SummaryCompaniesHonda expects 500 bln yen op profit in the current fiscal yearHonda expects additional EV writedown of 500 bln yenHonda scraps long-term EV sales targetHonda indefinitely suspends Canada EV projectTOKYO, May 14 (Reuters) - Honda Motor (7267.T), opens new tab posted its first annual loss in nearly 70 years as a listed company on Thursday, hit by more than $9 billion in costs to restructure its electric-vehicle business, and the firm scrapped its long-term EV sales target.
Revealing its worst financial report since Honda listed on the stock market in 1957 underscores how risky an aggressive bet on EVs can be for a legacy automaker when it slams into weaker-than-expected demand.
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Toshihiro Mibe, CEO of Japan's second-largest automaker, on Thursday said Honda is scrapping its goal of having EVs make up a fifth of its new car sales in 2030 as well as a target of a full shift to electric or fuel-cell vehicle sales by 2040.
Mibe said Honda will also indefinitely suspend its Canada EV project, an $11 billion investment plan to produce EVs and batteries in what would have been the Japanese firm's largest ever investment in the country.
SHARES UP ON NO DIVIDEND CUTHonda's shares briefly hit a two-month high before closing up 3.8% on Thursday, after it pledged at least 800 billion yen in shareholder returns over three years and kept the annual dividend for both the new fiscal year and the year just ended at 70 yen per share.
The pledge highlights Honda's reliance on its profitable motorcycle business to generate cash and support shareholder returns, as its auto operation continues to lag in terms of scale and execution.
"The overall execution has been very slow," said James Hong, head of mobility research at Macquarie.
Some steps the company laid out as part of its strategy, such as using more local components from China, were "nothing new," he said.
Item 1 of 2 The Honda Motor logo is pictured at the 43rd Bangkok International Motor Show, in Bangkok, Thailand, March 22, 2022. REUTERS/Athit Perawongmetha
[1/2]The Honda Motor logo is pictured at the 43rd Bangkok International Motor Show, in Bangkok, Thailand, March 22, 2022. REUTERS/Athit Perawongmetha Purchase Licensing Rights, opens new tab
Its operating loss totalled 414.3 billion yen ($2.63 billion) for the year ended March, compared with a median estimate of a 315.6 billion yen loss in a poll of 22 analysts by LSEG and a 1.2 trillion yen profit a year earlier.
Honda booked total EV-related losses of 1.45 trillion yen for the business year ended March and expects to face additional costs of 500 billion yen for the year just started. That compares with EV writedown costs of up to 2.5 trillion yen that Honda estimated in March.
The company still expects to return to profitability this year, forecasting a 500 billion yen profit on cost-reduction measures and its profitable motorcycle business.
"The motorcycle business will expand production capacity in India ... and aim for record-high sales of 22.8 million units," Honda said in an earnings statement.
Strong sales in India and Brazil enabled its motorcycle business to achieve record-high sales volume and operating profit in the fiscal year ended in March, helping the firm cushion the impact of a bruising EV business writedown as well as sliding car sales in key markets including China.
Hong said Honda's motorcycle business also faces margin pressure due to a transition to EVs in some of its key markets like India and Vietnam.
"They have a limited time window to act," he said.
The company expects rising material prices, including the impact of the Middle East conflict, would cause a 313 billion yen hit to its operating profit in the current fiscal year.
Japan's second-largest automaker posted its first annual loss due to shrinking sales in key markets and the restructuring of its EV business.($1 = 157.8300 yen)
Reporting by Daniel Leussink; Writing by Miyoung Kim; Editing by Jacqueline Wong and Muralikumar Anantharaman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Daniel Leussink is a correspondent in Japan. Most recently, he has been covering Japan’s automotive industry, chronicling how some of the world's biggest automakers navigate a transition to electric vehicles and unprecedented supply chain disruptions. Since joining Reuters in 2018, Leussink has also covered Japan’s economy, the Tokyo 2020 Olympics, COVID-19 and the Bank of Japan’s ultra-easy monetary policy experiment.
3 Automakers to Buy on U.S.-Japan Trade Deal—Not Who You ExpectHonda Motor NYSE: HMC reported a full-year operating loss after booking large EV-related charges, while executives outlined a broad reset of the automaker’s electrification and automobile business strategy.
Director, President and Representative Executive Officer Toshihiro Mibe said Honda recorded total EV-related losses of JPY 1.5778 trillion for the fiscal year ended March 2026. The charges included provisions and impairment losses tied to EVs already sold in the U.S. and additional losses following the cancellation of North America-produced EV models.
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Power Play: Japan’s Top Auto Stocks Eye Historic MergerAs a result, Honda posted an operating loss of JPY 414.3 billion for the year. Excluding the EV-related losses that affected operating profit, Mibe said adjusted operating profit was JPY 1.0393 trillion. He said the motorcycle business delivered record unit sales and operating profit, while the automobile business remained profitable on an adjusted basis despite tariffs, lower unit sales and semiconductor-related supply constraints.
EV Losses Drive Full-Year Deficit Director, Executive Vice President and Representative Executive Officer Noriya Kaihara said Honda’s consolidated results included a net loss attributable to owners of the parent of JPY 423.9 billion, down JPY 1.2597 trillion from the previous year. Adjusted net profit attributable to owners of the parent was JPY 795.5 billion.
Shift Into Growth: Top 3 Hybrid Vehicle Makers to Invest InMotorcycle unit sales rose to 22.101 million units, supported by Asia and South America. Automobile unit sales fell to 3.387 million units, mainly due to weakness in Asia, including China. Power products unit sales declined to 3.589 million units.
By segment, Kaihara said motorcycle operating profit rose JPY 68.4 billion to a record JPY 731.9 billion. The automobile business recorded an operating loss of JPY 1.4111 trillion after JPY 1.4536 trillion in EV-related losses. Excluding those losses, automobile adjusted operating profit was JPY 42.5 billion. Financial services generated operating profit of JPY 275.5 billion, while power products and other businesses posted an operating loss of JPY 10.6 billion.
Honda reported free cash flow excluding financial services of JPY 1.58 trillion. Its operating companies had a net cash balance of JPY 3.3245 trillion at the end of March 2026, while operating cash flow after R&D adjustment totaled JPY 2.6579 trillion.
Fiscal 2027 Outlook Calls for Return to Operating Profit For the fiscal year ending March 2027, Honda forecast operating profit of JPY 500 billion, including an estimated JPY 500 billion in EV-related losses. Excluding those losses, adjusted operating profit is expected to be JPY 1 trillion. Profit attributable to owners of the parent is forecast at JPY 260 billion, or JPY 620 billion on an adjusted basis.
Honda expects motorcycle sales of 22.8 million units, automobile sales of 3.39 million units and power products sales of 3.65 million units. The company assumed an exchange rate of JPY 145 to the U.S. dollar.
The company plans an annual dividend of JPY 70 per share for the fiscal year ending March 2027, unchanged from the prior year. Mibe said Honda has maintained “ample cash at hand” and a high level of financial soundness, citing a 55% equity ratio for operating companies excluding financial services.
Honda Resets EV Strategy and Focuses on Hybrids Mibe said the cancellation of three North America EV models does not mean Honda is withdrawing from EVs. He said the company will continue EV sales in Japan and Asia where they match local demand and will monitor North American market conditions before launching additional products there.
However, Mibe said the company is withdrawing its previous target for EVs and fuel cell vehicles to account for 100% of sales by 2040. In response to a question from NHK’s Yasunaga, Mibe said that goal is “not realistic as of now” given market uncertainty and changing customer demand. Honda will instead focus on total CO2 reduction while maintaining its goal of carbon neutrality by 2050.
Honda will shift more development and production resources to hybrids. Mibe said the company plans to launch 15 next-generation hybrid models globally by the end of the fiscal year ending March 2030, primarily in North America. The next-generation hybrid system is expected to improve fuel economy by more than 10% and reduce system costs by more than 30% compared with 2023 models.
The company also plans to introduce next-generation advanced driver assistance systems beginning in 2028 and install them in more than 50 models over five years. Honda said it will make all of its North American auto plants capable of producing hybrid models and convert part of the EV battery lines at its LG Energy Solution joint venture to hybrid battery production.
Automobile Turnaround Plan Targets Record Profit Mibe said Honda’s automobile business faces challenges beyond the EV slowdown, including lower profitability in North America and weaker competitiveness in China and ASEAN markets. He said Honda will focus on improving cost structure, increasing development efficiency and concentrating resources in priority markets.
The company identified North America, Japan and India as priority regions. In Japan, Honda plans to expand EV offerings in the mini-vehicle category and add next-generation hybrid models, mostly SUVs, beginning in 2027. In India, Honda plans to introduce strategic models tailored to local customer needs starting in 2028, including vehicles under four meters and midsize models.
In China, Mibe said Honda will pursue cost reductions through locally sourced standard components, incorporate local technologies such as ADAS and introduce new energy vehicles using platforms from local partners.
Honda also plans what Mibe called “Triple Half,” a development-efficiency initiative aimed at cutting development cost, duration and workload by half compared with 2025 levels. The company aims to reduce minor model change development time by half starting this fiscal year and full model change development time by half for projects starting in 2028.
Honda said it is targeting operating profit above JPY 1.4 trillion by the fiscal year ending March 2029 and a 10% return on invested capital by the fiscal year ending March 2031. Over the next three years, the company plans total investment of JPY 6.2 trillion, including JPY 4.4 trillion for internal combustion engine and hybrid models, about JPY 1 trillion for software and about JPY 0.8 trillion for EV-related investment.
Management Addresses Losses and Governance Changes In the question-and-answer session, Mibe said he takes the large deficit “very seriously” as management. He said Honda decided to recognize the losses to stop future bleeding and return to a growth trajectory.
Honda also said it will further change its governance structure. Mibe said the board of directors will be composed of a majority of outside directors, the chair of the board will be an outside director, and all members of the nominating and compensation committees will be outside directors.
“The business environment surrounding Honda is uncertain, unprecedentedly uncertain and tough,” Mibe said. He said the company will focus on rebuilding its automotive business while relying on its motorcycle business and financial foundation to support future growth.
About Honda Motor NYSE: HMCHonda Motor Co, Ltd. is a global manufacturer and mobility company headquartered in Minato, Tokyo, Japan, founded in 1948 by Soichiro Honda and Takeo Fujisawa. The company's core businesses include the design, manufacture and sale of automobiles and motorcycles, along with a diverse portfolio of power products, engines and related components. Honda also operates in aviation through Honda Aircraft Company and offers financial services that support vehicle sales and leasing.
In automobiles, Honda is known for a range of passenger cars, crossovers and light trucks, and in motorcycles it is one of the world's leading producers by volume and model breadth.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Shares of Honda Motor rose over 7% on Friday, even after the Japanese automaker posted its first annual operating loss in nearly 70 years.
Honda swung to an operating loss of 414.3 billion yen ($2.61 billion) for the fiscal year ending March, compared to an operating profit of 1.2 trillion yen the year prior. Provisions made for its ailing electric vehicle business and related investments, competition from its Chinese rivals, as well as a U.S. tariff impact of 346.9 billion yen weighed on its earnings.
"The business environment surrounding the Company has been changing rapidly, and the outlook remains uncertain," Honda said in its earnings statement on Thursday.
As part of its efforts to reorganize its EV business, the automaker said it will cancel market launches and development of some EV models initially planned for production in North America. The Japanese automaker said it expects the restructure of its EV business to cost over $9 billion.
Honda also noted that new EV makers have intensified competition in China. "Under such a challenging and competitive environment, the Company has also revised its product launch plans for certain EV models," Honda added.
"We believe the positive share price reaction is driven by the company's guidance for operating and net profit, both of which came in 38% above consensus estimates," said Masahiro Akita, an analyst from Bernstein.
However, Akita said it's uncertain as to whether the guidance has fully priced in possible losses linked to EV investments.
The automaker, being a late entrant to the EV market, has been facing challenges amid growing competition from Chinese rivals, inflation and U.S. tariffs.
Aya Adachi, an associate fellow at the Center for Geopolitics, Geoeconomics and Technology of the German Council on Foreign Relations, noted that global automotive competition is being gradually influenced by China's rapid growth in electric vehicle production.
"While pioneering hybrid technology, Japan's slow transition to battery electric vehicles left it with a limited presence in China's new energy vehicles market and exposed it to rising pressure in export markets," Adachi said.
Further, engine issues and vehicle recalls have also dented Honda's reputation. In March, Honda engines used by Aston Martin were found to be causing battery failures and in January the Japanese automaker was slapped with a lawsuit in Canada over a defect in the 1.5L turbocharged engine in three Honda models.
That said, both Citi and Nomura have kept a buy rating on Honda, expecting to see some future growth in the company.
"While we expect earnings to be low in 27/3, we think the time is right to price in a full-fledged recovery through 28/3 now that the company has announced revisions to its strategy," Nomura analyst Toshihide Kinoshita said in a note, referring to the company's estimated earnings for the years ending March 2027 and March 2028.
The Japanese automaker is shifting its focus more towards China and India markets from "a traditional global standard model," Citi analyst Arifumi Yoshida said in a note. Yoshida said that Honda plans to use its advantage in the motorcycle business to capture the demand from India's low cost segment.
Shares were last trading 7.42% higher at 1,418 yen.
Honda’s latest results paint a sharply weaker picture of the company’s performance, with both operating and net income slipping into loss for the first time in decades.
The company reported an operating loss of ¥414.3 billion and a net loss of ¥423.9 billion for the year ended March 2026, its first annual loss since it was founded in 1948.
Yet the stock rose 7% on Friday because investors were not buying the past; they were buying the next 12 months.
Honda’s forecast for the year ahead calls for ¥500 billion in operating profit, well above Bloomberg’s consensus estimate of ¥212.4 billion, and that forward view mattered more to the market than the headline loss.
The result was a share-price rally even as the company booked one of the worst years in its modern history.
The annual loss was not a surprise as Honda said the damage was driven mainly by EV-related writedowns and restructuring costs, not by a sudden collapse in its core business.
The company booked ¥1.4536 trillion in EV-related losses for the year, and it said the tariff hit alone clipped operating profit by ¥346.9 billion.
But Honda’s adjusted operating profit excluding EV losses was still ¥1.0393 trillion, which shows the underlying business remained profitable once the one-off charges were stripped out.
Honda had already warned in March that it was facing up to ¥2.5 trillion in EV-related costs, so much of the bad news was already known.
That is why the market reaction looked so counterintuitive.
Honda stock had already fallen sharply when the company first flagged the loss, but this week’s results confirmed the scale of the write-off while also showing the damage was concentrated in one strategic bet.
The guidance number changed the storyThe real market-moving number was not the loss, but the guide for the year ahead.
Honda said it expects ¥500 billion in operating profit in fiscal 2027, and the stock rose on the back of that outlook and the company’s unchanged annual dividend of ¥70 a share.
Honda also said it aims for record motorcycle sales of 22.8 million units, with India and Brazil driving record-high motorcycle volume and operating profit in the year just ended.
In other words, the business that throws off cash is still doing the heavy lifting while the auto division restructures.
