts continue to maintain a largely positive outlook on SpaceX.

According to LSEG data, 27 of the 32 analysts covering the stock recommend buying it, while four have Hold-equivalent ratings and one recommends selling.

Supportive analysts argue that the company's Starlink satellite internet business, government launch operations, and Musk's history of attracting investor interest justify a valuation premium despite SpaceX reporting a net loss of nearly $5 billion last year.

Analysts have also identified Thursday's Starship test flight as a potential catalyst, with investors expected to assess the company's execution in its launch business ahead of its upcoming earnings report and the continued expansion of its public float.

Buried in Tesla’s earnings report’s cash flow statement is a $1.005 billion pretax unrealized gain on its SpaceX investment, equal to $763 million after tax.

While Tesla didn’t receive any cash or sell any shares, the after-tax gain accounted for roughly 68.5% of the company’s $1.114 billion GAAP net income. The revaluation of Tesla’s SpaceX investment is one of the quarter’s biggest contributors to the EV maker’s bottom line.

Even though Tesla didn’t sell a single SpaceX share or receive any cash from the investment.

SpaceX Bounty: Paper Gain, Not Cash ProfitThe gain resulted from an increase in the estimated value of its SpaceX investment, which it purchased earlier this year for $2.002 billion. The company owns less than 1% of SpaceX and does not control the aerospace company.

Tesla recorded a pre-tax $1.005 billion gain on the investment. Because the gain was non-cash, the company removed it when reconciling net income to operating cash flow and also excluded it from its non-GAAP earnings presentation.

The numbers put the investment into perspective. The pre-tax paper gain alone was more than two-and-a-half times Tesla’s operating profit (which was $398 million).

Tesla’s automotive, energy storage and services businesses collectively produced just $398 million of operating profit, while the accounting gain on its SpaceX investment added more than $1 billion before taxes.

So, nearly 70% of Tesla’s GAAP earnings came from a non-cash increase in the estimated value of its SpaceX stake—not from manufacturing or selling products.

Why Tesla’s GAAP And Adjusted Earnings Tell Different StoriesThe SpaceX gain was included in Tesla’s official GAAP earnings under accounting rules governing equity investments, even though the company did not monetize its stake.

The SpaceX gain also helps explain why Tesla reported different GAAP and adjusted earnings.

Tesla reported GAAP net income of $1.114 billion, which included the after-tax SpaceX gain. It also reported non-GAAP net income of $1.153 billion, excluding the $763 million after-tax SpaceX gain along with several other items, including $989 million of stock-based compensation expense, an $87 million digital-asset loss and certain tax adjustments.

Although Tesla removed the $763 million after-tax SpaceX gain, it added back an even larger $989 million stock-based compensation expense, along with other adjustments, resulting in slightly higher adjusted earnings.

Why Investors Should Watch ItThe disclosure doesn’t mean Tesla’s automotive business suddenly became less important, nor does it suggest the company generated an extra $763 million in cash.

Instead, it underscores how investments outside Tesla’s core operations can materially influence reported earnings under GAAP accounting. If SpaceX’s valuation continues to rise—or falls in future quarters—that stake could create meaningful swings in Tesla’s reported profit even if vehicle deliveries, energy storage deployments and operating performance remain largely unchanged.

For investors, the quarter served as a reminder that one of the biggest drivers of Tesla’s headline earnings wasn’t what happened inside its factories. It was the changing value of a minority stake in another Elon Musk company.

Photo courtesy: Rokas Tenys on Shutterstock.com

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Uber is laying off 10% of its community operations team, citing AI. Bloomberg/Getty Images Uber is cutting customer service roles — and it says artificial intelligence is the reason.

The ride-hailing company is laying off about 10% of its community operations team and asking remote employees to relocate to a city with an Uber office and work there three days a week, it said in a statement on Thursday. Bloomberg earlier reported the news.

