, /PRNewswire/ -- CI Global Asset Management ("CI GAM") and Invesco Ltd. (NYSE: IVZ) today announced the successful completion of CI GAM's acquisition of the management agreements relating to Invesco's Canadian fund business with combined total assets under management of approximately C$27 billion.
CI GAM English Effective today, CI GAM, the Canadian asset management subsidiary of CI Financial Corp. ("CI"), has become manager of 98 mutual funds and exchange-traded funds previously offered by Invesco Canada Ltd. The transaction, which was first announced on January 13, 2026, has increased CI GAM's assets under management to approximately C$175 billion.
Invesco and CI GAM have also formed a long-term strategic partnership under which Invesco affiliates continue to provide portfolio management services to 61 of the funds through a sub-advisory arrangement with total assets under management of approximately C$13 billion, ensuring a consistent investment experience for securityholders in those funds.
"This transaction strengthens our position as a leader in the Canadian investment fund industry, significantly adding to our assets under management and broadening our capabilities," said Kurt MacAlpine, CI Chief Executive Officer. "We have enhanced our fund lineup with an extensive range of new strategies, including a robust ETF franchise – creating one of the industry's most comprehensive and diverse product offerings.
"This acquisition demonstrates our deep commitment to investing in the development and growth of all aspects of our Canadian wealth and asset management operations. As CI GAM continues to scale, we are equipped with greater resources to deliver investment excellence and effective, high-quality services and solutions that meet the needs of Canadian advisors and investors."
"Invesco remains committed to serving Canadian investors with our wide range of global investment strategies, and we look forward to continued growth through our partnership with CI GAM, one of Canada's leading wealth and investment managers," said Andrew Schlossberg, Chief Executive Officer of Invesco Ltd. "We also look forward to potentially jointly developing investment solutions for the Canadian wealth market in the future through our ongoing strategic relationship with CI GAM."
Prior to the completion of the transaction, securityholders of each applicable Invesco Canada investment fund approved the change of manager for their respective fund at meetings held in April 2026.
Given the change in portfolio management, CI GAM will rebrand 37 funds under the CI banner, effective on or about July 31, 2026. Further details will be disclosed in a separate press release to be issued later this week.
Contact information for Client Relations for the Invesco funds has not changed. Investors can continue to reach that team by phone at 1-800-874-6275 (English) or 1-800-200-5376 (French) or by email at [email protected] (English) or [email protected] (French), Monday to Friday, 9 a.m. to 5 p.m. ET.
Morgan Stanley & Co. LLC acted as financial advisor and Borden Ladner Gervais LLP served as legal advisor to Invesco. Jefferies Securities Inc. acted as financial advisor and Stikeman Elliott LLP served as legal advisor to CI GAM.
About Invesco Ltd.
Invesco Ltd. is one of the world's leading asset management firms serving clients in more than 120 countries. With US$2.2 trillion in assets under management as of March 31, 2026, we deliver a comprehensive range of investment capabilities across public, private, active, and passive. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com.
About CI Global Asset Management
CI Global Asset Management ("CI GAM") is one of Canada's leading investment management firms, providing a comprehensive suite of solutions – including mutual funds, exchange-traded funds and alternative investments – to help Canadians achieve their financial goals. Founded in 1965, CI GAM has built an enduring legacy of innovation, disciplined portfolio management and commitment to investor success. Our investment team brings deep expertise in fundamental research, portfolio construction and risk management to deliver results across a broad range of asset classes. We partner with financial advisors, wealth management firms and institutions to serve more than 1.3 million investors. CI GAM is a subsidiary of Toronto-based CI Financial Corp., a diversified global asset and wealth management company. For more information, visit www.ci.com or follow us on LinkedIn.
Forward-Looking Information and Statements
This press release contains "forward-looking information" and "forward looking statements" (collectively, "FLS") within the meaning of applicable securities laws. FLS may relate to future outlook and anticipated events or results and may include information regarding business strategy, growth strategy, operations, results, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities is FLS. In some cases, FLS can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain FLS. Statements containing FLS are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
Undue reliance should not be placed on FLS. The FLS in this press release is based on opinions, estimates and assumptions in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the FLS, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Further, FLS is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such FLS, including but not limited to, those described in this press release.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The FLS contained in this press release represents our expectations as of the date of this press release and is subject to change after such date. Each of CI and Invesco disclaim any intention or obligation or undertaking to update or revise any FLS whether as a result of new information, future events or otherwise, except as required by applicable law.
CI Global Asset Management is a registered business name of CI Investments Inc.
Invesco
Invesco Investor Relations: Greg Ketron +1-404-724-4299; Jennifer Church +1-404-439-3428
Invesco Media Relations: Andrea Raphael +1-929-729-3843; [email protected]
CI Global Asset Management
Murray Oxby
Vice-President, Corporate Communications
416-681-3254
[email protected]
Both the State Street Health Care Select Sector SPDR ETF (XLV 0.20%) and the Invesco S&P 500 Equal Weight Health Care ETF (RSPH +0.26%) focus on the healthcare sector of the S&P 500, yet their internal mechanics create distinct investment profiles.
Investors choosing between them must decide if they prefer XLV’s stability and the momentum of the industry's largest players or RSPH’s broader, diversified exposure that comes with equal weighting across the entire sector.
Snapshot (cost & size)MetricRSPHXLVIssuerInvescoSPDRExpense ratio0.4%0.08%1-yr return (as of 5/29/26)9.3%14.95%Dividend yield0.7%1.72%Beta0.90.58AUM$684.9 million$37.2 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a primary differentiator here, as the State Street fund is significantly more affordable with an expense ratio of 0.08%. This lower fee structure, combined with a higher dividend yield of 1.7%, may appeal to income-focused investors looking for efficient compounding through the sector.
Performance & risk comparisonMetricRSPHXLVMax drawdown (5 yr)(22%)(17%)Growth of $1,000 over 5 years (total return)$1,134$1,311While both funds target the same segment of the market, their risk metrics have historically diverged. The State Street fund has shown more resilience with a lower maximum drawdown, and its total growth over five years has outpaced the Invesco fund by a significant margin.
What's insideState Street Health Care Select Sector SPDR ETF allocates 100% of its portfolio to the healthcare sector, tracking a market-cap-weighted index. This strategy results in significant concentration at the top; its largest positions include Eli Lilly & Co. at 16%, Johnson & Johnson at 10%, and AbbVie at 7%. Launched in 1998, the fund holds 60 stocks and has a trailing-12-month dividend of $2.51 per share. Because it is weighted by size, its performance is heavily influenced by the biggest pharmaceutical and biotech names in the market.
NYSEMKT: XLVSelect Sector SPDR Trust - State Street Health Care Select Sector SPDR ETF
Today's Change
(
-0.20
%) $
-0.30
Current Price
$
153.79
In contrast, Invesco S&P 500 Equal Weight Health Care ETF tracks an equal-weight index, which provides a very different risk profile. Although it also holds about 60 stocks, it allocates roughly equal capital to each, meaning smaller companies have as much impact as the giants. Its top holdings include Humana at 3%, Centene at 2.8%, and Elevance Health at 2.3%. Launched in 2006, the fund is 98% healthcare with small positions in cash and other assets. It paid $0.22 per share over the trailing 12 months. This approach reduces concentration risk but may lead to different volatility patterns during market shifts.
NYSEMKT: RSPHInvesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Health Care ETF
Today's Change
(
0.26
%) $
0.08
Current Price
$
32.13
For more guidance on ETF investing, check out the full guide at this link.
What it means for investorsETFs can generally be composed in two ways: equal weighting, where every holding represents approximately the same share of the fund, or market-cap weighting, in which the larger companies make up a higher proportion of the fund than smaller companies. Both have their upsides: equal-weight funds like RSPH offer a more balanced approach, and investors may be able to capitalize on the larger upside potential of smaller companies. Market-cap-weighted funds like XLV give investors more exposure to the larger, more stable companies, minimizing risk and potentially maximizing dividend returns.
