Track market-moving stories before they get noisy

Modine (MOD - Free Report) closed the most recent trading day at $138.79, moving -3.31% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.31% for the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.38%.

Prior to today's trading, shares of the heating and cooling products maker had lost 23.32% lagged the Auto-Tires-Trucks sector's gain of 7.66% and the S&P 500's gain of 0.87%.

The investment community will be closely monitoring the performance of Modine in its forthcoming earnings report. The company is scheduled to release its earnings on November 3, 2026. On that day, Modine is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 38.68%. Simultaneously, our latest consensus estimate expects the revenue to be $964.62 million, showing a 30.55% escalation compared to the year-ago quarter.

MOD's full-year Zacks Consensus Estimates are calling for earnings of $7.02 per share and revenue of $3.51 billion. These results would represent year-over-year changes of +39.84% and +10.22%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.22% lower. Modine is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Modine is presently being traded at a Forward P/E ratio of 20.45. This indicates a premium in contrast to its industry's Forward P/E of 12.2.

It's also important to note that MOD currently trades at a PEG ratio of 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.81 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Blue Bird (BLBD - Free Report) ended the recent trading session at $56.35, demonstrating a -1.43% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.38%.

Heading into today, shares of the school bus maker had gained 3.01% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.66% and outpacing the S&P 500's gain of 0.87%.

Market participants will be closely following the financial results of Blue Bird in its upcoming release. In that report, analysts expect Blue Bird to post earnings of $1.48 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the latest consensus estimate predicts the revenue to be $548.63 million, indicating a 34.02% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.89 per share and a revenue of $1.75 billion, signifying shifts of +11.64% and +18.34%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Blue Bird. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.92% lower. As of now, Blue Bird holds a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Blue Bird is presently trading at a Forward P/E ratio of 13.01. Its industry sports an average Forward P/E of 16.59, so one might conclude that Blue Bird is trading at a discount comparatively.

It's also important to note that BLBD currently trades at a PEG ratio of 0.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 17% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

The Pound Sterling rises by over 0.32% against the Japanese Yen as the pair clears the 50-day Simple Moving Average (SMA) of 210.77, putting in play a chance of testing the 211.00 psychological figure.

Coca-Cola just posted its sixth straight earnings beat and Jim Cramer is pounding the table, but a 35% rally changes the math for retirees counting on that dividend yield to do real work.

Jim Cramer backed Coca-Cola (NYSE:KO | KO Price Prediction) on Wednesday night’s Mad Money. In the lightning round, a caller asked him to choose between Broadcom (NASDAQ:AVGO) and Coca-Cola. Cramer answered: “Broadcom has been one of the greatest performers of all time, but so is Coca-Cola. I wouldn’t shoot Broadcom, and I would buy Coca-Cola.”

The call came one day after a strong earnings report. Coca-Cola shares have also risen 34.76% year to date, so retirees face a real question. Does the dividend still justify buying at $92.41?

A Raised Outlook Backs Up Cramer’s Call Coca-Cola reported third-quarter results on October 27, 2026. Adjusted EPS came in at $0.91, above the $0.88 estimate. That made it the company’s 6th consecutive EPS beat. Revenue reached $13.38 billion, ahead of the $12.93 billion estimate and up 7.4% year over year. Global unit case volume rose 5%, Coca-Cola Zero Sugar grew 16%, and comparable operating margin expanded to 32.9% from 31.9%.

Management also raised full-year guidance. Comparable EPS growth is now at least 11% (prior 9-10%), and free cash flow is expected to reach at least $13.0 billion (prior ~$12.4 billion), according to the earnings release filed with the SEC. CEO Henrique Braun said, “Our results this quarter demonstrate our system’s sustained momentum, giving us confidence in our updated full-year guidance.”

Dividend Coverage Leaves Room to Spare In the first three quarters of 2026, Coca-Cola paid $2.281 billion, $2.281 billion and $2.28 billion in dividends. CFO John Murphy said on the earnings call that “Year-to-date free cash flow was $11.4 billion, an increase versus the prior year.” That means dividends used roughly 60% of free cash flow, leaving room for buybacks and debt management. Net debt leverage is at 1.3 times EBITDA, below the company’s 2 to 2.5 times target range.

Verifying the Dividend King Streak Coca-Cola said the $8.8 billion it paid in 2025 marked its 63rd consecutive year of dividend increases. The payment history matches that claim. The quarterly payout rose from $0.42 in 2021 to $0.44, $0.46, $0.485, and $0.51, then to $0.53 with the declaration on February 19, 2026, a raise of about 3.9%. We covered that milestone in our look at Coca-Cola’s 64th straight raise. The next $0.53 payment goes out December 15 to holders of record on December 1.

Valuation Is the Price of Admission The annualized forward dividend of $2.12 works out to a yield of about 2.29%. The stock trades at roughly 30 times trailing earnings and about 75 times free cash flow. Guidance calls for at least 11% comparable EPS growth over the $3 earned in 2025, which puts the forward multiple near 28. Shares are up 35.23% over the past year and 89.79% over five years. Much of the good news is already reflected in the price, so new buyers start with a lower yield than investors who bought a year ago.

One Risk Every Retiree Should Track The biggest swing factor is Coca-Cola’s tax dispute with the IRS. Murphy said the company is “continuing to judiciously manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS.” A negative ruling could draw on cash that would otherwise go to buybacks or larger raises. Management also expects re-franchising Coca-Cola Beverages Africa to create an eight-point headwind to comparable net revenues and a two-point headwind to comparable earnings per share in 2027. In addition, the fourth quarter has six fewer days than a year ago.