That matters because markets value earnings power ahead, not just the previous year’s result.
If management can show a credible path back to profit, even after a historic loss, investors are often willing to look through the damage.
Honda’s 2027 guidance reassured the market that the EV reset is not expected to cause lasting damage, but rather a recovery.
Key Takeaways HMC posted a Q4 loss of $4.24 per share, topping estimates as revenues rose to $37.1 billion.Honda's motorcycle revenues rose 17.9% Y/Y, while operating profit increased 14.6%.HMC expects fiscal 2027 revenue growth of 6.2% but forecasts a sharp profit decline. Honda (HMC - Free Report) incurred a loss of $4.24 per share for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of 18 cents per share. Quarterly revenues totaled $37.1 billion, which rose from the year-ago period’s figure of $35.2 billion.
Segmental HighlightsFor the three-month period, which ended on March 31, 2026, revenues from the Automobile segment increased 4.6% year over year to ¥3.73 trillion ($23.8 billion). The segment registered an operating loss of ¥1.25 trillion ($7.96 billion) compared with an operating loss of ¥158.7 billion in the corresponding quarter of fiscal 2025.
Revenues from the Motorcycle segment came in at around ¥1.09 trillion ($6.94 billion), which increased 17.9% year over year. The unit’s operating profit came in at ¥185.3 billion ($1.18 billion), up 14.6% year over year.
Revenues from the Financial Services segment totaled ¥975 billion ($6.21 billion), up 14.8% year over year. The unit’s operating profit totaled ¥57.5 billion ($366.4 million), down 18.6% year over year.
Revenues from Power Product and Other Businesses came in at ¥129.7 billion ($826.4 million), up 14.5% year over year. The segment reported operating income of ¥4.1 billion (26.1 million) against the operating loss of ¥68 billion incurred in the same period last year.
Financials & FY27 ViewConsolidated cash and cash equivalents were ¥4.53 trillion ($28.5 billion) as of March 31, 2026. Long-term debt was around ¥301.4 billion ($1.9 billion) as of March 31, 2026.
Honda projects fiscal 2027 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 15.19 million units, 2.71 million units and 3.59 million units, respectively. The forecast implies growth of 3.5% year over year in the Motorcycles unit, while it implies a year-over-year rise of 4% and 1.7% for the Automobile and Power Product unit sales, respectively.
For fiscal 2027, Honda forecasts revenues of ¥23.15 trillion, implying a rise of 6.2% year over year. Operating profit is envisioned at ¥500 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥500 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2027.
HMC currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto SpaceMobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
Honda Motor Co., Ltd. faces a humbling annual loss and a strategic pivot from BEVs to hybrids amid weak demand and regulatory uncertainty. HMC will introduce 15 gas-electric hybrid models over four years, localizing U.S. hybrid component sourcing to improve profitability and reduce tariffs. Management forecasts a return to operating profitability by March 2025 and a record $8.8B operating profit in FY2029, following a $2.6B FY2026 loss.
For the first time in its history as a publicly traded company, Honda Motor (HMC 2.33%) posted a full-year loss. The Japanese automaker took a massive $10 billion hit to its electric vehicle business.
Excluding the EV segment, Honda is still profitable. Its executives were quick to point out this fact.
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Honda is now pivoting and plans to roll out 15 new hybrid models by early 2030. The company canceled several EV models and even walked back its climate pledge. Instead of reaching combustion-free status by 2040, Honda now aims to be carbon neutral by 2050.
While Honda is largely abandoning its EV plans, it still faces other hardships. Honda is discontinuing sales in South Korea, closing a plant in China, and delaying its autonomous-driving ambitions.
The good news is that Honda is disciplined and knows how to steer to get back on track. The Japan-based company is refocusing its efforts on its strengths in a leaner, more efficient manner. This strategy shift should be great for long-term investors.
Image source: Getty Images.
As for the stock, Honda hasn't done much to impress over the past five years. Shares are down more than 13% in that time frame.
Honda inventors should remain patient. This speed bump arguably marks the beginning of the company's turnaround. There's money to be made with hybrids. The hybrid car market could reach $457 billion by 2030, growing at a compound annual rate of 11%, according to Grand View Research.
Honda learned a tough lesson last year but is now moving in the right direction toward long-term success in a highly competitive automotive industry. Patience is key here for investors. The stock is reasonably priced, but the strategic pivot may need some time to take hold.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
KOBE, Japan, May 21, 2026 (GLOBE NEWSWIRE) -- Micware Co., Ltd., (Nasdaq: MWC) (the “Company” or “Micware”), a Japan-based provider of software development services and innovative IT solutions mainly focused on the automotive and mobility sectors, today announced that it has received an “Excellent Appreciation Award (Development Division)” from Honda Motor Co., Ltd. (“Honda”).
The “Excellent Appreciation Award” is presented by Honda to business partners that have delivered outstanding contributions in their respective fields.
In the Development Division, the Company was recognized for the practical and meaningful support it provided through close collaboration from the early stages of development, spanning in-vehicle infotainment software design philosophy, development processes, and product quality assurance. This support enabled the steady execution of mass-production development while maintaining a high level of quality and helped achieve both asset reusability and customizability while keeping costs low. In addition, through the continuous refinement of software assets, the Company contributed to the deployment across multiple vehicle models and global markets, thereby helping strengthen competitiveness for the software-defined vehicle era.
The award ceremony was held at the Company’s Kobe head office on May 8, 2026, where the Company was presented with a trophy.
From left: Micware's CTO, Mr. Masahide Shigeno; Micware's CEO, Mr. Kenji Narushima; members of Honda R&D Co., Ltd.’s SDV R&D Center (Smart Cabin Development Division): GM, Mr. Takashi Takiguchi; Development Improvement Department MG, Mr. Tasuku Saka; Infotainment Software Development Department MG, Mr. Tetsuya Mukawa
The "Excellent Appreciation Award" presented to Micware by Honda Motor
Micware's CEO, Mr. Kenji Narushima (left) receives the "Excellent Appreciation Award" from Honda R&D Co., Ltd.’s SDV R&D Center (Smart Cabin Development Division) GM, Mr. Takashi Takiguchi (right)
About Micware Co., Ltd.
Micware Co., Ltd. is a Japan-based provider of software development services and innovative IT solutions mainly focused on the automotive and mobility sectors. The Company is primarily engaged in the development and sale of in-vehicle infotainment (“IVI”) systems covering multimedia, navigation, human machine interface, telematics, and driver assistance, as well as navigation software and location information-based smartphone applications.
Since its founding in 2003, Micware has built over 20 years of experience in automotive software and has established long-term relationships with major original equipment manufacturers (“OEM”) in Japan, including Honda Motor Co., Ltd. and Toyota Motor Corporation. Leveraging its engineering capabilities, proprietary technologies, and long-standing OEM relationships, the Company was ranked 9th among Japan-based Tier 1 suppliers in the IVI market in terms of revenue as of February 28, 2024, according to an industry report titled “IVI, Automotive Navigation System and Digital Mapping Market” commissioned by the Company and prepared by Frost & Sullivan. Micware operates across Japan through six operating entities and 12 branch offices and has established subsidiaries in the United States, Thailand, and Germany for overseas operations.
For more information, please visit the Company’s IR website: www.ir-micware.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the registration statement filed with the U.S. Securities and Exchange Commission (the “SEC”). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.
For more information, please contact:
Micware Co., Ltd.
Investor Relations Department
Email: [email protected]
LOS ANGELES, May 28, 2026 (GLOBE NEWSWIRE) -- Curbee, the leading mobile service platform for automotive dealerships, today announced a landmark partnership with Paragon Honda, Paragon Acura and White Plains Honda, collectively the No. 1 Honda dealership operation in the United States. The group is the first Honda and Acura retail group in the United States to deploy Curbee’s platform.
Paragon and White Plains will use Curbee’s platform to deliver select dealership-certified mobile vehicle maintenance and repair services on demand to customers in driveways – rather than just in service lanes – across the Tri-State market.
The partnership reflects a broader shift underway in dealership fixed operations as progressive auto retailers look for ways to increase service capacity, improve customer retention and handle demand that is growing rapidly without the cost or hassle of expanding physical service facilities.
“The Paragon and White Plains brands understand that mobile service is not just a feature, it is a fundamental extension of the customer relationship,” Curbee CEO Amit Chandarana said. “We’re proud to be the platform that makes them mobile."
Curbee reports that roughly 37% of dealership service work can be completed outside a traditional service bay by a mobile technician at the customer’s home or office. That is reshaping how forward-thinking operators think about service-lane capacity, retention and growth.
For Paragon Honda, Paragon Acura and White Plains Honda, it also represents an opportunity to deliver the convenience customers increasingly expect. The group’s adoption of the Curbee platform further reinforces the group’s reputation for innovation and leadership in fixed operations, such as its leading e-commerce parts operation.
“We’re not interested in defending the old service model,” said Brian Benstock, Vice President and General Manager for Paragon Honda, Paragon Acura and White Plains Honda. “Customers expect convenience, speed, and flexibility, and we intend to lead the industry in delivering it. Curbee gives us the technology and operational foundation to scale mobile service the right way, while unlocking capacity across our stores.”
Mobile Service as a Capacity Strategy
The Paragon group has built its reputation by anticipating where customers are going — not where the industry has been. That same instinct drives its partnership with Curbee.
According to Curbee’s The16 report, the average American driver passes 16 independent repair shops before reaching a franchised dealership, creating 16 opportunities to lose the service relationship. The antidote is not a better waiting room. It is meeting the customer where they are.
“The reality is undeniable,” Benstock said. “Thirty-seven percent of the work coming through a dealership service drive today can be performed directly in the customer’s driveway. Mobile service is not just a convenience play, it is a capacity strategy. We can move the right jobs out of the service lane, open our bays for more complex work, and deliver the kind of experience today’s owners expect.”
Paragon Honda has been recognized as the No. 1 Honda Certified Pre-Owned dealer in the world for 16 consecutive years, from 2008 through 2024. The group also holds multiple Honda and Acura President’s Award and President’s Award Elite distinctions. That track record of retail leadership informs how the group approaches mobile service: not as an experiment, but as an operational extension of a proven customer experience model.
Why Curbee
Curbee’s M.A.R.S. platform (Mobile and Remote Service) is purpose-built for franchised dealerships. The Paragon group selected Curbee for:
Intelligent appointment scheduling that accounts for job type, technician skill sets, parts availability, and live traffic to minimize drive time and maximize productivitySeamless DMS (dealership management system) integration that keeps mobile operations fully connected to the dealership’s existing workflowsAutomated customer communications that deliver a modern, transparent service experienceA proven track record of helping dealers launch, scale and build profitable mobile programsAI-powered scheduling and analytics that give dealerships real-time visibility into performance Curbee already powers mobile service for leading OEMs including General Motors, Stellantis and Volkswagen, and for dealership groups including Group 1 Automotive, Lithia & Driveway, Hendrick Automotive Group and Sonic Automotive.
“What the Paragon and White Plains group has built in fixed operations is extraordinary,” Curbee’s Chandarana said. “We’re proud to partner with them to deliver that same standard of excellence directly to their customers, wherever they are.”
About Curbee
Curbee is the No. 1 mobile service platform. Curbee enables dealerships to offer mobile service with its platform called M.A.R.S. (Mobile and Remote Service). With M.A.R.S., it's simple: dealerships send the right van to the right job, using the right route with the right parts, at the right time.
The company’s street credit comes from in-market experience and best practices. With Curbee’s software, solutions and success team, dealers can scale mobile service quickly, delivering a game-changing customer experience while driving revenue growth. Curbee’s innovative technology supports AI-powered scheduling & analytics, ensuring dealers efficiently “go mobile.” Curbee’s team has highly relevant experience from Tesla, Toyota, Ford and Roadster and is backed by DVx Ventures, a venture studio with a unique approach to company creation and scaling. For more information, visit www.curbee.com.
About Paragon Honda, Paragon Acura, and White Plains Honda
Paragon Honda, Paragon Acura and White Plains Honda are the No. 1 Honda dealership operation in the United States, headquartered in Queens, New York. Paragon Honda has been recognized as the No. 1 Honda Certified Pre-Owned dealer in the world for 16 consecutive years and is a multiple-time recipient of Honda’s President’s Award Elite distinction. The group is led by Brian Benstock, VP and General Manager, and is known for pioneering a “Future Is Frictionless” approach to retail — centered on trust, transparency, and convenience — including a pickup-and-delivery program that has completed more than 200,000 transactions.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/70a3215e-c151-4478-bd50-5ce1688fd6b5
Paragon Honda, Paragon Acura, and White Plains Honda partner with Curbee to launch mobile service ac... Leading New York dealership group becomes first Honda and Acura retailer in the U.S. to deploy Curbe...
The Honda logo is displayed, at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS/Chalinee Thirasupa Purchase Licensing Rights, opens new tab
CompaniesMay 29 (Reuters) - Honda Motor (7267.T), opens new tab is recalling 98,892 vehicles in the United States over a defect involving unintentional deployment of air bags, the U.S. National Highway Traffic Safety Administration (NHTSA) said on Friday.
Here are a few more details:
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The recall includes certain Honda Acura TLX, Accord Hybrid, and 2022 Accord vehicles, the auto regulator said.
The regulator said the issue arises from a front passenger seat weight sensor that may crack and short circuit.
Due to the issue, airbags may unintentionally deploy despite the presence of occupants like an infant in child seat or a child, for whom deployment should have been suppressed.
As a part of the remedy, dealers will replace the seat weight sensors at no cost, NHTSA said.
Reporting by Mihika Sharma in Bengaluru; Editing by Subhranshu Sahu
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Honda charitable giving totals over $15 million during annual funding cycle Funding supports 271 programs in five key CSR pillars: Education, Environment, Mobility, Traffic Safety and Community Contributions build on a commitment by Honda to drive long-term sustainable impact in communities , /PRNewswire/ -- From preparing students for careers in advanced manufacturing to addressing food insecurity, Honda and the Honda USA Foundation are supporting programs that empower the communities near Honda operations in the U.S. This funding cycle, Honda and the Honda USA Foundation provided more than $15.2 million to 271 nonprofit and school-led programs, expected to positively impact more than 45 million people.
Honda supports Rosie Explores Manufacturing, a nationwide STEM program that helps foster the future manufacturing workforce by providing hands-on experiences for elementary and middle school students. In 2026, Honda and the Honda USA Foundation are providing more than $15.2 million to 271 nonprofit and school-led programs, expected to positively impact more than 45 million people. "Honda and the Honda USA Foundation are committed to supporting programs that make people's lives better," said Marcos Frommer, department lead of Corporate Social Responsibility at American Honda Motor Co., Inc. "Whether it's helping families meet essential needs or expanding access to mobility, our funding contributes to initiatives that strengthen communities nationwide."
Honda corporate social responsibility (CSR) contributions are made to programs aligned with five strategic pillars: Education, Environment, Mobility, Traffic Safety and Community. The programs below highlight how this year's charitable giving is making a difference in communities across the U.S.
Education
To help solve tomorrow's challenges, Honda supports education programs that spark creativity and innovation in industry-relevant fields.