Cost is a big consideration with these two funds. XLV charges much lower fees than RSPH, as well as a dividend yield that’s an entire percentage point higher. Investors who are focused on income may be more drawn to this fund. It’s also a bit more resilient, with a lower maximum drawdown over the past five years. As an added bonus, its total returns over the past one and five years are also higher.
Invesco shares have surged +129% since my April 2025 buy rating, validating my bullish thesis and highlighting strong market momentum. IVZ's growth outlook is supported by favorable macro trends, robust top-line performance, and competitive positioning versus peers. Earnings drivers include margin trends, operating efficiency initiatives, and consensus expectations for near-term EPS growth.
Key Takeaways CI GAM assumed management of 98 mutual funds and ETFs previously operated by Invesco Canada.Invesco affiliates will keep managing 61 funds totaling about C$13B under a sub-advisory deal.CI GAM's AUM rises to about C$175B, and 37 funds are set for CI rebranding by July 31, 2026. Invesco (IVZ - Free Report) completed the transfer of its Canadian fund management business to CI Global Asset Management (CI GAM), marking the close of a deal that significantly reshapes the Canadian investment fund landscape.
The transaction, initially announced in January 2026, involves management agreements tied to Invesco’s Canadian fund lineup, which oversees approximately C$27 billion in assets. With the deal now finalized, CI GAM has assumed management responsibilities for 98 mutual funds and exchange-traded funds (ETFs) that were previously operated by Invesco Canada.
IVZ Maintains Presence Through PartnershipAlthough management of the funds has shifted to CI GAM, Invesco will continue to play an important role through a long-term strategic partnership between the two firms. Under a sub-advisory arrangement, Invesco affiliates will keep providing portfolio management services for 61 funds representing roughly C$13 billion in assets.
The arrangement is designed to maintain continuity for investors by preserving the investment management approach of those funds while allowing CI GAM to oversee their administration and distribution.
CI GAM Gains Scale Following IVZ TransactionThe acquisition boosts CI GAM’s total assets under management (AUM) to approximately C$175 billion, strengthening its standing in Canada’s investment fund industry.
The company has said that the addition broadens its investment capabilities and enhances its product lineup with a wider range of strategies, including an expanded ETF offering.
IVZ Eyes Growth OpportunitiesInvesco remains focused on serving Canadian investors through its global investment offerings and sees potential opportunities arising from its ongoing relationship with CI GAM. The companies indicated that the partnership could eventually lead to the joint development of investment solutions tailored to the Canadian wealth market.
Before the transaction closed, investors in the affected funds approved the manager changes during meetings held in April 2026. CI GAM also plans to rebrand 37 funds under the CI name around July 31, 2026, with additional details expected in a forthcoming announcement.
Invesco’s Price Performance & Zacks RankIVZ shares have rallied 13.2% over the past six months, outpacing the industry’s 9% decline.
Image Source: Zacks Investment Research
At present, Invesco carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions by Other Finance FirmsLast month, Hancock Whitney (HWC - Free Report) agreed to acquire OFB Bancshares, Inc., the parent company of One Florida Bank, in an all-cash transaction valued at $377.6 million. The deal marks a strategic expansion for HWC into the Orlando market, one of the fastest-growing large metro areas in the United States.
The acquisition is expected to be accretive to Hancock Whitney’s GAAP earnings, excluding one-time costs. The company projects high-single-digit earnings accretion, $15.8 million in cost savings, a CET1 ratio of 11.4% at close (expected in third-quarter 2026) and a 2027 pro-forma ROTCE of 16.3%.
KKR & Co. Inc. (KKR - Free Report) completed the acquisition of Arctos Partners, a premier institutional investor in professional sports franchise stakes globally and a provider of asset management solutions for sponsors.
The buyout is part of KKR’s strategy to expand its alternative investment platform through sports investing, GP solutions and secondaries capabilities, while strengthening its sourcing and origination engine across private markets.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced today that Allison Dukes, Chief Financial Officer, will participate in a fireside chat at the Morgan Stanley U.S. Financials Conference at 10:30 a.m. ET Wednesday, June 10, 2026.
A link to the live audio webcast will be available on the Investor Relations section of invesco.com/corporate. For those unable to listen to the live audio webcast, a replay will be available following the event.
About Invesco Ltd.
Invesco Ltd. is one of the world's leading asset management firms serving clients in more than 120 countries. With US$2.2 trillion in assets under management as of March 31, 2026, we deliver a comprehensive range of investment capabilities across public, private, active, and passive. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com.
, /PRNewswire/ -- Invesco High Income Trust II (NYSE: VLT) (the "Fund") today announced portfolio management changes.
Effective June 3, 2026, the following individuals are jointly and primarily responsible for the day-to-day management of Invesco High Income Trust II's portfolio:
Thomas Moore, CFA, Portfolio Manager, who has been associated with Invesco Asset Management Limited and/or its affiliates since 2016. Rahim Shad, Portfolio Manager, who has been associated with Invesco and/or its affiliates since 2009. Year Portfolio Manager began managing the Fund:
Thomas Moore
Rahim Shad
VLT
2026
2021
For investor inquiries, call 1-800-341-2929.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
About Invesco High Income Trust II.
Invesco High Income Trust II is managed by Invesco Advisers, Inc., a subsidiary of Invesco Ltd, one of the world's leading asset management firms serving clients in more than 120 countries. With US$2.2 trillion in assets under management as of March 31, 2026, we deliver a comprehensive range of investment capabilities across public, private, active, and passive. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit Invesco High Income Trust II.
Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail products. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Each entity is a wholly owned indirect subsidiary of Invesco Ltd.
Note: There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply.
NOT A DEPOSIT | NOT FDIC INSURED l MAY LOSE VALUE l NOT GUARANTEED BY A BANK | NOT IN INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Contact: Matthew Chisum, [email protected], 212-652-4368
The top-performing non-leveraged ETFs of 2026 span a distinct blend of digital assets, next-generation semiconductor technology, and localized international equity plays. For advisors assessing portfolio allocations heading into the second half of the year, these performance figures highlight a sustained risk-on appetite among investors.
Key Takeaways Digital assets and hardware infrastructure dominate the top-performing ETFs of 2026, driven by a resurgence in blockchain strategies and semiconductor manufacturing demand. The State Street Galaxy Digital Asset Ecosystem ETF (DECO) leads all non-leveraged funds with a year-to-date return of 79.6% as of June 2. International single-country exposures, specifically targeting Taiwan’s tech-heavy ecosystem, emerged as prominent performance drivers alongside traditional energy commodities. Digital Asset Infrastructure Takes the Lead The top spot on the leaderboard belongs to the State Street Galaxy Digital Asset Ecosystem ETF (DECO), which posted an impressive 79.6% return for the year-to-date period through June 2. This active ETF benefits from its flexible mandate to hold equity in digital assets, with significant exposure to blockchain infrastructure providers such as Riot Platforms (RIOT) and specialized digital mining entities. The fund’s performance underscores a broader return of capital to digital asset ecosystems, consistent with institutional adoption patterns observed over the past year.
Semiconductor Hardware and Momentum Strategies Surge Close behind, specialized technology and semiconductor themes dominated the next several tranches of performance data. The Invesco Dorsey Wright Technology Momentum ETF (PTF) posted a 77.1% gain, propelled by its underlying relative-strength tracking methodology, which systematically overweights high-momentum tech leaders.
Hardware providers showed similarly strong returns, with the VanEck Fabless Semiconductor ETF (SMHX) returning 76.8% and the broader VanEck Semiconductor ETF (SMH) gaining 75.6%, underscoring ongoing global capital expenditures on advanced artificial intelligence (AI) applications.
Analyzing the Structural Differences in Chip Design ETFs SMH and SMHX offer similar exposure, as the two portfolios have a 44% overlap by weight. However, SMHX focuses exclusively on asset-light, fabless enterprises that prioritize innovation in chip design while delegating the manufacturing process to third parties.
Commodities and Generative AI Software Maintain Footprint The commodity sector also carved out a foothold on the equity-dominated leaderboard. The United States Gasoline Fund LP (UGA) posted a 75.8% gain through June 2, reflecting tight domestic refinery margins and seasonal inventory drawdowns.
