Spotify (NYSE:SPOT | SPOT Price Prediction) just delivered a quarter that should have settled the bear case. Premium subscribers hit 293 million, free cash flow surged 54.6% to $824 million, and operating income climbed 40.47%. Yet shares trade at $507.76, down 12.56% year to date.
The streaming leader is firing on every operational cylinder, but the stock keeps slipping. Can Spotify reach $900 in 2027?
Why Spotify Is Down This Year Management guided Q1 operating income to €660 million against a baked-in 670 bps FX headwind, and Wall Street rejected it. The stock has dropped 23.66% over the past year and slid another 2.33% in the past week, despite a 15.01% bounce off the May low. With a beta of 1.554, this stock amplifies sentiment shifts.
Add the €410 million MLC lawsuit overhang, the €975 million TME fair-value decline, and a -5% drop in Ad-Supported revenue, and the market wants to punish non-operational noise. Premium ARPU growth of just 1% in euros hasn’t helped.
Wall Street Sees 20% Upside. Our Model Says 29%. The Street has a consensus target of $609.02, supported by 10 Strong Buy, 24 Buy, 7 Hold, and zero Sell ratings. That is 83% bullish. Our base case is $657.34, implying 29.46% upside with 90% confidence. Our bull case stretches to $828.30, the bear case to $569.49.
Analysts are anchoring to FX-distorted euro guidance and ignoring that quarterly earnings grew 222.4% YoY. When a business compounds operating income and FCF at 40%-plus and the multiple keeps compressing, consensus is too conservative. The Street is fighting the last quarter rather than the next four.
The Path to $900 Per Share Reaching $900 from today’s price of $507.76 would require a gain of 77.2%. With forward EPS of $16.86, a price of $900 implies a forward P/E of 53. Our base case of $657.34 already implies 36x, meaning the bold target requires roughly 17x of additional multiple expansion.
The building blocks exist. The 247Factor lands at 1.157, lifted by strong analyst consensus and strong earnings acceleration. AI features (Taste Profile, Prompted Playlist, SongDNA) give Spotify a credible ARPU story.
The $2 billion buyback (with $1.024 billion remaining) tightens the float. Q4 2025 showed operating leverage with record gross margin of 33.1% and EPS of $4.43 against a $2.85 estimate. If FY 2027 EPS approaches $22, a 40x multiple gets you to $880, and any sentiment shift carries it further. The primary risk is a punitive MLC ruling that forces a structural royalty reset.
Where Spotify Trades Today vs Its Earnings Power At $507.76 on forward EPS of $16.86, Spotify trades at roughly 30x forward. Against earnings growth of 222.4% YoY and FCF growth of 54.6%, it is the most reasonable multiple this stock has carried in years. Shares sit 22% below the 52-week high of $785 and well off the $405 low. Over the last ten years, SPOT has delivered 240.76%. The earnings power is real.
Is $900 Realistic? Reaching $900 by 2027 requires a 77.2% gain. That is a stretch well above our base case.
Three things need to go right: FY 2027 EPS needs to push toward $22 on Premium ARPU re-acceleration, the MLC liability needs to settle below the headline number, and Ad-Supported revenue needs to inflect positive as the Partner Program scales. A deeper FX hit or punitive royalty ruling derails it. We’ve outlined the blueprint for how Spotify could reach $900 in 2027.
Spotify and Netflix have both built dominant subscription platforms, but for a retirement-focused investor allocating capital in mid-2026, which streaming name deserves the slot? Spotify Technology (NYSE:SPOT | SPOT Price Prediction) and Netflix (NASDAQ:NFLX) are screening as bargain candidates after both stocks have given back ground this year, but the underlying businesses are not in the same league. Three dimensions decide it.
Dimension 1: On Valuation, Netflix Wins Netflix is materially cheaper on every multiple that matters for a long-duration holding. Custom analysis pegs Netflix at roughly 30x 2026 estimates against Spotify at 50x. The cleaner trailing snapshot tells the same story: Spotify carries a P/E of 34x with a forward P/E of 34x, while Netflix sits at a trailing 28x and a forward 27x. On enterprise value to EBITDA, the gap is even wider: Netflix at 11x versus Spotify at 27x.
Retirement capital cannot afford to overpay for growth that may not show up. Spotify is asking investors to underwrite a premium multiple on a business growing slower than the one trading at a discount. That math does not work.
Dimension 2: On Growth Trajectory, Netflix Wins Netflix grew Q1 2026 revenue 16% year over year to $12.25 billion, with full-year guidance reaffirmed at $50.70B to $51.70B (12% to 14% growth). Spotify, by contrast, posted Q1 2026 revenue growth of just 8%, and management’s Q2 operating income guide fell short of Wall Street forecasts, causing post-earnings stock decline.
The forward driver is even more lopsided. Netflix’s ad-supported tier represented over 60% of all Q1 sign-ups in ads markets, advertiser count grew 70% YoY to over 4,000 clients, and ad revenue is tracking to ~$3B in 2026. Spotify’s ad-supported segment, by contrast, declined 5% year over year in Q1. One company is accelerating into a new revenue stream. The other is leaning on subscription mix.
Dimension 3: On Profitability and Cash Engine, Netflix Wins This is where the gap turns into a chasm. Netflix’s operating margin is targeted at 32% for 2026, with Q2 already guided to 33%. Spotify’s operating margin sits at 16%. Return on equity tells the same story: Netflix at 49%, Spotify at 38%.
Free cash flow is the clincher. Netflix raised 2026 FCF guidance to ~$12.50 billion from $11B prior, and Q1 alone produced $5.09 billion in FCF. Spotify’s full-year 2025 FCF came in at $2.874 billion. Netflix also has $6.8B remaining on its buyback authorization, repurchasing 13.5M shares for $1.3B in Q1 2026.
The Verdict Neither name pays a dividend, so retirees seeking yield should look elsewhere entirely. For retirement capital being deployed into streaming as a growth-stable communications-services holding, Netflix is the answer. It is cheaper, growing roughly twice as fast, and producing margins and cash flow that Spotify’s business model cannot structurally match in this decade.
Spotify has a place: it suits a growth-tilted retiree who specifically wants exposure to a fortress balance sheet (the company runs net cash with a net cash balance sheet) and AI-driven audio optionality. Spotify shares are also down 24% over the past year and 13% year to date, which could appeal to contrarians. But as the core retirement holding between these two, Netflix wins on valuation, scale, and the predictability of the cash engine. Spotify is the speculative leg in this pairing; Netflix screens as the core holding.
Spotify (SPOT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this music-streaming service operator have returned +14.7%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Internet - Software industry, which Spotify falls in, has gained 6.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Spotify is expected to post earnings of $3.31 per share, indicating a change of +789.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $14.72 points to a change of +23.8% from the prior year. Over the last 30 days, this estimate has changed -0.6%.
For the next fiscal year, the consensus earnings estimate of $18.41 indicates a change of +25% from what Spotify is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Spotify is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Spotify, the consensus sales estimate for the current quarter of $5.6 billion indicates a year-over-year change of +17.7%. For the current and next fiscal years, $22.77 billion and $26.02 billion estimates indicate +17.2% and +14.3% changes, respectively.
Last Reported Results and Surprise HistorySpotify reported revenues of $5.3 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $4.04 for the same period compares with $1.13 a year ago.
Compared to the Zacks Consensus Estimate of $5.36 billion, the reported revenues represent a surprise of -1.09%. The EPS surprise was +8.6%.
Over the last four quarters, Spotify surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Spotify is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Spotify. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Spotify (SPOT - Free Report) was up +1.39% at $503.10. The stock's performance was ahead of the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.
Shares of the music-streaming service operator witnessed a gain of 14.67% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.74%, and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.31, signifying a 789.58% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.6 billion, up 17.66% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.72 per share and revenue of $22.77 billion. These totals would mark changes of +23.8% and +17.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.99% fall in the Zacks Consensus EPS estimate. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 33.71. This valuation marks a premium compared to its industry average Forward P/E of 18.47.
Meanwhile, SPOT's PEG ratio is currently 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Spotify co-CEOs Alex Norström and Gustav Söderström. Bryan Bedder/Getty Images for Spotify Spotify's opioid-promoting podcast problem was a lot bigger than initially thought.
US Sen. Maggie Hassan says the music streaming giant told her office that it took down tens of thousands of podcasts promoting the drugs last year after her office raised concerns about the issue.
Business Insider first flagged the problem in May 2025, reporting that over 200 Spotify podcasts were peddling opioids, which were removed. CNN also found dozens of such podcasts in a later investigation.
Hassan, a Democrat from New Hampshire, says Spotify told her office that, through November 2025, the company had removed over 57,000 podcast episodes, including over 3,000 shows and 3,500 accounts promoting illegal drugs.
In a statement, Hassan's office said Spotify was slow to take action despite months of correspondence and didn't report any of the content it removed to law enforcement.
This lack of reporting was especially concerning given that one of the episodes flagged by the senator included a link to a drug-selling website that was later seized by law enforcement, including the Drug Enforcement Administration, Hassan said in the statement.
"Failure to swiftly detect and remove dangerous content and also report it to law enforcement can lead to harrowing consequences — whether that's a teenager who buys drugs online that could be laced with deadly fentanyl or a senior who falls for a scam that wipes out their retirement savings," Hassan said.
Spotify denied to Business Insider that it was slow to act, saying it began purging the podcasts as soon as it became aware of them in May 2025.
"We have a 24/7 operation in place to tackle these evolving threats, and we are regularly identifying and removing content that violates our guidelines," a Spotify spokesperson said.
Spotify also said the episodes were part of a much larger spam operation meant to boost visibility on other websites, not a direct attempt to sell drugs to Spotify users.
"Drugs cannot be bought or sold on Spotify," the spokesperson added.
The podcasts in question were largely devoid of spoken content and failed to attract meaningful engagement, Spotify said, according to a June report compiled by Sen. Hassan's office. The report also cited Business Insider's reporting.
Spotify didn't directly respond to Sen. Hassan's claim that it failed to report any of the episodes to authorities, telling Business Insider that it has "a long history of working with law enforcement when content violates the law."
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Charles Rollet is BI's tech correspondent in San Francisco. Prior to joining BI, Charles worked at TechCrunch covering startups and VC. Charles is based in the Bay Area, where he enjoys hiking with his dogs. You can contact Charles securely on Signal at charlesrollet.12 or +1-628-282-2811.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$405.00▼
$785.00P/E Ratio38.31
Price Target$655.92
Shares of the world’s most dominant player in music streaming, Spotify Technology NYSE: SPOT, have come under significant pressure in the past 52 weeks. In June of last year, Spotify hit its all-time highs, trading well above $750. However, the stock has come way down since, now trading more than 30% below those highs.
Over this time, growth has fallen considerably, raising alarms around Spotify’s valuation, which reached elevated levels in 2025. Spotify’s latest earnings report didn’t help either, with shares tanking more than 12% afterward.
Get Spotify Technology alerts:
However, the company recently held its first Investor Day in four years, during which it revealed ambitious goals as it seeks to change the narrative around its stock and focus on its North Star initiatives. After going through a difficult stretch, investors are buying in.
Rewinding Spotify’s Story: Shares Take a Big Hit as Growth FallsMuch of the drop in Spotify shares has come due to a combination of two factors: decelerating growth and a high multiple. Notably, in 2024, Spotify posted strong full-year currency-neutral growth of 20% year-over-year (YOY), a strong acceleration from 16% YOY growth in 2023.
However, the company’s growth rate really started to come down in the middle of 2025. In Q2 2025, Spotify posted currency-neutral growth of 15% YOY, but currency headwinds pushed reported growth to just 10% YOY. This was a significant drop-off from over 15% reported growth in the prior quarter and was one of Spotify's lowest quarterly growth rates ever.
At the same time, Spotify was trading at an elevated forward price-to-earnings (P/E) ratio above 60x during the middle of 2025. This level was not consistent with low double-digit and decelerating growth, despite Spotify’s stalwart position in the music streaming industry. Spotify’s reported revenue increased by less than 7% YOY in the last quarter of 2025, and currency-neutral growth was 13% YOY. Overall, through a combination of currency headwinds and underlying deceleration, Spotify’s growth fell significantly, with its forward P/E and stock price falling along the way.
Spotify was able to slightly re-accelerate its reported growth to 8.2% in Q1 2026 and currency-neutral growth to 14% YOY. The company also posted beats on both the top and bottom lines. However, the stock fell 12% anyways, based on weak guidance and concerns over premium subscriber growth.
In this context, the company’s Investor Day in May was a clear opportunity to win back the support of markets, and it did just that.
Spotify Eyes Mid-Teens Growth, Large Margin Expansion in Path to North StarsAt its Investor Day, Spotify announced several key targets that got the attention of markets, with shares spiking 20% in the following two days. First off, the company guided for mid-teens currency-neutral annual growth through 2030.
Although “mid-teens” is within the decelerating growth rates that Spotify has been recently putting up, investors still took this as a clear positive. Notably, this target shows that Spotify does not expect the deceleration in its growth that has weighed on shares to continue. Additionally, Spotify is the leader in the increasingly penetrated music streaming industry. As penetration rises, investors tend to naturally expect growth rates to fall, as it becomes more difficult to find new customers. Thus, Spotify’s expectation that growth will at least remain stable long-term indicates resilience against penetration concerns.
Spotify also expects to see very significant margin expansion by 2030. The firm is targeting gross margins of between 35% and 40%. This implies a sizable increase of between 300 and 800 basis points compared to its 2025 gross margin of 32%. Meanwhile, Spotify projects an operating margin increase of more than 700 basis points, moving from around 13% in 2025 to over 20% in 2030.
All of this goes back to Spotify achieving its three longer-term “North Stars": 1 billion subscribers, $100 billion in annual revenue, and over 40% gross margin. Converting non-paying users to subscribers is one of the key levers that the firm aims to pull to achieve its North Stars.
The company notes that 71% of its subscribers use its free offering before converting to the premium offering. Thus, with over 450 free users, the company could add more than 300 million premium subscribers over time if that 71% figure holds. This would result in the firm more than doubling its current subscriber count of nearly 300 million to over 600 million, putting it much closer to the 1 billion subscriber goal.
Analysts Point to Upside Ahead After Spotify’s Investor DaySpotify Technology Stock Forecast Today12-Month Stock Price Forecast:
$655.92
36.43% Upside
Moderate Buy
Based on 29 Analyst Ratings
Current Price$480.77High Forecast$900.00Average Forecast$655.92Low Forecast$400.00Spotify Technology Stock Forecast Details
Wall Street analysts also reacted positively to Spotify’s Investor Day, with MarketBeat tracking several price target increases. More broadly, analysts are showing solid support for Spotify’s outlook. The MarketBeat consensus price target near $656 implies about 35% upside in shares, while Spotify has zero Sell ratings, six Holds, and 23 Buys.
