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Key Takeaways JBLU plans nonstop Fort Lauderdale-Caracas service, marking its first entry into Venezuela. JetBlue aims to serve strong demand from South Florida's Venezuelan community. JBLU's Caracas route awaits regulatory approvals and operational clearances in Venezuela. JetBlue Airways’ (JBLU - Free Report) planned launch of nonstop service between Fort Lauderdale and Caracas, representing strategic expansion into a market with strong pent-up demand while marking the airline’s first-ever entry into Venezuela. The route would strengthen JBLU’s position in Latin America and the Caribbean. This would allow the carrier to tap into the large Venezuelan community in South Florida, where demand for visiting-friends-and-relatives travel remains significant.

The announcement also aligns with JetBlue’s broader growth strategy in Fort Lauderdale, which has become one of the airline’s most important gateways. The carrier recently unveiled its largest-ever schedule from the airport, including 11 new destinations and nearly 130 daily departures during the summer. By adding Caracas, JBLU continues to expand connectivity across the Americas while reinforcing Fort Lauderdale’s role as a key hub for its international network.

The proposed service comes as U.S. carriers gradually return to Venezuela following years of limited operations. JetBlue’s entry into the market could help diversify its international revenue base and strengthen its competitive position in South Florida, particularly as airlines seek growth opportunities in underserved Latin American routes. The use of Airbus A320 aircraft and JBLU’s customer-focused onboard offerings could further enhance its appeal among leisure and diaspora travelers.

However, the route remains subject to regulatory approvals and operational clearances in Venezuela, making the timeline dependent on government processes. If approved, the service would not only expand JetBlue’s geographic reach but also support its long-term strategy of allocating capacity toward higher-demand markets, with stronger connectivity and growth potential.

JBLU’s Share Price PerformanceJetBlue Airways’ shares have gained 19.9% in the past six months compared with the Transportation - Airline industry’s 5.6% growth.

Image Source: Zacks Investment Research

JBLU’s Zacks RankJBLU currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and International Seaways (INSW - Free Report) . 

EXPD currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expeditors has an expected earnings growth rate of 11.9% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.

INSW currently sports a Zacks Rank #1.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.

Fuel costs are expected to rise around $100 billion this year, hitting airline profits.

New multi-year agreement underscores JetBlue’s longstanding commitment to South Florida with the debut of JetBlue Landing and enhanced fan experiences

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--JetBlue (Nasdaq: JBLU) today announced a new multi-year extension of its partnership with the Florida Panthers, reinforcing the airline’s position as a leading carrier in South Florida as it continues to grow at Fort Lauderdale-Hollywood International Airport (FLL). Beginning with the 2026–2027 NHL season, JetBlue will continue its role as the official airline of the Florida Panthers while becoming the presenting partner of the newly reimagined Champions Club at Amerant Bank Arena and debuting JetBlue Landing, a new fan destination designed to create memorable experiences for Panthers fans and JetBlue customers throughout the season.

The announcement comes as JetBlue continues expanding its presence across South Florida, including the recent addition of 11 new destinations and added frequencies on popular routes from Fort Lauderdale-Hollywood International Airport (FLL). Starting July 9, JetBlue will operate nearly 130 daily departures to more than 55 nonstop destinations from Fort Lauderdale. By the end of the year, JetBlue expects to offer more than 150 daily flights from FLL, and 34 daily departures from West Palm Beach, further strengthening the airline’s commitment to South Florida.

“As we continue to expand in Fort Lauderdale and welcome new customers across the region, growing our partnership with the Florida Panthers just feels right,” said Stephanie Evans Greene, JetBlue's senior vice president of marketing and brand. “The Florida Panthers organization understands what it means to show up for this community the way we do. This is about more than putting our names together. It’s about finding real ways to connect with fans and celebrate everything that makes South Florida unlike anywhere else.”

“We are proud to continue this storied partnership with a first-class organization like JetBlue,” said Michael White, president of business operations for the Florida Panthers. “As two organizations with deep roots in Broward County, we share a commitment to showing up for this community and creating exceptional experiences for the people who live here. JetBlue Landing will become a unique addition to the gameday experience and an exciting new way to engage our fans throughout the season.”

Introducing JetBlue Landing
Debuting for the 2026–2027 Florida Panthers season, JetBlue Landing will be a new fan destination at Amerant Bank Arena, offering exclusive events, unique experiences and special access opportunities throughout the season. Designed to enhance the fan experience both on gamedays and beyond, JetBlue Landing will feature special programming and new ways for fans to engage with the team. Additional details about JetBlue Landing will be announced ahead of the 2026–2027 season.

Investing in the South Florida Community
Beyond the arena, JetBlue and the Florida Panthers will continue supporting local communities through initiatives like the Reading Challenge program, which encourages Broward County Public School students to read daily for a chance to earn school pep rallies, mascot appearances and other experiences. During the program’s inaugural year, more than 2,600 students participated, logging more than 675,000 minutes read across 116 participating classrooms in Broward County.

About JetBlue
JetBlue is New York’s Hometown Airline® and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada, and Europe. For more information and the best fares, visit jetblue.com.

About the Florida Panthers
The Florida Panthers are the National Hockey League’s southernmost team and captured the Stanley Cup in back-to-back seasons in 2023-24 and 2024-25. Entering their 33rd season in 2026-27, the Panthers operate four facilities in Broward County, Florida: Amerant Bank Arena in Sunrise, the Panthers IceDen in Coral Springs, the new state-of-the-art practice facility Baptist Health IcePlex in Fort Lauderdale, as well as the renovated War Memorial Auditorium, which hosts concerts and events for the South Florida faithful.

An organization with deep roots in the community, the Panthers are owned by Vincent J. Viola, a graduate of the United States Military Academy at West Point and a veteran of the U.S. Army. Emphasizing a culture of selfless service both on and off the ice, the Panthers pillar program ‘Heroes Among Us’ honors a United States military veteran at every game and the Florida Panthers Foundation has four main focuses including veterans affairs, children's health and education, raising awareness for the endangered Florida panther and growing youth hockey.

Key Takeaways JetBlue extended its Florida Panthers deal, staying the official airline from the 2026-27 NHL season.JetBlue Landing will offer Panthers fans exclusive events, programming and team connections.JetBlue plans nearly 130 daily FLL departures from July 9 and aims to top 150 by year-end. In a bid to widen its popularity in terms of services and strengthen its position in South Florida as it continues to grow at Fort Lauderdale-Hollywood International Airport (FLL), JetBlue Airways (JBLU - Free Report) announced the multi-year extension of its partnership with the Florida Panthers.

Beginning with the 2026–2027 NHL season, JetBlue will remain the Panthers’ official airline while also becoming the presenting partner of the revamped Champions Club at Amerant Bank Arena. The agreement also introduces JetBlue Landing, a new fan-focused destination designed to offer exclusive experiences and engagement opportunities throughout the season.

The partnership expansion aligns with JetBlue’s consistent growth in the region. To this end, the airline has recently added 11 new destinations and increased service on several popular routes from FLL. Beginning July 9, JBLU will operate nearly 130 daily departures to more than 55 nonstop destinations from FLL, with plans to exceed 150 daily flights by the end of the year. JBLU also aims to provide 34 daily departures from West Palm Beach.

Set to launch ahead of the 2026–2027 season, JetBlue Landing will serve as a new gathering space at Amerant Bank Arena, featuring exclusive events, special programming and unique opportunities for fans to connect with the team both on game days and throughout the year. Additional details will be announced closer to the season.Top of FormBottom of Form

Stephanie Evans Greene, JetBlue's senior vice president of marketing and brand. “As we continue to expand in Fort Lauderdale and welcome new customers across the region, growing our partnership with the Florida Panthers just feels right,” said “The Florida Panthers organization understands what it means to show up for this community the way we do. This is about more than putting our names together. It’s about finding real ways to connect with fans and celebrate everything that makes South Florida unlike anywhere else.”

JBLU’s Zacks Rank and Stocks to ConsiderJBLU presently carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Transportation sector may consider International Seaways (INSW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) . 

INSW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.

EXPD currently carries a Zacks Rank #2 (Buy).

Expeditors has an expected earnings growth rate of 11.9% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.

Organigram Global Inc. (OGI:CA) Shareholder/Analyst Call Prepared Remarks Transcript

TORONTO & BERLIN--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”) and Sanity Group GmbH (“Sanity” or “Sanity Group”) jointly announced the successful closing of Organigram’s previously announced acquisition (the “Acquisition”) of Sanity Group, pursuant to the terms of a share purchase agreement dated February 18, 2026 (the “Share Purchase Agreement”). In connection with closing of the Acquisition, a wholly owned subsidiary of the Company acquired all of the issued and outstanding shares of Sanity Group not already owned by the Company for an upfront purchase price paid on closing of €107.3 million, consisting of €78.0 million in cash and €29.3 million in share consideration (the “Upfront Consideration”). In connection with the closing of the Acquisition, the Company also closed its previously announced private placement financing (the “Private Placement”) with BT DE Investments Inc. (“BAT”), a wholly owned subsidiary of British American Tobacco p.l.c.1, for total gross proceeds of €40.3 million (equal to C$65.2 million)2, and its previously announced senior secured credit facilities (the “Loan Facilities”) of up to C$60 million.

The Company is also pleased to announce that, in connection with the closing of the Acquisition, Mr. Max Konrad Narr has been appointed to the Company’s board of directors for the duration of the Earnout Period (as defined below).

A portion of the cash component of the Upfront Consideration payable in connection with the Acquisition was funded using an amount drawn from Organigram’s Jupiter strategic investment pool (the “Jupiter Pool”), a capital pool established in 2024 with funding from BAT to support international growth initiatives. The use of such funds in connection with the Acquisition represents the final deployment of the Jupiter Pool.

About Sanity Group

Sanity Group is one of Europe’s leading pure-play cannabis companies, headquartered in Germany with a scalable European platform and expanding operations in Switzerland, the United Kingdom, Poland and Czechia. Sanity has developed a diversified and sophisticated commercial footprint across key segments of the cannabis value chain, including medical cannabis, regulated recreational pilot programs, and wellbeing products. Sanity benefits from deep regulatory expertise, strong distribution and logistics capabilities, and an extensive network of strategic partners across Europe.