Meanwhile, thematic software and retail AI strategies maintained their operational momentum, with the Roundhill Generative AI & Technology ETF (CHAT) and the Invesco AI and Next Gen Software ETF (IGPT) posting year-to-date returns of 75.5% and 71.8%, respectively.
Taiwan Single-Country Allocations Focus on Supply Chains The concentration of global semiconductor supply chains geographically brought single-country international ETFs sharply into focus. The Franklin FTSE Taiwan ETF (FLTW) yielded 73.4%, slightly edging past the iShares MSCI Taiwan ETF (EWT), which registered a 68.6% return over the same five-month stretch.
Top Performers Add Value in Small Allocations While high-beta thematic ETFs are generating standout returns, actual asset allocation trends tell a different story. This divergence demonstrates that while thematic software, crypto, and semiconductor vehicles capture headline attention, advisors are primarily using them as satellite positions.
Data from VettaFi shows that investors are keeping their core capital firmly anchored in low-cost vanilla hedges. Vanguard S&P 500 ETF (VOO) commands the top slot with over $65 billion in YTD flows, while State Street SPDR Portfolio S&P 500 ETF (SPYM) trails in second with nearly $37 billion.
Furthermore, other leaders by flows include ProShares GENIUS Money Market ETF (IQMM), pulling in $22 billion, and iShares 0-3 Month Treasury Bond ETF (SGOV), capturing $21 billion in flows.
Originally published on Advisor Perspectives
For more news, information, and analysis, visit the Equity ETF Content Hub.
, /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ)1, a leading global asset management firm, announced today preliminary month-end assets under management (AUM) of $2,453.9 billion, an increase of 4.9% versus previous month-end. The firm delivered net long-term inflows of $18.9 billion in the month. Money market net inflows were $0.4 billion. AUM was positively impacted by favorable market returns which increased AUM by $96 billion. FX decreased AUM by $1.1 billion. Preliminary average total AUM for the quarter through May 31 was $2,331.3 billion, and preliminary average active AUM for the quarter through May 31 was $1,175.6 billion.
Total Assets Under Management
(in billions)
Total
ETFs & Index
Strategies
QQQ
Fundamental
Fixed Income
Fundamental
Equities
Private
Markets
China JV
Multi-
Asset/Other
Global
Liquidity
May 31, 20261
$2,453.9
$745.8
$494.0
$316.5
$319.5
$135.5
$158.7
$79.6
$204.3
April 30, 2026
$2,339.4
$701.4
$440.3
$315.8
$312.2
$134.1
$154.3
$77.7
$203.6
March 31, 2026
$2,159.5
$638.3
$372.5
$312.5
$287.7
$131.3
$141.9
$74.1
$201.2
February 28, 2026
$2,257.7
$672.1
$395.0
$316.0
$312.6
$131.8
$149.1
$78.6
$202.5
1 All May numbers preliminary – subject to adjustment.
About Invesco Ltd.
Invesco Ltd. is one of the world's leading asset management firms serving clients in more than 120 countries. With US$2.2 trillion in assets under management as of Mar. 31, 2026, we deliver a comprehensive range of investment capabilities across public, private, active, and passive. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com.
New Treasury BulletShares ETFs complement Invesco's investment grade corporate, high yield corporate and municipal bond BulletShares offerings, further strengthening Invesco's defined maturity ETF lineup
, /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, today announced the launch of BulletShares® Treasury Bond ETFs, marking a significant expansion of its defined maturity ETF platform and reinforcing its leadership1 in the defined maturity ETF landscape.
Invesco BulletShares Treasury 2027 Bond ETF (BSGR) Invesco BulletShares Treasury 2028 Bond ETF (BSTS) Invesco BulletShares Treasury 2029 Bond ETF (BSGT) Invesco BulletShares Treasury 2030 Bond ETF (BSTU) Invesco BulletShares Treasury 2031 Bond ETF (BSTV) "BulletShares has been a key part of our fixed income ETF lineup for years, offering a solution for investors interested in defined maturity as a portfolio building block. The addition of Treasury exposures, complements our current BulletShares offering, extending defined maturity into the largest and most liquid segment of the bond market," said Brian Hartigan, Global Head of ETFs & Index Investments at Invesco. "Fixed income remains a priority as we continue to enhance the range of ETFs available to help investors align their allocations with specific objectives."
The addition of Treasury BulletShares ETFs expands the lineup to include U.S. government bonds, giving investors additional tools to navigate different market environments. By offering exposures across Treasury bonds, investment grade corporate bonds, high yield corporate bonds and municipal bonds, BulletShares ETF support a range of investor's risk preferences and portfolio needs – from more defensive positioning to income-oriented strategies.
Target maturity ETFs have grown to approximately $70 billion in AUM as of April 30, 2026 – reflecting strong investor demand for bond-like maturity profiles within the ETF structure. Invesco BulletShares has been a pioneer in this category since launching the first defined-maturity corporate bond ETF suite in 2010, and stands as a leading franchise with $27.6 billion in AUM. The platform represents roughly 40% of the overall target maturity ETF market.
"Today's market environment highlights the importance of flexibility and income visibility within fixed income portfolios," said Jason Bloom, Head of Fixed Income ETF Strategy at Invesco. "Treasury exposures, such as those accessible through our new BulletShares Treasury ETFs, can serve as a complementary building block during periods of market uncertainty, helping investors navigate evolving rate conditions by offering the ability to lock in yields, manage reinvestment risk and maintain diversification across a laddered strategy."
Invesco will also add new maturities to its investment grade corporate bond and high yield corporate bond BulletShares ETFs lineup, increasing the maturity range available. The newly launched funds include:
Invesco BulletShares 2036 Corporate Bond ETF (BSCA) Invesco BulletShares 2034 High Yield Corporate Bond ETF (BSJY) BulletShares ETFs are designed with a disciplined, investor-focused approach that emphasizes portfolio precision and consistency. The suite is differentiated through its use of effective maturity framework that incorporates call economics, aligning bonds to their most likely repayment profile rather than stated maturity. Its methodology focuses on transparent, fixed-rate investment grade corporates while excluding more complex structures, supporting clarity and consistency. In the final maturity year, BulletShares maintains exposure to target-maturity bonds before transitioning to cash equivalents, helping balance yield potential and liquidity.
BulletShares ETFs seek to combine the efficiency and transparency of ETFs with a differentiated defined maturity structure, offering diversified portfolios of bonds that mature in a specific year. This approach enables investors to build bond ladders, generate income with greater visibility, and manage reinvestment risk more effectively.
For more information, please visit: Invesco's BulletShares® bond portfolios and BulletShares ETF Bond Ladder Tool.
About Invesco Ltd.
Invesco Ltd. is one of the world's leading asset management firms serving clients in more than 120 countries. With US$2.1 trillion in assets under management as of March 31, 2026, we deliver a comprehensive range of investment capabilities across public, private, active, and passive. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com.
Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s products and is a wholly owned, indirect subsidiary of Invesco Ltd.
About Risks
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments in financial institutions may be subject to certain risks, including the risk of regulatory actions, changes in interest rates and concentration of loan portfolios in an industry or sector.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus
BulletShares ETFs
Investments focused in a particular sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The funds are non-diversified and may experience greater volatility than a more diversified investment.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
During the final year of the funds' operations, as the bonds mature and the portfolio transitions to cash and cash equivalents, the funds' yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the funds and/or bonds in the market.
If interest rates fall, it is possible that issuers of callable securities will call or prepay their securities before maturity, causing the Fund to reinvest proceeds in securities bearing lower interest rates and reducing the Fund's income and distributions.
An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating.
Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds' income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds' income.
An issuer's ability to prepay principal prior to maturity can limit the funds' potential gains. Prepayments may require the funds to replace the loan or debt security with a lower yielding security, adversely affecting the funds' yield.
The Fund generally expects to make in-kind redemptions to avoid being taxed at the fund level on gains on the distributed portfolio securities. However, from time to time, the Fund reserves the right to effect redemptions for cash, rather than in-kind. In doing so this may decrease the tax efficiency of the Fund compared to utilizing an in-kind redemption process.
