It has been about a month since the last earnings report for PulteGroup (PHM - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PulteGroup due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
PulteGroup Q2 Earnings & Revenues Beat Estimates, New Orders Up Y/YPulteGroup reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.
The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and ongoing affordability challenges due to high mortgage rates hurt the top-line growth.
Inside PulteGroup’s Q2 HeadlinesQuarterly earnings were $2.48 per share, beating the Zacks Consensus Estimate of $2.38 by 4.2%. Earnings declined 18.2% from $3.03 in the prior-year quarter.
Total revenues (Homebuilding & Financial Services) of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1% but fell 9.6% year over year.
PulteGroup’s Homebuilding HighlightsHomebuilding segment’s revenues decreased 9.7% year over year to $3.89 billion. Home sale revenues fell 10.8% to $3.81 billion, reflecting weaker delivery volumes and lower average pricing. Land sale and other revenues increased to $78.9 million from $34.6 million.
The number of homes closed declined 8.4% year over year to 6,997 units. Deliveries decreased across the Northeast, Midwest, Texas and West regions, while closings in the Southeast and Florida remained relatively stable. The ASP of homes delivered fell 2.7% to $544,000 from $559,000.
Net new orders increased 6.4% year over year to 7,536 homes. Order growth was recorded across all buyer groups, supported by an 8% increase in average community count to 1,074. The dollar value of net new orders rose 5.1% to $4.08 billion.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with the company’s broader pricing pressure.
Home sale gross margin contracted 200 basis points (bps) year over year to 25%. However, the metric improved 60 basis points sequentially from the first quarter of 2026, indicating some near-term stabilization in profitability.
Selling, general and administrative (SG&A) expenses declined to $383 million from $390 million. However, as a percentage of home sale revenues, SG&A expenses increased 100 bps to 10.1%, as the lower revenue base reduced operating leverage.
PulteGroup’s Financial Services DetailsFinancial Services revenues declined 4.2% to $96.9 million. Overall, the revenue mix reflected continued housing-market pressure as affordability constraints, volatile mortgage rates and economic uncertainty affected buyer activity.
Mortgage origination volume decreased to 4,629 loans from 4,984, while origination principal fell to $1.98 billion from $2.16 billion. The mortgage capture rate improved modestly to 85.2% from 84.8%.
PHM’s Liquidity and Buybacks Stay in FocusPulteGroup ended the quarter with $1.38 billion in cash, cash equivalents and restricted cash. Notes payable totaled $1.82 billion, resulting in a debt-to-capital ratio of 12.3% and a net debt-to-capital ratio of 3.3%.
Operating cash flow for the first six months of 2026 declined 58.1% year over year to $176.8 million, partly reflecting an $807.3 million increase in inventories. During the second quarter, PHM repurchased 3.1 million shares for $373 million. First-half repurchases totaled $681.2 million, representing 5.5 million shares.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresCurrently, PulteGroup has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PulteGroup has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPulteGroup belongs to the Zacks Building Products - Home Builders industry. Another stock from the same industry, D.R. Horton (DHI - Free Report) , has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
D.R. Horton reported revenues of $9.23 billion in the last reported quarter, representing a year-over-year change of +0%. EPS of $3.20 for the same period compares with $3.36 a year ago.
D.R. Horton is expected to post earnings of $3.10 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.5%.
D.R. Horton has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
A month has gone by since the last earnings report for QuantumScape Corporation (QS - Free Report) . Shares have added about 11.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is QuantumScape due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for QuantumScape Corporation before we dive into how investors and analysts have reacted as of late.
QuantumScape Q2 Loss Narrower-Than-ExpectedQuantumScape reported second-quarter 2026 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company delivered an earnings surprise of 11.1%. The company had incurred a loss of 20 cents per share a year earlier.
QuantumScape did not report GAAP revenues. The quarter featured lower operating expenses, improving Eagle Line productivity and $10.8 million in customer billings. The company also expanded its automotive relationships and established business verticals targeting electric vehicles, AI data centers, aerospace and defense.
Operating Expenses DeclineGAAP net loss narrowed 14.4% year over year to $98.24 million from $114.70 million. Total operating expenses fell 14.1% to $106.13 million, supporting the improvement in the bottom line.
Research and development expenses declined 18.4% to $82.53 million. General and administrative expenses increased 5.3% to $23.59 million. Interest income was $8.36 million, down from $8.94 million in the prior-year quarter.
QS Builds Automotive PartnershipsThe company announced a multi-year partnership with Honda to advance its solid-state lithium-metal battery technology for automotive and other applications. The agreement followed an extensive evaluation of QuantumScape’s technology and adds another top-10 global automaker to its customer portfolio.
QS also updated its collaboration and licensing arrangement with Volkswagen Group’s PowerCo. The revised milestones focus on automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. The company is working with four top-10 automakers and shipped cells to another automotive customer during the quarter.
Eagle Line Ramps Sample ProductionQuantumScape continued to ramp the Eagle Line, its automated pilot production line in San Jose. Core tools achieved uptime above 90%, while key productivity measures reached management’s targets. The company is increasing cell volumes and shipping samples to customers.
QS aims to double cell output further in the second half of 2026. Higher production is expected to accelerate customer shipments, shorten development cycles and provide a foundation for transferring manufacturing processes to future high-volume facilities. QS continues to work with Murata Manufacturing and Corning on scaling ceramic separator production through the Cobra process.
QuantumScape Targets New High-Value MarketsThe company created three business verticals. QSEV will focus on electric vehicles, QSDC will pursue AI data centers, and QSAS will address advanced applications such as aerospace and defense.
QSDC is working with original design manufacturers and data center architects on solutions based on the QSE-5 platform. QSAS shipped QSE-5 cells to a major U.S. defense contractor and is engaging other aerospace and defense customers. Management believes the technology’s energy density, power capability and safety profile can support these markets.
QS Advances Safety and Larger-Format CellsIncreased Eagle Line output enabled broader safety testing of QSE-5 cells. Testing included nail penetration, external short circuits and thermal stability at temperatures up to 300 degrees Celsius. Management said the larger test set replicated findings from earlier prototypes.
The company also demonstrated that its Cobra process can produce larger ceramic separators. Larger-format cells can improve packaging efficiency and raise cell-level energy density, while giving QS greater flexibility to meet varying customer requirements.
Capital Spending Forecast ReducedAdjusted EBITDA loss was $64.19 million compared with a loss of $63.01 million a year earlier. QuantumScape maintained its full-year 2026 adjusted EBITDA loss guidance of $250-$275 million.
Capital expenditures totaled $4.62 million, down 46.2% from $8.59 million in the prior-year quarter. QS lowered its 2026 capex guidance to $27-$37 million from $40-$60 million, reflecting capital discipline and savings on specific projects.
Strong Liquidity PositionNet cash used in operating activities improved to $56.75 million from $61.84 million a year ago. Customer billings totaled $21.8 million during the first half of 2026, surpassing the $19.5 million recorded for all of 2025.
QuantumScape ended June with $859 million in liquidity, comprising $132.87 million in cash and cash equivalents and $726.13 million in marketable securities. The balance sheet provides funding as the company scales the Eagle Line, develops larger-format cells and pursues commercialization across its three business verticals.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, QuantumScape has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% 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 trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, QuantumScape has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerQuantumScape is part of the Zacks Automotive - Original Equipment industry. Over the past month, Autoliv, Inc. (ALV - Free Report) , a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended June 2026 more than a month ago.
Autoliv reported revenues of $2.8 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $2.43 for the same period compares with $2.21 a year ago.
Autoliv is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -4.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autoliv. Also, the stock has a VGM Score of A.
Quanta dokončila čtyři akvizice za zhruba 1,24 miliardy USD a čeká od nich v roce 2026 výnosy 1,2–1,4 miliardy USD. Firma zároveň hlásí rekordní backlog 53,4 miliardy USD a cílí na volný cash flow 2–2,5 miliardy USD.
Key Takeaways Quanta completed four acquisitions for $1.24B, adding capabilities and $1.2-$1.4B of 2026 revenues.PWR's record backlog reached $53.4B, supporting growth across utilities, generation & technology projects.Quanta targets $2-$2.5B of 2026 free cash flow while maintaining dividends and a new $1B buyback. Quanta Services, Inc. (PWR - Free Report) appears to be using capital not merely to boost near-term earnings, but to build a broader infrastructure platform capable of compounding growth over the long term. Its second-quarter 2026 performance and recent investments highlight a strategy centered on acquisitions, self-perform capabilities, shareholder returns and balance-sheet discipline.
Quanta completed the acquisitions of Phalcon, Enerfab, Percheron and PSD during the second quarter and July 2026 for approximately $1.24 billion in upfront consideration, with the businesses expected to contribute $1.2-$1.4 billion in 2026 revenues and $120-$140 million in adjusted EBITDA. Beyond incremental sales, the deals expand Quanta's electrical, mechanical, fabrication and front-end capabilities while strengthening its exposure to utilities, technology load centers and critical infrastructure.
The company is also returning capital to shareholders. PWR authorized a new $1 billion stock repurchase program and maintained its quarterly dividend at 11 cents per share. At the same time, Moody's upgraded its senior unsecured notes rating to Baa2 from Baa3, underscoring improving credit quality despite acquisition spending. Importantly, capital deployment is being supported by stronger cash generation. Quanta reported robust first-half 2026 cash flow and expects 2026 free cash flow of $2-$2.5 billion. Management also sees potential for free cash flow conversion to reach the high end of its targeted range as favorable contracting terms and growth in MEP, EPC and renewables businesses improve working capital.
With a record backlog of $53.4 billion and larger utility, generation and technology projects still ahead, Quanta's capital strategy could be creating a platform for more than earnings growth. It may be strengthening its competitive moat and long-term shareholder value.
Quanta vs. EMCOR & Sterling: Which Growth Engine Wins?Quanta is indeed leveraging disciplined capital allocation and strong backlog trends to support long-term revenue growth, which is also the game plan of its close peers like EMCOR Group, Inc. (EME - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .
PWR combines strategic acquisitions, shareholder returns and liquidity management, with a record backlog providing significant visibility into future growth. Its new $1 billion share repurchase authorization, quarterly dividend and Moody’s credit-rating upgrade further highlight its financial flexibility. EMCOR similarly benefits from robust cash generation, disciplined acquisitions and shareholder-friendly capital deployment, while its sizable backlog supports continued demand across electrical and mechanical construction. Sterling remains focused on high-return organic opportunities and strategic acquisitions, with backlog strength in E-Infrastructure and Transportation supporting growth.
Overall, Quanta stands out for the scale of its backlog and acquisition strategy, while EMCOR and Sterling offer complementary capital-allocation approaches. Together, the companies appear well-positioned to convert infrastructure demand, liquidity and backlog momentum into sustained revenue and shareholder-value growth.
PWR Stock’s Price Performance & Valuation TrendPWR stock has gained 20.7% in the past six months, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.35, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.37 per share and $18.96 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 52.3% and 15.8%, respectively.
Image Source: Zacks Investment Research
Quanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products Partners má rozestavěné projekty za 6,5 mld. USD, které mají v letech 2026–2028 podpořit zisk, cash flow a ziskovost. Firma navíc získává 90 % dlouhodobých kontraktů s inflační eskalací.
Key Takeaways EPD earns fee-based revenues, with 90% of long-term contracts including inflation escalation provisions.EPD has $6.5B of projects under construction, including Permian gas plants and pipeline expansions.Projects entering service through 2026-2028 should boost EPD's earnings, cash flows and profitability. Enterprise Products Partners (EPD - Free Report) , a leading North American midstream energy player, operates an integrated network of assets for the transportation and storage of crude oil, natural gas, natural gas liquids (NGLs), petrochemicals and refined products. The partnership earns stable fee-based revenues, which enable it to generate predictable cash flows across business cycles. Moreover, 90% of its long-term contracts include an escalation provision that protects its cash flows and distributions amid inflationary business environments.
EPD’s contracted business model makes its earnings less vulnerable to fluctuations in commodity prices. The partnership has also announced major projects worth $6.5 billion under construction, including new gas-processing plants in the Permian Basin, the Bahia pipeline expansion, Fractionator 15 and the Enterprise Hydrocarbons Terminal LPG expansion. These capital projects are expected to benefit from favorable energy market fundamentals, including increased hydrocarbon production from the Permian Basin higher natural gas demand from rising LNG exports, the expansion of data center infrastructure and increasing industrial demand.
Since many of these projects are expected to enter service during 2026-2028, they should contribute to Enterprise’s earnings, supporting profitability and cash flow growth. EPD's liquidity position and healthy free cash flow generation should enable it to capitalize on growth opportunities while prioritizing returns to unitholders and debt reduction.
Other Midstream Players to Benefit From Rising Energy DemandKinder Morgan Inc. (KMI - Free Report) is a leading midstream energy company that owns and operates one of the largest energy infrastructure networks in North America, comprising approximately 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet of natural gas storage capacity.
The Williams Companies, Inc. (WMB - Free Report) is another leading player in the midstream energy sector, which operates a widespread pipeline system of more than 32,000 miles, including the Transco and Northwest Pipeline systems. These pipeline systems are among the largest natural gas transportation networks in the United States.
Rising energy demand in domestic and international markets is expected to support sustained demand for Kinder Morgan and Williams Companies’ midstream services.
EPD’s Price Performance, Valuation & EstimatesEnterprise Products units have jumped 28.3% over the past year compared with the 30.6% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.98X. This is below the broader industry average of 11.27X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD’s 2026 earnings has been revised upward over the past seven days.
Image Source: Zacks Investment Research
EPD, KMI and WMB each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros zvýšil výhled tržeb pro rok 2026 na 2,10–2,13 miliardy USD a stále plánuje alespoň 185 otevření poboček. Akcie se ale obchodují za 50,9násobek forward zisku, což ponechává jen malý prostor pro chyby.
Key Takeaways BROS raised 2026 revenue guidance to $2.10-$2.13 billion and plans at least 185 system shop openings.BROS' loyalty, order-ahead, food and energy offerings provide additional growth drivers.BROS trades at 50.9X forward earnings, making sustained growth and productivity crucial. Dutch Bros Inc. (BROS - Free Report) is growing quickly, with rising revenues, positive traffic and a broader development pipeline. Yet the stock still commands a premium valuation while coffee, rent and expansion costs remain elevated.
That mix makes the investment case less about whether Dutch Bros can grow and more about whether that growth can support the price investors are being asked to pay.
Dutch Bros Growth Case Remains StrongManagement raised 2026 revenue guidance to $2.10-$2.13 billion and adjusted EBITDA guidance to $385-$390 million. Systemwide same-shop sales are expected to increase 5-6%, while the company still plans at least 185 system shop openings this year.
The operating base also remains supportive. Second-quarter revenues increased 32.5% year over year to $550.9 million, while systemwide same-shop sales advanced 5.8% with 1.7% transaction growth. That marked an eighth consecutive quarter of transaction gains, a useful indicator that expansion is not relying only on price.
BROS Has Multiple Transaction DriversDutch Rewards represented 73% of second-quarter transactions, showing the scale of the company’s loyalty program. Order-ahead reached roughly 16% of the mix, giving Dutch Bros another channel to improve convenience and encourage repeat visits.
Food had expanded to about 750 system shops, while Myst Energy Refreshers became a permanent menu item after broadening the company’s energy offering. These initiatives give BROS more ways to drive frequency without depending entirely on menu pricing.
Starbucks Corporation (SBUX - Free Report) offers a relevant coffee-shop benchmark. Its fiscal third-quarter 2026 global comparable sales rose 7.9%, led by 4.2% transaction growth. SBUX opened 175 net new stores during the period, reinforcing how traffic and unit growth can work together when execution is effective.
Premium Valuation Leaves Less Room for BROS ErrorBROS trades at 3.5X forward 12-month sales versus 3.1X for its sub-industry and carries a forward price-to-earnings multiple of 50.9X. The premium means investors are already paying for a sizable portion of the company’s expected growth.
That raises the importance of sustaining transaction gains, new-shop productivity and earnings growth as pricing support moderates. A premium multiple can remain justified when operating results stay ahead of expectations, but it also leaves less room for execution misses or slower-than-planned margin improvement.
Execution Risks Could Test Dutch Bros ReturnsManagement expects 2026 capital expenditures of $350-$370 million as Dutch Bros accelerates shop openings, acquisitions and conversions. The scale of that spending increases the need for new locations to mature efficiently and contribute enough sales to offset the capital required to build the network.
Higher coffee costs, greater build-to-suit rent exposure and added food complexity could make that task harder. Restaurant Brands International Inc. (QSR - Free Report) , which owns Tim Hortons, provides another useful industry reference. Tim Hortons had delivered 20 consecutive quarters of positive comparable sales through the first quarter of 2026, while RBI continued to target more than 3% comparable sales and over 5% net restaurant growth toward the end of its 2024-2028 algorithm.
BROS Scores Point to Selective OptimismDutch Bros still presents a credible growth case, but the valuation and execution demands argue against treating growth alone as sufficient reason to buy. The better setup would be one in which transaction momentum, shop productivity and earnings growth keep pace with the premium embedded in the shares.
BROS currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B point to favorable growth and momentum characteristics, while the Value Score of F highlights the valuation challenge.
The VGM Score of C reflects that uneven mix across value, growth and momentum. With the Zacks Rank at #3 and the Style Scores split between favorable growth signals and weak value characteristics, the stock fits a more selective, wait-and-see stance rather than an aggressive buying case.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pinnacle West Capital snižuje provozní náklady a míří na dlouhodobý růst EPS o 5–7 %. V první polovině roku 2026 klesly provozní a údržbové náklady (O&M) o 4,5 % a firma plánuje investice téměř 7,95 miliardy USD do roku 2028.
Key Takeaways Pinnacle West Capital targets 5-7% long-term EPS growth while maintaining disciplined cost management.PNW's first-half 2026 O&M costs fell 4.5% as it plans nearly $7.95B in investment through 2028. PNW plans to convert Cholla to provide about 380 MW of dispatchable generation by 2029. Pinnacle West Capital (PNW - Free Report) is strengthening efficiency through disciplined cost management and tighter control of operating expenses. These efforts support financial stability while creating more flexibility to fund infrastructure investments.
PNW’s operations and maintenance (O&M) expenses fell 1.1% year over year to $283.4 million in the second quarter, while first-half 2026 O&M costs declined 4.5% from the prior-year period. The company expects 2026 adjusted core O&M of $970-$980 million, while adjusted O&M, excluding renewable energy and demand-side-management costs, is projected at $1.02-$1.04 billion.
Pinnacle West Capital also remains committed to reducing O&M expenses on a per-megawatt-hour basis over time. PNW’s cost control is increasingly important as it plans to invest $2.6 billion in 2026 and nearly $7.95 billion through 2028 to support infrastructure and 7-9% rate-base growth.
By lowering costs, PNW can improve earnings and capture greater benefits from its expanding customer base and rising electricity demand. The company expects 2026 earnings per share (EPS) of $4.55-$4.75 and 5-7% long-term EPS growth.
The company is also pursuing cost-effective projects. Its planned conversion of the Cholla plant will repurpose existing infrastructure to provide about 380 megawatts of dispatchable generation by 2029, helping meet rising demand without building an entirely new facility.
Overall, PNW’s stable O&M costs amid rising demand and infrastructure investment are positive, while continued efficiency and regulatory recovery could support margins and long-term growth.
Stronger Cost Control Supports Utility GrowthUtilities that control operating costs can improve margins, preserve financial flexibility, fund infrastructure investments and maintain affordable customer rates. Effective cost management also strengthens operations and supports sustainable earnings growth. Alongside PNW, several other utilities also demonstrate strong cost management as highlighted below:
American Electric Power (AEP - Free Report) expects up to $16 billion in cost offsets from load growth, helping spread fixed costs while supporting customer affordability and long-term earnings growth.
PG&E Corporation (PCG - Free Report) expects to meet its 2026 target of reducing non-fuel O&M costs by 2-4%, supporting both customer affordability and greater operating efficiency.
The Zacks Rundown on PNWPNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.53% and an increase of 17.90%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Stock Trading at a Premium PNW is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 18.92X versus the industry average of 15.42X.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past six months, Pinnacle West Capital’s shares have plunged 2% compared with the industry’s 7.9% fall.