Structuring of Consideration and Earnout under the Share Purchase Agreement

The Upfront Consideration paid on closing consisted of €78.0 million in cash3 and €29.3 million in share consideration, which was satisfied by Organigram issuing 3,146,195 common shares in the capital of the Company (the “Common Shares”) to the former shareholders of Sanity (the “Sellers”) and 12,638,228 non-voting Class A convertible preferred shares in the capital of the Company to BAT (the “Preferred Shares”, and together with the Common Shares, the “Shares”) at a price per Share of €1.8547 (C$3.00). The Upfront Consideration is based on estimated cash, debt and working capital of Sanity Group and is subject to post closing adjustment. In addition to the Upfront Consideration, the Sellers are entitled to future earnout consideration of up to €113.8 million, consisting of up to €20.0 million in cash, and up to €93.8 million in Shares, to be priced based on the volume-weighted average price of the Company’s Common Shares on the Toronto Stock Exchange (the “TSX”) for the twenty trading days on which there was a closing price for the Common Shares immediately preceding the settlement of such Shares, subject to a C$3.00 floor and C$4.00 cap (the “Earnout Consideration”), dependent on Sanity Group’s financial performance during the 12-month period ended April 1, 2027 (the “Earnout Period”).

ATB Credit Facility

In connection with the Acquisition and concurrently with the closing of the Acquisition, the Company closed the previously announced Loan Facilities between the Company, as borrower, ATB Financial as administrative agent, sole lead arranger and bookrunner, and the lenders party thereto from time to time (the “Credit Agreement”).

The Loan Facilities consist of a (i) C$20 million non-revolving term facility; (ii) C$30 million revolving credit facility; and (iii) C$10 million operating facility. The Loan Facilities are secured by assets of the Company and its material subsidiaries.

The proceeds of the non-revolving term loan have been used to partially fund the Acquisition. The revolving credit facility may be used to fund any earn out obligations in connection with the Acquisition and to finance working capital requirements and for general corporate purposes. The operating facility will be used to finance working capital requirements and for general corporate purposes.

Pursuant to the agreed conditions of the Loan Facilities, the Company has initially drawn C$20 million of the term loan on closing at the Prime Rate (as defined in the Credit Agreement). The Loan Facilities will mature on April 14, 2029 and the Company may, at its discretion, repay the balance of the Facilities without penalty, at any time (subject to the applicable notice requirements under the Credit Agreement). The Credit Agreement includes customary positive and negative covenants and events of default or loans of similar type, including financial covenants.

Private Placement with BAT

In connection with the Acquisition and concurrently with the closing of the Acquisition, the Company closed its previously announced Private Placement with BAT. Pursuant to closing of the Private Placement, BAT acquired, on a private placement basis, 1,152,800 Common Shares and 12,874,274 Preferred Shares of the Company at a price of C$3.00 per Share for gross proceeds of C$42.08 million, and 9,897,356 Preferred Shares of the Company at a price of C$2.335854 per Share, pursuant to the exercise of certain existing top-up rights, for gross proceeds of C$23.12 million, for total gross proceeds of €40,287,080 (equal to C$65.2 million)4 (the “Private Placement Subscription Proceeds”) pursuant to the terms of a subscription agreement dated February 18, 2026 (the “Subscription Agreement”). The Private Placement Subscription Proceeds were used to finance the cash portion of the Upfront Consideration and certain related transaction expenses of the Company.

Pursuant to the terms of the Subscription Agreement, the Shares issued in the closing of the Private Placement were allocated between Common Shares and Preferred Shares, such that if the number of Common Shares owned by BAT or its affiliates, associates, related parties and any joint actors would have exceeded the 30% Threshold after the closing of the Private Placement, the Company issued to BAT the greatest number of Common Shares issuable pursuant to the closing without exceeding the 30% Threshold, with the remainder of the Shares issuable as Preferred Shares (all as more specifically set forth in the Subscription Agreement).

The Preferred Shares are non-voting convertible preferred shares of the Company convertible at the option of BAT without payment of any additional consideration (subject to the 30% Threshold). The Preferred Shares are convertible initially on a one-for-one basis into Common Shares; provided, however, that the conversion rate will increase at a rate of 7.5% per annum commencing from the initial date on which such Preferred Shares are issued, until such time as the holders of Preferred Shares would beneficially own, or exercise control or direction over, directly or indirectly, with their respective affiliates, associates, related parties and any joint actors, after giving effect to the conversion of the Preferred Shares, 49.0% of the aggregate number of Common Shares issued and outstanding.

Amended and Restated Investor Rights Agreement

In connection with the closing of the Private Placement, the Company and BAT entered into a second amended and restated investor rights agreement (the “Second Amended & Restated IRA”), which further amends and restates the prior investor rights agreement dated January 23, 2024 between the Company and BAT to, among other things, provide increased flexibility concerning debt financing transactions by Organigram and refresh the time periods with respect to certain provisions. A copy of the Second Amended & Restated IRA will be available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

Advisors and Counsel

In connection with the Acquisition, the Company engaged EY for financial and tax advisory work, and BMO Capital Markets to provide a fairness opinion in respect the consideration to be paid by the Company pursuant to the Share Purchase Agreement. Goodmans LLP acted as Canadian legal counsel to the Company in connection with the Acquisition, the Loan Facilities and the Private Placement. Hogan Lovells International LLP acted as German legal counsel to the Company on the Acquisition, and McMillan LLP acted as U.S. legal counsel to the Company in connection with the Acquisition.

Sanity Group engaged its former Managing Director and Chief Investment & Strategy Officer, Max Narr, to support the management of the Acquisition, and Rothschild & Co acted as its exclusive financial advisor. Katharina Erbe (RSR / Season 5) and Patrick Biagosch (Biagosch Partner) acted as German legal counsel to Sanity Group, and McMillan LLP acted as Canadian legal counsel to Sanity Group. Stikeman Elliott LLP acted as Canadian legal counsel to BAT in connection with the Private Placement.

Additional Information Regarding the Acquisition, Private Placement and Loan Facilities

For additional details on the Acquisition and the Private Placement, see the Management Information Circular dated February 23, 2026, the Share Purchase Agreement for the Acquisition and the Subscription Agreement for the Private Placement, copies of which are available on the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. For additional details on the Loan Facilities, see the Loan Facilities, a copy of which is available on the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

About Organigram Global Inc.

Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverage markets. Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Tremblant Cannabis, Collective Project, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada).

Forward-Looking Information

This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking-statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release.

Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking statements reflect current beliefs of management of the Company with respect to future events and are based on information currently available to management including the reasonable assumptions, estimates, analysis and opinions of management of the Company considering their experience, perception of trends, current conditions and expected developments as well as other factors that management believes to be relevant as at the date such statements are made. Forward-looking statements involve significant known and unknown risks and uncertainties. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. There is a risk that some or all the expected benefits of the Acquisition may fail to materialize or may not occur within the time periods anticipated by the Company. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. Material risks and uncertainties that could cause actual results to differ from forward-looking statements include the inherent uncertainty associated with the financial and other projections (including projections relating to revenue, EBITDA, valuation and the calculation of the Earnout Consideration) as well as market changes arising from Canadian and European governmental actions or market conditions; the prompt and effective integration of Sanity into the Company not being possible; the ability to achieve the anticipated synergies and value-creation contemplated by the business combination not being possible or being delayed; the response of business partners and retention as a result of the business combination being negative; the impact of competitive responses to the business combination negatively impacting the Company; the ability to achieve the expected manufacturing and production output including flower supply not being possible; the risk that Sanity may not achieve the financial performance thresholds required for the payment of some or all of the Earnout Consideration; and the diversion of management time on business combination-related issues. Readers are cautioned that the foregoing list of factors is not exhaustive. Other risks and uncertainties not presently known to the Company or that the Company presently believe are not material could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of risks and other factors, see the factors and risks disclosed in the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

1 BAT (as defined below) is a shareholder in both Organigram and Sanity and has opted to take Shares in Organigram in lieu of cash for its interest in Sanity.
2 As determined using the average daily exchange rate published by the Bank of Canada on April 8, 2026 for converting Canadian dollars into Euros, being CAD$1.00 equals €0.6179.
3 BAT (as defined below) is a shareholder in both Organigram and Sanity and has opted to take Shares in Organigram in lieu of cash for its interest in Sanity.
4 As determined using the average daily exchange rate published by the Bank of Canada on April 8, 2026 for converting Canadian dollars into Euros, being CAD$1.00 equals €0.6179.

More News From Organigram Global Inc.

TORONTO--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), Canada's #1 cannabis company by market share1, is pleased to announce its results for the second quarter ended March 31, 2026 (“Q2 Fiscal 2026” or "Q2").

Q2 FISCAL 2026 HIGHLIGHTS

Gross Revenue: $93.3 million (-9% year-over-year). Net Revenue: $59.8 million (-9% year-over-year). International Revenue: $6.1 million (0% year-over-year). Adjusted EBITDA2: $0.9 million (-82% year-over-year). #1 Market Share in Canada: #1 in vapes, #1 in milled flower, #1 in concentrates, #2 in flower, #2 in pre-rolls, #3 in edibles, and #5 in beverages1. Sanity Group GmbH (“Sanity Group”) Acquisition: Subsequent to quarter-end, Organigram completed its acquisition of one of Germany's cannabis leaders, Sanity Group. Sanity Group is expected to generate approximately €25 million in average quarterly revenue over the next calendar year, and provide a scalable platform to accelerate Organigram's growth across key European markets. Australia Branded Sales: Launched 10 vape and gummy SKUs in Australia under the BOXHOT and Edison brands, with products expected to be available to over 4,000 pharmacies. Record Yield and Potency: Achieved a record quarterly harvest of over 32,000 kg (+56% year-over-year) and the highest average THC potency across the Company's flagship Moncton facility compared to any prior quarter due to continued enhancements to cultivation practices. Plant Science: Advancing Organigram's recent achievements in early-stage genetic marker identification, the Company launched two powdery mildew resistant cultivars and continues progress toward the identification of other genetic traits including, but not limited to aroma, color, terpene expression, and disease resistance. “Q2 reflected our underperformance in vapes and temporary challenges in infused pre-roll production, compounded by slower industry growth,” said James Yamanaka, CEO of Organigram. “We acted quickly to address these issues, and the operational changes and product enhancements we have implemented are already beginning to stabilize performance. Combined with continued improvements in yields and flower potency, and the contribution from Sanity Group beginning in Q3, we believe the business is positioned for stronger execution and improved performance in the second half of fiscal 2026.”

