Regeneron (REGN - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis biopharmaceutical company is expected to post quarterly earnings of $10.00 per share in its upcoming report, which represents a year-over-year change of -22.4%.
Revenues are expected to be $3.84 billion, up 4.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Regeneron?For Regeneron, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.22%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Regeneron will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Regeneron would post earnings of $8.52 per share when it actually produced earnings of $9.47, delivering a surprise of +11.15%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Regeneron appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways TSMC lifted its 2026 revenue growth outlook above 40% after strong second-quarter results and AI demand.TSM expects N2 technology and broad customer demand to support continued third-quarter momentum.TSMC sees Agentic AI boosting CPU silicon demand while staying positioned across multiple CPU architectures. Taiwan Semiconductor Manufacturing Company (TSM - Free Report) , or TSMC, reported second-quarter 2026 revenues of $40.2 billion, up 33.7% from a year ago, driven by continued strong demand for leading-edge process technologies. The company expects that momentum to continue in the third quarter, helped by the rapid ramp-up of its 2-nanometer (N2) technology. Due to robust technology differentiation and the broad customer base, management also raised its full-year revenue growth forecast to slightly above 40% year over year in U.S. dollar terms, up from the previous projection of above 30%.
At the same time. TSMC acknowledged challenges in the consumer and price-sensitive end markets. Rising component prices and macroeconomic uncertainties continue to weigh on those markets, prompting the company to take a prudent approach to business planning while focusing on the fundamentals needed to strengthen its competitive position.
AI-related demand remains exceptionally strong. The AI megatrend continues to fuel the need for greater computation, supporting the robust demand for leading-edge silicon. TSMC’s customers, primarily cloud service providers, continue to signal a strong and positive outlook, underpinning confidence in the long-term AI opportunity.
The company expects to benefit from the rise of Agentic AI, which is increasing the role of CPUs in AI data centers and driving additional silicon demand alongside AI accelerators. TSMC believes it is well-positioned, regardless of whether customers adopt x86, Arm-based or RISC-V architectures, and is working closely with CPU customers to provide the advanced technologies and capacity needed to capture the market opportunities.
TSM’s Peer UpdatesMicron Technology (MU - Free Report) is gaining from AI-led data center demand, tight industry supply and a richer mix of high-value memory and storage products. The company’s total revenues for the third quarter of fiscal 2026 came in at $41.46 billion, a remarkable increase from last year’s $9.30 billion, mainly due to higher sales of both Dynamic Random Access Memory (“DRAM”) and NAND products. For the fiscal fourth quarter, Micron has guided for revenues between $49 billion and $51 billion across both GAAP and Non-GAAP measures.
Intel (INTC - Free Report) is set to report its second-quarter 2026 results on July 23, following the market close. The company recently expanded its long-standing relationship with Fortinet by announcing a strategic collaboration to develop Fortinet Security Processor 6 (SP6). Fortinet’s proprietary, purpose-built security processor expertise will be combined with Intel’s advanced design, packaging and manufacturing capabilities to accelerate and strengthen SP6 development.The companies will also explore opportunities to expand their collaboration across semiconductor technology, manufacturing and the infrastructure that supports future cybersecurity innovation.
The Zacks Rundown for TSM StockYear to date, Taiwan Semiconductor shares have rallied 39.2%, slightly trailing the Zacks Semiconductor - Circuit Foundry industry’s 39.7% growth.
Image Source: Zacks Investment Research
In terms of valuation, TSM trades at a forward, 12-month Price/Sales (P/S) of 11.50X compared with its 10.98X median and the industry average of 11.46X.
Image Source: Zacks Investment Research
As shown below, earnings estimates for TSM have moved significantly higher following the July 16 earnings release.
Image Source: Zacks Investment Research
Taiwan Semiconductor sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher Scientific (TMO - Free Report) reported $11.99 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 10.5%. EPS of $6.03 for the same period compares to $5.36 a year ago.
The reported revenue represents a surprise of +2.67% over the Zacks Consensus Estimate of $11.68 billion. With the consensus EPS estimate being $5.71, the EPS surprise was +5.6%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Thermo Fisher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue Growth - Organic: 5% compared to the 3% average estimate based on five analysts.Revenues- Laboratory Products and Biopharma Services: $6.69 billion versus the four-analyst average estimate of $6.46 billion. The reported number represents a year-over-year change of +11.6%.Revenues- Specialty Diagnostics: $1.21 billion compared to the $1.17 billion average estimate based on four analysts. The reported number represents a change of +6.3% year over year.Revenues- Life Sciences Solutions: $2.82 billion versus $2.74 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.7% change.Revenues- Eliminations: $-565 million compared to the $-522.03 million average estimate based on four analysts. The reported number represents a change of +12.8% year over year.Revenues- Analytical Instruments: $1.85 billion compared to the $1.81 billion average estimate based on four analysts. The reported number represents a change of +6.9% year over year.View all Key Company Metrics for Thermo Fisher here>>>
Shares of Thermo Fisher have returned +7% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways TMO posted Q2 adjusted EPS of $6.03 and revenues of $11.99 billion, both above estimates.Thermo Fisher delivered 5% organic revenue growth with stronger customer activity across end markets.TMO expanded adjusted operating margin to 22.8% as profitability improved across all four segments. Thermo Fisher Scientific (TMO - Free Report) delivered second-quarter 2026 adjusted earnings of $6.03 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate by 5.6%.
Revenues rose 10% to $11.99 billion and surpassed the consensus mark by 2.67%. Results were supported by 5% organic revenue growth, while customer activity strengthened across the company’s end markets.
Following the earnings announcement, TMO stock rose 4.4% in pre-market trading today.
TMO's Segmental Growth BroadensLife Sciences Solutions revenues increased 12.6% year over year to $2.82 billion. Segment income rose to $1.04 billion from $919 million, while the segment income margin expanded 20 basis points to 37%.
Laboratory Products and Biopharma Services remained the largest business, with revenues climbing 11.6% to $6.69 billion. Segment income increased to $936 million from $825 million, and margin improved to 14% from 13.8%. The segment accounted for 55.8% of consolidated revenues before eliminations.
Analytical Instruments revenues advanced 6.9% to $1.85 billion. Segment income jumped to $424 million from $325 million, driving margin expansion to 23% from 18.8%. The improvement made this segment the strongest margin gainer in the quarter.
Specialty Diagnostics revenues grew 6.3% to $1.21 billion. Segment income reached $334 million compared with $306 million a year earlier, while margin increased to 27.7% from 27%. Together, the two smaller segments added growth without diluting overall operating profitability.
TMO Expands Operating LeverageAdjusted operating income increased 15% year over year to $2.74 billion. The adjusted operating margin widened 90 basis points (bps) to 22.8%, reflecting stronger profitability across all four business segments.
On a GAAP basis, operating income rose 14% to $2.09 billion, while the operating margin improved 50 bps year over year. The cost of revenues was $7.05 billion, selling, general and administrative expenses were $1.91 billion, and research and development spending totaled $364 million.
Thermo Fisher’s Cash Deployment Reflects Strategic MovesThermo Fisher ended the second quarter with cash and cash equivalents of $4.06 billion compared with $3.25 billion at the end of the first quarter.
Cumulative net cash provided by operating activities came to $3.32 billion, compared with $2.12 billion in the year-ago period.
The company repurchased $1 billion of stock during the quarter and announced the divestiture of its microbiology business. For the first six months of 2026, acquisitions net of cash acquired totaled $8.87 billion, share repurchases reached $4 billion, and dividends paid amounted to $337 million.
Thermo Fisher Deepens Customer PartnershipsThermo Fisher opened its flagship U.S. Bioprocess Design Center in Plainville, MA. The site expands its network of collaborative innovation hubs intended to help pharma and biotech customers accelerate drug development and optimize manufacturing.
The company also announced a collaboration with Precision Health Research, Singapore, to support the PRECISE-SG100K population health study. The project will use Thermo Fisher's integrated proteomics capabilities, including Olink technology and the Orbitrap Astral mass spectrometry system.
Our TakeThermo Fisher ended the second quarter with both earnings and revenues beating respective estimates. Performance reflected the strength of the company’s proven growth strategy, strong execution and the power of the PPI Business System. Expansion of the adjusted operating margin in the quarter is also very promising.
During the quarter, Thermo Fisher launched a range of high-impact, innovative new products, including the next-generation Orbitrap mass spectrometry platforms with AI-driven analytics. It also introduced the Applied Biosystems PowerFlex Thermal Cycler to improve workflow flexibility, speed and reproducibility in molecular biology laboratories.
TMO’s Zacks Rank and Key PicksThermo Fisher currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Danaher (DHR - Free Report) and Elevance Health (ELV - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.
Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%.
DHR has an earnings yield of 4.7% compared to the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%.
Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%.
ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%.
ToplineEli Lilly, the GLP-1 maker behind Mounjaro and Zepbound, said it would file for Food and Drug Administration approval of its powerful retatrutide weight-loss drug after studies found participants lost an average of nearly 56 pounds after 80 weeks on the medication.
Eli Lilly says it plans to file for regulatory approval for retatrutide. (Photo by Smith Collection/Gado/Getty Images)
Gado via Getty Images
Key FactsLilly announced the results of two phase 3 trials on Thursday, saying it will file for FDA approval of the drug—potentially adding another GLP-1 to its lineup—in the first quarter of 2027.
One study of adults with severe obesity showed an average weight loss of 22.6%, or 55.8 pounds, after 80 weeks, while another study of adults with obesity and diabetes showed participants lost an average of 20.8% of their weight, or about 49.6 pounds.
The study also found “major adverse cardiovascular events”—like heart attack or failure—occurred “less frequently than anticipated.”
Retatrutide is considered likely the most powerful weight loss drug yet, as it targets multiple hormones—GLP-1, GIP and glucagon—that impact appetite and metabolism, whereas other drugs currently on the market target one or two of those hormones.
Approval of the drug would be a win for Lilly as it tries to maintain dominance over the GLP-1 market, where it has already overtaken rival company Novo Nordisk, manufacturer of Ozempic and Wegovy.
How Big Could Retatrutide Be?Analysts have suggested retatrutide could become a blockbuster weight loss drug if approved. In January, TD Cowen analysts estimated retatrutide could generate $3.8 billion in sales in 2030, while GlobalData forecasts sales of $15.6 billion by 2031. Demand for the drug is already so intense some people have turned to an online black market, facilitated through WhatsApp or other websites, to buy what sellers say is retatrutide from Chinese labs, the New York Times reported.
tangentNovo Nordisk sued Eli Lilly on Tuesday, accusing the company of using outdated studies in its advertisements that exaggerate the efficacy of Lilly’s products. The suit accused Lilly of demonstrating a “nationwide pattern of deceptive advertising,” saying one of its ad campaigns uses an outdated dose of Novo’s Wegovy to compare it unfavorably to Lilly’s Zepbound. Novo’s suit seeks a permanent injunction from the court that would require Lilly to pull “misleading comparative advertising” campaigns and conduct a “corrective advertising campaign.”
key backgroundLilly and Novo are chief rivals in the GLP-1 market, but Lilly now captures a greater share of prescriptions, CNN reported in February. BMO analysts said last year they expected Lilly’s drugs to “continue to take incremental U.S. share from Novo’s” GLP-1 medications. “While Novo had the headstart with approval of semaglutide, we believe that this first mover advantage has waned, with Lilly's tirezepatide taking share rapidly,” the analysts wrote, adding Lilly’s dominance could accelerate with retatrutide. CNBC reported in February Novo Nordisk was bracing for a 5% to 13% decline in sales and profit for 2026, while Lilly expected about a 25% boost in sales. Earlier this year, Novo Nordisk said it would slash prices on its flagship medications in 2027 as it tries to win over customers.
further readingNovo Nordisk Sues GLP-1 Rival Eli Lilly For Misleading Advertising (Forbes)
Key Takeaways TXN highlighted broad demand recovery as industrial, automotive and data center markets drove growth.TXN's data center sales doubled year over year, while automotive demand improved with EV and hybrid strength.Texas Instruments is expanding capacity, citing clean room space and investments to support future demand. Texas Instruments Incorporated (TXN - Free Report) emphasized a broad-based demand recovery during its second-quarter fiscal 2026 earnings call, with management highlighting strength across the industrial, data center and automotive markets as key drivers. Revenues exceeded the Zacks Consensus Estimate, while executives focused more on improving demand trends and capacity readiness than on the quarter’s financial results.
Management highlighted expanding opportunities from inventory normalization, stronger customer demand and long-term investments in manufacturing capacity. The discussion also centered on pricing actions, data center growth and the company’s ability to support customers through the current cycle.