Verdict: What Income Investors Need to Know About Cramer’s Call For retirees who value reliability, the data lines up with several of Cramer’s points. Dividends take up about 60% of free cash flow, guidance just went up, and the payout has grown every year for more than six decades. The cost is a starting yield near 2.3% and a premium multiple so that future returns will depend mostly on earnings growth. Watch two things: the IRS court decision and the next dividend declaration, which Coca-Cola has announced in February each of the past four years.

Contact [email protected] for any questions or corrections.

Listen to the audio version of this article (generated by AI).

Alphabet fails Wall Street’s new AI test… why Microsoft held up… the “peak AI spend” question… hot inflation, hotter GDP… Eric Fry on Brazil’s shock election
In yesterday’s Digest, we said last night’s earnings from Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL) would show us how hard the hyperscalers are still pressing the AI “gas pedal.”

The answer: very hard.

But Wall Street is now grading them on a new question – can they afford it? And judging by this morning’s trading, Alphabet failed badly.

As I write on Thursday, Alphabet is down about 12%, on pace for its worst day since March 2020. Microsoft opened higher before slipping about 1% as the Nasdaq dropped 1.5%. That’s hardly a victory lap. But an 11-point gap between the two tells you how differently Wall Street graded them.

To dig into the different reactions, let’s start with Microsoft…

Revenue rose 19% to $92.3 billion, and adjusted earnings of $4.89 per share beat estimates. Azure, Microsoft’s cloud platform, grew 48%, and management guided for 49% to 50% growth next quarter. Meanwhile, Microsoft’s contracted backlog of future business jumped 73% to $677 billion.

Most importantly, it did all this while still generating cash. Here’s CNBC:

The software giant has been rapidly building out data center infrastructure to meet artificial intelligence demand, while also maintaining positive free cash flow unlike its fellow hyperscalers.

Free cash flow – the cash left over after a company pays for its operations and investments – came in at $18.6 billion, and management expects it to stay positive for the full fiscal year.

Alphabet’s story is more complicated
The AI side is booming. Google Cloud revenue soared 103% to $30.7 billion, and the Gemini app just reached 1 billion users, making it the fastest-growing product in Google’s history.

The problem is what AI is doing to Google’s core business…

Search revenue came in at $63.4 billion, missing estimates. Google said its fast-growing AI Mode search earns less per query than traditional search ads. CEO Sundar Pichai framed that as a deliberate trade-off:

Just like our shift to mobile over a decade ago, we are focused on building the best Search user experience, followed by monetization.

In other words, Google is prioritizing winning users with AI first and figuring out how to profit from them later. Wall Street doesn’t want to wait.

Then there’s the bill…

Alphabet’s free cash flow swung to negative $9.1 billion. That comes one week after Meta Platforms Inc. (META) reported negative cash flow for the first time since 2012. Alphabet has also paused stock buybacks and is now selling new shares and bonds to help fund the build-out.

How did last night’s results influence fears of “peak AI spend”?
Both earnings reports included a detail that could have kneecapped the AI infrastructure trade: both companies spent less on capex than Wall Street expected last quarter.

However, both management teams quickly put fears of “peak AI spend” to rest.

Microsoft’s spending last quarter came in about $5 billion below its own forecast of “over $50 billion.” But management says that’s a matter of timing, not a pullback.

It expects more than $50 billion again this quarter, about $170 billion for the fiscal year, and faster spending in the second half as chip deliveries and data center capacity catch up.

As for Alphabet, it held its 2026 guidance at $195 billion to $205 billion – which implies a big fourth-quarter jump – and said it expects capex to increase significantly in 2027.

In fact, Alphabet said demand is so strong that it has started renting third-party computing capacity because it can’t build fast enough.

What does this mean for the wider AI trade?
Last night didn’t call AI demand into question. Nor did it signal a spending slowdown. Both companies are capacity-constrained and still pressing the gas.

But Wall Street is questioning how the hyperscalers will pay for it – and whether AI cannibalizes the businesses that fund it. Microsoft is paying from its profits. Alphabet is now leaning on stock and bond sales as AI nibbles at its search ads.

For the companies supplying the build-out – on the receiving end of all these hyperscaler dollars – last night’s spending outlook is good news. But as the response to Meta’s earnings last week showed, infrastructure stocks can still sell off when investors start to doubt whether that spending can last. We’re seeing a version of that this morning, with many chip stocks lower alongside Alphabet.

Our next test comes tonight, when Amazon.com Inc. (AMZN) reports after the close. We’ll report back.

The other big news today – hot prices, and an even hotter economy
In yesterday’s Digest, we noted that this morning’s PCE inflation report could shift expectations for the Fed’s next move. Here’s what we got…

The personal consumption expenditures (PCE) price index – the Fed’s preferred inflation gauge – rose 0.5% in September, its biggest monthly jump since March. That put annual inflation at 3.6%. The biggest culprit was energy, with gasoline and other energy goods jumping 9.2% in the month.

Core PCE, which strips out food and energy, rose 0.3% for the month and 3.1% for the year, up from 3.0% in August.

While hot, at least the numbers were roughly in line with forecasts.

Speaking of hot, third-quarter GDP grew at a 3.4% annualized pace, beating the 3.1% estimate and marking the fastest growth in a year.

And what accounts for the acceleration? You guessed it – AI. Business investment soared 19.4%, led by a 20.9% surge in equipment spending – much of it tied to the AI build-out.