Guilford Technical Community College (GTCC) Aerospace Manufacturing Engineer Program in the Piedmont Triad region of North Carolina prepares students for roles in advanced aerospace manufacturing and production design. Funding from Honda will support equipment purchases and help secure additional faculty to welcome the program's first class of high school students. Rosie Explores Manufacturing is a nationwide STEM education program. Honda funding helps foster the future manufacturing workforce by introducing elementary and middle school students to hands-on experiences, equipping them to succeed in the AI-driven manufacturing environments of the future. Environment
Honda supports programs that help reduce and prevent carbon emissions, generate clean energy and conserve vital resources, such as water and electricity, improving the quality of life for communities nationwide.
The Circle East District initiative is revitalizing a distressed, historic neighborhood in East Cleveland through sustainable commercial and residential redevelopment, home repairs, infrastructure and streetscape improvements. With support from Honda, rooftop solar panels will be installed on five existing owner-occupied residences, helping ensure more equitable energy costs for new and existing residents. The Kingman Rangers job training initiative, in Washington, D.C., prepares out-of-work adults for entry-level jobs in the green sector while beautifying the Kingman and Heritage Islands, home to rare ecosystems, including tidal freshwater wetlands and tidal swamp forests. Funding from Honda will support ongoing preservation efforts and educate community members about the importance of environmental stewardship. Traffic Safety
Building on its "Safety for Everyone" approach, Honda supports programs that promote safe driving, biking and pedestrian practices, awareness and education.
The In One Instant Program equips teens with vital skills to stay safe as drivers, passengers, bicyclists, skaters and pedestrians. Support from Honda will help fund videos, learning guides and hands-on activities that educate young drivers about the consequences of distracted, reckless and impaired driving. The ThinkFirst for Safer Roads for Parents of Teen Drivers addresses a leading cause of traumatic injury and death among young people: motor vehicle crashes. Honda funding will support the development and expansion of evidence-based programming to reduce preventable injuries and save lives through education and sustained behavior change. Mobility
The Honda USA Foundation supports programs that remove barriers to mobility and expand access and opportunities for individuals with disabilities. Funding will support mobility modifications, therapeutic and adaptive services, and comprehensive care support services.
EmpowHer Camp in New York provides girls with disabilities ages 13-18 with the opportunity to experience adventure, independence and personal growth in an accessible wilderness environment. The Honda USA Foundation grant will support adaptive outdoor activities that build confidence and independence, as well as educational programming that teaches practical life and leadership skills, including public speaking, self-advocacy and teamwork. Guide Dogs for the Blind Orientation and Mobility Immersion (OMI) Program offers training in Orientation and Mobility (O&M) and daily living skills to those who are blind or visually impaired to improve their mobility and independence. Funding will support classes held by O&M specialists to ensure that those with little or no vision have the mobility skills they need to live fulfilling, independent lives. Community
Honda invests in community partners that provide umbrella food security and social services to address critical needs in the communities where Honda associates live and work.
Through its partnership with Feeding America®, Honda will support local partner food banks that aim to end food insecurity and make access to healthy food easier. Honda will partner with local United Ways to advance health, enhance financial stability, and address societal needs for local communities. The full list of organizations receiving funding is available here. Honda and the Honda USA Foundation open their annual programmatic funding cycle each fall, with funding decisions made the following spring. To learn more, visit https://csr.honda.com/funding.
About Honda Corporate Social Responsibility and the Honda USA Foundation
For more than 65 years in the U.S., Honda has been committed to making positive contributions to the communities where its associates live and work. The company's mission is to create products and services that help people fulfill their life's potential, while conducting business in a sustainable manner and fostering an inclusive workplace. Advancing its corporate social responsibility, Honda and the Honda USA Foundation support this direction through giving focused on education, the environment, mobility, traffic safety, and community.
Learn more at https://csr.honda.com/.
Notice: Although the information included in this press release is accurate as of the date of publication, this information is subject to change at any time without notice. American Honda Motor Co., Inc. assumes no responsibility for updating this information.
SummaryCompaniesRetired executives blamed Mibe for China neglect, EV misstepsHonda board backed Mibe despite pressure on him to step downIndependent directors on Japanese boards have reduced influence of corporate alumniHonda has been battered by U.S. tariffs and rising competition from ChinaTOKYO, June 9 (Reuters) - Late last year, a handful of retired Honda Motor executives started meeting privately to discuss the Japanese automaker's troubles and the person they believed was the cause: Chief Executive Toshihiro Mibe.
Over months of text messages, as well as meetings and meals that sometimes included current executives, they laid out a case against the former engineer, according to a written summary of their discussions reviewed by Reuters and interviews with two participants.
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They blamed Mibe for neglecting China, the world’s biggest auto market, and making a "failed" bet on electric vehicles that would leave Honda with its first annual loss in seven decades. They accused him of paying more attention to Honda’s golf sponsorship than its business.
By April, the old guard had had enough. Former chief executive Nobuhiko Kawamoto, a participant in some of those conversations, visited Tokyo headquarters and told Mibe to resign, three people familiar with that meeting told Reuters.
Mibe, who remains in his role, didn’t budge.
The crisis at Honda is emblematic of the challenges facing traditional carmakers everywhere, though Japan's industry is hard hit. Its automakers are reliant on the U.S. market, where profits are being squeezed by President Donald Trump's tariffs and rollback of EV subsidies. Japanese consumers, meanwhile, have shown little appetite for EVs, which comprise a sliver of that market.
Honda and others face the expensive balancing act of defending their legacy businesses while developing EVs to compete elsewhere. Chinese firms have come to dominate the EV sector with cheap, software-laden vehicles that are rolled out in a fraction of the time it takes the Japanese, who have spent decades focused on reliability through painstaking manufacturing systems.
Honda last month backtracked on Mibe’s pledge to go all electric by 2040 and wrote down some $9 billion in EV-related costs after scrapping three cars in development. The total hit could come to $12 billion. That follows rivals including Ford, GM and Nissan, which have collectively written off more than $25 billion as they cancelled plans for new EV models and assembly lines.
This account of the leadership missteps and turmoil at Honda is based on a review of discussions among its alumni, as well as interviews with a dozen people, including current and former executives and key suppliers. It shows how Mibe has survived - at least for now - due to the backing of the board, even as he has lost the support of heavyweight former executives.
Honda said in a statement issued in response to Reuters questions that it had no knowledge of discussions by former executives. The company was working with suppliers to improve the car business through cost control and reallocation of resources, it said, while also deploying features like the latest driver-assistance software.
The carmaker also said that sports sponsorship was handled appropriately to enhance its brand and fulfill corporate social responsibility requirements.
Mibe, who became CEO in 2021, will accept a 30% pay cut for three months to take responsibility for the annual loss.
Kawamoto, the former chief executive, confirmed he met with Mibe but declined to comment further. He retains significant influence and has previously intervened in crises to force out a successor.
Just a year after a potential merger with Nissan foundered, Honda is at a critical point. The automaker says it is the world's largest maker of engines – powering everything from snowblowers to jets – yet its legacy of storied engineering may not be enough.
"I don't know the way out for them," said Jeffrey Rothfeder, author of the book "Driving Honda."
"Definitely in short order, it's going to be too late to turn it around."
Charts shows annual operating profit for Honda's car and motorcycle businesses.NEGLECTING THE ‘ACTUAL PLACE?’Honda has long carried the imprint of its late founder, Soichiro Honda. The blacksmith’s son was fiercely independent, hot-tempered and obsessed with engines.
His company developed two of the world's bestselling cars, the Civic and the Accord. It is also responsible for the Super Cub, the most popular motorcycle of all time.
Honda's old guard, however, worried the values of the "Oyaji," or old man, were being forsaken under Mibe, their communications show.
A key to Honda’s success has been a focus on the “genba,” or the “actual place” where work gets done. At Honda, that means salesrooms, factory floors and the roads where its products are used. Losing sight of it is an unpardonable sin for managers.
"The CEO does not see conditions on the ground or listen to customers, and doesn't go to the genba," the alumni said, according to the summary. "Senior management, including the CEO, do not visit the genba. Example: China."
While China's zero-COVID policy meant such trips were off-limits for part of Mibe's tenure, he has seldom visited since becoming CEO, according to one source. He has been an infrequent participant in China's annual auto show, the industry's biggest event and regularly attended by rival bosses.
During Mibe’s tenure, Honda's share of the Chinese market nosedived, falling from 8% in 2020 to less than 3% last year.
Honda said the focus on the genba remained at its core, even as it worked to become more competitive in a changing market. It declined to specify how many times Mibe had visited China but said that travel was conducted as necessary.
Mibe, the alumni argued, was too focused on Honda’s golf sponsorship, including playing rounds with Akie and Chisato Iwai, pro sisters supported by the company.
Mibe’s communication didn't always help his case. For instance, his defense of the EV-first strategy sometimes came across as tone-deaf and damaged morale, according to the executives.
In some ways, that stubbornness reflected Honda.
"Honda always wants to do everything on its own," said Koji Endo, chief executive analyst at SBI Securities. "This time, in the end, it did not go well at all."
Mibe this year turned down a proposal from a Japanese bank to hive off the EV business, according to a person familiar with those discussions.
External investment would have eased the burden of the struggling operation, but the CEO said Honda would fix the EV business itself, according to the person.
Mibe told Reuters last month that the move had been considered but "we've stopped pursuing that line of thinking for now."
Honda's independent streak also played out in China. Toyota and Nissan have already been working more closely with partners on EVs tailored to the specifications of local drivers. Honda only said this year it would do the same.
BACKED BY BOARDBy the time Mibe met with Kawamoto in April, the nominating committee of Honda's board had already decided he could stay on, one of the sources said.
Like many Japanese firms, Honda has in recent years created board committees with more outside directors as regulators push to improve corporate governance. That has reduced the influence of retired bosses, according to another person familiar with the automaker.
Honda’s nominating committee consists of Mibe and four outside directors, although he will step down from it later this month.
The carmaker did not respond when asked if Mibe participated in the committee’s discussions about his future beyond saying that top appointments were determined appropriately. The committee's chairperson did not respond to a request for comment.
Mibe has since outlined a plan to revive the cash-burning auto business, including shaving 30% off the cost of new hybrid powertrains.
Two executives at Honda suppliers in Japan, however, told Reuters they hadn't been consulted on potential cost-savings.
The auto unit's performance has hit more than just the bottom line. Tensions inside Honda deepened as staff at the motorcycle division - which made a record $4.6 billion profit last year - came to feel they were subsidizing the car business, the people said.
In an act that could help revitalize the culture of innovation the automaker prides itself on, Mibe in February shifted auto-development engineers from Honda itself back to an R&D subsidiary.
That undid a shake-up made before Mibe’s tenure, which eroded the independence engineers had enjoyed for decades, said Rothfeder. "They lost thousands of important R&D players who didn't want to work with marketing departments."
Some of the former executives expressed concern that engineers have since lapsed into bad habits, such as outsourcing component design to suppliers, the summary of their discussions shows. That made it harder to control costs, they said.
"Honda's ability to develop cars has declined, yet costs have not," said Endo.
Reporting by Norihiko Shirouzu in Austin, Texas, Daniel Leussink and Maki Shiraki in Tokyo; Additional reporting by Qiaoyi Li in Beijing; Writing by David Dolan; Editing by Katerina Ang
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Daniel Leussink is a correspondent in Japan. Most recently, he has been covering Japan’s automotive industry, chronicling how some of the world's biggest automakers navigate a transition to electric vehicles and unprecedented supply chain disruptions. Since joining Reuters in 2018, Leussink has also covered Japan’s economy, the Tokyo 2020 Olympics, COVID-19 and the Bank of Japan’s ultra-easy monetary policy experiment.
The 2017 Honda Ridgeline is unveiled at the North American International Auto Show in Detroit, January 11, 2016. REUTERS/Mark Blinch/File Photo Purchase Licensing Rights, opens new tab
CompaniesJune 10 (Reuters) - Honda Motor America (7267.T), opens new tab has recalled 880,514 vehicles in the United States over the failure of rear suspension components in the vehicles, the National Highway Traffic Safety Administration (NHTSA) said on Wednesday.
The recall includes certain Honda Pilot, Ridgeline, Passport, Acura MDX vehicles, the NHTSA said.
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The vehicles can experience failure of rear suspension components, such as the rear control arm which could lead to the loss handling and control, increasing the risk of a crash or injury.
As a remedy for the recall, dealers will inspect the rear subframe and install a rear subframe reinforcement kit and, as necessary, repair or replace the rear subframe components, free of charge.
Reporting by Gursimran Kaur in Bengaluru; Editing by Nivedita Bhattacharjee
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ToplineHonda is recalling hundreds of thousands of trucks and SUVs, including over 463,000 Honda Pilots, over a problem that could cause the vehicles’ rear subframes to corrode and cause drivers to lose control, the National Highway Traffic Safety Administration said.
A problem with the vehicles’ rear suspension could cause components to corrode, which could cause problems for drivers.
Copyright 2021 The Associated Press. All rights reserved.
Key FactsA total of 880,514 vehicles are impacted by the recall, the NHTSA said in a notice, which also include 2017-2023 Honda Ridgelines, 2019-2023 Honda Passports and 2014-2020 Acura MDXs.
More than half of the vehicles facing the recall are Honda Pilots, the manufacturer’s midsize SUV, with the model dates 2016 through 2022, according to a recall report.
The impacted vehicles were sold in 22 states: Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia and Wisconsin, as well as the District of Columbia.
According to the NHTSA, these vehicles have rear subframes that could corrode at mounting points, causing suspension components like the rear control arm to fail and put the driver at risk for losing control of the vehicle.
There have been no reports of deaths, injuries or warranty claims related to the subframes as of May.
Surprising FactAll of the vehicles impacted by the recall were sold in the so-called “salt belt,” the region of the U.S. where roadways are frequently treated with de-icing salt during the winter months. Some of the vehicles sold might face “premature paint peeling,” an NHTSA recall report found, which could cause premature corrosion in regions that rely heavily on road salt. Drivers of impacted vehicles should watch for “abnormal noise or vibration” coming from their rear suspensions as a warning sign for a potentially corroding subframe, the NHTSA said, and monitor changes in how their vehicle handles.
What to Watch ForNotification letters for owners of impacted vehicles are expected to be mailed by July 7, the NHTSA said. Owners will then be asked to take their vehicles to authorized Honda or Acura dealers to install a reinforcement kit and repair or replace any damaged components.
Honda is recalling more than 880,000 SUVs and pickup trucks in the U.S. because a key rear suspension part can rust and fail, increasing the risk of a crash.
The recall covers 880,514 vehicles, including certain 2016-2022 Honda Pilot, 2017-2023 Honda Ridgeline, 2019-2023 Honda Passport and 2014-2020 Acura MDX models, according to the National Highway Traffic Safety Administration (NHTSA).
The issue involves the rear subframe, a structural component underneath the vehicle that helps support the rear suspension. In states where road salt is commonly used during winter, the rear subframe may corrode over time.
The recall covers 880,514 vehicles. (Justin Sullivan/Getty Images)
"As the corrosion progresses, material thinning and driving vibrations could cause the mounting area to fracture and fail," NHTSA said.