AI presents "a massive opportunity for us to accelerate output, improve quality, and scale customer solutions at pace," Megha Yethadka, Uber's vice president of global community operations, wrote in a memo to the team on Wednesday.

"We've made some strides, but to unlock this potential, we need an effective organization to layer AI on," Yethadka wrote. "We cannot scale frontier technology on top of fragmented processes."

An Uber spokesperson said the company informed the team on Wednesday about the "structural changes we are making to simplify operations, strengthen in-person collaboration, and continue to embrace AI."

The layoffs add Uber to the list of companies that have cut jobs in the name of AI. Others this year include Block, IBM, and Snap.

Last month, Uber laid off a quarter of its human resources and recruitment staff. The cuts affected less than 1% of the company's 34,000-person global workforce and weren't connected to AI, Uber said at the time.

CEO Dara Khosrowshahi has said that Uber is slowing down hiring as it invests more in AI.

Have a tip? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

Uber ride-hailing Layoffs More Artificial Intelligence AI Artifical Intelligence Careers

He also acknowledged that the company remains “supply constrained” as AI demand continues to outstrip available computing capacity.

Enter Frozen v2Those comments help explain reports that Alphabet is developing Frozen v2, a next-generation AI chip designed to run Gemini models more efficiently.

According to The Information, Frozen v2 integrates parts of Gemini’s architecture directly into the hardware. Engineers reportedly believe the chip could process six to 10 times more AI tokens per unit of power than Google’s latest custom AI chips, potentially allowing the company to serve far more AI requests without a proportional increase in infrastructure.

The broader takeaway is that Google’s AI hardware strategy is increasingly being driven by demand rather than technological ambition alone. As Gemini adoption accelerates across Search, Cloud and enterprise products, the company is racing to build infrastructure that can keep up.

For investors, Frozen v2 represents more than another AI chip. It is Google’s attempt to solve a problem created by its own success: processing tens of billions of AI tokens every minute while easing growing compute constraints.

Image via Shutterstock

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by Thomas Wilde on Jul 23, 2026 at 8:46 amJuly 23, 2026 at 8:46 am

Amazon will begin to fold its Luna cloud platform directly into the Prime Video app via the new Games tab, in an effort to get word about Luna to Prime members. (Amazon Luna promotional image) Amazon announced today that it has updated some versions of its Prime Video app to include direct access to its cloud-based Luna gaming platform.

The business goal is to solve Luna’s awareness problem and bring new users to the platform. Many Prime members don’t know the gaming service is included with their membership.

Consumers in the US and UK who have both a Prime subscription and a Fire TV can now launch Luna directly from the Prime Video app, where it can be found in its own dedicated tab in the UI. Prime subscribers who launch Luna in the app will get direct access to a library of both casual and mainstream “AAA” video games for no additional cost and without having to exit the app.

“Effectively, we relaunched last October, taking a bunch of the value of Luna that had been behind a paywall… We pushed it into the Prime membership, as a way of providing great value and trying to grow our business,” Jeff Gattis, GM of gaming at Amazon, told GeekWire.

Players on Luna can stream an assortment of games to their TV or browser via Amazon’s cloud servers, using a smartphone as a controller if they don’t have a compatible gamepad. Luna’s current library ranges from established mainstream hits like Indiana Jones and the Great Circle, Dispatch, and Fallout 4 to an assortment of casual-friendly exclusive titles like Amazon’s own Courtroom Chaos.

(Amazon Luna press image) Since that relaunch, Gattis said, the company has “basically 5x’d” its player base.

“The question for us is, how do you build upon that?” he said. “How do we let 200 million-plus Prime members worldwide know that they have this great benefit where you can play $70 games inside your Prime membership at no additional cost? One of our biggest challenges today remains that people don’t know the [Luna] benefit exists.”

While Luna was previously available to Prime subscribers via web browser and a couple of other types of smart TVs, it was a standalone service that required users to seek it out on its own. By shifting it into its own tab on the Prime Video app, Amazon’s hope is to drive up awareness that, well, Luna is there at all.