Axon Enterprise ve 2. čtvrtletí zvýšila tržby o 35,3 % na 904,4 mil. USD a upravená marže EBITDA stoupla o 110 bazických bodů na 26,8 % i přes vyšší náklady.
Key Takeaways Axon Enterprise's adjusted EBITDA margin rose 110 bps to 26.8% despite higher operating costs.AXON's Q2 revenues jumped 35.3% to $904.4 million on strong device and software demand.Axon Enterprise targets an adjusted EBITDA margin of about 28% by 2028 on $6 billion in annual revenues. Axon Enterprise, Inc. (AXON - Free Report) has been subject to rising operating costs and expenses over time. The company’s cost of sales increased 35.2% to $357.9 million in the second quarter of 2026, on a year-over-year basis. While, its selling, general and administrative expenses surged 20.1% to $291 million in the quarter; research and development expenses were up 28.4% to $209 million.
Nevertheless, the company’s adjusted EBITDA margin expanded 110 basis points year over year to 26.8%, driven by strong revenue growth and benefits from global tariff refunds. In the second quarter, its total revenues surged 35.3% year over year to $904.4 million and came ahead of the Zacks Consensus Estimate of $868.4 million. The results were driven by strong demand for Dedrone, TASER 10 and Axon Body 4, with growing adoption of software solutions.
The company’s focus on effective cost management, revenue growth and manufacturing efficiency is anticipated to boost its margin performance. For 2026, AXON currently expects an adjusted EBITDA margin of approximately 25.5%, relatively flat year over year. The company has set a long-term financial target to achieve about 28% of adjusted EBITDA margin by 2028, supported by annual revenues of $6 billion.
Peer’s Margin performanceIn second-quarter 2026, Tyler Technologies’ (TYL - Free Report) cost of sales and selling & marketing expenses increased 4.7% and 9.9%, respectively, on a year-over-year basis. Despite higher costs, Tyler Technologies’ adjusted gross margin improved 150 bps to 50.4% in the quarter, supported by revenue mix improvement.
Woodward, Inc.’s (WWD - Free Report) total costs and expenses rose 14% year over year in third-quarter fiscal 2026 (ended June 2026). Woodward’s selling, general and administrative expenses also rose 20.1% year over year. Despite the rise in costs, Woodward’s segmental margins expanded, which was supported by sales growth, improved mix of commercial services activity and solid commercial OEM demand.
AXON’s Price Performance, Valuation and EstimatesShares of Axon Enterprise have gained 25% in the past month compared with the industry’s growth of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 64.7X, above the industry’s average of about 39X. Axon Enterprise carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXON’s 2026 earnings has declined over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Corp. vykázala ve 2. čtvrtletí upravený zisk 2,35 USD na akcii, nad odhadem i výhledem, a tržby vzrostly o 14,7 % na 2,49 miliardy USD. Firma zároveň ve 3. čtvrtletí očekává upravený zisk 2,91 USD na akcii.
It has been about a month since the last earnings report for Packaging Corp. (PKG - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Packaging Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Packaging Corporation of America before we dive into how investors and analysts have reacted as of late.
Packaging Corp Q2 Earnings Beat Estimates on Record ShipmentsPackaging Corp reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above the company’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs.
Including special items related to facility closures, the Wallula mill restructuring and acquisition and integration costs, earnings in the quarter were $2.15 per share compared with the prior-year quarter’s $2.67.
Packaging Corp’s Gross Profit Rises Y/Y in Q2Sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.
Gross profit increased 6.1% year over year to $512.5 million. However, the gross margin contracted to 20.6% from 22.2% as the cost of sales rose 17.1% to $1.98 billion. Selling, general and administrative expenses increased 17% to $179 million.
Adjusted operating income improved 1.4% year over year to $315 million. Adjusted EBITDA advanced 7.7% to $486 million, reflecting higher production and sales volumes in packaging and stronger paper segment results.
PKG’s Q2 Segmental PerformancesPackaging: Sales in this segment increased 15.2% year over year to $2.31 billion, aided by higher production and sales volume, including contributions from the acquired Greif business. These gains were partly offset by unfavorable price and mix, along with higher labor, freight and operating costs.
Shipments per day at legacy corrugated products plants increased 4.1%. Containerboard production was 1,415,000 tons, while containerboard inventory increased 40,000 tons from the year-ago quarter due to the acquisition.
Adjusted operating profit was $328 million compared with $322 million in the prior-year quarter.
Paper: The segment’s revenues were $157 million in the April-June quarter, up 7.9% year over year. Sales volume increased 6.3% from the second quarter of 2025.
The segment reported an operating profit of $34.3 million compared with the year-ago quarter’s $25.8 million. The improvement was supported by higher sales volume and favorable price and mix.
Packaging Corp's Cash Position DeclinesPKG ended the quarter with $666.8 million in cash, cash equivalents and marketable debt securities, down from $955.9 million a year earlier. Capital spending increased to $205.9 million from $169.7 million.
For the first six months of 2026, capital expenditure totaled $370.6 million compared with $317.8 million in the prior-year period.
PKG Q3 OutlookThe company expects third-quarter 2026 adjusted earnings of $2.91 per share. The outlook assumes continued strong packaging demand, another sequential increase in corrugated products volume, and benefits from previously announced containerboard and corrugated product price increases.
PKG expects better operating performance across its containerboard mill system, although scheduled maintenance expenses will shift toward the paper segment. Freight costs and recycled fiber prices are expected to remain elevated, while higher mill production should increase chemical and electricity usage. PKG also anticipates lower paper volume but improved pricing and mix.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresAt this time, Packaging Corp. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Packaging Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
MANTRA spadl na historické minimum 0,0041 USD poté, co projekt pozastavil blockchain kvůli zranitelnosti v upstream dependency. Token byl zároveň za den dole o 8,5 %.
MANTRA (MANTRA) slid to an all-time low of $0.0041 as the project froze its blockchain and said an attacker was targeting a vulnerability in an upstream dependency.
The record low came as the rest of the market climbed, extending a rally that accelerated on Wednesday.
Why MANTRA Halted Its ChainMANTRA Chain, a Layer 1 blockchain built for tokenizing real-world assets, was halted earlier today. Its initial notice said all endpoints and transactions were frozen.
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We're aware of an incident affecting MANTRA Chain and have halted the chain as a precaution while we investigate. All endpoints and transactions are currently frozen.
This means deposits and withdrawals to/from MANTRA Chain are temporarily affected. If you're unsure how this…
— MANTRA | The EVM L1 for RWAs (@MANTRA_Chain) August 21, 2026
A later update named the cause. The team pointed to an attacker exploiting a vulnerability in an upstream dependency, meaning third-party code the chain relies on rather than software it wrote itself.
“Earlier today, we detected an attacker exploiting a vulnerability in an upstream dependency used by the chain and halted the network as a precaution,” the update read.
MANTRA said it has identified the vulnerability and is now preparing a patch. Its validators and infrastructure remain offline until the upgrade is ready.
“Resuming the network will require a coordinated restart with the wider validator set — we will not resume until the patch is verified and that coordination is in place,” it added.
The team is also tracing where funds moved and has contacted exchange partners. Deposits and withdrawals remain paused at affected venues, and the total scope of the impact remains unconfirmed. The team also warned holders to ignore anyone offering recovery help.
MANTRA Misses a Market-Wide Rally The incident has also impacted the token. MANTRA changed hands at $0.0044 at press time, down 8.5% on the day.
MANTRA Token Price Performance. Source: BeInCrypto MarketsThat slide ran against the broader market. Bitcoin (BTC) topped $75,000 earlier today as short liquidations reached $1.06 billion. Other major cryptocurrencies also traded higher, lifting the total crypto market capitalization by nearly 4% over the past day.
The incident marks the network’s second major crisis in 16 months. Its token, then known as OM, lost nearly 90% of its value in April 2025, wiping out about $5.5 billion in market value in less than an hour.
The project retired the OM ticker this March. A non-dilutive 1:4 split at block 13,000,000 converted each OM into four MANTRA, and the token posted a 37% launch-day rally.
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XRP dnes vzrostl o 17 % na 1,30 USD a na týdenním grafu tvoří klesající klín, který může signalizovat obrat trendu. Obchodní objemy zároveň vzrostly o 127 % za 24 hodin na 8,17 miliardy USD. CEO Ripple Brad Garlinghouse zároveň uvedl, že firma míří na rekordní rok.
Ripple (XRP) price is up by 17% today, August 21, to trade at $1.30 at the time of writing. The gains come amid a surge in buying pressure, with data from CoinMarketCap showing that trading volumes are up by 127% in 24 hours to $8.17 billion.
XRP is now forming a falling wedge pattern on the weekly chart that usually suggests that the downtrend that pushed the price from $1.94 in January to $0.99 in August could be over. Meanwhile, Ripple’s CEO Brad Garlinghouse opines that the company will have a record year.
Garlinghouse Says Ripple Will Have a Record Year Garlinghouse was speaking at the Wyoming Blockchain Symposium, where he said that Ripple is on the verge of doubling its revenue in 2026. He attributed this increase in revenue to the acquisitions of Hidden Road and GTreasury in 2025.
His remarks also come at a time when Ripple is expanding its footprint in the traditional finance space. A recent report by CoinGape noted that Ripple is partnering with Clearpool and Cicada to bring institutional credit to the XRP Ledger.
During the Wyoming Blockchain Symposium, Garlinghouse also sparked speculation of Ripple filing for an IPO, saying that the company is no longer entirely opposed to going public.
“We’ve been very happily private for a long time… we are more neutral on the topic than maybe we used to be,” he said.
These remarks coincide with a bullish sentiment across the crypto market that has seen the price of XRP gain by 31% in three days.
XRP Price Creates a Bullish Wedge Pattern The price of XRP is forming a falling wedge pattern on the weekly chart. This pattern usually suggests that the trend is changing from a bearish one to a bullish one.
XRP has also moved above the resistance at the upper trendline of the wedge pattern. Still, it has to close above this resistance to confirm the bullish outlook to move to the next obstacle at $1.71.
The RSI that has moved from an oversold reading of 30 on August 10 to 49 today, August 21, also confirms that the trend is shifting. The current RSI reading shows that selling pressure has eased, and the price of XRP could extend the gains.
The value of XRP today is also testing the resistance at the 200-day EMA of $1.36. If it moves above this EMA, it will confirm that the long-term trend is changing to favor bulls.
XRP Price Chart (Source: TradingView) If this bullish thesis fails and XRP price fails to close above the 200-day EMA, it might drop to the psychological support of $1.20.
XRP ETF Volumes Reach $125 million Data from SoSoValue shows that the total value traded for XRP ETFs has reached $125 million. The Bitwise XRP ETF accounts for the biggest share of these volume numbers, with $83 million traded since the product launched.
The recent 31% gain in XRP price has also increased the demand for XRP ETFs, because they recorded $13.24 million in inflows on August 20. This marks the biggest single-day inflows recorded by the ETFs since June 29.
XRP ETF Flows (Source: SoSoValue) The surge coincides with surging demand for all crypto ETFs after the total inflows reached $885 million on August 20, with Bitcoin (BTC) leading with $606 million in inflows.
Cover image via depositphotos.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Chainlink's native token (LINK) is ending the week with a strong 22.05% gain, reaching $11.45 on TradingView. Positive capital momentum has been building over the past seven days amid hearings before a CFTC advisory committee and the commercial rollout of the project's new AI platform.
LINK price chart and Chris Barrett's post on X. Source: TradingViewCommenting on these developments, the company's communications director, Chris Barrett, quipped on social media today: "You can't spell Chainlink without AI." The play on words directly refers to the project's infrastructure expansion into the autonomous machine sector.
Inside Chainlink's move into AI and U.S. regulationThe developers are targeting practical demand as AI systems and robots operating 24/7 cannot rely on the traditional banking system because of its delays and limited operating hours.
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Launched in mid-August under the mission "The Onchain Engine for the Agentic Economy", the Chainlink for Agents platform addresses the problem of machine payments by serving as a verified data layer for AI agents settling transactions in stablecoins through the CCIP protocol.
The practical value of these rails is confirmed by the speed of their commercial adoption: Robinhood and BitGo have already begun integrating the AI layer.
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At the same time, Chainlink's leadership is building a regulatory foundation around cybersecurity. At a CFTC committee meeting, project co-founder Sergey Nazarov presented smart contract architecture as a tool for protecting U.S. financial markets from algorithmic manipulation and attacks by advanced AI systems.
The hearings demonstrated a shift in the direction of U.S. authorities: instead of debating the legality of cryptocurrencies, regulators focused on establishing rules for moving domestic markets onchain. Commenting on the changing agenda in Washington, Chris Barrett emphasized:
"Instead of debating whether crypto belongs in the U.S., the focus was on how prediction markets, perpetuals, and other onchain financial products can operate here within clear rules."
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For Chainlink, this regulatory shift opens new operational avenues that are already supported by its presence in government infrastructure. Macroeconomic indicators from the U.S. Department of Commerce are transmitted through the oracle network, while the Bermuda Monetary Authority uses the company's tools for embedded supervision.
The current capital inflow reflects major players' bet that the project will establish itself as a core infrastructure layer for traditional finance.
The Project Pangea banking consortium, with more than $10 trillion in assets under management, clearing corporation DTCC, investment giants UBS and Amundi, as well as JPMorgan and CME, are already using Chainlink solutions to settle real-world assets (RWA).
Encompass Health ve 2. čtvrtletí zvýšil tržby o 9,6 % meziročně a zvedl výhled tržeb na 6,41–6,49 mld. USD i upraveného EPS na 6,02–6,25 USD na rok 2026. Růst táhla vyšší obsazenost a expanze kapacity.
Key Takeaways EHC's revenues rose 9.6% year over year in Q2 2026, driven by higher discharges and net revenue per discharge.EHC plans five new hospitals and 250 beds, plus 100-150 beds at existing facilities in 2026.EHC raised 2026 revenue and adjusted EPS guidance as occupancy and cash flow continued to improve. Encompass Health Corporation (EHC - Free Report) is well-positioned for growth, supported by rising demand for inpatient rehabilitation services, higher patient acuity and continued investments in expanding its hospital capacity. The company has gained 13.9% over the past six-month period, outperforming the industry average of 11.2%.
Encompass Health — with a market cap of $12 billion — offers facility-based patient care through its network of inpatient rehabilitation hospitals. The company has a national footprint that includes 176 hospitals across 39 states and Puerto Rico. Its forward P/E ratio of 18.92X is lower than the industry average of 19.27X.
Courtesy of solid prospects, Encompass Health currently carries a Zacks Rank #2 (Buy) and a Growth Score of B.
Where Do EHC’s Estimates Stand?The Zacks Consensus Estimate for Encompass Health’s 2026 earnings is pegged at $6.04 per share, indicating a 10.8% year-over-year rise. In the past 30 days, it has witnessed five upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $6.5 billion for 2026, implying an 8.8% year-over-year increase.
It beat earnings estimates in each of the past four quarters with an average surprise of 6.8%.
EHC’s Growth DriversEncompass Health’s growth is being supported by rising demand for inpatient rehabilitation and a favorable shift toward higher-acuity patients. In the second quarter of 2026, revenues increased 9.6% year over year, driven by 5.6% growth in discharges and a 3.9% increase in net revenue per discharge. Medically complex categories remained strong, with growth in same-store stroke and brain injury volumes. System-wide occupancy also reached 77.4%, up 290 basis points year over year, supporting better utilization of the company’s growing hospital network.
Capacity expansion remains a key part of Encompass Health’s long-term growth strategy. The company opened three hospitals totaling 139 beds during the first half of 2026 and plans to open another five hospitals with 250 beds while adding 100-150 beds to existing facilities during the remainder of the year. Beyond 2026, the development pipeline currently includes 13 hospitals with 606 beds. North Carolina is emerging as an additional growth market following the repeal of its inpatient rehabilitation Certificate of Need law.
Workforce development and care-access initiatives are also supporting Encompass Health’s growth. Its clinical career ladder programs are helping improve staff retention, reduce reliance on premium labor and strengthen its ability to care for higher-acuity patients. The company is also expanding its VA business and testing initiatives such as its admit and appeal program, which could create additional growth opportunities.
The company’s financial stability is reinforced by its strong liquidity position and robust cash flow generation. As of June 30, 2025, Encompass Health held $107.7 million in cash and cash equivalents, up 49.2% from the 2025-end level. Operating cash flows increased 17.2% year over year in 2025 and 6.6% in the first half of 2026.
The company boasts a favorable trailing 12-month return on invested capital of 10.1%, surpassing the industry average of 7.1%. EHC increased its 2026 net operating revenue forecast, now to be in the range of $6.41-$6.49 billion. It also increased its adjusted EPS guidance to be between $6.02 and $6.25.
EHC: Risks to WatchThere are some factors, however, that investors should keep a careful eye on.
The company’s operating expenses escalated over the last several years due to higher salaries and benefits expenses. Total expenses increased 10.8% in 2024 and 8.3% year over year in 2025, along with 8.1% and 9.2% in the first quarter and second quarter of 2026, respectively. The persistent escalation of expenses might weigh on its margin growth.
The company carries a significant long-term debt, net of the current portion, which amounted to $2.6 billion at the end of the second quarter. This leads to a net debt-to-capitalization of 41.4%, higher than the industry average of 37.6%.
Other Stocks to ConsiderSome other top-ranked stocks in the Medical space are BrightSpring Health Services, Inc. (BTSG - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Centene Corporation (CNC - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health Services’ current-year earnings of $1.78 per share has witnessed five upward revisions in the past 30 days against no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.1%. The consensus estimate for current-year revenues is pegged at $15.2 billion, suggesting 18.1% year-over-year growth.
The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.93 per share has witnessed three upward revisions in the past 30 days, against no movement in the opposite direction. GMED Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 30 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.
Oceaneering International za měsíc od poslední výsledkové zprávy přidal asi 9,3 %. Ve 2. čtvrtletí tržby vzrostly o 10 % na 768,2 mil. USD a upravená EBITDA stoupla na 114,5 mil. USD.
It has been about a month since the last earnings report for Oceaneering International (OII - Free Report) . Shares have added about 9.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oceaneering International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Oceaneering Q2 Earnings & Revenues Rise Y/Y, Adjusted EBITDA UpOceaneering International reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement.
Total revenues were $768.2 million, increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions.
In the second quarter of 2026, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $114.5 million, up 10.9% year over year.
Operating income increased 11% year over year to $88.2 million. Gross margin expanded to $157 million from $148.4 million, reflecting revenue growth and improved performance across most operating segments.
Q2 Segmental InformationSubsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues totaled $232 million compared with the year-ago quarter’s $218.8 million.
The segment also reported an operating income of $66.3 million compared with $64.5 million a year ago.
The company's segment delivered an EBITDA margin of 35% in the second quarter of 2026, flat compared with the year-ago quarter. Revenue per day for remotely operated vehicles (“ROV”) rose to $11,894, while ROV fleet utilization slightly decreased to 66%.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues totaled $149 million compared with the year-ago quarter’s $145.1 million.
The segment posted an operating profit of $21.9 million in the second quarter, up from the year-ago quarter’s $18.8 million.
The backlog totaled $445 million as of June 30, 2026, down 13.8% from the same time in 2025. For the 12 months ending June 30, 2026, the book-to-bill ratio was 0.88.
Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling.
Revenues increased about 22.5% to $182.8 million from $149.3 million in the year-ago quarter.
The unit’s operating income totaled $30 million compared with the prior-year quarter’s $21.7 million. The company’s operating income margin slightly increased to 16% from the prior-year quarter’s 15%, reflecting favorable project mix and disciplined execution.
Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.
Revenues of $70.8 million decreased from the year-ago quarter’s $75.4 million.
Operating income decreased to $0.1 million from $4.6 million due to lower activity, weaker cost absorption and higher personnel-related costs in West Africa and the Middle East.
Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $133.5 million, up from $109.6 million recorded in the second quarter of 2025.
The operating income increased to $16.4 million from $16.3 million in the year-ago quarter. Operating income margin decreased to 12% from 15% in the year-ago quarter due to program mix and timing.
Capital Expenditure & Balance SheetThe capital expenditure in the second quarter, including acquisitions, totaled $30.8 million.
As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%.
The company repurchased 263,335 shares for approximately $10 million. OII also issued $500 million of senior notes due 2034 and increased its revolving credit commitments to $345 million from $215 million.