Even after the stock’s recent spike, Spotify trades at a forward P/E near 33x, well below its 51x average since the start of 2025.
Overall, Spotify is showing strong confidence in its ability to continue growing steadily and expand margins at a fast pace in pursuit of its North Stars. Meanwhile, the stock is trading meaningfully below prior levels, skewing Spotify’s outlook to the upside going forward.
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On June 11, 2026, Spotify Technology SA SPOT shares fell 3.4% today, currently priced at $486.00. Over the past 52 weeks, the stock has ranged from a low of $405.00 to a high of $785.00.
GF Value™ verdict: Current price is $486.00, compared to GF Value™ of $486.90, indicating a 0.2% undervalued status.GF Score™ is 73/100, suggesting an above-average potential for long-term returns.Notable signal: Insiders sold $59.7M worth of stock in the last 3 months, with no buying activity. Is SPOT Overvalued or Undervalued? The current price of Spotify Technology SA SPOT at $486.00 is marginally below its GF Value™ of $486.90, indicating a slight undervaluation of 0.2%. This suggests that there may be a small margin of safety for potential investors, which could represent an opportunity for those looking to enter the stock. The GF Valuation label categorizes SPOT as fairly valued, providing a balanced view of its current market position.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the slight undervaluation offers a potential entry point, investors should consider the broader market conditions, including SPOT's recent price performance and insider selling activity, which may indicate caution.
How Does SPOT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 38.8x 102.6x (5-Year Median) Forward P/E 32.2x N/A SPOT's current P/E ratio of 38.8x is significantly below its 5-year median of 102.6x, suggesting that the stock is trading at a more favorable valuation compared to its historical performance. The forward P/E of 32.2x further supports this trend of undervaluation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that SPOT is currently undervalued compared to its historical valuation metrics.
What Does SPOT's GF Score™ Tell Us? Metric Rating GF Score™ 73 Financial Strength 9/10 Profitability 4/10 Growth 8/10 Valuation 7/10 Momentum 2/10 The GF Score™ for Spotify Technology SA SPOT stands at 73/100, indicating strong potential for long-term returns. The strongest area is Financial Strength, rated 9/10, suggesting robust financial health. Conversely, the weakest area is Momentum, rated only 2/10, which could indicate challenges in stock price performance in the short term. Overall, while SPOT has solid growth and valuation metrics, the low momentum score may warrant caution.
What Are Insiders Doing with SPOT Stock? In recent months, insider activity has indicated a bearish sentiment towards Spotify Technology SA SPOT , with insiders selling a total of $59.7 million in shares without any buying activity. This pattern of significant selling may suggest a lack of confidence among insiders regarding the stock's near-term performance or potential for growth.
Insider selling, particularly at this scale, could be interpreted as a red flag for investors. However, it is essential to consider the context behind these transactions, including individual financial needs or strategic reallocation of assets.
What This Means for Investors Based on the current GF Value™ of $486.90 compared to the market price of $486.00, Spotify Technology SA SPOT is fairly valued with a slight undervaluation of 0.2%. While this presents a potential opportunity, investors should remain aware of the recent insider selling and low momentum scores, which may impact short-term price movements.
For the complete analysis, visit the Spotify Technology SA SPOT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SPOT's GF Score™?
SPOT's GF Score™ is 73/100, indicating above-average potential for long-term returns based on its financial health and growth prospects.
Is SPOT overvalued or undervalued?
SPOT is currently slightly undervalued according to GF Value™, with a current price of $486.00 compared to a GF Value™ of $486.90.
What is SPOT's P/E ratio?
SPOT's P/E ratio (TTM) is 38.8x, which is significantly lower than its 5-year median of 102.6x, suggesting a more favorable valuation compared to its historical performance.
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].
In the latest trading session, Spotify (SPOT - Free Report) closed at $485.34, marking a -3.53% move from the previous day. This change lagged the S&P 500's daily gain of 1.75%. Elsewhere, the Dow saw an upswing of 1.86%, while the tech-heavy Nasdaq appreciated by 2.54%.
Coming into today, shares of the music-streaming service operator had gained 16.76% in the past month. In that same time, the Computer and Technology sector lost 3.11%, while the S&P 500 lost 1.63%.
The investment community will be closely monitoring the performance of Spotify in its forthcoming earnings report. The company's upcoming EPS is projected at $3.31, signifying a 789.58% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.6 billion, up 17.66% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.72 per share and a revenue of $22.73 billion, signifying shifts of +23.8% and +16.98%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% lower. Spotify is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 34.18. For comparison, its industry has an average Forward P/E of 18.59, which means Spotify is trading at a premium to the group.
It is also worth noting that SPOT currently has a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.04 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
NXP Semiconductors (NXPI - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for NXP is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for NXP imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for NXPFor the fiscal year ending December 2026, this chipmaker is expected to earn $14.71 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for NXP. Over the past three months, the Zacks Consensus Estimate for the company has increased 9.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of NXP to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Shares of NXP Semiconductors (NXPI +0.86%) rose 49.1% in April 2026, according to data from S&P Global Market Intelligence. The Dutch-American chipmaker beat Wall Street's estimates in last week's first-quarter report. According to management's guidance targets, its revenue growth is accelerating. That's a powerful combo, and the report sent NXP's stock soaring.
Image source: The Motley Fool.
The numbers behind the 49% surge Let's start with the basic numbers.
NXP's sales rose 12% year over year to $3.18 billion. Your average analyst had expected $3.15 billion. On the bottom line, adjusted earnings jumped from $2.64 to $3.05 per share. Here, the Street would have settled for $2.98 per share.
Looking ahead, management set the midpoint of their Q2 guidance range at $3.45 billion, well ahead of the analyst consensus of $3.27 billion.
During the first quarter, NXP unveiled new products and services across healthcare, vehicle automation, and industrial computing. The new eIQ agentic AI framework helps customers set up secure edge computing functions and services. A robotics platform first shown in March was developed in partnership with AI giant Nvidia (NVDA +0.15%).
Thanks to this broad range of AI initiatives, NXP's management expects data center revenues to more than double in 2026. A move from $200 million to $500 million per year may seem small in the context of multibillion-dollar total revenues per quarter, but the growth story has to start somewhere.
In the automotive industry, the company is looking for more chip wins per car, rather than a larger portfolio of customers in this sector. That's a benefit in an era of flattish vehicle unit shipments.
In other words, NXP is getting busy in the core target markets of automotive and industrial computing. The company is growing faster than expected, playing an active role in the ongoing AI boom.
The stock rose 26.6% the next day, trading at fresh all-time highs. Thanks to robust business growth, NXP shares still look quite affordable at 27.8 times trailing earnings and a price/earnings-to-growth (PEG) ratio of 0.82. As a reminder, PEG ratios below 1 suggest that the stock may be undervalued in the context of its earnings growth prospects.
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A leaner, meaner chipmaker emerges Amid these soaring financials, NXP is moving its manufacturing operations to a less capital-intensive model. Older chipmaking facilities are being upgraded to more modern equipment that can handle larger silicon wafers. At the same time, the company is selling a handful of less profitable facilities and outsourcing more work to Taiwan Semiconductor Manufacturing (TSM +0.46%).
And the company approaches the AI data center opportunity from a different angle than Nvidia and others.
"We are not claiming exposure to the data plane -- no GPUs, no accelerators, no high-speed AI connectivity," CEO Rafael Sotomayor said on the earnings call. "Our domain is in the control plane. As data centers scale, the constraints are not just compute and memory; they are also power, cooling, uptime, and security, and this is where NXP Semiconductors plays."
So NXP's products make modern data centers run cooler and more efficiently, saving electric power and other assets around the headline-writing AI accelerator systems. That's a fantastic growth market, too. If you haven't considered NXP stock before, you should take a look before the AI sales really take off.
Key Takeaways Global semiconductor sales climbed 25% in Q1 2026 as AI demand fueled chip growth.NVDA, ADI, TXN and NXPI are benefiting from strong AI and semiconductor demand trends.Deloitte projects the semiconductor market to reach $975 billion in annual sales this year. The semiconductor industry has been having a dream run since 2024, and the momentum has continued into this year. Robust demand for artificial intelligence (AI) has seen semiconductor giants invest billions of dollars in infrastructure.
Semiconductor stocks have primarily been responsible for the broader market rally, which has seen the S&P 500 and Nasdaq hit new all-time closing highs lately.
Given this scenario, it would be ideal to invest in semiconductor stocks, such as NVIDIA Corporation (NVDA - Free Report) , Analog Devices (ADI - Free Report) , Texas Instruments (TXN - Free Report) and NXP Semiconductors (NXPI - Free Report) , which have great potential for growth this year.
Semiconductor Sales RiseGlobal semiconductor sales totaled $298.5 billion in the first quarter of 2026, up 25% from the previous quarter, the Semiconductor Industry Association (“SIA”) announced earlier this week.
Year over year, global semiconductor sales totaled $99.5 billion in March, jumping 79.2% from March 2025’s total of $55.5 billion. Month over month, sales jumped 11.5% from February.
“Global chip sales remain on track to reach $1 trillion in 2026, with Q1 sales significantly exceeding sales in Q4 2025. Strong sales across the Asia Pacific region, the Americas, and China drove global semiconductor market growth, highlighting broad and robust demand for semiconductors and the countless tech products they enable,” John Neuffer, SIA president and CEO, said.
The surge in sales in the first quarter of the year follows a stellar 2025. Revenues in the fourth quarter of 2025 hit $236.6 billion. Robust demand for logic and memory chips has continued to drive growth across the sector.
Semiconductors have become essential to almost every modern and emerging technology, including IoT, 6G, and artificial intelligence. Rising demand from the automotive industry has also contributed to higher chip sales. At the same time, the rapidly expanding AI market — still considered to be in its early stages — is pushing major technology companies to pour billions into development and infrastructure.
As large tech firms continue investing heavily in AI infrastructure, investor confidence in chipmakers has strengthened. According to LSEG data cited by Reuters, the semiconductor sub-industry is expected to post first-quarter earnings growth of 109.2%, far ahead of the broader S&P 500 information technology sector’s projected 48.2% growth.
The ongoing AI-driven infrastructure boom is also expected to support long-term industry expansion. A Deloitte reportprojects that the global semiconductor market could generate $975 billion in annual sales this year.
4 Semiconductor Stocks With UpsideNVIDIA CorporationNVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 69.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. NVDA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog DevicesAnalog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.
Analog Devices’ expected earnings growth rate for the current year is 45.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ADI currently carries a Zacks Rank #2.
Texas InstrumentsTexas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Texas Instruments’ strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.
Texas Instruments’ expected earnings growth rate for the current year is 39.5%. The Zacks Consensus Estimate for current-year earnings has improved 19.1% over the past 60 days. Currently, TXN carries a Zacks Rank #1.
NXP SemiconductorsNXP Semiconductors provides high-performance, mixed-signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise. NXPI seems well-positioned to capitalize on the level 2-5 automotive market. Additionally, NXP Semiconductors is the leader in general-purpose microcontrollers and application processors in industrial and IoT markets.
NXP Semiconductors’ expected earnings growth rate for the current year is 24.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. NXPI carries a Zacks Rank #2 at present.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: NXP Semiconductors (NXPI - Free Report) NXP Semiconductors N.V. provides high-performance mixed signal and standard product solutions that leverage its expertise in cryptography security, high-speed interface, radio frequency (RF), mixed-signal analog-digital (mixed A/D), power management, digital signal processing, and embedded system design. Its solutions are used in a wide range of applications, namely automotive, industrial & Internet of Things (IoT), mobile and communication infrastructure.
NXPI is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. NXPI has a Momentum Style Score of A, and shares are up 44.2% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.74 to $14.71 per share. NXPI boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, NXPI should be on investors' short list.
On May 11, 2026, NXP Semiconductors NV NXPI shares rose 3.8% to a current price of $305.99. This performance is part of a broader trend, with the stock gaining 49.7% over the past month and 62.5% over the past year. The shares have fluctuated between a 52-week high of $306.62 and a low of $183.00.
GF Value™ verdict: Current price of $305.99 is 35.4% above GF Value™ of $226.07.GF Score™ of 91/100 indicates a strong performance across key metrics.Notable signal: Insiders have sold $2.5M in stock over the last 3 months without any purchases. Is NXPI Overvalued or Undervalued? According to GF Value™, NXP Semiconductors NV is currently significantly overvalued with a fair value estimate of $226.07. With the current price standing at $305.99, this represents a 35.4% premium to its intrinsic value. The substantial gap between the market price and the estimated fair value indicates a lack of margin of safety for potential investors. As per the GF Valuation label, the stock is categorized as significantly overvalued, suggesting that there is considerable risk associated with investing at this level.
When a stock is overvalued, it typically means that the market has high expectations for the company's future performance, which may not be met. This can lead to price corrections if the company fails to deliver on growth or profitability expectations. Conversely, undervalued stocks might present opportunities for gains if the market recognizes their true value over time. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does NXPI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 29.3x 22.3x Forward P/E 20.9x - NXP Semiconductors NV's current P/E (TTM) of 29.3x is significantly above its 5-year median P/E of 22.3x, representing a 31% premium. The forward P/E of 20.9x suggests a slightly more favorable valuation looking ahead, yet still indicates that the stock is trading above its historical valuation metrics. This P/E analysis aligns with the GF Value™ verdict of being overvalued, reinforcing the caution that comes with investing in NXPI at its current price level.
What Does NXPI's GF Score™ Tell Us? Metric Rating GF Score™ 91/100 Financial Strength 6/10 Profitability 9/10 Growth 9/10 Valuation 5/10 Momentum 7/10 The GF Score™ of 91/100 signals a strong overall performance, particularly in profitability and growth, both scoring 9/10. However, the financial strength rating of 6/10 and valuation rank of 5/10 indicate areas of concern. The stock's strong profitability and growth metrics suggest robust operational capabilities, but the average valuation score points to potential overvaluation risks in the current market environment.
What Are Insiders Doing with NXPI Stock? In the last three months, insider activity has shown a notable trend, with insiders selling approximately $2.5 million worth of NXPI stock. This pattern of selling without any simultaneous buying might suggest a lack of confidence among insiders regarding the stock's future price performance. Generally, a significant amount of insider selling can be interpreted as a cautionary signal for potential investors regarding the stock's near-term outlook.
What This Means for Investors Based on the current analysis, NXP Semiconductors NV is considered overvalued according to GF Value™, which estimates the fair value at $226.07 compared to the current price of $305.99. Potential investors may want to exercise caution given the significant overvaluation and recent insider selling activity.
For the complete analysis, visit the NXP Semiconductors NV NXPI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is NXPI's GF Score™?
NXPI has a GF Score™ of 91/100, indicating a strong performance across key metrics and a potential for generating higher long-term returns.
Is NXPI overvalued or undervalued?