Unlike a direct investment in bonds, the funds' income distributions will vary over time and the breakdown of returns between fund distributions and liquidation proceeds are not predictable at the time of investment. For example, at times the funds may make distributions at a greater (or lesser) rate than the coupon payments received, which will result in the funds returning a lesser (or greater) amount on liquidation than would otherwise be the case. The rate of fund distribution payments may affect the tax characterization of returns, and the amount received as liquidation proceeds upon fund termination may result in a gain or loss for tax purposes.
During periods of reduced market liquidity or in the absence of readily available market quotations for the holdings of the fund, the ability of the fund to value its holdings becomes more difficult and the judgment of the sub-adviser may play a greater role in the valuation of the fund's holdings due to reduced availability of reliable objective pricing data.
The funds' use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.
BulletShares High Yield ETFs
The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
The Fund may invest in privately issued securities, including 144A securities which are restricted (i.e., not publicly traded). The liquidity market for Rule 144A securities may vary, as a result, delay or difficulty in selling such securities may result in a loss to the Fund.
BulletShares Municipal ETFs
Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer's ability to make payments of principal and/ or interest.
BulletShares Treasury ETFs
Treasury securities are backed by the full faith and credit of the US government as to the timely payment of principal and interest. Although the Fund may hold securities that carry U.S. Government guarantees, these guarantees do not extend to Shares of the Fund.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25 000, 50,000, 75,000, 80,000, 100,000 or 150,000 Shares.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses.
For this and more complete information about the funds, call 800-983-0903 or visit invesco.com/fundprospectus.
Not a Deposit; Not FDIC Insured; Not Guaranteed by the Bank; May Lose Value; Not Insured by any Federal Government Agency.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the funds, call 800-983-0903 or visit invesco.com/fundprospectus
Invesco Distributors, Inc. 06/26 NA 5554873
NOT A DEPOSIT l NOT FDIC INSURED l NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
1 Among its peers, Invesco has the largest target maturity ETF franchise by AUM – totaling $27.6 billion as of April 30, 2026.
Key Takeaways Invesco posted May AUM of $2.45T, rising 4.9% from April on preliminary results.IVZ drew $18.9B net long-term inflows; money market net inflows added $0.4B.Invesco got a $96B market boost, offset by $1.1B FX drag; QQQ AUM rose 12.2% to $494B. Invesco (IVZ - Free Report) has announced preliminary assets under management (AUM) of $2.45 trillion for May 2026. This represents a 4.9% increase from the previous month.
In the reported month, Invesco’s net long-term inflows were $18.9 billion. Money market net inflows were $0.4 billion. AUM was positively impacted by favorable market returns, which increased the AUM by $96 billion. On the other hand, FX decreased the AUM by $1.1 billion.
Invesco’s preliminary average total AUM for the quarter through May 31, 2026, was $2.33 trillion, while preliminary average active AUM for the same period was $1.18 trillion.
Breakdown of Invesco’s AUM Performance by Asset ClassAt the end of May 2026, Invesco reported ETFs & Index Strategies AUM of $745.8 billion, up 6.3% from the previous month. Fundamental Fixed Income AUM of $316.5 billion increased marginally.
AUM under China JV increased 2.9% from March to $158.7 billion. AUM under Multi-Asset/Other was $79.6 billion, up 2.4% from the prior month’s end. QQQ’s AUM was $494 billion, up 12.2%. Private Market’s AUM was $135.5 billion, which increased 1% from April 2026.
Fundamental Equities AUM was up 2.3% from April to $319.5 billion. Global Liquidity AUM was $204.3 billion, up slightly from the prior month.
Our View on InvescoStrategic expansion initiatives, a strong global presence, diversified offerings, balance sheet recapitalization, improved operating efficiency and solid AUM are likely to keep supporting IVZ’s financial performance.
So far this year, Invesco's shares have gained 6.3% against the industry’s 12.2% fall.
Image Source: Zacks Investment Research
At present, IVZ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Invesco’s Peer Performance in May 2026Franklin Resources, Inc. (BEN - Free Report) reported its preliminary AUM of $1.78 trillion as of May 31, 2026, which increased 1.9% from the prior month.
Growth in the AUM balance was driven by the positive impact of markets and preliminary long-term net inflows of $4 billion, including $1 billion of long-term net inflows at Western Asset Management.
Upcoming AUM Release of Another Invesco PeerT. Rowe Price Group, Inc. (TROW - Free Report) will announce its monthly performance in the upcoming days. TROW shares have rallied 3.5% this year.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Invesco (IVZ - Free Report) Headquartered in Atlanta, GA, Invesco Ltd. operates as an independent investment manager and offers a wide range of investment products and services. The company was incorporated in 1935. As of March 31, 2026, Invesco served clients in more than 120 countries and had AUM worth $2.16 trillion.
IVZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. IVZ has a Growth Style Score of B, forecasting year-over-year earnings growth of 27.1% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $2.58 per share. IVZ boasts an average earnings surprise of +7.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, IVZ should be on investors' short list.
On June 10, Invesco launched the new BulletShares Treasury Bond ETFs. These funds offer target maturities between 2027 to 2031, with an expense ratio of seven basis points. Each fund functions as a hybrid, combining the features of an individual treasury bond with traditional bond ETFs.
Invesco BulletShares Treasury 2027 Bond ETF (BSGR) Invesco BulletShares Treasury 2028 Bond ETF (BSTS) Invesco BulletShares Treasury 2029 Bond ETF (BSGT) Invesco BulletShares Treasury 2030 Bond ETF (BSTU) Invesco BulletShares Treasury 2031 Bond ETF (BSTV) “BulletShares has been a key part of our fixed income ETF lineup for years, offering a solution for investors interested in defined maturity as a portfolio building block. The addition of Treasury exposures, complements our current BulletShares offering, extending defined maturity into the largest and most liquid segment of the bond market,” said Brian Hartigan, global head of ETFs & index investments at Invesco. “Fixed income remains a priority as we continue to enhance the range of ETFs available to help investors align their allocations with specific objectives.”
In addition, Invesco has also added new maturities to existing offerings in the Investment Grade and High Yield Bulletshares lineup. These new funds are the Invesco BulletShares 2036 Corporate Bond ETF (BSCA) with an expense ratio of 10 basis points, and the Invesco BulletShares 2034 High Yield Corporate Bond ETF (BSJY) with an expense ratio of 42 basis points.
Expanding an Already Strong Lineup The launch of the BulletShares Treasury Bond ETFs builds upon the success of other offerings in the Invesco BulletShares suite. The Invesco BulletShares 2026 Corporate Bond ETF (BSCQ) has seen a return of 1.55% in 2026 and the Invesco BulletShares 2027 Corporate Bond ETF (BSCR) has displayed a return of 1.29% over the same period. According to Invesco, target maturity ETFs have grown to approximately $70 billion in AUM as of April 30, 2026. Invesco represents roughly 40% of that market.
“Invesco has supported advisor efforts to build low-cost, easy implementation target maturity ETFs for years. It is great to see them expand their lineup,” said Todd Rosenbluth, head of research at TMX VettaFi.
The specific target maturities allow investors to ladder holdings. In turn, that facilitates better planning for cash distributions through the layering of different maturity dates. Through targeted exposure to Treasury bonds, these new funds provide investors with another versatile tool for navigating various market conditions without giving up the diversification inherent in an ETF.
For more news, information, and strategy, visit the Innovative ETFs Content Hub.
The Invesco Aerospace & Defense ETF (PPA 1.01%) offers a lower-cost, lower-volatility approach to defense than the ARK Space & Defense Innovation ETF (ARKX 1.60%), which prioritizes high-growth technology companies disrupting the space sector.
Both funds target the expanding aerospace and defense industries but take fundamentally different paths. While ARKX actively hunts for disruptive innovation across space exploration and orbital technologies, PPA follows a more established index-based strategy, favoring traditional U.S. defense contractors and homeland security firms that provide a more stable market profile.