MORE THAN 1 MILLION JEEP VEHICLES RECALLED OVER FIRE RISK AS OWNERS WARNED NOT TO PARK INSIDE
Drivers may notice abnormal noises or vibration from the rear suspension, as well as changes in vehicle handling while driving, the agency added.
The affected vehicles were sold in states including Connecticut, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin and Washington, D.C., among others, according to NHTSA.
KIA RECALLS 6K VEHICLES DUE TO POSSIBLE SEAT BELT DEFECT THAT COULD RAISE INJURY RISK
Ticker Security Last Change Change % HMC HONDA MOTOR CO. LTD. 26.44 -0.63 -2.33% Honda dealers will inspect the rear subframe and install a reinforcement kit. If necessary, they will also repair or replace rear subframe components at no cost to owners.
The automaker said it had received no reports of injuries or deaths in the U.S. related to the issue as of May 28.
Honda shares were down 1% in late afternoon trading and are down more than 10% year to date.
SUBARU RECALLS NEARLY 70,000 SUVS AFTER MOONROOF PANELS DETACH WHILE DRIVING
A view of a Honda Passport SUV in Walnut Creek, California, on Jan. 30, 2020. (Smith Collection/Gado/Getty Images)
The recall comes after Honda announced last month that it was recalling nearly 99,000 vehicles in the U.S. over a separate defect that could cause airbags to deploy unexpectedly during a crash.
The Honda logo is seen on the wheel of a car, on the forecourt of a Honda dealer in Brighton southern England April 6, 2011. Honda Motor said it would cut UK manufacturing volumes by half from... Purchase Licensing Rights, opens new tab Read more
CompaniesJune 11 (Reuters) - Honda Motor America (7267.T), opens new tab is recalling 1,049,883 vehicles in the United States due to a defect in the tyre repair kit, the National Highway Traffic Safety Administration (NHTSA) said on Wednesday.
The issue involves a faulty sealant bottle, in which pressure can build up, potentially causing the cap to detach and become a projectile, the regulator said.
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The recall includes certain Honda Accord Hybrid, CR-V Fuel Cell EV, and CR-V Hybrid vehicles, the U.S. safety regulator said.
As a remedy for the recall, dealers will replace the tire repair kit nozzle or sealant bottle, free of charge.
Reporting by Anusha Shah in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich
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Over the last few months, SpaceX has been preparing for its long-awaited initial public offering (IPO). While institutional money managers and company insiders will receive the largest IPO allocations, retail investors are not entirely shut out of the listing.
Through select brokerages partnering with SpaceX's underwriters, everyday investors can request shares during the offering window. Successfully participating in the offering will depend on timing, eligibility, and a thorough understanding of how the IPO process works.
Image source: Getty Images.
How does the IPO process work? An IPO process starts once a company files an S-1 with the Securities and Exchange Commission (SEC). This document outlines a company's business model, financial profile, and underlying risks. Subsequently, the underwriters -- large investment banks -- conduct a roadshow to gauge demand from institutional buyers. This helps them determine an initial price range for the offering.
In the case of SpaceX, the lead underwriters are Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase. SpaceX is set to list on the Nasdaq exchange under the symbol SPCX. Once the final IPO price is set (expected in early June), shares are allocated to participating firms and accredited investors. A small portion is often reserved for retail brokerages as well. The IPO is expected to take place on June 12.
Retail access to SpaceX shares will be available through certain brokerages that have been able to secure allocations from the underwriters.
Charles Schwab (SCHW +2.65%) is one of the major brokerage firms that has secured access to the SpaceX IPO. Clients can participate by visiting the IPO calendar on Schwab's website and submitting a conditional offer to purchase (COTP) during the open window. The COTP window is typically before 4 p.m. ET the day before pricing. Once the IPO price is finalized, investors must affirm their order by 7 a.m. the next morning. For the SpaceX IPO, investors must have a minimum account balance of $100,000 to participate.
Robinhood Markets (HOOD +1.04%) users follow a similar path through the app's IPO Access feature. Simply search for the SpaceX offering, confirm eligibility, and submit a request for the desired number of shares. Similarly, SoFi Technologies (SOFI 0.51%) users with an Active Investing account can submit a non-binding indication of interest (IOI) in the SoFi IPO Center, answer eligibility questions, and wait for a confirmation notification the day before the listing. Neither Robinhood nor SoFi requires a minimum balance to participate in the SpaceX IPO.
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Is investing in SpaceX risky? Smart investors need to understand that brokerages can't guarantee their orders will be filled. Allocations are limited, and high-demand offerings usually result in partial fills or sometimes none at all.
Beyond allocation uncertainty, investing in IPOs carries other risks. Newly public companies often experience extreme price swings. Valuation might become inflated by hype-driven narratives, despite the realities of SpaceX's financial profile reflecting a capital-intensive nature. Stocks may surge on their first day of trading only to give back these gains in the following months as lock-up periods expire and early investors cash out.
Broadly speaking, IPOs are speculative and best suited for investors who can stomach outsize volatility. If you are interested in gaining exposure to a SpaceX IPO allocation, it's important to treat the investment as a high-risk, high-reward position within a diversified portfolio rather than a core holding for now. By approaching the process with prudent diligence and realistic expectations, retail investors can participate in the SpaceX offering without overextending themselves.
Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. Adam Spatacco has positions in SoFi Technologies. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool recommends Charles Schwab and Nasdaq and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
Robinhood Markets (HOOD +1.04%), a commission-free trading platform for stocks and crypto, closed Friday at $94.30, up 11.15%. The stock moved higher as investors reacted a slew of good news, including a regulatory green light for U.S. perpetual futures trading.
Trading volume reached 63.6 million shares, coming in about 122% above its three-month average of 28.6 million shares. Robinhood Markets IPO'd in 2021 and has grown 148% since going public.
How the markets moved todayThe S&P 500 (^GSPC +0.50%) added 0.22% to finish Friday at 7,580, while the Nasdaq Composite (^IXIC +0.31%) rose 0.20% to close at 26,973. Within financial stocks, industry peers Charles Schwab (SCHW +2.65%) closed up 2.34% at $87.35 and Interactive Brokers Group (IBKR +2.23%) finished up 4.64% at $86.97, reflecting broader strength across brokerage platforms.
What this means for investorsRobinhood’s performance often mirrors that of lead cryptocurrency Bitcoin, but the pioneering brokerage broke that trend this week: It has gained 24% in the past five days while Bitcoin’s price has fallen by almost 5%.
Today’s increase comes as Mizuho lifted its price target for Robinhood from $110 to $115. Yesterday, Citizens also reiterated its “market outperform” rating and $155 price target. One reason for positive analyst sentiment was news that Robinhood users will be able to connect AI agents to their accounts to make trades or credit card purchases.
Another boost came from the Commodity Futures Trading Commission (CFTC) as it announced it would allow U.S. firms to offer perpetual futures trading. Perpetual futures are a type of derivative contract that has become popular in the crypto world.
For investors, Robinhood is still a volatile investment. However, it is making big strides in growing its user base and reducing its reliance on crypto trading, both of which could help it outperform in the years to come.
Charles Schwab is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Interactive Brokers Group. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
WESTLAKE, Texas--(BUSINESS WIRE)--Charles Schwab, a leader in investing and trading with $12.61 trillion in total client assets and 10.3 million daily average trades in April 2026, today announced the latest enhancements to the Charles Schwab trading experience across its trading platforms, including Schwab.com, Schwab Mobile, and the thinkorswim platform suite, continuing its ongoing commitment to introducing new features based on client feedback.
“A diverse range of clients seek out Schwab for the best-in-class trading experience we offer, from our award-winning platforms to our 24-hour specialized support and education,” said James Kostulias, Managing Director and Head of Trading Services, Charles Schwab. “As retail trading continues to advance, we’re committed to adding features and resources that expand our offering and make Schwab an even more compelling place to trade.”
New Features and Updates on Schwab’s Trading Platforms
Schwab has introduced the following enhancements and features on its trading platforms.
Now available on thinkorswim:
24/7 Cryptocurrency Futures Trading: Select cryptocurrency futures (Bitcoin, Ether, Solana and Ripple products) are now available to trade nearly 24 hours a day, seven days a week, on all thinkorswim platforms. Coming Soon: Specified Lots: Clients using thinkorswim desktop can now choose which tax lots are designated to be sold for each sell through the Order Rules section of the order ticket. Coming Soon: paperMoney® Enhancements: Clients using the desktop version of thinkorswim paperMoney (desktop only) can utilize a new Order Gadget to place trades and gain new pre-confirmation insight into: Individual pricing for each options leg; Maximum profit, maximum loss, breakeven, and estimated cost of the trade prior to confirmation; The full options chain, visible below the pricing information for the options. Now available on Schwab.com:
Expected Price Range: The Research page now includes expected price range information for marginable securities, allowing margin clients to better understand their risk and to manage their transactions and accounts accordingly. Fundamentals Columns: Clients can now see more fundamental data about their positions on the Positions page. Now available on Schwab Mobile:
Mobile Dividend Reinvestment: Clients can now adjust their dividend reinvestment enrollment settings for stocks, ETFs and Mutual Funds via the Schwab Mobile app Positions page. Collapsed Chains on Options Chains: The Options Chain screen now defaults to all expirations collapsed. Enhanced Fixed Income Positions – The Fixed Income Positions page now includes a description to Table View for Fixed Income Symbols. Order Status Quotes: A new customizable view expands default quotes data to include: Equities: Bid, Ask, Last Options: Bid, Mid, Ask Mutual Funds: Net Asset Value (NAV) Order Status for Walk Limit Orders: A new display summarizes the current status of the walk range. Fractional Shares Trading Made Easier
Across all platforms, Schwab has also expanded fractional trading capabilities to include most U.S. stocks and ETFs, with a new minimum investment of $1. Now, instead of accessing fractional shares trading via a separate experience, clients can select a dollar amount rather than number of shares right within Schwab’s trade ticket.
“Fractional shares trading lowers barriers to entry and gives clients greater simplicity and flexibility,” Kostulias added. “They can be a powerful tool for a wide range of investors, from those who may be priced out of higher-cost stocks to more seasoned traders who prefer to trade notionally, in dollar amounts rather than whole shares.”
More on fractional shares trading, including how to gift fractional shares to loved ones, can be found at www.schwab.com/fractionalshares. For more information about trading tools at Schwab, visit www.schwab.com/trading.
Disclosures
Investing involves risk, including loss of principal, and for some products and strategies, loss of more than your initial investment.
Equity and index options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.
Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options prior to trading futures products.
Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).
Read additional CFTC and NFA futures and forex public disclosures for Charles Schwab Futures and Forex LLC.
Futures and futures options trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify.
Charles Schwab Futures and Forex LLC is a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member.
Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
Virtual Currency Derivatives trading involves unique and significant risks. Please read NFA Investor Advisory – Futures on Virtual Currencies Including Bitcoin and CFTC Customer Advisory: Understand the Risk of Virtual Currency Trading.
You should carefully consider whether trading in virtual currency derivatives is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.
Please note that virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Virtual currencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional fiat currencies. Profits and losses related to this volatility are amplified in margined futures contracts.
System availability and response times are subject to market conditions and mobile connection limitations.
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube, and LinkedIn.
Key Takeaways Schwab added 24/7 trading for select crypto futures on thinkorswim, including Bitcoin and Ether.SCHW is expanding $1 fractional trading to U.S. stocks and ETFs, placing dollar-based trades from the ticket.Schwab had $12.61T client assets in April 2026, plus 1.3M new accounts and $140B core net new assets in Q1. Charles Schwab’s (SCHW - Free Report) latest trading platform upgrades underscore its push to deepen client engagement and defend its share in an increasingly competitive brokerage market. The company has introduced 24/7 trading for select cryptocurrency futures, including Bitcoin, Ether, Solana and Ripple products, across its thinkorswim platforms. The move gives active traders broader access to digital-asset-linked derivatives and aligns Schwab with the industry’s shift toward around-the-clock market participation.
The enhancements are not limited to crypto. Schwab is expanding fractional trading to most U.S. stocks and ETFs with a minimum investment of just $1, allowing clients to place dollar-based trades directly from the regular trade ticket. This simplifies access for newer investors while giving experienced traders greater flexibility in portfolio construction.
Additional updates across Schwab.com and Schwab Mobile include expected price range data for marginable securities, expanded fundamentals columns, improved dividend reinvestment controls, enhanced options-chain navigation and better order-status visibility. These features improve transparency, usability and execution confidence, important factors in retaining self-directed investors.
The upgrades come from a position of scale. Schwab had $12.61 trillion in client assets as of April 2026 and recorded 10.3 million daily average trades that month. In the first quarter, the company added 1.3 million brokerage accounts and attracted $140 billion in core net new assets.
While pricing pressure and intense competition from Robinhood Markets (HOOD - Free Report) and Interactive Brokers Group (IBKR - Free Report) remain challenges, Schwab’s product depth, thinkorswim franchise and broad wealth platform give it meaningful advantages. These upgrades may not transform growth overnight, but they strengthen its case for sustained market share gains.
What are Rivals Robinhood and IBKR Doing?Robinhood is broadening beyond zero-commission trading with AI-enabled “agentic” investing, allowing users to connect AI agents for stock trading and portfolio analysis. It is also expanding into prediction markets, private-market access through Robinhood Ventures Fund I, digital banking and credit-card services.
Similarly, Interactive Brokers is leaning into sophisticated traders with AI integration through Claude, enabling clients to research portfolios and generate trade instructions for approval. Interactive Brokers has also expanded crypto access with Coinbase Derivatives nano Bitcoin and Ether futures, perpetual-style contracts and 24/7 crypto trading within a unified multi-asset platform.
Schwab’s Price Performance & Zacks RankShares of SCHW have lost 8.7% over the past three months against the industry’s rally of 5.5%.
Image Source: Zacks Investment Research
At present, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of The Charles Schwab Corporation (SCHW - Free Report) have gained 0.3% over the past four weeks to close the last trading session at $88.84, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $114.95 indicates a potential upside of 29.4%.
The average comprises 20 short-term price targets ranging from a low of $84.00 to a high of $137.00, with a standard deviation of $11.46. While the lowest estimate indicates a decline of 5.5% from the current price level, the most optimistic estimate points to a 54.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SCHW. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SCHW Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2.2%, as eight estimates have moved higher compared to no negative revision.
Moreover, SCHW currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SCHW could gain, the direction of price movement it implies does appear to be a good guide.
Retail investors are racing to buy into pre-IPO names like SpaceX and Anthropic through new Charles Schwab (NYSE:SCHW) products.
Top venture capitalists Brad Gerstner and Jason Calacanis admitted at the weekend’s All-In Liquidity Summit that they are quietly selling on the other side of those trades.
“We are selling into this,” Gerstner said at the All-In Liquidity Summit on Saturday, framing the moves as fiduciary duty to limited partners rather than a top call.
Secondary Volume Doubles 2021 PeakSecondary market volume is running at roughly double the 2021 peak, with employee secondaries at Anthropic, Anduril and SpaceX now representing 31% of all primary venture activity in 2025, according to panel data.