Q3 and 2026 Outlook by OceaneeringThe company expects consolidated revenues to increase in the third quarter of 2026, with EBITDA projected in the range of $115 million to $125 million. At the segment level, SSR is expected to post growth in both revenues and operating income. Manufactured Products is projected to witness slight declines in revenues and operating income. OPG is anticipated to deliver increases in both revenues and operating income.
IMDS revenues are expected to increase, while operating income is likely to remain relatively flat. Meanwhile, ADTech is forecasted to report higher revenues and operating income. Unallocated expenses are expected to be in the $50 million range.
Management expressed confidence in the company's outlook for the remainder of 2026, supported by strong first-half execution, healthy demand across most of its businesses and an improved financial position. The company expects offshore activity to continue strengthening, driven by higher rig utilization, longer-duration contracts and sustained demand for subsea services.
Management also expects Subsea Robotics to benefit from higher ROV utilization and continued survey vessel activity, while the Manufactured Products backlog is anticipated to improve in the second half of 2026, supported by recent contract awards and additional opportunities in the sales pipeline. Despite ongoing uncertainty in the Middle East and lower activity in West Africa affecting the IMDS business, management believes the performance of its other operating segments remains in line with or ahead of prior expectations.
The company updated its full-year 2026 consolidated adjusted EBITDA outlook to a range of $400 million to $440 million. OII retained its previously issued consolidated and segment guidance, except that IMDS operating income is now expected to decline significantly, with the operating income margin projected to be in the low-single-digit percentage range.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 9.43% due to these changes.
VGM ScoresAt this time, Oceaneering International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
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 trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Oceaneering International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerOceaneering International belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Weatherford (WFRD - Free Report) , has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Weatherford reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of -8.2%. EPS of $0.55 for the same period compares with $1.87 a year ago.
For the current quarter, Weatherford is expected to post earnings of $1.20 per share, indicating a change of +7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.6% over the last 30 days.
Weatherford has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
It has been about a month since the last earnings report for Badger Meter (BMI - Free Report) . Shares have added about 4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Badger Meter due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
BMI Q2 Earnings Beat on Project Ramps
Badger Meter reported second-quarter 2026 earnings of $1.02 per share, down 12.8% year over year but 1.0% above the $1.01 consensus. Revenues of $222.32 million fell 6.6% but beat the $221.06 million estimate by 0.6%.
Sequential sales increased 10% as awarded utility projects began initial deployments and order rates improved from the first quarter. Utility water sales declined 8%, while flow instrumentation revenues rose 6% on strength in water-related markets.
BMI's Utility Sales Begin To Recover
Utility water sales were down 9% excluding two months of UDlive, reflecting uneven advanced metering infrastructure project pacing. However, organic utility sales improved 8% sequentially. Higher software and other BlueEdge beyond-the-meter sales partly offset lower AMI-related product revenues.
Shipments started for the PRASA project, while several other awarded projects entered early deployment. Management said the nine-project cohort remains broadly solid, although implementation can vary by project and remain uneven because of customer schedules and installation timing.
Badger Meter's Flow Business Adds Support
Flow instrumentation sales increased 6% year over year, supported by broad demand in water-related applications. The quarter also benefited from data-center orders for clamp-on meters and MAG meters used in cooling and flow-monitoring systems.
Management cautioned that the product line should still be viewed as a GDP-like, low-single-digit grower over the five-year strategic horizon. At the ACE26 trade show, customer interest also centered on ORION cellular technology, EyeOnWater Premium, the BEACON Field app and the Cobalt embedded artificial intelligence offering.
BMI Protects Margins Through Cost Discipline
Gross margin contracted 30 basis points to 40.8% as lower volumes and project mix weighed on profitability. The result remained within Badger Meter's normalized 39%-42% range. Operating earnings declined 12.2% to $39.38 million, while operating margin fell 110 basis points to 17.7%.
Base operating earnings, which exclude UDlive, decreased 9.5% to $40.62 million, with margin down 40 basis points to 18.4%. Selling, engineering and administration expenses declined 2.9% to $51.40 million as spending controls and lower incentive compensation offset acquisition-related costs. Electronic component costs and availability remain a watch item.
Badger Meter Works Down Working Capital
Free cash flow fell to $21.90 million from $40.60 million a year earlier. Cash from operations was $26.71 million, while capital expenditures totaled $4.84 million. Primary working capital rose to 22.9% of sales from 20.0% at the end of the first quarter.
During the quarter, BMI spent $94.38 million on acquisitions, $25.25 million on share repurchases and $11.59 million on dividends. It ended June with $95.73 million in cash and an undrawn $150 million credit facility. About $90 million remains under the repurchase authorization.
BMI Adds UDlive To Broaden Water Monitoring
UDlive contributed $2.03 million in sales for May and June and recorded an operating loss of $1.25 million. Its amortization expense was $0.80 million, and management expects ongoing annual intangible amortization of about $5.00 million.
The acquisition expands Badger Meter's sewer-line monitoring leadership and global capabilities. Management attributed the modest initial revenue contribution to timing and said integration progress and early commercial interest were strong. UDlive also complements SmartCover within the company's broader beyond-the-meter portfolio.
Badger Meter Reaffirms the 2026 Outlook
Management continues to expect base quarterly revenues to improve sequentially through the remainder of 2026. Third-quarter sales are expected to rise from the second quarter, while full-year revenues excluding UDlive are projected to be flattish with 2025. Year-over-year growth is expected to be weighted toward the fourth quarter.
Some awarded projects may reach full run rates by year-end, while others will not be at full run rate by then. The company also reaffirmed its five-year framework for high-single-digit sales growth, 10%-15% EPS growth and free cash flow conversion above 100% of net income.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, Badger Meter has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Badger Meter has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
TE Connectivity ve 3. čtvrtletí zvýšila upravený zisk na akcii o 22 % na 2,94 USD a tržby o 14 % na 5,16 miliardy USD, obojí nad odhady. Pro 4. čtvrtletí očekává tržby kolem 5,25 miliardy USD a zisk 3,05 USD na akcii.
A month has gone by since the last earnings report for TE Connectivity (TEL - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TE Connectivity due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
TE Connectivity Q3 Earnings Beat Estimates, Revenues Increase Y/YTE Connectivity reported third-quarter fiscal 2026 adjusted earnings of $2.94 per share, up 22% year over year. The figure beat the Zacks Consensus Estimate of $2.85 by 3.2%.
Net sales increased 14% year over year to $5.16 billion and surpassed the Zacks Consensus estimate by 3.14%. Growth across both the Industrial and Transportation segments supported performance. Orders reached a record $5.7 billion, rising 27% year over year.
TEL’s Q3 Top-Line DetailsTransportation Solutions generated revenues of $2.58 billion, accounting for half of total sales. Segment revenues increased 7% on a reported basis and 5% organically from the year-ago quarter.
Industrial Solutions also recorded revenues of $2.58 billion, representing the remaining half of sales. The figure climbed 22% year over year on a reported basis and 21% organically, reflecting broad-based demand across most of its businesses.
TE Connectivity’s Segment PerformanceWithin Transportation Solutions, Automotive sales rose 5% to $1.91 billion, including 3% organic growth, supported by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 20% to $434 million and increased 18% organically on strong content growth across all regions.
Sensor’s revenues declined 1% to $233 million and fell 3% organically. The segment's adjusted operating income increased to $541 million from $486 million, while adjusted operating margin expanded 90 basis points to 21%.
TEL’s Industrial Businesses Maintain MomentumDigital Data Networks revenues surged 34% to $813 million on both a reported and organic basis, aided by continued momentum in artificial intelligence applications. Management indicated that orders support another strong sequential sales increase for the business in the fourth quarter.
Energy sales increased 34% to $516 million, including 33% organic growth, driven by grid-hardening activity and data-center construction. Automation and Connected Living revenues rose 16% to $664 million, while Aerospace, Defense and Marine sales advanced 12% to $419 million. Medical revenues decreased 7% to $168 million. The segment's adjusted operating income increased to $588 million from $467 million, while adjusted operating margin expanded 70 basis points to 22.8%.
TE Connectivity's Q3 Operating DetailsIn third-quarter fiscal 2026, GAAP gross margin expanded 26 basis points (bps) year over year to 35.6%.
Selling, general and administrative expenses increased to $532 million from $491 million. Research, development and engineering expenses rose to $230 million from $211 million.
GAAP operating income increased to $981 million from $857 million. Operating margin edged up 10 bps to 19%. Adjusted operating income rose to $1.13 billion from $953 million, while adjusted operating margin expanded 90 bps to 21.9%.
TEL’s Cash Flow and Balance SheetAs of June 26, 2026, cash and cash equivalents totaled $1.24 billion. Total debt was $5.63 billion.
TE Connectivity generated $1.19 billion in cash from operating activities during the quarter, nearly unchanged from the prior-year period. Free cash flow declined to $883 million from $962 million.
TEL repurchased $529 million of shares and paid $226 million in dividends during the quarter.
TE Connectivity's Positive Q4 GuidanceFor the fourth quarter of fiscal 2026, TE Connectivity expects sales of approximately $5.25 billion, indicating 11% growth on both a reported and organic basis. Adjusted earnings are projected to be approximately $3.05 per share, representing an 18% year-over-year increase.
TEL also agreed to acquire Astrodyne TDI for approximately $1.4 billion. The business is expected to contribute annual sales of more than $250 million and expand the company's power-management portfolio within Industrial Solutions.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, TE Connectivity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TE Connectivity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Quanta's $53.4B backlog and strong cash generation support its near-term infrastructure outlook.MasTec trades at a lower forward P/E, making valuation its strongest advantage versus Quanta.Quanta's EPS estimates rose sharply, while its grid and large-load exposure strengthens its setup. MasTec, Inc. (MTZ - Free Report) and Quanta Services, Inc. (PWR - Free Report) are two major beneficiaries of North America’s infrastructure investment cycle. MasTec provides engineering and construction services across communications, power delivery, pipelines, clean energy and industrial infrastructure, while Quanta specializes in electric power, utility, renewable energy, communications and other critical infrastructure solutions. MasTec’s business spans transmission, grid modernization, renewables, pipelines and data centers.
The companies increasingly compete for opportunities created by grid modernization, rising electricity demand, AI-driven data centers and large-scale power infrastructure investment. Both recently strengthened their capabilities through acquisitions, making the comparison particularly relevant as infrastructure spending accelerates.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for MasTec StockMasTec enters the second half of 2026 with strong operating momentum. Second-quarter revenues increased 23.4% year over year, while adjusted EBITDA rose 39.8% and adjusted earnings per share (EPS) advanced 48.8%. Its 18-month backlog reached a record $21.4 billion, up 30%, providing solid visibility into future activity.
Growth is broad-based. Clean Energy and Infrastructure revenues surged 43.4%, Power Delivery revenues rose 19.2% and Pipeline Infrastructure revenues increased 19.1%. Pipeline profitability was particularly strong, while Power Delivery is benefiting from utility spending on transmission, grid hardening and reliability. Management sees mission-critical development creating additional requirements for transmission lines, substations and system upgrades.
The acquisition of The Superior Group adds another compelling growth lever. Superior strengthens MasTec’s electrical capabilities and exposure to data center infrastructure, while creating opportunities to combine electrical services with MasTec’s civil, power and communications capabilities. Management believes the combination expands its addressable market and positions MasTec for infrastructure investment driven by AI, electrification and digital infrastructure.
MasTec consequently increased its 2026 adjusted EPS guidance to $9.30, implying 42% year-over-year growth.
However, Communications remains a near-term concern. Lower second-half wireless activity and wireline project deferrals are creating pressure, although management remains positive about longer-term fiber and hyperscaler connectivity opportunities. Superior also increases acquisition-integration and leverage considerations after MasTec funded much of the roughly $1.6-billion purchase with cash and borrowings.
The Case for Quanta StockQuanta is operating from an even stronger position. Second-quarter revenues reached $9.56 billion, rising 41.1% year over year, including 27.4% organic growth. Adjusted EPS increased 71% and adjusted EBITDA climbed 59.5%, while free cash flow reached $886 million.
The company’s record $53.4-billion backlog underscores exceptional demand visibility. Quanta is benefiting from the convergence of grid modernization, power generation and large-load infrastructure. Electric-grid spending is being supported by load growth, interconnections, substations and increasingly visible high-voltage transmission projects. Meanwhile, large multi-year data center programs are substantially expanding its addressable market.
Quanta has also strengthened its self-perform model through acquisitions including Phalcon, Enerfab, Percheron and PSD, expanding electrical, mechanical, fabrication and front-end capabilities. Management sharply raised 2026 expectations, forecasting revenues of $39.3-$39.7 billion and adjusted EPS of $16.45-$16.95. Free cash flow is expected to be in the range of $2-$2.5 billion.
Risks remain. Project timing can be affected by permitting, weather, regulation, supply-chain constraints and trade policy. Acquisitions also add integration risk. Nevertheless, Quanta’s scale, craft-skilled workforce, self-perform capabilities and diversified exposure give it considerable flexibility to allocate resources toward the strongest infrastructure markets.
Market Momentum Clearly Favors QuantaQuanta has been the stronger stock in 2026. PWR has surged 56.9% YTD compared with MasTec’s 25% gain. Both have comfortably outperformed the Zacks Construction sector’s 8.8% rise and the S&P 500’s 12.2% advance.
MTZ vs PWR Price Performance (YTD)
Image Source: Zacks Investment Research
The performance also highlights strong investor enthusiasm for infrastructure contractors benefiting from electrification and data centers, including EMCOR Group (EME - Free Report) and Sterling Infrastructure (STRL - Free Report) . Between MTZ and PWR, however, Quanta’s substantially stronger YTD appreciation reflects greater confidence in its earnings momentum and infrastructure exposure.
MasTec Holds the Valuation AdvantageMasTec offers the more attractive valuation. MTZ trades at 23.74X forward 12-month earnings, well below Quanta’s 37.35X. Both command premiums to the Zacks Construction sector’s 19.99X multiple.
MTZ vs PWR Valuation (P/E F12M)
Image Source: Zacks Investment Research
The comparison with infrastructure peers such as EMCOR and Sterling reinforces the importance of balancing structural growth prospects against valuation. Quanta’s premium reflects its scale, execution, cash generation and strong positioning across grid and large-load markets. Yet MTZ provides exposure to many of the same secular themes at a considerably lower earnings multiple. Therefore, valuation is clearly MasTec’s strongest relative advantage.
Estimate Revisions Tilt Toward Quanta StockMasTec’s estimate trend is mixed. Over the past 30 days, the Zacks Consensus Estimate for 2026 EPS increased from $9.19 to $9.31, while the 2027 estimate declined from $12.91 to $12.77. The consensus mark implies 42.1% EPS growth and 27.1% revenue growth in 2026, followed by 37.2% EPS growth and 17.4% revenue growth in 2027.
MTZ EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Quanta has stronger estimate momentum. Its 2026 consensus estimate for EPS climbed from $14.01 to $16.37, while the 2027 estimate increased from $16.43 to $18.96. The consensus estimate projects 52.3% EPS growth and 38.4% revenue growth in 2026, followed by 15.8% EPS growth and 14.9% revenue growth in 2027.
PWR EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Which Stock Emerges as the Better Pick?MasTec offers the cheaper valuation and substantial upside from Superior, data centers, power delivery and its record backlog. Its stronger projected 2027 EPS growth also suggests meaningful room for continued earnings expansion.
However, Quanta currently holds the edge. Its larger backlog, stronger cash generation, broader exposure to electric-grid and large-load investment, superior YTD stock performance and sharply positive EPS estimate revisions provide a stronger near-term investment setup. Quanta’s premium valuation is the principal drawback, but its execution and earnings visibility help support that premium.
With MasTec carrying a Zacks Rank #3 (Hold) and Quanta sporting a Zacks Rank #1 (Strong Buy), Quanta appears to offer the better upside potential at present, while MasTec remains an attractive infrastructure name to watch given its lower valuation and strengthening data center exposure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Knight-Swift ve 2. čtvrtletí překonal odhady: upravený EPS činil 63 centů a tržby 2,10 miliardy USD. Firma zároveň čeká ve 3. čtvrtletí upravený zisk 71–77 centů na akcii.
A month has gone by since the last earnings report for Knight-Swift Transportation Holdings (KNX - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Knight-Swift due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Knight-Swift Q2 Earnings Beat EstimatesKnight-Swift reported second-quarter 2026 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 28.6% and increased 80.0% year over year. Stronger pricing and network efficiency across asset-based operations supported the improvement.
Total revenues of $2.10 billion surpassed the consensus mark of $2.01 billion by 4.3% and rose 12.6% year over year. Truckload revenue per loaded mile, excluding fuel surcharge and intersegment transactions, increased 5.5%.
KNX’s Consolidated Profitability Improves
Revenue excluding truckload and LTL fuel surcharge increased 5.5% year over year to $1.76 billion. Operating income rose 44.4% to $104.85 million, while adjusted operating income advanced 45.5% to $150.95 million.
The consolidated operating ratio improved 110 basis points to 95.0%. The adjusted operating ratio improved 240 basis points to 91.4%, reflecting better pricing and network efficiency across the asset-based businesses. Adjusted net income climbed 79.7% to $102.75 million.
Knight-Swift’s Truckload Engine Accelerates
Truckload revenues, excluding fuel surcharge and intersegment transactions, increased 2.8% year over year to $1.10 billion. The gain came despite a 2.6% decline in loaded miles, as tighter driver availability pressured the seated tractor count.
Adjusted operating income surged 69.4% to $98.92 million. The adjusted operating ratio improved 360 basis points to 91.0%, helped by pricing gains and a 140-basis-point reduction in empty miles. U.S. Xpress’ over-the-road division achieved its first profitable quarter since the acquisition.
KNX’s LTL Mix Supports Margin Recovery
Less-than-truckload revenues, excluding fuel surcharge, declined 1.4% to $333.01 million as shipments per day fell 3.7%. However, daily tonnage increased 4.0%, weight per shipment rose 7.9% and length of haul expanded 5.3%.
Revenue per shipment, excluding fuel surcharge, grew 3.4%, while revenue per hundredweight fell 4.2% because of heavier shipments. Adjusted operating income increased 13.3% to $26.45 million, and the adjusted operating ratio improved 100 basis points to 92.1%.
Knight-Swift’s Logistics and Intermodal Diverge
Logistics revenues rose 8.9% to $139.70 million, driven by a 29.6% increase in revenue per load, partly offset by a 16.4% drop in load count. Gross margin contracted 350 basis points to 15.4% as purchased transportation costs increased faster than customer pricing. Adjusted operating income declined 25.7%.
Intermodal revenues jumped 34.9% to $113.39 million. Load count increased 19.6% and revenue per load rose 12.8%, helping the segment post operating income of $0.65 million versus a $3.43 million loss a year earlier. Its operating ratio improved 470 basis points to 99.4%.
KNX’s Other Businesses Face Special Charges
All Other Segments’ revenues increased 41.8% year over year to $105.56 million, supported by growth in warehousing and trailer leasing. These businesses generated an additional $7 million of income contribution compared with the prior-year quarter.
The segment recorded an operating loss of $10.43 million compared with income of $6.75 million a year earlier. Results included $5.8 million of accounts receivable securitization costs and an $18.2 million severance charge primarily tied to the former executive chairman’s retirement.
Knight-Swift’s Liquidity and Capital Spending
Knight-Swift ended June with $186.11 million in cash and cash equivalents. Year-to-date operating cash flow was $450.36 million, while free cash flow totaled $190.44 million after $259.92 million of net capital expenditures.
The company issued $1.50 billion of 1% convertible notes and used proceeds to repay floating-rate borrowings. Management expects the refinancing to generate roughly $44 million of annual pretax savings. Full-year net cash capital expenditures remain projected at $600-$650 million.
KNX’s Q3 Outlook Points Higher
KNX expects third-quarter 2026 adjusted earnings of 71-77 cents per share. Truckload revenue, excluding fuel surcharge, is projected to rise by a mid-single-digit percentage, with the adjusted operating ratio improving 650-750 basis points year over year.
LTL revenue, excluding fuel surcharge, is expected to grow by a low-single-digit percentage, with the adjusted operating ratio in the low 90s. Logistics performance is expected to remain fairly stable sequentially, while intermodal revenue is projected to increase by a low-single-digit percentage from the second quarter.
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 8.2% due to these changes.