Snapshot (cost & size)MetricARKXPPAIssuerARKInvescoExpense ratio0.75%0.58%1-yr return (as of June 8, 2026)58.1%25.1%Dividend yieldNone0.4%Beta1.410.74AUM$717.3 million$8.0 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Invesco fund is more affordable for long-term holders, with a 0.58% expense ratio compared to the ARK fund’s 0.75%. This price gap reflects the difference between active management and index tracking.
Performance & risk comparisonMetricARKXPPAMax drawdown (4 yr)(25.6%)(15.4%)Growth of $1,000 over 4 years (total return)$2,352$2,410What's insideThe Invesco Aerospace & Defense ETF is a seasoned fund launched in 2005 that tracks an index of 61 U.S. defense and homeland security holdings. Its portfolio is heavily concentrated in industrials at 91%, with just 9% in technology. Its largest positions include The Boeing Company (BA 0.58%) at 8.7%, GE Aerospace (GE +1.09%) at 8.3%, and RTX (RTX 0.05%) at 6.9%. Over the trailing 12 months, it paid $0.66 per share in dividends. With $8 billion in assets under management (AUM), it offers significantly greater scale and liquidity than newer, thematic competitors.
In contrast, the ARK Space & Defense Innovation ETF was launched in 2021 and manages $717.3 million in assets under management (AUM). It holds a tighter basket of 45 positions and has not paid a dividend over the trailing 12 months. The portfolio has a smaller industrial tilt at 56% while carrying significant technology exposure at 27% and 8% in communication services. Top holdings include Rocket Lab USA (RKLB 9.27%) at 8.7%, Advanced Micro Devices (AMD +5.56%) at 7.9%, and L3Harris Technologies (LHX 1.25%) at 7.1%. This composition reflects an active management style that targets disruptive space technologies and innovation rather than just traditional defense contractors.
Which fund is the better buy?Not all ETFs are alike, even when they cover the same sector.
The key difference between the Invesco Aerospace & Defense ETF and the ARK Space & Defense Innovation ETF is that the Invesco offering is a passively managed ETF meant to reflect an index, the SPADE Defense Index, while the ARK offering is actively managed, meaning a person or team is making decisions to shift assets among its investment landscape. Indeed, the weightings of ARKX’s top 10 holdings have changed notably since the end of the first quarter, with some stocks weighted more heavily other more lightly, and some replaced by new names in the top holdings list.
The active hand is paying off. The year-to-date return of ARKX is about 19%, with a 54% one-year return, and a cumulative return since its early 2021 inception of close to 75%.
The Invesco fund has done decently, with year-to-date and 1-year returns of nearly 13% and 31%, respectively, but that’s left a lot of money on the table compared to the ARK ETF.
If you trust that the active managers who have posted such good returns are acting on skill and insight, then the ARK Space & Defense Innovation ETF is the better choice, given the flexibility active management gives the fund to go in whatever direction the team sees fit to find profits. PPA, meanwhile, has to wait for the index company’s quarterly rebalancing to make any significant adjustments.
For more guidance on ETF investing, check out the full guide at this link.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Boeing, GE Aerospace, L3Harris Technologies, RTX, and Rocket Lab. The Motley Fool has a disclosure policy.
When investors search for nuclear energy stocks, it's easy to start researching Oklo and NuScale Power. Those two companies are working to deliver disruptive technology to an older industry with their small modular reactors (SMRs).
A company that sometimes gets missed, however, is BWX Technologies (BWXT +0.04%). It's not a pure-play nuclear energy company, and it hasn't quite captured the investing world's imagination. But that's OK because it creates an opportunity for those who value owning shares in a profitable, growing company that also pays a dividend.
Image source: Getty Images.
A nuclear company that knows how to make money BWX may not be a pure-play nuclear stock, but it still has extensive operations relating to nuclear energy. It does a little bit of everything in the market, ranging from manufacturing nuclear reactors to providing field and engineering services to nuclear medicine. It's also the contractor-manufacturer of the reactor pressure vessel for an SMR being developed by a partnership between GE Vernova and Hitachi.
The bulk of BWX's revenue comes from its government operations, with $2.3 billion of its total $3.2 billion in 2025 revenue coming from that segment. Also, $5.5 billion of its $7.3 billion backlog is for government operations. While there are risks involved in relying on government contracts, BWX also has a moat that provides steady revenue through its highly specialized operations, as evidenced by its backlog.
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That said, the company is also seeing growth with its commercial operations, which include nuclear components, fuel handling, and medical sales. Revenue for that segment grew 63% from $524 million in 2024 to $853 million in 2025. That growth trend appears to be continuing for commercial operations into this year, with 2026 first-quarter revenue of $284 million, up 121%.
It also has another catalyst for revenue growth on the horizon with the potential acquisition of Precision Components Group. If the acquisition clears regulatory hurdles, BWX says it will "establish additional U.S. commercial nuclear production capacity to serve growing domestic demand." In 2025, Precision Components generated $125 million in revenue.
BWX Technologies investment considerations Reporting net income of around $329 million in 2025, this isn't the biggest moneymaking operation in the world. Still, it's a steady, profitable business with reliable demand from government contracts and is growing its other revenue streams.
Despite the stability, for value investors this nuclear investment is considered expensive based on traditional valuation metrics, and, as of this writing, shares have climbed nearly 100% over the last 12 months. Some may want to wait for a pullback. Still, within the nuclear energy space, finding a profitable company that also pays a dividend may be worth considering paying up for.
Energy stocks often experience cyclical swings, but the top stocks tend to be strong long-term investments because the world will continually consume more energy. But instead of sticking with the classic oil and gas stocks to profit from that trend, investors should consider buying some higher-growth plays in the solar and nuclear energy markets.
Both of those growing markets should benefit from global decarbonization initiatives, making them more resilient investments than the top fossil fuel stocks. If you want to profit from that shift, you should invest in these two higher-growth energy stocks: Nextpower (NXT +3.47%) in the solar market and BWX (BWXT +0.04%) in the nuclear market.
Image source: Getty Images.
Nextpower Nextpower is the world's largest producer of solar trackers, which tilt solar panels to follow the sun throughout the day. It also produces electrical balance-of-systems (eBOS) solutions for moving electricity from solar panels to the grid, robotics systems for maintaining solar farms, and AI software for predicting weather and automating a solar power plant's operations.
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Nextpower still generates most of its revenue from selling solar trackers in North America, but it's expanding overseas and beefing up its smaller businesses through acquisitions. That expansion is locking in its customers, widening its moat against its competitors, and turning it into a "one-stop" shop that supports the entire lifecycle of a solar power plant.
The global solar market's total volume could expand at a 19.9% CAGR from 2026 to 2031, according to Mordor Intelligence, as more companies ramp up renewable energy investments to meet the power-hungry demands of of the artificial intelligence (AI), cloud infrastructure, and data center markets.
From fiscal 2025 (which ended last March) to fiscal 2027, analysts expect Nextpower's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 13% and 12%, respectively. With an enterprise value of $20.4 billion, it still looks reasonably valued at five times this year's sales and 22 times its adjusted EBITDA. So if you're looking for a simple play on the growing solar market, Nextpower checks all the right boxes.
BWX Technologies BWX, which was spun off from Babcock & Wilcox (BW +2.96%) in 2025, is the only large-scale nuclear equipment manufacturing facility in North America. It produces specialized nuclear components, fuel systems, and naval reactor systems in its large precision nuclear fabrication facilities. It's also one of the only companies simultaneously licensed to work with regulated nuclear materials, handle high-assay enriched uranium (HALEU) and tri-structural isotropic (TRISO) fuel, and manufacture naval reactor components for the U.S. Navy.
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Those facilities, which are widely considered irreplaceable parts of the nuclear supply chain, make BWX a linchpin of the nuclear energy market. Its heavy exposure to the defense sector also helped it keep growing, even as many countries reined in their nuclear spending in the decade after the Fukushima disaster in 2011.
BWX's backlog grew 50% year over year to $7.3 billion at the end of 2025, driven by the demand for naval propulsion components for submarines, commercial nuclear power components, and special materials. Its nascent small modular reactor (SMR) business, which produces smaller and easier-to-deploy nuclear reactors for remote areas, is also attracting more attention as a long-term play on the AI, cloud infrastructure, and data center markets.