TXN Demand Broadens Across Industrial and Automotive MarketsCEO Haviv Ilan said second-quarter revenues reached $5.46 billion, up 23% year over year, with Analog revenues increasing 26% and Embedded Processing revenues rising 16%. Industrial, automotive and data center markets were the primary contributors to growth.
Ilan noted that industrial revenues increased around 30% year over year, automotive revenues grew in the mid-teens and data center revenues doubled from the prior-year period. He added that demand strength expanded beyond the earlier industrial and data center trends.
The company reported earnings per share (EPS) of $2.14, exceeding the Zacks Consensus Estimate of $1.91. Revenues of $5.46 billion also surpassed the Zacks Consensus Estimate of $5.22 billion.
Texas Instruments Sees Strength Across End Markets in Q2Texas Instruments said automotive demand improved during the second quarter of fiscal 2026, with Ilan attributing the improvement to stronger electric vehicle and hybrid demand, particularly in China, along with low customer inventory levels.
Management also discussed data center momentum, where sales doubled year over year. Ilan said higher-voltage architectures and increased power conversion needs could expand opportunities for Analog and Embedded products.
Personal electronics remained comparatively soft, as customer shortages continued to affect the market. Management still expects the segment to contribute to broader third-quarter growth.
Texas Instruments' Capacity Strategy Supports Long-Term GrowthTXN emphasized that its prior investments in inventory and manufacturing capacity are helping it respond to demand. Ilan said the company’s available clean room space positions it to support growth without the constraints experienced in previous cycles.
The company increased factory loadings from the first to the second quarter and said third-quarter decisions will depend on demand conditions. Management identified the Richardson, Sherman and Lehi facilities as key parts of its expansion strategy.
Capital spending remained focused on long-term capacity needs. CFO Rafael Lizardi said 2026 capital expenditures are expected to remain within the $2-$3 billion range, with spending decisions tied to future demand scenarios.
Texas Instruments Pricing Actions Support Future Growth PathTexas Instruments said pricing was stable during the first half of the year, which management described as better than its typical annual pricing trend. Ilan said the company has started implementing price increases for customers.
Management expects pricing benefits to appear gradually, beginning in the third quarter of fiscal 2026 and extending into future periods, depending on customer discussions and annual pricing cycles.
Analysts also questioned whether the strength in the industrial market was driven by pricing or product value. Management said the second-quarter improvement was primarily driven by secular content growth, inventory normalization and new system demand.
TXN Outlook Reflects Broad-Based Growth Across Key MarketsTXN guided third-quarter revenues to a range of $5.65-$6.15 billion and EPS to $2.23-$2.57. Management expects strength across the industrial, data center, automotive and personal electronics markets.
A JPMorgan analyst asked about automotive momentum and pricing actions. Ilan said demand improved during the second quarter and reflected broader customer needs rather than a single market factor.
A Goldman Sachs analyst asked about inventory and factory utilization. Management said inventory declined sequentially and that available capacity gives TXN the flexibility to respond as demand evolves.
Texas Instruments Closing ViewTexas Instruments maintained that its long-term value creation remains tied to manufacturing strength, technology investments, product breadth and disciplined capital allocation. Management reiterated that free cash flow per share growth remains its key performance objective.
The company reported trailing 12-month free cash flow of $6.5 billion and returned $5.8 billion to shareholders during the same period. Management continued to emphasize balancing capacity investment with shareholder returns.
Texas Instruments Zacks RankTXN carries a Zacks Rank #2 (Buy). The Zacks Rank focuses on earnings estimate revisions and is designed to help identify stocks with stronger potential performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of D, Growth Score of B, Momentum Score of B and VGM Score of C. Zacks Style Scores evaluate value, growth and momentum characteristics, with higher scores indicating stronger attributes within each style category.
The Zacks Rank can change as analysts update earnings estimates following new company information, including developments after the latest quarterly results.
Key Takeaways Texas Instruments' Q2 earnings rose 52% and revenues climbed 23%, topping estimates.Analog revenues grew 26% to $4.37 billion, reflecting stronger demand across key end markets.TXN expects Q3 revenues of $5.65-$6.15 billion and earnings of $2.23-$2.57 per share. Texas Instruments (TXN - Free Report) reported second-quarter 2026 earnings of $2.14 per share, which increased 52% year over year. The bottom line beat the Zacks Consensus Estimate by 12%.
TXN’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters, while missing once, with an average surprise of 8.3%.
TXN posted revenues of $5.46 billion, which rose 23% from the year-ago quarter. The top line surpassed the consensus mark by 4.6%, driven by strength in industrial, data center and automotive markets.
TXN’s Segment Mix Highlights Broad-Based GrowthTexas Instruments’ second-quarter results reflected strength across its two core operating segments.
Analog revenues came in at $4.37 billion (79.9% of total revenues), which grew 26% from the year-ago quarter, underscoring improving demand conditions across key end markets. The figure came above our model estimate of $4.08 billion.
Embedded Processing revenues totaled $788 million (14.4% of total revenues), reflecting 16.1% year-over-year growth. The figure missed our model estimate of $799.1 million.
The Other segment generated $310 million of revenues (5.7% of total revenues), which declined 2.2% from the prior-year period. The figure missed our model estimate of $328.5 million.
Texas Instruments Expands Operating LeverageTexas Instruments’ gross profit increased 30% year over year to $3.35 billion. Gross margin of 61.4% expanded 350 basis points (bps) year over year.
Selling, general and administrative (SG&A) expenses increased 1% year over year to $490 million. As a percentage of revenues, SG&A expenses contracted 190 bps year over year to 9%.
Research and development expenses increased 1.5% year over year to $535 million. As a percentage of revenues, it decreased 210 bps year over year to 9.8%.
Operating profit rose 47.8% year over year to $2.31 billion. The operating margin was 42.3%, which expanded 710 bps from the prior-year quarter’s number.
TXN Cash Generation Supports Shareholder ReturnsAs of June 30, 2026, the cash and short-term investment balance was $7 billion, up from $5.1 billion as of March 31, 2026.
At the end of the reported quarter, TXN’s long-term debt was $12.903 billion compared with $12.901 billion in the previous quarter.
Texas Instruments generated an operating cash flow of approximately $2.7 billion in the second quarter. During the second quarter, it repurchased stocks worth $27 million and paid $1.295 billion in dividends.
Texas Instruments Initiates Guidance for Q3 2026Management’s outlook calls for third-quarter 2026 revenues in the range of $5.65-$6.15 billion. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $5.44 billion, indicating an increase of 14.7% from the year-ago quarter.
The company expects an effective tax rate of about 13% in the third quarter.
The company expects earnings per share between $2.23 and $2.57. The consensus mark for the same is pegged at $2.08 per share, indicating an increase of 40.5% from the year-ago quarter.
Zacks Rank and Other Stocks to ConsiderCurrently, TXN carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Cisco Systems (CSCO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have rallied 69.6% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, down by a penny over the past seven days, indicating an increase of 59.4% year over year.
Shares of Applied Materials have skyrocketed 196.2% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by a penny over the past seven days, indicating a rise of 28.9% year over year.
Cisco Systems shares have surged 63.6% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year.
Vertical Aerospace: Pre-Flight Checks Point to a BreakoutHoneywell International NASDAQ: HON reported stronger-than-expected second-quarter 2026 results for its newly defined Honeywell Technologies business and raised its full-year outlook, citing broad order strength, margin expansion and momentum across its automation-focused portfolio.
Chairman and Chief Executive Officer Vimal Kapur said the quarter marked “an important milestone” as the company began operating as a pure-play automation company following the June 29 spin-off of Honeywell Aerospace. Senior Vice President of Investor Relations Mark Macaluso noted that the results and guidance discussed on the call exclude Honeywell Aerospace, remove pension income and Quantinuum from adjusted results, and reflect the impact of a one-for-two reverse stock split on adjusted earnings per share.
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Brady Corp Wires Up a Massive AI-Powered BreakoutKapur said Honeywell Technologies delivered 4% organic sales growth in the quarter, driven by continued strength in Building Automation and better-than-expected performance in Process Automation and Technology, or PA&T, and Industrial Automation. Organic orders rose 16%, while ending backlog increased 9%.
“Our results this quarter have demonstrated the strength of the new Honeywell Technologies portfolio,” Kapur said.
Second-Quarter Results Top Expectations Boarding Passes Now Being Issued for the Ultimate eVTOL ArbitrageChief Financial Officer Mike Stepniak said total sales grew 4% organically in the second quarter. Building Automation led the company’s growth with a 9% organic sales increase, supported by double-digit growth in products and continued strength in solutions. Stepniak said the segment saw double-digit growth in both fire and services, with regional strength led by Asia Pacific, the Middle East and the Americas.
Industrial Automation sales rose 4%, exceeding expectations, with strength in solutions and continued momentum in sensing and industrial measurement. Excluding planned divestitures, the core Industrial Automation business grew 2% organically.
Process Automation and Technology sales declined 1% organically, but Stepniak said the result was materially ahead of Honeywell’s prior outlook. Projects grew 5%, driven by gas, LNG and petrochemicals, while aftermarket sales declined 6% due largely to a tough comparison with a large catalyst shipment in the second quarter of 2025.
Segment profit increased 9%, and segment margin expanded 100 basis points to 19%. Building Automation margin rose 90 basis points to 27.1%, while Industrial Automation margin increased 90 basis points to 17.2%. PA&T margin contracted 180 basis points to 22.1% because of unfavorable mix from lower catalyst volumes, though Stepniak said that was also ahead of the company’s original margin outlook.
Adjusted earnings per share were $1.95, up 10% from the prior year. Stepniak said the increase was primarily driven by higher segment profit, lower net interest expense tied to debt paydown and a lower share count, partially offset by higher repositioning costs and a $0.16 headwind from a higher adjusted effective tax rate.
Honeywell Raises 2026 Guidance Honeywell raised its full-year organic sales growth outlook to 3% to 4%, up from previous guidance of 2% to 3%. The company now expects second-half organic growth of 4% to 6%, compared with its prior outlook of 3% to 5%.
Stepniak said Building Automation is expected to deliver mid-single-digit-plus organic growth, supported by strong orders in focus verticals including healthcare, hospitality and data centers. PA&T is expected to accelerate to high-single-digit growth in the second half as global energy projects resume, backlog conversion improves and catalyst shipment volumes rise significantly. Industrial Automation is also expected to grow in the second half, supported by short-cycle demand for industrial measurement and sensing, continued growth in Europe and China, and strengthening demand in the Americas.
The company also raised its full-year segment margin expansion outlook to 250 to 290 basis points, up 25 basis points at the midpoint. Stepniak said the improvement reflects second-quarter outperformance, progress on stranded cost elimination and accretion related to the accelerated timing of divestitures.
Honeywell now expects full-year adjusted EPS of $8.20 at the midpoint, up from $8.10 previously and approximately 27% higher than the prior year. The company maintained its expectation for roughly $2 billion of free cash flow in 2026, with most of that expected in the second half and an approximately 95% conversion rate.
Portfolio Transformation Advances Kapur said Honeywell completed the separation of Honeywell Aerospace and supported Quantinuum’s successful initial public offering in June. Honeywell retains a 47% ownership stake in Quantinuum, and Kapur said the company expects to provide more color on its plans for that stake by early next year.
The company also closed its acquisition of Johnson Matthey’s Catalyst Technologies business on July 17. Kapur said the business will become part of the PA&T segment and will expand Honeywell UOP’s capabilities across refining, petrochemicals and renewable fuels. He said the acquisition adds a differentiated technology portfolio and expands Honeywell’s installed base.
In response to an analyst question, Kapur said Honeywell acquired the business for commercial synergies, though the company is not counting those in the early stages. Stepniak added that Honeywell believes it acquired the business “at the bottom” and said second-half catalyst activity looks stronger, including within Honeywell’s own catalyst business.
Honeywell also expects to close divestitures of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses by early August, about two months ahead of its initial planning assumption. Kapur said the accelerated timing reduced 2026 revenue expectations by about $400 million but should sharpen focus and simplify the Industrial Automation portfolio.
Orders Strength and End-Market Trends Kapur highlighted broad-based order momentum across the company. PA&T orders rose 24% organically, with process technology orders up roughly 50%, producing a book-to-bill ratio above 1.2 for the segment. Total company book-to-bill was 1.1.
Building Automation orders were supported by high-growth verticals, where Kapur said orders rose more than 50% and organic sales grew 30%. The fire business also posted approximately 30% orders growth. In Industrial Automation, orders in the remaining core business after divestitures rose 11%, or 7% sequentially, while sensing and industrial measurement orders increased more than 20%.