SECOND QUARTER FISCAL 2026 FINANCIAL OVERVIEW

Net revenue: Net Revenue decreased 9% to $59.8 million, from $65.6 million in the second quarter ended March 31, 2025 (“Q2 Fiscal 2025”), primarily driven by lower vape and infused pre-roll sales. Adjusted gross margin2: Adjusted gross margin was $18.4 million, or 31% of net revenue, compared to $21.9 million, or 33%, in Q2 Fiscal 2025. The year-over-year decrease in adjusted gross margin was primarily driven by changes in product mix, including a lower proportion of higher-margin product categories in the current period, and higher product returns. Selling, General & Administrative (“SG&A”) Expenses: SG&A increased to $23.6 million from $22.5 million in Q2 Fiscal 2025. The increase was primarily driven by higher investments in advertising, promotions, and trade marketing initiatives to support new product launches in the current period, and a credit loss due to a wholesale customer insolvency. As a proportion of net revenue, SG&A increased to 39%, compared to 34% in Q2 Fiscal 2025. Net Income or loss: Net loss was $0.9 million compared to net income of $42.5 million in Q2 Fiscal 2025. The decrease in net income in the current period was primarily attributable to lower fair value gains on derivative liabilities and preferred shares, as well as lower net revenue and gross margins compared to the prior year period. In addition, the current period results were negatively impacted by a $5.8 million impairment loss related to the Company's hemp-derived products business in the U.S. Adjusted EBITDA3: Adjusted EBITDA was $0.9 million compared to $4.9 million in adjusted EBITDA in Q2 Fiscal 2025. The decrease in Adjusted EBITDA compared to the comparative period is primarily due to lower recreational revenue while operating expenses remained flat as a proportion of net revenue, as well as the impact of higher returns provisions. Net Cash used in Operating Activities: Cash used in operating activities was $6.8 million, compared to $16.6 million in Q2 Fiscal 2025. The improvement was primarily attributable to lower investment in working capital, partially offset by lower adjusted EBITDA3. Free Cash Flow (“FCF”)3: FCF was an outflow of $7.0 million compared to $23.1 million in Q2 Fiscal 2025. The improvement was primarily attributable to lower investment in working capital and lower capital expenditures. “The financial impact of the competitive and operational challenges encountered earlier in Fiscal 2026 is believed to have been largely realized in the first half of the year, and we are now beginning to see performance stabilize,” said Greg Guyatt, Chief Financial Officer of Organigram. “While margins and profitability were pressured during the quarter, the underlying cost structure of the business continues to improve, supported by higher yields, operational efficiencies, and prior investments in automation. We expect to resume our trajectory of margin expansion and profitability improvement through the second half of the year, supported by expected growth in net revenue and international sales, alongside positive contributions from the consolidation of Sanity Group.”

INTERNATIONAL SALES

In Q2 Fiscal 2026, Organigram generated $6.1 million in international sales, consistent with the prior year period. Performance reflected an elevated proportion of product that did not meet international specifications during the quarter. Sequentially, international sales increased from $5.0 million in Q1 Fiscal 2026, driven by improving on-spec volumes. The Company expects continued progress in international on-spec volumes through the second half of Fiscal 2026. In April 2026 Organigram provided all additional documentation requested by the regulator to date to support the closure of all major findings identified in its EU-GMP certification audit. The Company expects an update on certification in the coming months. BALANCE SHEET & LIQUIDITY

As of March 31, 2026, the Company had total cash (including restricted cash and short-term investments) of $54.8 million. Subsequent to quarter end, the Company deployed the majority of its total cash position in consideration of the Sanity Group acquisition and secured $60 million in debt financing from ATB Financial of which $20 million was allocated to the Sanity Group acquisition. FISCAL 2026 GUIDANCE

The Company originally issued its Fiscal 2026 guidance in Q4 Fiscal 2025, prior to the acquisition of Sanity Group, which closed in April 2026. At that time, the Company contemplated net revenue exceeding $300 million, higher Adjusted Gross Margin4 and Adjusted EBITDA4 relative to Fiscal 2025, positive Free Cash Flow4, and capital expenditures of less than $10 million. Following the acquisition of Sanity Group, which closed in April 2026, the Company is updating its Fiscal 2026 guidance. Prior to the acquisition, shipments to Sanity Group were recognized as revenue upon shipment to Sanity Group; post-acquisition, shipments to Sanity Group are recognized as revenue upon ultimate sale by Sanity Group to third parties. The Company is now projecting net revenue to exceed $350 million in Fiscal 2026, with Adjusted EBITDA4 and Adjusted Gross Margin4 exceeding Fiscal 2025 performance, Free Cash Flow4 approximately break even, and capital expenditures of less than $10 million. Select Key Financial Metrics

(in $000s unless otherwise indicated)

Q2-2026

Q2-2025

% Change

Gross revenue

93,250

102,763

(9

)%

Excise taxes

(33,456

)

(37,163

)

(10

)%

Net revenue

59,794

65,600

(9

)%

Cost of sales

44,800

45,813

(2

)%

Gross margin before fair value changes to biological assets & inventories sold

14,994

19,787

(24

)%

Realized fair value on inventories sold and other inventory charges

(21,834

)

(14,192

)

54

%

Unrealized gain on changes in fair value of biological assets

23,247

12,823

81

%

Gross margin

16,407

18,418

(11

)%

Adjusted gross margin(1)

18,441

21,921

(16

)%

Adjusted gross margin %(1)

31

%

33

%

(2

)%

Selling (including marketing), general & administrative expenses

23,609

22,490

5

%

Net (loss) income

(921

)

42,456

nm

Adjusted EBITDA(1)

870

4,908

(82

)%

Net cash used in operating activities before working capital changes

(6,211

)

(1,607

)

286

%

Net cash used in operating activities after working capital changes

(6,760

)

(16,585

)

(59

)%

Note (1) Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non-International Financial Reporting Standards (“IFRS”) financial measures not defined by and do not have any standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers; please refer to “Non-IFRS Financial Measures” in this press release for more information.

Select Balance Sheet Metrics (in $000s)

MARCH 31, 2026

SEPTEMBER 30,

2025

% Change

Cash & short-term investments (including restricted cash)

54,754

84,420

(35

)%

Biological assets & inventories

135,158

123,954

9

%

Other current assets

60,174

76,523

(21

)%

Accounts payable & accrued liabilities

73,139

89,247

(18

)%

Working capital

161,341

158,738

2

%

Property, plant & equipment

120,838

122,977

(2

)%

Total assets

521,312

562,211

(7

)%

Total liabilities

149,500

213,081

(30

)%

Shareholders’ equity

371,812

349,130

6

%

RECONCILIATION

The following table reconciles the Company's adjusted EBITDA to net income (loss).

Adjusted EBITDA Reconciliation

(in $000s unless otherwise indicated)

Q2-2026

Q2-2025

Net (loss) income as reported

$

(921

)

$

42,456

Add/(deduct):

Investment income, net of financing costs

(312

)

(179

)

Income tax expense (recovery)

—

(106

)

Depreciation and amortization

5,033

4,839

Impairment of property, plant and equipment, intangible assets and goodwill

5,800

—

ERP implementation costs

120

628

Acquisition and transaction costs

4,356

974

Inventory and biological assets fair value and NRV adjustments

2,034

1,917

Incremental fair value component on inventories sold from acquisitions

—

1,586

Share-based compensation

728

938

Other (income) expenses(1)

(18,716

)

(50,728

)

Provision for non-recurring credit losses

821

—

Research and development expenditures, net of depreciation

1,927

2,583

Adjusted EBITDA

$

870

$

4,908

  Note (1): Other (income) expenses includes share of loss from investments in associates, (gain) loss on disposal of property, plant and equipment, change in fair value of derivative liabilities, preferred shares, contingent consideration and other financial assets, and certain other non-operating (income) expenses.

The following table reconciles the Company's adjusted gross margin to gross margin before fair value adjustments:

Adjusted Gross Margin Reconciliation

(in $000s unless otherwise indicated)

Q2-2026

Q2-2025

Net revenue

$

59,794

$

65,600

Cost of sales before adjustments

41,353

43,679

Adjusted gross margin

18,441

21,921

Adjusted gross margin %

31

%

33

%

Less:

Provisions and impairment of inventories and biological assets

3,420

548

Provisions to net realizable value

27

—

Gross margin before fair value adjustments

14,994

19,787

Gross margin % (before fair value adjustments)

25

%

30

%

Add:

Realized fair value on inventories sold and other inventory charges

(21,834

)

(14,192

)

Unrealized gain on changes in fair value of biological assets

23,247

12,823

Gross margin

16,407

18,418

Gross margin %

27

%

28

%

The following table reconciles the Company's Free Cash Flow to net cash and restricted cash provided by (used in) operating activities:

Free Cash Flow Reconciliation

(in $000s unless otherwise indicated)

Q2-2026

Q2-2025

Net cash and restricted cash provided by (used in) operating activities

$

(6,760

)

$

(16,585

)

Less:

Purchase of property, plant and equipment

(223

)

(6,508

)

Free Cash Flow

(6,983

)

(23,093

)

Second Quarter Fiscal 2026 Conference Call

The Company will host a conference call to discuss its results with details as follows:
Date: May 12, 2026
Time: 8:00 am Eastern Time

To register for the conference call, please use this link: https://events.q4inc.com/analyst/574618022?pwd=FVnom6fM

To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.

To access the webcast: https://events.q4inc.com/attendee/574618022

A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.

Non-IFRS Financial Measures

This news release refers to certain financial performance measures (including adjusted gross margin, adjusted gross margin %, adjusted EBITDA and free cash flow) that are not defined by and do not have a standardized meaning under IFRS as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adjusted EBITDA is a non-IFRS measure that the Company defines as net income (loss) excluding: financing costs, net of investment income; income tax expense (recovery); depreciation, amortization, impairment, normalization of depreciation add-back due to changes in depreciable assets resulting from impairment charges, (gain) loss on disposal of property, plant and equipment (per the consolidated statement of cash flows); share-based compensation (per the consolidated statement of cash flows); share of loss (gain) from investments in associates including impairment loss; change in fair value of contingent consideration; change in fair value of derivative liabilities, other financial assets and preferred shares; expenditures incurred in connection with research and development activities (net of depreciation); unrealized gain on changes in fair value of biological assets; realized fair value on inventories sold and other inventory charges; provisions and net realizable value adjustments related to inventory and biological assets; government subsidies, insurance recoveries and other non-operating expenses (income); legal provisions (recoveries); ERP implementation costs; transaction costs; share issuance costs; and provision for Canndoc expected credit losses. Adjusted EBITDA is intended to provide a proxy for the Company’s operating cash flow and derives expectations of future financial performance for the Company, and excludes adjustments that are not reflective of current operating results.