Shares are trading at a 6% premium to last round prices, reversing the 80-cent-on-the-dollar discounts that defined the post-zerp era.
Gerstner said his firm Altimeter Capital regularly tells founders it plans to sell 30% of its position, despite their objections. “My job as a fiduciary to the LPs is to do that,” Gerstner said.
Calacanis said his syndicate now sells alongside founders the moment portfolio companies cross $500 million valuations, taking the same price and the same exit. “I’m going to sell right alongside you so that I can invest in the next you coming into the market,” Calacanis said.
Schwab Pitch Convinces Founders To Allow SalesForge Global CEO Kelly Rodriques said his platform’s new tie-up with Schwab gives founders a fresh pitch for permitting SPVs and secondary sales: direct retail distribution to 46 million Schwab clients and $12 trillion in assets.
Rodriques said the pitch worked on Elon Musk, with Schwab now named as one of the retail allocations for the SpaceX IPO at the offer price.
New interval funds with $500 minimums are also bringing unaccredited investors into SpaceX exposure for the first time.
Prediction Markets Eye June ListingPolymarket traders price the SpaceX listing happening by June 15th at 98%, with reports suggesting a valuation between $1.75 trillion and $2 trillion.
Gerstner flagged 14 leveraged ETFs queued to launch on the SpaceX IPO day at the high end of that range, calling it a retail-mania signal.
“We may not be at the top, but we ain’t at the bottom,” Gerstner said.
The rush of retail money raises concerns that everyday investors are serving as exit liquidity for venture funds locking in decade-long gains.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
Liz Ann Sonders, Charles Schwab, joins 'Closing Bell' to discuss what the latest market action means for equities, the impact of the SpaceX IPO and much more.
WESTLAKE, Texas--(BUSINESS WIRE)--At a time when speculative financial products and get‑rich‑quick schemes are increasingly available to young people, Charles Schwab Foundation today announced a $2.85 million, multi‑year expansion of its partnership with SIFMA Foundation to broaden access to high‑quality, credible investing education for students nationwide.
The expanded investment builds on a nearly decade‑long partnership between Charles Schwab Foundation and SIFMA Foundation and advances a shared focus on equipping young people with trusted investing knowledge in an increasingly complex financial landscape.
Through this funding, Charles Schwab Foundation is supporting SIFMA Foundation’s multi-year plans to reach more young people, including expanding the following key programs:
The integration of SIFMA Foundation’s Stock Market Game™ into Boys & Girls Clubs of America’s Money Matters curriculum, pairing SIFMA Foundation’s expertise with BGCA’s unparalleled reach to bring hands‑on learning to millions more young people nationwide. The Capitol Hill Challenge™, a national financial education and investing competition that matches public middle and high school students with Members of Congress to build real‑world financial and investing knowledge and civic engagement, with an emphasis on schools serving students from under-resourced communities that are less likely to have access to investing education and hands-on experience. The Stock Market Game™ Summer Session, extending investing education beyond the school year into homes, camps, libraries, and community spaces to enable students to continue practicing investing skills while they are out of school. “Today’s young people are navigating more financial information and misinformation than ever before,” said Chris Wyse, Chief Corporate Affairs Officer and Chair of the Board of Charles Schwab Foundation. “In this environment, it’s critical that students learn the difference between speculation and investing, hype and fundamentals. By expanding our partnership with SIFMA Foundation and integrating The Stock Market Game™ into trusted programs like Boys & Girls Clubs’ Money Matters, we’re helping young people build real knowledge, confidence, and decision‑making skills that support their financial futures.”
“This expanded partnership allows us to significantly increase the scale and reach of investing education for young people,” said Melanie Mortimer, President of SIFMA Foundation. “With support from Charles Schwab Foundation, we’re meeting students where they are with engaging, credible programs that build lasting understanding of investing and its role in long‑term financial well‑being.”
The investment in SIFMA Foundation is part of Charles Schwab Foundation’s broader commitment to youth financial education. Over the next three years, the Foundation has committed more than $20 million to support nonprofit partners focused on building financial knowledge, confidence, and practical skills for young people across the country.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity. More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube and LinkedIn.
About Charles Schwab Foundation
Charles Schwab Foundation is an independent nonprofit public benefit corporation, funded by The Charles Schwab Corporation and classified by the IRS as a charity under section 501 c 3. Its mission is to help people of all backgrounds achieve brighter futures by advancing financial literacy and fostering stronger communities. More information is available at www.schwabmoneywise.com/foundation.
Charles Schwab Foundation is a 501(c)(3) nonprofit, private foundation funded by The Charles Schwab Corporation. It is not part of Charles Schwab & Co., Inc. or its parent company, The Charles Schwab Corporation. The Foundation and The Charles Schwab Corporation and its affiliates are unaffiliated with SIFMA Foundation and Boys & Girls Clubs of America.
About the SIFMA Foundation
The SIFMA Foundation is dedicated to expanding economic opportunity by increasing financial knowledge and access for individuals of all backgrounds. Through the support of educators, families, industry partners, and the financial services community, the Foundation delivers engaging financial education programs that build life skills, academic achievement, and long-term financial confidence. Since 1977, its flagship program, The Stock Market Game™, has helped nearly 24 million students develop investing knowledge, critical thinking skills, and an understanding of the global marketplace.
In addition to The Stock Market Game™, the Foundation offers free programs such as the Summer Stock Market Game and Family InvestQuest™ (Family IQ), which help young people and families learn about saving, investing, compound growth, and wealth-building through hands-on, accessible experiences. Together, these programs encourage lifelong financial well-being, support learning beyond the classroom, and empower participants to make informed financial decisions for the future. For more information, visit www.sifma.org/foundation, www.stockmarketgame.org, or www.familyinvestquest.org.
Schwab U.S. Small-Cap ETF (SCHA +1.16%) offers lower costs and broader diversification, while iShares Core S&P Small-Cap ETF (IJR +0.97%) provides a more concentrated portfolio with slightly lower historical volatility.
Small-cap stocks can offer significant growth potential but often experience greater price swings than their large-cap counterparts. This comparison compares two popular low-cost options that track different small-cap indexes to help investors determine which best fits their risk profile and diversification needs.
Snapshot (cost & size)MetricIJRSCHAIssueriSharesSchwabExpense ratio0.06%0.04%1-yr return (as of June 10, 2026)30.3%36.2%Dividend yield1.15%1.00%Beta1.141.26Assets under management (AUM)$103.6 billion$22.4 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The one-year return represents total return over the trailing 12 months. Dividend yield is the trailing 12-month distribution yield.
The Schwab fund is the more affordable option with an expense ratio of 0.04%, slightly lower than the 0.06% fee for the iShares fund. Regarding income, IJR offers a marginally higher payout of 1.15% compared to SCHA’s 1.00%.
Performance & risk comparisonMetricIJRSCHAMax drawdown (5 yr)(28.00%)(30.80%)Growth of $1,000 over five years (total return)$1,312$1,373What's insideThe Schwab U.S. Small-Cap ETF (SCHA) was launched in 2009 and tracks a much broader set of 1,706 holdings. Its sector exposure tilts toward technology at 23.00%, financial services at 16.00%, and industrials at 16.00%. Its largest positions include Sandisk at 4.98%, Lumentum at 1.33%, and Revolution Medicines at 0.63%. Over the trailing 12 months, it paid $0.34 per share in dividends.
In contrast, the iShares Core S&P Small-Cap ETF (IJR) was launched in 2000 and follows a narrower index of 641 stocks. Its sector distribution is more balanced, with financial services, industrials, and technology each representing 16.00% of the fund. Its top holdings include Sanmina (0.79%), Viavi Solutions (0.75%), and Semtech (0.75%). Over the same trailing 12-month period, it paid $1.60 per share in dividends.
For more guidance on ETF investing, check out the full guide at this link.
Which ETF is the better buy?Since late 2009, IJR and SCHA have delivered nearly identical annualized total returns of 12.6% and 12.3%, respectively. Not only are their total returns similar, but they both have uber-low expense ratios, comparable betas, and proximate dividend yields. However, there are a couple of reasons I might lean toward buying IJR over SCHA.
First, since IJR tracks an S&P Small Cap Index, the stocks it holds must meet a minimum level of profitability, whereas SCHA’s holdings do not. While the two ETFs’ returns have been largely similar over time, I just prefer the comfort of knowing IJR’s holdings are likely somewhat safer and more robust should we head into a recession or a similar pullback.
Second, since Sandisk has been a 39-bagger over just the last year, it has grown to become a somewhat uncomfortable 5% portion of SCHA’s holdings. While I’m all for letting stocks run as far as possible in my personal portfolio, that may not be the best approach for a small-cap ETF that’s supposed to be deeply diversified, and may not be suitable for certain investors.
Ultimately, I don’t think investors can go wrong with either of these ETFs, thanks to their low costs, steady returns, and exposure to a market niche most investors are probably chronically underinvested in. However, I’d lean ever-so-slightly to IJR for the two reasons mentioned.
WESTLAKE, Texas--(BUSINESS WIRE)--Schwab Asset Management®, the asset management arm of The Charles Schwab Corporation and the fifth-largest provider1 of ETFs, today announced the reduction of operating expense ratios for four equity index ETFs: the Schwab U.S. Mid-Cap ETF (SCHM), Schwab U.S. Small-Cap ETF (SCHA), Schwab International Small-Cap Equity ETF (SCHC), and Schwab Emerging Markets Equity ETF (SCHE). The fee reductions are effective June 11, 2026. Out of Schwab Asset Management’s 24 market-cap weighted, index equity and fixed income ETFs, 16 are now offered at only 3 basis points (bps).
“Schwab is proud to leverage our growth and efficiencies to drive down costs for investors to better help them achieve their investment goals,” said Nicohl Bogan, Director of Product Strategy and Development, Schwab Asset Management. “With today’s fee reductions, building a diversified, index-based portfolio is more cost-effective than ever before with Schwab index ETFs.”
Schwab Equity Index ETF Expense Ratio Changes
Name of Fund (Ticker)
Operating Expense Ratio Prior to June 11
Operating Expense Ratio After June 11
Schwab U.S. Mid-Cap ETF (SCHM)
0.04%
0.03%
Schwab U.S. Small-Cap ETF (SCHA)
0.04%
0.03%
Schwab International Small-Cap Equity ETF (SCHC)
0.08%
0.06%
Schwab Emerging Markets Equity ETF (SCHE)
0.07%
0.06%
With these fee reductions, an investor can construct a U.S. diversified portfolio that includes large-, mid- and small-cap equities; treasury, corporate and municipal bonds; and diversifying asset categories like REITs, utilizing Schwab market cap-weighted index ETFs, that have expense ratios ranging from 3 bps to 7 bps. In nominal terms, that means an investor with $10,000 would incur annual fund expenses of approximately $3 to $7, depending on the applicable expense ratio2.
Extending that portfolio to include international equities such as developed markets, emerging markets and international dividend equities, expense ratios range now from 3 bps to 8 bps. Thinking of that same investor with $10,000, the annual fund expenses would be approximately $3 to $8.3
To learn more about Schwab Asset Management’s entire lineup of ETFs, visit www.schwabassetmanagement.com.
About Schwab Asset Management
One of the industry’s largest and most experienced asset managers, Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. By operating through clients’ eyes, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of March 31, 2026, Schwab Asset Management managed approximately $1.6 trillion on a discretionary basis and $42.5 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube and LinkedIn.
Disclosures:
Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can view and download a prospectus by visiting https://www.schwabassetmanagement.com/prospectus. Please read it carefully before investing.
Investing involves risk, including loss of principal. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.
Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management is a separate but affiliated company and subsidiary of The Charles Schwab Corporation and is not affiliated with SIDCO.
0626-V56M
1 Source: Lipper, March 31, 2026.
2 Source: Schwab Asset Management. Calculated using the Schwab U.S. cap-weighted index ETF with the lowest operating expense ratio at 3 bps and the Schwab U.S. cap-weighted index ETF with the highest operating expense ratio at 7 bps at an annual rate on a $10,000 initial investment portfolio. Expense ratios are as of June 11, 2026.
3 Source: Schwab Asset Management. Calculated using the Schwab international cap-weighted index ETF with the lowest operating expense ratio at 3 bps and the Schwab international cap-weighted index ETF with the highest operating expense ratio at 8 bps at an annual rate on a $10,000 initial investment portfolio. Expense ratios are as of June 11, 2026.
WESTLAKE, Texas--(BUSINESS WIRE)--The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2026 include:
Core net new assets brought to the company increased 43% versus May 2025 to reach $49.9 billion – a record for the month of May. Total client assets equaled $13.14 trillion as of month-end May, up 27% from May 2025 and up 4% compared to April 2026. New brokerage accounts opened during the month totaled 461,000, an increase of 37% versus May 2025. Client margin loan balances were up 38% from year-end to $154.6 billion including $37.4 billion related to long/short strategies. Daily average trades reached a record 11.8 million, driven primarily by robust engagement in equities and exchange traded fund products. About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 39.5 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.3 million banking accounts, and $13.14 trillion in client assets as of May 31, 2026. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services™. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
The Charles Schwab Corporation Monthly Activity Report For May 2026 2025
2026
Change May
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mo. Yr. Number of Trading Days 21.0
20.0
21.5
21.0
21.0
23.0
18.5
21.5
20.0
19.0
22.0
21.0
20.0
Market Indices (at month end) Dow Jones Industrial Average® 42,270
44,095
44,131
45,545
46,398
47,563
47,716
48,063
48,892
48,978
46,342
49,652
51,032
3%
21%
Nasdaq Composite® 19,114
20,370
21,122
21,456
22,660
23,725
23,366
23,242
23,462
22,668
21,591
24,892
26,973
8%
41%
Standard & Poor’s® 500 5,912
6,205
6,339
6,460
6,688
6,840
6,849
6,846
6,939
6,879
6,529
7,209
7,580
5%
28%
Client Assets (in billions of dollars) Beginning Client Assets 9,892.2
Client Cash as a Percentage of Client Assets (8) 10.1
%
9.9
%
9.7
%
9.5
%
9.4
%
9.3
%
9.4
%
9.7
%
9.3
%
9.3
%
9.9
%
9.2
%
8.9
%
(30) bp
(120) bp
Net Buy (Sell) Activity (in billions of dollars) (9) Mutual Funds (3.2
)
(5.4
)
(3.4
)
(2.2
)
(4.8
)
(6.3
)
(7.3
)
(3.6
)
(0.9
)
(2.4
)
(8.5
)
(5.7
)
(7.4
)
Exchange-Traded Funds (ETFs) 21.9
19.4
25.8
23.0
25.6
28.1
24.9
39.8
34.8
37.4
25.3
27.4
34.2
(1)
Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. (2)
Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods. (3)
Includes accounts in Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. (4)
Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of May 2026, margin loans totaled $37.4 billion and short credits totaled $38.9 billion. (5)
For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index. (6)
Represents average total interest-earning assets on the Company's balance sheet. Beginning in December 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly. (7)
Transactional sweep cash includes bank sweep deposits, and broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs. (8)
Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank. (9)
Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions. N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful. More News From The Charles Schwab Corporation
Charles Schwab (SCHW +2.65%) was having a fine Friday on the stock market. The company released its latest set of monthly metrics, and investors clearly found them encouraging. These folks were trading the storied brokerage's stock up by 2.6% in mid-afternoon action, edging past the 1.8% increase of the S&P 500 index at that point.