That’s the same hyperscaler spending we just covered. And it ties back to yesterday’s Digest, where we looked at how AI is adding to inflation now while its productivity payoff comes later. This morning’s data showed both sides of that coin: the build-out is powering growth, but Main Street is getting the bill first.

Real disposable income – what households have left after taxes and inflation – fell for the first time since April. And the savings rate dropped to 3.8%, its lowest level since the end of 2022.

Here’s Bloomberg Economics:

September’s personal income and outlays report paints a troubling picture of the US consumer: Inflation came in hotter, while income growth failed to keep pace.

Squeezed by higher prices, consumers held real spending flat even as the saving rate declined.

As for the Fed, strong growth plus inflation stuck well above its 2% target makes it hard for the Fed to justify holding off on another hike. On that note, the CME Group’s FedWatch Tool puts the odds of at least one quarter-point hike in December at 80%.

Finally, let’s circle back to Brazil, where a shock election earlier this week could be setting up a very profitable trade.

Brazil’s shock election: why Eric Fry is calling it an overreaction
On Monday, Brazil’s stock market suffered one of its worst days in decades. We waited to cover it until we had analysis from one of our own experts. Now we do.

First, a quick recap…

On Sunday, Brazilian voters gave President Luiz Inácio Lula da Silva a fourth term, beating Flávio Bolsonaro in the runoff roughly 51.8% to 48.2%. Bolsonaro had won the first round, and on Sunday morning, prediction markets gave him about an 80% chance of victory.

So, on Monday, investors who had bet on a Bolsonaro presidency ran for the exits.

Brazil’s Ibovespa index plunged as much as 17%, triggering the country’s first circuit-breaker halt since March 2020, before closing down 14%. Here at home, the iShares MSCI Brazil ETF (EWZ) closed down 20%.

In the fund’s 26-year history, only one day was worse: March 16, 2020.

That EWZ number could sting for some of our readers
Last Tuesday, we highlighted senior analyst Brian Hunt’s bullish call on EWZ, which was up 21% since his July note. We’ll pass along Brian’s take when it crosses our desk. In the meantime, our global macro expert Eric Fry, editor of Fry’s Investment Report, has plenty to say, since he’s recommended a handful of positions with exposure to Brazil in his newsletters.

Eric explains that the market’s worry is fiscal. Brazil’s public debt tops 82% of GDP, and investors fear Lula will keep spending high, keeping interest rates elevated.

Meanwhile, critics call Lula a “socialist” and a “populist.” But Eric believes the market’s fear rests more on those labels than on Lula’s record:

Lula’s critics apply both labels to him, and they have a point. But when it counts, Lula has also chosen pragmatism over ideology…

In October 2002, Brazilian markets collapsed on fears that Lula would win his first presidential election, and the real sank to record lows. Then Lula installed an orthodox finance team, and investors spent the next several years unwinding their “Lula discount.”

Eric also points out that the Ibovespa Index soared by nearly 1,200% in U.S. dollar terms during Lula’s first two terms, from 2003 through 2010.

But investors aren’t convinced yet. The Ibovespa slipped Tuesday and Wednesday and is down again as I write on Thursday. And with Bolsonaro refusing to concede, more volatility could be ahead.

So, where does this leave investors with Brazilian exposure?
First, what you own matters.

For example, old-line Brazilian banks Itaú Unibanco (ITUB) and Banco Bradesco (BBD) finished Monday down roughly 24% and 29%, respectively, on fears of tax increases and tighter regulation. Meanwhile, e-commerce leader MercadoLibre Inc. (MELI) fell a more modest 8%, and has since bounced almost 5% off its Monday low.

Overall, Eric sees a buying opportunity:

Markets often fixate on narratives over substance. I believe [Monday’s] selloff is an overreaction and a buying opportunity…

I expect to see a lot more of the pragmatic Lula over the next four years than the populist one.

Maintain your position [in Eric’s recommended plays].

To find out which Brazil-exposed stocks Eric holds, plus the rest of his international picks, click here to learn about joining him in Fry’s Investment Report.

Summing it all up…
The hyperscalers are still pressing hard on the AI gas pedal, but Wall Street now wants proof they can pay for the fuel. On that note, all eyes turn to Amazon after the closing bell.

Meanwhile, hot inflation keeps the Fed’s foot hovering over the brake. And in Brazil, Eric sees a selloff driven more by fear than fundamentals – which is often where the best opportunities begin.

Have a good evening,

Jeff Remsburg

(Disclosure: I own GOOGL, MSFT, AMZN)

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Alphabet (GOOG) To Contact Him Directly To Discuss Their Options

If you purchased or acquired Alphabet securities between May 19, 2026 and July 16, 2026 and would like to discuss your legal rights, contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648.

Click here to participate in the action.

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) --

What’s Happening:

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Alphabet Inc. (“Alphabet” or the “Company”) (NASDAQ:GOOG) in the United States District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired Alphabet securities between May 19, 2026 and July 16, 2026, both dates inclusive (the “Class Period”). Investors have until December 1, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit. Allegation Details:

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that the Gemini 3.5 Pro was delivering disappointing training results; (2) that, as a result, the launch of Gemini 3.5 Pro would be significantly delayed; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. Next Steps:

If you purchased or otherwise acquired Alphabet shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Kirby McInerney LLP reminds Alphabet Inc. (“Alphabet” or the “Company”) (NASDAQ: GOOGL; GOOG) investors of the December 1, 2026 deadline to seek the role of lead plaintiff in a pending federal securities class action. Investors are encouraged to contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below to discuss your rights or interests in the securities fraud class action lawsuit at no cost.