On the Middle East, Kapur said Honeywell is assuming current conditions persist without a significant escalation or further supply chain disruption. He said the company experienced some revenue loss in the first and second quarters and modest collection issues in pockets, but no major disputes. Stepniak said most of the collection issues occurred in March and April and have started to normalize.
Asked about data centers, Kapur said Honeywell sees opportunities beyond fire, security and building management systems. He cited growth outside the U.S., on-site power generation that could involve Process Automation, and longer-term opportunities in liquid cooling sensors.
Long-Term Targets Reaffirmed Kapur said Honeywell’s strategy is centered on growing its installed base and monetizing it through software, services and outcome-based solutions. He said the company is increasing exposure to higher-growth verticals such as data centers, LNG, grid infrastructure and life sciences.
The company reiterated long-term goals discussed at its June Investor Day, including adjusted EPS of approximately $12, more than 10% annual adjusted EPS growth and free cash flow conversion above 90%. Kapur said margin expansion is expected to come from stranded cost removal, portfolio actions, an aerospace trademark agreement, price, mix, new product introductions and productivity.
“We are pleased with Honeywell Technologies’ second quarter results, which enabled us to increase our 2026 outlooks across all key metrics,” Kapur said. “Today is only the beginning of that journey.”
About Honeywell International (NASDAQ:HON)Honeywell International Inc is a diversified, publicly traded multinational conglomerate NASDAQ: HON that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.
Honeywell's aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.
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Honeywell International Inc. (HON - Free Report) reported $5.19 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 49.9%. EPS of $1.95 for the same period compares to $5.50 a year ago.
The reported revenue represents a surprise of +4.19% over the Zacks Consensus Estimate of $4.98 billion. With the consensus EPS estimate being $1.80, the EPS surprise was +8.33%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Honeywell International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Industrial Automation: $1.5 billion compared to the $1.45 billion average estimate based on two analysts. The reported number represents a change of -36.9% year over year.Segment Profit- Industrial Automation: $258 million versus $249.84 million estimated by two analysts on average.Segment Profit- Corporate and All Other: $-57 million compared to the $-125 million average estimate based on two analysts.Segment Profit- Building Automation: $542 million compared to the $526.58 million average estimate based on two analysts.Segment Profit- Aerospace Technologies: $1.13 billion versus $1.17 billion estimated by two analysts on average.View all Key Company Metrics for Honeywell International here>>>
Shares of Honeywell International have returned -48.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
Union Pacific (UNP - Free Report) came out with quarterly earnings of $3.41 per share, beating the Zacks Consensus Estimate of $3.2 per share. This compares to earnings of $3.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.56%. A quarter ago, it was expected that this railroad would post earnings of $2.85 per share when it actually produced earnings of $2.93, delivering a surprise of +2.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Union Pacific, which belongs to the Zacks Transportation - Rail industry, posted revenues of $6.86 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.18%. This compares to year-ago revenues of $6.15 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Union Pacific shares have added about 26.5% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Union Pacific?While Union Pacific has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Union Pacific was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.32 on $6.73 billion in revenues for the coming quarter and $12.62 on $26.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Canadian National (CNI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 24.
This railroad is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of +3%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level.
Canadian National's revenues are expected to be $3.26 billion, up 5.5% from the year-ago quarter.
Union Pacific (UNP - Free Report) reported $6.86 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 11.5%. EPS of $3.41 for the same period compares to $3.03 a year ago.
The reported revenue represents a surprise of +3.18% over the Zacks Consensus Estimate of $6.65 billion. With the consensus EPS estimate being $3.20, the EPS surprise was +6.56%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Union Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Ratio: 59.7% versus the three-analyst average estimate of 59.4%.Revenue Ton-Miles: 109.95 billion versus 110.05 billion estimated by two analysts on average.Revenue Carloads - Total: 2.16 million compared to the 2.16 million average estimate based on two analysts.Revenue Carloads - Industrial Products: 586 thousand compared to the 588.92 thousand average estimate based on two analysts.Average revenue per car: $3,014.00 versus $2,967.10 estimated by two analysts on average.Average revenue per car - Industrial Products: $4,075.00 versus the two-analyst average estimate of $4,135.32.Revenue Carloads - Premium: 1.06 million compared to the 1.06 million average estimate based on two analysts.Freight Revenues- Premium: $2.09 billion versus $1.95 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +20.8% change.Freight Revenues- Bulk: $2.04 billion compared to the $2.04 billion average estimate based on two analysts. The reported number represents a change of +7.5% year over year.Operating Revenues- Other revenues: $346 million versus $306.03 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Freight Revenues- Industrial Products: $2.39 billion versus the two-analyst average estimate of $2.44 billion. The reported number represents a year-over-year change of +7.9%.Operating Revenues- Freight revenues: $6.52 billion versus the two-analyst average estimate of $6.42 billion. The reported number represents a year-over-year change of +11.6%.View all Key Company Metrics for Union Pacific here>>>
Shares of Union Pacific have returned +12.5% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways RTX topped Q2 EPS and revenue estimates as commercial aftermarket and defense demand fueled growth.RTX secured $43B in new awards, lifting backlog 22% to $289B with strong commercial and defense orders.RTX raised 2026 sales, organic growth, adjusted EPS and free cash flow guidance after strong Q2 results. RTX Corporation’s (RTX - Free Report) second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
RTX’s Total RevenuesRevenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Backlog climbed 22% to $289 billion.
RTX Corporation Price, Consensus and EPS SurpriseRTX Benefits From Broad-Based Organic GrowthOrganic sales advanced 16% in the quarter. Commercial aftermarket revenues increased 18%, while defense sales grew 16%, excluding acquisitions, divestitures and foreign-currency effects. Commercial original equipment sales were up 9%.
The company secured $43 billion of new awards during the quarter, including nearly $20 billion at Raytheon. The total backlog comprised $170 billion of commercial orders and $119 billion of defense orders, providing strong visibility into future production requirements.
RTX’s Operational PerformanceTotal costs and expenses increased 12.8% year over year to $21.96 billion. Cost of sales rose to $19.58 billion from $17.21 billion, while selling, general and administrative expenses increased to $1.66 billion from $1.57 billion.
Adjusted segment operating profit advanced 18%, with consolidated adjusted segment margin expanding 40 basis points to 12.4%. Reported operating profit rose to $2.81 billion from $2.15 billion, while the reported operating margin improved to 11.4% from 9.9%.
RTX’s Segmental PerformanceCollins Aerospace generated sales of $8.21 billion, up 8% year over year and 13% organically. Commercial original equipment sales increased 26%, commercial aftermarket revenues rose 10%, and defense sales improved 7%.
Pratt & Whitney’s sales rose 16% to $8.89 billion, with organic growth of 17%. Commercial aftermarket sales jumped 25%, and military revenues increased 23%. Commercial original equipment sales declined 8% due to large commercial engine mix.
Raytheon recorded sales of $8.27 billion, up 18% year over year. The growth reflected higher volumes across land and air defense systems, naval programs, and air and space defense systems, including Patriot, Standard Missile and AMRAAM programs.
RTX’s Financial UpdateRTX had cash and cash equivalents of $8.31 billion as of June 30, 2026, compared with $7.44 billion as of Dec. 31, 2025.
The long-term debt totaled $31.86 billion as of June 30, 2026, compared with $34.29 billion as of Dec. 31, 2025.
Operating cash flow totaled $3.55 billion compared with $458 million in the prior-year quarter. Capital expenditures were $669 million, resulting in free cash flow of $2.88 billion versus negative $72 million a year earlier.
RTX Raises Its 2026 Financial OutlookRTX raised its 2026 adjusted sales guidance to $95-$96 billion from $92.5-$93.5 billion. The company now expects organic sales growth of 8-9% compared with its prior projection of 5-6%.
Adjusted earnings are projected to be between $7.10 and $7.25 per share, up from $6.70-$6.90. Free cash flow is expected to be in the range of $8.50-$8.75 billion compared with the previous forecast of $8.25-$8.75 billion.
RTX’s Zacks RankThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense ReleasesTextron (TXT - Free Report) is slated to report second-quarter results on July 28, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.52 per share, indicating a year-over-year decline of 1.9%.
TXT’s long-term (three to five years) earnings growth rate is 10.14%. The Zacks Consensus Estimate for second-quarter sales is pinned at $3.82 billion, indicating year-over-year growth of 2.8%.
General Dynamics (GD - Free Report) is slated to report second-quarter results on July 29, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.95 per share, which indicates a year-over-year increase of 5.6%.
GD’s long-term earnings growth rate is 9.97%. The Zacks Consensus Estimate for second-quarter sales is pegged at $13.49 billion, which indicates a year-over-year increase of 3.4%.
L3Harris Technologies (LHX - Free Report) is slated to report second-quarter results on July 29, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.80 per share.
LHX’s long-term earnings growth rate is 17.11%. The Zacks Consensus Estimate for second-quarter sales is pinned at $5.79 billion, indicating year-over-year growth of 6.8%.
RTX Corp (NYSE:RTX, XETRA:5UR) shares rose about 8% in early trading Thursday after the aerospace and defense company reported better-than-expected second quarter results and raised its full-year 2026 outlook.
The company reported adjusted earnings per share of $1.89 on revenue of $24.7 billion for the quarter, ahead of analyst expectations for adjusted EPS of $1.66 on revenue of $22.88 billion, according to consensus estimates.
Adjusted EPS increased 21% from the prior-year period, while sales rose 14% year over year and 16% organically.
Following the strong quarter, RTX raised its full-year 2026 adjusted earnings outlook to a range of $7.10 to $7.25 per share, up from its previous forecast of $6.70 to $6.90 per share.
The company also increased its adjusted sales guidance to $95 billion to $96 billion, compared with its prior outlook of $92.5 billion to $93.5 billion, and raised its organic sales growth forecast to 8% to 9% from 5% to 6%.
The company now expects full-year free cash flow of $8.50 billion to $8.75 billion, compared with its previous guidance of $8.25 billion to $8.75 billion.
RTX reported second quarter operating cash flow of $3.5 billion and free cash flow of $2.9 billion.
The company’s backlog reached $289 billion at the end of the quarter, including $170 billion in commercial orders and $119 billion in defense.
“RTX delivered very strong second quarter results with 16% organic sales growth, including double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow,” RTX CEO Chris Calio said in a statement.
“Demand remains robust, and our backlog is up 22% year over year.”
Calio added that the company was raising its full-year outlook based on its first-half performance and backlog, highlighting its focus on executing its order book, expanding capacity and introducing new technologies.
The company also announced an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million.
For the quarter ended June 2026, RTX (RTX - Free Report) reported revenue of $24.71 billion, up 14.5% over the same period last year. EPS came in at $1.89, compared to $1.56 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $22.83 billion, representing a surprise of +8.21%. The company delivered an EPS surprise of +13.86%, with the consensus EPS estimate being $1.66.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how RTX performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Adjusted Net Sales- Collins Aerospace: $8.21 billion compared to the $7.83 billion average estimate based on two analysts. The reported number represents a change of +7.7% year over year.Net Sales- Raytheon: $8.27 billion compared to the $7.54 billion average estimate based on two analysts. The reported number represents a change of +18.1% year over year.Adjusted Net Sales- Pratt & Whitney: $8.89 billion compared to the $8.16 billion average estimate based on two analysts. The reported number represents a change of +16.5% year over year.Adjusted Net Sales- Eliminations & Other: $-660 million versus the two-analyst average estimate of $-704.36 million. The reported number represents a year-over-year change of -1.9%.Net Sales- Eliminations and other: $-660 million compared to the $-704.36 million average estimate based on two analysts. The reported number represents a change of -1.9% year over year.Operating Profit- Collins Aerospace- Adjusted: $1.37 billion versus $1.32 billion estimated by two analysts on average.Operating Profit- Raytheon- Adjusted: $1.04 billion versus the two-analyst average estimate of $895.79 million.Operating Profit- Pratt & Whitney- Adjusted: $740 million compared to the $700.71 million average estimate based on two analysts.Operating Profit- Corporate expenses and other unallocated items- Adjusted: $7 million versus the two-analyst average estimate of $-64.75 million.Operating Profit- Eliminations and Other- Adjusted: $28 million versus $-21.25 million estimated by two analysts on average.View all Key Company Metrics for RTX here>>>
Shares of RTX have returned +5.3% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
ServiceNow Inc (NYSE:NOW, XETRA:4S0) forecast third-quarter results above Wall Street expectations and posted second-quarter earnings that beat analyst estimates.
The company reported second-quarter subscription revenue of $3.88 billion, up 24.5% from a year earlier, while total revenue reached $3.99 billion, ahead of analyst estimates of $3.92 billion.