NXPI is considered overvalued with a GF Value™ of $226.07 compared to the current price of $305.99, indicating a 35.4% overvaluation.
What is NXPI's P/E ratio?
The P/E ratio (TTM) for NXPI is 29.3x, which is 31% higher than its 5-year median P/E of 22.3x, suggesting that the stock is trading at a premium to its historical valuation.
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].
After reaching an important support level, NXP Semiconductors N.V. (NXPI - Free Report) could be a good stock pick from a technical perspective. NXPI recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
NXPI has rallied 40.2% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates NXPI could be poised for a breakout.
The bullish case only gets stronger once investors take into account NXPI's positive earnings outlook for the current quarter. There have been 11 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting NXPIon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
Washington is signaling renewed engagement with Beijing, and investors are trying to figure out which stocks would benefit if tariffs ease, export controls loosen, and Chinese consumer demand stabilizes. Prediction markets currently put the odds of a tariff reduction announcement at 53% and AI export restriction relief at roughly 51%. Here we look at five names with meaningful China exposure to see whose business is most directly levered to a thaw.
Five Stocks Most Exposed to a U.S.-China Thaw Apple (NASDAQ: AAPL | AAPL Price Prediction) is the cleanest play. iPhones are largely assembled in China, and Greater China generated $16.4 billion in the March quarter, or roughly 18.0% of total revenue. Tim Cook cited $1.4 billion in Q1 tariff costs, so relief flows straight to margins.
Qualcomm (NASDAQ: QCOM) sells Snapdragon chips powering most premium Chinese Android phones. Handset revenue fell 13% to $6.02 billion last quarter, weighed by Chinese OEM softness.
Broadcom (NASDAQ: AVGO) makes custom AI accelerators and networking silicon. AI revenue hit $8.4 billion, up 106% year-over-year, with management guiding to $10.7 billion next quarter. China export rules cap a meaningful slice of that market.
NXP Semiconductors (NASDAQ: NXPI) supplies automotive and industrial chips, with automotive at $1.782 billion last quarter. Chinese EV and industrial customers are core to that book.
Nike (NYSE: NKE) manufactures heavily in Asia and depends on the Chinese consumer. Greater China revenue was $1.615 billion last quarter, down 7% reported.
How Each Business Is Positioned Company China Exposure Trend Lever Apple Manufacturing + ~17% revenue Tariffs, consumer demand, App Store Qualcomm Chinese OEM handset sales Snapdragon volume recovery Broadcom AI chip export limits Easing advanced-chip restrictions NXP Auto/industrial customers in China Supply chain stability Nike Manufacturing + ~14% revenue Tariff relief, China consumer Apple sits on both sides of the trade: it builds product in China and sells heavily into it. Qualcomm and NXP are pure customer-demand stories. Broadcom’s lever is narrower but powerful, tied to whether advanced AI silicon can ship more freely. Nike’s path is longest, since the company is rebuilding brand momentum on top of any policy tailwind.
What Management Is Saying Apple CEO Tim Cook: “Greater China was up 38% year on year. It was driven by iPhone, where we set an all-time revenue record.”
Qualcomm CEO Cristiano Amon: “We are pleased to deliver results in line with our guidance, reflecting solid execution as we navigate a challenging memory environment.” Amon expects Chinese handset revenue to bottom in Q3 and return to sequential growth.
Broadcom CEO Hock Tan: “Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.”
NXP CEO Rafael Sotomayor: “The momentum we have built is expected to accelerate through the remainder of 2026.”
Nike CEO Elliott Hill: “We are even more committed to the opportunity for growth in China… our path to winning in China is through sport.” CFO Matt Friend pegged annualized tariff costs at roughly $1.5 billion.
Who Actually Benefits Most Apple looks best positioned. It makes its highest-volume product in China, sells billions of dollars back into the same market, and runs services across an installed base that crossed 2.5 billion active devices. Tariff relief flows directly to gross margin, improved supply chain flexibility would expand manufacturing capacity, and any easing on App Store or AI deployment in China unlocks the services flywheel.
Qualcomm benefits next, with a direct line to Chinese OEM recovery. NXP and Broadcom gain through industrial demand and any softening of advanced-chip export rules. Nike has the right China commitment, though its turnaround depends more on product and brand work than policy.
The Bottom Line A U.S.-China thaw would lift every name here, but Apple has the most leverage because it touches manufacturing, consumer demand, services, and tariff cost in one business. Qualcomm, Broadcom, NXP, and Nike all carry real China exposure worth watching. Watch for tariff headlines and any signals on chip export rule changes in the coming months.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at NXP Semiconductors (NXPI - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. NXP Semiconductors currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if NXPI is a promising momentum pick, let's examine some Momentum Style elements to see if this chipmaker holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For NXPI, shares are up 8.57% over the past week while the Zacks Semiconductor - Analog and Mixed industry is up 2.75% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 33.6% compares favorably with the industry's 13.06% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of NXP Semiconductors have risen 40.8%, and are up 64.7% in the last year. On the other hand, the S&P 500 has only moved 7.85% and 30.1%, respectively.
Investors should also take note of NXPI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now NXPI is averaging 4,117,982 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with NXPI.
Over the past two months, 11 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost NXPI's consensus estimate, increasing from $13.97 to $14.77 in the past 60 days. Looking at the next fiscal year, 9 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that NXPI is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep NXP Semiconductors on your short list.
On May 26, 2026, NXP Semiconductors NV NXPI shares rose 5.1% to a current price of $332.67. The stock has had a remarkable performance, showing a 54.1% increase year-to-date and a notable 76.4% rise over the past year. The shares are currently trading near their 52-week high of $334.90, a significant jump from their 52-week low of $183.00.
GF Value™ verdict: The current price of $332.67 is 45.7% above the GF Value™ estimate of $228.29, indicating the stock is overvalued.GF Score™: NXPI has a strong GF Score™ of 91/100, suggesting it has solid fundamentals that could lead to long-term returns.Most notable signal: Insiders sold $2.5M in stock over the last 3 months, indicating a lack of buying interest from management. Is NXPI Overvalued or Undervalued? NXP Semiconductors NV NXPI appears to be significantly overvalued at its current price of $332.67, which is 45.7% above the GF Value™ estimate of $228.29. This substantial margin indicates a risk for potential investors, as the price exceeds what the intrinsic value suggests. The GF Valuation label categorizes NXPI as "Significantly Overvalued," which raises concerns about sustainability in the current price level.
Investors should consider the implications of this overvaluation as it could lead to a price correction if the market adjusts to align with fundamental valuations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Therefore, the current valuation level raises questions regarding the sustainability of the stock price amidst potential market corrections.
How Does NXPI's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)31.8x22.3x Forward P/E22.6x- The current P/E ratio of 31.8x is significantly higher than the 5-year median P/E of 22.3x, indicating that NXPI is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict that suggests the stock is overvalued, raising further concerns about the sustainability of the current price levels.
What Does NXPI's GF Score™ Tell Us? MetricRating GF Score™91/100 Financial Strength6/10 Profitability9/10 Growth9/10 Valuation5/10 Momentum8/10 The GF Score™ of 91/100 suggests that NXP Semiconductors has strong fundamentals, particularly in profitability and growth, where it scores 9/10. However, the valuation score of 5/10 indicates that concerns regarding its current price level persist. Overall, while NXPI shows robust performance indicators, its valuation metrics highlight a weak spot that may pose risks to future returns.
What Are Insiders Doing with NXPI Stock? In recent months, insider activity has shown a notable trend, with insiders selling $2.5 million worth of stock and no reported buying. This lack of insider buying may suggest that those close to the company are not confident in the current price levels or future performance, which could be a red flag for potential investors. The selling activity indicates that insiders may believe the stock is overvalued at its current price.
What This Means for Investors Based on the GF Value™ assessment, NXP Semiconductors NV NXPI is currently overvalued. The significant disparity between the current price and the estimated intrinsic value raises concerns about the stock's sustainability at these levels. Caution may be warranted for investors considering entry at this time.
For the complete analysis, visit the NXP Semiconductors NV NXPI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is NXPI's GF Score™?
NXPI's GF Score™ is 91/100, indicating strong fundamentals that could lead to higher long-term returns.
Is NXPI overvalued or undervalued?
NXPI is currently overvalued, with a price of $332.67 that is 45.7% above the GF Value™ estimate of $228.29.
What is NXPI's P/E ratio?
NXPI's P/E ratio is 31.8x, which is significantly above its 5-year median P/E of 22.3x, suggesting that the stock is trading at a premium compared to its historical valuation.
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].
NXP Semiconductors (NXPI - Free Report) ended the recent trading session at $329.24, demonstrating a -1.03% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.07%.
The chipmaker's shares have seen an increase of 44.39% over the last month, surpassing the Computer and Technology sector's gain of 9.97% and the S&P 500's gain of 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.52, showcasing a 29.41% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.47 billion, showing a 18.48% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.77 per share and revenue of $14.03 billion. These totals would mark changes of +25.06% and +14.32%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for NXP Semiconductors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 6.53% rise in the Zacks Consensus EPS estimate. Currently, NXP Semiconductors is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, NXP Semiconductors is holding a Forward P/E ratio of 22.53. This expresses a discount compared to the average Forward P/E of 69.14 of its industry.
One should further note that NXPI currently holds a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.16.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
It has been about a month since the last earnings report for NXP Semiconductors (NXPI - Free Report) . Shares have added about 13.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NXP due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for NXP Semiconductors N.V. before we dive into how investors and analysts have reacted as of late.
NXPI Q1 Earnings Beat Estimates on Broad-Based End DemandNXP Semiconductors posted better-than-expected results for the first quarter of 2026, supported by improving demand across its key markets and continued traction in newer growth programs. Non-GAAP earnings came in at $3.05 per share, up 16% year over year, and beat the Zacks Consensus Estimate by 2.46%.
Quarterly revenues were $3.18 billion, up 12% from the year-ago period, and topped the consensus mark by 1.95%. Channel inventory ended the quarter at 11 weeks, aligning with the company’s long-term target and reflecting a distribution pipeline positioned to support near-term demand.
NXPI’s End Markets Show Broad-Based StrengthAutomotive remained the largest contributor, generating $1.78 billion of revenues in the quarter, up 6% year over year. Management highlighted accelerating software-defined vehicle programs, improving electrification trends, and momentum in radar and connectivity as key contributors.Industrial & IoT revenues rose to $628 million, increasing 24% year over year and landing near the high end of guidance. The company pointed to strength in factory automation, data centers and energy storage, with newer industrial processing solutions such as i.MX, RT and MCX driving a meaningful share of the segment’s growth.
Mobile revenues came in at $391 million, rising 16% year over year. Management tied the performance to continued strength in its secure mobile transactions franchise, indicating steady demand for solutions that support secure payments and authentication use cases.
Communication Infrastructure & Other revenues reached $380 million, up 21% year over year. Management cited digital networking exposure tied to data center applications and ongoing ramps of its UCODE RFID product as key drivers, pointing to improving conditions versus the prior year’s softer baseline in this segment.
NXPI Expands Profitability on Mix and EfficiencyNon-GAAP gross profit increased 14% year over year to $1.82 billion, while non-GAAP gross margin expanded 100 basis points to 57.1%, modestly above guidance on solid fall-through from higher revenues. The company also benefited from product mix improvements and front-end utilization progress.
Non-GAAP operating income soared 16% year over year to $1.05 billion. Non-GAAP operating margin expanded 120 basis points to 33.1%, underscoring disciplined execution as volumes improved.
NXPI’s Cash Generation Supports Shareholder ReturnsNXP Semiconductors generated $793 million of cash flow from operations in the quarter. Net capital expenditures were $79 million, resulting in non-GAAP free cash flow of $714 million, or 22.4% of revenues.
Capital return totaled $358 million, comprising $256 million in dividends and $102 million in share repurchases. The company also repurchased an additional $32 million of shares after quarter end under a 10b5-1 program, reinforcing its ongoing commitment to return excess cash to shareholders.
NXP Semiconductors Maintains a Strong Balance SheetThe company ended the quarter with $11.7 billion of total debt and $3.71 billion in cash, with net debt of about $8.0 billion. Management said that cash usage reflected debt repayments, joint venture investments, capital returns and capital spending, partly offset by cash generation and proceeds from the MEMS Sensors divestiture.
NXP Semiconductors completed the sale of its MEMS Sensors business during the quarter, receiving $878 million in cash proceeds at closing. The company also continued to manage its maturity profile, retiring a $500 million tranche due in March and another $750 million tranche due in June after the quarter closed.
NXP Semiconductors Expects a Stronger Second QuarterFor the second quarter of 2026, NXPI expects revenues in the range of $3.35-$3.55 billion. The midpoint of $3.45 billion implies 18% year-over-year growth and an 8% sequential increase. Non-GAAP earnings are expected to be in the $3.29-$3.72 band (midpoint $3.50). Management anticipates broader customer adoption of its products across regions and end markets during the second quarter.
Profitability is also expected to improve sequentially, with non-GAAP gross margin guided at 58% at the midpoint and operating margin projected at 34.7%. The company expects operating expenses of about $804 million, reflecting normal annual merit increases and an annual RFID licensing fee.
NXP Semiconductors Highlights Data Center MomentumManagement provided additional transparency on its data center exposure, emphasizing a focus on the control plane rather than accelerators or data-plane compute. The company said that data center-related revenues were about $200 million in 2025 and are expected to exceed $500 million in 2026, supported by a ramp-up in system cooling, power supply, board management and control-plane switching applications.
NXP Semiconductors also reiterated that its industrial-grade processing and security capabilities are differentiators for this opportunity, pointing to products such as Layerscape networking processing, i.MX processors for board management and microcontrollers in security and cooling subsystems. These, alongside continued investment in automotive and industrial processing platforms, underpin management’s view that momentum should build through the remainder of 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 12.36% due to these changes.
VGM ScoresAt this time, NXP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise NXP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
These 3 AI Stocks Just Crushed Earnings: Still Time To Buy?NXP Semiconductors NASDAQ: NXPI is seeing a more constructive demand environment than it did several months ago, particularly in automotive, Executive Vice President of Investor Relations Jeff Palmer said at TD Cowen’s Technology, Media & Telecom Conference.
Speaking with TD Cowen semiconductor analyst Joshua Buchalter, Palmer said NXP is “more optimistic than we have been in a while” compared with 90 to 180 days ago. Automotive accounts for 58% of the company, and Palmer said improvement in that market tends to lift the company’s broader outlook.
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Why NXP Semiconductors’ Post-Earnings Dip Could Be a Buying WindowPalmer pointed to several indicators suggesting improving demand, including a book-to-bill ratio “solidly above one,” building end-customer backlog through distribution, more late orders and expedites, and lengthening lead times.