[CONTACT THE FIRM IF YOU SUFFERED A LOSS]

What Is The Lawsuit About?

The lawsuit has been filed on behalf of investors who purchased securities during the period of May 19, 2026 through July 16, 2026, inclusive (“the Class Period”). The lawsuit alleges that Alphabet failed to disclose that: (i) the Gemini 3.5 Pro was delivering disappointing training results; and (ii) as a result, the launch of Gemini 3.5 Pro would be significantly delayed.

On July 16, 2026, Bloomberg reported that Google is “months behind schedule on delivering Gemini 3.5 Pro, its most powerful flagship AI model,” due to the Company’s ongoing coding efforts. The report stated, “[l]ate last month, Google updated the data being used to train Gemini in an attempt to improve [its] skills, but the results were disappointing.” On this news, the price of Alphabet shares declined by $16.46 per share, or approximately 4.4%, from $370.92 per share on July 15, 2026 to close at $354.46 on July 16, 2026.

On September 30, 2026 Google announced that it would release Gemini 4 Argon, which had already been rolled out “to a set of trusted cyber defenders through [its] Fairwind Program,” and Reuters reported that “Google no longer plans to release Gemini 3.5 Pro.”

[CLICK HERE TO LEARN MORE ABOUT THE LAWSUIT]

What Should I Do?

If you purchased or otherwise acquired Alphabet securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

What is the Lead Plaintiff Deadline?

Courts do not consider applications filed after this deadline. The lead plaintiff oversees the litigation on behalf of the class and may influence key decisions, including litigation strategy and settlement. Courts regularly appoint individual investors as lead plaintiffs, not only institutions. Learn more about the lead plaintiff process and eligibility requirements here.

[LEARN MORE ABOUT THE LEAD PLAINTIFF PROCESS]

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
[email protected]

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Amazon shares fell as much as 9% in after-market trading Thursday after the tech giant reported third-quarter earnings below Wall Street analysts’ expectations.

Earnings per share came in at $1.89 on a diluted basis, down from $1.95 in the year-ago quarter, while total revenue climbed 12% to $201.9 billion. The consensus forecast from analysts called for earnings per share of $1.97 and $202.25 billion in revenue.

In its earnings release, Amazon noted that the downturn in earnings resulted mainly from the $9.5 billion in pre-tax gains in the third quarter of 2025 related to investments in AI mega-startup Anthropic.

Along with the disappointing financials, Amazon also said its fourth-quarter revenue will be between $240 billion and $247 billion, suggesting it has a chance to fall below the Street outlook of $244.5 billion.

Amazon stock dropped below $230 after hours after surrendering 4% during the regular trading day. The after-hours decline improved to 6% but shares were still down ahead of a scheduled conference call with top execs at the top of the next hour.

Investors have been punishing tech stocks this week as they seek indications of returns on the sector’s heavy spending on artificial intelligence. A number of major players, among then Google and parent Alphabet, Meta, Microsoft and Nvidia, are collectively pouring hundreds of billions of dollars a year into the AI buildout.

Alphabet shares plunged 12% Thursday, a record downturn for the large-cap issue erasing $500 billion in market value, after the company missed third-quarter revenue targets and reported a slowdown in its core search business. Shares in Nvidia are down 6% over the past month amid mounting skepticism, and Meta stock has taken a 5% hit over the past week despite a solid quarterly earnings report last week.

Amazon’s web services unit, AWS, has been shelling out significant sums on AI, but CEO Andy Jassy said in the earnings release that the spending helped lead to 39% revenue growth in the quarter and a projected annual run rate of $184 billion. Revenue will grow by more than 40% in 2027 and ’28, he predicts. “Our AWS investment in functionality and infrastructure is working,” he said.

While bulls and bears will continue to argue about the ROI on AI spending, there were plenty of disconcerting signs across the full quarterly report. Advertising, which had been growing by more than 20% each quarter for the past few years, actually declined from the second quarter. It came in at $19.6 billion, a 12% uptick from the year-ago period. In its Prime Video business, which has been expanding its sports rights portfolio alongside other content investments, advertising has been a key element in the strategy since it launched across all Prime titles in 2024.

High atop the Amazon earnings release was a caveat reminding investors that Prime Day, a major tentpole for e-commerce, moved earlier this year and occurred in the second quarter in most large countries. Last year and in years past, it took place entirely during the third quarter. Had that shift not happened, Amazon estimated its revenue increase would have been about 4% higher.

Amazon's cloud-computing unit reported more rapid third-quarter growth than analysts had projected.

Revenue came in at $45.98 billion, up 39% year over year and above the $45.29 billion consensus among analysts polled by StreetAccount, according to a statement. Growth in the second quarter came in at about 37%.

"Our core compute and storage revenue grew at their fastest rates in several years," Amazon CEO Andy Jassy said on a conference call with analysts. The AWS growth rate was the highest since the fourth quarter of 2021.

Amazon remains the top cloud by revenue, but growth has also sped up at rivals Alphabet and Microsoft. On Wednesday Alphabet said the Google Cloud business, which contains infrastructure and Google Workspace subscriptions, more than doubled in the third quarter.

All the major clouds have been racing to build data centers that can accommodate high artificial intelligence demand. During the quarter, AWS announced plans to expand its portfolio of Nvidia graphics processing units that can handle AI workloads.