Adjusted gross margin is a non-IFRS measure that the Company defines as net revenue less cost of sales, before the effects of (i) unrealized gain on changes in fair value of biological assets; (ii) realized fair value on inventories sold and other inventory charges; (iii) realized fair value on inventories sold from acquisitions; (iv) provisions and impairment of inventories and biological assets; and (v) provisions to net realizable value. Adjusted gross margin % is calculated by dividing adjusted gross margin by net revenue. Management believes that these measures provide useful information to assess the profitability of our operations as they represent the normalized gross margin generated from operations and exclude the effects of non-cash fair value adjustments on inventories and biological assets, which are required by IFRS.

Free cash flow provided by (used in) operating activities is calculated as net cash provided by or used in operating activities less the purchase of property, plant and equipment. Free cash flow is a useful indicator of the Company's capacity to fund operations from internally generated cash flows, without the need for additional borrowings or use of existing cash reserves under normal operating conditions.

The most directly comparable measure to adjusted EBITDA, calculated in accordance with IFRS is net income (loss) and see "Reconciliation" section of this press release for a reconciliation to such measure. The most directly comparable measure to adjusted gross margin calculated in accordance with IFRS is gross margin before fair value adjustment and see "Reconciliation" section of this press release for a reconciliation to such measure. The most directly comparable measure to Free Cash Flow is net cash and restricted cash provided by (used in) operating activities, and see "Reconciliation" section of this press release for a reconciliation to such measure.

About Organigram Global Inc.

Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include Organigram Inc., a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverages markets.

Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED'ems, Monjour, Tremblant Cannabis, Trailblazer, Collective Project, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Québec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

Forward-Looking Information

This news release contains forward-looking information. Forward-looking information, in general, can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “could”, “would”, “might”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “continue”, “budget”, “schedule” or “forecast” or similar expressions suggesting future outcomes or events. They include, but are not limited to, statements with respect to expectations, projections or other characterizations of future events or circumstances, and the Company’s objectives, goals, strategies, beliefs, intentions, plans, estimates, forecasts, projections and outlook, including statements relating to the Company’s future performance, the Company’s positioning to capture additional market share and sales including international sales and the expected continued progress in international on-spec volumes, expectations for consumer demand, expected improvement to gross margins before fair value changes to biological assets and inventories, expectations regarding adjusted gross margins, adjusted EBITDA, Free Cash Flow and net revenue in Fiscal 2026 and beyond, expectations regarding cultivation capacity, the Company’s plans and objectives including around the availability and sources of any future financing, availability of cost efficiency opportunities, the ability of the Company to fulfill demand for its revitalized product portfolio with increased staffing, expectations relating to greater capacity to meet demand due to increased capacity at the Company’s facilities, expectations around lower product cultivation costs, the ability to achieve economies of scale and ramp up cultivation, expectations pertaining to the increase of automation and reduction in reliance on manual labour, expectations around the launch of higher margin dried flower strains, expectations around market and consumer demand and other patterns related to existing, new and planned product forms; expectations regarding the Company's integration of Sanity Group, including the expected revenue to be generated by Sanity Group over the next calendar year; expectations around FASTTM nanoemulsion technology; expectations regarding EU-GMP certification; timing for launch of new product forms, ability of those new product forms to capture sales and market share, estimates around incremental sales and more generally estimates or predictions of actions of customers, suppliers, partners, distributors, competitors or regulatory authorities; statements regarding the future of the Canadian and international cannabis markets and, statements regarding the Company’s future economic performance. These statements are not historical facts but instead represent management beliefs regarding future events, many of which, by their nature are inherently uncertain and beyond management control. Forward-looking information has been based on the Company’s current expectations about future events.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. These risks, uncertainties and factors include: general economic factors; geopolitical risks; international trade disputes sparked by tariffs and retaliatory tariffs or other non-tariff measures; changes to government laws, regulations or policies, including customs, tariffs, trade or environmental law, regulations or policies, or the enforcement thereof; receipt of regulatory approvals or consents and any conditions imposed upon same and the timing thereof; the Company's ability to meet regulatory criteria which may be subject to change; change in regulation including restrictions on sale of new product forms; change in stock exchange listing practices; the Company's ability to manage costs, timing and conditions to receiving any required testing results and certifications; results of final testing of new products; changes in governmental plans including those related to methods of distribution; timing and nature of sales and product returns; customer buying patterns and consumer preferences not being as predicted given this is a new and emerging market; material weaknesses identified in the Company’s internal controls over financial reporting; the completion of regulatory processes and registrations including for new products and forms; market demand and acceptance of new products and forms; unforeseen construction or delivery delays including of equipment and commissioning; increases to expected costs; competitive and industry conditions; change in customer buying patterns; and changes in crop yields. These and other risk factors are disclosed in the Company's documents filed from time to time under the Company’s issuer profile on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval+ (“SEDAR”) at www.sedarplus.ca and reports and other information filed with or furnished to the United States Securities and Exchange Commission (“SEC”) from time to time on the SEC’s Electronic Document Gathering and Retrieval System (“EDGAR”) at www.sec.gov, including the Company’s most recent management discussion and analysis ("MD&A") and annual information form. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release.

Certain forward-looking information included herein may also constitute a “financial outlook” within the meaning of applicable securities legislation. Financial outlook involves statements about the Company’s prospective financial performance and financial position that are based on and subject to the assumptions about future economic conditions and courses of action described above as well as management's expectations regarding a strong innovation pipeline, increasing international sales, high cannabis quality and higher potency, commercialization of FAST nano emulsion technology in ingestible formats, and receipt of the EU-GMP certification. Such assumptions are based on management's assessment of the relevant information currently available and any financial outlook included herein is provided for the purpose of helping readers understand management's current expectations and plans for the future as of the date hereof. The actual results of the Company’s operations may vary from the amounts set forth in any financial outlook and such variances may be material. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above and other factors may cause actual results to differ materially from any financial outlook.

The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward looking information is subject to risks and uncertainties that are addressed in the “Risk Factors” section of the MD&A dated May 12, 2026 and there can be no assurance whatsoever that these events will occur.

Third-Party Information

This news release contains information concerning our industry and the markets in which we operate, including our market position and market share, which is based on information from independent third-party sources. Although we believe these sources to be generally reliable, market and industry data is inherently imprecise, subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any statistical survey or data collection process. We have not independently verified any third-party information contained herein.

More News From Organigram Global Inc.

OrganiGram (OGI - Free Report) came out with a quarterly loss of $0.01 per share in line with the Zacks Consensus Estimate. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -100.00%. A quarter ago, it was expected that this cannabis producer would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

OrganiGram, which belongs to the Zacks Medical - Products industry, posted revenues of $43.59 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 16.26%. This compares to year-ago revenues of $45.69 million. The company has topped consensus revenue estimates two 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.

OrganiGram shares have lost about 22% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for OrganiGram?While OrganiGram has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for OrganiGram 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 $0.01 on $58.38 million in revenues for the coming quarter and $0.10 on $235.25 million 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, Medical - Products is currently in the bottom 37% 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.

Medtronic (MDT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.

This medical device company is expected to post quarterly earnings of $1.58 per share in its upcoming report, which represents a year-over-year change of -2.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Medtronic's revenues are expected to be $9.66 billion, up 8.2% from the year-ago quarter.

Organigram Global Inc. (OGI:CA) Q2 2026 Earnings Call Transcript

-

KINSTON, N.C.--(BUSINESS WIRE)--flyExclusive (NYSE American: FLYX), a vertically integrated private aviation company, today announced the completion of a Starlink installation on a Challenger aircraft under its authorized Starlink dealership agreement.

Leveraging its deep experience performing complex avionics and connectivity upgrades, flyExclusive MRO completed the Starlink installation in record time. Low-profile and lightweight in design, Starlink Aero Terminals are designed to be installed in a just a few hours, significantly reducing the time aircraft are out of service. flyExclusive MRO is now targeting a five-to-seven day cadence as additional aircraft move through the pipeline. flyExclusive MRO has performed numerous in-flight connectivity and avionics system upgrades across multiple aircraft platforms over the past several years. Management believes that experience enables the team to integrate Starlink efficiently while maintaining certification standards and minimizing aircraft downtime.

Starlink is the world's most advanced satellite constellation using a low Earth orbit to deliver broadband internet capable of supporting in-flight streaming, online gaming, video calls, and more. Unlike legacy systems that rely on ground towers or distant geostationary satellites, Starlink’s laser-mesh network delivers download speeds of 135-310 Mbps and latency less than 99 ms.

As demand for premium connectivity continues to increase, management believes reliable onboard internet has become a critical factor in aircraft selection and customer retention.

“Our team has extensive experience integrating advanced avionics and connectivity systems,” said Jim Segrave, Founder, Chairman, and CEO of flyExclusive. “Applying that expertise to Starlink allows us to execute quickly while expanding the commercial scope of our MRO business.”

In addition to deploying Starlink across its own fleet, flyExclusive MRO has secured a multi-aircraft customer installation agreement under its authorized dealership arrangement. Management views third-party Starlink installations as a meaningful step in growing maintenance and avionics into a standalone revenue vertical, further diversifying the company’s income streams beyond charter and fractional operations.

flyExclusive MRO operates a fully integrated maintenance, avionics, paint, and interior refurbishment platform in Kinston, North Carolina. While historically supporting the company’s fleet, the MRO division has increasingly expanded services to third-party operators. Management believes this positions the company to generate incremental, high-margin revenue opportunities that are not directly tied to flight activity levels.

The company expects continued fleet-wide deployment of Starlink while actively pursuing additional installation opportunities under its dealership program.

For more information about flyExclusive and its services, visit www.flyexclusive.com.

About flyExclusive

flyExclusive (NYSE American: FLYX) is a vertically integrated, FAA-certificated private aviation company providing charter, Jet Club membership, and fractional ownership services worldwide. The company operates one of the largest private jet fleets in the U.S., with full operational control over maintenance, refurbishment, and avionics through its in-house MRO facilities in Kinston, North Carolina. Learn more at www.flyexclusive.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: demand for fractional ownership shares; the pace of additional aircraft acquisitions; the Company's ability to attract and retain fractional customers; potential volatility of the Company's stock price; the ability of the Company to maintain compliance with NYSE American continued listing standards and maintain the listing of the Company's securities on a national securities exchange; the ability of the Company to timely file its required annual and quarterly reports with the SEC; the ability of the Company to comply with covenants under and repay its debt; the potential dilution of stock ownership by our capital raising efforts; the outcome of any legal proceedings; changes in the competitive and highly regulated industries in which flyExclusive operates; and the risk of downturns due to general economic or political uncertainties in the highly competitive aviation industry.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of flyExclusive's Annual Report on Form 10-K for the year ended December 31, 2025 and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectations.