He also said NXP raised some prices in the first quarter due to inflationary input costs and expects additional increases in the second half. The cost pressure is coming primarily from energy, transportation, precious metals and substrates, rather than wafers, he said.
NXP Semiconductors Set to Break Out as AI and Analyst Support Surge“Customers never like price increases,” Palmer said. He added that NXP is not trying to expand margins through pricing, but to maintain gross margins when the company cannot offset input cost inflation operationally.
Automotive Demand Improves as Inventory Headwinds Ease Palmer said NXP expects the automotive business to grow this year, including in China. He noted that global auto production has been relatively flat for years at roughly the high-80-million to 90-million-vehicle range, while NXP’s automotive business has grown at a 9% compound annual growth rate over the past three years and 13% over the past five years.
That performance, Palmer said, reflects the company’s focus on semiconductor content per vehicle rather than total industry unit growth.
In China, Palmer said the automotive market has its own seasonal pattern, with strong fourth-quarter activity, a pause in the first quarter and then resumed activity. He said NXP had anticipated some China softness in its first-quarter guidance. However, he added that China automotive revenue for NXP was up in the first quarter, though “not up great,” and that China is participating in the company’s second-quarter automotive growth outlook.
In North America and Europe, Palmer said a prolonged inventory correction among some Tier 1 suppliers is “finally behind us.” He said some Tier 1 customers are now buying to end demand, while others remain under-inventoried and are running leaner working capital metrics than in the past.
Palmer warned that customers that do not provide adequate forecasts could face delays because NXP’s cycle times from fabrication to finished product are three to six months.
Software-Defined Vehicles Remain a Major Growth Driver Palmer outlined four accelerated growth drivers in NXP’s automotive business: software-defined vehicles, 77 GHz radar, electric vehicle products and connectivity.
The largest is software-defined vehicles, centered on NXP’s S32 MPU family, K1 series zonal processors, automotive Ethernet and software. Palmer said that business was $1 billion in 2024, more than $1 billion in 2025 and is expected to reach about $2 billion by the end of 2027. He said the growth expected over that period is based on existing design wins, not future wins the company still needs to secure.
Palmer said NXP made a strategic decision about seven years ago to invest in high-performance automotive MPUs rather than simply another microcontroller family. The company believed automakers were moving away from flat point-to-point vehicle architectures toward more hierarchical computing systems.
He said Western automakers’ software-defined vehicle models are likely to begin going on sale around the 2028 model year, in late 2027. Current NXP business in the area has been driven primarily by Chinese and Korean automakers, he said.
Palmer also discussed NXP’s acquisitions of TTTech Auto and Aviva Links. TTTech Auto brought the MotionWise middleware operating system and roughly 1,200 automotive software and security specialists, he said. Aviva Links provides multi-gigabit asymmetric SerDes technology suited for applications such as ADAS cameras, radar, lidar and in-cabin displays. Palmer said revenue from Aviva Links is not expected until next year at the earliest.
Data Center Revenue Expected to Rise NXP recently highlighted a data center business that Palmer said generated $200 million last year and is expected to reach $500 million this year. He emphasized that NXP participates in the control plane, not the data plane, and does not compete with accelerator companies.
The business includes Layerscape-based products used in top-of-rack switches and network interface cards, as well as board management control products used for functions such as cooling, power management, security and inter-card communication.
Palmer said the Layerscape products have benefited from hyperscalers building proprietary AI racks. Design wins had been awarded several years ago, but revenue did not begin accelerating until late last year, he said.
NXP estimates its serviceable available market in the data center area at about $4 billion, growing at roughly a 10% CAGR, Palmer said. He added that the company aims to grow its $500 million data center revenue base at a multiple of that market growth rate.
Industrial Edge AI and Manufacturing Outlook In industrial and IoT, Palmer said more customers want to run distilled AI models locally rather than in the cloud. NXP’s i.MX processor families include variants with embedded neural processing units under the eIQ brand, and the company’s acquisition of Kinara added higher-performance Ara NPUs that can be paired with i.MX processors.
On manufacturing, Palmer said NXP produces about 40% of its wafers internally and 60% externally. Internal utilization is expected to be in the low-80% range in the first half and mid-80% range in the second half, he said, with some bridge stock being built ahead of the planned decommissioning of one factory.
Palmer said NXP’s gross margin target remains 57% to 63%. As a rule of thumb, the company expects each $1 billion of incremental revenue to contribute about 100 basis points of gross margin expansion, though mix can affect quarterly results. He said NXP believes it can grow revenue in the low double digits this year and next year, and that reaching $15 billion to $15.5 billion in revenue would imply about 60% gross margin under that framework.
He added that NXP’s VSMC joint venture in Singapore is expected to begin contributing benefits in 2028, with a full load adding about 200 basis points of corporate gross margin.
Capital Return Policy Remains in Place Palmer said NXP’s capital allocation policy is to return all excess free cash flow to shareholders through dividends or buybacks, after investments in the business. Recent cash needs included acquisitions and the Singapore joint venture fab, but Palmer said those demands should begin to taper in 2026 and 2027.
Over the past 10 years, Palmer said NXP has returned almost $23 billion to shareholders, representing roughly 95% to 96% of free cash flow generated.
About NXP Semiconductors NASDAQ: NXPINXP Semiconductors N.V. is a global semiconductor company headquartered in Eindhoven, the Netherlands, that designs and supplies mixed-signal and standard product solutions for a broad range of end markets. The company focuses on enabling secure connections and infrastructure for embedded applications, developing technologies used across automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure segments. NXP's offerings target customers that require reliable, secure, and high-performance semiconductor components for connected devices and systems.
Product lines include microcontrollers and application processors, secure elements and authentication technologies, RF and high-power analog components, connectivity solutions, and vehicle networking and infotainment systems.
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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NXP Semiconductors (NXPI - Free Report) ended the recent trading session at $295.96, demonstrating a -8.15% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 2.65%. Meanwhile, the Dow lost 1.35%, and the Nasdaq, a tech-heavy index, lost 4.18%.
Shares of the chipmaker have appreciated by 11.03% over the course of the past month, outperforming the Computer and Technology sector's gain of 10.37%, and the S&P 500's gain of 5.47%.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. In that report, analysts expect NXP Semiconductors to post earnings of $3.52 per share. This would mark year-over-year growth of 29.41%. Alongside, our most recent consensus estimate is anticipating revenue of $3.47 billion, indicating a 18.48% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.77 per share and a revenue of $14.03 billion, signifying shifts of +25.06% and +14.32%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, NXP Semiconductors boasts a Zacks Rank of #2 (Buy).
In the context of valuation, NXP Semiconductors is at present trading with a Forward P/E ratio of 21.82. For comparison, its industry has an average Forward P/E of 68.7, which means NXP Semiconductors is trading at a discount to the group.
We can additionally observe that NXPI currently boasts a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.19.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 7, positioning it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
On June 10, 2026, we present a DCF analysis for NXP Semiconductors NV NXPI , a company that has shown significant price performance over the past year. The stock has experienced a year-to-date increase of 37.7% and a one-year increase of 42.2%. However, it has recently faced a decline of 8.1% over the past week.
DCF Earnings-based intrinsic value of $408.72 vs current price of $297.41 (margin of safety: 29.3%) DCF FCF-based intrinsic value of $141.52 vs current price (significantly overvalued) GF Score™ of 91/100 indicates high reliability of the DCF inputs What Is NXPI Worth? DCF Earnings-Based Model The DCF earnings-based model for NXP Semiconductors NV uses a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we assume a robust growth rate of 21.0% for the next ten years, after which we transition to a terminal growth rate of 4% for the following decade. The discount rate applied is 11%, which combines the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $12.23 10-Year Growth Rate 21.0% 10-Year Treasury Rate 4.53% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 21.0%, discounted at 11% $202.64 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $206.08 Intrinsic Value Growth + Terminal $408.72 With the current price at $297.41 and the intrinsic value calculated at $408.72, NXPI appears to be modestly undervalued, offering a margin of safety of 29.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can visit the NXPI DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for NXPI is calculated at $141.52. This value significantly contrasts with the earnings-based intrinsic value of $408.72, indicating a divergence in valuation perspectives. The FCF model suggests that the stock is significantly overvalued, with a margin of safety of -110.2%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for NXP Semiconductors NV is $229.50, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. The three models present differing views on valuation, with the DCF earnings model suggesting undervaluation, the FCF model indicating overvaluation, and GF Value™ also suggesting overvaluation. For more information, visit the GF Value™ page.
What Does NXPI'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 found to generate higher long-term returns based on backtesting from 2006 to 2021. The current GF Score™ for NXPI is 91/100, indicating strong performance across these metrics.
Metric Rating GF Score™ 91/100 Financial Strength 6/10 Profitability 9/10 Growth 9/10 Valuation 5/10 Momentum 10/10 With a predictability rank of 0/5 stars, it is important to note that higher predictability ratings typically lead to more reliable DCF estimates. For further insights, visit the NXPI stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as NXPI, tend to produce less reliable DCF estimates. The terminal growth rate of 4% is also a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that there are conflicting signals regarding NXPI's valuation. While the DCF earnings model suggests that the stock is modestly undervalued, the DCF FCF model indicates significant overvaluation, and the GF Value™ also suggests overvaluation. Overall, the consensus leans towards a conclusion of overvaluation. For the full DCF analysis, visit the NXPI 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 NXPI's intrinsic value based on DCF?
According to the DCF analysis, the earnings-based intrinsic value is $420.83, while the FCF-based intrinsic value is $141.52.
Is NXPI overvalued or undervalued?
Based on the DCF earnings model, NXPI is modestly undervalued, while the DCF FCF model and GF Value™ suggest it is overvalued.
How reliable is the DCF model for NXPI?
The DCF model's reliability for NXPI is limited, as indicated by its predictability rank of 0/5 stars.
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].
EINDHOVEN, The Netherlands, June 11, 2026 (GLOBE NEWSWIRE) -- As part of its ongoing capital return program, NXP Semiconductors N.V. (NASDAQ: NXPI) today announced that its board of directors has approved the payment of an interim dividend. The actions are based on the continued and significant strength of the NXP capital structure, and the board’s confidence in the company’s ability to drive long-term growth and strong cash flow.
The board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the second quarter of 2026. The interim dividend will be paid in cash on July 9, 2026, to shareholders of record as of June 24, 2026.
Taxation – Cash Dividends
Cash dividends will be subject to the deduction of Dutch dividend withholding tax at the rate of 15 percent, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. If you are uncertain as to the tax treatment of any dividends, consult your tax advisor.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at www.nxp.com.
Forward-looking Statements
This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; global trade disputes, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.
Cwm LLC increased its stake in shares of PENN Entertainment, Inc. (NASDAQ:PENN – Free Report) by 1,055.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 92,056 shares of the company’s stock after buying an additional 84,092 shares during the quarter. Cwm LLC owned about 0.07% of PENN Entertainment worth $1,358,000 at the end of the most recent quarter.
A number of other hedge funds also recently added to or reduced their stakes in the stock. Hill Path Capital LP boosted its stake in PENN Entertainment by 64.4% during the 3rd quarter. Hill Path Capital LP now owns 5,759,820 shares of the company’s stock valued at $110,934,000 after purchasing an additional 2,257,000 shares during the period. Hennessy Advisors Inc. acquired a new stake in shares of PENN Entertainment in the third quarter valued at approximately $40,537,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of PENN Entertainment by 74.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,930,293 shares of the company’s stock valued at $75,697,000 after buying an additional 1,679,953 shares during the last quarter. Amundi raised its holdings in shares of PENN Entertainment by 3,058.9% during the third quarter. Amundi now owns 781,949 shares of the company’s stock valued at $14,458,000 after buying an additional 757,195 shares during the last quarter. Finally, Armistice Capital LLC boosted its position in shares of PENN Entertainment by 48.8% during the third quarter. Armistice Capital LLC now owns 2,103,666 shares of the company’s stock worth $40,517,000 after buying an additional 690,078 shares during the period. 91.69% of the stock is currently owned by institutional investors.
Key Stories Impacting PENN Entertainment Here are the key news stories impacting PENN Entertainment this week:
Positive Sentiment: Mizuho raised its price target to $23 and maintained an “outperform” call, implying ~33% upside from current levels. Article Title TickerReport Positive Sentiment: JPMorgan bumped its target to $23 and moved to “overweight” — another institutional vote of confidence that can support upside momentum. Article Title Positive Sentiment: Stifel raised its target to $23 and kept a “buy” rating, joining other brokers in signaling meaningful upside. Article Title The Fly Positive Sentiment: PENN reported a Q1 beat (EPS $0.11 vs. $0.05 est.; revenue $1.78B vs. $1.74B), with Interactive losses narrowing sharply and retail trends aided by the M Resort tower opening — evidence of operational improvement. Press Release Yahoo Neutral Sentiment: Deutsche Bank nudged its target to $18 and kept a “hold” rating — a less bullish view that tempers the unanimous upgrade narrative. MarketScreener Neutral Sentiment: Management reiterated an improving Interactive outlook (2026 interactive adjusted EBITDA loss guided to ~$20M) and highlighted retail strength from Alberta and property openings — supports the recovery thesis but is conditional on execution. Seeking Alpha Negative Sentiment: Analyst caution and a bearish Seeking Alpha piece emphasize elevated leverage, a regional asset base they consider lower quality, and a valuation premium versus peers — risks that could cap the multiple until leverage meaningfully improves. Seeking Alpha Negative Sentiment: Financial metrics remain a concern: negative net margin and return on equity plus a high debt-to-equity ratio keep balance-sheet risk top of mind for investors despite operational gains (see company metrics). MarketBeat Analysts Set New Price Targets A number of brokerages recently issued reports on PENN. Mizuho increased their price objective on PENN Entertainment from $22.00 to $23.00 and gave the stock an “outperform” rating in a report on Friday. Weiss Ratings reiterated a “sell (d-)” rating on shares of PENN Entertainment in a research report on Friday, March 27th. JPMorgan Chase & Co. increased their price target on PENN Entertainment from $22.00 to $23.00 and gave the stock an “overweight” rating in a research note on Friday. Benchmark raised PENN Entertainment from a “hold” rating to a “buy” rating and set a $21.00 price target on the stock in a report on Thursday, March 5th. Finally, Barclays lifted their price objective on shares of PENN Entertainment from $23.00 to $24.00 and gave the company an “overweight” rating in a research note on Friday. Eight analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $20.21.
Get Our Latest Stock Analysis on PENN
PENN Entertainment Price Performance NASDAQ PENN opened at $17.24 on Monday. PENN Entertainment, Inc. has a 12 month low of $11.65 and a 12 month high of $20.60. The firm has a market capitalization of $2.30 billion, a PE ratio of -2.57, a P/E/G ratio of 0.58 and a beta of 1.32. The company’s 50 day simple moving average is $14.59 and its 200 day simple moving average is $14.69. The company has a debt-to-equity ratio of 3.92, a current ratio of 0.79 and a quick ratio of 0.79.