AWS also acquired data analysis startup DuckLabs and signed deals with Meta and OpenAI, according to the statement.

The AWS segment generated $17.77 billion in third-quarter operating income, up 55% and more than the $16.97 billion StreetAccount consensus.

The unit now accounts for almost 23% of Amazon's revenue, a record.

On Wednesday, Microsoft published its first earnings report that contained revenue from its Azure cloud in dollars. Azure is 72% the size of AWS, up from 58% two years ago.

AWS came before Azure and the Google Cloud Platform, with its first services appearing in 2006.

"With our continued pace of innovation, new core and AI functionality, enterprises wanting to run their core and AI workloads in AWS, and the amount of capacity that we're adding each year, we believe that AWS can grow north of 40% in each of 2027 and in 2028, and be a trillion-dollar revenue business in the next five to 10 years," Jassy said.

Google has been pumping up its cloud revenue by making its tensor processing units for AI available outside its own facilities. Now Amazon will adopt the strategy with its Trainium chips for training models, starting in late 2027.

"With Trainium demand so strong, customers continue encouraging us to make it available outside of AWS. We intend to do so late in 2027," Jassy said.

watch now

Amazon spent more than $77 billion on property and equipment in the third quarter, far more than analysts' estimates, while pursuing its effort to build data centers and fulfill demand for AI services. Anurag Rana and Poonam Goyal break down the numbers on "Bloomberg The Close.

Image Credits:Getty Images

Amazon reported its third-quarter earnings on Thursday and missed analysts’ expectations for both its total revenue and earnings per share. There were other murky numbers in the report that scared investors, too, including how much cash the company is burning through.

But the report did have a big, bright spot: Its cloud unit, Amazon Web Services, beat revenue expectations and grew a whopping 39% compared to the year-ago quarter.

Here are the numbers:

Net sales increased 12% to $201.9 billion. But analysts were expecting $202.2 billion, according to FactSet. Fully diluted earnings per share were $1.89. Analysts were expecting $1.97. AWS sales reached $45.98 billion. Analysts were expecting $45.29 billion. In addition, Amazon said that AWS operating income grew to $17.8 billion, compared with $11.4 billion in the third quarter of 2025. But here’s the biggest ouch of the report: Free cash flow fell to a negative of $42.4 billion for the trailing 12 months — meaning the company was spending far more cash than it generated. This compares to positive free cash flow of $14.8 billion for the trailing 12 months ended September 30, 2025.

The big spending was driven largely by Amazon’s investments in AI, the company said. With one quarter left in its fiscal year, Amazon reiterated that it still expects to end its 2026 with cash capital expenditures of about $220 billion.

To put that in perspective, the company forecast fourth-quarter net sales of between $240 billion and $247 billion. The fourth quarter is typically a retailer’s biggest, thanks to the holiday shopping season. That means Amazon expects to spend almost as much on capital expenditures, largely for AI, over the full year as it expects to bring in from sales in the fourth quarter.

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Amazon (AMZN - Free Report) came out with quarterly earnings of $1.89 per share, missing the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $1.95 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -5.97%. A quarter ago, it was expected that this online retailer would post earnings of $1.83 per share when it actually produced earnings of $1.88, delivering a surprise of +2.73%.

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

Amazon, which belongs to the Zacks Internet - Commerce industry, posted revenues of $201.94 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.08%. This compares to year-ago revenues of $180.17 billion. The company has topped consensus revenue estimates three times over the last four quarters.

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

Amazon shares have added about 10.3% since the beginning of the year versus the S&P 500's gain of 13.1%.

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.55 on $245.65 billion in revenues for the coming quarter and $12.69 on $829.47 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, Internet - Commerce is currently in the bottom 29% 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.

Booking Holdings (BKNG - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.

This online booking service is expected to post quarterly earnings of $4.48 per share in its upcoming report, which represents a year-over-year change of +12.6%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.

Booking Holdings' revenues are expected to be $9.56 billion, up 6.2% from the year-ago quarter.

Microsoft delivered robust Q1 results with 19% YoY revenue growth and strong AI-driven Azure momentum. MSFT's profitability showed minor gross margin softness, but operating margin expanded; Q2 guidance signals continued top-line strength but with margin pressure. CapEx remains elevated, with over $50B planned for Q2, justified by robust AI demand and accelerating Azure growth.

New York, New York--(Newsfile Corp. - October 29, 2026) - Kaplan Fox & Kilsheimer LLP is investigating potential securities violations against The Boeing Company ("Boeing" or the "Company") (NYSE: BA).

CLICK HERE TO RECEIVE MORE INFORMATION ABOUT THIS INVESTIGATION

If you are a Boeing investor and have suffered losses, or if you have information that could assist in the Boeing investigation, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

On October 27, 2026, Boeing shares fell over $20 per share, or 10.7%, after reporting third quarter 2026 results, including that 737 MAX production stabilization is taking longer than expected and cutting its full-year aircraft delivery outlook. This contrasts with statements the Company made on July 28, 2026 in connection with reporting second quarter results that Boeing was "on track to deliver 500 airplanes this year."

According to an article published in The Wall Street Journal on October 27, 2026, "Chief Executive Kelly Ortberg told investors that the step up to 47 jets a month on its 737 MAX production lines 'didn't go as smoothly' as the previous rate increase, a challenge that affects profitability" and "[t]he company doesn't expect to hit that more lucrative production rate until next year."