Adjusted earnings per share came in at $0.90, topping estimates of $0.86.
Current remaining performance obligations (cRPO), a closely watched bookings metric, rose 21% year-over-year to $13.20 billion, above estimates of roughly $13.03 billion.
For the third quarter, ServiceNow guided subscription revenue of $3.975 billion to $3.98 billion and cRPO growth of 19.5% year-over-year, ahead of analyst estimates of 18% to 19% growth.
The company raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion, representing growth of 22.5% year-over-year. It maintained its outlook for subscription gross margin of 81%, operating margin of 31.5% and free cash flow margin of 35%.
ServiceNow said its artificial intelligence business surpassed $1 billion in annual contract value during the quarter, as the company continues to expand its AI product offerings.
The company also reported 658 customers with more than $5 million in annual contract value, up 23% from a year earlier, and 123 transactions exceeding $1 million in annual contract value, up about 40%.
Adjusted operating margin was 29.5%, above estimates of 26.5% and flat year-over-year. Free cash flow totaled $634 million, a 16% margin, below estimates of $679 million.
Shares fluctuated around the flatline on Thursday, adding a modest 0.5% to its opening levels.
Key Takeaways ServiceNow beat Q2 earnings and revenue estimates and raised its fiscal 2026 subscription revenue outlook.NOW's AI business topped $1B in ACV as enterprise adoption and agentic AI deployments accelerated.ServiceNow reported 98% renewal rates, rising cRPO, and strong large-customer and AI product momentum. ServiceNow (NOW - Free Report) reported impressive second-quarter fiscal 2026 results, surpassing Wall Street expectations on both the top and bottom lines as accelerating adoption of its AI platform, robust enterprise demand, and continued execution across its workflow portfolio fueled another quarter of strong growth.
The company reported non-GAAP earnings of 90 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 4.7%. Revenues totaled $3.99 billion, exceeding the consensus estimate of $3.92 billion.
Subscription revenues, ServiceNow's largest business, climbed 24.5% year over year to $3.88 billion, while current remaining performance obligations (cRPO) rose 21% to $13.2 billion, reflecting continued customer demand and longer contract durations. Remaining performance obligations reached $29 billion, up 21% from the prior-year period.
Management highlighted that the company exceeded the high end of its guidance across every major top-line and profitability metric. Chairman and CEO Bill McDermott noted that ServiceNow AI surpassed $1 billion in annual contract value (ACV) during the quarter, while agentic AI deployments increased ninefold over the past nine months. He emphasized that enterprises increasingly view ServiceNow's AI Control Tower as the governance layer required to securely deploy AI across organizations.
President and CFO Gina Mastantuono said AI demand continued to outperform internal expectations, with net new AI ACV accelerating sequentially and customers increasingly adopting multiple AI products simultaneously. The company also reported a best-in-class renewal rate of 98%, ended the quarter with 658 customers generating more than $5 million in ACV, and recorded 123 transactions exceeding $1 million in net new ACV, representing nearly 40% year-over-year growth.
AI Platform Driving Enterprise ExpansionManagement devoted much of the earnings call to highlighting the growing strategic importance of the company's AI platform.
During the quarter, ServiceNow launched Otto, a unified AI experience integrating Now Assist, Moveworks, and AI Experience. The company also expanded AI Control Tower with enhanced governance, security, and observability capabilities while introducing new autonomous AI specialists across IT, CRM, employee services and security.
Executives stressed that enterprises are moving beyond AI experimentation toward measurable business outcomes. According to management, customers increasingly favor deterministic AI capable of completing work rather than simply providing recommendations.
The company also pointed to strong momentum across cybersecurity, where AI Control Tower, Armis, and Veza are expanding ServiceNow's security portfolio. McDermott described cybersecurity as one of the company's fastest-growing businesses and a significant long-term growth opportunity.
Beyond AI, ServiceNow strengthened partnerships with NVIDIA, Microsoft, AWS, Accenture, Experian, Lenovo, FedEx, and TeamViewer while outlining ambitious long-term financial targets during its Financial Analyst Day, including more than $30 billion in subscription revenues and a Rule of 60+ by 2030.
Guidance Raised Following Strong QuarterEncouraged by stronger-than-expected net new ACV generation, ServiceNow raised its full-year subscription revenue outlook.
For the third quarter of fiscal 2026, the company expects subscription revenues to be between $3.975 billion and $3.980 billion, representing approximately 20% constant currency growth, with cRPO growth of roughly 20%.
For fiscal 2026, ServiceNow now projects subscription revenues of $15.76 billion to $15.78 billion, implying approximately 21% constant currency growth. Management expects subscription gross margin of 81%, operating margin of 31.5%, and free cash flow margin of 35%.
Executives acknowledged that stronger U.S. federal demand accelerated some on-premise subscription revenues into the second quarter, but emphasized that underlying net new ACV strength, not timing alone, supported the higher full-year guidance.
Management CommentaryDuring the question-and-answer session, executives expressed confidence that AI adoption remains in its early stages.
Management highlighted that more than 40 customers are already deploying its Level 1 AI specialists, with some organizations automating 80-85% of service requests while reducing resolution times from days to approximately 20 minutes. The company also indicated that first-time buyers of ServiceNow's agentic AI products increased more than 45% year over year, reinforcing expectations that AI will account for 30% of ACV by 2030.
Executives further emphasized that ServiceNow's hybrid AI pricing model, combining licensing and usage-based elements, continues to resonate with enterprise customers while supporting pricing uplifts consistent with previously communicated targets.
Zacks Rank & Style ScoresServiceNow currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of D, a Growth Score of B, a Momentum Score of A, and a VGM Score of B.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Intuit Inc. ("Intuit" or the "Company") (NASDAQ: INTU) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-07086, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Intuit securities during the Class Period, you have until September 8, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Intuit provides financial management, payments and capital, compliance, and marketing products and services in the United States. The Company has four reportable business segments: (i) Global Business Solutions; (ii) Consumer; (iii) Credit Karma; and (iv) ProTax. Intuit's Consumer segment provides do-it-yourself ("DIY") and assisted income tax preparation products and services under the "TurboTax" brand name, whereas its ProTax segment provides tax-preparation software products and electronic tax filing, payment, and related products and services. The Company sells its products and services through direct sales channels, multichannel shop-and-buy experiences, mobile application stores, and partner and other channels.
At all relevant times, Defendants touted purportedly significant "momentum" across Intuit's various business segments, particularly with respect to its tax-related business. Defendants attributed this purported "momentum" to, inter alia, Intuit's purportedly significant competitive advantages, including integration of artificial intelligence ("AI") in its business and operations.
For example, in August 2025, Defendants provided financial guidance for Intuit's fiscal full year ("FY") of 2026, ended July 31, 2026, including 8% revenue growth in its TurboTax business, citing "outstanding execution across our platform" and "breakthrough adoption in assisted tax" as a result of the aforementioned purported competitive advantages.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; (ii) in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; (iii) accordingly, Intuit's previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The truth began to emerge on May 20, 2026, when, during pre-market hours, Reuters published an article entitled "Intuit to cut 17% of global jobs to streamline operations, memo shows". Citing an internal Company memorandum and email from Defendant Sasan K. Goodarzi ("Goodarzi"), Intuit's Chairman and Chief Executive Officer, to staff earlier in the day, the article reported that "Intuit . . . is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts[.]" The article further revealed that Intuit "is also winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams in key hubs, according to the memo."
On this news, Intuit's stock price fell $15.78 per share, or 3.95%, to close at $383.93 per share on May 20, 2026.
The same day, during post-market hours, Intuit issued a press release announcing its fiscal third quarter ("Q3") 2026 results. Therein, Defendants reported weak Q3 2026 tax season revenue, including, inter alia, TurboTax revenue that grew by only 7% year-over-year, versus consensus estimates of at least 8% revenue growth. During the accompanying earnings call held the same day, also during post-market hours, Defendant Sandeep S. Aujla, Intuit's Executive Vice President and Chief Financial Officer, acknowledged that, with respect to TurboTax, "we did not have the overall tax season we expected[.]" On the same call, Defendant Goodarzi likewise stated that he was "dissatisfied with our performance", noting "[w]e faced pressure among the most price-sensitive DIY filers earning less than $50,000 a year", and that "[w]e lost on price." Defendant Goodarzi also revealed that TurboTax online paying units were expected to grow by only 2% as total Internal Revenue Service filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season." Accordingly, Defendant Goodarzi acknowledged that "we expect TurboTax to grow 7% for the full year"—down from Defendants' prior guidance of 8% growth—and that, "[t]o reaccelerate this part of our business," Defendants will need to "evolve our business model by delivering the right lineups and price points to meet simple filers' needs at the low end and lean into the power of our broader Consumer platform to monetize beyond tax."
Following these disclosures, Intuit's stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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Alert: Claims Focus on Alleged Misrepresentations About Intuit's TurboTax Growth and Revenue Outlook
, /PRNewswire/ -- SueWallSt reminds purchasers of Intuit Inc. (NASDAQ: INTU) securities of a pending securities class action. THE CASE: A class action seeks to recover damages for investors who purchased INTU securities between August 22, 2025 and May 20, 2026. YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. See if you could be eligible to recover or contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
When the Company disclosed a workforce reduction of approximately 3,000 employees, reported weaker-than-expected TurboTax results, and reduced its full-year TurboTax revenue growth outlook to approximately 7% from prior expectations of 8%, INTU shares declined 20.02%, a drop of $76.86 per share, closing at $307.07. Investors have until September 8, 2026 to seek lead plaintiff status.
The Announced Workforce Reduction Affecting Approximately 3,000 Employees
Intuit's Consumer segment generates revenue primarily through its TurboTax do-it-yourself and assisted tax preparation products. The complaint recounts that on May 20, 2026, Reuters reported the Company was laying off about 17% of its global workforce and winding down its Reno and Woodland Hills offices to "streamline operations." That pre-market disclosure preceded a Q3 2026 report showing TurboTax revenue grew by only 7% year-over-year, missing consensus estimates.
As detailed in the action, management later conceded pressure "among the most price-sensitive DIY filers earning less than $50,000 a year" and acknowledged that the Company "lost on price."
TurboTax Revenue Trends and Price-Sensitive Filers
The complaint chronicles that TurboTax online paying units were expected to grow by only 2%, while total IRS filers were projected to decline by approximately 30 basis points, described as the "most significant industry-wide contraction since the post-COVID tax season." The lawsuit contends that the Company was allegedly losing significant business in its tax-related segment due to increasing competitive and pricing pressures that were not disclosed to investors during the Class Period.
Alleged Revenue Impact by the Numbers
TurboTax full-year revenue growth guidance reduced from 8% to 7% TurboTax online paying units expected to grow by only 2% IRS filers projected to contract by approximately 30 basis points Approximately 17% workforce reduction, or about 3,000 employees Offices in Reno and Woodland Hills wound down as part of restructuring Single-day stock decline of 20.02%, or $76.86 per share, to close at $307.07 "The complaint raises serious questions about whether investors received adequate information regarding pricing and competitive pressures affecting Intuit's core tax preparation business." -- Joseph E. Levi, Esq.
Calculate your potential recovery or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the INTU Lawsuit
Q: What is the INTU class action lawsuit about? A: A securities class action has been filed against Intuit Inc. (NASDAQ: INTU) alleging materially false and misleading statements between August 22, 2025 and May 20, 2026. Shares fell approximately 20.02% after the Company disclosed a 17% workforce reduction and reduced TurboTax revenue growth guidance. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: How much did INTU stock drop? A: Shares fell approximately 20.02%, a decline of $76.86 per share, after the Company disclosed weak Q3 2026 tax season results and a reduction in TurboTax revenue growth guidance. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.
Q: What court was the INTU class action filed in? A: The case was filed in the United States District Court for the Northern District of California, governed by the Private Securities Litigation Reform Act of 1995.
Q: What do INTU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What if I already sold my INTU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (888) SueWallSt\
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Intuit Inc. (NASDAQ: INTU) securities between August 22, 2025 and May 20, 2026. Intuit provides financial management, payments and capital, compliance, and marketing products and services in the U.S.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
What is the class period? August 22, 2025 – May 20, 2026
What are the allegations?
Shareholders allege that Inuit Inc. misled investors regarding the Company's sustainability and growth.