PENN Entertainment (NASDAQ:PENN – Get Free Report) last released its earnings results on Thursday, April 23rd. The company reported $0.11 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.06. The firm had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.74 billion. PENN Entertainment had a positive return on equity of 0.42% and a negative net margin of 13.55%.The firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.68 earnings per share. As a group, equities research analysts forecast that PENN Entertainment, Inc. will post 0.98 EPS for the current fiscal year.
PENN Entertainment Company Profile (Free Report)
PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.
The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.
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NEW YORK--(BUSINESS WIRE)--UNITE HERE urges shareholders to vote FOR the proposal to declassify the Board of Directors at PENN Entertainment, Inc. (“PENN”) and transition to annual elections for all directors at the AGM on June 16, 2026.
PENN (NASDAQ: PENN) shareholders already supported declassification in 2010, yet the Board has not implemented that outcome. In the years since, governance standards have moved in greater favor of annual elections as investor expectations have become clearer. In 2025, declassification proposals were reported to have seen average shareholder support of 77.9%, resulting in a passage rate of 86% across 14 proposals. (Goldberg, Mencher & Flynn, Cooley LLP, Harvard Law School Forum on Corporate Governance, July 22, 2025.) Today, maintaining a classified structure places PENN increasingly out of step with shareholder preference.
Annual elections would:
Support long-term value creation by reinforcing confidence in Board oversight Enhance accountability and responsiveness during a period of disruption in the traditional gaming industry created by prediction markets, the growth of internet gaming, and grey market activities such as skill-based games and sweepstakes gambling Reduce entrenchment risk and align PENN with governance norms embraced by leading industry peers Importantly, the proposal is precatory. The Board retains full discretion to determine whether to declassify, and if it does so, to proceed in a manner that is consistent with the law and all applicable gaming regulatory requirements.
The Company’s Opposition—and Why It Falls Short
The Board has recommended against the proposal. We address their reasons cited below.
1. The Company’s Arguments Regarding Gaming Regulations Are Contradicted by the Practices of Gaming Peer Companies with Annual Elections
Ability to Attract Directors
PENN argues that operating in the highly regulated gaming industry under licensing requirements that require “extensive regulatory review and licensing of directors” can “hinder [its] ability to attract talented director candidates.” PENN notes these requirements are “unique to the gaming industry.” But despite these concerns, MGM Resorts International, Caesars Entertainment, Boyd Gaming, Golden Entertainment, and Full House Resorts all maintain annual elections, and all operate in the highly regulated gaming industry. Like PENN, each of the five companies operates under Nevada gaming regulations, which require:
“Each officer, director and employee of a publicly traded corporation who the Commission determines is or is to become actively and directly engaged in the administration or supervision of, or any other significant involvement with, the gaming activities of the corporation or any of its affiliated or intermediary companies must be found suitable therefor and may be required to be licensed by the Commission.” (See: Nevada NRS 463.637, “Commission” refers to the Nevada Gaming Commission.)
PENN does not explain why it would face more difficulty attracting director candidates than gaming industry peers that maintain annual elections.
Large Regional Footprint
PENN states that it has the “largest regional footprint in the industry.” PENN reported as of year-end 2025 that it “owned, managed, or had ownership interests in 42 gaming and racing properties in 19 states” and that it “operates in 28 jurisdictions throughout North America” (PENN Entertainment, 10-K for 2025). But Caesars Entertainment maintains annual elections and reported a regional footprint of comparable size. Caesars reported as of year-end 2025 that “we own, lease or manage an aggregate of 52 domestic properties in 18 states” and “we also operate and conduct sports wagering across 34 jurisdictions in North America, 27 of which offer online sports betting, and operate iGaming in five jurisdictions in North America” (Caesars Entertainment, 10-K for 2025).
PENN does not explain why its regional footprint would be more of a hindrance to holding annual elections than Caesars’ regional footprint.
Licensure Requirement Before Performance of Duties
PENN argues “more significantly, certain of our jurisdictions, each of which is important to our operations, require directors to obtain licensure before they are permitted to vote on Board matters.” PENN does not name which jurisdictions. MGM Resorts International maintains annual elections and, like PENN, operates under Michigan gaming regulations, which explicitly require director licensure prior to performing duties or exercising powers related to Michigan operations. Michigan requires:
“A proposed new director, partner, officer, or key person required to be qualified or licensed under the act or these rules by virtue of his or her position with a holding company or affiliate that has control of a Michigan casino license applicant or licensee shall not perform any duties or exercise any powers of the position related to Michigan operations until he or she has been determined to be qualified or licensed, or both, or otherwise authorized by the board, under the act and these rules.” (See: Michigan Admin. Code Rule 432.1318)
PENN does not explain why its situation is different than, for example, MGM maintaining annual elections while operating under Michigan regulations.
2. Stability and Long-Term Focus Do Not Require a Classified Board
The Board argues that a classified structure supports long-term strategic decision-making and continuity.
However, the widespread adoption of annual elections across large-cap companies, including in capital-intensive, highly regulated industries, demonstrates that annual elections and long-term thinking are not mutually exclusive. Directors elected annually are still experienced, accountable, and fully capable of overseeing multi-year strategic initiatives. Indeed, annual elections enhance long-term value by ensuring that directors remain continuously accountable for execution.
3. Board Refreshment and Shareholder Engagement Are Not Substitutes for Voting Rights
The Company points to its shareholder engagement program as evidence of responsiveness. The Company also highlights that six of eleven directors have joined within the past four years.
While engagement is important and refreshment is positive, they are not substitutes for shareholder rights. Shareholders’ ability to vote annually on directors is a direct implementation of the shareholder franchise, and helps ensure that refreshment is aligned with shareholders’ priorities.
Conclusion
The proposal to declassify the Board is simple, beneficial for shareholders, and consistent with the practices of gaming industry peers that maintain annual elections and operate in the highly regulated gaming industry. After more than a decade since shareholders first supported declassification, it is time to align PENN’s governance with modern standards of accountability.
We urge you to vote FOR this proposal.
This is not a solicitation of authority to vote your proxy. Please do not send us your proxy card, as it will not be accepted.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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Should You Consider Under Armour?The final step today is to look at a stock that meets our ESP qualifications. Under Armour (UAA - Free Report) earns a #3 (Hold) one day from its next quarterly earnings release on May 12, 2026, and its Most Accurate Estimate comes in at -$0.02 a share.
By taking the percentage difference between the -$0.02 Most Accurate Estimate and the -$0.03 Zacks Consensus Estimate, Under Armour has an Earnings ESP of +25.00%. Investors should also know that UAA is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UAA is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. PENN Entertainment (PENN - Free Report) is another qualifying stock you may want to consider.
PENN Entertainment is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 6, 2026. PENN's Most Accurate Estimate sits at $0.33 a share 87 days from its next earnings release.
The Zacks Consensus Estimate for PENN Entertainment is $0.32, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.48%.
UAA and PENN's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: PENN Entertainment (PENN - Free Report) PENN Entertainment, Inc. was incorporated in Pennsylvania in 1982 as PNRC Corp. The company adopted its current name in 1994 when it became publicly traded. PENN Entertainment is a multi-jurisdictional owner and operator of gaming and racing facilities with video gaming terminal operations and a focus on slot machine entertainment. The company’s portfolio is geographically diverse and includes a broad set of regional properties.
PENN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. PENN has a Momentum Style Score of B, and shares are up 0.6% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $1.09 per share. PENN boasts an average earnings surprise of +120.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PENN should be on investors' short list.
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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: PENN Entertainment (PENN - Free Report) PENN Entertainment, Inc. was incorporated in Pennsylvania in 1982 as PNRC Corp. The company adopted its current name in 1994 when it became publicly traded. PENN Entertainment is a multi-jurisdictional owner and operator of gaming and racing facilities with video gaming terminal operations and a focus on slot machine entertainment. The company’s portfolio is geographically diverse and includes a broad set of regional properties.
PENN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.59; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $1.09 per share. PENN boasts an average earnings surprise of +120.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PENN should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: PENN Entertainment (PENN - Free Report) PENN Entertainment, Inc. was incorporated in Pennsylvania in 1982 as PNRC Corp. The company adopted its current name in 1994 when it became publicly traded. PENN Entertainment is a multi-jurisdictional owner and operator of gaming and racing facilities with video gaming terminal operations and a focus on slot machine entertainment. The company’s portfolio is geographically diverse and includes a broad set of regional properties.
PENN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. PENN has a Growth Style Score of A, forecasting year-over-year earnings growth of 118.7% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $1.09 per share. PENN also boasts an average earnings surprise of +120.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PENN should be on investors' short list.
On May 21, 2026, PENN Entertainment Inc PENN shares rose 3.3% to a current price of $16.70. This recent move is part of a broader trend, with the stock showing a 52-week range of $11.65 to $20.61.
GF Value™ verdict: PENN is currently valued at $16.70, which is 27.5% below its GF Value™ estimate of $23.02.GF Score™ of 75/100 indicates an above-average rating, suggesting a strong potential for long-term returns.Insiders have purchased $0.1M in shares over the last three months, signaling confidence in the company’s future. Is PENN Overvalued or Undervalued? PENN Entertainment Inc is identified as modestly undervalued based on its current price of $16.70 compared to the GF Value™ estimate of $23.02. This presents a 27.5% margin of safety for potential investors. The GF Valuation label indicates that while the stock is undervalued, there are caveats to consider. Although the current price suggests a buying opportunity, factors such as financial strength and the predictability of future earnings should be assessed further. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors should note that despite the undervaluation, the financial strength score of 3/10 suggests vulnerabilities that could affect the stock's performance in the short term. Therefore, while the undervaluation presents an opportunity, it is essential to consider these risks before making investment decisions.
How Does PENN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.7x 21.2x Currently, PENN's forward P/E ratio is 14.7x, which is significantly below its 5-year median P/E of 21.2x. This indicates that the stock is trading at a lower valuation compared to its historical averages, reinforcing the GF Value™ conclusion of being undervalued. The P/E analysis agrees with the GF Value™ verdict, suggesting that there may be an opportunity for price appreciation moving forward.
What Does PENN's GF Score™ Tell Us? Metric Rating GF Score™ 75 Financial Strength 3/10 Profitability 6/10 Growth 6/10 Valuation 8/10 Momentum 7/10 PENN's overall GF Score™ of 75/100 indicates a solid potential for long-term returns, with the strongest performance noted in the Valuation category, rated 8/10. However, the Financial Strength score of 3/10 highlights a significant area of concern, suggesting that while the stock may be undervalued, its financial stability could pose risks. The Profitability and Growth scores at 6/10 are moderate, indicating a reasonable ability to generate profits and grow, but there is still room for improvement.
What Are Insiders Doing with PENN Stock? In the past three months, insiders of PENN Entertainment Inc have purchased approximately $0.1 million worth of shares, with no reported selling activity. This buying trend may suggest that insiders have confidence in the company's future performance and potential growth prospects. Such insider purchasing can often be interpreted as a positive signal, indicating that those with the most knowledge of the company expect favorable developments ahead.
What This Means for Investors Based on the current analysis, PENN Entertainment Inc is considered undervalued according to GF Value™, presenting a potential opportunity for value-oriented investors. However, it is crucial to keep in mind the company’s financial strength and associated risks.
For the complete analysis, visit the PENN Entertainment Inc PENN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is PENN's GF Score™?
PENN's GF Score™ is 75/100, indicating an above-average potential for long-term returns based on key financial metrics.
Is PENN overvalued or undervalued?
PENN is currently considered undervalued, with a GF Value™ estimate of $23.02 compared to its current price of $16.70.
What is PENN's P/E ratio?
PENN's forward P/E ratio is 14.7x, which is below its 5-year median P/E of 21.2x, suggesting that the stock is trading at a lower valuation compared to its historical averages.
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].
What happenedAccording to a SEC filing dated May 15, 2026, Palidye Holdings (Caymans) Ltd reported a new position in PENN Entertainment (PENN +2.22%), acquiring 1,400,000 shares over the first quarter. The position’s quarter-end market value reached $21.04 million. The stake represents 3.9% of the fund’s 13F assets under management.
What else to knowThis is a new position for Palidye, representing 3.9% of 13F AUM as of March 31, 2026
Top holdings after the filing:
NASDAQ:NVDA: $257.89 million (47.8% of AUM)NASDAQ:META: $123.17 million (22.9% of AUM)NASDAQ:MSFT: $114.19 million (21.2% of AUM)NASDAQ:DDOG: $3.95 million (0.7% of AUM)NYSE:XYZ: $2.93 million (0.5% of AUM)As of May 14, 2026, shares were priced at $15.83, down 2.2% over the past year.
Company OverviewMetricValueRevenue (TTM)$7.07 billionNet Income (TTM)$-957.20 millionMarket Capitalization$2.58 billionPrice (as of market close 2026-05-14)$15.83Company SnapshotPENN Entertainment, Inc. is a leading North American gaming and entertainment company with a multi-channel approach spanning land-based casinos and digital wagering platforms. Its scale and geographic reach position it as a significant competitor in the evolving gaming and interactive entertainment industry.
The company offers integrated entertainment, casino gaming, online sports betting, and iCasino services across North America under brands such as Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet.
PENN Entertainment, Inc. targets a broad customer base including in-person casino patrons, online sports bettors, and iCasino users in regulated North American markets.It operates a diversified business model with 44 physical properties in 20 states and digital platforms in multiple jurisdictions, generating revenue through gaming, hospitality, and interactive wagering.
What this transaction means for investorsPENN Entertainment operates primarily as a regional casino company, with its digital wagering business now focused on iCasino and theScore Bet. The casino portfolio remains the core economic driver, while Interactive represents the key swing factor following the conclusion of the ESPN BET partnership. The central investment question is whether PENN can make its lower-cost digital strategy profitable without straining its existing casino cash flow.
PENN’s latest results showed the casino business still doing the heavy lifting while digital losses narrowed. Retail segment adjusted EBITDAR was $471.4 million, while Interactive posted an adjusted EBITDA loss of $10.8 million. That was a sharp improvement from a year earlier, helped by the realigned digital strategy and iCasino growth, but the segment remained negative. The quarter reinforced that PENN’s digital reset is improving, not finished.
For investors, PENN’s value depends on how well it manages cash between casinos, leases, development, paying down debt, and digital investments. iCasino and theScore Bet are simpler than the old ESPN BET setup, but the casino business still needs to keep providing financial flexibility. The strongest signal for PENN Entertainment investors moving forward would be steady casino cash flow, smaller losses in Interactive, and more visible free cash flow after covering necessary expenses.
Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Block, Datadog, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: PENN Entertainment (PENN - Free Report) PENN Entertainment, Inc. was incorporated in Pennsylvania in 1982 as PNRC Corp. The company adopted its current name in 1994 when it became publicly traded. PENN Entertainment is a multi-jurisdictional owner and operator of gaming and racing facilities with video gaming terminal operations and a focus on slot machine entertainment. The company’s portfolio is geographically diverse and includes a broad set of regional properties.
PENN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 17.35; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $1.09 per share. PENN boasts an average earnings surprise of +120.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PENN should be on investors' short list.
New land-based Entertainment Destination Includes Premier Hotel, Spa, Event Center and World-Class Dining Experiences
WYOMISSING, Pa. & AURORA, Ill.--(BUSINESS WIRE)--PENN Entertainment, Inc. (Nasdaq: PENN) (“PENN” or the “Company”) announced today the expected closure of the Hollywood Casino Aurora riverboat property at 5:59am CDT on Wednesday, June 10, in preparation for the grand opening of the all-new, $360 million land-based property set to open on June 24, 2026, pending customary regulatory approvals.
“We are less than a month away from welcoming our loyal customers and guests to the new state-of-the-art Hollywood Casino Aurora,” said Jay Snowden, CEO and President of PENN Entertainment. “Our Aurora riverboat has created thousands of memorable experiences and supported economic development throughout the city for over three decades, and we look forward to replicating these successes for years to come.”
The new Hollywood Casino Aurora is being developed at 2500 N. Farnsworth Ave. adjacent to the Chicago Premium Outlets near Interstate 80 in Aurora. The facility will feature approximately 1,200 gaming positions, including high-limit slots and table games, a baccarat room and sportsbook. The property also includes a premium hotel with 226 rooms and suites, outdoor entertainment area, full-service spa, high-quality bars and restaurants including Sorella by Giada and Boulevard Food & Drink Hall, an approximately 12,000-square-foot event center with meeting areas and roughly 1,700 parking spaces.
All gaming operations at the riverboat property will maintain their normal operating hours until closing at 5:59am CDT on June 10. The hotel began accepting reservations in May.
“Our new location is ideally situated to welcome guests to enjoy a broad array of entertainment and dining experiences in the region,” said Rafael Verde, Senior Vice President of Operations for PENN Entertainment. “In the meantime, we invite our customers to visit our nearby locations, including the new Hollywood Casino Joliet and Ameristar East Chicago.”
Nearby Hollywood Casino Joliet, which opened in 2025, and Ameristar East Chicago, just over the state line in Indiana, are part of the same PENN Play customer rewards program as Hollywood Casino Aurora. Any unused chips from the Hollywood Casino Aurora riverboat location can be cashed in at the new Hollywood Casino Aurora cage until the end of the year on Dec. 31, 2026.
Hollywood Casino Aurora expects to launch its new website on June 10 to provide information on restaurant hours, menus and reservation systems.
About PENN Entertainment, Inc.
PENN Entertainment, Inc., together with its subsidiaries (“PENN,” or the “Company,” “we,” “our,” or “us”), operates in 27 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks, and online sports betting and iCasino offerings. PENN’s focus is on organic cross-sell opportunities, reinforced by its market-leading retail casinos, sports media assets and technology, including a proprietary state-of-the-art, fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. The Company’s portfolio is further bolstered by its industry-leading PENN Play™ customer loyalty program, offering its approximately 34 million members a unique set of rewards and experiences.
Forward Looking Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” “look forward to,” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results, or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks, uncertainties and other factors, including those factors described in PENN Entertainment’s filings with the Securities and Exchange Commission (the “SEC”), including PENN Entertainment's current reports on Form 8-K, quarterly reports on Form 10-Q and its annual report on Form 10-K for the year ended December 31, 2025. Forward-looking statements speak only as of the date they are made and, except for PENN Entertainment’s ongoing obligations under the U.S. federal securities laws, PENN Entertainment undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
Ahead of New Land-Based Casino Grand Opening on June 24th, PENN Entertainment to Close Hollywood Casino Aurora Riverboat on June 10th PENN Entertainment, Inc. (Nasdaq: PENN) (“PENN” or the “Company”) announced today the expected closure of the Hollywood Casino Aurora riverboat property at 5:59am CDT on Wednesday, June 10, in preparation for the grand opening of the all-new, $360 million land-based property set to open on June 24, 2026, pending customary regulatory approvals.
“We are less than a month away from welcoming our loyal customers and guests to the new state-of-the-art Hollywood Casino Aurora,” said Jay Snowden, CEO and President of PENN Entertainment. “Our Aurora riverboat has created thousands of memorable experiences and supported economic development throughout the city for over three decades, and we look forward to replicating these successes for years to come.”
The new Hollywood Casino Aurora is being developed at 2500 N. Farnsworth Ave. adjacent to the Chicago Premium Outlets near Interstate 80 in Aurora. The facility will feature approximately 1,200 gaming positions, including high-limit slots and table games, a baccarat room and sportsbook. The property also includes a premium hotel with 226 rooms and suites, outdoor entertainment area, full-service spa, high-quality bars and restaurants including Sorella by Giada and Boulevard Food & Drink Hall, an approximately 12,000-square-foot event center with meeting areas and roughly 1,700 parking spaces.
All gaming operations at the riverboat property will maintain their normal operating hours until closing at 5:59am CDT on June 10. The hotel began accepting reservations in May.
“Our new location is ideally situated to welcome guests to enjoy a broad array of entertainment and dining experiences in the region,” said Rafael Verde, Senior Vice President of Operations for PENN Entertainment. “In the meantime, we invite our customers to visit our nearby locations, including the new Hollywood Casino Joliet and Ameristar East Chicago.”
Nearby Hollywood Casino Joliet, which opened in 2025, and Ameristar East Chicago, just over the state line in Indiana, are part of the same PENN Play customer rewards program as Hollywood Casino Aurora. Any unused chips from the Hollywood Casino Aurora riverboat location can be cashed in at the new Hollywood Casino Aurora cage until the end of the year on Dec. 31, 2026.
Hollywood Casino Aurora expects to launch its new website on June 10 to provide information on restaurant hours, menus and reservation systems.
About PENN Entertainment, Inc.
PENN Entertainment, Inc., together with its subsidiaries (“PENN,” or the “Company,” “we,” “our,” or “us”), operates in 27 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks, and online sports betting and iCasino offerings. PENN’s focus is on organic cross-sell opportunities, reinforced by its market-leading retail casinos, sports media assets and technology, including a proprietary state-of-the-art, fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. The Company’s portfolio is further bolstered by its industry-leading PENN Play™ customer loyalty program, offering its approximately 34 million members a unique set of rewards and experiences.
Forward Looking Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” “look forward to,” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results, or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks, uncertainties and other factors, including those factors described in PENN Entertainment’s filings with the Securities and Exchange Commission (the “SEC”), including PENN Entertainment's current reports on Form 8-K, quarterly reports on Form 10-Q and its annual report on Form 10-K for the year ended December 31, 2025. Forward-looking statements speak only as of the date they are made and, except for PENN Entertainment’s ongoing obligations under the U.S. federal securities laws, PENN Entertainment undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260602541122/en/
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: PENN Entertainment (PENN - Free Report) PENN Entertainment, Inc. was incorporated in Pennsylvania in 1982 as PNRC Corp. The company adopted its current name in 1994 when it became publicly traded. PENN Entertainment is a multi-jurisdictional owner and operator of gaming and racing facilities with video gaming terminal operations and a focus on slot machine entertainment. The company’s portfolio is geographically diverse and includes a broad set of regional properties.
PENN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. PENN has a Growth Style Score of A, forecasting year-over-year earnings growth of 118.7% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $1.09 per share. PENN boasts an average earnings surprise of +120.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PENN should be on investors' short list.
UNITE HERE Welcomes Support from Leading Proxy Advisors Ahead of PENN’s June 16 Annual Meeting
NEW YORK--(BUSINESS WIRE)--UNITE HERE today announced that Institutional Shareholder Services (“ISS”) and Glass Lewis & Co. (“Glass Lewis”) have both recommended that PENN Entertainment, Inc. (NASDAQ: PENN) shareholders vote FOR the shareholder proposal to declassify the Company’s Board of Directors ahead of PENN’s June 16, 2026 Annual Meeting of Shareholders.
The recommendations delivered by these two major proxy advisory firms represent significant independent support for enhancing shareholder rights and board accountability at PENN.
“We are pleased that ISS and Glass Lewis have both concluded that shareholders should support annual elections for all PENN directors,” said UNITE HERE Director of Gaming Industry Research, Michael Hachey. “These recommendations reinforce what shareholders have communicated for years: that annual director elections enhance board accountability and are a fundamental governance best practice.”
PENN shareholders previously supported board declassification in 2010, yet the Board has not implemented that outcome. Today, annual director elections are widely recognized as a governance best practice among public companies and institutional investors. According to data cited in UNITE HERE’s shareholder communications, declassification proposals in 2025 received average shareholder support of 77.9% and passed at an 86% rate.
The shareholder proposal is non-binding, and it does not call for immediate implementation. Rather, it requests that the Board take the steps necessary to declassify the Board in a manner consistent with applicable law and gaming regulatory requirements.
In its communications to shareholders, UNITE HERE has noted that many leading gaming companies—including MGM Resorts International, Caesars Entertainment, and Boyd Gaming—already maintain annual director elections despite operating in the highly regulated gaming industry environment cited by PENN in opposition to the proposal.
UNITE HERE believes annual elections would:
Support long-term value creation by reinforcing confidence in Board oversight; Enhance accountability and responsiveness during a period of significant change in the gaming industry; Reduce entrenchment risk and better align PENN with prevailing governance standards and shareholder expectations. With less than two weeks remaining before PENN’s June 16, 2026 Annual Meeting, UNITE HERE urges PENN shareholders to cast their vote FOR the proposal to declassify the Board.
YOUR VOTE IS IMPORTANT
This is not a solicitation of authority to vote your proxy. Please do not send us your proxy card, as it will not be accepted.
Vornado Completes 125,000 SF of Leases with Leading Technology Companies Veeva and Altana at its Reimagined PENN District Office Tower June 09, 2026 08:30 ET | Source: Vornado Realty Trust
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) today announced that PENN 2, its reimagined office tower in the heart of THE PENN DISTRICT campus, is now 90 percent leased after completing full-floor leases with both Altana AI and Veeva.
Veeva will occupy 62,223 square feet across PENN 2’s entire 11th floor under a 12-year lease. Veeva, a leading provider of cloud software, AI, data and consulting services tailored for the global life science community, helps companies develop and bring products to the market more efficiently.
In a 10-year, 62,309 square foot lease agreement, Altana will establish its new headquarters on the entire 21st floor of the 31-story tower. Altana's AI-powered trusted trade network connects the world's largest logistics providers, businesses, and their suppliers with government agencies like U.S. Customs and Border Protection — all around a shared source of product information. Businesses connect to Altana to automate trade compliance, navigate tariff complexity, and build supply chain resilience. Government agencies connect to Altana to design and enforce trade and economic security policies.
“We didn’t merely renovate PENN 2 – we completely reinvented it, transforming a once legacy office tower into a world-class work environment atop the most connected transportation hub in the Western Hemisphere,” said Glen Weiss, Executive Vice President - Office Leasing and Co-Head of Real Estate for Vornado Realty Trust. “The most impressive aspect is the fact that PENN 2 has become the headquarters for so many iconic blue-chip companies, including Madison Square Garden Entertainment, Universal Music Group, Major League Soccer, Verizon and Dick’s Sporting Goods. We are pleased to welcome Altana and Veeva to PENN 2’s best in class tenant roster.”
"New York City has been a key Veeva hub for tech and consulting talent,” said Sarah Caldwell, New York City site leader and CEO of Veeva Crossix. “We’re excited that the new space will support more employee and customer connection and provide both a productive and collaborative environment."
Altana CEO and Co-Founder Evan Smith said, “Our mission is to fix globalization. PENN 2 sits at the center of one of the most connected hubs in the world — it's exactly the kind of place where that work should happen.”
Vornado completely transformed PENN 2 by creating a modern and highly efficient curtain wall, a striking triple-height lobby and 16 distinctive double-height outdoor tenant loggias. The building features 72,000 square feet of outdoor green spaces; The Perch, a rooftop glass pavilion and event space that opens onto a lushly landscaped 17,000 square foot private green space available to all tenants; and a 280-seat Town Hall suspended above a sprawling pedestrian plaza on 33rd Street. The new PENN 2 also encompasses 30,000 square feet of curated retail, including The Dynamo Room, a 7,100 square foot full-service restaurant and bar by Sunday Hospitality.
Together with its neighboring PENN 1, the towers create a two-building connected campus in the heart of THE PENN DISTRICT. The twin projects encompass 4.4 million square feet of premium office space; a host of new and improved entrances to Penn Station and the surrounding subway system; and acres of new public plazas, landscaping, and granite stone-paved sidewalks.
All PENN DISTRICT tenants have access to 180,000 square feet of Vornado’s WorkLife program, the most extensive and comprehensive amenity package in the City, highlighted by The Landing, a full-service restaurant, bar and private dining rooms; a 53,000 square foot sports, wellness and fitness center; and 100,000 square feet of flexible workspace and conference facilities.
THE PENN DISTRICT campus is situated directly above Penn Station, North America’s most accessible and active mass transit hub. A total of 15 subway lines, along with Long Island Rail Road, New Jersey Transit, PATH and Amtrak all converge in the district. They will be joined by Metro-North commuters starting in 2027.
Additional information on PENN 2 and images can be found at https://www.vnopenn2.com/.
About Vornado Realty Trust
Vornado is a fully integrated real estate investment trust (“REIT”) with a portfolio of premier New York City office and retail assets and the developer of the new PENN DISTRICT. While concentrated in New York, Vornado also owns premier assets in both Chicago and San Francisco. Vornado is a real estate industry leader in sustainability, with 100% of our in-service offices buildings LEED certified and over 95% certified LEED Gold or Platinum.
C O N T A C T
Thomas J. Sanelli
(212) 894-7000
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2025. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Carnival?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Carnival (CCL - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.36 a share 13 days away from its upcoming earnings release on June 23, 2026.
Carnival's Earnings ESP sits at +5.88%, which, as explained above, is calculated by taking the percentage difference between the $0.36 Most Accurate Estimate and the Zacks Consensus Estimate of $0.34. CCL is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CCL is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. PENN Entertainment (PENN - Free Report) is another qualifying stock you may want to consider.
PENN Entertainment, which is readying to report earnings on August 6, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.37 a share, and PENN is 57 days out from its next earnings report.
For PENN Entertainment, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.33 is +13.63%.
Because both stocks hold a positive Earnings ESP, CCL and PENN could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Stock to Watch: PENN Entertainment (PENN - Free Report) PENN Entertainment, Inc. was incorporated in Pennsylvania in 1982 as PNRC Corp. The company adopted its current name in 1994 when it became publicly traded. PENN Entertainment is a multi-jurisdictional owner and operator of gaming and racing facilities with video gaming terminal operations and a focus on slot machine entertainment. The company’s portfolio is geographically diverse and includes a broad set of regional properties.