CLICK HERE TO LEARN MORE

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this investigation, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/the-boeing-company-ba-class-action/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321654

Source: Kaplan Fox & Kilsheimer LLP

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New York, New York--(Newsfile Corp. - October 29, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Bank of America Corporation ("Bank of America" or the "Company") (NYSE: BAC) on behalf of investors that purchased or otherwise acquired Bank of America common stock between August 1, 2025 and October 13, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in Bank of America and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than December 15, 2026 for an opportunity to be lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

On October 13, 2026, the U.S. Department of the Treasury announced coordinated enforcement actions against Bank of America's wholly owned subsidiary, Bank of America, N.A. ("BANA"), resulting in more than $1.2 billion in penalties and settlements for violations of Bank Secrecy Act ("BSA"), Anti-Money Laundering ("AML") and applicable economic sanctions laws due to longstanding and systemic compliance deficiencies. In its order, the Financial Crimes Enforcement Network, or FinCEN, states that BANA admits that it willfully violated the BSA and missed or delayed detecting and reporting more than $5 billion in suspicious activity.

Then, on October 14, 2026, Bank of America reported third quarter 2026 results showing that the $1.2 billion regulatory settlement charge reduced diluted earnings per share by $0.17. Following the enforcement announcements and the Company's disclosure of their impact on its third-quarter earnings, the complaint alleges Bank of America's stock price fell to an intraday low of $49.26 on October 14, 2026, before closing at $51.39, down 4.8% from the previous day's closing price of $53.96.

The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that systemic weaknesses in BANA's BSA/AML program caused it to fail to properly monitor trillions of dollars in transactions and to miss, delay, or file inaccurate or incomplete suspicious activity reports involving billions of dollars in suspicious activity.

CLICK HERE TO LEARN MORE

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/bank-of-america-bac-class-action/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321657

Source: Kaplan Fox & Kilsheimer LLP

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, /PRNewswire/ -- The DJS Law Group reminds investors of a class action lawsuit against Bank of America Corporation ("Bank of America" or "the Company") (NYSE: BAC) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

Shareholders who purchased shares of BAC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaintiff is not required to partake in any recovery.

CLASS PERIOD: August 1, 2025 to October 13, 2026

DEADLINE: December 15, 2026

CASE DETAILS: According to the Complaint, the Company made false and misleading statements to the market. Bank of America's Bank of America, N.A. ("BANA") subsidiary failed to maintain an adequate Bank Secrecy Act/anti-money laundering ("BSA/AML") program. The Company's failures resulted in billions of dollars in suspicious transactions to be missed or poorly reported. Based on these facts, Bank of America's public statements were false and materially misleading throughout the class period.

If you are a shareholder who suffered a loss, contact us to participate.

WHY DJS LAW GROUP? DJS Law Group's primary focus is to enhance investor return through balanced counseling and aggressive advocacy. We specialize in securities class actions, corporate governance litigation, and domestic/international M&A appraisals. Our clients are some of the largest and most sophisticated hedge funds and alternative asset managers in the world. The litigation claims of our clients are extraordinarily valuable assets that demand respect, focus, and results.

Join the case to recover your losses.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

CONTACT:
David J. Schwartz
DJS Law Group
274 White Plains Road, Suite 1
Eastchester, NY 10709
Phone: 914-206-9742
Email: [email protected]

SOURCE DJS Law Group LLP

Walmart (WMT - Free Report) ended the recent trading session at $121.25, demonstrating a +2.09% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.38%.

Coming into today, shares of the world's largest retailer had gained 14.29% in the past month. In that same time, the Retail-Wholesale sector gained 3.86%, while the S&P 500 gained 0.87%.

Market participants will be closely following the financial results of Walmart in its upcoming release. The company plans to announce its earnings on November 19, 2026. In that report, analysts expect Walmart to post earnings of $0.64 per share. This would mark year-over-year growth of 3.23%. Alongside, our most recent consensus estimate is anticipating revenue of $186.46 billion, indicating a 3.88% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $751.5 billion. These totals would mark changes of +9.09% and +5.38%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walmart. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.11% rise in the Zacks Consensus EPS estimate. Walmart is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Walmart is currently exchanging hands at a Forward P/E ratio of 41.31. For comparison, its industry has an average Forward P/E of 13.85, which means Walmart is trading at a premium to the group.

Meanwhile, WMT's PEG ratio is currently 4.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Supermarkets was holding an average PEG ratio of 1.87 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

General Motors will pay $220 million to 36 states to settle allegations that it illegally sold private driving behavior and location information to data brokers.

As part of the settlement, GM must get drivers’ express consent before it collects or shares their driving and location data — terms that are in line with separate agreements it previously reached with California and the Federal Trade Commission (FTC). This settlement does contain a new requirement that GM must have a third party assess the automaker’s compliance with the privacy program it has put in place.

The agreement announced Thursday settles a lawsuit brought by a coalition of attorneys general from 36 states that alleged GM had sold the information to data brokers, which in turn then sold it to insurance providers.

“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” GM said in an emailed statement. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.” 

The settlement comes more than two years after a New York Times report showed how GM and OnStar collected, used, and sold drivers’ precise geolocation data and driving behavior to third parties, including data brokers LexisNexis and Verisk. The data was collected through GM’s Smart Driver program, a free feature contained within its connected car apps that tracked and rated driving behaviors and seat belt use. Data brokers sold this information to insurance providers, which could affect customers’ rates, the NYT reported at the time.

GM discontinued Smart Driver in 2024, but that didn’t stop legal action. In January, the FTC finalized an order that bans GM and its OnStar telematics service from sharing certain consumer data. The FTC settlement, as well as the multistate one announced Thursday, also requires GM to be more transparent with its consumers and receive their explicit consent for certain collection.