VGM ScoresAt this time, Knight-Swift has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Knight-Swift has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
It has been about a month since the last earnings report for Westinghouse Air Brake Technologies (WAB - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Wabtec due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Wabtec Q2 Earnings Beat EstimatesQuarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion. Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%. Growth across Freight and Transit, supported by acquisitions and organic expansion, drove the top line. The 12-month backlog increased 11.3% to $9.14 billion.
WAB's Freight Segment Drives Broad-Based GrowthFreight segment revenues increased 16.9% year over year to $2.24 billion. Equipment sales rose 35% to $737 million on higher locomotive deliveries, while Digital Intelligence sales surged 88.5% to $360 million, aided by the acquisitions of Inspection Technologies and Frauscher Sensor Technologies.
Services revenues declined 4.2% to $748 million because of lower modernization deliveries, as expected. Components revenues were nearly flat at $398 million. Freight-adjusted operating margin improved 80 basis points to 25.8%, reflecting better gross margins despite higher operating expenses as a percentage of sales.
Wabtec's Transit Business Posts Margin ExpansionTransit segment revenues rose 18.9% to $936 million. The increase reflected the Dellner Couplers acquisition, higher original equipment and aftermarket sales and favorable foreign currency movements. On a constant-currency basis, segment sales advanced 17.7%.
Original equipment revenues grew to $411 million from $353 million, while aftermarket revenues increased to $525 million from $434 million. Adjusted operating margin expanded 250 basis points to 17.7%, supported by improved gross profitability.
WAB Benefits From Acquisition and Organic GainsAcquisitions contributed $232 million to second-quarter sales growth, including $163 million in Freight and $69 million in Transit. Organic growth added another $229 million, split between $158 million in Freight and $71 million in Transit.
Favorable foreign exchange contributed $24 million, while portfolio optimization actions reduced revenues by $12 million. The mix shows that Wabtec’s growth was not solely acquisition-driven, as underlying demand also made a meaningful contribution.
Wabtec Expands Consolidated ProfitabilityAdjusted gross margin increased 190 basis points to 36.7%, while adjusted operating margin improved 80 basis points to 21.9%. Robust sales growth and stronger gross margins supported profitability across the organization.
WAB's Backlog Supports Revenue VisibilityTotal backlog reached $30.93 billion as of June 30, 2026, up 41.7% from $21.83 billion a year earlier. Freight backlog increased to $25.33 billion, while Transit backlog rose to $5.60 billion.
The 12-month backlog grew by $930 million year over year. Freight accounted for $6.64 billion of the near-term backlog, while Transit represented $2.50 billion. This order coverage provides visibility into production and service activity across both core businesses.
Wabtec Generates Stronger Operating Cash FlowCash from operations increased to $441 million from $209 million in the prior-year quarter. Operating cash flow conversion improved to 82% from 46%, aided by higher net income and favorable working-capital movements.
Wabtec ended the quarter with $670 million in cash, cash equivalents and restricted cash. Total available liquidity was $2.02 billion, including $1.36 billion available under existing credit facilities. Total debt stood at $6.57 billion, including $4.92 billion of long-term debt.
During the reported quarter, Wabtec repurchased $215 million of shares and paid $53 million in dividends.
Outlook RaisedApart from the better-than-expected results, Wabtec has raised its full-year 2026 guidance. The company raised its 2026 adjusted earnings guidance to $10.60-$10.90 per share from the previous $10.25-$10.65 range. The midpoint increased by 30 cents and represents expected year-over-year growth of approximately 19.9%. The company also raised its 2026 revenue guidance to a range of $12.30-$12.60 billion from the prior view of $12.19-$12.49 billion. The midpoint rose by $110 million and implies growth of approximately 11.5% from 2025.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, Wabtec has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Wabtec has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Quest Diagnostics ve 2. čtvrtletí zaznamenala dvouciferný růst tržeb v nemocničním segmentu a v několika oblastech Advanced Diagnostics. Zároveň cílí na 3% roční úspory nákladů v rámci programu Invigorate kvůli zadlužení a tlaku na úhrady.
Key Takeaways Quest Diagnostics is seeing strong growth in physician, hospital and consumer channels.DGX's Advanced Diagnostics delivered double-digit growth in several clinical areas in the second quarter.Quest Diagnostics targets 3% annual cost savings as debt and reimbursement pressures weigh on results. Quest Diagnostics (DGX - Free Report) is well-poised to grow in the coming quarters owing to its solid growth momentum in the physician, hospital and consumer channels. Broader adoption of the company’s Advanced Diagnostics offerings, across five key clinical areas, also supports the growth outlook. Further, Quest Diagnostics continues to use automation and AI to improve the quality and productivity of its operations.Still, elevated debt and ongoing uncertainty around reimbursement and costs could weigh on results.
In the past year, this Zacks Rank #3 (Hold) stock has rallied 33.9% compared with the industry’s 19.4% growth and the S&P 500 Composite’s 21.5% rise.
The renowned provider of diagnostic information services has a market capitalization of $26.68 billion. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.77%.
Factors Favoring DGXGrowth Momentum in the Base Business: Quest Diagnostics continues to address the needs of physicians, hospitals and consumers through broader access, clinical innovation and offering more integrated solutions. In the second quarter of 2026, physician channel revenues increased in the high single-digit range, supported by new customer wins, higher business with existing customers and growth in regions where the company expanded health plan access and completed acquisitions. The Fresenius Medical Care collaboration is also broadening Quest Diagnostics’ capabilities in kidney care.
Hospital channel revenues grew at a double-digit rate, primarily from Co-Lab Solutions with Corewell Health. Reference-testing revenues increased from both the first quarter and the prior-year period. The consumer-testing platform, QuestHealth.com, continued to generate revenue growth, supported by demand for wellness panels and newer services such as thyroid testing. The platform is also attracting consumer, wearable and wellness partners through flexible technology integration.
Image Source: Zacks Investment Research
Strong Potential of Advanced Diagnostics: Quest Diagnostics is expanding advanced diagnostics across cardiometabolic and endocrine, autoimmune, brain health, oncology and women’s and reproductive health. Several of these areas delivered double-digit revenue growth in the second quarter of 2026. Demand remained elevated for ApoB, Lp(a) and liver fibrosis tests, while the company continued to grow its analyzer solution for autoimmune disorders.
In brain health, the AD-Detect portfolio again produced double-digit growth. In oncology, New York State approved Haystack minimal residual disease, allowing commercial expansion across all 50 states. Quest Diagnostics also integrated selected cancer tests with Flatiron Health’s OncoEMR Molecular Profiling Integration platform. A pilot program with American Oncology Network is expected to support a broader rollout to Flatiron’s 4,700 clinicians and other providers later in 2026.
Strategic Imperative to Drive Operational Excellence: Quest Diagnostics’ Invigorate program now targets 3% annual cost savings and productivity improvements. The company is using automation and AI across laboratory and administrative processes to offset labor, benefit and reimbursement pressures while improving service quality. During the second quarter, Quest Diagnostics expanded AI-enabled cervical cancer screening and front-end specimen-processing automation to additional laboratories.
The company also launched IntelliDraw to guide specimen collection at physician offices and plans to introduce an AI-based supply tool at patient service centers. Project Nova remains a multi-year effort to transform order-to-cash processes, with higher spending expected in the second half of 2026 and the first implementation wave planned for fall 2027.
What Ails DGX?Elevated Debt Level: As of June 30, 2026, the company’s long-term debt was $5.63 billion and cash and cash equivalents totaled $626 million. The current portion of long-term debt declined to $10 million after the company repaid $500 million of notes due in June and issued $500 million of 5.00% notes due in 2036. Interest expense totaled $126 million in the first half. Elevated debt could constrain financial flexibility as the company continues investing in acquisitions, automation and Project Nova.
Unstable Reimbursement and Cost Backdrop: Quest Diagnostics remains exposed to changes in government reimbursement, health policy and payer bargaining power. Management continues to assume a 30-basis-point (bps) revenue impact in 2026 from the expiration of enhanced Affordable Care Act exchange subsidies. Exchange requisitions were down about 8%, although higher tests per requisition and payer mix kept related revenues roughly flat through the second quarter. Second-quarter cost of services increased 10.9% year over year, while adjusted operating margin declined 40 bps to 16.5%.
DGX Stock Estimate TrendThe Zacks Consensus Estimate for Quest Diagnostics’ 2026 earnings per share (EPS) is projected to increase 13.2% to $11.15.
The consensus mark for 2026 revenues is pegged at $12.01 billion, suggesting 8.9% growth from the year-ago reported number.
Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and Teleflex (TFX - Free Report) .
Globus Medical has an earnings yield of 5.8% compared to the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 37.1% against the industry’s 4.2% decline over the past year.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% against the industry’s negative 1.7% yield. Shares of the company have risen 34.8% against the industry’s 4.2% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%.
Teleflex, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have rallied 4.3% against the industry’s 4.3% decline over the past year.
Cleveland-Cliffs oznámila investici 1 mld. USD do závodu Middletown Works, částečně financovanou grantem 500 mil. USD od amerického ministerstva energetiky. Akcie na to dnes výrazně posílily.
Shares of steelmaker Cleveland-Cliffs (CLF +4.75%) soared today after the company announced a major investment. That wasn't the only reason for the stock jumping 7% as of 12:23 p.m. ET, though.
The stock is also bouncing back, along with other steel stocks, after names in the sector plunged yesterday. That came after word that a tentative trade agreement between the U.S. and Canada might reportedly reduce tariffs on specific Canadian steel and aluminum exports from 50% to 25%.
Image source: Getty Images.
Cliffs stock is bouncing more than other steel names today after announcing a $1 billion investment in its operations. The investment is going to Cleveland-Cliffs' main facility, Middletown Works, located in Middletown, Ohio. It is their premier plant for manufacturing top-quality, automotive-grade steels specifically designed for exposed vehicle parts.
The investment will be partially made with a $500 million grant from the U.S. Department of Energy. The company plans to upgrade its blast furnace operation at Middletown Works with advanced technology to improve efficiency and extend its longevity.
Today's Change
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That's helping the stock overcome yesterday's news of a potential reduction in Canadian steel tariffs. While lower tariffs on Canadian steel could put pressure on steel prices, it is also good news for Cliffs in one way. Cleveland-Cliffs made a $2.5 billion acquisition of the Canadian steelmaker Stelco in November 2024. That facility should benefit from the announced lower tariffs.
The market is rewarding Cleveland-Cliffs on both accounts today.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Hims & Hers čelí vyšetřování kvůli údajnému porušení federálních zákonů o cenných papírech a žalobě FTC. Po zprávě akcie 29. července klesly o 14,73 % na 25,00 USD.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Hims & Hers (HIMS) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in Hims & Hers 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, Aug. 21, 2026 (GLOBE NEWSWIRE) --
What’s Happening:
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Hims & Hers Health, Inc. (“Hims & Hers” or the “Company”) (NYSE:HIMS) on behalf of Hims & Hers stockholders. Our investigation concerns whether Hims & Hers has violated the federal securities laws and/or engaged in other unlawful business practices.
Investigation Details:
On July 29, 2026, the Federal Trade Commission (“FTC”), the People of the State of California through Los Angeles County Counsel and the Utah Division of Consumer Protection sued Hims & Hers in the Northern District of California. According to the FTC, the action alleges that Hims & Hers fails to clearly disclose that it charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they will be able to consult with a medical provider to find a treatment that is “right for them.” The FTC also alleges that the company has made it difficult for consumers to cancel subscriptions and misled consumers about keeping their health information private. The FTC alleges that Hims shared consumers’ health information with Meta, Snap and other third parties.
Following this news, the price of Hims & Hers stock fell $4.32 per share, or 14.73%, to close at $25.00 per share on July 29, 2026.
Next Steps:
If you purchased or otherwise acquired Hims & Hers 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], by 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.
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Petrobras zahájila jednání o průzkumných smlouvách ke čtyřem offshore blokům v ghanské pánvi Keta. Firma chce učinit Afriku mimo Brazílii hlavním regionem pro průzkum.
Brazil's state-run oil company, Petrobras (PETR3.SA), said on Friday it had submitted an expression of interest for exploration blocks in Ghana and begun negotiations.
The West African nation's Ministry of Energy and Green Transition had approved its application to negotiate exploration contracts for four offshore blocks in the Keta Basin, Petrobras said.
Sylvia Anjos, Petrobras' head of exploration and production, told Reuters that the Ghana blocks are geologically similar to Brazil's Equatorial Margin, which is considered the country's most promising oil frontier.
The oil major plans to make Africa its main exploratory region outside of Brazil, Petrobras Chief Executive Magda Chambriard told Reuters last year.
Beyond Ghana, Petrobras has been looking in to several African countries for opportunities, including Sao Tome and Principe, Namibia, Ivory Coast and South Africa.
The move is aligned with Petrobras' strategy of replenishing oil and gas reserves through exploration in new frontier areas in Brazil and abroad, the company said in a securities filing. It added that it is evaluating opportunities to diversify its exploration portfolio and support long-term growth.
Wolfe Research čeká, že Nebius Group může do konce roku 2030 dosáhnout více než 41 miliard USD ročních opakujících se tržeb, tedy téměř desetinásobku modelovaných 4,26 miliardy USD za 3. čtvrtletí 2026. Klíčem má být 5 GW smluvního výkonu a růst kapacity od roku 2027.
The AI infrastructure boom is moving into a new phase. Demand for computing power is no longer the only constraint; access to electricity, data-center capacity, and financing are becoming just as important. Customers are committing billions of dollars years ahead of delivery, while scarce power supports pricing. For investors, contracted power is becoming a financial asset as much as an operating metric.
Wolfe Research believes Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) can exit 2030 with more than $41 billion of annual recurring revenue (ARR) — nearly 10 times the $4.26 billion ARR shown for the third quarter of 2026 in its model. The thesis is aggressive, but its building blocks are visible.
Power Is Becoming Revenue Nebius just raised its year-end 2026 contracted-power target to 5 gigawatts, up from more than 4 GW. Management said it plans to deploy more than 1 GW annually beginning in 2027, and Reuters reported that the company believes it can sell its 2027 capacity at current terms.
The Wolfe model translates that power ramp into ARR growth: $6.3 billion in fiscal 2026, $13.9 billion in 2027, $22.8 billion in 2028, $31.8 billion in 2029, and $41.2 billion in 2030. That assumes Nebius can repeatedly convert electricity into revenue-producing capacity.
Forget the chips—the real AI war is being fought over electricity. With billions in upfront payments from tech titans, the race to turn raw power into revenue has officially reached a fever pitch. Customers Are Helping Fund the Buildout Nebius’ Q2 2026 shareholder letter said annual contract value per megawatt had climbed above $20 million for Q2 deals and above $40 million for short-term Q3 capacity deals. Four deals averaged more than $1 billion each, while 50% to 60% of their capex was self-financed through customer prepayments.
Nebius’ 2025 annual report provides an example. Microsoft‘s (NASDAQ:MSFT) agreement can generate as much as $17.4 billion through 2031 and includes roughly $7 billion of upfront payments. Meta Platforms‘ (NASDAQ:META) March agreement carried a potential contract value of about $27 billion.
That reduces Nebius’ financing burden while long-duration contracts provide revenue visibility.
The Margin Test Still Matters Admittedly, contracted power is not completed infrastructure. Nebius spent about $5.7 billion on capital expenditures in Q2 alone, according to its shareholder letter, while 2026 revenue guidance remains $3 billion to $3.4 billion.
The company also faces competition from Nvidia (NASDAQ:NVDA)-powered cloud providers such as CoreWeave (NASDAQ:CRWV). Nebius must turn scarce power into energized capacity quickly enough to preserve returns.
Surprisingly, its Q2 AI cloud adjusted EBITDA margin reached 50%. That gives the model some credibility, but sustaining those economics while adding more than 1 GW annually will be the key test.
Key Takeaway In short, Wolfe’s $41 billion ARR forecast is a high bar, but the math has a foundation. Nebius must convert 5 GW of contracted power into capacity, maintain pricing above $20 million per MW, and keep using customer prepayments to fund growth.
For investors, Nebius is a high-risk, high-upside AI infrastructure bet. The 10x ARR opportunity is worth watching, but the real signal will be whether margins hold as the gigawatts come online.
Contact [email protected] for any questions or corrections.
Rigetti ve 2. čtvrtletí zvýšila tržby o 185,3 % na 5,1 mil. USD, ale provozní ztráta se prohloubila na 28,1 mil. USD. Akcie RGTI se obchodují za 104,7násobek očekávaných tržeb.
Key Takeaways Rigetti's Q2 revenue rose 185.3% to $5.1M, driven mainly by 9-qubit Novera systems and related products.Operating loss widened to $28.1M as operating expenses rose 47.9% and R&D spending climbed 53.3%.RGTI trades at 104.7X forward sales, while one customer supplied 64% of Q2 revenue and another 16%. Rigetti Computing, Inc. (RGTI - Free Report) is showing measurable commercial progress as demand for its quantum systems broadens and hardware performance improves. The company is also investing aggressively to push its chiplet-based architecture toward larger systems and higher gate fidelity, a measure of operation accuracy.
That opportunity comes with a demanding valuation and an operating model that remains far from scale. For investors weighing whether to buy now or wait, commercial traction must be balanced against losses, execution risk and a premium price.
Rigetti's Sales Growth Shows Commercial TractionSecond-quarter 2026 revenues climbed 185.3% year over year to $5.1 million, driven mainly by sales of 9-qubit Novera systems and related products. The increase shows that on-premises hardware is beginning to contribute more meaningfully alongside development contracts and cloud access.
Rigetti also has an $8.4 million order from India’s Centre for Development of Advanced Computing (C-DAC) for an on-premises 108-qubit system. Management expects to recognize that revenue in the fourth quarter of 2026 after installation and performance acceptance testing, giving the company another sizable system milestone if deployment remains on schedule.
RGTI's Cost Base Still Outruns RevenueThe spending required to advance Rigetti’s roadmap remains much larger than its current revenue base. Second-quarter operating expenses rose 47.9% year over year to $30.3 million, while research and development spending increased 53.3% to $20.7 million.
Operating loss widened to $28.1 million from $19.9 million a year earlier. Management expects research and development spending to increase and 2026 capital expenditures to stay elevated as Rigetti invests in fabrication equipment, dilution refrigeration needed to cool quantum hardware and infrastructure for higher-qubit systems.
Rigetti's Liquidity Extends Its RunwayRigetti ended the second quarter with $541.3 million in cash, cash equivalents and available-for-sale investments and no debt. That liquidity gives the company room to fund work on scale, fidelity, system integration and planned infrastructure without an immediate reliance on debt financing.
The balance sheet does not remove execution risk, but it lowers near-term financing pressure while losses remain high. Rigetti can continue funding technical milestones even as commercial revenues remain tied to system deliveries and project timing.
RGTI's Valuation Leaves Little Room for MissesRGTI trades at 98.7X forward 12-month sales, far above 3.9X for its Zacks sub-industry and 5.0X for the S&P 500. One customer accounted for 64% of second-quarter revenues and another for 16%, while the prospective U.S. Department of Commerce award would involve equity issuance if finalized. That combination leaves little room for delivery or technology delays.
Image Source: Zacks Investment Research
Commercialization across quantum computing is also uneven. IonQ (IONQ - Free Report) reported second-quarter 2026 revenues of $80.1 million, showing that some peers have reached a larger revenue base. D-Wave Quantum (QBTS - Free Report) reported $3.1 million for the quarter, illustrating that revenue scale still varies widely across competing platforms.
Image Source: Zacks Investment Research
RGTI's Scores Argue for Investor PatienceThe current setup favors patience rather than chasing Rigetti’s long-term technology potential at any price. The stock carries a Zacks Rank #5 (Strong Sell), while its Value Score of F, Growth Score of F, Momentum Score of D and VGM Score of F present an unfavorable near-term combination.
Zacks Style Scores are designed to complement the Zacks Rank, not override it. Rigetti’s technical progress and system sales may improve its long-term opportunity, but the current Rank and weak Style Scores, combined with a triple-digit sales multiple and high execution demands, support a cautious wait-and-see stance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rogers Communications za poslední měsíc po posledních výsledcích přidala asi 11,3 %. Ve 2. čtvrtletí překonala odhady: upravený zisk činil 83 centů na akcii a tržby 4,06 miliardy USD.