From 2025 to 2028, analysts expect BWX's revenue and adjusted EBITDA to grow at 13% and 12% CAGRs, respectively. With an enterprise value of $20.1 billion, it isn't cheap at five times this year's sales and 30 times its adjusted EBITDA. Still, its wide moat and exposure to the resurgent nuclear energy market should justify that higher valuation.
Global energy demand is exploding, and the world is facing a simple reality: We need more energy. While wind and solar have grown in popularity, modern technology is always on and needs reliable energy that can deliver power no matter what. Technology giants are increasingly embracing nuclear energy, and governments are paving the way for more nuclear energy in the coming decades.
Amid this resurgence, nuclear energy stocks are enjoying strong tailwinds that could persist for decades. Two nuclear stocks that are surging are Cameco (CCJ +2.12%) and BWX Technologies (BWXT +0.04%), gainin 103% and 82%, respectively, in the past year alone. Here's why these stocks can continue delivering for long-term investors.
Image source: Getty Images.
This top miner will help fuel the global nuclear build-out In recent years, surging energy demand has come into focus, and countries are scrambling to meet the growing needs of artificial intelligence (AI) data centers. In the United States, there has been a major push for energy independence, and nuclear power is seen as a key pillar in making it possible. Under the Trump administration, the U.S. is pushing to advance nuclear technology and accelerate the build-out of nuclear-related infrastructure.
Cameco sits at the intersection of Western energy independence and the growing demand for nuclear power. The company is the largest publicly traded uranium miner in the world and the undisputed heavyweight of the Western world's uranium supply. Cameco supplies roughly 17% of the world's uranium and owns ultra-high-grade uranium mines at McArthur River and Cigar Lake in Saskatchewan, Canada.
The company has committed to delivering an average of 28 million pounds of uranium per year over the next five years, which enables it to optimize its inventory and prevent excess supply from flooding the spot market. Cameco also signed a huge $2.6 billion long-term agreement with India's Department of Atomic Energy to supply 22 million pounds of uranium ore concentrate through 2035.
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While Cameco is a major player in the uranium mining space, it also offers investors upside from the nuclear energy infrastructure build-out through its 49% stake in Westinghouse Electric. Westinghouse is a behemoth in the nuclear energy technology industry, and nearly half of the operating nuclear power plants rely on its technology. In November 2023, a consortium comprising Cameco and Brookfield Renewable Partners acquired Westinghouse for $7.9 billion.
Last year, Westinghouse, Cameco, and Brookfield entered into a partnership with the U.S. Department of Commerce to accelerate the build-out of Westinghouse reactors across the United States. The deal, valued at around $80 billion, would see Westinghouse build as many as 20 of its large-scale AP1000 reactors across the country. On top of that, Westinghouse is developing the AP300 small modular reactor (SMR) and hopes to deploy it in the early 2030s.
Cameco stock has run up significantly over the past few years as investors have grown more bullish about the budding nuclear energy industry. More recently, the stock has pulled back 22% from its 52-week high. Given the long-term tailwinds from growing demand for nuclear energy, I think the dip is an excellent opportunity for long-term investors to scoop up the stock.
BWX Technologies' monopoly provides the ultimate economic moat BWX Technologies is a picks-and-shovels stock in the nuclear industry. It doesn't mine or own power plants, but it does provide the specialized equipment and fuel needed for nuclear energy and nuclear medicine. The company has built up expertise and manufactures the complex, high-precision equipment used in nuclear reactors.
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The company manufactures components for nuclear reactors, including steam generators, reactor pressure vessels, and piping. It also manufactures components for next-generation SMRs, including those for the BWRX-300 SMR by GE Vernova and Hitachi, as well as advanced reactors for the U.S. military. It also leverages its nuclear infrastructure to manufacture medical isotopes used in cancer diagnostics and targeted therapies.
What makes BWX compelling for investors is its virtual monopoly on supplying fuel to the U.S. Navy. For over 70 years, BWX has been the exclusive provider of nuclear reactors that power the Navy's fleet of aircraft carriers and submarines, including the Virginia-class and Columbia-class subs. Because these military-grade reactor cores are highly complex and sensitive, it's difficult for competitors to break into this space, giving BWX a government-backed monopoly with a multibillion-dollar backlog.
BWX Technologies is in a strong position as a defense contractor crucial for national security, while also offering you an opportunity to invest in the AI revolution and nuclear energy build-out. For investors looking to capitalize on the nuclear energy revolution, BWX is another compelling stock to buy and hold for the long haul.
The nuclear energy market cooled for roughly a decade after the Fukushima disaster in 2011, prompting many countries to pause their nuclear projects. But over the past few years, new decarbonization initiatives, safer nuclear reactors, and the expansion of the AI, cloud, and data center markets have driven more companies to restart their nuclear energy projects.
According to the International Energy Agency (IEA), the world's nuclear capacity could increase by more than 50% from 2025 to 2050. To capitalize on that trend, investors should look for nuclear companies that control crucial parts of the global nuclear energy supply chain. Two of those companies are Cameco (CCJ +2.12%) and BWX Technologies (BWXT +0.04%).
Image source: Getty Images.
Cameco Cameco, which mined roughly 15% of the world's uranium in 2025, is the world's second-largest uranium miner after Kazatomprom, Kazakhstan's national atomic company. It's based in Canada, and it operates mines across Canada, the U.S., and Kazakhstan.
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Cameco struggled for years after the Fukushima disaster in 2011. Uranium's spot price plunged from $62.25 per pound in 2011 to $35.00 in 2020, forcing Cameco to temporarily shut down its largest mines and mills. That reduced production throttled its revenue growth.
But by the end of this April, uranium's spot price had bounced back to $86.35 per pound. Citi analysts expect it to rise as high as $125 per pound this year, as the resurgent interest in nuclear energy drives the demand for uranium to outstrip its supply. Cameco restarted its mines and mills to meet that soaring demand, but its supply remains tight.
Cameco also partnered with Brookfield Asset Management to acquire Westinghouse Electric, one of the world's leading nuclear technology companies, in 2023. That investment reduced Cameco's exposure to volatile uranium prices and marked a major step toward its evolution into a more diversified nuclear energy company.
From 2025 to 2028, analysts expect Cameco's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 8% and 12%, respectively. With an enterprise value of $61.5 billion, it isn't cheap at 33 times this year's adjusted EBITDA -- but the soaring demand for uranium could justify that higher valuation. It only pays a paltry forward yield of 0.2%, but its low payout ratio of 16% gives it ample room for future hikes.
BWX Technologies BWX is the only large-scale producer of specialized nuclear components, fuel systems, and naval reactor systems in North America. It's also one of the only companies authorized to work with regulated nuclear materials, handle high-assay enriched uranium (HALEU) and tri-structural isotropic (TRISO) fuel, and produce naval reactor components for the U.S. Navy.
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Those qualities make BWX, which was spun off from Babcock & Wilcox in 2025, a linchpin and bellwether of the nuclear energy market. Its heavy exposure to the defense sector also insulated it from the broader slowdown in nuclear spending after the Fukushima disaster.
At the end of 2025, BWX's backlog grew 50% year over year to $7.3 billion as it produced more naval propulsion components for submarines, sold more commercial nuclear power components, and expanded its fledgling small modular reactor (SMR) business -- which produces smaller and easier-to-deploy nuclear reactors for remote areas. The rapid expansion of the power-hungry AI and data center markets should drive more companies to adopt SMRs.
From 2025 to 2028, analysts expect BWX's revenue and adjusted EBITDA to grow at CAGRs of 13% and 12%, respectively. With an enterprise value of $19.5 billion, it isn't a bargain at 30 times this year's adjusted EBITDA.
However, BWX's scale, diversification, and wide moat could justify that premium valuation as its defense and commercial customers ramp up their nuclear spending. It only pays a forward yield of 0.5% today, but its low payout ratio of 27% also gives it plenty of room to raise its dividend.