A busy month In the update, Schwab led off with its core net new assets figure, as it set a new record for the month of May. All told, the metric leaped 43% year over year to $49.9 billion. This helped lift total client assets by 27% to $13.1 trillion.
Image source: Getty Images.
In terms of activity, daily average trades hit a new record, too. These amounted to 11.8 million, which Schwab said was due to high demand for stocks and exchange-traded fund (ETF) products.
Fresh arrivals to the client ranks also affected these metrics. The financial services company revealed that 461,000 new brokerage accounts were opened in May, up 37% from the year-ago tally.
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Quite an effective middleman The capital markets remain frothy, and as long as they thrive, Schwab will earn plenty of coin servicing clients eager to participate in them. Personally, as a longtime Schwab shareholder, I was especially impressed by the strong increase in new brokerage accounts; this indicates the company isn't resting on its laurels but is making concentrated efforts to capture new business.
Charles Schwab is an advertising partner of Motley Fool Money. Eric Volkman has positions in Charles Schwab. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
Connecting Excellence Group Plc (AQSE:XCE, OTCQB:XCELF), the AQSE-listed executive recruitment business that operates a Bitcoin treasury strategy, has appointed Carlos Benito-Garcia as chief performance and growth officer to accelerate the growth of its Spencer Riley operation.
Benito-Garcia brings more than 30 years of leadership experience spanning executive recruitment and the global pharmaceutical sector, including senior roles at GSK, Pfizer, AstraZeneca and IQVIA, where he led a 2,500-strong organisation.
His most recent decade has been spent in executive search, including a role helping scale a Leeds-based firm from inception to more than 70 consultants within three years, and an international leadership position at Antal International across a franchise network of more than 120 offices in 30 countries.
At Connecting Excellence Group, he will lead talent attraction, shape the group's acquisition strategy and oversee the development of new operating subsidiaries.
Chief executive Scott Ellam said Benito-Garcia brought "a powerful combination of deep commercial leadership, operational discipline, and a proven ability to scale recruitment businesses at pace."
Tertiary Minerals PLC (AIM:TYM, OTC:TTIRF, FRA:TMU) has published an exploration target for a silver, copper and zinc prospect in Zambia, estimating it could contain between 15 and 30 million tonnes of mineralisation at an average grade of 40 to 60 grams per tonne silver equivalent.
This is an early-stage estimate of the potential scale of a deposit, and further drilling is needed before the company can confirm whether economic quantities of metal are present.
The target, known as A1, sits within the Mushima North project in northwest Zambia, around 28 kilometres from the historic Kalengwa copper-silver mine, one of the highest-grade copper deposits ever mined in the country.
At the upper end of the range, the target implies up to 58 million ounces of silver equivalent, a figure that also incorporates the copper and zinc content of the deposit.
The AIM-listed miner said the target remains open in several directions and at depth, suggesting further upside, and that several other untested prospects lie within 12 kilometres of A1.
Managing director Richard Belcher said reporting an exploration target marked "a significant milestone for the company on its projects in Zambia" and provided valuable information on the possible future resource potential.
"The modelling will be used to support the planning of the upcoming drill programme with the aim of reporting a maiden Mineral Resource Estimate by the end of 2026.
"These are exciting times for the company as we continue to advance our project portfolio to deliver value to our shareholders. I look forward to providing further updates in due course."
Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) shares rose 3.6% in early trading after the mining giant said its iron ore port operations in Western Australia had largely resumed following tropical cyclone Narelle.
The FTSE 100 company said three of its four Pilbara port terminals, including East Intercourse Island, had restarted ship loading on 28 March, with repairs underway at the fourth, Cape Lambert A, expected to be completed within days.
Port closures began on 24 March as the cyclone passed over the Pilbara, a remote coastal region in northwest Australia that is home to the world's largest iron ore export operations.
Combined with tropical cyclone Mitchell in February, recent weather events have disrupted around 8 million tonnes of shipments, of which Rio Tinto said it had identified a pathway to recover approximately half.
Despite the disruption, the company left its full-year Pilbara shipment guidance unchanged at 323 to 338 million tonnes.
Rio shares are down over 7% since the start of the Iran war at the end of last month, though off their worst.
Last week, Rio Tinto told investors that a new A$2 billion funding partnership with the Queensland and Commonwealth governments will help secure the long-term future of the Boyne aluminium smelter in Gladstone, keeping the operation internationally competitive beyond its current power contract.
Shares in Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM) rose 10% to 40.20p after the company published a definitive feasibility study for its Kasiya rutile and graphite project in Malawi, confirming a pre-tax net present value of $2.2 billion against initial capital expenditure of $727 million.
The study, completed with technical oversight from Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF), projects steady-state annual EBITDA of $476 million and free cash flow of $452 million over a 25-year mine life, with total revenue of $16.2 billion.
Kasiya hosts the world's largest natural rutile deposit and the second-largest flake graphite deposit, with the project expected to produce 222,000 tonnes of rutile and 275,000 tonnes of graphite annually at full capacity.
Both minerals are classified as critical by the United States and the European Union, with titanium in particular facing acute supply chain pressure as China accounts for 70% of global titanium sponge production and the US remains 100% import-dependent.
Non-binding offtake agreements cover more than 50% of Stage 1 rutile production with Japanese trading house Mitsui and more than 35% of coarse flake graphite sales with commodity trader Traxys.
The project also produces monazite, a rare earth mineral containing dysprosium, terbium and yttrium, all subject to Chinese export restrictions, which Sovereign is separately evaluating as a potential third revenue stream.
4:20pm: Tech powers gains Stocks finished higher on Thursday, with both the S&P 500 and Nasdaq notching fresh record closes as investors continued to lean into risk.
The Nasdaq rose 0.4% to 24,103, the S&P 500 added 0.3% to clock 7,041 points, and the Dow Jones gained 0.2% at 48,579, extending a steady upward trend across major indexes.
Sentiment was helped by news that President Trump said Israel and Lebanon have agreed to a temporary ceasefire, easing some geopolitical tension and supporting a more constructive tone in markets.
On the sector front, it was a familiar story: Energy, Consumer Discretionary, and especially Technology led the way. Tech has now been at the center of the rally for roughly the past two weeks, with semiconductors continuing to do much of the heavy lifting as investors double down on AI and chip-related momentum.
After the close, attention is turning to Netflix earnings, which could be the next key test for sentiment around high-multiple tech and consumer names.
3:45pm: Proactive news headlines 374Water Inc (NASDAQ:SCWO, FRA:8LL) is accelerating a growth strategy focused on scaling waste destruction services and expanding its PFAS-destroying AirSCWO systems across municipal, federal, and industrial markets. 1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) has restarted underground access at its True North mine in Manitoba as it advances dewatering and rehabilitation work ahead of a planned 2027 production restart. Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) reported an independent resource estimate for its Turkish Block M47 concession, outlining multi-million-barrel contingent oil potential ahead of future drilling. Tiziana Life Sciences Ltd (NASDAQ:TLSA) reported preclinical findings suggesting its intranasal foralumab therapy may reduce brain inflammation and improve cognitive symptoms linked to Long COVID. Sona Nanotech Inc (CSE:SONA, OTCQB:SNANF) appointed two oncology experts to its scientific advisory board to support ongoing cancer-related clinical and research programs. Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) joined a US Department of Defense-backed consortium aimed at strengthening domestic critical mineral supply chains, particularly for copper. HIVE Digital Technologies Ltd (TSX-V:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) plans to raise about $75 million via exchangeable senior notes due 2031 to support its corporate and expansion initiatives. Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF, FRA:XOD) increased its ownership in the Banio Potash Project in Gabon to 80% after completing a milestone payment tied to updated resource reporting. 2:55pm: Market movers Hims & Hers Health shares jumped after the U.S. Food and Drug Administration began reviewing wellness peptides that could affect compounding pharmacy offerings. QVC Group said it plans to file for Chapter 11 bankruptcy to restructure roughly $5 billion in debt while continuing operations, sending its shares sharply lower. Abbott Laboratories (NYSE:ABT) shares slipped despite a slight earnings beat as investors focused on a projected 2026 profit hit tied to its acquisition of Exact Sciences. Tiziana Life Sciences Ltd (NASDAQ:TLSA) reported early-stage data suggesting its intranasal therapy foralumab may reduce brain inflammation and improve cognitive function linked to Long COVID. 2:00pm: Netflix on deck Netflix Inc (NASDAQ:NFLX, XETRA:NFC) is expected to report first quarter 2026 results slightly ahead of its own guidance, according to UBS analysts, who also pointed to a combination of recent price increases and expanding advertising efforts as key drivers of growth this year.
UBS expects Netflix’s Q1 results to come in slightly ahead of company guidance, forecasting foreign-exchange-neutral revenue growth of 14.4% and operating income growth of 17%.
For the full year, the analysts project revenue to grow 14% with operating income rising 26%, supported by improved margins and lower costs.
Shares of Netflix were trading around $108 on Thursday afternoon.
12:50pm: Equity rally cools Chris Beauchamp, chief market analyst at IG, said the continuation of the equity rally now depends on further US-Iran talks.
“Headlines can only drive a market so far," Beauchamp commented.
"Having posted an eye-watering surge from the end of March, equity markets now need substantive progress in talks if the recovery is to make further progress. Without it, investors will soon start to fret about the impact on the global economy of the straits closure, though in fairness that is a problem that needs navigating sooner or later.”
11:45am: Today's price action worth watching While the Iran conflict is becoming less of a focus for investors, any negative headlines suggesting the end of the fighting isn’t close can still spark moves in the market, XTB research director Kathleen Brooks commented.
Worries that US–Iran peace talks could take longer than expected weighed on riskier assets at the start of trading on Thursday, but a run of upbeat sentiment has helped markets bounce back.
"Today’s price action in the US is worth watching," Brooks noted.
"Tesla, Microsoft, Uber and Oracle were the top performing stocks on Wednesday as tech continues to dominate. Can they continue to rally if markets are concerned about the speed of talks between the US and Iran, or if people think the Allbirds news is the sign of a bubble."
10:50am: TSMC beats expectations Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) reported first quarter 2026 results that exceeded market expectations, driven by sustained demand for advanced chips used in artificial intelligence applications.
The company posted net income of NT$572.48 billion (approximately $18.16 billion), marking a 58% increase from a year earlier and surpassing analyst estimates that ranged between NT$540 billion and NT$543 billion.
Earnings per share came in at NT$22.08 ($0.70), above forecasts of $0.66.
Revenue for the quarter totaled NT$1.134 trillion (about $35.9 billion), slightly ahead of expectations and representing a 35.1% increase year-over-year. In US dollar terms, revenue rose 40.6% compared with the same period last year.
Profitability metrics also improved.
9.50am: Dow opens higher, Nasdaq dips It's a mixed open for US stocks, with the Dow Jones beginning by rebounding from yesterday's dip, up 0.3% initally but seeing that slim to just over 0.1%.
Salesforce, Sherwin-Williams, IBM, Microsoft and Nike are leading the blue-chip index higher, all up over 1%.
The S&P 500 only tiptoed further into record territory, up 0.1%.
And the Nasdaq is starting in the red, down 0.1%.
Chip stocks lead losses on the Nasdaq, with Nvidia, ASML and Micron all lower as investors take profits after the recent rally.
Gains are more selective, with Microsoft joined by AMD and Palantir.
8am: Slow started for Wall Street predicted US stocks are predicted to get off to a slow start on Thursday, after Wall Street saw various fresh record highs reached in the previous session.
Nasdaq 100 futures were up 0.2%, with those for the Dow Jones and S&P 500 up 0.1%.
A day earlier, the S&P climbed 0.8% to above 7,000 for the first time, capping a sharp rebound from late-March's eight-month lows, while the Nasdaq Composite jumped 1.6% to its own record high at 24,016. The Dow slipped 0.2% to 48,464 as Caterpillar and JPMorgan Chase led a group of cyclicals and financials lower.
Overall optimism has been driven by hopes of progress in US-Iran talks, with reports overnight that a Middle East ceasefire extension could be agreed to enable more talks between the US and Iran.
US President Donald Trump said the war is "close to over" and suggested a second round of face-to-face talks with Iran will take place in Pakistan by the end of the week.
Israel and Lebanon's leaders are also due to talk today, Trump said in a social media post, for the first time in 34 years.
Also in the background, China announced stronger-than-expected GDP growth of 5% for the first quarter.
Market analyst David Morrison at Trade Nation noted that the month-long selloff that began at the end of February when the US and Israel launched attacks against Iran, and knocked about 8% off the S&P at its lowest point, has seen the index since soar over 11% to new highs.
This has been helped by the ‘Mag 7’ tech titans going on "an absolute tear" since the end of March, as have semiconductors and some banks, despite some mixed first quarter results.
"Investors piled back in to ‘buy the dip’, repeating a behaviour that has proved consistently profitable since October 2022," he said.
"The ceasefire called late Tuesday last week appears to be holding, although the Strait of Hormuz remains closed to most shipping, and it’s still unclear how effective the US blockade of Iranian ports in the region is proving to be.
"One thing is for sure: investors seem comfortable adding to their exposure to equities despite an oil price which is up over a third since hostilities began, and, as around 20% of the global supply of crude oil, liquified natural gas, fertilisers and helium remain offline. It’s one thing to live with high energy prices. It’s quite another to live without any energy."
On a technical analysis view, all the US majors are "looking overbought at current levels", Morrison said, having risen "too far too fast, suggesting that a pullback may be on the cards".
In corporate news, Taiwan Semiconductor (TSM) reported overnight and beat expectations, with chip demand momentum continuing. Shares are down 1.9% premarket, though.
Netflix reports after today's close, with Pepsico, Abbott Labs, Charles Schwab, Prologis, BoNY Mellon, US Bancorp, Marsh and Travelers Companies, the smallest company in the Dow.