According to the complaint, during the class period, defendants failed to disclose to investors that:
they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; in reality, Intuit was losing significant business in its tax-related business, particularly in its Turbo Tax business, because of, inter alia, increasing competitive and pricing pressures; and accordingly, Intuit's previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic. Plaintiff alleges that the truth began to emerge on May 20, 2026, when Reuters published an article entitled "Intuit to cut 17% of global jobs to streamline operations, memo shows". Citing an internal Company memorandum and email from defendant Sasan K. Goodarzi, Intuit's Chairman and Chief Executive Officer, to staff earlier in the day, the article reported that "Intuit . . . is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts[.]" The article further revealed that Intuit "is also winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams in key hubs, according to the memo." On this news, Intuit's stock price fell $15.78 per share, or 3.95%, to close at $383.93 per share on May 20, 2026.
The same day, during post-market hours, Intuit announced disappointing fiscal third quarter 2026 results. Following the news, Intuit's stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
What Now: You may be eligible to participate in the class action against Intuit Inc. Shareholders who wish to serve as lead plaintiff for the class must submit their papers to the court by September 8, 2026. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, Robbins LLP has helped restore more than $1 billion in value to shareholders, secured some of the largest recoveries in shareholder derivative litigation history, and achieved governance reforms at over 400 Fortune 1000 companies.
"Behind everything we do is the belief that companies should be governed responsibly, fiduciaries should be held accountable, and shareholders deserve transparency and fairness," said Brian J. Robbins, Founding Partner of Robbins LLP.
To be notified if a class action against Intuit Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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Did you buy INTU securities between August 22, 2025 and May 20, 2026?
Affected INTU Investor Summary
Who: Intuit Inc. (NASDAQ: INTU) What: Securities fraud class action lawsuit filed Class Period: August 22, 2025 through May 20, 2026 Deadline to Seek Lead Plaintiff Status: September 9, 2026 Key Lawsuit Allegations: Material misstatements and/or omissions concerning the strength of the company's tax-related business. Investor Action: Contact Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) for recovery options , /PRNewswire/ -- Kessler Topaz Meltzer & Check, LLP (www.ktmc.com), a nationally recognized securities litigation law firm, informs investors that a securities fraud class action lawsuit has been filed against Intuit Inc. (Intuit) (NASDAQ: INTU) on behalf of those who purchased or acquired Intuit securities between August 22, 2025 and May 20, 2026, inclusive. The lawsuit is filed in the United States District Court for the Northern District of California and is captioned Baldwin v. Intuit Inc., No. 3:26-cv-07086 (N.D. Cal.). Investors have until September 9, 2026, to file for lead plaintiff status.
CONTACT KTMC TO DISCUSS YOUR LEGAL RIGHTS:
If you purchased or acquired Intuit Inc. securities and have lost money on your investment, please provide your information here: https://www.ktmc.com/intu-intuit-inc-class-action-lawsuit?utm_source=PR_Newswire&utm_medium=pressrelease&utm_campaign=intu&mktm=PR
You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at [email protected]. There is no cost or obligation to speak with an attorney.
INTUIT INC. CLASS ACTION LAWSUIT - COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, and/or failed to disclose material adverse facts about the company's business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Intuit overstated its competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; (2) Intuit was losing significant business in its tax-related business, particularly in its Turbo Tax business, as a result of, increasing competitive and pricing pressures; (3) Intuit's previously issued full year 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and (4) as a result, Defendants' statements about the company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Why did Intuit's Stock Drop?
On May 20, 2026, before the market opened, Reuters reported Intuit was laying off about 17% of its global workforce, or about 3,000 employees worldwide, to streamline operations, and was winding down its Reno and Woodland Hills offices as part of a strategic restructuring. On this news, the price of Intuit common stock declined $15.78 per share, or approximately 3.9%, from a close of $399.71 per share on May 19, 2026, to close at $383.93 per share on May 20, 2026.
On May 20, 2026, after the market closed, Intuit announced its third quarter fiscal year 2026 financial results and revealed revenue growth of only 7% year-over-year, versus consensus estimates of at least 8%. During the corresponding earnings call, Intuit acknowledged that TurboTax did not have "the overall tax season we expected" and that TurboTax online paying units were expected to grow by only 2% as total Internal Revenue Service filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season." On this news, the price of Intuit common stock declined $76.86 per share, or approximately 20%, from a close of $383.93 per share on May 20, 2026, to close at $307.07 per share on May 21, 2026.
WHAT INTUIT INC. INVESTORS CAN DO NOW:
File to be lead plaintiff by September 9, 2026. Contact KTMC for a free case evaluation. All representation is on a contingency fee basis, there is no cost to you. Retain counsel of choice or take no action. THE LEAD PLAINTIFF PROCESS FOR INTUIT INC. INVESTORS:
Intuit investors may, no later than September 9, 2026, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP encourages Intuit investors to contact the firm for more information.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP (KTMC):
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including being recognized in Chambers & Partners USA 2026 as a Band 1 Top Firm in Securities and Class Actions, Legal 500's Tier 1 Rankings for Securities and M&A Litigation, The National Law Journal's Plaintiff's Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group's Honor Roll of Most Feared Law Firms, The Legal Intelligencer's Class Action Firm of the Year, Lawdragon's Leading Plaintiff Financial Lawyers, and Law360's Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent. The complaint in this matter was not filed by KTMC.
CONTACT:
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
[email protected]
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
New York, New York--(Newsfile Corp. - July 23, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Intuit Inc. (NASDAQ: INTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/INTU.
Intuit Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:
they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; accordingly, Intuit's previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for Intuit Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/INTU, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Intuit you have until September 8, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Intuit Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Intuit Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304944
Source: Bronstein, Gewirtz & Grossman, LLC
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Two of America’s top war stocks – Lockheed Martin (NYSE: LMT) and RTX Corporation (NYSE: RTX) – enjoyed a particularly strong market open on Thursday, July 23.
Specifically, LMT shares soared more than 9% as the regular session started to their press-time price of $567.76, while RTX saw a slightly smaller, 7% rally to $208.33.
RTX and LMT stock rallies following latest earnings. Source: Google The moves offered a reprieve to the defense companies following a sharp drop they suffered earlier in 2026 after a ceasefire between the U.S. and Iran was announced and came as a result of the firm’s latest earnings.
Lockheed Martin now expects up to $81.75 billion in sales on strong missile growth To begin with, Lockheed Martin announced its revenue soared 11% compared to the same period in the previous year and hit $20.1 billion, while earnings per share (EPS) proved even more impressive at $7.94.
For comparison, in the second quarter (Q2) of 2025, the figure stood at $1.46.
Guidance – which was, much like the Q2 results – was partially bolstered by strong growth in missile-related orders and was lifted to between $79.75 billion and $81.75 billion for sales, and to an EPS between $29.95 and $30.65 for the whole year.
Previously, the ranges stood at $77.5 billion to $80 billion and $29.35 to $30.25, respectively.
RTX calls for $96 billion in sales after YoY rise of 14.5% Elsewhere, RTX’s results were just as impressive. The corporation’s revenue soared 14.5% year-over-year (YoY) to $24.7 billion, and EPS rose 21.2% to $1.89, signalling the firm managed a double beat.
Indeed, analysts were forecasting that the defense giant would hit $22.9 billion in sales and an EPS of $1.66.
RTX also gladdened shareholders with full-year outlook upgrades. Specifically, the company now expects its revenue to come in the range between $95 billion and $96 billion, and EPS between $7.10 and $7.25.
Previously, RTX called for $92.5 billion to $93.5 billion in sales, and an EPS somewhere between $6.70 and $6.90.
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U.S. stocks were lower, with the Dow Jones index dipping around 450 points on Thursday.
Lockheed Martin reported quarterly earnings of $7.94 per share which beat the analyst consensus estimate of $7.09 per share. The company reported quarterly sales of $20.063 billion which beat the analyst consensus estimate of $19.344 billion.
Lockheed Martin shares jumped 11.4% to $573.21 on Thursday.
Here are some other big stocks recording gains in today’s session.
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Lockheed Martin (LMT - Free Report) reported $20.06 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 10.5%. EPS of $7.94 for the same period compares to $7.29 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $19.43 billion, representing a surprise of +3.26%. The company delivered an EPS surprise of +9.97%, with the consensus EPS estimate being $7.22.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Lockheed performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sales- Aeronautics: $8.11 billion compared to the $7.66 billion average estimate based on three analysts. The reported number represents a change of +9.3% year over year.Sales- Rotary and Mission Systems: $4.35 billion versus the three-analyst average estimate of $4.39 billion. The reported number represents a year-over-year change of +9%.Sales- Missiles and Fire Control: $4.1 billion compared to the $4.03 billion average estimate based on three analysts. The reported number represents a change of +19.5% year over year.Sales- Space: $3.5 billion versus the three-analyst average estimate of $3.45 billion. The reported number represents a year-over-year change of +5.7%.Operating profit (loss)- Aeronautics: $760 million versus the three-analyst average estimate of $723.83 million.Operating profit (loss)- Space: $371 million compared to the $345.8 million average estimate based on three analysts.Operating profit (loss)- Rotary and Mission Systems: $437 million compared to the $459.79 million average estimate based on three analysts.Operating profit (loss)- Missiles and Fire Control: $594 million versus the three-analyst average estimate of $559.2 million.View all Key Company Metrics for Lockheed here>>>
Shares of Lockheed have returned +4.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Defense primes are ripping higher Thursday morning even as the broader market sags. Lockheed Martin (NYSE:LMT | LMT Price Prediction) stock is up 10% to $567.71, while RTX (NYSE:RTX) shares are up 7% to $208.48. The S&P 500 is down 1.16%, making the divergence a standout story of today’s session.
The move follows beat-and-raise Q2 2026 results from both of these defense contractors, released before the open. Investors are treating the results as confirmation that global rearmament is still translating into record backlogs and rising cash flow.
Beat-and-Raise Quarters With Record Backlogs Lockheed Martin posted adjusted EPS of $7.94 on revenue of $20.1 billion, up 11% year over year, versus roughly $7.23 and $19.37 billion expected. The company booked $65 billion of new Q2 orders, including a multi-year $35 billion THAAD interceptor agreement with the Missile Defense Agency, taking backlog to a record $230 billion.
Management raised Lockheed Martin’s full-year 2026 guidance across the board, lifting EPS to $29.95 to $30.65, revenue to $79.75 billion to $81.75 billion, and free cash flow to $7 billion to $7.2 billion. Lockheed Martin CEO Jim Taiclet, in the company’s 8-K filing, cited a “higher trajectory for our business.” One nuance: the year-over-year profit swing benefits from easy comps, since the prior-year period absorbed about $1.6 billion in losses tied to a classified program and helicopter contracts.
Meanwhile, RTX’s report was even more striking on the top line. The company delivered adjusted EPS of $1.89 on revenue of $24.7 billion, up 16% organically, its fifth consecutive beat. The company’s backlog hit a record $289 billion ($170 billion commercial aerospace, $119 billion defense), with Q2 free cash flow of $2.9 billion.
Furthermore, RTX raised its full-year outlook to EPS of $7.10 to $7.25, revenue of $95 billion to $96 billion, and organic sales growth of 8% to 9% from 5% to 6%. CEO Chris Calio stated that “demand remains robust, and our backlog is up 22 percent year over year.” Patriot, Standard Missile, and AMRAAM volume drove the Raytheon segment, while Pratt & Whitney’s commercial aftermarket climbed 25%.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and RTX didn't make the cut. Grab the names FREE today.
Sector Strength Lifts Boeing and the Defense ETF The rally is spilling across aerospace and defense. Boeing (NYSE:BA) stock is unchanged at $209, which might not sound impressive but bear in mind that the stock market is down overall. Boeing didn’t report today, so the move reads as sympathy strength on broader aerospace sentiment rather than a company-specific catalyst.
The iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) is also trading higher with the group, giving investors a diversified way to play the theme. The fund holds Lockheed Martin, RTX, and Boeing, with RTX among its top weights. Investors should note the ETF’s single-sector concentration in a handful of large-cap names, though it’s not leveraged.
The rally comes on top of a strong year. Lockheed Martin stock has climbed 37% over the past 12 months, and RTX shares are up 35%. Both have run hard, and while the bull case rests on sustained defense budgets, program execution, and orderly conversion of backlog into cash, government budget dependence and fixed-price program risk remain real overhangs.
What to Watch Lockheed Martin’s earnings call took place at 8:30 a.m. ET, and RTX’s kicked off at 7:30 a.m. ET, so any color on munitions capacity and F-35 delivery cadence should filter through analyst notes by midday. Investors can watch for whether LMT stock and RTX shares hold their morning gains into the close and whether sell-side price targets follow the raised guidance higher.
Position sizing should stay measured given how much these names have already appreciated. With backlogs at records and guidance raised across both companies, the setup favors the bulls, but the easy money on the initial earnings pop may already be priced in.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and RTX didn't make the cut. Grab the names FREE today.