“It’ll start on Fire TV, but obviously our end state is to roll out to more countries and more devices, both first-party and third-party,” Gattis said. “Eventually we’ll be everywhere that Prime Video is.”

Dispatch, a viral indie hit from 2025 about office romance at a superhero agency, has been a big hit on Amazon Luna. (AdHoc Studio image) The integration of Luna with Prime could also potentially bring back the largely-abandoned practice of video game movie tie-ins. Fans of this summer’s Masters of the Universe reboot can watch the film on Prime Video, then switch to Luna to play Masters of the Universe: Legends Unite, a strategic deckbuilding game that’s currently exclusive to Luna. This kind of transmedia synergy used to be a part of every big summer action movie, but it’s largely fallen by the wayside since the 2010s.

Luna originally debuted in 2020 as a subscription-based cloud service. Subscribers could pay a monthly fee for access to over 100 video games, which they could play through their browser by streaming them from Amazon’s servers.

Back then, Luna was Amazon’s entry into what was shaping up to be a publisher-driven “battle for the cloud,” with companies like Google and Nvidia all launching their own game streaming services. Over time, however, the cloud’s impact on gaming hasn’t matched its early hype.

More recently, the component crunch has driven up the price of consoles and graphics cards, and that plays into Amazon’s bet on Luna.

Gattis said the cloud has been “technology ahead of its time,” in part because the industry aimed it at the wrong people, pitching it as a direct replacement for consoles and gaming PCs.

“That’s a heavy lift to ask somebody like myself,” he said. “I’ve invested both emotionally and financially in my Series X console and my 5090 graphics card. I’m happy.”

Amazon is catering to everyone else: players unlikely to buy a gaming PC or a current-generation console, let alone the next generation of gaming hardware at even higher prices. For the first time, Gattis said, there are “a lot more people who are going to think about the cloud as a viable alternative to $1,500 hardware.”

Hayete Gallot, now executive vice president of Microsoft Security, speaks at a Microsoft event in France in 2024. (Microsoft Photo) GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.

AI has had an impact on just about every tech-product category, but especially security. Attackers are using AI; customers are looking to defend with AI. The goalposts keep shifting. “Agentic security” is now the holy grail, and Hayete Gallot, the newly minted executive vice president of Microsoft Security, is leading the charge toward it.

Gallot, a 16-plus-year Microsoft veteran who rejoined the company in February after a 1.5-year Google detour, replaced Charlie Bell, who came to Microsoft from AWS in 2021 and continues at the company as an individual contributor focused on engineering quality.

“Customers care about two things: solving for security and being able to afford it,” Gallot said when I asked during our interview this week why she came back to Microsoft.

“I am a problem solver. And an engineer at heart (and by training). Security is the most important problem right now — and Microsoft is the only place with all of the puzzle pieces to help our customers.”

Since her return, Gallot hasn’t been shy about shaking things up. As noted recently by The Information, at least nine corporate vice presidents who previously reported to Bell have left the company this year.

“We’re making changes to ensure we’re in the best formation to go after this opportunity,” she acknowledged.

“I’m motivated by doing the right thing for our customers, my teams, and tech outcomes,” she said. “I like to move quickly: days and weeks, not months and years, learning through execution, iterating rapidly, and adjusting based on real customer signals.”

The company isn’t starting from scratch. As of 2021, Microsoft claimed security was a $10 billion business for the company. By 2023, security had reached a $20 billion annual revenue rate, officials said.

Those claims haven’t been without controversy. Microsoft has built a huge business in finding and fixing security problems which some customers felt were of the company’s own making.

Microsoft has a wide-ranging and rather unwieldy security portfolio, encompassing identity management (Entra), endpoint protection (Defender), endpoint management (Intune), security information and event management (Sentinel), and compliance (Purview), among others.

In 2023, Microsoft introduced its Security Copilot set of AI analysis services that integrated with some of its existing security offerings. But a portal-based solution like Security Copilot doesn’t offer the kind of end-to-end coverage that an agentic security platform can, Gallot said.