D.A. Davidson & CO. raised its holdings in Rio Tinto PLC (NYSE:RIO – Free Report) by 16.7% in the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 124,182 shares of the mining company’s stock after acquiring an additional 17,786 shares during the quarter. D.A. Davidson & CO.’s holdings in Rio Tinto were worth $9,938,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Wealth Quarterback LLC increased its position in Rio Tinto by 1.8% in the 4th quarter. Wealth Quarterback LLC now owns 6,532 shares of the mining company’s stock valued at $523,000 after acquiring an additional 118 shares during the period. IVC Wealth Advisors LLC increased its position in Rio Tinto by 1.2% in the 4th quarter. IVC Wealth Advisors LLC now owns 10,963 shares of the mining company’s stock valued at $877,000 after acquiring an additional 129 shares during the period. Mather Group LLC. increased its position in Rio Tinto by 4.5% in the 4th quarter. Mather Group LLC. now owns 3,060 shares of the mining company’s stock valued at $245,000 after acquiring an additional 132 shares during the period. Jaffetilchin Investment Partners LLC increased its position in Rio Tinto by 2.4% in the 4th quarter. Jaffetilchin Investment Partners LLC now owns 5,736 shares of the mining company’s stock valued at $459,000 after acquiring an additional 137 shares during the period. Finally, Rakuten Securities Inc. increased its position in Rio Tinto by 4.0% in the 4th quarter. Rakuten Securities Inc. now owns 3,823 shares of the mining company’s stock valued at $306,000 after acquiring an additional 146 shares during the period. 19.33% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In Several equities analysts have issued reports on the stock. Argus set a $120.00 price target on shares of Rio Tinto in a research report on Monday. JPMorgan Chase & Co. cut shares of Rio Tinto from an “overweight” rating to a “neutral” rating in a research report on Monday, March 9th. HSBC cut shares of Rio Tinto from a “buy” rating to a “hold” rating in a research report on Monday, January 26th. Morgan Stanley cut shares of Rio Tinto from an “overweight” rating to an “equal weight” rating in a research report on Wednesday, January 28th. Finally, Barclays cut shares of Rio Tinto from an “overweight” rating to an “equal weight” rating in a research report on Tuesday, February 24th. Four equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $101.75.
Get Our Latest Analysis on RIO
Rio Tinto Price Performance Rio Tinto stock opened at $98.39 on Wednesday. Rio Tinto PLC has a 1-year low of $55.64 and a 1-year high of $101.53. The firm’s fifty day moving average price is $94.44 and its two-hundred day moving average price is $84.57. The company has a quick ratio of 0.98, a current ratio of 1.44 and a debt-to-equity ratio of 0.33.
Rio Tinto Announces Dividend The company also recently announced a dividend, which was paid on Thursday, April 16th. Shareholders of record on Friday, March 6th were given a dividend of $2.54 per share. The ex-dividend date of this dividend was Friday, March 6th. This represents a dividend yield of 564.0%.
Rio Tinto News Roundup Here are the key news stories impacting Rio Tinto this week:
Positive Sentiment: JPMorgan raised its price target on Rio Tinto after Q1 results, reflecting continued confidence in the company’s commodity exposure (copper, aluminium, iron ore) and supporting medium‑term valuation. JPMorgan Lifts PT on Rio Tinto Group (RIO) Following Q1 Results Positive Sentiment: Rio announced a A$100m commitment to help fund 500+ homes for regional frontline workers in WA’s Pilbara — a move that supports workforce stability for mining operations and improves ESG/community credentials. Rio Tinto’s A$100m boost for essential service worker housing in the Pilbara Positive Sentiment: Rio extended an 18‑year partnership with Clontarf, backing programs for Aboriginal and Torres Strait Islander young men — reinforcing social licence and long‑term community relationships. Clontarf and Rio Tinto extend 18-year partnership supporting young Aboriginal and Torres Strait Islander men Neutral Sentiment: Rio and Angola’s state diamond company formed a joint venture to develop a mine — diversification into diamonds could add long‑term optionality but is unlikely to materially affect near‑term earnings. Rio Tinto, Angolan state diamond company form joint venture for mine Neutral Sentiment: Analysts express mixed views after Q1 production: some upgrades and PT lifts offset by caution on commodity prices and project timelines — this produces divergent near‑term guidance for the stock. Analysts Express Mixed Views on Rio Tinto Group (RIO) Following Q1 Production Results Neutral Sentiment: Market commentary highlights recent strong share momentum and improved valuation metrics after multi‑month gains, underscoring bullish technicals (50‑day SMA above 200‑day). A Look At Rio Tinto (LSE:RIO) Valuation After Recent Share Price Momentum Negative Sentiment: A workplace fatality at a Rio Tinto plant was reported, which can prompt near‑term operational scrutiny, potential investigations and reputational risk—factors that likely pressured the stock today. Employee killed in workplace incident at Rio Tinto plant Rio Tinto Profile (Free Report)
Rio Tinto is a global mining and metals company that explores for, mines, processes and markets a wide range of commodities. Its principal products include iron ore, aluminum, copper, diamonds and various other minerals and industrial materials. The company’s activities span the full value chain from exploration and project development to mining, processing, smelting and refining, supplying raw materials to industries such as steelmaking, automotive, packaging, electronics and construction.
The origins of Rio Tinto date back to mining operations in the Rio Tinto region of Spain in the 19th century, and the group has since grown into a multinational enterprise.
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Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0), a uranium exploration company focused on Saskatchewan’s Athabasca Basin, announced plans for a non-brokered financing of up to C$900,000 through the sale of as many as 9 million units priced at C$0.10 each.
The company said the offering will be conducted under the listed issuer financing exemption, allowing the securities issued to be free of hold periods under applicable Canadian securities laws.
Each unit will include one common share and one-half of one common share purchase warrant. Each whole warrant will allow the holder to purchase an additional common share at C$0.15 beginning 61 days after the closing date of the offering and remaining valid for 36 months.
The warrants will also include an accelerated expiry provision. Standard Uranium said that if its shares trade at or above C$0.30 for 10 consecutive trading days after the initial 61-day period, the company may accelerate the expiry date by issuing a press release, after which warrant holders would have five days to exercise them.
The company said net proceeds from the financing are expected to support exploration work at its Davidson River project as well as general working capital purposes.
NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) said on Tuesday it has approved a final investment decision on Phase 1 of its Battery Anode Facility in Abu Dhabi, advancing its push into vertically integrated anode materials manufacturing.
The decision follows the completion of front-end engineering design work, which the company said confirmed the economics and project configuration outlined in an October 2025 feasibility study.
NextSource said the FEED results provided technical validation of the project's design, capital profile and operating parameters.
The company noted that conflict in the Middle East had delayed some work streams, though proceeds from a recent C$25 million financing were deployed to complete the FEED study, advance a feasibility study on its Molo mine expansion in Madagascar, and progress project financing efforts.
Under the FID, NextSource is authorized to enter a pre-EPC mobilization phase covering finalization of property agreements, early works contracts, environmental and permitting activities, and procurement of long-lead equipment. The phase will also allow for equipment shipments from China and Mauritius and the hiring of project personnel.
The company said the FID is structured with conditions precedent and staged funding gates to manage financial exposure until external funding commitments are secured.
The investment decision is supported by a proposed strategic investment from a Japanese consortium comprising trading house Hanwa Co and the Japan Organization for Metals and Energy Security, a Japanese government agency known as JOGMEC.
NextSource said it is also engaged with other equity investors, lenders and development finance institutions.
"Approval of the FID represents a significant step forward for NextSource and reflects the Board's confidence in the project's fundamentals, the strength of our financing strategy, and the growing global demand for high-quality, vertically integrated anode materials," said CEO Hanre Rossouw in a statement.
“The UAE continue to offer a stable, strategically located, and highly supportive environment for advanced materials manufacturing, and today's decision signals our confidence in moving ahead while maintaining disciplined risk management."
NextSource holds the Molo graphite project in Madagascar, which the company describes as one of the largest and highest-quality graphite resources globally. The company has also signed a multi-year offtake agreement with Mitsubishi Chemical Corp for the supply of anode active material into North America.
UBS has flagged the risk of a "super El Niño" developing from mid-2026, which it says could tighten the seaborne thermal coal market and push prices higher, with Indonesian and Australian producers set to benefit.
The World Meteorological Organisation expects an El Niño event to develop in the coming months, and some scientists predict it could be the strongest this century based on high Pacific Ocean surface temperatures.
UBS said such events typically trigger intense and prolonged heatwaves across Asia, where coal-fired plants account for roughly 70% of electricity generation in India and around 55% in China and across the region more broadly.
Higher demand for air conditioning should lift overall coal consumption and coal imports, while in Latin America and Africa, changes to rainfall patterns associated with El Niño can reduce output from hydroelectric dams, which provide a significant share of generation in both regions.
With global power systems already under strain from the US-Iran conflict, UBS sees a risk that the weather event could compound existing supply pressures.
The broker noted a potential constraint on Indonesian supply from new export quotas, though feedback from a recent industry tour suggested authorities are willing to approve additional quota allocations following recent price rises.
On iron ore, UBS said March quarter shipments from the major producers were broadly resilient and generally in line with or modestly ahead of expectations despite weather disruptions, with Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF), BHP Group Ltd (LSE:BHP, ASX:BHP), Anglo American PLC (LSE:AAL) and Vale all delivering solid operational performances.
Fortescue was more mixed, with solid haematite shipments offset by disappointment at its Iron Bridge magnetite project, leading to a guidance downgrade.
Iron ore prices have risen to $112 per tonne, supported by higher freight rates, with Australia-to-China shipping costs up $5 per tonne since the end of February and Brazil-to-China routes up approximately $11 per tonne.
Chinese port inventories remain close to all-time highs at around 160 million tonnes but have started to fall seasonally, while steel exports lifted month-on-month in April.
UBS holds neutral ratings on BHP, Rio Tinto, Vale and Fortescue, and estimates spot 2026 free cash flow yields of 5% for BHP, 9% for Rio Tinto and 11% for Vale.
Stryker Corp (SYK) Q1 2026 Earnings Call Highlights: Navigating Cyber Challenges and Strategic Growth Stryker Corp (SYK) maintains full-year guidance amidst cyber disruptions, with strong international sales and strategic acquisitions fueling optimism. Summary
Organic Sales Growth: 2.4% worldwide, 1.9% in the US, 3.9% internationally.Adjusted Earnings Per Share (EPS): $2.60, down 8.5% from the previous year.Adjusted Gross Margin: 63.6%, a decrease of 190 basis points from the previous year.Adjusted Operating Margin: 21.1% of sales, 180 basis points lower than the previous year.Adjusted Effective Tax Rate: 14.5% for the quarter.Cash from Operations: $581 million year-to-date.Full Year 2026 Guidance: Organic net sales growth expected to be 8% to 9.5%; adjusted net earnings per share expected to be $14.90 to $15.10.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Stryker Corp SYK maintained its full-year guidance despite the cyber incident, indicating confidence in its recovery and market position.The company reported a record Q1 for Mako installations both in the US and internationally, with high utilization rates.Stryker Corp (SYK) announced the acquisition of Amplitude Vascular Systems, which is expected to expand its presence in the cardiovascular space.The launch of the new Ortho Tech business aims to simplify customer experience and accelerate innovation in the orthopedic segment.International sales growth was strong, with a 3.9% increase, driven by solid fundamentals and market positioning. Negative Points A cyber incident caused significant disruption to Stryker Corp (SYK)'s operations, impacting sales and manufacturing absorption.Adjusted earnings per share decreased by 8.5% from the previous year, primarily due to the cyber incident and increased interest expenses.The company's adjusted gross margin fell by 190 basis points compared to the first quarter of 2025, reflecting lost manufacturing absorption and tariffs.The Middle East conflict had a modest effect on international growth, although the overall impact was limited.The cyber incident led to delays in revenue recognition and shipment disruptions, affecting the timing of sales recovery throughout the year. Q & A Highlights Q: Can you provide more specific color on how we should think about the recovery in sales given the disruption from the cyber incident?
A: Preston Wells, CFO: The recovery will vary across our business due to different operating models. For example, in Orthopedics, revenue recognition items will be caught up in the second half of the year. Some procedures that were deferred will be rescheduled throughout the year. For MedSurg, which includes capital equipment, production delays will push recovery into the second half of the year. We expect some recovery in Q2, with more significant recovery in Q3 and Q4.
Q: How are you mitigating higher input costs due to inflation and geopolitical events?
A: Preston Wells, CFO: We expect some pressure from higher input costs, but our procurement team is actively working to mitigate these where possible. We have contracts in place to help manage these costs, and this is factored into our guidance. We anticipate being able to absorb these rising costs based on current conditions.
Q: What are you seeing competitively in the orthopedic market, especially with other companies reorganizing?
A: Kevin Lobo, CEO: We are confident in our position as market leaders in robotics, with strong uptake for Mako 4 and positive feedback on Mako Shoulder. We expect to continue outgrowing the orthopedic market by 200 to 300 basis points. Our full-year guidance reflects this confidence, and we anticipate acceleration towards the end of the year with new product launches.
Q: Can you discuss the impact of the cyber incident on different business segments, specifically MedSurg versus Orthopedics?
A: Preston Wells, CFO: In Orthopedics, many products are consigned at hospitals, allowing procedures to continue with revenue recognition deferred to Q2. MedSurg, which includes capital equipment, faced more significant production delays, pushing recovery into the second half of the year. We expect MedSurg recovery primarily in Q3 and Q4.
Q: How are you thinking about M&A as a contributor to top-line growth, given recent acquisitions like Amplitude Vascular Systems?
A: Kevin Lobo, CEO: We are excited about our deal pipeline and cash position, which allows us to pursue more acquisitions. We expect to be active in M&A through the end of this year and into next year, with a focus on expanding in areas like Peripheral Vascular and potentially other cardiovascular spaces.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
May 01, 2026 08:00 ET | Source: Stryker Corporation
Portage, Michigan, May 01, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) will participate in the Bank of America Securities 2026 Global Healthcare Conference on Wednesday, May 13, 2026, at the Encore at Wynn Hotel in Las Vegas, Nevada.
Representing the company will be Spencer Stiles, President and Chief Operating Officer, Jason Beach, Vice President, Group Chief Financial Officer, MedSurg and Neurotechnology and Nick Mead, Vice President, Investor Relations. Their presentation is scheduled for 1:40 p.m. Pacific Time.
A live webcast and replay of the presentation will be accessible on Stryker’s website at www.stryker.com, and it will be archived on the Investor Relations page.
About Stryker
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
Contacts
For investor inquiries:
Nick Mead, Vice President, Investor Relations at 269-385-2600 or [email protected]
For media inquiries:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or [email protected]
Key Takeaways SYK reported Q1 EPS of $2.60, missing estimates by 12.8% and declining 8.5% year over year.Revenues rose 2.6% to $6.02B but missed estimates, hurt by cyber-driven production disruptions. Margins contracted due to shutdown impacts and tariffs, though MedSurg and Orthopedics saw growth. Stryker Corporation (SYK - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $2.60, which missed the Zacks Consensus Estimate of $2.98 by 12.8%. The bottom line declined 8.5% year over year.
GAAP EPS was $1.93, up 14.2% from the year-ago quarter’s level.
Revenue DetailsRevenues totaled $6.02 billion, which missed the Zacks Consensus Estimate by 4.4%. The top line improved 2.6% on a year-over-year basis and 1% at constant currency (cc).
Organically, sales were up 2.4%. Organic sales growth was driven by a 2.1% increase in unit volume and 0.3% improvement in prices.
Revenues by GeographyRevenues in the United States amounted to $4.48 billion, up 0.8% from the prior-year quarter’s level. International sales increased 8.3% year over year reportedly and 1.5% at cc to $1.54 billion.
Segmental AnalysisStryker divested its U.S. spinal implants business to Viscogliosi Brothers, LLC, a family-owned investment firm specializing in the neuro-musculoskeletal space in April 2025. The company now posts its Spine enabling technologies results as part of other orthopedics. Interventional Spine results are reported as part of neurocrine. As a result, spinal implants are now reported separately within orthopedics.