More News From flyExclusive, Inc.

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ORLANDO, FL / ACCESS Newswire / May 7, 2026 / Laser Photonics Corporation (NASDAQ:LASE) ("Laser Photonics" or the "Company"), a global leader in laser systems for industrial and defense applications, together with Fonon Technologies, an affiliated company within the LASE Group of Companies, today announced the successful pilot deployment of its DefenseTech laser cleaning within a U.S. Army depot to streamline surface preparation workflows for missile systems.

The DefenseTech Missile Laser Rust Inhibitor (MLRI) line features mobile laser-powered units specifically designed for manual surface preparation across all military branches. These systems eliminate the need for hazardous chemicals and abrasive blasting, offering streamlined maintenance processes while extending equipment lifespans. The technology is engineered to strip corrosion, anodization, and organic contaminants, returning surfaces to their pristine condition.

During operational testing at Anniston Army Depot, the DefenseTech MLRI systems demonstrated a transformative impact on maintenance workflows. The technology significantly reduced operator fatigue, noise levels, and airborne dust while drastically lowering the ecological footprint of the facility. Most notably, these improvements contributed to a measurable reduction in maintenance cycle times, accelerating asset readiness.

Matt Kime, VP of Government Sales at Fonon Technologies, commented, "By modernizing military asset maintenance with our application-specific MLRI systems, we not only advocate for sustainability but also solidify our position as the sole provider of this cutting-edge technology within the industry. Our technology's dual-axis precision supports military readiness and embodies the future of optimized maintenance processes that we believe paves the way with unrivaled solutions that competitors cannot match."

"We believe that the successful validation of our DefenseTech MLRI systems at a U.S. Army depot is a significant milestone that underscores the real-world impact of our laser technology in defense maintenance environments," said Wayne Tupuola, Chief Executive Officer of Laser Photonics. "This achievement demonstrates our ability to deliver solutions that not only meet the rigorous demands of military operations but also align with the Department of Defense's sustainability objectives. As we continue to expand our defense portfolio through the LASE Group of Companies, we remain focused on driving innovation that enhances readiness and reduces the total cost of ownership for our military customers."

DefenseTech MLRI Key Features

Field-ready portability - designed for on-site maintenance

Dual axis precision - from detail work to rapid decontamination

Sustainable operations - no chemical waste or consumables

Substrate integrity intact - removes contaminants without surface wear

Multi-contaminant removal - effectively strips rust and oxidized coatings

About Fonon Technologies

Fonon Technologies is a diversified industrial laser equipment provider serving government organizations, all branches of the U.S. military, and defense contractors. Led by a team with deep expertise in military and naval operations, the company tackles the challenges of defense maintenance, repair, overhaul and protection with advanced laser solutions. For more information, visit www.fonon.us.

About Laser Photonics Corporation

Laser Photonics Corporation (NASDAQ:LASE) is a global leader in laser systems for industrial and defense applications. The Company develops and manufactures advanced laser technologies used in cleaning, surface preparation, and precision material processing across demanding operating environments. Laser Photonics serves a broad range of end markets, including defense and government, aerospace, energy, maritime, automotive, and advanced manufacturing. Through a combination of internal development, strategic acquisitions, and partnerships, the Company continues to expand its product portfolio and address new applications where performance, efficiency, and environmental considerations are critical. For more information, please visit laserphotonics.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations as of the date of this press release and involve risks and uncertainties that may cause results to differ materially from those indicated by these forward-looking statements. These forward-looking statements include, among other things, statements regarding our preliminary internal financial information, which is unaudited, subject to completion of our financial closing and audit procedures and may differ materially from our actual results. These risks and uncertainties include, but are not limited to, the impacts of federal government funding disruptions and shutdowns on our contracts, operations, capital-raising activities, and strategic initiatives. We encourage readers to review the "Risk Factors" in our Registration Statement and other filings with the Securities and Exchange Commission for a comprehensive understanding. Laser Photonics Corp. undertakes no obligation to revise or update any forward-looking statements, except as required by applicable laws or regulations, to reflect events or circumstances after the date of this press release.

Investor Relations Contact
Lucas A. Zimmerman & Ian Scargill
MZ Group - MZ North America
(262) 357-2918
[email protected]
www.mzgroup.us

SOURCE: Laser Photonics Corporation

Why Lam Research Still Looks Like a Buy After a 300% RallyLam Research NASDAQ: LRCX President and CEO Tim Archer said AI demand is reshaping the semiconductor equipment market across logic, memory, storage and packaging, creating what Bernstein analyst Stacy Rasgon described as a “renaissance” for wafer fab equipment.

Speaking at a Bernstein conference, Archer said Lam now expects wafer fab equipment, or WFE, spending of about $140 billion “with a bias to the upside”. He said AI has driven demand for higher performance across nearly every device category, including leading-edge compute, HBM, NAND storage and advanced packaging.

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The Nasdaq's Historic Rally Doesn't Mean the Risk Is Gone“In AI right now, more is more,” Archer said. “You want to have more leading-edge compute power at the foundry logic side. You need more storage. You need more memory, higher bandwidth, lower latency.”

AI Demand Is Broadening Across End Markets Archer said Lam has greater visibility into technology roadmaps than capacity forecasts, noting the company is already working with customers on device architectures and materials that may not ramp into manufacturing until the early 2030s. However, he said customer demand continues to accelerate faster than expected.

The Semiconductor Sector Is Hitting All-Time Highs: 2 Stocks Leading the Charge“Every time we come to that next checkpoint, there’s more than we thought there was,” Archer said.

He also said clean room availability remains a major constraint on the industry’s ability to ship more equipment. Once a fab begins construction, Archer said Lam can see demand roughly two years out, but building advanced semiconductor fabs “just takes time.”

NAND Upgrades Pulled Forward Archer pushed back on the idea that Lam remains primarily a NAND-driven company, noting that five years ago about 60% of Lam’s business was memory, while last year about 60% was foundry logic. He said that shift reflected a deliberate strategy to diversify while maintaining Lam’s leadership in memory.

Still, Archer said NAND remains a key opportunity. Lam previously discussed a multiyear upgrade cycle in which customers would move installed tools from the 100-plus-layer level to 200-plus-layer devices. On its most recent earnings call, he said Lam indicated the entire $40 billion upgrade spending opportunity would likely be complete by the end of 2027.

Archer said that upgrade cycle has been pulled forward by stronger-than-expected demand for NAND in AI-related applications, including enterprise SSDs and new data storage projects. He said greenfield NAND fabs are beginning to be announced, but those are more likely to affect Lam in 2028 and beyond.

“Upgrades are great for us,” Archer said, adding that greenfield projects also benefit Lam by expanding the installed base for future upgrade cycles.

Advanced Packaging, DRAM and Logic Opportunities Archer said advanced packaging is a fast-growing business for Lam, with revenue expected to grow more than 50% this year from the prior year. He sized the business at around $2 billion.

Lam’s role in advanced packaging includes copper plating, through-silicon via etching and dielectric gap fill processes, Archer said. He said advanced packaging has become increasingly important as the industry seeks ways to improve performance beyond traditional chip scaling.

In DRAM, Archer said Lam has benefited as shrinking dimensions make etch and deposition tools more critical. He cited recent wins in conductor etch, adoption of Lam’s dry resist technology and strength in HBM-related through-silicon via copper plating.

In foundry logic, Archer said the shift toward gate-all-around and other three-dimensional architectures has improved the fit with Lam’s portfolio. He said demand has grown for products such as selective etch, atomic layer deposition and conductor etch as device structures become more complex.

Margins Improve as Manufacturing Investments Pay Off Archer said Lam’s improved gross margin profile reflects operational improvements, higher-value products and prior manufacturing investments. Rasgon noted that Lam’s gross margins now “start with a five” rather than a four.

Archer said some of the improvement came from Lam’s manufacturing expansion, including investments made after the COVID-era supply constraints. The company plans to open a second facility in Malaysia later this year, approximately equal in size to its first facility there, and it is expected to be in use in the second half of the year.

“A lot of it has been self-help,” Archer said. “It was with this eye that we were going to become a much bigger company.”

Archer said tariffs were already contemplated in the company’s reported numbers and outlook.

China, Services and Dry Resist On China, Archer said Lam complies with all regulatory requirements and does not do business where it is not permitted. He said local equipment suppliers have filled gaps in areas where Lam cannot compete, but Lam still delivers value in lagging-edge nodes where sales are allowed.

Archer said China is “kind of flattish to maybe roughly up a little bit this year,” after several years of growth. He said the region remains important but is no longer the central story for Lam, with the company’s focus now shifting toward AI-driven growth in deposition and etch intensity at the leading edge.

Archer also highlighted Lam’s services business, which he said represents about one-third of the company. He said Lam has about 100,000 chambers in operation, with tools often running for multiple decades.

Lam is investing in “Equipment Intelligence” and cobots, including a product called Dextro, to automate physical maintenance tasks and improve tool performance. Archer said cobot-driven maintenance is already running in production at several customer fabs and can improve first-time-right maintenance and wafer uniformity.

Archer also discussed Lam’s dry resist technology, which replaces wet resist for certain critical lithography applications. He said Lam’s Aether suite includes an underlayer, the resist itself and a dry develop process, and is now ramping in production at two memory makers. Lam previously targeted about $1.5 billion of dry resist revenue over a five-year period, backend weighted, Archer said.

Asked why investors should buy Lam’s stock, Archer pointed to multiple waves of AI demand, rising etch and deposition intensity, and Lam’s share gains in WFE. He said the industry’s move toward 3D architectures across logic, NAND, DRAM and other areas aligns with Lam’s core strengths.

“Etch and deposition is synonymous with 3D,” Archer said. “We see etch and deposition intensity as its share of total WFE spending continuing to rise from now as far as we can see these roadmaps.”

About Lam Research NASDAQ: LRCXLam Research Corporation NASDAQ: LRCX is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam's product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.

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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The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.