PENN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. PENN has a Momentum Style Score of A, and shares are up 29.3% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $1.09 per share. PENN boasts an average earnings surprise of +120.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PENN should be on investors' short list.
Key Takeaways VNO's PENN 2 reached 90% leased after signing full-floor leases with Veeva and Altana.Veeva leased the entire 11th floor, spanning 62,223 sq. ft., under a 12-year agreement.Altana leased the full 21st floor for 62,309 sq. ft. and will establish its new headquarters. Vornado Realty Trust (VNO - Free Report) announced that PENN 2 is now 90% leased following the execution of two full-floor leases with Veeva and Altana AI. The leasing activity marks another milestone in the repositioning of PENN 2, which has transformed into a reimagined 31-story office tower in the heart of THE PENN DISTRICT campus.
Veeva signed a 12-year lease for 62,223 square feet across PENN 2’s entire 11th floor. As a leading provider of cloud software, AI, data and consulting services for the global life science industry, Veeva’s commitment highlights the PENN 2’s appeal to high-quality, technology and innovation-focused tenants.
Altana will establish its new headquarters on the entire 21st floor under a 10-year lease covering 62,309 square feet. The company operates an AI-powered trusted trade network that connects global logistics providers, businesses and their suppliers with government agencies.
Vornado transformed PENN 2 through a comprehensive redevelopment that introduced a modern curtain wall, a triple-height lobby and 16 distinctive double-height outdoor tenant loggias. The building features 72,000 sq. ft. of outdoor green space, including The Perch, a rooftop glass pavilion that opens onto a 17,000 sq. ft. private landscaped space for tenants, and a 280-seat Town Hall suspended above a pedestrian plaza on 33rd Street. The building also includes 30,000 sq. ft. of curated retail, highlighted by The Dynamo Room, a 7,100 sq. ft. full-service restaurant and bar by Sunday Hospitality.
Together with its neighboring PENN 1, the towers form a two-building campus in the heart of THE PENN DISTRICT. The campus is located directly above Penn Station, North America’s most accessible and active mass transit hub. The twin projects encompass 4.4 million square feet of premium office space, new and improved entrances to Penn Station and the surrounding subway system, and acres of public plazas, landscaping and granite stone-paved sidewalks. Tenants across the PENN DISTRICT also benefit from 180,000 square feet of Vornado’s WorkLife program, one of the city’s most comprehensive workplace amenity offerings.
ConclusionThe new leases with Veeva and Altana underscore Vornado's strategy of attracting high-quality tenants and improving occupancy at its flagship PENN DISTRICT assets. PENN 2’s reaching 90% leased occupancy reflects continued demand for well-located, amenity-rich office space following the property's extensive redevelopment.
In the past three months, shares of this Zacks Rank #2 (Buy) company have gained 45.8% compared with the industry's 3.7% growth.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and American Tower (AMT - Free Report) , each carrying a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CUZ’s 2026 FFO per share is pegged at $2.93, which indicates year-over-year growth of 3.17%.
The Zacks Consensus Estimate for AMT’s full-year FFO per share is pinned at $10.95, which suggests an increase of 1.77% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
WYOMISSING, Pa. & COLUMBUS, Ohio--(BUSINESS WIRE)--PENN Entertainment, Inc. (Nasdaq: PENN) (“PENN” or the “Company”) is pleased to announce the new hotel tower at Hollywood Casino Columbus (“Hollywood Columbus”) has officially opened.
The Hill Link: https://www.dropbox.com/scl/fo/god9dunryhsn0dqs6ldv9/AG6nZ7-fUStYUS7gpRtOLqM/Hollywood%20Casino%20%7C%20Columbus/HollywoodCasino_Columbus_0008_.jpg?rlkey=yi85br1qrm3t25qj4h20i3i9b&st=cienxr67&dl=0
The $100 million, 203-room hotel provides guests with upscale accommodations at the premier gaming, dining, and entertainment experience in Columbus. The 150,000 square-foot tower features 183 standard rooms and 20 luxury suites, a full-service bar and restaurant - The Hill Eatery & Lounge, conference rooms, fitness center and an outdoor seating terrace. In addition to the hotel, Hollywood Casino Columbus will also introduce an expanded high limit table games room and speakeasy bar in the third quarter of 2026, pending customary regulatory approvals. PENN estimates the overall expansion will add 150 new jobs at the property.
Hollywood Columbus hosted a grand opening ceremony yesterday afternoon with special guests and dignitaries. Today’s festivities include a processional led by The Ohio State University Alumni Band, a Bret Michaels concert, fireworks show, and a chance to win a 2026 Indian Motorcycle. Tickets can be purchased at Ticketmaster.com and doors open at 6:00PM EST.
“We’re delighted to officially open our new hotel in Columbus, which further positions us as the top entertainment destination in the region,” said Jay Snowden, CEO & President of PENN Entertainment. “This opening marks our third of four retail development projects to open in under a year, and we expect to follow this momentous day with the grand opening of our new casino in Aurora, Illinois in less than two weeks.”
The Columbus hotel tower is the third of PENN’s previously announced growth projects to be completed. In 2025, PENN opened an all-new land-based casino in Joliet, Illinois and a new hotel tower at M Resort Spa Casino Las Vegas. PENN plans to open the new Hollywood Casino Aurora on June 24th, 2026, and another relocation to a new land-based property in Council Bluffs, Iowa is anticipated to open in 2028, each pending regulatory approvals.
About PENN Entertainment, Inc.
PENN Entertainment, Inc., together with its subsidiaries (“PENN,” or the “Company,” “we,” “our,” or “us”), operates in 27 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks, and online sports betting and iCasino offerings. PENN’s focus is on organic cross-sell opportunities, reinforced by its market-leading retail casinos, sports media assets and technology, including a proprietary state-of-the-art, fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. The Company’s portfolio is further bolstered by its industry-leading PENN Play™ customer loyalty program, offering its approximately 34 million members a unique set of rewards and experiences.
Forward Looking Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” “look forward to,” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results, or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks, uncertainties and other factors, including those factors described in PENN Entertainment’s filings with the Securities and Exchange Commission (the “SEC”), including PENN Entertainment's current reports on Form 8-K, quarterly reports on Form 10-Q and its annual report on Form 10-K for the year ended December 31, 2025. Forward-looking statements speak only as of the date they are made and, except for PENN Entertainment’s ongoing obligations under the U.S. federal securities laws, PENN Entertainment undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
PITTSBURGH--(BUSINESS WIRE)--PPG (NYSE:PPG) today announced that its Board of Directors has elected Jamie A. Beggs to serve as senior vice president and chief financial officer (CFO), effective July 6. Beggs is replacing Vincent J. Morales as CFO, who announced earlier his planned retirement which will also be July 6, following a distinguished 41-year career with PPG. Beggs and Morales will work closely together in the coming months to ensure a successful transition. Beggs will report to Timothy M. Knavish, PPG chairman and chief executive officer, and will join PPG’s executive and operating committees. She will also have executive leadership responsibilities for corporate development and information technology.
Beggs joins PPG with more than 25 years of experience in financial leadership positions in public and private organizations with a focus on specialty materials and diverse end markets. Since 2020, she has served as CFO of Avient Corporation, an innovator of materials solutions. Beggs also currently serves on the Board of Directors of International Paper.
“We are excited to welcome Jamie to PPG as we drive and accelerate our growth strategy,” said Knavish. “She brings proven financial leadership from her prior CFO experiences, deep industry expertise and extensive business leadership. On behalf of the PPG Board of Directors and our senior leadership team, we look forward to drawing on her expertise as we maintain our focus on delivering increased value creation.”
Prior to Avient Corporation, Beggs served as CFO of Hunt Consolidated, Inc., a diversified holding company for businesses in several industries, including oil and gas exploration, refining, liquefied natural gas, power and infrastructure. She also worked for 10 years at Celanese Corporation, where she served in a variety of leadership positions, including corporate vice president and treasurer, and CFO of its Materials Solutions business. She began her career at PricewaterhouseCoopers LLP after earning her bachelor's and master's degrees in accounting from the University of Texas.
“PPG is a company with an incredible legacy and an even more exciting future,” said Beggs. “I am honored to join such a talented team and look forward to partnering with Tim and the organization to build on the strong momentum underway and capture the significant opportunities ahead.”
PPG: WE PROTECT AND BEAUTIFY THE WORLD®
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.
PITTSBURGH--(BUSINESS WIRE)--PPG (NYSE:PPG) today reported financial results for the first quarter 2026.
First Quarter 2026 Consolidated Results
$ in millions, except EPS
1Q 2026
1Q 2025
YOY change
Net sales
$3,930
$3,684
+7%
Net income (a)
$382
$375
+2%
Adjusted net income (a)(b)
$411
$396
+4%
EPS (a)
$1.70
$1.64
+4%
Adjusted EPS (a)(b)
$1.83
$1.72
+6%
(a) From continuing operations
(b) Reconciliations of reported to adjusted figures are included below
Chairman and CEO Comments
Tim Knavish, PPG chairman and chief executive officer, commented on the quarter:
In the first quarter, PPG delivered organic sales growth of 1%, demonstrating our ability to maintain growth momentum in a challenging environment. We delivered higher selling prices, with further selling price realization targeted to offset any inflationary impact more quickly than prior cycles. Adjusted EPS increased 6% driven by strong results in our differentiated aerospace and architectural coatings Latin America businesses, reflecting the benefits of our technology-advantaged products and strong brand recognition, along with excellent commercial execution.
Our Global Architectural Coatings segment achieved low single-digit percentage organic sales growth and EBITDA margin improvement of 230 basis points driven by strength in Latin America. In Europe, demand remains mixed whereas in Mexico, project-related sales are recovering and retail sales were especially strong.
Performance Coatings segment organic sales grew a low single-digit percentage benefitting from strong demand for aerospace and protective and marine coatings products. Aerospace industry growth is expected to remain robust, and our order backlog positions us well to deliver consistent above-industry growth in this key end market.
In our Industrial Coatings segment, we are delivering on previously communicated share gains in automotive original equipment manufacturer (OEM) coatings and packaging coatings, which allowed us to grow above industry levels. However, margins in the first quarter were negatively impacted by regional mix as China automotive production dropped in comparison to a particularly high level in the first quarter of last year. Results for packaging coatings were outstanding as we increased both organic sales and EBITDA margin.
Looking ahead, we expect strong growth in aerospace, architectural coatings in Latin America, protective and marine coatings and packaging coatings. Automotive refinish coatings organic sales are anticipated to improve for PPG in the second half of the year related to the phasing of customer order patterns last year. We are also seeing early signs of demand improvement in the U.S. refinish market as insurance claims begin to normalize to historical levels.
In recent weeks, costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. As a result, PPG has proactively announced price adjustments globally and across the portfolio. Given the scale of our differentiated portfolio, we are able to source raw materials globally, and compared to prior inflation cycles, we have an improved ability to offset inflation by increasing selling prices in step with raw material price increases.
In the second quarter, we expect both organic sales and adjusted earnings per share in the range of flat to growth of a low single-digit percentage. We are maintaining our full-year earnings per share guidance range of $7.70 to $8.10. This guidance reflects confidence in our growth momentum, including share gains and realization of pricing and execution of self-help actions, which will serve to mitigate the raw material inflation impact.
Thank you to our PPG team around the world who make it happen and deliver on our purpose every day: We protect and beautify the world®.
Additional Financial Information
Net sales in the quarter increased 7% year over year, including benefits from higher selling prices of 1% and positive foreign currency translation of 6%. At quarter end, the company had cash and short-term investments totaling $1.6 billion. Net debt was $5.5 billion, an increase of $150 million from the first quarter 2025. Cash from operating activities was $33 million, approximately $50 million higher year over year. The company repaid $700 million of debt which matured in the first quarter. Corporate expenses were $83 million in the first quarter. First quarter net interest expense was $24 million. In the first quarter, the effective tax rate was approximately 25.5%, up about 100 basis points year over year. First Quarter 2026 Reportable Segment Financial Results
Global Architectural Coatings Segment
$ in millions
1Q 2026
1Q 2025
YOY change
Net sales
$965
$857
+13%
Sales volumes
—%
Selling prices
+2%
Foreign currency translation
+12%
Divestitures
(1)%
Segment income
$155
$118
+31%
Segment income %
16.1%
13.8%
Segment EBITDA (a)
$184
$144
+28%
Segment EBITDA %
19.1%
16.8%
(a) Reconciliations of reported to adjusted figures are included below
Global Architectural Coatings segment net sales increased 13% compared to the first quarter 2025 driven by higher selling prices and a benefit from foreign currency translation partially offset by divestitures.
Organic sales for architectural coatings Latin America and Asia Pacific increased by a mid-single-digit percentage compared to the first quarter 2025 driven by growth in Latin America. Organic sales for architectural coatings EMEA declined by a low single-digit percentage year over year, with higher selling prices more than offset by lower sales volumes. In Mexico, retail sales were especially strong in the quarter. Mexican project-related sales continued to recover and the company expects further incremental improvement in the second quarter aided by higher business and governmental project investment.
Segment EBITDA increased 28% and segment EBITDA margin improved 230 basis points compared to the prior year with realization of higher selling prices and cost-control actions.
Performance Coatings Segment
$ in millions
1Q 2026
1Q 2025
YOY change
Net sales
$1,334
$1,265
+5%
Sales volumes
(2)%
Selling prices
+3%
Foreign currency translation
+3%
Acquisitions
+1%
Segment income
$288
$274
+5%
Segment income %
21.6%
21.7%
Segment EBITDA (a)
$326
$307
+6%
Segment EBITDA %
24.4%
24.3%
(a) Reconciliations of reported to adjusted figures are included below
Performance Coatings segment net sales increased 5% driven by higher selling prices, foreign currency translation benefit, and acquisitions, partially offset by lower sales volumes.
Organic sales improved 1% compared to the prior year driven by aerospace, protective and marine coatings, and traffic solutions, partially offset by expected year-over-year sales volume declines in automotive refinish coatings. Aerospace achieved exceptional quarterly sales with double-digit percentage organic sales growth while our order backlog remained at about $315 million. Organic sales in automotive refinish coatings decreased by a double-digit percentage as sales volumes were lower, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half of 2025. Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior year, achieving its 12th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific. Organic sales in traffic solutions increased a high single-digit percentage driven by strong demand across the U.S. and Canada.
Compared to the first quarter 2025, segment EBITDA increased by 6% and segment EBITDA margin improved slightly, driven by higher selling prices partially offset by lower automotive refinish coatings sales volumes and higher growth-related investment spending in aerospace and protective and marine coatings.