Key Takeaways BWXT backlog totaled about $8.65B as of March 31, 2026, spanning Government and Commercial Operations.BWXT expects nearly 60% of remaining performance obligations to convert to revenues by end of 2027.BWXT Q1 2026 revenues rose in both segments, led by nuclear services, fuel programs and uranium processing. BWX Technologies, Inc. (BWXT - Free Report) continues strengthening its long-term revenue visibility through a large and diversified backlog supported by naval nuclear propulsion, uranium processing, advanced reactor programs and commercial nuclear operations. As of March 31, 2026, the company’s backlog totaled approximately $8.65 billion, reflecting healthy demand across both its Government and Commercial Operations businesses.
The company expects nearly 60% of its remaining performance obligations to convert into revenues associated with backlog by the end of 2027, with the rest scheduled for later periods. This visibility helps support manufacturing activity, capital deployment and long-term operational planning while reducing near-term business uncertainty.
BWXT continues benefiting from stable demand tied to U.S. naval nuclear propulsion and government-related nuclear programs. During first-quarter 2026, Government Operations revenues rose to $577.9 million from $555.3 million in the year-ago quarter, and growth was supported by nuclear components and fuel programs, uranium processing activities and nuclear services.
The Commercial Operations business is also contributing to backlog support and future revenue generation. First-quarter 2026 Commercial Operations revenues climbed sharply to $283.6 million from $128.3 million in the prior-year quarter, aided by growth in nuclear manufacturing as well as nuclear services and engineering.
BWXT is also expanding its long-term growth pipeline through acquisitions and investments tied to nuclear services and advanced manufacturing capabilities. These efforts continue strengthening the company’s position across defense, energy and nuclear technology markets while supporting future backlog growth.
Companies Supporting Strong BacklogsHealthy demand for defense modernization, nuclear infrastructure and naval programs continues supporting strong backlog visibility across the industry. Companies like Huntington Ingalls Industries, Inc. (HII - Free Report) and Curtiss-Wright Corporation (CW - Free Report) are also benefiting from long-term program demand.
Huntington Ingalls reported total backlog of $54 billion as of March 31, 2026, supported by aircraft carriers, submarines, amphibious assault ships and mission technologies programs.
Curtiss-Wright reported a backlog of nearly $4.3 billion as of March 31, 2026, driven by demand across defense electronics, naval nuclear propulsion and commercial aerospace markets.
Earnings Estimates for BWXT StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 16.96% and 10.98%, respectively.
Image Source: Zacks Investment Research
BWXT Stock Trading at a DiscountBWX Technologies is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 4.76X compared with the industry average of 12.27X.
Image Source: Zacks Investment Research
BWXT Stock Price PerformanceOver the past year, BWXT shares have surged 69.5% compared with the industry’s 26.3% growth.
Image Source: Zacks Investment Research
BWXT’s Zacks RankBWX Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways BWX Technologies supports reactor infrastructure and advanced nuclear technology manufacturing activities.BWXT secured a contract exceeding $1.4 billion tied to U.S. Naval Nuclear Propulsion Program work.UEC is advancing uranium resource projects and production readiness amid rising nuclear energy demand. BWX Technologies, Inc. (BWXT - Free Report) and Uranium Energy Corp. (UEC - Free Report) are benefiting from expanding activity across the nuclear energy market, driven by a rising focus on energy reliability, nuclear fuel security and long-term low-carbon power generation. As governments and energy providers continue strengthening nuclear infrastructure and fuel supply capabilities, both companies are expanding their presence across different parts of the nuclear value chain while supporting future reactor operations and energy system development.
The nuclear industry continues to gain traction through investments in reactor expansion, uranium supply development and next-generation nuclear technologies. Growing electricity demand and increasing interest in dependable low-emission power sources are encouraging broader adoption of nuclear energy solutions. Efforts to strengthen domestic fuel supply chains and expand nuclear infrastructure are creating long-term growth opportunities for companies involved in reactor technologies, uranium production and nuclear resource development.
Let’s compare the stocks’ fundamentals to determine which one is the better investment option at present.
The Case for BWXT StockBWX Technologies operates across nuclear technologies, reactor systems and precision manufacturing solutions supporting government and commercial nuclear activities. The company develops nuclear reactors, fuel-related systems and specialized components used in nuclear operations and advanced technology programs. BWXT also continues aiding nuclear infrastructure programs tied to long-term reactor and energy system requirements.
BWXT continues to benefit from sustained demand for nuclear propulsion and reactor-related programs. In May 2026, the company secured contracts valued at more than $1.4 billion supporting the U.S. Naval Nuclear Propulsion Program. The awards include long-lead material procurement, reactor system components and manufacturing work tied to nuclear-powered naval platforms, strengthening BWXT’s position in a critical segment of the nuclear industry.
The Case for UEC StockUranium Energy operates across uranium mining, processing and resource development activities, boosting future nuclear fuel requirements. The company owns uranium projects and processing infrastructure designed to support future production expansion and long-term uranium supply needs. Its operations remain aligned with increasing demand for uranium resources tied to expanding nuclear generation activities.
UEC continues advancing development projects, expanding processing capabilities and increasing operational readiness across its uranium platform. The company is focused on strengthening production capacity, advancing resource development initiatives and expanding its uranium asset base to support future nuclear fuel demand. Its continued emphasis on uranium supply growth and domestic production capabilities positions the company to benefit from increasing interest in nuclear power generation and fuel security initiatives.
How Does the Zacks Consensus Estimate Compare for BWXT & UEC?The Zacks Consensus Estimate for BWX Technologies’ 2026 earnings per share (EPS) indicates a rise of 1.96% in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for Uranium Energy’s fiscal 2026 EPS calls for a decline of 20% in the past 60 days.
Image Source: Zacks Investment Research
Debt Position of BWXT & UECDebt position is an important financial indicator that reflects a company’s financial stability and ability to manage debt obligations efficiently. Currently, BWXT’s debt-to-capital stands at 61.18%, while UEC maintains a debt-free capital structure.
BWXT & UEC: Stock Price PerformanceOver the past three months, shares of BWXT and UEC have fallen 7.9% and 13.3%, respectively.
Image Source: Zacks Investment Research
Valuation for BWXT & UECBWXT shares are trading at a forward 12-month Price/Sales (P/S F12M) multiple of 4.64 compared with UEC’s P/S F12M of 78.36.
Image Source: Zacks Investment Research
ConclusionBoth companies operate across the expanding nuclear energy and fuel infrastructure market. BWX Technologies focuses on nuclear reactor systems, fuel-related technologies and specialized manufacturing solutions supporting nuclear operations and long-term reactor programs. Uranium Energy centers on uranium mining, processing and resource development activities designed to support future nuclear fuel demand and supply-chain expansion.
Our choice at the moment is BWX Technologies due to its stronger earnings estimate trends, more attractive valuation and relatively better stock price performance compared to Uranium Energy.
BWX Technologies and Uranium Energy each carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) announced today that its TRISO nuclear fuel has powered Antares Nuclear Inc.’s reactor through the first successful criticality milestone under the Administration’s Executive Order 14301, Reforming Nuclear Reactor Testing at the Department of Energy. BWXT also processed the high assay low enriched uranium (HALEU) feedstock material used to manufacture the Antares TRISO fuel compacts from scrap materials provided by NNSA, underscoring the company’s leadership across the full spectrum of next generation fuel production.
“BWXT is delivering leading-edge nuclear products that support the energy dominance goals of our nation, and this milestone underscores that fact,” said Rex D. Geveden, BWXT president and chief executive officer.
Share “This marks a historic milestone for advanced nuclear fuel fabrication in the United States,” said U.S. Energy Secretary Chris Wright. “The Trump administration is proud to partner with private companies such as BWXT, as we strengthen the foundation of a reliable and secure nuclear supply chain to support both national defense and commercial energy needs.”
“BWXT is delivering leading-edge nuclear products that support the energy dominance goals of our nation, and this milestone underscores that fact,” said Rex D. Geveden, BWXT president and chief executive officer. “Our skilled workforce, advanced manufacturing technologies and nuclear-qualified supply chain are driving a new generation of reactor demonstrations across the country.”