Focus List Spotlight: Lam Research (LRCX - Free Report) Fremont, CA-based Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. It serves the related markets that rely on semiconductor processes and require production-proven manufacturing capabilities, such as complementary metal-oxide-semiconductor image sensors and micro-electromechanical systems (MEMS).

Since being added to the Focus List on December 5, 2016 at $10.05 per share, shares of LRCX have increased 3055.42% to $317.12. The stock is currently a #2 (Buy) on the Zacks Rank.

13 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.39 to $5.67. LRCX also boasts an average earnings surprise of 7.9%.

Additionally, LRCX's earnings are expected to grow 37% for the current fiscal year.

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Key Takeaways Lam Research generated $810M in free cash flow in Q3'26 and repurchased $1.16B of shares.Lam Research Q3 revenues hit a record $5.84B, up 24% y/y, while non-GAAP EPS rose 41.3% to $1.47.LRCX still has $4.75B remaining under the current buyback authorization as it plans to return 85% of FCF. Lam Research Corporation’s (LRCX - Free Report) strong cash generation is providing ample support for its aggressive share repurchase strategy, and the trend could continue as artificial intelligence (AI)-driven semiconductor demand boosts earnings and profitability. The company has consistently returned excess cash to shareholders through share buybacks and dividends while still investing for future growth.

In the third quarter of fiscal 2026, Lam Research generated $1.14 billion in operating cash flow and approximately $810 million in free cash flow. At the same time, the company returned significant capital to shareholders through $1.16 billion of share repurchases and $326 million in dividends. During the first three quarters of fiscal 2026, LRCX generated operating cash flow of $4.40 billion and free cash flow of $3.62 billion while returning $4.55 billion to shareholders through share repurchases and dividend payments.

Lam Research’s earnings strength is helping fund these returns. Revenues reached a record $5.84 billion in the third quarter, up 24% year over year, while non-GAAP earnings per share climbed 41.3% to $1.47. Non-GAAP gross and operating margins improved 90 basis points and 220 basis points, respectively, reflecting a favorable product mix and operational efficiency. LRCX ended the third quarter with $4.75 billion in cash and cash equivalents, providing financial flexibility, even after substantial shareholder returns.

AI remains a major growth driver. Lam Research expects wafer fabrication equipment spending to reach about $140 billion in calendar year 2026, with a possibility of further upside. The company also expects advanced packaging revenues to grow more than 50% this year as AI server deployments accelerate.

With AI fueling revenue growth, gross margin approaching 50%, and cash flows remaining healthy, Lam Research appears well-positioned to continue reducing its share count and enhancing shareholder value through buybacks in the coming quarters. During third-quarter fiscal 2026 results, management reiterated plans to return at least 85% of free cash flow to shareholders over time. At the end of the quarter, it had $4.3 billion remaining under its ongoing share repurchase authorization.

Checking Lam Research’s Rival Shareholder Return PolicyTwo major competitors that closely mirror Lam Research’s capital return strategy are Applied Materials, Inc. (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) . Both companies are benefiting from AI-driven semiconductor spending while generating strong cash flows that support share repurchases.

Applied Materials continues to produce substantial free cash flow through its semiconductor equipment business. The company has regularly returned billions of dollars to shareholders through buybacks and dividends while maintaining investments in advanced packaging, DRAM and foundry technologies.

In the first half of fiscal 2026, Applied Materials generated $2.53 billion in operating cash flow and $1.25 billion in free cash flow while returning $1.47 billion to shareholders through share buybacks and dividend payments. Its broad exposure to AI infrastructure and leading-edge chip manufacturing helps support strong profitability and cash generation.

KLA Corporation is another strong cash flow producer due to its high-margin process control and inspection business. The company consistently converts a large portion of earnings into free cash flow and has an established history of reducing share count through repurchases.

In the trailing 12 months, KLA Corporation generated operating and free cash flows of $4.40 billion and $4.01 billion, respectively. During the same time frame, it returned $3.15 billion to shareholders through share repurchases and dividend payments. Growing demand for advanced process control tools in AI chips, HBM memory and leading-edge manufacturing is supporting its long-term cash-generation profile.

LRCX’s Share Price Performance, Valuation and EstimatesShares of Lam Research have surged 95.3% year to date compared with the Zacks Electronics – Semiconductors industry’s rise of 60%.

Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Lam Research trades at a forward price-to-earnings ratio of 44.09, significantly higher than the industry’s average of 38.83.

Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lam Research’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 37% and 36.4%, respectively. Estimates for fiscal 2026 have been revised downward over the past 30 days, while estimates for fiscal 2027 have been revised upward over the same time frame.

Image Source: Zacks Investment Research

Lam Research currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Lam Research (LRCX - Free Report) closed at $321.80 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's 1.62% loss on the day. At the same time, the Dow lost 1.87%, and the tech-heavy Nasdaq lost 1.98%.

Shares of the semiconductor equipment maker witnessed a gain of 13.11% 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%.

Analysts and investors alike will be keeping a close eye on the performance of Lam Research in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.65, indicating a 24.06% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.64 billion, up 28.42% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.67 per share and revenue of $23.03 billion, indicating changes of +36.96% and +24.95%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Lam Research. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Lam Research is currently a Zacks Rank #2 (Buy).

With respect to valuation, Lam Research is currently being traded at a Forward P/E ratio of 57.67. This indicates a premium in contrast to its industry's Forward P/E of 48.66.

It is also worth noting that LRCX currently has a PEG ratio of 2.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LRCX's industry had an average PEG ratio of 1.94 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Key Takeaways Lam Research shares have jumped 86.8% YTD, beating the semiconductor industry's 46.3% gain.AI/HPC drives demand for Lam Research etch and deposition tools used in HBM and advanced packaging.LRCX Q3 revenues rose 24% to $5.84B, non-GAAP EPS jumped 41% to $1.47, and operating margin hit 35%. Lam Research Corporation (LRCX - Free Report) has been one of the biggest winners in the semiconductor space this year. The company has been benefiting from the explosive growth of artificial intelligence (AI) and high-performance computing (HPC), which are driving unprecedented demand for its wafer fabrication equipment and services used for chip manufacturing. Shares of Lam Research have surged 86.8% year to date, significantly outperforming the broader Zacks Electronics - Semiconductor industry's gain of 46.3%.

The stock has also delivered stronger returns than several industry peers, including Amkor Technology, Inc. (AMKR - Free Report) , Cirrus Logic, Inc. (CRUS - Free Report) and Broadcom Inc. (AVGO - Free Report) . Year to date, shares of Amkor Technology, Cirrus Logic and Broadcom have soared 75.5%, 33.3% and 7.4%, respectively.

While such a massive rally may make some investors question whether the stock has run too far, Lam Research's strong fundamentals suggest there could still be room for upside. The company remains one of the clearest beneficiaries of the AI infrastructure boom, and demand trends continue to work heavily in its favor.

Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research

AI-Led Demand Boosts LRCX’s Long-Term ProspectsLam Research is capitalizing on AI trends. It builds the tools chipmakers need to manufacture next-generation semiconductors, including high-bandwidth memory (HBM) and chips used in advanced packaging. These technologies are vital for powering AI and cloud data centers.

Lam Research’s products are not only critical but also innovative. For example, its ALTUS ALD tool uses molybdenum to improve speed and efficiency in chip production. Another product, the Aether platform, helps chipmakers achieve higher performance and density. These are essential capabilities as demand for advanced AI chips continues to increase.

In 2025, Lam Research’s revenues from advanced packaging grew significantly, and management anticipates more than 50% year-over-year growth for 2026. The industry’s migration to backside power distribution and dry-resist processing presents growth opportunities for LRCX’s cutting-edge fabrication solutions.

These trends are aiding Lam Research’s financial performance. The company has demonstrated consistent execution, maintaining quarterly revenues of more than $5 billion for the past four consecutive quarters, reflecting solid demand from leading chipmakers such as Taiwan Semiconductor Manufacturing and Samsung.

Lam Research’s Resilient Financial ResultsDespite ongoing macroeconomic challenges, geopolitical issues, and trade and tariff wars, LRCX’s financials remain impressive. In the company’s last reported financial results for the third quarter of fiscal 2026, total revenues rose 24% year over year to $5.84 billion and beat the Zacks Consensus Estimate by 1.3%, primarily driven by continued demand across the Systems and Customer Support Business Group segments.

Lam Research reported third-quarter non-GAAP earnings of $1.47 per share, which topped the consensus mark by 8.1%. The bottom line also increased 41.3% on a year-over-year basis.

Expanding its manufacturing operations in Asia has helped the company lower costs and improve margins. In the third quarter, Lam Research’s non-GAAP operating margin rose to 35%, up 220 basis points from the year-ago quarter, which is impressive, considering the challenging macroeconomic environment.

This strong financial performance reinforces Lam Research’s resilience in navigating an evolving semiconductor cycle. As demand grows for advanced nodes, LRCX’s specialized technology in etch and deposition tools for high-aspect-ratio structures positions it well to capitalize on this trend. The company’s third-quarter results also highlight its effective cost management, which has enabled sustained profitability.

With AI-driven investments accelerating, Lam Research’s leading position in etch and deposition makes it a key beneficiary of the ongoing semiconductor spending cycle. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues implies a year-over-year increase of 25% and 30.3%, respectively. The consensus mark for fiscal 2026 and 2027 earnings per share indicates growth of 37% and 36.5%, respectively.

Steady Growth Outlook Justifies LRCX’s Premium ValuationValuation-wise, Lam Research is overvalued, as suggested by the Zacks Value Score of F.

In terms of forward 12-month Price/Earnings (P/E), LRCX shares are trading at 42.91X, higher than the sector’s 34.83X. However, we believe that the company’s steady earnings growth and rising AI-linked demand justify the premium valuation.

Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

Compared with major semiconductor equipment providers, LRCX trades at a higher P/E multiple than Amkor Technology, Broadcom and Cirrus Logic. At present, Amkor Technology, Broadcom and Cirrus Logic have forward 12-month P/E multiples of 33.70, 25.14 and 17.07, respectively.

Conclusion: Buy LRCX Stock for NowLam Research’s strong technological foundation and strategic focus on high-growth markets like AI and HPC make it a compelling long-term investment. The company’s innovation and operational efficiency provide a solid foundation for future growth. Considering these factors, accumulating LRCX stock appears to be the most prudent strategy for investors.