The problem is that attackers are using agents, too. Customers need real-time insight into what’s happening in their environment, and the ability to act just as quickly, Gallot said.

Agentic security is about “taking the signals and turning them into a graph that is useful,” Gallot said. “If you’re trying to reason about 100 trillion signals, it’s not really effective.” The graph, she said, lets agents pick the right model for each threat and close the loop.

In practice, that means the system can quarantine a device or revoke access on its own, for example, rather than waiting for a human.

Microsoft’s core existing security products will continue to play a role as the landscape evolves, both spotting the problems and acting on them. Security Copilot isn’t going away in the process: “You’ll have Copilot and you’ll have agentic security,” she said.

The company’s new Agent 365 “control plane” — a central console for tracking every AI agent a company runs — fits in by letting customers see the “blast radius” of an agent, meaning everything a hijacked agent could reach, Gallot said. It’s similar in concept to Zero Trust, the “never trust, always verify” security model that limited how far an attacker could get with a stolen employee login, but applied now to agents rather than people.

So what exactly is this ‘agentic security’ thing? Microsoft has a whole website dedicated to the very topic.

Traditional AI security and agentic AI security are fundamentally different, Microsoft says. Agentic security doesn’t just protect models and training data; it also can protect tools, workflows, memory, connected systems and more. Because agents can take action, the potential positive and negative stakes are higher.

While AI has helped businesses make strides in finding and fixing vulnerabilities, it hasn’t gone much beyond that. Microsoft introduced its multi-model agentic scanning harness (MDASH) as its first step into the agentic security space, Gallot said.

The company used MDASH internally to boost finding and fixing Windows security issues, and it is now making it available to select customers in an expanded preview. MDASH will allow customers to use the best model for the right task to secure all different types of code bases, she said.

Microsoft is rumored to be readying a more comprehensive agentic security offering, of which MDASH is likely just one piece.

Microsoft is far from the only one doing this. AWS, Anthropic, and OpenAI are offering security tools on their platforms, and dedicated security vendors are building their own agentic platforms.

Microsoft has the advantage of scale in the enterprise. The question is whether Gallot and her new leadership team can turn that scale and emerging AI tools into both a bigger business for the company and better protection for its customers.

I keep buying Microsoft because it is the only hyperscaler I trust to own both ends of the AI supply chain: the software everyone already pays for, and the electrons that will decide who actually gets to run the models. That combination is why my finger keeps hitting the buy button, and it is why the recent drawdown feels like a gift rather than a warning.

Here is the setup. Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is down 17.39% year to date and 21.39% over the past year, yet the business underneath it just posted its fourth consecutive EPS beat with $4.27 against a $4.07 estimate. Revenue climbed 18.3% year over year to $82.89 billion. The market is punishing capex. I am accumulating.

The Three Data Points That Keep Me Buying First, the demand signal. Commercial remaining performance obligations reached $627 billion, up 99%. That is contracted, signed, non-cancellable future revenue that nearly doubled in a year. Azure grew 40%, and the AI business alone crossed a $37 billion annual run rate, up 123% year over year. Satya Nadella framed it plainly on the call: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”

Second, the quality of the compounding. Return on equity sits at 33.28%, operating margin at 45.62%, gross margin at 68.82%. Debt to equity is 0.176 and interest coverage runs 53.89x. This is a fortress funding a build-out. Shareholders got $12.7 billion returned in a single quarter, up 32% year over year.