Key Takeaways Reliance beat Q2 estimates as record shipments and higher pricing lifted earnings and sales.Tons sold hit a record 1.79 million, while average selling price per ton rose 14.5% year over year.RS sees Q3 shipments up 9-11% year over year, with adjusted EPS of $6.40-$6.60. Reliance, Inc. (RS - Free Report) reported second-quarter 2026 adjusted earnings of $6.27 per share, up 41.5% year over year. The figure beat the Zacks Consensus Estimate of $5.38 by 16.5%, driven by higher shipments, improved gross profit per ton and contributions from the U.S. border wall project.
Net sales rose 26.5% to $4.63 billion and surpassed the consensus estimate of $4.17 billion by 10.9%. Tons sold increased 10.8% year over year to a quarterly record of 1.79 million, exceeding management’s projection of 1-3% growth. The figure surpassed our estimate of 1.7 million.
The average selling price per ton advanced 14.5% to $2,602. The average selling price per ton climbed 7.8% from the first quarter, topping the company’s forecast of 1.5-3.5% growth. Higher carbon steel and aluminum prices supported the increase. It was above our estimate of $2,479.
Reliance’s Segment UpdateDemand in non-residential construction, including infrastructure, improved year over year, supported by data centers, energy infrastructure and public projects. The company expects demand in this sector to continue to improve in the third quarter, supported by strong activity across data centers, energy infrastructure and public infrastructure.
Broader manufacturing demand strengthened on healthy activity in industrial machinery, shipbuilding, military, consumer products and construction machinery. Reliance expects the demand to remain healthy in the third quarter.
Aerospace demand improved from the second quarter. Reliance expects gradual commercial aerospace build-rate increases and robust defense and space activity. Reliance expects commercial aerospace demand to remain strong in the third quarter.
Automotive toll-processing demand also improved and is expected to remain steady at healthy levels. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.
Semiconductor demand increased meaningfully year over year, aided by growing data center activity. The company expects semiconductor-related demand to continue improving during the third quarter.
RS’ Financial PositionReliance ended June 30, 2026, with cash and cash equivalents of $235.4 million. Total outstanding debt was $1.7 billion, including $520 million drawn under the company’s $1.5 billion revolving credit facility.
Operating cash flow totaled $162.2 million in the quarter. Free cash flow was $68.8 million.
RS did not repurchase common shares during the second quarter. However, the company repurchased $234.2 million of stock during the first half of 2026. Roughly $529 million remained available under its share-repurchase authorization at quarter-end.
Reliance’s OutlookReliance expects third-quarter 2026 adjusted earnings of $6.40-$6.60 per share. The projection includes LIFO expense of $75 million, or $1.10 per share, and approximately 60 cents per share of earnings from the U.S. border wall project.
Excluding the project, tons sold are expected to decline 2-4% sequentially due to normal seasonality. Including an estimated 2% sequential contribution from the project, total shipments are projected to increase 9-11% year over year.
The average selling price per ton is expected to be flat to up 2% from the second quarter. Management anticipates generally healthy to improving demand and pricing, although trade-policy uncertainty, geopolitical conflict and potential supply constraints remain risks.
RS’ Stock Price PerformanceRS’ shares have gained 28.2% in the past year compared with the industry’s growth of 29%.
Image Source: Zacks Investment Research
RS’ Zacks Rank & Key PicksRS currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Broadcom Inc. (AVGO - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Broadcom Inc. is a member of our Computer and Technology group, which includes 612 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Broadcom Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AVGO's full-year earnings has moved 2.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that AVGO has returned about 14.7% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 13.2% on average. This shows that Broadcom Inc. is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Lenovo Group Ltd. (LNVGY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 161.5%.
The consensus estimate for Lenovo Group Ltd.'s current year EPS has increased 59.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Broadcom Inc. belongs to the Electronics - Semiconductors industry, a group that includes 50 individual stocks and currently sits at #55 in the Zacks Industry Rank. On average, stocks in this group have gained 35.3% this year, meaning that AVGO is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Lenovo Group Ltd. falls under the Computer - Micro Computers industry. Currently, this industry has 5 stocks and is ranked #19. Since the beginning of the year, the industry has moved +24.7%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Broadcom Inc. and Lenovo Group Ltd. as they could maintain their solid performance.
Honda Motor on Thursday confirmed a next-generation model of its Ridgeline pickup truck will be produced in the U.S. following a temporary production stoppage later this year.
The future of the midsize pickup truck has been in flux amid reports that there could be a production pause coming due to the vehicle not meeting California emissions regulations.
The Japanese automaker on Thursday said there will be a temporary production stoppage for the pickup truck later this year at the Alabama plant that produces the vehicle, with assembly returning to the facility within two years, likely in 2028.
"The goal is to continue to serve those customers who've been loyal to the Ridgeline," Lance Woelfer, vice president of auto sales at American Honda Motor, told CNBC. "But one of the things that we want to bring forward in the future is increased ruggedness of that vehicle, even more capability."
Woelfer declined to comment on whether the more rugged capability will include the vehicle moving from a car-based production process to a more traditional truck assembly, known as "body-on-frame," which is how most trucks are built in the U.S.
"That's been an important part of its history. Whether or not it's part of its future, I won't get into that," Woelfer said. "This is a step forward for the Ridgeline that I think everybody will appreciate."
Expanding the capability of the Ridgeline, which is more known for smooth driving than ruggedness, could assist in expanding the vehicle's buyers.
Sales of the Ridgeline were down about 3% during the first half of the year. The company has sold between roughly 41,000 and 52,000 Ridgelines annually since 2021. That compares to more than 270,000 units sold of the segment-leading Toyota Tacoma in 2025.
Honda's confirmation of the new pickup comes as its CR-V compact crossover led U.S. auto sales through the first half of the year for the first time ever.
CR-V sales increased roughly 6% compared to last year as the Ford F-Series pickups and Toyota Rav4 crossover, which have led sales in recent years, dealt with production bottlenecks.
Air Products and Chemicals (APD - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis seller of gases for industrial, medical and other uses is expected to post quarterly earnings of $3.36 per share in its upcoming report, which represents a year-over-year change of +8.7%.
Revenues are expected to be $3.18 billion, up 5.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.46% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Air Products and Chemicals?For Air Products and Chemicals, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.51%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Air Products and Chemicals will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Air Products and Chemicals would post earnings of $3.05 per share when it actually produced earnings of $3.20, delivering a surprise of +4.92%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Air Products and Chemicals doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: General Dynamics (GD - Free Report) Headquartered in Falls Church, VA, General Dynamics Corporation engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. The company was incorporated in February 1952.
GD is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 22.4; value investors should take notice.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $16.66 per share. GD boasts an average earnings surprise of +5.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GD should be on investors' short list.
The upcoming report from Illinois Tool Works (ITW - Free Report) is expected to reveal quarterly earnings of $2.80 per share, indicating an increase of 8.5% compared to the year-ago period. Analysts forecast revenues of $4.18 billion, representing an increase of 3.2% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Illinois Tool Works metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Operating Revenues- Test & Measurement and Electronics' will reach $711.73 million. The estimate points to a change of +3.8% from the year-ago quarter.
The average prediction of analysts places 'Operating Revenues- Construction Products' at $481.52 million. The estimate indicates a year-over-year change of +1.8%.
It is projected by analysts that the 'Operating Revenues- Food Equipment' will reach $695.22 million. The estimate indicates a year-over-year change of +2.2%.
Based on the collective assessment of analysts, 'Operating Revenues- Specialty Products' should arrive at $465.35 million. The estimate indicates a year-over-year change of +2.3%.
The collective assessment of analysts points to an estimated 'Operating Revenues- Automotive OEM' of $866.34 million. The estimate indicates a change of +2.5% from the prior-year quarter.
The combined assessment of analysts suggests that 'Operating Revenues- Welding' will likely reach $497.44 million. The estimate suggests a change of +3.9% year over year.
Analysts expect 'Operating Revenues- Polymers & Fluids' to come in at $450.98 million. The estimate indicates a change of +3% from the prior-year quarter.
The consensus estimate for 'Operating Income- Automotive OEM' stands at $186.26 million. The estimate is in contrast to the year-ago figure of $180.00 million.
According to the collective judgment of analysts, 'Operating Income- Food Equipment' should come in at $199.13 million. The estimate compares to the year-ago value of $189.00 million.
Analysts' assessment points toward 'Operating Income- Test & Measurement and Electronics' reaching $173.11 million. The estimate is in contrast to the year-ago figure of $157.00 million.
The consensus among analysts is that 'Operating Income- Specialty Products' will reach $150.68 million. The estimate is in contrast to the year-ago figure of $148.00 million.
Analysts forecast 'Operating Income- Polymers & Fluids' to reach $128.43 million. The estimate compares to the year-ago value of $121.00 million.
View all Key Company Metrics for Illinois Tool Works here>>>
Over the past month, Illinois Tool Works shares have recorded returns of +3.9% versus the Zacks S&P 500 composite's +0.4% change. Based on its Zacks Rank #3 (Hold), ITW will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Bunge is expected to post 84% higher Q2 sales and 55% higher earnings year over year.BG's Q2 results are expected to reflect Viterra-driven gains in volumes, margins and global reach.Bunge may see higher corporate and interest costs as Viterra integration expands operations. Bunge Global SA (BG - Free Report) is scheduled to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for BG’s second-quarter sales is pegged at $23.5 billion, indicating 84% growth from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at $2.03 per share, indicating a year-over-year surge of 55%. Earnings estimates have moved up 1.5% in the past 60 days.
Image Source: Zacks Investment Research
BG’s Earnings Surprise HistoryBunge’s earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 27.5%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for BungeOur proven model does not conclusively predict an earnings beat for Bunge this time around. 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. But that is not the case here.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Bunge is -1.24%.
Zacks Rank: BG currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped BG’s Q2 PerformanceBunge Global’s second-quarter performance is expected to have reflected the impacts of the Viterra acquisition, which was completed in July 2025. The enlarged platform has significantly strengthened Bunge’s global agricultural network, expanding its reach across major crops and geographies. As a result, BG’s second-quarter revenues are projected to surge about 84% year over year.
Beginning with the first quarter of 2026, Bunge has been presenting results under four segments - Soybean Processing and Refining, Softseed Processing and Refining, Tropical Oils and Specialty Ingredients and Grain Merchandising and Milling.
The Soybean Processing and Refining segment’s second-quarter results are expected to reflect higher margins, strong execution and the addition of Viterra’s South American assets. The segment is expected to have reported higher processed volumes thanks to the combined company's increased production capacity in Argentina. Process volumes are expected to have been higher in North America and Brazil as well. Merchandised volumes are also expected have been higher, reflecting the combined company’s expanded soybean origination footprint.
Softseed Processing and Refining results are also expected to strengthen in the quarter, reflecting the contribution from Viterra’s softseed asset. Softseed processed volumes are expected to have been higher year over year, primarily reflecting the combined company’s increased production capacity in Argentina, Canada and Europe. Merchandised volumes are also expected to have shown improvement owing to the combined company’s expanded softseeds origination footprint.
The tropical oils and specialty ingredients segment’s performance is expected to have reflected higher results in Asia, Europe and global oils merchandising activities. However, lower results in ocean freight, impacted by the spike in bunker fuel costs, are likely to have negated some of these gains. Within Grain Merchandising and Milling, volumes are expected to have reflected the company's expanded grain handling footprint and capabilities along with large global grain crops.
Net interest expenses are anticipated to have been higher in the quarter, reflecting the company’s expanded footprint in merchandising activities with the addition of Viterra, which is expected to have been partially offset by lower average net interest rates. The company will report an increase in corporate expenses in the quarter, primarily driven by the addition of Viterra.
BG Stock’s Price PerformanceShares of Bunge have gained 61% over the past year compared with the industry's 35.3% growth.
Image Source: Zacks Investment Research
Stocks Likely to Deliver Earnings BeatHere are some Basic Material stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Ternium (TX - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 4, has an Earnings ESP of +21.40% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for earnings for Ternium for the second quarter of 2026 is pegged at $1.29 per share, suggesting an 0.8% year-over-year increase. TX has a trailing four-quarter average earnings surprise of 3.51%.
Avient (AVNT - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 6, has an Earnings ESP of +70.87% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings for Avient for the second quarter of 2026 is 89 cents per share, indicating an 11.2% year-over-year increase. Avient has a trailing four-quarter average earnings surprise of 2.1%.