Currently, Lam Research carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CSX Q1 EPS beat estimates at 43 cents, rising 26% YoY, while revenue missed despite 2% growth.CSX saw gains from pricing, intermodal growth, and lower costs, lifting operating margin to 36%.CSX raised its 2026 outlook with higher revenue growth, margin expansion, and over 60% free cash flow growth. CSX Corporation (CSX - Free Report) reported mixed first-quarter 2026 results wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.

Quarterly earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis. Results were aided by revenue growth and a reduction in operating expenses.

Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year over year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenue and increased fuel surcharge revenue. These were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.

First-quarter operating income increased 20% year over year to $1.25 billion. Total expenses decreased 6% year over year. CSX’s operating margin during the March quarter rose to 36% from 30.4% in the year-ago quarter. Total volumes inched up 3% year over year, boosted by intermodal volumes.

Q1 Segmental Performance of CSXMerchandise revenues grew 2% year over year to $2.18 billion (matched with our estimate figure) in the reported quarter. Merchandise volumes rose marginally to $631 million. Segmental revenue per unit inched up 2% year over year.

Intermodal revenues increased 5% year over year to $518 million (below our estimate of $551.5 million). Segmental volumes increased 6% while revenue per unit was down 1% year over year.

Coal revenues slid 1% year over year to $458 million in the reported quarter. Coal volumes inched down 1% year over year, while segmental revenue per unit fell marginally.

Trucking revenues totaled $202 million (above our estimate of $183.4 million), flat year over year. Other revenues rose 1% year over year to $116 million in the reported quarter.

CSX’s LiquidityCSX exited the first quarter of 2026 with cash and cash equivalents of $964 million compared with $670 million at the end of the prior quarter. Long-term debt of $18.2 billion was flat sequentially.

CSX's 2026 Guidance For 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth.

Operating margin expansion is now anticipated toward the higher end of the 200-300 basis point range, while previously it was expected to be around 200-300 basis points.

Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%.

CSX continues to expect capital expenditures to be below $2.4 billion.

Currently, CSX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q1 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis. 

United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.

UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.

Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.

Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.

J.B. Hunt Transport Services (JBHT - Free Report)  posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.

Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.

JACKSONVILLE, Fla., May 04, 2026 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) today launched a public resource at www.csxstayingontrack.com to support shippers, communities, and other stakeholders interested in engaging with the Surface Transportation Board’s review of the refiled merger application between Union Pacific (UP) and Norfolk Southern (NS). The site provides information on the STB review process, links to the public docket, guidance on filing comments on the record with the STB, and options for providing feedback to the Department of Justice (DOJ) on a confidential basis.

Today’s U.S. Class I freight rail system is competitively balanced, consisting of six carriers: two western railroads, two eastern railroads, and two Canadian carriers providing north-south service. This industry structure has supported routing options and competitive choices for rail shippers. The proposed combination would create a single transcontinental carrier alongside four regional carriers, resulting in an industry imbalance that would reduce viable options for shippers. These are among the matters the STB will consider to determine whether the proposed transaction is in the public interest and enhances competition. 

“Our customers depend on a competitive and healthy freight rail system. Customers and the communities we serve have a stake in this review, and we are here to help them be heard,” said Steve Angel, Chief Executive Officer of CSX.

About CSX

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook and follow us on X, formerly known as Twitter.

Contact:

Matthew Korn, CFA, Investor Relations
904-366-4515

Austin Staton, Corporate Communications
855-955-6397

On May 08, 2026, we present a DCF analysis for CSX Corp CSX , a company that has shown a remarkable price performance with a year-to-date increase of 23.1% and a one-year gain of 55.9%. However, despite this strong performance, our analysis indicates that CSX may be overvalued based on intrinsic value calculations. Here are some key points:

DCF Earnings-based intrinsic value of $30.68 vs current price of $44.46 (margin of safety: -44.9%) DCF FCF-based intrinsic value of $26.64 vs current price (second opinion indicates a larger margin of safety: -66.9%) GF Score™ of 86/100 suggests a strong reliability of the DCF inputs What Is CSX Worth? DCF Earnings-Based Model To determine the intrinsic value of CSX, we utilized a two-stage DCF model. The first stage accounts for high growth in earnings over the next 10 years, while the second stage reflects a more stable growth rate thereafter. Below are the assumptions used in our analysis:

Parameter Value Current EPS (TTM, excl. non-recurring) $1.70 10-Year Growth Rate 11.8% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that EPS will grow at a rate of 11.8% per year for the next 10 years, which is then discounted at a rate of 11%. The value derived from this growth stage is $17.69 per share. In the second stage, we assume a terminal growth rate of 4% for the following 10 years, which results in a terminal stage value of $12.99 per share. The summary of our calculations is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 11.8%, discounted at 11% $17.69 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $12.99 Intrinsic Value Growth + Terminal $30.68 With the current price at $44.46, the intrinsic value of $30.68 indicates that CSX is modestly overvalued, with a margin of safety of -44.9%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the CSX DCF Calculator.

What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also evaluated CSX using a Free Cash Flow (FCF) DCF model, which yielded an intrinsic value of $26.64 per share. This FCF-based valuation is lower than the earnings-based valuation, indicating a larger margin of safety of -66.9%. Both models suggest that CSX is modestly overvalued, reinforcing the findings from our earnings-based analysis.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for CSX is calculated at $35.09, providing a third perspective on the valuation. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that CSX is overvalued, suggesting caution for potential investors. For more information, visit the GF Value™ page.

What Does CSX'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 (backtested from 2006 to 2021). Below is a summary of CSX's GF Score™:

Metric Rating GF Score™ 86/100 Financial Strength 4/10 Profitability 9/10 Growth 7/10 Valuation 5/10 Momentum 10/10 CSX has a predictability rank of 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For more details, visit the CSX stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as CSX, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in our analysis is a simplifying assumption that may not accurately reflect future conditions.

What This Means for Investors In summary, our analysis of CSX Corp using the DCF earnings model, DCF FCF model, and GF Value™ indicates that the stock is overvalued. The intrinsic values derived from both DCF models are significantly lower than the current market price, suggesting that investors should exercise caution. For the full DCF analysis, visit the CSX 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 CSX's intrinsic value based on DCF?

[Answer: earnings-based $30.68, FCF-based $26.64]

Is CSX overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for CSX?

[Answer using predictability rank 1/5]

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].

JACKSONVILLE, Fla., May 12, 2026 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) announced that the Company’s Board of Directors approved a $0.14 per share quarterly dividend on the Company’s common stock. The dividend is payable June 15, 2026, to shareholders of record at the close of business May 29, 2026.

About CSX and its Disclosures

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. 

This announcement, as well as additional financial information, is available on the Company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on Facebook and on X, formerly known as Twitter. The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.

Contact:
Matthew Korn, CFA, Investor Relations and Corporate Communications
904-366-4515

Austin Staton, Corporate Communications
855-955-6397

The Zacks Transportation - Rail industry faces challenges, ranging from tariff-induced economic uncertainties, inflationary pressures and resultant high interest rates to concerns pertaining to supply-chain disruptions. High fuel costs, due to the ongoing conflict in the Middle East, have been hurting the bottom-line growth of industry players.

Despite the challenges surrounding the industry, Union Pacific Corporation (UNP - Free Report) , CSX Corporation (CSX - Free Report) and Canadian Pacific Kansas City Limited (CP - Free Report) appear better placed to tide over the challenges. Declining fuel costs represent a tailwind as far as bottom-line growth is concerned.

Industry Description The Zacks Transportation - Rail industry includes railroad operators transporting freight (such as agricultural products, industrial products, coal, intermodal, automotive, consumer products, metals and minerals), primarily across North America. These companies focus on providing logistics and supply-chain expertise services. While freight constitutes a significant chunk of revenues, some of these companies also derive a small portion of their top line from other rail-related services, including third-party railcar and locomotive repairs, routine land sales and container sales, among others. A few companies offer services to multiple production and distribution facilities. Besides locomotives, some of these companies own equipment of leased locomotives, railcars, etc.

Factors Deciding the Industry's Outlook Strong Financial Returns for Shareholders:With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile through dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and confidence in the business. Among the Transportation – Railroad industry players, CSX's board of directorsapproved a dividend hike of 7.6%, thereby raising its quarterly cash dividend to 14 cents per share (56 cents annualized) from 13 cents (52 cents annualized) in February 2026.

Surge in Fuel Costs: A Bane: The ongoing conflict in the Middle East has resulted in a sharp jump in oil prices. Notably, oil prices surged almost 75% from the beginning of 2026 to date. As fuel expenses represent a key input cost for any transportation player, a rise in oil prices does not bode well for the bottom-line growth of railroad stocks.

Economic Uncertainty Remains: Tariff tensions have led to escalated trade woes across the globe. These tariff-induced economic uncertainties do not bode well for industry participants. With inflation remaining a concern, risks associated with an economic slowdown and geopolitical tensions dampen the prospects of stocks belonging to this industrial cohort. Sluggish economic growth and inflationary woes are likely to make markets more volatile in the coming days. Ongoing economic uncertainty does not bode well for industry players. Tariff-induced economic uncertainties and trade tensions may create uncertainty for investors interested in the industry. 

Zacks Industry Rank Indicates Gloomy Prospects The Zacks Transportation Railroad industry, housed within the broader Zacks Transportation sector, currently carries a Zacks Industry Rank #198. This rank places it in the bottom 19% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

The sell-side analysts covering the companies in this industry have been decreasing their estimates. Over the past year, the industry’s consensus earnings estimate for the current year has decreased 5.2%.

Before we present a few stocks that investors can retain, given their growth prospects, let’s take a look at the industry’s recent stock market performance and current valuation.

Industry Lags S&P 500, Outperforms Sector The Zacks Transportation - Rail industry has underperformed the Zacks S&P 500 Composite while outperformed the broader sector over the past year.

Over this period, the industry has gained 18.6% compared with the S&P 500 Index’s northward movement of 30.1%. The broader sector has surged 14.8%.

One-Year Price Performance

Industry's Current Valuation Based on the trailing 12-month price-to-book (P/B), a commonly used multiple for valuing railroad stocks, the industry is currently trading at 6.78X compared with the S&P 500’s 7.89X. It is above the sector’s P/B ratio of 4.05X.

Over the past five years, the industry has traded as high as 10.92X, as low as 5.40X and at the median of 6.93X.

3 Stocks to Keep an Eye On We are presenting three Zacks Rank #3 (Hold) stocks that are well-positioned to grow in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States.