A month has gone by since the last earnings report for Rogers Communication (RCI - Free Report) . Shares have added about 11.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Rogers Communication due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Rogers Communications Q2 Earnings Beat Estimates, Revenues Rise Y/YRogers Communications reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.
Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.
Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter.
Q2 Segmental Details of RCIWireless Details
Wireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.
Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.
As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.
As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.
Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion.
Cable Details
Cable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.
Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.
As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.
As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.
Cable segment operating costs increased 0.6% year over year to C$826 million.
Media Details
Media revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.
Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind.
Consolidated Results
Consolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.
Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%.
RCI’s Q2 Balance Sheet & Cash Flow DetailsAs of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.
Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.
Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026.
RCI Reaffirms 2026 OutlookFor 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.
Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in fresh estimates.
The consensus estimate has shifted 9.56% due to these changes.
VGM ScoresCurrently, Rogers Communication has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
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.
Outlook Rogers Communication has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Key Takeaways Kohl's Q2 revenues are expected to fall 0.9% to $3.52 billion amid cautious, value-focused spending.Weakness in Sephora, footwear and men's may have limited sales gains despite assortment changes.Cleaner inventories, proprietary-brand momentum and digital enhancements may have supported Kohl's results. Kohl's Corporation (KSS - Free Report) is likely to witness a top-line decline when it reports second-quarter fiscal 2026 earnings on Aug. 26. The Zacks Consensus Estimate for revenues is pegged at $3.52 billion, indicating a 0.9% decrease from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged in the past 30 days at 56 cents per share, indicating flat year-over-year growth. KSS has a trailing four-quarter earnings surprise of 69%, on average.
Factors Likely to Influence KSS’ Q2 ResultsKohl’s has been navigating a difficult consumer backdrop, particularly among its core middle and lower-income shoppers, who remain pressured by a challenging macroeconomic environment. Discretionary spending remains tight and customers are increasingly value-focused and selective, which is likely to have weighed on overall sales in the quarter under review.
Category-specific softness is also likely to have weighed on Kohl’s second-quarter performance. Sephora’s mixed performance might have remained a headwind, as the business declined low single digits in the fiscal first quarter, with weakness in makeup and skincare partly offset by strength in fragrance and hair care. Although new products and brands were being introduced and rolled out, their contribution could take time to build, limiting the benefit to sales during the quarter.
Margins are likely to have remained under pressure from Kohl’s emphasis on delivering sharper value and supporting customer engagement through promotions and coupons. Management has noted that investments in value could offset benefits from cleaner inventories and a stronger proprietary-brand mix. Higher digital penetration has also carried incremental shipping costs, while transportation expenses might have added pressure. We expect gross profit to decline 2.1% year over year and gross margin to decrease 40 basis points in the second quarter.
Despite these headwinds, Kohl’s is likely to have benefited from improving execution, proprietary-brand momentum and omnichannel initiatives. The company entered the quarter with cleaner inventories, stronger apparel depth and improved in-stock positioning, while its proprietary brands had been resonating well with value-conscious shoppers. Digital enhancements, including improved product discovery and AI-powered shopping tools, alongside improving trends among Kohl’s Card customers, are also likely to have provided some support.
Earnings Whispers for KSS StockOur proven model doesn’t conclusively predict an earnings beat for Kohl's this time. 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, which is not the case here.
Kohl's currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington's upcoming quarter’s earnings per share is pegged at $2.18, which implies 37.1% growth year over year. The consensus estimate for the quarterly revenues is pinned at $3.02 billion, which indicates 11.8% growth from the figure reported in the prior-year quarter. BURL delivered a trailing four-quarter earnings surprise of 14%, on average.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $1.21 billion, which indicates an increase of 17.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s upcoming quarter’s earnings per share is pegged at $1.28, implying 58% year-over-year growth. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $94.46 billion, indicating a 9.6% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $6.51 per share, implying 10.9% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1%, on average.
CAVA ve 2. čtvrtletí zvýšila tržby v porovnatelných provozovnách o 9 % díky 5,3% růstu návštěvnosti. Firma potvrdila výhled na rok 2026 na 4,5 % až 6,5 %.
Key Takeaways CAVA's Q2 same-store sales rose 9%, driven by a 5.3% increase in traffic.CAVA's Q2 Same-store sales recovered to the mid-single-digit range after Cyclospora concerns pressured demand.CAVA maintained 2026 comps guidance of 4.5%-6.5%, supported by loyalty growth and menu innovation. CAVA Group, Inc. (CAVA - Free Report) reported 9% same-store sales growth in the second quarter of 2026, driven by a 5.3% increase in traffic. The traffic-led performance points to solid underlying demand, although broader food-safety concerns created a near-term sales headwind around the end of the quarter and into the third quarter. Concerns surrounding the Cyclospora outbreak affected consumer demand for lettuce and fresh produce, even though CAVA does not source leafy greens from Mexico or serve iceberg lettuce.
Recent sales trends indicate that the pressure has moderated. Same-store sales initially slowed to flat to positive as Cyclospora concerns intensified, but improved each week sequentially and most recently recovered to the mid-single-digit range. CAVA also reported no immediate impact from the recent Salmonella outbreak and does not source from the associated farms. The company continues to monitor food-safety developments through its external Food Safety Advisory Council and existing supply-chain traceability capabilities.
The full-year outlook supports continued comparable-sales growth, although at a more moderate rate than the second-quarter pace. CAVA maintained its 2026 same-store sales growth guidance of 4.5%-6.5%, incorporating the impact experienced to date and a prudent assumption regarding the duration of remaining Cyclospora-related pressure. The low end of the range would imply slightly negative same-store sales in the second half, while the upper end would imply mid-single-digit growth. The company stated that current trends do not indicate performance at the lower end of the range.
Several demand indicators provide additional support. Restaurants in lower-income markets are generating the strongest same-store sales results, while restrained menu-price increases are supporting accessibility. CAVA’s loyalty membership is growing faster than its restaurant base, and Pomegranate Glazed Salmon increased the rate of new customers while driving higher frequency among loyalty members who purchased the product. These trends indicate continued traction across value, customer engagement and menu innovation.
Broader restaurant performance also remains favorable. New restaurant productivity stayed above 100%, with strength across geographies and restaurant formats, while the 2024 cohort is generating double-digit same-store sales. These operating fundamentals support the durability of positive comparable-sales growth despite near-term food-safety concerns.
CAVA’s Price Performance, Valuation & EstimatesCAVA’s shares have gained 6.9% in the past year against the industry’s 6.9% decline. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) and McDonald's Corporation (MCD - Free Report) have declined 21.8% and 14.1%, respectively.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 5, above the industry’s average of 3.12. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 3.49 and 6.55, respectively.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 earnings per share has declined in the past 60 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
The company is likely to report flat earnings in 2026 on a year-over-year basis. Conversely, industry players such as McDonald’s and Dutch Bros are likely to witness an increase of 5.6% and 27.6%, respectively, year over year in 2026 earnings.
CAVA’s Zacks RankCAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tržby společnosti IREN ve čtvrtletí klesly na 144,8 mil. USD, ale výnosy z AI cloudu téměř zdvojnásobily na 33,6 mil. USD. Firma míří na více než 4 mld. USD ročního opakujícího se výnosu do konce roku 2026.
Key Takeaways IREN's AI cloud revenues nearly doubled sequentially to $33.6 million in the March-end quarter.IREN targets over $4 billion in year-end 2026 annualized run-rate revenue, with about 85% contracted.IREN's Horizon 1 was accepted under Microsoft's five-year, $9.7 billion cloud services contract. IREN Limited’s (IREN - Free Report) will now report fiscal 2026 results on Aug. 27, after market close, giving investors a view of how quickly its business is shifting from Bitcoin mining toward AI cloud. The March-end quarter showed that transition clearly: revenues fell to $144.8 million, while AI cloud revenue nearly doubled sequentially to $33.6 million.
The biggest number to watch is AI cloud growth. IREN raised its year-end 2026 annualized run-rate revenue target from $3.7 billion to more than $4 billion after signing $2.8 billion of new multi-year contracts. About 85% of that target is already contracted, making deployment and customer acceptance important.
Execution at Childress will matter just as much as bookings. Horizon 1, the first of four 50MW liquid-cooled deployments for Microsoft, has been delivered and accepted under a five-year, $9.7 billion cloud services contract. Investors should watch the timing of Horizons 2-4 and progress toward 480MW of 2026 AI cloud capacity.
The earnings mix is another key issue. In the March-end quarter, Bitcoin mining revenue dropped to $111.2 million from $167.4 million in the prior quarter as mining hardware was decommissioned, while adjusted EBITDA fell to $59.5 million. The upcoming earnings report should show whether faster AI revenue is starting to offset that decline.
Funding remains central to the expansion plan. IREN reported about $7.6 billion of cash and cash equivalents as of June 30, including $1.7 billion of restricted cash tied to Microsoft GPU financing. Recent customer prepayments covered roughly 45% of associated GPU capital expenditure, which could reduce the company’s net funding needs.
IREN vs. Peers: Who Leads the AI Data Center Race?Applied Digital Corporation (APLD - Free Report) offers investors another useful AI-infrastructure read-through. Applied Digital posted fiscal fourth-quarter revenues of $258.7 million, up 407% year over year, while adjusted EBITDA reached $42.4 million. Applied Digital also signed a 15-year, 300MW hyperscaler lease worth about $7.5 billion, keeping new-capacity delivery and financing firmly in focus ahead.
Cipher Digital Inc. (CIFR - Free Report) is making a similar shift from Bitcoin mining toward high-performance computing. Cipher Digital posted second-quarter 2026 revenues of $25 million and adjusted EBITDA of negative $30 million. Cipher Digital also began Black Pearl rent in August, two months early, making data-center delivery, HPC leasing, and project financing investor watchpoints.
IREN’s Price Performance, Valuation and EstimatesShares of IREN have declined 25% over the past three months, underperforming the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), IREN is currently trading at 4.32X, which is at a premium to the industry average of 2.58X.
Image Source: Zacks Investment Research
Estimates for IREN’s 2026 and 2027 earnings have been revised downward in the past 30 days. However, the company is expected to report a profit next year.
Image Source: Zacks Investment Research
Currently, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sandisk ve 4. čtvrtletí fiskálního roku 2026 zvýšil výnosy mezikvartálně o 51 % na téměř 9 miliard USD a hrubá marže vzrostla na 84,6 %. Tahounem byl NAND a datová centra, jejichž výnosy vyskočily o 103 % na 3 miliardy USD.
Sandisk (SNDK -0.10%) has been a major beneficiary of the favorable environment for NAND memory. Just look at the numbers.
The company's revenue rose 51% sequentially to nearly $9 billion in the fourth quarter of fiscal 2026 (which ended July 3), while non-GAAP gross margin increased by 6.2 percentage points sequentially to 84.6%. Approximately two-thirds of that sequential revenue growth came from higher NAND memory prices, while only one-third came from selling more NAND.
Against this backdrop, what could Sandisk stock look like five years from now?
Image source: Getty Images
This NAND cycle could be different Artificial intelligence (AI) is already becoming a bigger part of Sandisk's business. The company's data center revenue rose 103% sequentially to $3 billion in the fourth quarter. Datacenter products made up 38% of Sandisk's NAND shipments by storage capacity in the fourth quarter, compared with 12% a year earlier.
Sandisk is also locking in future demand. Sandisk's long-term customer contracts are worth at least $93.9 billion based on their minimum pricing terms. They also cover more than half of the NAND volume expected in fiscal 2027 and about two-thirds of the expected fiscal 2028 volume.
Management expects annual revenue growth in the mid-to-high teens from fiscal 2028 through fiscal 2030. The company also expects non-GAAP gross margins of roughly 80% and adjusted free cash flow equal to about 50% of revenue during this period.
The margin target is especially important. If strong AI demand and long-term contracts help keep margins high, Sandisk could remain very profitable even if NAND prices fall.
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Where could Sandisk stock be in 2031? Analysts currently expect Sandisk to generate about $49.1 billion in revenue in fiscal 2027. From there, assume 17% annual revenue growth from fiscal 2028 through fiscal 2030, roughly in line with the midpoint of management's mid-to-high-teens growth target. As Sandisk's revenue base grows larger, assume a slightly slower year-over-year revenue growth of 15% for fiscal 2031 and 12% for fiscal 2032. Hence, fiscal 2032 revenues are estimated to be close to $101.2 billion.
Sandisk is currently trading at roughly 4.9 times Wall Street's fiscal 2027 revenue estimate. If the company can eventually convert around half of its revenue into adjusted free cash flow as management expects, a 4.9 times sales multiple would imply a price-to-free cash flow multiple of less than 10. Hence, the assumed valuation seems reasonable if Sandisk can maintain strong growth and margins in the next five years.
If the stock continues to trade at the same forward price-to-sales multiple in fiscal 2031, Sandisk's market value would be about $495.9 billion. Assuming the outstanding share count remains nearly 146.4 million, that would put the stock at roughly $3,387 per share. This implies an upside of around 108%, with a five-year annualized return of roughly 15.8% from its current share price (as of Aug 18, 2026). The estimate, however, assumes Sandisk's share count remains unchanged, even though the company still has $15.5 billion available for share repurchases.
Based on these assumptions, Sandisk stock could reach about $3,387 in five years. However, NAND prices and margins remain the key risks. If NAND prices fall sharply and profitability weakens, investors may be unwilling to pay the same valuation for the stock.
SanDisk vykázal ve fiskálním 4. čtvrtletí tržby 8,96 miliardy USD a non-GAAP EPS 39,25 USD na akcii, ale růst může ohrozit čínský konkurent YMTC s asi 14% podílem na globálních dodávkách NAND.
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SanDisk (NASDAQ:SNDK | SNDK Price Prediction) has become the loudest story in memory. The stock closed at $1,600.62 on Thursday, up 3,505% from a year earlier, when it was still trading around $44.40.
The rally rests on a real business shift. Fiscal fourth-quarter revenue rose to $8.96 billion, up 371.59% year over year, and non-GAAP EPS came in at $39.25 against a $33.28 consensus.
CEO David Goeckeler framed the setup this way on the August call: “Demand from our customers is growing faster than our supply. We therefore expect bids to remain on allocation beyond calendar year 2027.” A well-funded Chinese competitor could shorten that runway.
Why the Rally Still Has Fuel The core bull case is a locked-in order book. SanDisk signed New Business Models with eight data-center and edge customers, with a weighted-average duration of over four years.
Management put minimum expected revenue from those agreements at $93.9 billion assuming floor pricing, and said NBMs should account for roughly two-thirds of bits in fiscal 2028.
Datacenter grew to 38% of the bit mix as of the end of fiscal 2026, up from about 12% a year earlier. That mix shift is why non-GAAP gross margin reached 84.6%.
Analysts have followed the move. The Alpha Vantage consensus price target is $2,107.70, with 15 buy ratings, 4 holds, and 1 sell.
How YMTC Could End the Party The threat is capacity. YMTC captured roughly 14% of global NAND shipments in the second quarter and reportedly moved ahead of SanDisk and Micron, a shift that changes the supply math for the whole industry.
NAND is cyclical, and Goeckeler acknowledged as much: “And if you get it wrong, the implications are kind of tragic, right? We saw that in 23.” A determined Chinese entrant, potentially backed by an IPO, could add wafers faster than hyperscaler appetite can absorb them.
SanDisk’s filings list evolving trade policies, tariff regimes and trade wars at the top of its risk stack. Manufacturing is through a joint venture with Kioxia, which adds geopolitical exposure to an already tight supply picture.
Options desks are hedging accordingly. The full-chain put/call ratio is 0.67, but January 2027 sits at 5.87, a lopsided bet on downside protection right where a Chinese supply response would show up.
What to Watch From Here Retail conviction has wobbled. Reddit sentiment turned bearish on August 19, driven by a wallstreetbets thread asking whether memory volatility signaled a bubble (we wrote a free handbook on riding a mania while planning the exit, here).
The stock is up only 0.71% over the past month, even as the year-to-date gain is 574.29%. That flattening is the market pricing in the tension between contracted demand and future Chinese supply.
The bullish cycle is likely to hold through calendar 2027 because NBM commitments account for more than half of next year’s bits, and hyperscalers cannot swap suppliers on short notice. The setup gets more fragile in 2028, when YMTC capacity additions and any macro softness could meet a market that has already priced perfection.
Investors keeping an eye on the stock should track two signals: YMTC’s IPO filings and NAND spot pricing. Both will tell you when the supercycle narrative starts to crack, well before the earnings do.
Contact [email protected] for any questions or corrections.
Ondas ve 2. čtvrtletí zvýšil tržby více než 13násobně na 83,8 mil. USD a zvedl výhled tržeb pro rok 2026 na 525–550 mil. USD. Tržby Red Cat vzrostly o 527 % na 20,2 mil. USD, ale firma musí ve druhé polovině roku prudce zrychlit.
Key Takeaways Ondas' Q2 revenues jumped more than 13-fold to $83.8M, while Red Cat's surged 527% to $20.2M. Ondas ended June with a $613M backlog and raised 2026 revenue guidance to $525M-$550M.Red Cat targets $150M-$180M in 2026 revenues but needs a sharp second-half ramp to reach it. Drone technology is having a moment, with the global drone industry rapidly evolving into one of the most strategically important sectors in defense, surveillance, logistics and autonomous warfare.
According to a report from Mordor Intelligence, the global drone tech market is expected to witness a CAGR of 9.3% from 2026 to 2031. The convergence of drones with artificial intelligence (AI), cloud computing and edge processing is further driving adoption across verticals.
Ondas Inc. (ONDS - Free Report) and Red Cat Holdings (RCAT - Free Report) both operate in the defense and unmanned systems domain, but from very different positions in terms of scale and maturity.
For investors seeking exposure to this theme, the key question remains: which stock offers the better opportunity right now?
Let us do a deep dive into the companies’ competitive dynamics to understand which is better positioned in the industry.
The Case for ONDSOndas recently reported second-quarter 2026 results wherein revenues surged more than 13 times year over year to $83.8 million and beat the consensus estimate by 25.1%. The top-line growth reflected acquisitions and solid execution across Ondas' core business. Pro forma organic revenues increased 85% year over year. Companies acquired since June 30, 2025, contributed $70 million of the year-over-year revenue increase, including $21.8 million from Sentrycs and $13.2 million from Omnisys. Airobotics added $6.8 million, driven by higher Optimus System and Iron Drone Raider product and service sales.
On the earnings call, management noted that Ondas captured $175 million in new orders during the second quarter and $105 million through the quarter to date. Its two-year strategic program pipeline exceeded $11 billion, spanning aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems.
Visibility is improving alongside revenues. Reported backlog reached approximately $613 million as of June 30, with pro forma backlog of $757 million including DZYNE and Cyberhawk acquisitions.Management consequently raised its full-year 2026 revenue target to $525-$550 million from the previous target of at least $525 million, representing more than 10 times the reported figure of 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis.
Management is not just focused on selling drones but trying to connect a portfolio of technologies into integrated systems spanning detection, intelligence, command and control, electronic warfare and kinetic defeat. SkyWeaver, developed with Palantir, is intended to become an Edge AI layer connecting intelligence across the portfolio. Ondas recently completed ground and aerial testing of the platform, while it is also combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications.
To fund its expansion efforts, Ondas has substantial resources. Cash, cash equivalents, restricted cash and short-term investments totaled about $1.4 billion as of June 30. During the third quarter, Ondas used approximately $325 million of cash to complete the DZYNE and Cyberhawk acquisitions.
However, Ondas has its share of challenges. Extensive M&A amplifies risks, as many acquisitions in such a short period can create integration overload and execution risks, since achieving targets depends on timely integration and conversion of backlog into revenues.
Second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million. While more than half of expenses consisted of noncash or acquisition-related items, adjusted cash operating expenses still totaled approximately $93 million. The company incurred approximately $4.4 million of acquisition-related transaction costs.
Adjusted EBITDA remained a loss of approximately $51 million. Management expects the second quarter to represent the peak loss, but actual profitability still depends on anticipated second-half revenue ramp materializing. Management expects some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
The Case for RCATRed Cat has begun to demonstrate commercial traction, with second-quarter 2026 revenues surging 527% year over year to $20.2 million. First-half 2026 revenues reached roughly $36 million compared with just $4.8 million a year earlier. First-half gross profit improved to $5.2 million from a gross loss in the comparable prior-year period.