Third, and this is the part that turns a good business into a moat: energy. By aggressively funding nuclear restarts, SMRs, and grid-permitting AI, Microsoft turns energy from an external existential risk into a proprietary moat, ensuring its data centers stay powered while turning the energy transition into a software-driven profit center. The LBNL projection has data centers consuming between 6.7% and 12% of U.S. electricity by 2028. Power is the bottleneck now. Microsoft is buying its way to the front of that line.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Why Not Amazon, Alphabet, or NVIDIA Amazon and Alphabet run capable clouds. Neither owns a roughly 27% stake in OpenAI worth about $135 billion, with IP rights extended through 2032 and a $250 billion incremental Azure services commitment from the counterparty. That is a structural revenue lock the other hyperscalers cannot replicate by writing a check. NVIDIA is the pick-and-shovel play, and I own picks and shovels elsewhere. I would rather own the landlord collecting the rent under a contracted backlog than the supplier selling into a replacement cycle.

The Real Risk Capex is the real concern. It hit $30.88 billion in a single quarter, up 84.39% year over year. A widely shared r/investing post argues AI infrastructure depreciates faster than railroads or fiber, with chips obsolete in about two years, and it landed hard because it is partly true. My answer: the $627 billion RPO is contracted revenue against those assets. If the backlog stops growing, I will reassess. It is still doubling.

Why I Keep Buying From Here Over ten years, Microsoft returned 695.26%. Long-term compounders tend to reward holders who look past single-quarter noise. I keep buying Microsoft because it is quietly building the one thing the AI era cannot manufacture on demand: guaranteed power under a signed contract.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Nvidia NVDA shares fell in trading on Thursday even after Alphabet raised its capital expenditure guidance for 2026, as investors appeared to rotate toward memory and semiconductor specialists instead of the largest technology stocks.

Nvidia stock declined 2.18% in trading, snapping a 3-day winning streak, while Micron Technology and SK Hynix rose 2.5% and 2.8%, respectively.

The moves followed Alphabet’s quarterly earnings, in which the Google parent increased its 2026 capital expenditure guidance to between $195 billion and $205 billion, up from its previous forecast of $180 billion to $190 billion.

The revised spending outlook eased concerns that investment in artificial intelligence infrastructure could slow.

Much of the additional spending is expected to go toward expanding AI infrastructure, including chips and memory, benefiting suppliers across the semiconductor industry.

However, Nvidia did not immediately participate in the rally.

Alphabet shares also came under pressure, falling almost 6.3% despite reporting stronger-than-expected earnings, as investors focused on the company's higher AI spending commitments.

The market reaction suggested investors may be shifting away from the largest technology companies and toward more specialized AI hardware providers.

A recent trend had seen investors sell semiconductor stocks in favor of large technology companies.

Alphabet’s latest spending guidance appears to have reversed part of that trade, prompting renewed buying interest in memory manufacturers such as Micron and SK Hynix while weighing on Nvidia.

Although Nvidia remains one of the world's leading AI chipmakers, its rapid rise to become one of the world's most valuable public companies has increasingly positioned it alongside Big Tech companies rather than smaller semiconductor names.

Other technology giants also traded lower on Thursday morning, with Amazon falling 4.9% and Meta Platforms declining 4.3%.

Analysts remain bullish while options signal cautionDespite Thursday's decline, longer-term sentiment toward Nvidia remains largely positive.

A Barchart analysis noted that the platform's Technical Opinion indicator rates Nvidia as an "80% Strong Buy," citing a strengthening short-term outlook.

Analysts also maintain an average price target of just over $304, supported by expectations for new semiconductor architectures and continued AI infrastructure spending.

However, the analysis also highlighted caution in the options market ahead of Nvidia's second-quarter earnings, scheduled for Aug. 26.

According to the analysis, options traders are paying elevated implied volatility premiums for out-of-the-money put options expiring shortly after earnings, suggesting increased demand for downside protection.

Separately, a Motley Fool report argued that Nvidia remains attractive despite concerns over the sustainability of AI spending.

The report noted that Nvidia's valuation metrics, including its price-to-earnings ratio and price-to-free-cash-flow ratio, are near five-year lows and below those of several other companies benefiting from AI spending.

It argued that Nvidia's products have applications beyond artificial intelligence, pointing to previous demand from cryptocurrency mining and suggesting future opportunities in areas such as quantum computing.