The company now says it is focused on protecting the privacy of its customers and will no longer sell vehicle information that can be linked to an individual, their vehicle location, or how they drive. However, GM may still disclose anonymized data not tied to an individual with certain partners. GM has also updated the language in its privacy policy and created a consumer-facing Privacy Center.

The settlement and mandated changes to how GM handles customer driving data come as more sensor-laden vehicles equipped with computing power enter the market. Automakers have made large bets on software-centric vehicles that drivers and passengers can interact with and connect with other digital apps such as their calendar, messages, and email.

For instance, GM is adding a personal AI assistant to OnStar, its 30-year-old safety and roadside assistance service. Cameras on the vehicle will be connected to the software to offer live views as well as crash and safety recordings. Users will also be able to use voice to control certain functions on the vehicle, including climate, and ask questions about any specific vehicle feature.

The automaker emphasized its privacy protections when it announced the new assistant during its GM Forward event in October. The company said customers will have the ability to decide what data is shared and that the recordings have time limits and are encrypted. GM said it and OnStar cannot access Connected Camera recordings. Customers will also be able to manage permissions. However, customers who opt not to share their data will likely have limited access to certain features, according to GM.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.

You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.

Starbucks Corp (NASDAQ:SBUX) reported financial results for the fourth quarter of fiscal 2026 after the market close on Thursday. Here’s a rundown of the report.

Starbucks stock is seeing increased attention. What’s pushing SBUX stock? Starbucks Q4 HighlightsStarbucks reported fiscal fourth-quarter revenue of $9.14 billion, missing analyst estimates of $9.23 billion. The coffee giant posted adjusted earnings of 80 cents per share for the quarter, beating estimates of 72 cents per share, according to Benzinga Pro.

Consolidated net revenue was down 4% on a year-over-year basis as global comparable store sales climbed 7.2%, driven by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions. Comparable store sales were up 7.9% in North America and increased 0.9% internationally.

“We had a terrific quarter and a great year driven by our focus on the fundamentals and what has always set Starbucks apart: exceptional coffee, a moment of connection and a world-class customer experience,” said Brian Niccol, chairman and CEO of Starbucks.

“This gives me confidence our performance is durable. Back to Starbucks started as our turnaround plan. Now, it’s our growth plan.”

Starbucks opened 303 net new stores in the quarter and ended the period with 41,607 total locations. The company said it had approximately $3.68 billion in cash and cash equivalents at quarter’s end.

Starbucks expects consolidated net revenues to decline by approximately 1% in fiscal 2027. The company also guided for U.S. comparable sales growth of approximately 4%. Starbucks sees fiscal 2027 adjusted earnings of $3.15 to $3.25 per share versus estimates of $3.14 per share.

Starbucks’ board declared a cash dividend of 63 cents per share, payable on Nov. 27 to shareholders of record as of Nov. 13.

Management is currently discussing the quarter on an earnings call that kicked off at 4:15 p.m. ET.

SBUX Price ActionStarbucks shares were down 0.11% in after-hours, trading at $105.50 at the time of publication on Thursday, according to Benzinga Pro.

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Starbucks (SBUX +2.24%) grew U.S. comparable coffeehouse sales 7.7% in its fiscal fourth quarter, but bigger checks did most of the work. Shares were flat in early after-hours trading. The profit recovery is real, but the traffic growth that made the turnaround convincing is fading, and management expects slower sales in 2027.

Key NumbersU.S. comparable coffeehouse sales: up 7.7% year over year.Global comparable transactions: up 1.8%, versus 3.2% for full fiscal 2026.Operating margin: 10.8% GAAP and 14% non-GAAP, up from 2.9% and 9.4%.Fiscal 2027 guidance: non-GAAP EPS of $3.15 to $3.25, versus $2.72 in fiscal 2026.What It MeansSales growth now comes mostly from people spending more per visit. U.S. average ticket rose 5.2%, more than double the gain in visits, and the release credits mix, food add-ons, pricing, and delivery across North America. Those levers fade as the company laps them, while more visits are what compound over time.

SBUX Starbucks$105.51+$2.31 (+2.24%)

NASDAQ · As of 4:00 PM ET 10/29/26

Under GAAP, much of the margin jump came from smaller restructuring charges, and those charges keep coming. Starbucks closed about 250 more North American coffeehouses in September, and its 2027 outlook already sets aside more. Still, the core gain holds up. North American store operating costs fell 2.2 points as a share of company-operated revenue because sales outgrew them.

The 2027 guide trades growth for margin. Management expects North America comparable sales growth of about 4%, well below this year's pace. Earnings should still climb as margins widen, though an extra week pads the total.

What to Watch NextWatch whether U.S. transactions speed up again next quarter. If visits stay soft while ticket does the lifting, even the 4% comp target could look stretched.

David Kretzmann has positions in Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

The coffee chain beat expectations on a key sales metric, but its stock was still moving lower.

Starbucks forecast annual profit above expectations, signaling that cost cuts and operational changes under CEO Brian Niccol’s two-year turnaround efforts are taking root.

Niccol repeatedly told investors on the earnings call that his “Back to Starbucks” strategy is no longer a turnaround, but a plan for growth.

The company said it aims to deploy about $1 billion towards share repurchases.