Red Cat is focusing on becoming an all-domain autonomy platform. It recently acquired Quaze Technologies, which develops wireless power transfer technology for unmanned and autonomous systems and drones, while APM Swarm Robotics brings multi-agent autonomy. The company is also broadening reach into the maritime sector through Blue Ops, where it is developing uncrewed surface vessels (“USV”).
RCAT is witnessing solid demand from defense and government clients and expanding program wins. The company is also sharpening its ability to rapidly scale production to meet mission-critical requirements. Its manufacturing footprint has increased fivefold since 2024 to roughly 260,000 square feet, with another 12,000 square feet added for APM operations.
Management highlighted that it entered the second half with nine active products and roughly 270,000 square feet of production capacity and improved unit economics. This creates a substantially larger operating base from which second-half growth can build. Management reaffirmed its $150-$180 million full-year revenue target. The company also indicated that $50-$80 million of sellable drones could ship immediately if corresponding orders were received, primarily Black Widow and Hellcat units.
Management expects gross margin to reach approximately 30% toward the end of 2026, supported by anticipated improvement from economies of scale as production ramps, as well as a more favorable product mix, particularly higher-margin USV revenues. Blue Ops moved its Variant 7 USV into mass production after completing production validation testing during the second quarter. The platform targets U.S. and allied defense missions spanning ISR, force protection, harbor and coastal security and contested logistics. RCAT also received its first Blue Ops revenues during the quarter. Management expects Blue Ops to become profitable by year-end if it meets the fourth-quarter internal targets, with fewer than 10 boats needed to reach that threshold.
At the quarter-end, RCAT had $325.6 million of cash, nearly double the $167.9 million at year-end 2025. This provides ample financial flexibility to fund manufacturing expansion, acquisitions, R&D and working-capital requirements.
However, execution risk is very high as the company needs to ramp significantly in the second half, as it has only generated roughly about $36 million in revenues in the first half. Even modest delays in contracts, procurement decisions or deliveries could cause revenues to fall materially short of the target.
Increasing expenses remain a concern. Operating expenses were approximately $41.9 million, while R&D alone reached $14.2 million in the second quarter. As a result, RCAT reported a net loss of $35.3 million from $13.3 million reported in the year-ago quarter. If the second-half revenue ramp is delayed, the high fixed investment in personnel, R&D, manufacturing and acquisitions could continue weighing on profitability. RCAT also faces integration risks from acquisitions and execution risks from rapid scaling. Any such problems could undermine the expected second-half revenue ramp or the targeted margin expansion.
Price Performance & Valuation for ONDS & RCATYear to date, ONDS is down 14.1% while RCAT is up 20.2%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price-to-sales ratio, ONDS trades at 5.50X, lower than RCAT’s 6.14X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for ONDS & RCAT?For ONDS, earnings estimates for the current year have decreased 28.6% over the past 60 days.
Image Source: Zacks Investment Research
For RCAT, earnings estimates for the current year have been lowered 14.7% over the same time frame.
Image Source: Zacks Investment Research
ONDS or RCAT: Which Is a Better Pick?While ONDS carries a Zacks Rank #3 (Hold) at present, RCAT has a Zacks Rank #4 (Sell).
Waste Connections ve 2. čtvrtletí překonala odhady: upravený zisk na akcii byl 1,50 USD a tržby 2,56 miliardy USD. Firma zároveň zvýšila výhled tržeb na 10,02–10,05 miliardy USD.
It has been about a month since the last earnings report for Waste Connections (WCN - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Waste Connections due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Waste Connections, Inc. before we dive into how investors and analysts have reacted as of late.
Waste Connections Beats on Q2 EarningsWaste Connections reported impressive second-quarter 2026 results, wherein earnings and revenues outpaced the Zacks Consensus Estimates.
WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter.
Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year. Strong pricing and operational execution supported the results, although solid waste unit volumes declined 1.9%.
WCN's Solid Waste TrendsSolid waste internal growth was 3.6% in the quarter. Core price increased 5.6%, while yield, which reflects the average price per unit of service after customer and business-mix changes, improved 4.6%. Fuel and material surcharges contributed 1.1%.
Unit volumes fell 1.9%, reflecting sluggish construction activity and customer churn related partly to fuel surcharges. Roll-off pulls declined 2%, while rates per pull rose 5%. Landfill tons were nearly flat, as a 1% increase in construction and demolition volumes offset weaker special waste activity.
Waste Connections' Segmental RevenuesSolid Waste Collection revenues increased 5.8% year over year to $1.78 billion. Solid Waste Disposal and Transfer revenues advanced 5.1% to $464.3 million. These businesses benefited from pricing, while softer volumes limited organic growth.
Solid Waste Recycling revenues declined 8.1% to $61.4 million due to lower commodity values. E&P Waste Treatment, Recovery and Disposal revenues surged 18.3% to $201 million. Intermodal and Other revenues rose 18.3% to $51.3 million.
WCN's Margin & Cost PictureAdjusted EBITDA increased 6.8% year over year to $840.1 million. The adjusted EBITDA margin expanded 10 basis points to 32.8%. Underlying margin expansion was 70 basis points, driven partly by improved employee retention, safety performance and lower risk-management costs.
Fuel costs reduced the margin by approximately 40 basis points, while lower commodity values created a 20-basis-point drag. Management expects full-year core pricing of at least 5.5% and anticipates recovering elevated fuel expenses over time through surcharges.
Operating expenses increased 6.2% to $1.48 billion. Selling, general and administrative expenses rose 7.2% to $260.5 million. Reported operating income declined 4.8% to $437.6 million, reflecting $58.5 million in impairments and other operating items.
Waste Connections' Cash Flow & Balance SheetNet cash provided by operating activities totaled $733.3 million in the quarter compared with $638.2 million a year earlier. The adjusted free cash flow increased 24.7% to $457.5 million, representing 17.9% of revenues.
For the first six months of 2026, capital expenditure was $598.9 million. WCN also spent $614.5 million in share repurchases and $177.1 million in dividends. The company ended June with $98.2 million in cash and equivalents, and $9.28 billion in long-term debt.
Waste Connections' Growth InvestmentsThe company completed acquisitions representing approximately $100 million in annualized revenues during the first half. Another $30 million of exclusive-market franchise transactions was expected to close shortly, while management continued to anticipate an above-average acquisition year.
WCN’s artificial intelligence pricing tool has generated roughly $20 million in annualized EBITDA benefits. Management is also testing AI-based routing technology and developing customer-service tools. Across seven programs, Waste Connections expects its $100-million AI investment to ultimately produce $100 million in EBITDA improvement as implementation progresses through 2028 and 2029.
WCN’s 2026 OutlookWaste Connections raised its 2026 revenue outlook to $10.02-$10.05 billion. Adjusted EBITDA is projected between $3.33 billion and $3.34 billion, implying a margin of 33.2% to 33.3%.
The company maintained its adjusted free cash flow forecast of $1.4 billion to $1.45 billion, and capital expenditure projection of $1.25 billion. The outlook excludes acquisitions that may close during the remainder of the year.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
VGM ScoresAt this time, Waste Connections has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 indicates a downward shift. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Tesla v pátek vzrostla asi o 3 % poté, co investoři zvažovali plány uvést Semi v Evropě a detaily má přinést zářijový veletrh IAA v Hannoveru. Akcie jsou letos stále asi o 23 % níže.
shares gained about 3%on Friday as investors assessed the company's plans to bring its electric Semi truck to Europe, following a company post outlining its appearance at September's IAA Transportation show in Hannover.
Tesla is expected to provide details on European availability and vehicle specifications at the industry event. The move gives the company a potential entry point into a commercial-vehicle market where electric truck adoption remains limited.
The European push comes shortly after Swedish logistics company Einride placed an order for 500 Semi trucks. Tesla began producing the vehicle at its Nevada plant in 2026, with the facility designed to handle as many as 50,000 trucks annually.
Despite the latest gain, Tesla remains under pressure in 2026, with shares down about 23% year to date. Investors continue to weigh the company's electric-vehicle business against its developing autonomous-driving and robotics initiatives.
European Semi expansion could provide a new growth avenue, but adoption and production scale remain key factors for investors.
It has been about a month since the last earnings report for Tesla (TSLA - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Tesla, Inc. before we dive into how investors and analysts have reacted as of late.
Tesla Q1 Earnings MissTesla reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%.
Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Record second-quarter vehicle deliveries and growth across the energy and services businesses supported the top line. Deliveries increased 25% to 480,126 vehicles.
Revenue Growth Broadens Across BusinessesAutomotive revenues rose 23% year over year to $20.52 billion. Automotive sales increased to $20.01 billion from $15.79 billion, while leasing revenues declined to $364 million from $435 million. Regulatory credit revenues fell sharply to $146 million from $439 million.
Energy Generation and Storage revenues grew 13% to $3.14 billion. Services and Other revenues jumped 50% to $4.58 billion, reflecting higher activity across used vehicles, Supercharging, service centers and insurance. Higher Full Self-Driving subscriptions also aided automotive ancillary sales.
Deliveries Set RecordTesla produced 451,758 vehicles, up 10% from the prior-year quarter. Model 3/Y production increased 12% to 442,936 units, while production of other models declined 34% to 8,822 units.
Model 3/Y deliveries rose 25% to 467,762 vehicles, while other-model deliveries increased 19% to 12,364 units. Global vehicle inventory improved to 15 days of supply from 24 days a year earlier. The company exited the quarter with its largest order backlog since 2023.
Software and Energy Metrics Gain MomentumActive paid FSD subscriptions increased 56% year over year to 1.48 million. Tesla achieved record FSD subscription additions and more than 55% of its North American deliveries included an FSD subscription at the time of purchase.
Energy storage deployments climbed 41% to 13.5 GWh, marking Tesla’s second-highest quarterly deployment volume. The company also expanded its charging network to 8,704 Supercharger stations and 82,357 connectors, representing increases of 18% and 17%, respectively.
Margins Contract as Expenses ClimbGross profit rose 23% to $4.75 billion, but the GAAP gross margin contracted 41 basis points to 16.8%. Operating expenses surged 47% to $4.35 billion, driven by research and development spending related to AI, Cybercab, Optimus and Tesla Semi, as well as higher stock-based compensation and selling and administrative costs.
Operating income declined 57% to $398 million, reducing the operating margin to 1.4% from 4.1%. Automotive gross margin excluding regulatory credits was 16.3% compared with 15% a year earlier and 19.2% in the preceding quarter.
Energy gross margin fell to 20.4%, partly due to a roughly $240 million warranty charge tied to vendor battery-cell issues and the absence of prior-quarter tariff benefits. Services and Other gross margin improved sequentially to a record 14.1%, supported by higher volumes and better fleet cost management.
Cash Flow Reflects Heavy InvestmentNet cash provided by operating activities increased 85% to $4.70 billion. However, capital expenditures more than doubled to $5.79 billion from $2.39 billion, resulting in negative free cash flow of $1.09 billion.
As of June 30, 2026, cash, cash equivalents and short-term investments totaled $43.52 billion, up 18% year over year but down $1.22 billion sequentially. Long-term debt and finance leases, excluding the current portion, were $7.92 billion.
Outlook Prioritizes AI and New ProductsTesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Planned investments include Robotaxi fleet expansion, Optimus production capacity, semiconductor manufacturing, solar production and AI computing infrastructure.
Cybercab production has begun at Gigafactory Texas, while Tesla Semi and Megapack 3 remain scheduled to enter production in 2026. The company is installing first-generation Optimus production lines and expanding Robotaxi operations.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -24.42% due to these changes.
VGM ScoresAt this time, Tesla has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerTesla belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM - Free Report) , has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
General Motors reported revenues of $48.03 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $3.57 for the same period compares with $2.53 a year ago.
General Motors is expected to post earnings of $3.37 per share for the current quarter, representing a year-over-year change of +20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Motors. Also, the stock has a VGM Score of A.
Uber dostal od nizozemského úřadu pokutu 825 milionů eur za to, že mezi lety 2020 až 2022 automaticky deaktivoval účty řidičů bez dostatečného informování. Firma se odvolá.
was fined €825 million ($966 million) by the Dutch Data Protection Authority for deactivating driver accounts through automated systems without adequately informing them, according to an August 17 decision reviewed by Reuters. The conduct covers 2020 to 2022. Uber shares were up 0.88% intraday.
GDPR bars decisions made solely by algorithm where they have a significant impact on people's lives, and requires meaningful human review and a route to challenge them. The regulator found Uber breached that right and also the right to be informed, treating both as serious enough to warrant the size of the penalty.
The suspensions involved drivers suspected of fraud, including systems concluding they had taken unnecessary detours to inflate fares or accepted trips they didn't intend to complete. Drivers with low customer ratings were sometimes permanently suspended. Uber says it did not permanently deactivate accounts without human review, and that it no longer makes permanent deactivation decisions solely through automated systems.
Uber called the fine "disproportionate" and said it will appeal. The penalty would rank second among all GDPR fines, behind the €1.2 billion Ireland imposed on Meta (META) in 2023 for unlawfully transferring European Facebook users' data to the United States, which Meta is appealing.
AMD za 2. čtvrtletí zvýšila tržby o 50 % na 11,5 miliardy USD a tržby datových center vyskočily o 107 % na 6,7 miliardy USD. Firma zároveň očekává za 3. čtvrtletí tržby kolem 13 miliard USD.
Advanced Micro Devices (AMD +0.13%) is having one of those years where two opposite descriptions of the stock are both accurate. Shares trade near $465 as of this writing. That is more than triple the 52-week low of $149.22, set last fall. It is also about 20% below the 52-week high of $584.73, reached on June 30.
So which end of the range tells the truth?
A buyer today is paying about three times the stock's autumn low, for a company the market valued a quarter higher less than two months ago. Whether that price is a bargain or a warning comes down to what changed between those two marks -- and the honest answer is that the business changed far less than the valuation multiple did.
Image source: AMD.
The business has only gotten betterConsider AMD's impressive second-quarter update.
Revenue in the period rose 50% year over year to $11.5 billion. And data center revenue climbed 107% to $6.7 billion (58% of company revenue) on demand for the company's Instinct AI accelerators and EPYC server processors. Further, management guided for about $13 billion of third-quarter revenue, roughly 41% year-over-year growth.
That report landed on Aug. 4, with the stock already well below its June high. Shares fell further after it, and this week's chip sell-off, which began as long-term Treasury yields jumped, took another bite. The slide since June, in other words, hasn't tracked the company's results. The results, and then the outlook, kept improving straight through it.
The low end of the range is easier to explain.
Last fall, the stock could be had for less than a third of today's price, because the market had real doubts about how much artificial intelligence (AI) business AMD would ever win.
Then came a string of customer commitments -- including an agreement to supply OpenAI with 6 gigawatts of its graphics processing units (GPUs), sweetened with a warrant covering up to 160 million AMD shares -- and quarter after quarter of accelerating data center sales. The tripling off the low is the market repricing AMD as a genuine second source for AI computing.
Compression, not deteriorationNotably, the analyst consensus for the coming year runs near $11 per share on an adjusted basis -- nearly double the adjusted earnings AMD reported over the past four quarters. Measured against that same forward figure, the stock cost about 53 times these forward earnings at its June 30 high. Near $465, it costs about 42 times.
In other words, the price of a dollar of AMD's expected earnings fell by about a fifth, while nothing in the company's growth outlook worsened. What worsened is the market's willingness to pay -- first in the pullback around August earnings, and again this week, as the 30-year Treasury yield touched its highest level since 2007 and chip stocks sold off.
Ultimately, today's price carries less froth than June's. But a price at 42 times those expected earnings still assumes years of rapid growth. In other words, it already counts the near-doubling analysts project -- and plenty beyond it.
Today's Change
(
0.13
%) $
0.59
Current Price
$
470.04
Time to buy?The stock is cheaper, but not necessarily attractive.
Sure, the range's low end is gone for good reasons: AMD is a different company than it was at $149, with a data center business running at a $27 billion annual pace and growing at triple digits. Anyone waiting for those prices again is waiting for the AI case to collapse.
But the high end deserves skepticism, too. June's $584.73 was a market paying 53 times forward earnings, with the sector's momentum at fever pitch.
So, is AMD stock a buy 20% below its high?
To me, the discount is the market repricing risk, not a mis-priced and undervalued stock to pounce on.
The business results argue for the company, and they keep getting stronger. But at 42 times expected earnings, the price still asks for years of things going right, in a sector that just spent a week repricing against a 30-year Treasury yield near its highest level since 2007. While a 20% pullback makes the stock a smaller leap of faith than it was in June. It is a leap of faith all the same.
Hlasování o nabídce nové smlouvy pro největší odborovou organizaci zaměstnanců s bílými límečky v Boeingu končí dnes, výsledky se čekají v polovině odpoledne v Seattlu. Dohoda má odvrátit stávku tisíců inženýrů a techniků.
A Boeing logo is seen before the opening of the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 13, 2025. REUTERS/Benoit Tessier/File Photo Purchase Licensing Rights, opens new tab
CompaniesSEATTLE, Aug 21 (Reuters) - Voting on Boeing's (BA.N), opens new tab contract offer to its largest white-collar union ends on Friday, with results expected by mid-afternoon in Seattle.
Hoping to avoid a strike by thousands of engineers and technical workers, Boeing offered terms that were better than expected, several members of the Society of Professional Engineering Employees in Aerospace (SPEEA) told Reuters.
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However, neither of the bargaining unit councils for SPEEA's engineers and technicians units backed the offer. The technicians unit council recommended that members reject the offer, while the engineers unit council did not meet the 60% threshold needed to give members a recommendation to accept or reject.
The tentative agreement reached with Boeing in late July was endorsed by SPEEA's negotiating team. The engineers and technicians units negotiate collectively with Boeing, but they vote separately. The current contract expires in October.
Speaking to Wall Street analysts in July, Boeing CEO Kelly Ortberg said the company "began these discussions early, because we wanted to work towards an agreement that supports our employees and their families, creates greater clarity for our business and helps us stay focused on the progress we're making."
A work stoppage by SPEEA members would further delay Boeing's certification campaigns for its 737 Max 10 and 777-9, both of which are several years behind schedule.
The proposed four-year contract includes wage increases tied to inflation (capped at 3%) and an individual's performance, as well as other metrics determined by the company, but not specified in the contract.
Several SPEEA members who have already voted to reject the offer told Reuters that capping inflation-based raises at 3% nearly guarantees that their salaries will fall behind inflation.
In 2024, Boeing commercial airplane production in the Seattle area ground to a halt when the roughly 33,000 members of the International Association of Machinists and Aerospace Workers went on strike for seven weeks.
Reporting by Dan Catchpole in Seattle; editing by Philippa Fletcher
Our Standards: The Thomson Reuters Trust Principles., opens new tab
NVIDIA má 26. srpna po uzavření trhu oznámit výsledky za 2. fiskální čtvrtletí, přičemž tržby se očekávají na 91,8 miliardy USD a EPS na 2,09 USD. Očekává se růst tržeb o 96,4 % a zisku na akcii o 99,1 % meziročně.
Key Takeaways Consensus estimates for NVIDIA's Q2 revenue and EPS suggest y/y increases of 96.4% and 99.1%, respectively.NVIDIA's Data Center results may benefit from hyperscale demand, inference adoption and generative AI.NVIDIA's Edge Computing momentum is supported by demand across gaming, robotics and automotive markets. NVIDIA Corporation (NVDA - Free Report) is scheduled to report second-quarter fiscal 2027 results on Aug. 26, after market close.
The company expects revenues of $91 billion (+/-2%) for the quarter. The Zacks Consensus Estimate is pegged at $91.8 billion, which indicates a whopping 96.4% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings has been revised upward by 2 cents over the past 60 days to $2.09. This suggests growth of 99.1% from the year-ago quarter’s earnings of $1.05 per share.
Image Source: Zacks Investment Research
Earnings of the graphics chip maker surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average surprise of 5.52%.
Q2 Earnings Whispers for NVIDIA TechnologyOur proven model does not conclusively predict an earnings beat for NVDA 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 earnings beat. However, that is not the case here.