Effective first-quarter 2026, Stryker realigned its reporting structure by combining the orthopaedic instruments portfolio from its Instruments business with the Mako and enabling technologies portfolio from Other Orthopaedics into a newly formed Ortho Tech segment.
MedSurg and Neurotechnology: This segment reported sales of $3.21 billion, up 5% year over year and 3.6% at cc.
In the quarter under review, MedSurg and Neurotechnology recorded organic sales growth of 0.9%. Instruments recorded U.S. sales growth of 19.1%.
Endoscopy saw a 1.2% U.S. decline. Medical declined 6.9% in the United States.
Vascular grew 37.9% in the United States.
Internationally, sales were up 11.7%, driven by growth across Endoscopy, Instruments, Medical and Vascular businesses.
Orthopedics: Sales in the segment amounted to $2.8 billion, up 0.1% year over year but down 1.8% at cc. Organically, sales were up 4.1%. The U.S. knee business grew 1.4%.
U.S. hips business grew 2.3%. Trauma and Extremities business improved 7.6% in the United States. U.S. Ortho Tech business grew 2%. International Orthopaedics grew 12.2%.
MarginsAdjusted gross profit totaled $3.83 billion in the reported quarter, down 0.5% from the year-ago quarter’s level. Adjusted gross margin contracted 190 basis points (bps) to 63.6%, reflecting the impact of lost manufacturing absorption from production shutdowns due to the cyber incident as well as the impact of tariffs.
Total operating expenses were $2.82 billion, down 21.4% from the year-ago quarter’s level.
Adjusted operating income totaled $1.27 billion, down 5.4% from the year-ago level. Adjusted operating margin was 21.1%, down 180 bps.
Financial UpdateStryker exited the first quarter with cash and cash equivalents of $2.97 billion compared with $4.01 billion at the end of the fourth quarter of 2025.
Cumulative net cash provided by operating activities totaled $581 million compared with $250 million a year ago.
2026 GuidanceStryker has maintained its guidance for 2026. The company expects total revenues to grow in the range of 8-9.5% on an organic basis. The Zacks Consensus Estimate for total revenues is pegged at $27.21 billion, implying growth of 8.3%.
SYK expects full-year 2026 EPS to be in the range of $14.90-$15.10. The Zacks Consensus Estimate for earnings is pegged at $14.91 per share.
Wrapping UpStryker exited the first quarter of 2026 with weaker-than-expected sales and earnings. The underperformance was primarily due to a late-quarter cyber incident that disrupted operations, delayed shipments and deferred revenue recognition. Despite these headwinds, underlying demand remained healthy across geographies, supported by solid procedural volumes and strong capital order trends. Margin pressure reflected lost manufacturing absorption, tariffs and higher interest expense tied to prior acquisitions.
SYK’s shares have lost 10.3% year to date compared with the industry’s 21.5% decline. The S&P 500 has increased 6.2% in the same time frame.
Image Source: Zacks Investment Research
Looking ahead, management expects recovery through 2026 as deferred procedures, production backlogs and revenue recognition normalize, particularly in the second half. Growth drivers include continued momentum in robotic surgery (Mako), new product launches and sustained hospital capital spending. Strategic acquisitions — especially Inari and the planned Amplitude Vascular Systems deal — highlight Stryker’s push into faster-growing cardiovascular markets, enhancing diversification beyond orthopaedics.
However, risks remain, including execution on recovery, tariff pressures, geopolitical uncertainties and integration complexity from expanding into new adjacencies. Still, diversified end markets and active M&A position Stryker for stronger growth in the back half of 2026.
Zacks Rank & Stocks to ConsiderStryker currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Phibro Animal Health (PAHC - Free Report) and Cardinal Health (CAH - Free Report) . While Globus Medical sports a Zacks Rank #1 (Strong Buy) at present, Phibro Animal Health and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical’s shares have gained 3.3% in the year-to-date period. Estimates for the company’s first-quarter 2026 EPS have increased 1 cent to 90 cents in the past 30 days. GMED’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 18.79%. In the last reported quarter, it posted an earnings surprise of 20.75%.
Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 42.4% in the year-to-date period against the industry’s 20.5% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.
Cardinal Health’s shares have declined 6.2% in the year-to-date period. Estimates for the company’s third-quarter 2026 EPS have decreased 1 cent to $2.80 in the past 30 days. CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 9.30%. In the last reported quarter, it posted an earnings surprise of 10.04%.
Stryker Corporation (NYSE:SYK) shares are trading sideways on Monday. But that wasn't the case on Friday. They dropped almost 6.5% after the company reported its earnings.
But the selloff may be over. There may even be a reversal. This is why Stryker is the Stock of the Day.
Many trading strategies and models are based on the concept of reversion to the mean. If a stock or security gets overextended in one direction, traders will be anticipating a reversal or reversion.
If a stock is oversold, like Stryker is, traders will come into the market as buyers because they will be expecting a move higher. Their buying could force the shares up.
The red line on the chart is two standard deviations below the 20-day moving average. According to statistics and probability theory, 95% of trading should occur within two standard deviations of the mean.
If a stock exceeds this threshold to the down-side like Stryker has, it is considered to be oversold. This will draw buyers into the market.
The shares are also at a price level that may provide support.
As you can see, this price was a resistance level in 2023. And sometimes, a price that had been a resistance level can turn into a support level.
There are investors and traders who sold at this level who were glad they did when the price dropped after.
But when this resistance was broken, a number of these investors and traders changed their minds. They decided that selling was a mistake.
Some of them also decided that if they could ever do so, they would buy their shares back at the same price they were sold for. Now that the share has finally dropped back to this level, they will place buy orders.
If there is a large quantity of these orders, it will create support at the level.
This combination of being oversold while at support can be a bullish dynamic. Stryker may be about to rally.
Photo: Shutterstock
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May 07, 2026 08:00 ET | Source: Stryker Corporation
Portage, Michigan, May 07, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) announced that its Board of Directors has declared a quarterly dividend of $0.88 per share payable July 31, 2026, to shareholders of record at the close of business on June 30, 2026, representing an increase of 4.8% versus the prior year and unchanged from the previous quarter.
About Stryker
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
Contacts
For investor inquiries:
Nick Mead, Vice President, Investor Relations at 269-385-2600 or [email protected]
For media inquiries:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or [email protected]
May 07, 2026 16:05 ET | Source: Stryker Corporation
Portage, Michigan, May 07, 2026 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK announced that it has completed the acquisition of Amplitude Vascular Systems, Inc. (AVS), a privately held medical technology company developing a next-generation intravascular lithotripsy (IVL) platform designed to treat complex peripheral arterial disease.
“This acquisition is a significant milestone in expanding our peripheral vascular portfolio and enhancing our ability to address challenging arterial disease,” said Kevin Lobo, Chair and CEO, Stryker. “By integrating AVS’s innovative CO₂-generated pressure wave technology with Stryker’s scale and resources, we are well-positioned to deliver solutions that support physicians and patient outcomes.”
The addition of an IVL platform will strengthen Stryker’s impact in peripheral vascular solutions.
About Stryker
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
About Amplitude Vascular Systems (AVS)
Amplitude Vascular Systems (AVS) is a medical device company based in Boston, Mass., focused on treating severely calcified arterial disease. AVS is backed by global investors including BioStar Capital, Cue Growth Partners, and others. It was founded in 2017 by Hitinder Gurm, M.D., Interventional Cardiologist and Chief Clinical Officer at the University of Michigan, and Robert Chisena, Ph.D., Chief Technical Officer at AVS. More information is available at www.avspulse.com.
Contacts
For investor inquiries:
Nick Mead, Vice President, Investor Relations at 269-385-2600 or [email protected]
For media inquiries:
Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or [email protected]
On May 12, 2026, we present a DCF analysis for Stryker Corp SYK , a company that has faced notable price performance challenges recently, with a year-to-date decline of 18.6% and a one-year drop of 24.6%. Below are key insights from our analysis:
DCF Earnings-based intrinsic value of $206.09 compared to current price of $282.58 (margin of safety: -37.1%) DCF FCF-based intrinsic value of $286.38 provides a second opinion on valuation (1.3% margin of safety) GF Score™ of 93/100 indicates high reliability of the DCF inputs What Is SYK Worth? DCF Earnings-Based Model The DCF earnings-based model for Stryker Corp utilizes a two-stage approach to estimate intrinsic value. In the first stage, we project earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are critical for deriving an accurate valuation.
Parameter Value Current EPS (TTM, excl. non-recurring) $13.39 10-Year Growth Rate 9.4% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we expect EPS to grow at 9.4% per year, discounted at a rate of 11%. The calculated value for this stage is $123.73 per share. In the terminal phase (Years 11-20), we assume a slower growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $82.36 per share. The summary of these calculations is presented in the table below:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 9.4%, discounted at 11% $123.73 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $82.36 Intrinsic Value Growth + Terminal $206.09 Comparing the current price of $282.58 with the intrinsic value of $206.09 indicates that Stryker Corp is modestly overvalued, with a margin of safety of -37.1%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than free cash flow. For further details, visit the SYK DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Stryker Corp is calculated at $286.38. When compared to the earnings-based intrinsic value of $206.09, the FCF model suggests a more favorable valuation, indicating that the stock is fair valued with a margin of safety of 1.3%. This difference highlights the importance of considering multiple valuation approaches to gain a comprehensive view of a company's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Stryker Corp stands at $405.84, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure that incorporates historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based model suggests overvaluation, the FCF model indicates fair valuation, and GF Value™ suggests that the stock is undervalued. This divergence among the models emphasizes the need for careful consideration when evaluating investment opportunities. For more information, visit the GF Value™ page.
What Does SYK's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtested data from 2006-2021. Below is a summary of Stryker Corp's GF Score™:
Metric Rating GF Score™ 93/100 Financial Strength 5/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 5/10 With a predictability rank of 1/5 stars, the reliability of the DCF model for Stryker Corp is lower, indicating that investors should exercise caution when interpreting the results. For more details, visit the SYK stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future performance.
What This Means for Investors In summary, the DCF earnings-based model indicates that Stryker Corp is overvalued, while the FCF model suggests it is fairly valued. The GF Value™ further implies that the stock is undervalued. Therefore, the consensus across these three valuation models presents a mixed picture, with a clear verdict leaning towards fair valuation. For the full DCF analysis, visit the SYK DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is SYK's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Surgical robotics is quietly becoming an artificial intelligence story. Every robotic procedure generates structured video, kinematic, and outcomes data that platforms feed back into surgeon training, intraoperative guidance, and predictive analytics. That flywheel is the moat. The three companies owning the installed bases to build it are Intuitive Surgical (NASDAQ: ISRG | ISRG Price Prediction), Medtronic (NYSE: MDT), and Stryker (NYSE: SYK). With all three trading well off their 2026 highs, the AI sleeper thesis looks more compelling.
3. Stryker (Mako and the New Ortho Tech Stack) Stryker is the diversified medtech giant with the Mako robotic orthopedic franchise. Q1 FY26 showed adjusted EPS of $2.60, which missed the $2.98 estimate, as well as revenue of $6.02 billion, which came in short of the $6.33 billion consensus. CEO Kevin Lobo cited a March 11, 2026, cybersecurity incident and $118 million in structural optimization charges that compressed adjusted operating margin to 21.1% from 22.9%.
The AI angle lives in the newly carved-out Ortho Tech business, which combines Mako robotic-assisted surgery with power tools, cutting accessories, and enabling technologies. Knees grew 4.7% and hips 3.7%, both Mako-tethered categories. Lobo said, “I am pleased with our team’s ability to recover quickly from the cyber incident…. We remain committed to meeting our full year guidance.” Guidance was maintained at 8.0% to 9.5% organic sales growth and adjusted EPS of $14.90 to $15.10. The risk is that Mako revenue is bundled, so investors cannot isolate the AI orthopedics flywheel. Shares are down 21.3% over the past year.
2. Medtronic (Hugo Goes Live) Medtronic took its biggest step into the robotics race when the Hugo robotic-assisted surgery system received U.S. FDA clearance, with first cases completed in February 2026. Q3 FY26 revenue of $9.017 billion beat the $8.892 billion estimate, and non-GAAP EPS of $1.36 topped the $1.3351 consensus. Cardiac Ablation Solutions stood out, with pulsed field ablation driving revenue up 80% overall and 137% in the United States.
Beyond Hugo, Medtronic cleared the Stealth AXiS Surgical System for spinal procedures and secured a CE Mark for the Sphere-360 mapping catheter, with AI-adjacent mapping and navigation embedded in both. CEO Geoff Martha said, “Q3 marks another strong quarter, delivering 6% organic revenue growth, ahead of guidance…. It’s an exciting time for Medtronic.” Non-GAAP gross margin slipped to 64.9% from 66.6%, and a $185 million tariff headwind is baked into FY26 guidance of about 5.5% organic growth and $5.62 to $5.66 EPS. At a forward P/E of 14x and analyst target of $108, the diversified med-device exposure looks attractively priced after a 20.2% year-to-date drawdown.
1. Intuitive Surgical (the Data Flywheel Leader) Intuitive Surgical is the cleanest expression of the thesis. Q1 FY26 non-GAAP EPS of $2.50 beat the $2.11 estimate by 18.66%, the fourth consecutive EPS beat. Revenue of $2.77 billion grew 22.96% year over year, anchored by $1.69 billion in Instruments & Accessories, the high-margin razor-blade line that scales with procedure volume.
The installed base is the moat. Some 11,395 da Vinci systems (up 12%) and 1,041 Ion systems (up 22%) feed procedural data back to Intuitive’s digital platforms for surgeon analytics and training. Of the 431 da Vinci placements in the quarter, 232 were da Vinci 5 units, the AI-ready next-generation platform. Procedures grew 16% for da Vinci and 39% for Ion. Operating income jumped 47.95%, and the company holds $7.98 billion in cash after repurchasing 2.3 million shares for $1.1 billion. CEO Dave Rosa said the quarter “was marked by expanded adoption of our da Vinci, Ion, and digital platforms.” FY26 guidance calls for 13.5% to 15.5% da Vinci procedure growth. However, tariff exposure across Mexico, Germany, and China is embedded as a 1.0% margin headwind. With shares down 24.3% year to date, institutional patience is being tested while insiders accumulate equity grants.
The Verdict Surgical robotics platforms are becoming AI-enabled systems whose data flywheels create durable moats, yet the market treats this thesis as immaterial. Intuitive Surgical is the purest expression, with the largest robotic installed base in healthcare and a digital platform that scales with every procedure. Medtronic is the diversified med-device hedge, now with the Hugo system cleared and the fastest-growing PFA franchise in cardiac care. Stryker is the orthopedic specialist whose Mako story is intact but temporarily clouded by a cyber incident and one-time charges. Together, they offer exposure to AI in operating rooms without software-stock multiples.
Investors looking for stocks in the Medical - Products sector might want to consider either Phibro Animal Health (PAHC) or Stryker (SYK). But which of these two stocks is more attractive to value investors?