CEO Brian Niccol repeatedly told investors on the earnings call that his “Back to Starbucks” strategy is no longer a turnaround, but a plan for growth. Bloomberg via Getty Images Niccol has spent the past two years simplifying menus, improving staffing levels, and reducing wait times as part of his “Back to Starbucks” turnaround, helping the coffee chain achieve stable sales growth, although investors have been increasingly focused on whether the company can restore profitability.

Starbucks has been addressing its costs through restructuring, including layoffs and store closures, aiming to offset the nearly $500 million in labor investments as part of the overhaul.

Niccol said the coming year will have a focus on tech and modernization, listing as examples an AI system to assist baristas in taking drive-through orders, as well as systems that could “recognize participating customers as they arrive, present personalized digital menus and make payment more effortless.”

The Seattle-based company forecast annual adjusted earnings per share of $3.15 to $3.25, compared with analysts’ expectation of $3.14 per share, according to data compiled by LSEG.

Niccol said the coming year will have a focus on tech and modernization. Starbucks forecast annual profit above expectations. LightRocket via Getty Images The world’s largest coffee chain reported fourth-quarter global same-store sales growth of 7.2%, which surpassed analysts’ expectations of a 5.4% rise. Adjusted earnings per share came in at 80 cents, above the 72-cent estimate.

Starbucks closed its deal with Boyu Capital to ​sell control of its Chinese operations earlier this year, valuing the business at $4 billion, intending to jump-start growth in the region, the hit from which pushed its annual revenue forecast to a 1% decline, compared with expectations of a 1.4% rise.

The world’s largest coffee chain reported fourth-quarter global same-store sales growth of 7.2%, which surpassed analysts’ expectations of a 5.4% rise. NurPhoto via Getty Images Shares of the company were down about 2% in extended trading.

Michael Gunther, an analyst at Consumer Edge, said he was encouraged by the sales growth figures, and that Starbucks has benefited from consumer demand for affordable indulgences. But he said the chain is losing younger customers to competitors like 7 Brew.

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“The guidance was weak, but perhaps they’re trying to set low expectations,” said Brian Jacobsen, an analyst with Annex Wealth Management, adding that he believes the company has momentum.

Earlier this month, the coffee chain quashed talk of a deal to acquire Chipotle Mexican Grill following reports of a potential deal, which could’ve been the largest ever involving restaurants and would have reunited Niccol with the burrito chain he led for six years.

Niccol said progress had been made in his efforts to transform Starbucks’ supply chain – whose tangles have caused product shortages over the years, Reuters reported in February. Niccol said the company is testing new ways to forecast demand for products, and also that daily deliveries are reaching close to 90% of North American stores.

$18.22+$2.16 (+13.45%)

NYSE · As of 4:00 PM ET 10/29/26

Norwegian Cruise Line Holdings (NCLH +13.45%), a global cruise operator with Norwegian, Oceania, and Regent brands, closed at $18.22, up 13.45%. Pre-market earnings beat estimates, and a raised full-year outlook drove the gain. Investors are watching booking trends and pricing next.
Trading volume reached 63.0 million shares, coming in about 241% above its three-month average of 18.5 million shares. Norwegian Cruise Line Holdings IPO'd in 2013 and has fallen 27% since going public.

How the markets moved todayThe S&P 500 (^GSPC -0.30%) closed at 7,720, down 0.31%, while the Nasdaq Composite (^IXIC -1.38%) closed at 26,185, down 1.38%. Within leisure travel services, global cruise line operator Royal Caribbean Cruises closed at $310.54, up 4.10%, and Carnival closed at $28.84, up 2.78%, after stronger cruise demand and higher guidance kept the group in focus.

What this means for investorsNorwegian Cruise Line Holdings beat estimates and raised guidance in its Q3 report. Investors cheered the results, especially after the company said bookings remain below the "optimal range." That news came as the stock started the day near its 52-week low, helping spur today's rally.

The company has been managing high fuel prices and relatively slow bookings well, and has plans to attract new guests. It recently opened a new waterpark attraction on its private Great Stirrup Cay in the Bahamas, for example.

The company also has a new finance chief beginning in January. Its longtime CFO will step down and be replaced by the current chief strategy officer, Meghan Montana.

Investors are sensing a bottom in the stock, with shares still down more than 18% this year, even after today's surge.

Intel Corp. (NASDAQ:INTC) posted its third-quarter fiscal 2026 results after Thursday’s closing bell, beating expectations but issuing fourth-quarter guidance well-below estimates.

INTC stock is moving. Watch the price action here. Intel Q3 Details      Intel reported quarterly earnings of 52 cents per share, which beat the consensus estimate of 40 cents by 30%, per Benzinga Pro data. 

Quarterly revenue came in at $16.51 billion, which beat the Street estimate of $16.47 billion.

Intel’s guidance is moving the stock. The company expects fourth quarter adjusted EPS of 25 cents, versus the 43 cent analyst estimate, and revenue in a range of $15 billion to $16 billion, versus the $17.05 billion estimate.

“Our Q3 results demonstrate improving execution, meaningful progress expanding supply and continued advancement of our process technology,” said Lip-Bu Tan, Intel CEO.

“Despite near-term headwinds across the PC industry, demand for our CPUs remains robust, reinforcing our confidence in the long-term growth opportunities for our business. Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family, while strengthening our product portfolio and roadmap,” Tan said.

“We are moving with urgency and focus to capitalize on these opportunities to deliver sustainable growth and long-term shareholder value,” he added.

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INTC Stock Price: According to data from Benzinga Pro, Intel stock was down 16.53% to $76.85 in Thursday’s extended trading.  

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