Key Takeaways T added 367,000 fiber customers as advanced home Internet connections rose 29.5% year over year.Converged households churn at roughly half the rate and deliver a high-single-digit revenue uplift.AT&T targets 70% of wireless traffic on open-capable platforms and $4 billion in annual savings. AT&T Inc. (T - Free Report) is trying to turn connectivity demand into a more durable growth model. Its strategy now leans on fiber, 5G and business network services rather than old media and video assets.

Execution matters. Fiber reach, wireless scale and edge demand can support revenues and margins, while capital intensity and competition remain checks.

AT&T Rides the Fiber Convergence TrendFiber is central to AT&T because it supports more than stand-alone broadband additions. In the second quarter of 2026, the company recorded more than 1 million advanced connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.

AT&T added 367,000 fiber customers in the quarter, while advanced home Internet connections rose 29.5% year over year. The convergence rate reached 42.5%, meaning a growing share of those Internet customers also had an AT&T postpaid wireless plan.

That mix matters because management indicated that converged households churn at roughly half the rate of stand-alone accounts and carry a high-single-digit average revenue per account uplift. AT&T ended the quarter with 38.6 million consumer and business fiber locations reached.

T Uses 5G to Broaden Internet ReachAT&T’s 5G strategy supports the fiber push rather than replacing it. The company uses millimeter-wave spectrum in dense areas and mid- and low-band holdings elsewhere to balance capacity and coverage.

Management has tied fiber and 5G together in a converged network that reaches more than 90 million customer locations with advanced Internet services over either fiber or 5G. Fixed wireless is one sign of that broader reach, with AT&T adding 279,000 fixed wireless customers in the second quarter.

T-Mobile US, Inc. (TMUS - Free Report) remains a relevant benchmark in wireless and home broadband competition. Its presence keeps pressure on carriers to pair network quality with attractive customer offers.

AT&T Pushes Toward AI-Ready NetworksAT&T’s edge and artificial intelligence-related network strategy is an emerging growth angle, not an immediate earnings reset. Management expects AI-ready connectivity needs to grow as users require lower latency, stronger uplink capacity and reliable traffic management.

The building blocks are dense fiber, 5G backhaul, spectrum depth, mobile edge computing zones and private 5G deployments. AT&T has cited more than 20 metro mobile edge computing zones live and more than 150 active private 5G and edge trials.

The planned EchoStar 600 MHz spectrum acquisition is intended to strengthen low-band uplink capacity. That could become more useful if AI workloads gradually lift backbone traffic and demand more reliable two-way network performance.

T Seeks Efficiency Through Open RANGrowth alone is not enough for AT&T’s investment case. The company also needs to run its network more efficiently as fiber, spectrum and 5G spending remain high.

Open radio access network, or Open RAN, is part of that effort. AT&T plans to use Ericsson technology to deploy a commercial-scale Open RAN buildout and aims to move 70% of wireless network traffic across open-capable platforms by late 2026.

The broader transformation plan includes vendor rationalization, artificial intelligence enablement, digitalization and lower legacy operating support costs. Management is targeting $4 billion in annual cost savings by the end of 2028. Verizon Communications Inc. (VZ - Free Report) offers another large-scale network comparison for investors focused on network cost discipline.

How AT&T’s Ratings Frame the Trend TradeAT&T offers exposure to several important connectivity trends, but the stock is not a clean growth call. Fiber convergence, fixed wireless adoption, edge workloads and Open RAN efficiency give the company a credible roadmap, while legacy declines and promotional wireless competition still limit improvement.

The stock currently carries a Zacks Rank #3 (Hold). Its Value Score of A points to a favorable valuation profile, but the Growth Score of D and Momentum Score of F show weaker signals on earnings growth characteristics and near-term price trend.

The VGM Score of C places the combined style picture in the middle. Investors may see value in T’s connectivity exposure and income profile, but the market is still waiting for stronger growth and momentum signals.

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