Earnings ESP: NVIDIA has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVIDIA currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence NVIDIA’s Q2 ResultsNVIDIA’s fiscal second-quarter top line is likely to have benefited from the continued strength in its Data Center business. The increasing adoption of cloud-based solutions amid the growing hybrid working trend is anticipated to have boosted the demand for its chips across the Data Center business. An increase in hyperscale demand and growing adoption in the inference market are likely to have acted as tailwinds in the to-be-reported quarter.
The Data Center business should have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Blackwell architectures. The strong demand for its chips from large cloud service and consumer Internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter.
NVIDIA is also strengthening its position beyond GPUs through networking products such as InfiniBand, Spectrum-X Ethernet and NVLink. This is likely to have enabled the company to capture a larger portion of AI infrastructure spending during the fiscal second quarter.
NVIDIA’s fiscal second-quarter performance is also likely to have benefited from the continued momentum in its Edge Computing segment, fueled by strong demand across the gaming, robotics and automotive end markets.
NVIDIA’s Stock Price Performance & ValuationShares of NVIDIA have been highly volatile over the past year. The stock has gained 21.9% over the past year, underperforming the Zacks Semiconductor – General industry’s rise of 27.3%. The stock has also underperformed major semiconductor shares, including Intel Corporation (INTC - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) . Shares of Intel, Advanced Micro Devices and Broadcom have grown 271.5%, 179.3% and 24.2%, respectively.
NVIDIA 1-Year Price Return Performance
Image Source: Zacks Investment Research
Now, let us look at the value NVIDIA offers investors at the current levels. NVIDIA is trading at a discount with a forward 12-month price-to-earnings (P/E) of 19.69X compared with the industry’s 22.14X, reflecting an attractive valuation.
Forward 12-Month P/E Multiple
Image Source: Zacks Investment Research
Compared with other chip giants, NVDA trades at a lower multiple against Intel, Advanced Micro Devices and Broadcom. Currently, Intel, Advanced Micro Devices and Broadcom trade at a forward P/E of 51.77X, 39.08X and 20.60X, respectively.
Investment Consideration for NVIDIAThe company remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's GPUs remain the preferred choice for training and running advanced AI models. The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency.
Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.
As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle.
Final Thoughts: Buy NVDA Stock NowAs a leading player in the semiconductor industry, NVIDIA has benefited from its dominance in GPUs and strategic expansion into AI and data centers. The company's strong product portfolio, leadership in AI and relentless innovation present a compelling investment opportunity. A lower valuation multiple than the industry also suggests that NVIDIA is a good investment option right now.
Microsoft schválil Horizon 1, první ze čtyř datových center IREN v rámci pětileté smlouvy za 9,7 miliardy USD. IREN tak může začít fakturovat a proměňuje AI projekty v provozní infrastrukturu a tržby.
Data-center operator IREN Ltd. (IREN, Financials) has built its business on Bitcoin mining and is beginning to demonstrate that AI drive is more than a promise.
Microsoft Corp. (MSFT, Financials) has officially approved Horizon 1, the first of four data centers IREN is developing under a five-year, $9.7 billion deal.
That's important because IREN may now begin to send Microsoft a bill every month. One of the major uncertainties around the company until now has been whether it can really execute an AI buildout that dwarfs its existing business. The first real proof point is Horizon 1.
Also operating the site were Nvidia Corp. (NVDA, Financials) computers with GB300, which gave the site Exemplar Cloud status, offering IREN another vote of confidence in performance and reliability.
The corporation has already put together a $3.65 billion loan package connected to the Microsoft contract that should pay much of the GPU spending. It also has a separate five-year $3.4 billion cloud deal with Nvidia.
There's still a lot to prove. While IREN's AI business remains small in comparison to Bitcoin mining, the growth comes with substantial cash needs.
But that story is changing. Investors are no longer merely waiting for IREN to announce huge AI acquisitions. They are beginning to see those deals turn into operational infrastructure and now revenue.
AMD ztratila SpaceX ve prospěch NVIDIA, která získala přístup k AI infrastruktuře na platformě Vera Rubin. Přesto AMD ve 2. čtvrtletí zvýšila výnosy o 50,1 % na 11,54 miliardy USD a výnosy datacentra o 107 % na 6,72 miliardy USD.
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Elon Musk’s decision to build SpaceX’s (NASDAQ:SPCX | SPCX Price Prediction) AI infrastructure around NVIDIA’s (NASDAQ:NVDA) Vera Rubin platform, reportedly claiming 20% of NVIDIA’s next-platform capacity, is the kind of headline that makes AMD bulls nervous. It denies Advanced Micro Devices (NASDAQ:AMD) a flagship logo at exactly the moment Lisa Su is trying to convince Wall Street her Instinct roadmap can rival Jensen Huang’s.
The stock has felt it. Shares closed at $469.46 on Thursday, down 13.77% over the past month even after a blowout quarter.
The question is whether SpaceX is a symptom of something structural or a single lost deal in a market AMD believes will approach $2 trillion by 2030. The answer sits closer to the second interpretation than the first.
What the SpaceX Loss Actually Signals Musk’s rationale centers on allocation guarantees. SpaceX wants guaranteed allocation on a platform NVIDIA controls, and NVIDIA chooses who gets capacity.
That gives NVIDIA a lever AMD cannot yet match: the ability to convert scarcity into exclusivity with the largest AI spenders on earth.
SpaceX also fits a very specific customer profile. It is a single-tenant buyer aligned philosophically with Musk’s xAI, and Grok training runs benefit from staying within a single hardware stack.
Losing that customer stings, but reading it as evidence that AMD is falling apart overlooks the fact that AMD actually won this cycle.
Counter-Evidence Is Loud AMD reported Q2 revenue of $11.54 billion, up 50.1% year over year, with Data Center revenue of $6.72 billion, up 107%.
That segment now generates $2.1 billion in operating income, a swing from a loss a year ago tied to China export charges.
The customer list backing the forward story runs deep. AMD has committed deployments with OpenAI, Meta (NASDAQ:META), and Anthropic, whom Lisa Su called “strategic anchor customers,” plus a 2-gigawatt Anthropic deal on MI450 in Helios and Microsoft (NASDAQ:MSFT) Azure at scale.
Su told analysts, “We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.”
Verdict: Contested, Not Collapsing NVIDIA still commands preferential access to hyperscale capital and can still lock in customers like SpaceX through allocation politics rather than benchmarks. That advantage is real, and AMD’s forward P/E of 65 assumes it narrows.
But AMD’s challenge remains intact. Data Center is expected to more than double year over year in 2027, and management raised its long-term targets rather than trimming them. (We reverse-engineered what the biggest chip winners looked like early on and put the pattern in a free playbook, here.)
Reddit sentiment scored a neutral 48 this week, with the most upvoted thread titled “Looking for different perspectives, sell or reduce my position in AMD.” That caution is fair given the recent drawdown.
SpaceX is a loss worth acknowledging, although it is one customer inside a market where AMD has already secured multi-gigawatt commitments from the companies actually building frontier models. The AI challenge is being contested, which is a different thing entirely.
Contact [email protected] for any questions or corrections.
AMD oznámila rekordní tržby ve výši 11,54 miliardy USD a tržby v datových centrech vzrostly meziročně o 107 % na 6,72 miliardy USD. NVIDIA mezitím vykázala tržby v datových centrech ve výši 75 miliard USD, což je meziročně o 92 % více.
AMD (NASDAQ: AMD | AMD Price Prediction) and NVIDIA (NASDAQ: NVDA) both just delivered post-earnings reports that reframe the AI hardware race. AMD posted record revenue of $11.54 billion with Data Center more than doubling. NVIDIA answered with an $82 billion quarter and Blackwell shipping into every major hyperscaler.
The question is whether AMD is finally catching up, or whether Jensen Huang just widened the moat again.
Helios Lands. Blackwell Scales. Two Different Zip Codes. AMD’s quarter was carried by Data Center revenue of $6.72 billion, up 107% year over year and now 58% of total revenue. EPYC server chips grew greater than 70% year over year, and Instinct more than doubled.
Lisa Su called out Helios, the new rack combining EPYC Venice, MI450 GPUs and Pensando networking, saying customer pull is “very strong and tracking ahead of our initial forecasts.” Anthropic committed to up to two gigawatts of MI450 series GPUs in Helios, with the first gigawatt starting in 2027.
NVIDIA operates at a different altitude. Data center revenue hit $75 billion, up 92%, with networking alone nearly tripling year over year.
Huang told investors the company sees $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027, and that “we are growing share in inference very, very quickly.” Buybacks got an $80 billion refresh. The dividend jumped to 25 cents per share.
Business Driver AMD NVIDIA Data Center Revenue $6.72B (+107%) $75B (+92%) Non-GAAP Gross Margin 56% 75% Next-Quarter Guide ~$13B (+41%) $91B (+/-2%) Challenger Rack vs. Full-Stack Monopoly AMD is betting that a credible second source of gigawatt-scale AI compute is worth many billions to hyperscalers who dislike sole-vendor risk. Rackham software now runs more than 3 million models out of the box, with open-source contributions up more than tenfold over the past year. That is real progress against CUDA, though not parity.
NVIDIA’s pitch is vertical integration. Vera Rubin production begins in Q3, and Huang says it can deliver up to 35x higher inference throughput than Blackwell. Standalone Vera CPUs open a claimed $200 billion TAM on top of GPUs. The competitive gap extends well beyond silicon into NVLink, Spectrum-X, InfiniBand and CUDA glued together.
All that gigawatt-scale compute still has to be powered, cooled, and networked by somebody, which is the whole thesis behind our free report on seven AI infrastructure suppliers that aren’t chipmakers.
What I Want to See in Q3 and Q4 I will be watching Helios yields and how quickly Anthropic’s first gigawatt actually turns into revenue. AMD guided Q3 to roughly $13 billion, and management expects Data Center to more than double year-over-year in 2027.
You should also watch NVIDIA’s ability to defend gross margin at 75% while China compute stays excluded from guidance.
How the Setup Favors Each Name On the fundamentals, NVIDIA still screens as the higher-quality name. A P/E of 34 paired with 65.6% operating margins is rare at this scale, and Rubin looks like another generational lead.
AMD screens as the higher-beta way to play the theme. Shares are already up 180.05% over the past year, and the stock trades at a forward P/E of 68, which prices in a lot of Helios success. If MI450 ramps cleanly through 2027, AMD has room to run.
If yields slip or China policy tightens further, the platform that “runs every frontier AI model” looks like the more defensive exposure. Reddit’s neutral, hesitant tone on AMD, with sentiment scores of 45, 47, 48, 48, and 50, tells me I am not alone in that caution.
Contact [email protected] for any questions or corrections.
AT&T za poslední měsíc přidala asi 9,5 % a překonala index S&P 500. Ve 2. čtvrtletí zvýšila upravený zisk na akcii na 65 centů a potvrdila výhled pro rok 2026.
It has been about a month since the last earnings report for AT&T (T - Free Report) . Shares have added about 9.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is AT&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
AT&T Surpasses Q2 Earnings Estimates on Fiber & Wireless Growth
AT&T reported relatively modest second-quarter 2026 results with adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues increased 2.3% to $31.56 billion but missed the consensus mark of $32.04 billion by 1.5%.
Results benefited from higher fiber and wireless revenues and improving profitability. AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
T Gains from Advanced Connectivity Momentum
Advanced Connectivity revenues rose 4.1% year over year to $28.62 billion. Service revenues increased 5.1% to $23.48 billion, supported by growth across Wireless, Advanced Home Internet and Business Fiber offerings.
Operating income for the segment surged 20.3% to $7.35 billion, while EBITDA advanced 8% to $12.03 billion. The EBITDA margin expanded 150 basis points to 42%, reflecting stronger service revenue and lower depreciation expense.
AT&T Posts Strong Internet Customer Growth
Advanced home Internet revenues jumped 27.3% year over year to $2.93 billion. Business Fiber and Advanced Connectivity revenues increased 10% to $1.95 billion, partly offset by a 16.6% decline in Business Transitional and Other revenues.
AT&T recorded 367,000 fiber net additions and 279,000 fixed wireless net additions. Fiber connections rose 22.8% year over year to 12.87 million, while fixed wireless connections climbed 77.4% to 2.61 million. The company reached 38.6 million consumer and business locations with fiber and remained on track to exceed 40 million by year-end.
T Benefits from Wireless Subscriber Expansion
Wireless service revenues increased 3.3% year over year to $17.41 billion. Growth was driven by higher retail wireless subscribers, expansion in converged accounts and pricing actions, partly offset by promotional discounts associated with subscriber additions.
Postpaid phone net additions totaled 432,000, up from 401,000 in the year-ago quarter. Postpaid phone churn improved one basis point to 0.86%. The Advanced Home Internet convergence rate reached 42.5%, indicating that a growing share of Internet customers also subscribed to AT&T wireless services.
AT&T Navigates Legacy Declines and Mexico Costs
Legacy segment revenues fell 25.9% year over year to $1.63 billion as demand for copper-based services continued to decline. Operating income plunged 45.5% to $523 million, while the operating margin contracted 1,160 basis points to 32%.
Latin America revenues rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates and postpaid subscriber growth. However, operating expenses increased 17.7%, causing operating income to decline 17.4% to $38 million. Segment EBITDA increased 12.9% to $227 million.
T Expands Profitability and Cash Generation
Consolidated operating income increased 8.3% year over year to $7.04 billion. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%.
Cash from operating activities was $10.80 billion, up from $9.76 billion. Free cash flow increased 6.3% to $4.67 billion despite capital expenditures rising 16.4% to $5.70 billion. Capital investment, including vendor financing payments, totaled $6.13 billion.
AT&T Reaffirms Outlook and Accelerates Buybacks
AT&T reiterated its 2026 adjusted earnings guidance of $2.25-$2.35 per share. The company continues to expect adjusted EBITDA growth of 3-4%, free cash flow of more than $18 billion and capital investment of $23-$24 billion.
The company returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through share repurchases. AT&T now expects approximately $10 billion of repurchases in 2026. It ended the quarter with $17.57 billion in cash, net debt of $126.38 billion and a net debt-to-adjusted EBITDA ratio of 2.68.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
VGM ScoresCurrently, AT&T has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AT&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zoom Video čeká za 2. fiskální čtvrtletí tržby 1,265 až 1,270 miliardy USD a zisk na akcii 1,45 až 1,47 USD. Tahounem má být Enterprise a růst AI Companion, slabší zůstává Online a měnové vlivy.
Key Takeaways Zoom Video enters Q2 with Enterprise revenue growth and stronger high-value customer gains.AI Companion adoption surged 184%, while My Notes surpassed 1.5 million licensed users.Online growth stayed soft as churn rose, while foreign-exchange volatility remained a headwind. Zoom Video Communications (ZM - Free Report) is slated to release second-quarter fiscal 2027 results on Aug. 25.
Zoom expects its second-quarter fiscal 2027 revenues to be between $1.265 billion and $1.270 billion. Revenues on a constant-currency basis are expected to be between $1.262 billion and $1.267 billion.
The Zacks Consensus Estimate for the top line is currently pegged at $1.27 billion, indicating growth of 4.22% from the year-ago quarter.
Non-GAAP income from operations is expected to be between $508 million and $513 million. Non-GAAP earnings per share are expected to be in the range of $1.45-$1.47, based on approximately 304 million weighted-average shares outstanding.
The consensus mark for earnings has remained steady at $1.50 per share over the past 30 days, indicating a decline of 1.96% year over year.
ZM’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the same once, delivering an average surprise of 6.3%.
What Our Model UnveilsPer the Zacks model, 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. But that’s not the case here.
ZM has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s see how things have shaped up for this announcement.
Factors to ConsiderSeveral factors appeared positioned to shape Zoom Communications' second-quarter fiscal 2027 results. On the positive side, Enterprise momentum carried into the quarter, producing 7.2% year-over-year growth and a trailing 12-month net dollar expansion rate of 99% for Enterprise customers as of the fiscal first quarter, alongside an 8.2% year-over-year increase in customers contributing more than $100,000 in trailing 12-month revenues.
Expanding AI monetization is expected to support results, with paid AI Companion adoption up 184% year over year and My Notes surpassing 1.5 million licensed users within months of launch, indicating continued contributions from AI-attached seats and new AI revenue streams.
Profitability trends heading into the quarter, including a 41.1% non-GAAP operating margin and $500.5 million in free cash flow in the prior quarter, along with the board's incremental $1 billion buyback authorization on top of $625 million remaining, further signaled capacity for continued margin discipline and capital return.
On the negative side, Online revenue growth had been comparatively soft at 2.8% year over year entering the quarter, with monthly churn ticking up to 3% from 2.8% a year earlier, a dynamic that is expected to have persisted given uneven small-business demand. Continued foreign-exchange volatility was also flagged as a headwind to reported results, though not to constant-currency results. Against this backdrop, guidance called for total revenues of $1.265 billion to $1.270 billion and non-GAAP diluted earnings per share of $1.45 to $1.47, implying continued but moderating growth relative to the first quarter's 5.5% pace.
Segment developments during the to-be-reported quarter reinforced the AI-first positioning underlying that outlook. In May, Zoom's board authorized the additional $1 billion share repurchase alongside the first-quarter release, while Contact Center and Phone SDKs were extended with real-time audio-translation capabilities.
In June, Zoom launched ZoomMate, an agentic AI work surface combining agentic search, AI-generated deliverables and automated execution across Salesforce, Jira, Slack and ServiceNow, later expanding it with AI agents and introducing Zoom AI On-Prem for regulated enterprises, while AI Companion features were folded natively into Zoom Workplace.
In July, Zoom announced its planned acquisition of Common Room to add buyer-intelligence capabilities to its AI revenue platform, expanded Zoom Virtual Agent Receptionist across telephony environments and unveiled Zoom Revenue Accelerator enhancements to drive revenue action.
Taken together, Enterprise strength, AI monetization progress and expanded buybacks are expected to support results within the guided ranges, while Online softness, elevated churn and currency headwinds remained the primary offsetting factors heading into the print.
Stocks With the Favorable CombinationHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.
Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.
Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.
Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.
Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.
GE Aerospace v první polovině roku 2026 odkoupila akcie za 4,2 miliardy USD a vyplatila dividendy ve výši 873 milionů USD. Zároveň zvýšila dividendu o 30,6 % na 36 centů na akcii a zvedla výhled volného peněžního toku na 8,9–9,2 miliardy USD.
Key Takeaways GE Aerospace repurchased $4.2 billion of shares and paid $873 million in dividends in first-half 2026.GE Aerospace raised its dividend 30.6% to 36 cents per share and has a $20 billion buyback authorization.GE Aerospace expects 2026 free cash flow of $8.9-$9.2 billion, up from its prior $8.0-$8.4 billion view. GE Aerospace (GE - Free Report) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In the first half of 2026, it bought back shares for $4.2 billion and paid dividends of $873 million, up 26.9% year over year, to its shareholders. In addition, in 2025, it rewarded its shareholders with a dividend payment of $1.45 billion and repurchased shares for $7.55 billion. Following the first quarter of 2026, share repurchases are being made under the new $20 billion authorization approved in December 2025.
GE Aerospace raised its dividend by 30.6% to 36 cents per share in February 2026. It expects to generate a free cash flow of $8.9-$9.2 billion in 2026, much higher than $8.0-$8.4 billion guided previously. Also, the company previously announced its plans to boost total shareholder returns by 20% to approximately $24 billion from 2024 to 2026, through a mix of dividends and share repurchases.
The company’s strong liquidity also supports its shareholder-friendly policies. Exiting the second quarter, GE’s cash, cash equivalents and restricted cash were $9.3 billion, much higher than the short-term borrowings of $2 billion. This implies that the company has sufficient cash to meet its short-term debt obligations.
Do GE’s Peers Focus on Returning Capital to Shareholders?3M Company (MMM - Free Report) rewarded its shareholders with dividend payouts of $0.8 billion and $3 billion in buybacks in the first six months of 2026. Exiting the second quarter of 2026, 3M had approximately $1.8 billion remaining under the share repurchase program. Also, in February 2026, 3M hiked its quarterly dividend by 6.8%.
Howmet Aerospace (HWM - Free Report) remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. In the first six months of 2026, Howmet paid dividends of $97 million, and in July 2026, it hiked its dividend by 17% to 14 cents per share (annually: 56 cents). On a year-to-date basis through July, HWM repurchased shares worth $800 million. As of Aug. 6, 2026, Howmet’s total share repurchase authorization available was $697 million.
GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have gained 3% in the past six months against the industry’s decline of 10%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.15X, above the industry’s average of 33.51X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Starbucks letos vzrostl o 25 %, zatímco Dutch Bros klesl o 18 %. Přesto Dutch Bros dál rychleji roste: tržby za posledních 12 měsíců stouply o 29 % a provozní zisk o 35 %.
Starbucks (SBUX +1.64%) stock is up 25% year to date, reflecting the business's improving momentum this year under CEO Brian Niccol, who took over in 2024. Meanwhile, Dutch Bros (BROS +0.84%) stock has fallen 18% as of this writing. That gap stands out, especially because Dutch Bros remains the faster-growing coffee business in terms of revenue and profits.
The underperformance doesn't look justified and could be an opportunity for investors, since Dutch Bros appears to offer a longer growth runway.
Image source: Getty Images.
Starbucks is executing a solid comeback Starbucks' trailing-12-month revenues grew by 4.5% year over year in its fiscal third quarter, which ended June 28, but higher costs have weighed on profitability. Trailing-12-month operating income grew by just 2.5% as the company absorbed turnaround-related costs such as investments to improve service, as well as the impact of higher coffee prices.
Still, Niccol's strategy appears to be working. Global comparable-store sales have accelerated for four straight quarters, and climbed 7.9% year over year in fiscal Q3.
Those improvements are being driven by higher visit frequency. The company has the benefit of a massive loyal customer base, as evidenced by its 35 million-plus Starbucks Rewards members. Management said brand affinity, customer consideration, and purchase intent are at five-year highs.
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Dutch Bros continues to perform at a high level Dutch Bros' trailing-12-month revenue grew 29% year over year. Even better, operating profit rose 35%, showing the company is scaling profitably as it opens more shops across the U.S.
It just delivered its eighth straight quarter of transaction growth and its 13th consecutive quarter of positive comparable-store sales growth. Company-operated same-shop sales rose 8.3% year over year, with systemwide same-shop sales up 5.8%.
Dutch Bros trades at a lower valuation relative to growth Dutch Bros shares trade at a forward price-to-earnings ratio of 52, which is high, but that valuation is supported by analysts' consensus long-term earnings growth estimate of 32% annually.
Starbucks trades at a forward P/E of 41, but analysts expect its earnings to grow by only 19% annually. That gives Dutch Bros the lower price/earnings-to-growth (PEG) ratio of 1.63, compared to Starbucks' 2.15. The PEG comparison shows that investors are getting more value for Dutch Bros' higher expected earnings growth rate than for Starbucks.
A lower PEG ratio sets up the potential for stronger long-term shareholder returns. Dutch Bros currently has 1,225 shops open, but it believes its addressable market can support 7,000 shops. Management believes it is on a path to expand to 2,029 locations by 2029.
Both are solid businesses that can deliver returns. But Dutch Bros' 18% share price decline this year doesn't appear to match either the company's fundamentals or the growth it has ahead.
Xerox ve 2. čtvrtletí překonal odhady a zvýšil výhled na rok 2026 díky synergiím Lexmarku a úsporám nákladů. Upravená provozní marže vzrostla na 10,6 %.
Key Takeaways Xerox beat Q2 estimates and raised 2026 revenue and adjusted operating income guidance.Lexmark synergies and cost actions lifted margins, with adjusted operating margin reaching 10.6%.Pro forma revenue fell 6.5%, while free cash flow improved to $11 million in the second quarter. Xerox Holdings Corporation (XRX - Free Report) topped second-quarter 2026 expectations and raised its full-year outlook as Lexmark integration benefits and cost actions lifted profitability. Revenue growth was acquisition-driven, while underlying demand remained softer.
The main question is how much of the profit improvement can persist without the $105 million tariff-receivable benefit. Margin expansion excluding that item and higher Lexmark synergy targets support the operating case, but pro forma revenue declines and modest free cash flow keep execution in focus.
XRX's Q2 Beat Included a $105 Million TailwindXRX reported earnings of 36 cents per share, topping the Zacks Consensus Estimate by more than 100%. Revenues of $1.92 billion beat the consensus mark by 1% and increased 22% year over year.
Profitability received material support from a $105 million pre-tax benefit tied to tariff receivables. Adjusted operating margin reached 10.6%, but excluding that benefit, the margin was 5.1%, still up 140 basis points year over year.
Xerox Raises 2026 Profit Guidance After Q2Xerox now expects 2026 revenues of approximately $7.6 billion, up from its prior outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment.
Adjusted operating income guidance increased to $555-$605 million from $450-$500 million. Free cash flow guidance remained approximately $250 million, making the unchanged cash target an important counterpoint to the higher profit outlook.
XRX's Lexmark Synergies Add Operating LeverageXerox raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026. The higher target builds on Project Reinvention and the company's broader effort to reduce its cost base.
Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. The margin progress suggests operating leverage is emerging, although the tariff-receivable benefit also contributed to reported profitability.
Xerox's Pro Forma Revenue Decline Tests MomentumReported revenue rose 22% year over year, but pro forma revenue declined 6.5%. Print and Other revenue fell 6.1% on a pro forma basis, while pro forma equipment revenue dropped 13%, showing that acquisition-driven growth has not yet translated into underlying expansion.
HP Inc. (HPQ - Free Report) remains a relevant print benchmark because it continues to report a dedicated Printing segment. Canon Inc. (CAJPY - Free Report) likewise competes across office multifunction devices, laser printers and production printing through its Printing Business Unit.
XRX's Free Cash Flow Must Catch UpFree cash flow improved to $11 million in the second quarter from an outflow of $30 million a year earlier. Operating cash flow reached $37 million compared with an $11 million outflow in the prior-year period.
Image Source: Zacks Investment Research
The improvement is directionally positive, but Xerox still expects approximately $250 million of free cash flow for 2026. Delivery against that target will help show whether margin gains and integration savings are translating into stronger cash generation.
XRX's Style Scores Point to Mixed Near-Term SignalsThe quarter strengthened Xerox's profit outlook, but the mix of tariff benefits, synergy gains and contracting pro forma revenues keeps the durability question open. Stabilization in underlying revenue trends would make the margin improvement more convincing.
XRX currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term stance. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those grades are constructive within the Style Score framework, but Style Scores are designed to complement rather than override the Zacks Rank.
NCLH čeká zpomalení růstu kapacity na 2,5% CAGR v letech 2026–2029, protože do služby přibude méně lodí. Kapacita má v roce 2026 vzrůst o 7 %. Nižší kapitálové výdaje mají podpořit volný peněžní tok a snižování dluhu.
Key Takeaways NCLH sees capacity growth slowing to a 2.5% CAGR from 2026-2029 as fewer new ships enter service.Norwegian Cruise expects newbuild and growth capex to decline by nearly $1B annually as deliveries ease.NCLH's cost savings and lower capital needs are expected to support free cash flow and deleveraging. Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is moving toward a less capital-intensive phase of fleet expansion after several years of elevated newbuild activity. Capacity days are expected to increase 7% in 2026, but growth is projected to moderate to a 2.5% CAGR over the 2026-2029 period as the pace of ship deliveries slows. The shift is likely to support a more favorable backdrop for free-cash-flow generation over the next several years.
The cash-flow opportunity is backed by a meaningful reduction in the newbuild cadence. NCLH expects to take delivery of two ships in both 2026 and 2027, followed by one ship in each of 2028 and 2029. Gross newbuild and growth capital expenditures are consequently expected to decline by nearly $1 billion annually. The company is also managing fleet composition, with five ships expected to leave the fleet over the next three years.
Cost initiatives provide additional support to free-cash-flow generation. NCLH has identified more than $500 million of savings over the past three years, including approximately $225 million of annualized savings and cash benefits announced during the past two quarters. The vast majority of the benefits from the latest $100 million initiative relate to capital expenditures, while additional efficiency opportunities remain across SG&A and shipboard operations. These measures are expected to support margins and cash generation.
The cash-flow case remains sensitive to operating performance. NCLH expects year-end 2026 net leverage to remain above six times, while near-term yields continue to face pressure from a below-optimal booked position.
As the newbuild cadence moderates, NCLH expects stronger free cash flow to support debt reduction and meaningful progress on deleveraging. Lower growth-related capital spending and continued cost discipline are likely to support cash generation and provide a more favorable financial framework for balance-sheet improvement over time.
NCLH’s Price Performance, Valuation & EstimatesShares of Norwegian Cruise have declined 28.3% in the past year compared with the industry’s 0.3% fall. In the same time frame, other industry players like Royal Caribbean Cruises Ltd. (RCL - Free Report) and Carnival Corporation & plc (CCL - Free Report) have declined 11.5% and 13.3%, respectively.
NCLH One-Year Price Performance
Image Source: Zacks Investment Research
NCLH stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.86, well below the industry average of 17.52. Industry players, such as Royal Caribbean and Carnival have P/E ratios of 14.92 and 10.18, respectively.
NCLH’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Norwegian Cruise’s 2026 earnings per share has declined in the past 30 days.
EPS Trend of NCLH Stock
Image Source: Zacks Investment Research
The company is likely to report dismal earnings, with projections indicating an 24.2% fall in 2026. Conversely, industry players like Royal Caribbean are likely to witness an increase of 13.7%, year over year, in 2026 earnings. Meanwhile, Carnival’s 2026 earnings are likely to witness a fall of 0.9% year over year.
NCLH’s Zacks RankNCLH stock currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IBM za měsíc od posledních výsledků přidala asi 13,1 % a překonala S&P 500. Výnosy za 2. čtvrtletí zklamaly, ale upravený zisk na akcii 2,93 USD splnil odhady.
It has been about a month since the last earnings report for IBM (IBM - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is IBM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
IBM Q2 Earnings Meet Estimates, Revenue Misses on Deal Delays
IBM reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%.
The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Software annual recurring revenue reached $24.6 billion, up 8% year over year, supported by continued strength in Red Hat, HashiCorp and Confluent.
Software Growth Slows on Transaction Timing
Software revenues increased 5.1% year over year to $7.76 billion. Hybrid Cloud revenues rose 11%, while Data advanced 19%, or 18% at constant currency. Automation grew 4%, or 3% at constant currency.
Transaction Processing revenues fell 8%, or 9% at constant currency, as clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases. Management observed that several large deals did not close on schedule, accounting for most of the quarterly shortfall.
About 80% of annual software revenues are recurring, comprising subscription, consumption and support streams. This portion delivered healthy growth, while OpenShift annual recurring revenue reached $2.2 billion.
HashiCorp posted another record-bookings quarter, while Confluent remained on track after its first full quarter since the acquisition. Software segment profit rose 9% to $2.50 billion, lifting margin 110 basis points (bps) to 32.2%.
Consulting Gains from AI Transformation Demand
Consulting revenues were nearly flat at $5.33 billion, up 1% in constant currency. Strategy and Technology and Intelligent Operations each increased 1% on a constant-currency basis. Signings grew 6% to $5.0 billion, marking a second consecutive quarter of growth. Generative AI represented about 50% of signings and more than 30% of backlog. Segment profit increased 15.1% to $647 million, while margin expanded 160 bps to 12.1%.
Infrastructure Segment Mix Weighs
Infrastructure revenues declined 7.4% to $3.84 billion. Hybrid Infrastructure fell 10%, reflecting a 42% plunge in IBM Z revenues, while Infrastructure Support slipped 1%. Distributed Infrastructure surged 37% and delivered its strongest quarterly growth on record. Power and Storage exited the quarter with nearly $500 million of backlog. Infrastructure segment profit declined 13% to $835 million, and margin contracted 150 bps to 21.8%.
IBM Expands Operating Profit Despite Gross Margin Pressure
Non-GAAP gross profit was $10.19 billion, essentially flat year over year, while non-GAAP gross margin declined 70 bps to 59.4%. The pressure mainly reflected the revenue shortfall and business mix.
Non-GAAP pre-tax income rose 3% to $3.29 billion, with margin expanding 30 bps to 19.2%. Adjusted EBITDA increased 2% to $4.8 billion, and margin improved about 20 bps to 27.8%, aided by productivity initiatives.
IBM Maintains Cash Flow Discipline
IBM generated $2.6 billion in operating cash flow during the quarter, up $0.9 billion year over year. Free cash flow was $2.5 billion, down $0.3 billion, while first-half free cash flow remained flat at $4.8 billion.
The company ended June with $8.20 billion in cash, restricted cash and marketable securities. Total debt was $62 billion, including $13 billion of IBM Financing debt. IBM returned $1.59 billion to shareholders through quarterly dividends.
IBM Trims Revenue View but Raises Margin Target
For 2026, IBM now expects constant-currency revenue growth of 4% to 5%, down from its prior expectation of more than 5%. The company continues to expect free cash flow to increase by about $1 billion year over year.
Software growth is projected at 6% to 8%, while Infrastructure is expected to grow in the low single digits. Consulting growth is forecast to accelerate to the low-to-mid-single-digit range. IBM now expects 100 bps of operating pre-tax margin expansion for the year.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresAt this time, IBM has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. Interestingly, IBM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Moderna a Merck oznámily, že jejich personalizovaná mRNA vakcína proti rakovině splnila primární cíle ve fázi 3 u melanomu. Jde o první mRNA léčbu rakoviny, která uspěla ve fázi 3.
For years, Moderna, Inc‘s (NASDAQ:MRNA) biggest challenge wasn’t developing new medicines — it was convincing investors that it could thrive after COVID-19. The company’s vaccine transformed it into one of the world’s most recognizable biotech names, but as the pandemic demand faded, so did its revenue and stock price.
Now, a breakthrough in cancer treatment may finally give Moderna the second act investors have been waiting for.
COVID Turned Moderna Into a Biotech Powerhouse, Then Came the Hard PartRevenue climbed to nearly $19 billion in 2021 and $20 billion in 2022 from just about $800 million in 2020, in the wake of its COVID-19 vaccine, turning the once little-known biotech into one of the industry’s biggest success stories. Once the COVID-19 hype died down, revenue again stalled back to about $7 billion in 2023 and is being reported lower each year. In 2025, Moderna fell short of breaching $2 billion in annual revenue.
This drop left investors questioning whether the company could build another meaningful business beyond the COVID-19 vaccine. While the company continued investing billions of dollars across vaccines and therapeutics, Wall Street largely viewed it as a business searching for a successor to its pandemic blockbuster.
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The Cancer Breakthrough Changes the ConversationThat narrative shifted this week.
Moderna and Merck & Co Inc. (NYSE:MRK) announced that their personalized mRNA cancer vaccine met the primary endpoints in a Phase 3 melanoma trial, marking the first mRNA-based cancer treatment to demonstrate success in a Phase 3 trial. The treatment is designed by analyzing a patient’s tumor and creating a customized vaccine that helps the immune system recognize and attack remaining cancer cells after surgery.
More importantly for investors, the melanoma result is about more than one drug. It provides Moderna with its strongest clinical evidence yet that its mRNA platform could have applications beyond infectious diseases. The company is already studying the same personalized approach in other cancers, including lung, bladder and kidney, giving investors a glimpse of a much larger opportunity if the technology continues to deliver.
Investment TakeawayThe market’s reaction wasn’t simply a celebration of a promising melanoma treatment. It reflected a broader shift in how investors may begin to value Moderna. For the first time since the pandemic boom faded, the company has a compelling answer to the question that has defined its investment story: what comes next?
The Phase 3 success does not guarantee commercial success, and investors will still want to see detailed trial data and progress in other cancers. But if this breakthrough proves to be the first validation of a broader oncology platform, COVID-19 may be remembered as the chapter that made Moderna famous — while cancer becomes the one that defines its future.
Merck zůstává podle článku podhodnocený, když se obchoduje za 16násobek odhadovaných upravených zisků pro rok 2027. Firma navíc hlásí pipeline s potenciálem přes 70 miliard USD ve více než 20 nových produktech.
SHENZHEN, CHINA - JULY 27: In this photo illustration, a smartphone displays the logo of Merck & Co., Inc. (NYSE: MRK), a global pharmaceutical company developing medicines and vaccines, in front of a screen showing the company's latest stock market chart on July 27, 2026 in Shenzhen, Guangdong Province, China. (Photo illustration by Cheng Xin/Getty Images)
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This article was written by Doug Nathman, with research by his team at Trefis.
You wouldn’t anticipate a pharmaceutical powerhouse with a $368 billion market capitalization to produce results that leave growth investors feeling embarrassed. Nevertheless, in the past year, Merck (MRK) delivered an impressive 73% return to investors, outpacing the S&P 500. The peak occurred on August 19, 2026, when the stock reached unprecedented highs.
What triggered the recent surge? The direct catalyst was the successful clinical trial of the experimental mRNA cancer vaccine in collaboration with Moderna (MRNA). This achievement exhibited significant effectiveness, resulting in a notable increase in buying activity due to immediate revenue potential in oncology. However, yesterday's announcement merely confirms a larger strategy. The true factor driving the annual gain is how systematically Merck addressed the principal concern that has kept shareholders awake at night: What will transpire after the KEYTRUDA patent expiration?
For numerous years, the approaching loss of exclusivity for the blockbuster drug KEYTRUDA posed a substantial burden. The company’s leadership responded to this anxiety with a consistent stream of clinical and regulatory successes. The pipeline has produced concrete outcomes, transforming the company from one on the brink of a patent expiration to one that is constructing a dependable pathway for steady earnings growth.
What has the pipeline actually achieved?The pivotal event was the FDA's approval of LIPFENDRA. As the first oral PCSK9 inhibitor for individuals with high cholesterol, it disrupts a market that has been primarily reliant on injectables. Clinical evidence indicates that this daily pill can reduce LDL cholesterol by as much as 60% when used in conjunction with a statin. In addition to the recent mRNA cancer vaccine data, Merck also reported favorable Phase III results for sac-TMT in endometrial cancer and tulisokibart for ulcerative colitis. Growing uncertainties in the pipeline have been replaced by confirmed successes, demonstrating that the research engine continues to be highly productive.
How substantial is this new commercial plan?With clinical data solidifying, management has finally outlined future expectations. They estimate a pipeline with over $70 billion in commercial potential spread across more than 20 new products. For a market fixated on the forthcoming KEYTRUDA revenue gap, this figure serves as a compelling counter-narrative. The significant stock revaluation indicates that Wall Street now confidently endorses this projection.
Is the new valuation warranted when compared to competitors?Valuation serves as the ultimate test of this shift. All forward-looking peer valuations are based on consensus estimates for 2027 on an adjusted EPS basis. At $152 per share against anticipated adjusted earnings of $9.56, Merck is trading at a mere 16x forward earnings. When compared across the peer landscape, while Pfizer (PFE) is priced at a lowly 9.6x multiple and AbbVie (ABBV) at 16.4x, higher-growth competitors command significant premiums. Johnson & Johnson (JNJ) trades at 21.5x forward earnings, while Eli Lilly (LLY) commands 27x. Even with an over 73% rise in the past twelve months, Merck's 16x multiple underlines that the stock is still undervalued relative to top-tier competitors, suggesting more upside potential if they maintain performance.
Can Merck successfully market LIPFENDRA?Acquiring approval for a drug is one challenge, but achieving widespread prescriptions is quite another. The track record of injectable PCSK9 inhibitors has been marked by slow adoption rates, particularly within primary care environments. Analysts are scrutinizing the speed of initial access and whether a significant outcomes trial will act as the commercial turning point. Merck is betting vigorously on total market expansion rather than merely capturing existing market share.
Has the sales strategy been validated?The risks of clinical development have largely diminished, replaced by the less predictable risks associated with global commercial execution. The foundational science behind the mRNA cancer vaccine has been validated by late-stage clinical findings, while the broader pipeline continues to receive formal approvals from regulators. Now, the company must flawlessly execute its commercialization strategy to substantiate the new valuation.
The Final AssessmentInvestors should consider Merck not merely as a company facing a looming patent expiration, but rather as a de-risked commercial leader with clear visibility into its pipeline. In our opinion, Merck remains fundamentally undervalued at 16x 2027 adjusted earnings compared to its peer group, presenting an appealing risk-reward profile as operational execution unfolds.
The Trefis High Quality (HQ) Portfolio uses a rules-based methodology to select and systematically rebalance 30 stocks screened for operational quality and valuation metrics. This strategy evaluates companies across a broad market universe and measures its historical performance against a composite benchmark of the S&P 500, S&P Mid-Cap, and Russell 2000 indices.