Relatively stable e-commerce demand, cost-cutting efforts to boost the bottom line and consistent initiatives to reward its shareholders through dividend payments and share repurchases bode well for UNP’s prospects. Further, UNP has a solid track record with respect to earnings surprises. The company surpassed the Zacks Consensus Estimate in three of the past four quarters (missed the mark in the remaining quarter), with an average beat of 2.32%. The Zacks Consensus Estimate for UNP’s 2026 earnings has moved up 0.8% over the past 60 days. UNP’s expected earnings growth rate for 2026 is 7.55%.

Price and Consensus: UNP

CSX: Based in Jacksonville, FL, CSX offers rail-based freight transportation services like traditional rail service, transport of intermodal containers and trailers and rail-to-truck transfers.

CSX's consistent efforts to continue rewarding its shareholders by paying dividends and buying back shares look appreciative. The company's focus onimproving workplace safety for employees is commendable. For 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth. Operating margin expansion is now anticipated toward the higher end of the 200-300 basis point (bps) range, while previously it was expected to be around 200-300 bps. Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%.

CSX has a solid earnings surprise history. The company surpassed the Zacks Consensus Estimate in three of the past four quarters (missed the mark in the remaining quarter), with an average beat of 3.16%. The Zacks Consensus Estimate for CSX's 2026 earnings has moved up 2.2% over the past 60 days. CSX has an expected earnings growth rate of 17.39% for 2026.

Price and Consensus: CSX

Canadian Pacific: Headquartered in Calgary, Canada, Canadian Pacific manages a transcontinental freight railway in Canada, the United States and Mexico.

We are encouraged by the Canadian Pacific’s decision to pay dividends consistently. Such a move instills investors’ confidence and positively impacts the company’s bottom line. Canadian Pacific has an encouraging track record with respect to earnings surprise. The company's earnings missed the Zacks Consensus Estimate in each of the past four quarters, delivering an average miss of 2.26%. CP’s expected earnings growth rate for 2026 is 13.94%.

Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share. The company expects 2026 revenue ton miles to increase in the mid-single digits from the 2025 actuals.

Price and Consensus: CP

MarketBeat Week in Review – 08/18 - 08/22CSX NASDAQ: CSX Executive Vice President and Chief Financial Officer Kevin Boone said the railroad remains focused on improving margins, capturing pricing tied to better service and using capital more efficiently, while cautioning that “one quarter doesn’t make a year.”

Speaking at an investor conference, Boone said CSX entered the year with a plan for low-single-digit revenue growth and 200 to 300 basis points of margin improvement. He said the company delivered against that plan in the first quarter and subsequently raised guidance, with the revenue update driven largely by fuel surcharge effects following higher oil prices, along with better trends in some markets tied to energy, chemicals and other areas.

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This Railroad Stock Is Chugging Along to a New All-Time HighBoone said the company is now targeting the higher end of its margin improvement range despite pressure from fuel surcharges. “Very happy with what we did in the first quarter,” he said. “A lot more to do.”

Pricing, Costs and Capital Efficiency Remain Priorities Boone highlighted three areas of focus as he returns to the CFO role: revenue, costs and capital. On revenue, he said Chief Executive Officer Steve Angel has emphasized the need to “get value” for the service CSX is providing. Boone said revenue growth depends on both volume and price, and that pricing is needed to cover cost inflation.

Golden Cross Alert: 3 Stocks With Serious Upside PotentialOn costs, Boone said CSX saw strong first-quarter performance across mechanical, engineering and transportation expenses. He said the finance organization is working to give operating teams better visibility and tools to identify savings and prevent costs from returning once efficiencies are found. Boone also said CSX is already building a pipeline of cost initiatives for 2027.

Capital efficiency is also a multi-year priority, particularly in maintenance capital. Boone said CSX is looking to use more data analytics in decisions about replacing track and rail, rather than relying primarily on physical inspection. He said the company is focused on improving return on invested capital, which he described as a metric aligned with compensation going forward.

Freight Demand Described as “Cautiously Optimistic” Boone described the current freight environment as “cautiously optimistic.” He said first-quarter weather created volatility in January and February, but trends improved in March across many markets.

In merchandise, Boone said nearly every market is growing except forest products, which remains pressured by production rationalization and housing exposure, though it has shown sequential improvement. He also pointed to strength in chemicals, aggregates, metals and domestic coal. Boone said low-cost U.S. energy is benefiting chemical producers and could support domestic and international demand.

Boone said CSX is seeing benefits from a tighter trucking market, particularly in domestic intermodal and in markets such as forest products where customers can choose between truck and rail. He said the company is focused more on expanding the overall rail opportunity and converting truck volume than on major share shifts among railroads.

On coal, Boone said utility demand has been strong, supported by winter weather and demand tied to AI and power needs. International coal markets were described as stable, with potential upside if pricing improves.

Network Performance and Intermodal Growth Asked about recent volume strength, including higher quarter-to-date carloads, Boone said improved operations, market conditions and demand trends are all contributing. He said Chief Operating Officer Mike Cory is not satisfied with current performance despite year-over-year improvement, adding that better service should lead to more wins.

Boone said CSX has capacity to grow across nearly every corridor. He noted that manifest traffic can often be added to existing trains, particularly as chemical customers increase shipments. On intermodal, he said the team has handled additional volume well and pointed to the Howard Street Tunnel as a growth opportunity.

Boone said CSX recently ran a double-stack train in that market and reiterated that the company previously outlined an opportunity for 75,000 to 125,000 additional loads. He said those gains would likely take two to three bid cycles to develop. Boone also cited opportunities tied to SMX service marketing Mexico into the Southeast.

AI and Data Tools Target Costs Boone said CSX is using data and AI tools in areas such as crew management, pricing and vehicle fleet oversight. He said crew management is one area Cory is particularly focused on, with AI helping analyze workforce trends, retirements and staffing needs.

Boone also highlighted the company’s vehicle fleet, saying CSX has GPS devices and data tools to monitor maintenance and usage. He said CSX spent more than $13,000 per truck in maintenance last year and is using better monitoring to manage vendors and employee driving behavior. He said the company reduced miles driven by its vehicle fleet by 20% in the first quarter and recently had zero drivers recorded at 90 miles per hour or more, after previously seeing many such instances.

Boone said the broader goal is to create processes that keep costs from “creep[ing] back into the system.”

Leverage, CapEx and Buybacks Boone said CSX’s leverage of about 3 times is on the higher end of where the company would like to be. He said credit rating agencies prefer a range of about 2.5 times to 2.75 times, which he described as a likely long-term operating area. He said leverage should come down substantially given the company’s guidance.

On capital spending, the moderator noted CSX’s target of $2.3 billion, down 20% year over year and equal to about 16% of revenue. Boone said there is “a lot of opportunity” to become more efficient with capital spending, while keeping safety as the primary focus. He said improved maintenance capital efficiency can free up investment for growth, technology and other areas.

Boone said CSX raised its free cash flow conversion guidance and said his goal is to move toward 100% conversion, though he added the company may not quite reach that level. On share repurchases, Boone said CSX will remain opportunistic and continue to be in the market each quarter, while preserving flexibility for market dislocations.

Boone closed by saying CSX’s leadership team is highly aligned around delivering results, though he again emphasized that the company must sustain its momentum beyond a strong first quarter.

About CSX NASDAQ: CSXCSX Corporation is a leading North American transportation company that provides rail-based freight services and supply-chain solutions. Its operating subsidiary, CSX Transportation, moves a wide range of goods for customers across multiple industries, using a combination of long-haul rail service, intermodal operations and terminal and yard services. The company focuses on delivering efficient, reliable freight transportation between major production centers, consumption markets and port gateways.

CSX's freight portfolio includes intermodal containers and trailers, bulk commodities, industrial products and specialized unit trains.

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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A month has gone by since the last earnings report for CSX (CSX - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is CSX due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for CSX Corporation before we dive into how investors and analysts have reacted as of late.

Earnings Beat at CSX  in Q1CSX reported mixed first-quarter 2026 results wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.

Quarterly earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis as well. Results were aided revenue growth and reduction in operating expense

Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year-over-year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenue, and increased fuel surcharge revenue. These were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.

First-quarter operating income increased 20% year over year to $1.25 billion. Total expenses decreased 6% year over year. CSX’s operating margin during the March quarter rose to 36% from 30.4% in the year-ago quarter. Total volumes inched up 3% year over year, boosted by intermodal volumes.

Q1 Segmental Performance of CSX

Merchandise revenues grew 2% year over year to $2.18 billion (matched with our estimate figure) in the reported quarter. Merchandise volumes rose marginally to $631 million. Segmental revenue per unit inched up 2% year over year.

Intermodal revenues increased 5% year over year to $518 million (below our estimate of $551.5 million). Segmental volumes increased 6% while revenue per unit was down 1% year over year.

Coal revenues slid 1% year over year to $458 million in the reported quarter. Coal volumes inched down 1% year over year, while segmental revenue per unit fell marginally.

Trucking revenues totaled $202 million (above our estimate of $183.4 million), flat year over year. Other revenues rose 1% year over year to $116 million in the reported quarter.

CSX’s Liquidity

CSX exited the first quarter of 2026 with cash and cash equivalents of $964 million compared with $670 million at the end of prior quarter. Long-term debt of $18.2 billion was flat sequentially.

2026 Guidance From CSX

For full year 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth.

Operating margin expansion is now anticipated towards the higher end of the 200-300 basis point range, while previously it was expected to be around 200-300 basis point.

Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%. CSX continues to expect capital expenditures to be below $2.4 billion.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM ScoresAt this time, CSX has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, CSX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Is CSX (CSX - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.

CSX is one of 99 individual stocks in the Transportation sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CSX is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CSX's full-year earnings has moved 2.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CSX has returned 24.9% so far this year. At the same time, Transportation stocks have gained an average of 12.8%. As we can see, CSX is performing better than its sector in the calendar year.

EuroDry (EDRY - Free Report) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 79.2%.

The consensus estimate for EuroDry's current year EPS has increased 29.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, CSX belongs to the Transportation - Rail industry, which includes 9 individual stocks and currently sits at #179 in the Zacks Industry Rank. On average, stocks in this group have gained 16.6% this year, meaning that CSX is performing better in terms of year-to-date returns.

EuroDry, however, belongs to the Transportation - Shipping industry. Currently, this 22-stock industry is ranked #44. The industry has moved +36.4% so far this year.

Going forward, investors interested in Transportation stocks should continue to pay close attention to CSX and EuroDry as they could maintain their solid performance.