Element Solutions (ESI - Free Report) , scheduled to release second-quarter 2026 earnings on July 27, has an Earnings ESP of +1.54% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Element Solutions’ earnings for the second quarter of 2026 is pegged at 73 cents per share, indicating 16% growth from the year-ago quarter’s reported figure. Element Solutions has a trailing four-quarter average earnings surprise of 4.6%.
A.O. Smith (AOS - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of water heaters and boilers is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -10.3%.
Revenues are expected to be $986.45 million, down 2.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.21% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for A.O. Smith?For A.O. Smith, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.08%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that A.O. Smith will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that A.O. Smith would post earnings of $0.94 per share when it actually produced earnings of $0.85, delivering a surprise of -9.57%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
A.O. Smith doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Booking Holdings (BKNG - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this online booking service have returned -1.9% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Internet - Commerce industry, to which Booking Holdings belongs, has gained 6.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Booking Holdings is expected to post earnings of $2.46 per share for the current quarter, representing a year-over-year change of +10.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $10.45 for the current fiscal year indicates a year-over-year change of +14.6%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.33 indicates a change of +18% from what Booking Holdings is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Booking Holdings is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Booking Holdings, the consensus sales estimate of $7.19 billion for the current quarter points to a year-over-year change of +5.7%. The $29.4 billion and $32.09 billion estimates for the current and next fiscal years indicate changes of +9.2% and +9.2%, respectively.
Last Reported Results and Surprise HistoryBooking Holdings reported revenues of $5.53 billion in the last reported quarter, representing a year-over-year change of +16.2%. EPS of $1.14 for the same period compares with $0.99 a year ago.
Compared to the Zacks Consensus Estimate of $5.5 billion, the reported revenues represent a surprise of +0.61%. The EPS surprise was +3.64%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Booking Holdings is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Booking Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CVS Health (CVS - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this drugstore chain and pharmacy benefits manager have returned +6.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Medical Services industry, to which CVS Health belongs, has gained 4.9% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, CVS Health is expected to post earnings of $1.87 per share, indicating a change of +3.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.46 points to a change of +10.5% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $8.39 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of CVS Health, the consensus sales estimate of $100.18 billion for the current quarter points to a year-over-year change of +1.3%. The $409 billion and $425.13 billion estimates for the current and next fiscal years indicate changes of +1.7% and +3.9%, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways AVB posted Q2 core FFO of $2.86 per share, topping estimates as same-store operations supported results.AvalonBay raised its 2026 same-store revenue and NOI outlook, citing stronger first-half trends.AVB continued development growth and advanced its proposed all-stock merger with Equity Residential. AvalonBay Communities, Inc. (AVB - Free Report) reported second-quarter 2026 core funds from operations (FFO) per share of $2.86, beating the Zacks Consensus Estimate of $2.80. Core FFO increased 1.4% from $2.82 in the year-ago quarter.
Total revenues advanced 2.3% year over year to $777.77 million but missed the Zacks Consensus Estimate of $784.6 million. Favorable same-store residential revenue and expense results drove the FFO outperformance.
AVB's Same-Store NOI AdvancesSame-store residential revenues rose 1.6% year over year to $709.59 million. Operating expenses rose 2.9% to $221.03 million, resulting in a 1% increase in same-store residential net operating income (NOI) to $488.55 million. Same-store economic occupancy remained firm at 96.1%. We estimated the same at 96.2%.
The company generated average revenue per occupied same-store home of $3,097, up from $3,065 in the first quarter. Second-quarter turnover declined to 42.6% from 45.9% in the prior-year period, supporting operating efficiency and resident retention.
AvalonBay's Leasing Momentum StrengthensSame-store like-term effective rent change accelerated to 2.6% in the second quarter from 0.4% in the first quarter. The metric improved further to 3.7% in July through July 20, reflecting stronger pricing during the primary leasing season.
Northern California led the portfolio with a 7.3% effective rent increase in the quarter, followed by Metro New York and New Jersey at 4.3%. Denver remained the weakest region, recording a 3.3% decline, while the Mid-Atlantic region posted a modest 0.9% increase.
AVB Expands Its Development PipelineAvalonBay completed Avalon Parsippany during the quarter. The New Jersey community includes 410 apartment homes and was developed for a total capital cost of $145 million.
The company also began construction on three communities expected to contain a combined 801 apartment homes and 5,000 square feet of commercial space. The projects carry an estimated total capital cost of $283 million. At quarter-end, AVB had 27 wholly owned developments under construction, representing 9,064 apartment homes and an estimated total cost of $3.53 billion.
AvalonBay Maintains Moderate LeverageAvalonBay ended June with $80.68 million in unrestricted cash and cash equivalents. It had no borrowings outstanding under its credit facility, while commercial paper borrowings totaled $915.79 million.
Annualized net debt to core EBITDAre stood at 4.6 times, improving from 4.8 times at the end of the first quarter. Unencumbered NOI remained at 95%, providing the company with the flexibility to fund development and other capital needs.
During the quarter, AVB issued 2.76 million shares through equity forward settlements at $220.08 per share, generating proceeds of $607.43 million. It settled the remaining forward contracts in July for additional proceeds of $201.96 million.
AVB Raises Its Same-Store OutlookThe company raised its full-year 2026 same-store residential revenue growth range to 1.1-2.1% from 0.4-2.4%. The midpoint increased 20 basis points, reflecting stronger operating trends during the first half.
AvalonBay now expects same-store NOI growth between zero and 1.4% compared with the prior range of negative 0.7% to positive 1.3%. The midpoint rose 40 basis points. The company suspended its full-year EPS, FFO and core FFO outlook because of the proposed merger with Equity Residential.
AvalonBay Moves Merger Plans ForwardAvalonBay and Equity Residential agreed in May to combine in an all-stock merger of equals. The planned company would own more than 180,000 apartments and have an estimated enterprise value of roughly $71 billion.
Management expects the combination to generate $175 million of gross annual synergies within 18 months. Shareholder meetings to vote on the transaction are scheduled for Aug. 12, 2026.
AVB’s Zacks RankAvalonBay currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings ReleasesWe now look forward to the earnings releases of other residential REITs, such as Essex Property Trust (ESS - Free Report) and Invitation Homes (INVH - Free Report) , which are slated to report on July 29.
The Zacks Consensus Estimate for Essex Property’s second-quarter 2026 FFO per share is pegged at $4.03, which implies flat growth year over year. ESS currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for INVH’s second-quarter 2026 FFO per share is pegged at 49 cents, which suggests a year-over-year increase of 2.1%. INVH currently carries a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Accenture (ACN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this consulting company have returned +8.5% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Computers - IT Services industry, to which Accenture belongs, has lost 1.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Accenture is expected to post earnings of $3.19 per share, indicating a change of +5.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.85 points to a change of +7.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $14.67 indicates a change of +5.9% from what Accenture is expected to report a year ago. Over the past month, the estimate has changed -0.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Accenture is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Accenture, the consensus sales estimate of $18.01 billion for the current quarter points to a year-over-year change of +2.4%. The $73.54 billion and $76.51 billion estimates for the current and next fiscal years indicate changes of +5.5% and +4%, respectively.
Last Reported Results and Surprise HistoryAccenture reported revenues of $18.72 billion in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $3.8 for the same period compares with $3.49 a year ago.
Compared to the Zacks Consensus Estimate of $18.79 billion, the reported revenues represent a surprise of -0.37%. The EPS surprise was +2.7%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Accenture is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Accenture. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Coinbase Global, Inc. (COIN - Free Report) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +8.3%.
Revenues are expected to be $1.31 billion, down 12.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.1% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Coinbase Global?For Coinbase Global, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -11.98%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Coinbase Global will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Coinbase Global would post earnings of $0.36 per share when it actually produced a loss of -$0.17, delivering a surprise of -147.22%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Coinbase Global doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Palo Alto Networks (PANW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Palo Alto currently has an average brokerage recommendation (ABR) of 1.47, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 55 brokerage firms. An ABR of 1.47 approximates between Strong Buy and Buy.
Of the 55 recommendations that derive the current ABR, 41 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 74.6% and 5.5% of all recommendations.
Brokerage Recommendation Trends for PANW
Check price target & stock forecast for Palo Alto here>>>
The ABR suggests buying Palo Alto, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is PANW a Good Investment?In terms of earnings estimate revisions for Palo Alto, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.77.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Palo Alto. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Palo Alto.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Roblox Corporation ("Roblox" or the "Company") (NYSE: RBLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Roblox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 7, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Roblox securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On April 30, 2026, Roblox announced its 2026 first quarter results, allegedly reporting declines in revenue guidance and projected annual bookings growth, as well as reductions in communication engagement, app store ratings, and organic sign-ups as a result of the rollout of the Company's age-verification process.
On this news, Roblox's stock price fell more than 18%, damaging investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, July 23, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Roblox Corporation (“Roblox” or “the Company”) (NYSE: RBLX) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between October 30, 2025 and April 30, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 7, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Roblox assured investors that it could minimize risks associated with age verification and accurately forecast its business performance. The Company claimed to be “enormously bullish” and able to rely on “tremendous organic growth.” The Company relied on viral events to supply growth while misleading shareholders about how age verification would impact platform engagement and the public’s view of its products. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Roblox, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
New York, New York--(Newsfile Corp. - July 23, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Roblox Corporation (NYSE: RBLX) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Roblox securities between October 31, 2024 and April 30, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/RBLX.
Roblox Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Defendants overstated Roblox's organic growth potential and the Company's ability to sustain "tremendous organic growth" following the rollout of its age verification features; Defendants downplayed and failed to adequately disclose the severity and certainty of headwinds associated with the age verification rollout, including a slowdown in user enrollment, reduced on-platform communication, and associated negative impacts on app store ratings; as a result of these undisclosed trends, Roblox's growth rates were expected to decline more sharply than represented; and as a result of the foregoing, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading at all relevant times.What's Next for Roblox Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/RBLX, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Roblox you have until August 7, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Roblox Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Roblox Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300914
Source: Bronstein, Gewirtz & Grossman, LLC
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Spotify (SPOT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this music-streaming service operator have returned +4.2% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Internet - Software industry, to which Spotify belongs, has gained 7.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Spotify is expected to post earnings of $3.28 per share for the current quarter, representing a year-over-year change of +783.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.1%.
For the current fiscal year, the consensus earnings estimate of $14.51 points to a change of +22% from the prior year. Over the last 30 days, this estimate has changed -1.2%.
For the next fiscal year, the consensus earnings estimate of $18.16 indicates a change of +25.2% from what Spotify is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Spotify is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Spotify, the consensus sales estimate of $5.58 billion for the current quarter points to a year-over-year change of +17.3%. The $22.62 billion and $25.86 billion estimates for the current and next fiscal years indicate changes of +16.4% and +14.3%, respectively.
Last Reported Results and Surprise HistorySpotify reported revenues of $5.3 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $4.04 for the same period compares with $1.13 a year ago.
Compared to the Zacks Consensus Estimate of $5.36 billion, the reported revenues represent a surprise of -1.09%. The EPS surprise was +8.6%.
Over the last four quarters, Spotify surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Spotify is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Spotify. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Spotify (SPOT - Free Report) .
Spotify currently has an average brokerage recommendation (ABR) of 1.53, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 37 brokerage firms. An ABR of 1.53 approximates between Strong Buy and Buy.
Of the 37 recommendations that derive the current ABR, 26 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70.3% and 5.4% of all recommendations.
Brokerage Recommendation Trends for SPOT
Check price target & stock forecast for Spotify here>>>
The ABR suggests buying Spotify, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in SPOT?In terms of earnings estimate revisions for Spotify, the Zacks Consensus Estimate for the current year has declined 1.2% over the past month to $14.51.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Spotify. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Spotify with a grain of salt.
The upcoming report from NXP Semiconductors (NXPI - Free Report) is expected to reveal quarterly earnings of $3.54 per share, indicating an increase of 30.2% compared to the year-ago period. Analysts forecast revenues of $3.47 billion, representing an increase of 18.6% year over year.
The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific NXP metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Revenue- Automotive' of $1.93 billion. The estimate indicates a change of +11.9% from the prior-year quarter.
The consensus estimate for 'Revenue- Communications Infrastructure & Other' stands at $436.98 million. The estimate suggests a change of +36.6% year over year.
The consensus among analysts is that 'Revenue- Industrial & IoT' will reach $742.34 million. The estimate indicates a change of +36% from the prior-year quarter.
Analysts forecast 'Revenue- Mobile' to reach $348.67 million. The estimate indicates a change of +5.3% from the prior-year quarter.