Industrial Coatings Segment
$ in millions
1Q 2026
1Q 2025
YOY change
Net sales
$1,631
$1,562
+4%
Sales volumes
+1%
Selling prices
(1)%
Foreign currency translation
+4%
Segment income
$193
$215
(10)%
Segment income %
11.8%
13.8%
Segment EBITDA (a)
$245
$263
(7)%
Segment EBITDA %
15.0%
16.8%
(a) Reconciliations of reported to adjusted figures are included below
Industrial Coatings segment net sales increased 4% compared to the first quarter 2025 driven by foreign currency translation. Organic sales were flat, including sales volumes growth of 1%, reflecting the benefits from share gains offset by the impact of lower selling prices from certain index-based customer contracts.
Automotive OEM coatings organic sales decreased a low single-digit percentage, with flat sales volumes, including share gains, resulting in the business outpacing the decline in global automotive industry production by about 300 basis points. Industrial coatings organic sales declined a low single-digit percentage driven by soft demand in the United States which offset growth in other regions. Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes are up over 20 percent on a two-year stacked basis, driven by share gains, as customers adopt our leading technologies.
Segment EBITDA decreased 7% and segment EBITDA margin declined 180 basis points compared to the first quarter 2025. This was driven by regional mix and lower selling prices due to index-based contracts.
Outlook
The company expects both second quarter organic sales and adjusted earnings per share in the range of flat to growth of a low single-digit percentage. We are maintaining our full-year earnings per share guidance range of $7.70 to $8.10. This reflects the momentum of share gains and self-help actions, along with an updated view of current global economic activity, foreign exchange rates as well as regional and business mix.
Additional information related to 2026 financial projections is posted within the slides and prepared commentary associated with the first quarter earnings documents on the Investors section of PPG.com.
The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.
PPG: WE PROTECT AND BEAUTIFY THE WORLD®
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.
Additional Information
PPG will provide detailed commentary regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, April 28. The company will hold a conference call to review its first quarter 2026 financial performance on April 29, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/analyst/616458242?pwd=9U5JS1Tl. The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A web replay will be available shortly after the call on the PPG Investor Center at www.ppg.com, and will remain through Tuesday, April 28, 2027.
Forward-Looking Statements
Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder. Accordingly, many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in our 2025 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.
All information in this release speaks only as of April 28, 2026, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.
Regulation G Reconciliation
PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations, PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA. PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate, EBITDA, adjusted EBITDA, adjusted EBITDA margin and segment EBITDA may not be comparable to similarly titled measures as reported by other companies. PPG is not able to provide a reconciliation of second quarter 2026 or full-year 2026 expected adjusted earnings per diluted share to the most directly comparable GAAP financial measure without unreasonable effort because certain items that impact such measure are uncertain or cannot be reasonably predicted at this time.
Regulation G Reconciliation - Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income
($ in millions, except per-share amounts and percentages)
First Quarter
2026
First Quarter
2025
$
EPS(a)
$
EPS (a)
Reported net income from continuing operations
$382
$1.70
$375
$1.64
Acquisition-related amortization expense
20
0.09
24
0.10
Business restructuring-related costs, net(b)
4
0.02
7
0.03
Portfolio optimization(c)
5
0.02
(6
)
(0.03
)
Insurance recovery(d)
—
—
(4
)
(0.02
)
Adjusted net income from continuing operations, excluding certain items
$411
$1.83
$396
$1.72
First Quarter
2026
First Quarter
2025
Income Before Income Taxes
Tax Expense
Effective Tax Rate
Income Before Income Taxes
Tax Expense
Effective Tax Rate
Effective tax rate, continuing operations
$517
$132
25.5
%
$502
$122
24.3
%
Acquisition-related amortization expense
27
7
24.3
%
32
8
24.4
%
Business restructuring-related costs, net(b)
5
1
23.2
%
9
2
19.7
%
Portfolio optimization(c)
7
2
25.6
%
(6
)
—
N/A
Insurance recovery(d)
—
—
—
%
(6
)
(2
)
24.3
%
Adjusted effective tax rate, continuing operations, excluding certain items
$556
$142
25.5
%
$531
$130
24.5
%
First Quarter
2026
2025
Global Architectural Coatings
Net sales
$965
$857
Segment income
$155
$118
Segment depreciation and amortization
29
26
Segment EBITDA
$184
$144
Segment EBITDA %
19.1
%
16.8
%
Performance Coatings
Net sales
$1,334
$1,265
Segment income
$288
$274
Segment depreciation and amortization
38
33
Segment EBITDA
$326
$307
Segment EBITDA %
24.4
%
24.3
%
Industrial Coatings
Net sales
$1,631
$1,562
Segment income
$193
$215
Segment depreciation and amortization
52
48
Segment EBITDA
$245
$263
Segment EBITDA %
15.0
%
16.8
%
Total Segment EBITDA
Net sales
$3,930
$3,684
Segment income
$636
$607
Segment depreciation and amortization
119
107
Segment EBITDA
$755
$714
Segment EBITDA %
19.2
%
19.4
%
PPG INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited)
(All amounts in millions except per-share data)
Three Months Ended
March 31
2026
2025
Net sales
$3,930
$3,684
Cost of sales, exclusive of depreciation and amortization
2,275
2,142
Selling, general and administrative
885
838
Depreciation
105
89
Amortization
27
32
Research and development, net
113
102
Interest expense
61
56
Interest income
(37
)
(43
)
Other income, net
(16
)
(34
)
Income before income taxes
$517
$502
Income tax expense
132
122
Income from continuing operations
$385
$380
Loss from discontinued operations, net of tax
—
(2
)
Net income attributable to controlling and noncontrolling interests
$385
$378
Net income attributable to noncontrolling interests
(3
)
(5
)
Net income (attributable to PPG)
$382
$373
Amounts attributable to PPG:
Income from continuing operations, net of tax
$382
$375
Loss from discontinued operations, net of tax
—
(2
)
Net income (attributable to PPG)
$382
$373
Earnings per common share:
Income from continuing operations, net of tax
$1.71
$1.64
Loss from discontinued operations, net of tax
—
(0.01
)
Earnings per common share (attributable to PPG)
$1.71
$1.63
Earnings per common share – assuming dilution:
Income from continuing operations, net of tax
$1.70
$1.64
Loss from discontinued operations, net of tax
—
(0.01
)
Earnings per common share (attributable to PPG) - assuming dilution
$1.70
$1.63
Average shares outstanding
223.7
228.0
Average shares outstanding - assuming dilution
224.4
228.9
PPG INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited)
Short-term debt and current portion of long-term debt
$736
$706
$1,688
Accounts payable and accrued liabilities
4,001
3,957
3,885
Current portion of operating lease liabilities
138
138
134
Restructuring reserves
78
99
130
Total current liabilities
$4,953
$4,900
$5,837
Long-term debt
$6,407
$6,602
$5,574
PPG OPERATING METRICS (unaudited)
($ in millions)
March 31
December 31
March 31
2026
2025
2025
Operating Working Capital(a)
$3,138
$2,748
$2,843
As a percent of quarter sales, annualized
20.0
%
17.6
%
19.3
%
(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities.
PPG INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited)
($ in millions)
Three Months Ended
March 31
2026
2025
Net sales
Global Architectural Coatings
$965
$857
Performance Coatings
1,334
1,265
Industrial Coatings
1,631
1,562
Total
$3,930
$3,684
Segment income
Global Architectural Coatings
$155
$118
Performance Coatings
288
274
Industrial Coatings
193
215
Total
$636
$607
Items not allocated to segments
Corporate / non-segment unallocated, exclusive of depreciation and amortization
(74
)
(81
)
Corporate / non-segment unallocated depreciation and amortization
PPG Industries (PPG - Free Report) came out with quarterly earnings of $1.83 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.05%. A quarter ago, it was expected that this paint and coatings maker would post earnings of $1.57 per share when it actually produced earnings of $1.51, delivering a surprise of -3.82%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
PPG Industries, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $3.93 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.40%. This compares to year-ago revenues of $3.68 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PPG Industries shares have added about 7.7% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for PPG Industries?While PPG Industries has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PPG Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.25 on $4.34 billion in revenues for the coming quarter and $8.00 on $16.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Perimeter Solutions, SA (PRM - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Perimeter Solutions, SA's revenues are expected to be $109.61 million, up 52.2% from the year-ago quarter.
For the quarter ended March 2026, PPG Industries (PPG - Free Report) reported revenue of $3.93 billion, up 6.7% over the same period last year. EPS came in at $1.83, compared to $1.72 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.84 billion, representing a surprise of +2.4%. The company delivered an EPS surprise of +0.05%, with the consensus EPS estimate being $1.83.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how PPG Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Performance Coatings: $1.33 billion versus the four-analyst average estimate of $1.31 billion. The reported number represents a year-over-year change of +5.5%.Net Sales- Global Architectural Coatings: $965 million versus $944.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.6% change.Net Sales- Industrial Coatings: $1.63 billion compared to the $1.6 billion average estimate based on four analysts. The reported number represents a change of +4.4% year over year.Segment Income- Performance Coatings: $288 million versus $258.38 million estimated by four analysts on average.Segment Income- Global Architectural Coatings: $155 million compared to the $141.42 million average estimate based on four analysts.Segment Income- Industrial Coatings: $193 million compared to the $217.3 million average estimate based on four analysts.View all Key Company Metrics for PPG Industries here>>>
Shares of PPG Industries have returned +6.2% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways PPG posted Q1 adjusted EPS of $1.83, matching estimates, as revenues rose 6.7% to $3.93B.PPG cited pricing and FX gains; aerospace saw double-digit organic growth with $315M backlog.PPG reaffirmed 2026 EPS view of $7.70-$8.10 despite $240M-$300M inflation headwind. PPG Industries, Inc. (PPG - Free Report) delivered adjusted earnings of $1.83 per share in the first quarter of 2026, up 6.4% year over year and in line with the Zacks Consensus Estimate.
Revenues came in at $3.93 billion, up 6.7% from the year-ago quarter and ahead of the consensus mark of $3.84 billion by 2.4%.
Results benefited from higher selling prices and a sizable foreign currency translation lift, while organic sales increased 1% year over year. The company is witnessing rising costs of raw materials, energy, logistics and packaging across the coatings value chain, making incremental selling price realization a priority as it works to offset rising input costs more quickly than in prior inflation cycles. The company also pointed to global sourcing flexibility and cost reduction efforts, including technology and AI-enabled optimization, as levers to help protect price-cost recovery.
PPG’s Segment ReviewGlobal Architectural Coatings’ net sales increased 12.6% year over year to $965 million. The figure beat our estimate of $885 million. Segment EBITDA margin expanded to 19.1% from 16.8%, reflecting higher selling prices and cost-control actions.
Management cited strength in Latin America and the Asia Pacific, led by Mexico. Retail sales were especially strong, and project-related sales continued to recover, while architectural coatings demand in EMEA remained mixed by country.
Performance Coatings sales rose 5.5% year over year to $1,334 million. The figure topped our estimate of $1,265 million. Segment EBITDA margin edged up to 24.4% from 24.3%, supported by higher selling prices, currency benefits and contributions from acquisitions.
Within the segment, aerospace delivered an exceptional performance with double-digit organic sales growth and ended the quarter with an order backlog of about $315 million. Protective and marine coatings also advanced, including continued above-market marine volume growth in the Asia Pacific, while automotive refinish declined sharply due to a difficult comparison tied to distributor ordering patterns in the first half of 2025.
Industrial Coatings net sales increased 4.4% year over year to $1,631 million, driven primarily by foreign currency translation. The figure beat our estimate of $1,554 million. Segment EBITDA margin declined to 15% from 16.8% as regional mix and lower selling prices weighed on profitability.
Organic sales in the segment were flat, with a 1% volume gain from share wins offset by lower pricing in certain index-based customer contracts. Packaging coatings stood out, with double-digit organic sales growth and volumes up more than 20% on a two-year stacked basis as customers adopted PPG’s technologies.
PPG's FinancialsAt the quarter end, PPG had cash and cash equivalents totaling $1,573 million. Long-term debt was $6,407 million, up $833 million from the first quarter of 2025.
Cash from operating activities was $33 million, about $50 million higher year over year. Capital deployment remained shareholder-focused, with share repurchases totaling about $100 million in the quarter.
PPG Outlook ReaffirmedPPG expects second-quarter organic sales and adjusted earnings per share to range from flat to low single-digit growth year over year. Management reaffirmed its full-year 2026 adjusted earnings guidance range of $7.70 to $8.10 per share.
The outlook assumes continued momentum from share gains and self-help actions, alongside an updated view of global economic activity, foreign exchange rates and regional mix. Management highlighted growth opportunities in aerospace, architectural coatings in Latin America, protective and marine coatings and packaging coatings, while anticipating an improvement in automotive refinish in the back half of the year, tied to customer order phasing.
For the rest of 2026, the company expects mid-single-digit cost of goods sold inflation, translating to an estimated $240 million to $300 million incremental EBITDA headwind. To counter that pressure, management expects pricing to contribute $230 million to $270 million of incremental EBITDA in 2026.
PPG’s Price PerformanceShares of PPG have lost 1% in the past year compared with the industry’s 8.6% rise.
Image Source: Zacks Investment Research
PPG’s Zacks Rank & Key PicksPPG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , Compass Minerals International, Inc. (CMP - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Compass Mineral is slated to report second-quarter fiscal 2026 results on May 6. The consensus estimate for CMP’s earnings per share is pegged at 66 cents. CMP presently carries a Zacks Rank #1.
Air Products is scheduled to report second-quarter fiscal 2026 results on April 30. The Zacks Consensus Estimate for APD’s second-quarter earnings per share is pegged at $3.05, indicating 13.38% year-over-year growth. APD carries a Zacks Rank #2 (Buy) at present.
PITTSBURGH--(BUSINESS WIRE)--PPG (NYSE:PPG) today announced that its Information Technology (IT) team has received the ‘Tech Team of the Year’ award from the Pittsburgh Technology Council. PPG was selected among five finalists in recognition of its landmark cloud-only IT transformation.
The initiative allowed the company to close eight global company data centers and migrate or retire more than 5,000 workloads, delivering over $4 million in annual savings, lowering environmental impact and accelerating business agility. Through the system’s features, the team increased developer speed and efficiency by up to 80% while strengthening security, compliance and cost transparency.
“Operating as a product-centric organization, our Cloud Platforms and Solutions team empowers PPG’s global businesses to innovate faster, scale responsibly and confidently harness modern cloud and AI technologies,” said Bhaskar Ramachandran, PPG vice president and chief information officer. “Through these efforts and others, we’re positioning PPG as a first-choice coatings partner for its stakeholders globally.”
To learn more about PPG’s IT efforts, visit PPG.com.
PPG: WE PROTECT AND BEAUTIFY THE WORLD®
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.