View all Key Company Metrics for NXP here>>>
NXP shares have witnessed a change of -5.2% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #2 (Buy), NXPI is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Analysts on Wall Street project that S&P Global (SPGI - Free Report) will announce quarterly earnings of $4.49 per share in its forthcoming report, representing an increase of 1.4% year over year. Revenues are projected to reach $3.65 billion, declining 2.9% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 8.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some S&P Global metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Total revenue- Market Intelligence' at $1.26 billion. The estimate points to a change of +3.6% from the year-ago quarter.
The combined assessment of analysts suggests that 'Total revenue- Ratings' will likely reach $1.31 billion. The estimate indicates a year-over-year change of +14.4%.
Analysts' assessment points toward 'Total revenue- Indices' reaching $534.82 million. The estimate suggests a change of +19.9% year over year.
Analysts forecast 'Total revenue- Mobility' to reach $473.00 million. The estimate indicates a year-over-year change of +8%.
Analysts expect 'Revenue by Type- Non-subscription / Transaction' to come in at $728.34 million. The estimate suggests a change of -2.2% year over year.
According to the collective judgment of analysts, 'Revenue by Type- Non-transaction Revenue' should come in at $592.33 million. The estimate suggests a change of +18% year over year.
The consensus among analysts is that 'Adjusted Operating Profit- Market Intelligence' will reach $451.57 million. Compared to the current estimate, the company reported $430.00 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Adjusted Operating Profit- Indices' should arrive at $378.83 million. The estimate compares to the year-ago value of $318.00 million.
Analysts predict that the 'Adjusted Operating Profit- Ratings' will reach $885.34 million. Compared to the present estimate, the company reported $752.00 million in the same quarter last year.
View all Key Company Metrics for S&P Global here>>>
Over the past month, shares of S&P Global have returned +6.6% versus the Zacks S&P 500 composite's +0.4% change. Currently, SPGI carries a Zacks Rank #5 (Strong Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways SPGI is expected to report Q2 EPS of $4.49, up 1.4% y/y, before market open on July 28. S&P Global's ratings and indices revenues are projected to rise on debt activity and asset-linked fees. SPGI's market intelligence and mobility units are expected to benefit from AI, M&A and subscriptions. S&P Global Inc. (SPGI - Free Report) is scheduled to release second-quarter 2026 results on July 28, before market open.
SPGI has a decent history of earnings surprises, having surpassed the Zacks Consensus Estimate in the past three trailing quarters and missing once, with an average surprise of 3.6%.
S&P Global’s Q2 ExpectationsThe Zacks Consensus Estimate for revenue is pegged at $3.7 billion, indicating a 2.9% decline from the year-ago quarter’s actual.
The consensus mark for revenues from market intelligence is close to $1.3 billion, which is indicated to improve 3.6% year over year. Growth in this segment is likely to have been attributed to product strength, fast-paced AI integration, strategic M&A, and robust commercial sales. Strong renewals and net sales across the franchise are anticipated to have driven subscription revenues. The With Intelligence buyout is expected to have provided a continued impetus to the segment’s growth.
For ratings, the Zacks Consensus Estimate for revenues is set at $1.3 billion, a 14.4% jump from the year-ago actuals. Expansion in transactional and non-transactional revenues is anticipated to have improved this segment’s growth. Transactional revenues are likely to have been supported by rising billed issuance, driven by solid investment-grade debt activity. Higher annual fees and strong CRISIL performance are relevant factors expected to have improved non-transactional revenues.
The Zacks Consensus Estimate for mobility revenues is set at $473 million, up 8% year over year. Solid subscription momentum, coupled with customer wins across CARFAX and automotiveMastermind, is expected to have supported this segment’s growth. Momentum in subscription adoption and discretionary spending is likely to have aided manufacturing revenues, adding to the segment’s growth.
The consensus mark for revenues from indices is pinned at $534.8 million. It is anticipated to improve 19.9% year over year. Asset-linked fees and consistent net inflows into the S&P 500 are expected to have been the primary factors improving the segment’s revenues. Other factors, including high trading volumes, innovation in decentralized finance and robust business demand in data and custom subscriptions, are likely to have contributed to growth.
The consensus estimate for earnings per share is set at $4.49, indicating a 1.4% increase on a year-over-year basis.
What Our Model Predicts About SPGIOur proven model does not conclusively predict an earnings beat for S&P Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
SPGI has an Earnings ESP of 0.00% and a Zacks Rank of 5 (Strong Sell).
Stocks to ConsiderHere are a few stocks that, according to our model, have the right combination of elements to beat on earnings this time around.
Chatham Lodging Trust (CLDT - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $86.9 million, suggesting an 8.2% year-over-year rise. For earnings, the consensus estimate is kept at 45 cents per share, indicating a 25% uptick from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 15.6%.
CLDT has an Earnings ESP of +2.22% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to declare second-quarter 2026 results on Aug. 4.
Apple Hospitality REIT (APLE - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $393.7 million, indicating year-over-year growth of 2.4%. For earnings, the consensus estimate is 49 cents, suggesting a 4.3% gain from the year-ago quarter’s reported figure. The company beat the consensus estimate in the trailing quarters, with an average of 4.5%.
APLE has an Earnings ESP of +2.04% and a Zacks Rank of 1 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 5.
Key Takeaways Annaly expanded its Agency portfolio by nearly $3 billion to $95 billion in market value.NLY purchased $7.1 billion of loans in Q2, with Residential Credit at $10.4 billion.Annaly's MSR portfolio held $4.1 billion in market value as it grew its seller network. Annaly Capital Management, Inc. (NLY - Free Report) emphasized the strength of its diversified housing finance platform on its second-quarter 2026 earnings call, with management focusing on disciplined capital allocation, conservative leverage and opportunities across Agency securities, Residential Credit and mortgage servicing rights.
Executives highlighted continued dividend coverage, portfolio growth and selective deployment of new capital while addressing macro uncertainty, rate volatility and investor questions around future allocation priorities.
NLY Emphasizes Diversified PlatformCEO and co-chief investment officer David Finkelstein said that the company delivered a 5.5% economic return in the quarter while maintaining conservative economic leverage of 5.6 times. He noted that earnings available for distribution exceeded the dividend for the ninth consecutive quarter, supporting the increase in the quarterly common dividend to $0.75 per share.
NLY reported earnings available for distribution of $0.79 per average common share, beating the Zacks Consensus Estimate of $0.75. Revenues were $488.2 million, missing the Zacks Consensus Estimate of $509 million.
Management stated that portfolio positioning remained focused on balancing attractive returns with risk control as interest rate uncertainty continued. The company ended the quarter with a 97% hedge ratio and maintained a conservative approach to managing rate exposure.
Annaly Expands Agency PortfolioAnnaly increased its Agency portfolio by nearly $3 billion during the quarter, bringing the portfolio to $95 billion in market value. Finkelstein added that Agency capital allocation increased to 57% as the company invested newly raised capital into higher-coupon TBA securities and specified pools.
Management said that Agency spreads benefited from stronger technical conditions, including fixed-income inflows, overseas investor demand and activity in the collateralized mortgage obligation market. The company also adjusted its portfolio by reducing exposure to certain lower-coupon securities and adding higher-coupon opportunities.
Annaly’s executives highlighted continued focus on managing prepayment risk through portfolio construction. They said that specified pools remain an important tool for adding call protection while maintaining flexibility across Agency investments.
NLY Targets Residential Credit GrowthFinkelstein stated that Residential Credit remained an area where the company sees attractive risk-adjusted opportunities. The portfolio ended the quarter at $10.4 billion in market value and represented 22% of dedicated capital.
Michael Fania, co-chief investment officer and head of residential credit, said that Annaly purchased $7.1 billion of loans during the quarter, supported by its correspondent channel and whole loan relationships. He highlighted the company’s expanded sourcing network and operational infrastructure as key advantages.
Fania added that credit quality remained strong, citing a lock pipeline with a 765 FICO score and 67% combined loan-to-value ratio. He said that the company remains disciplined on pricing and return targets despite increased market competition.
Annaly Builds MSR FlexibilityAnnaly’s Mortgage Servicing Rights portfolio remained relatively stable at $4.1 billion in market value, representing 21% of dedicated capital. Management said that the business continued to benefit from its operating-light structure and use of sub-servicing partners.
Ken Adler, head of mortgage servicing rights and portfolio analytics, said that the company’s model allows it to participate in MSR transactions without the same operational requirements as traditional servicers. He noted that this structure supports flexibility when sourcing assets.
Adler also highlighted growth in the flow purchase channel, saying the company has expanded its seller network and uses detailed pricing analytics to evaluate MSR opportunities.
NLY Addresses Capital AllocationDuring Q&A, a Piper Sandler analyst asked where incremental capital would be deployed across the company’s three strategies. Finkelstein said that Residential Credit offered strong opportunities, while Agency investments remained attractive because of favorable market conditions.
Finkelstein added that the company’s recent capital raises were designed to support growth in Residential Credit and MSR while maintaining disciplined valuation standards. He noted that capital raised over the prior two years helped expand these businesses.
A UBS analyst asked about mortgage spreads and market uncertainty. Management responded that low volatility, strong demand and supply conditions were key factors influencing the current investment environment.
Annaly Maintains Strategic FocusAnnaly entered the second half of 2026 focused on selective growth across its three investment strategies. Management emphasized scale, liquidity and capital discipline as central components of its approach.
The company ended the quarter with $9.6 billion of assets available for financing, including cash and unencumbered Agency mortgage-backed securities, providing additional financial flexibility.
Executives continued to prioritize opportunities where the company can deploy capital while maintaining conservative risk controls and supporting earnings distribution.
NLY’s Zacks Rank and Style ScoreNLY carries a Zacks Rank #3 (Hold) at present, which indicates that the stock’s current earnings estimate revision trend is consistent with a neutral outlook. The Zacks Rank can change as analysts update earnings estimates following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of C, a Growth Score of F, a Momentum Score of A and a VGM Score of D. The Zacks Style Score evaluates value, growth, momentum and combined characteristics, with higher grades indicating stronger attributes within each style category.
Annaly Capital Management (NLY -0.80%) towers above most dividend stocks. The real estate investment trust (REIT) currently has a dividend yield of more than 12.5%. That's over 10 times higher than the S&P 500's current yield of around 1.1%.
A double-digit dividend yield is usually a bright red flag for income investors. However, that's not the case with the mortgage REIT's big-time payout. That's because the one metric that matters most for its dividend continues to top its payout.
Image source: Getty Images.
It's all about Annaly's EAD Investors need to shift their focus when evaluating a REIT's financial results from reported net income to its underlying earnings. That metric can vary by REIT, as some use funds from operations (FFO) while others use an adjusted earnings metric. For Annaly, the metric that matters most for its dividend is its earnings available for distribution (EAD).
During the second quarter, the mortgage REIT generated $0.79 per share of EAD, comfortably above the $0.75 per share dividend it paid. That marked the ninth straight quarter that Annaly's EAD exceeded its dividend payment:
Data source: Annaly Capital Management. Chart by the author.
Annaly's rising EAD over the past nine quarters has enabled it to increase its dividend twice during this period, including a recent boost from $0.70 to $0.75 per share. That has reversed the prior downtrend in Annaly's EAD and dividend.
Will Annaly's EAD remain above its dividend? Annaly's recent decision to raise its dividend reflects "the durable earnings power of our portfolio," stated CEO David Finkelstein in the second-quarter earnings press release. Several factors contribute to this durability, including Annaly's scale (it's the largest residential mortgage REIT by market cap), diversification (it invests in Agency MBS, residential credit, and mortgage servicing rights (MSR)), and financial strength (economic leverage of 5.6 times, down from 5.7x in the prior quarter and ample liquidity).
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Those factors drive the REIT's expectation that it can continue to generate attractive risk-adjusted returns across market cycles. It currently sees meaningful investment opportunities across its three strategies. Annaly can earn levered returns of 11% to 13% on new MSR investments, 12% to 15% on residential credit, and 14% to 16% on Agency MBS investments. It has the flexibility to allocate new capital to the best investment opportunities it identifies. That was in Agency MBS during the second quarter, as it grew that portfolio by $3 billion while maintaining the size of its residential credit and MSR portfolios. As long as Annaly can earn high returns on new investments, it should be able to continue its trend of generating EAD in excess of its dividend.
Excess EAD means the dividend is safe Annaly ran into trouble several years ago when its EAD began to decline, forcing it to cut its dividend a few times. However, that trend has reversed, enabling the REIT to boost its payout as its EAD has risen. As long as that metric remains above the dividend, the payout is safe. That appears to be the case for now, given the company's increasingly durable earnings and the strong returns it can earn on new investments. However, it's a metric investors need to watch closely, as changes in EAD will directly affect the dividend.