"BWXT's TRISO fuel supported our path to criticality,” said Jordan Bramble, CEO, Antares. “Building on a proven fuel specification developed through Project Pele let our team focus on what we had to prove ourselves: our control system and reactor physics. We're grateful for a partnership that continues as we move from neutrons to electrons."
Antares modeled its reactor fuel on the TRISO (TRi-structural ISOtropic) fuel compacts BWXT delivered for Project Pele, the 1.5 megawatt transportable microreactor BWXT is building for the U.S. Army’s Strategic Capabilities Office. That TRISO fuel specification, developed within DOE’s Advanced Gas Reactor (AGR) program over the past several decades, paired with BWXT’s decades of TRISO development at its Specialty Fuels Fabrication facility in Lynchburg, helped accelerate Antares’ path to a successful criticality test, and demonstrates the value of mature, scalable U.S. fuel manufacturing infrastructure.
“BWXT is proud to work with Antares and deliver the fuel necessary for this important milestone at the Idaho National Lab and for the future,” said Joe Miller, BWXT’s president for Government Operations. “Antares is moving quickly to progress from concept to criticality and we are proud to supply this team with the TRISO needed to do so.”
BWXT continues to support Antares with ongoing TRISO fuel manufacturing, reinforcing the company’s readiness to meet customer timelines and the growing national demand for advanced reactor fuel.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to the performance, design, suitability and impact of advanced reactor technology and TRISO nuclear fuel compacts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, the timing of technology development; our ability to obtain the necessary regulatory approvals, licenses and permits in a timely manner; the ability to commercialize this technology; competition in an environment of rapid technological changes; and the enforcement and protection of our intellectual property rights. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2025, and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. A U.S.-based company with approximately 10,000 employees, BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, nuclear medicine, space exploration and environmental restoration. BWXT owns and operates 17 manufacturing facilities globally, and its 14 strategic partnerships support the U.S. and Canadian governments at more than two dozen additional locations.
For more information, visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and Instagram.
United States Representative April McClain Delaney has disclosed purchases of shares in BWX Technologies (NYSE: BWXT), a major supplier of nuclear reactors and components to the U.S. Navy.
The trade is of interest as the company has close ties to national defense and the nuclear sector.
According to the filing, Delaney purchased between $1,001 and $15,000 worth of BWX Technologies on May 14, 2026. The transaction was disclosed on June 5, nearly three weeks after the trade occurred.
Data from congressional trading trackers indicates the lawmaker has reported multiple purchases that could total as much as $130,000 in BWXT stock. Since the transaction, BWXT stock has plunged over 11%, trading at $188, underperforming the broader market over the same period.
BWXT one-year stock price chart. Source: Google Finance Despite the recent decline, BWXT remains up roughly 40% over the past year and continues to trade near the middle of its 52-week range of $127.51 to $241.82.
The Maryland Democrat serves on the House Committee on Science, Space, and Technology, a position that has prompted scrutiny of investments tied to industries affected by federal policy and government spending.
BWXT fundamentals BWX Technologies is a key player in the U.S. nuclear and defense sector, supplying components and propulsion systems for the Navy while expanding into advanced reactors and commercial nuclear projects.
The Congress trade comes after several positive developments for the company. In May, BWXT reported stronger-than-expected first-quarter 2026 earnings, raised its full-year outlook, and secured more than $1.4 billion in naval nuclear propulsion contracts.
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The company has also benefited from growing investor interest in nuclear energy amid rising power demand from AI infrastructure and data centers.
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On June 11, 2026, BWX Technologies Inc BWXT shares rose 6.4% to a current price of $194.68. The stock has seen a 52-week range from a low of $133.84 to a high of $241.82, reflecting a significant volatility in its price performance. This recent increase follows a -7.5% decline over the last month, but the stock remains up 12.9% year-to-date and has surged 44.2% over the past year.
GF Value™ verdict: Current price is $194.68 vs GF Value™ of $140.23, indicating a 38.8% overvaluation.GF Score™ of 93/100, suggesting strong overall performance and potential for higher long-term returns.Notable signal: Insiders sold $2.6 million in shares over the last three months, indicating a lack of confidence from management. Is BWXT Overvalued or Undervalued? The current price of BWX Technologies Inc BWXT at $194.68 is significantly above the GF Value™ estimate of $140.23, reflecting a 38.8% overvaluation. This overvaluation suggests that the stock may not be a safe investment at its current price and indicates a lack of margin of safety for potential investors. The GF Valuation label categorizes BWXT as "Significantly Overvalued," which poses risks for those considering entering a position at this price level.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. As BWXT trades at a considerable premium to its calculated intrinsic value, potential investors should be cautious and consider the risks associated with investing in an overvalued stock.
How Does BWXT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 52.0x 31.4x Forward P/E 41.3x N/A The current P/E ratio of BWXT stands at 52.0x, which is 66% above its 5-year median P/E of 31.4x. The forward P/E of 41.3x also indicates a premium valuation. This analysis aligns with the GF Value™ verdict of overvaluation, suggesting that BWXT's stock is trading at levels that may not be sustainable based on its historical valuation metrics.
What Does BWXT's GF Score™ Tell Us? Metric Rating GF Score™ 93 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 93/100 suggests that BWX Technologies Inc is likely to generate higher long-term returns compared to its peers. The strongest areas for BWXT are its Growth (10/10) and Profitability (9/10) scores, indicating a robust business model and strong financial performance. However, the Valuation score of 5/10 raises concerns about the sustainability of its current price level, especially given the overvaluation indicated by the GF Value™ assessment.
What Are Insiders Doing with BWXT Stock? Over the last three months, insiders at BWX Technologies Inc have sold approximately $2.6 million worth of shares, with no reported buying activity. This pattern of selling may suggest a lack of confidence in the stock's future performance from management, which could be a red flag for external investors. The absence of insider buying further reinforces the caution suggested by the stock's current overvaluation.
What This Means for Investors Based on the GF Value™ analysis, BWX Technologies Inc BWXT is currently overvalued. The significant premium over its intrinsic value, combined with insider selling activity and high valuation multiples, suggests that potential investors should approach with caution. It may be prudent to wait for a more favorable entry point before considering an investment.
For the complete analysis, visit the BWX Technologies Inc BWXT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is BWXT's GF Score™?
BWXT has a GF Score™ of 93/100, indicating strong overall performance and potential for higher long-term returns.
Is BWXT overvalued or undervalued?
BWXT is currently overvalued, with a GF Value™ of $140.23 compared to its current price of $194.68, reflecting a 38.8% overvaluation.
What is BWXT's P/E ratio?
BWXT's P/E ratio is currently 52.0x, which is significantly above its 5-year median P/E of 31.4x, indicating a premium valuation consistent with the overvaluation suggested by the GF Value™.
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].
The market expects Agco (AGCO - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis farm equipment maker is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +7.3%.
Revenues are expected to be $2.3 billion, up 12.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.21% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Agco?For Agco, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.75%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Agco will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Agco would post earnings of $1.85 per share when it actually produced earnings of $2.17, delivering a surprise of +17.30%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Agco appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsCNH Industrial (CNH - Free Report) , another stock in the Zacks Manufacturing - Farm Equipment industry, is expected to report earnings per share of $0.01 for the quarter ended March 2026. This estimate points to a year-over-year change of -90%. Revenues for the quarter are expected to be $3.78 billion, down 1.2% from the year-ago quarter.
The consensus EPS estimate for CNH has been revised 8.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -214.29%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that CNH will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways ETN is set to post Q1 revenues of $7.09B (up 11.11% YoY) and EPS of $2.74 (up 0.74%).Eaton guided for 5-7% organic revenue growth, helped by R&D-driven innovation and new orders.Eaton sees revenue visibility from a growing backlog and contributions from Fibrebond and Ultra PCS. Eaton Corporation (ETN - Free Report) is expected to report an improvement in both top and bottom lines when it reports first-quarter 2026 results on May 5, before market open.
The Zacks Consensus Estimate for ETN’s first-quarter revenues is pegged at $7.09 billion, indicating an 11.11% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.74 per share. The Zacks Consensus Estimate for ETN’s first-quarter earnings indicates year-over-year growth of 0.74%.
Image Source: Zacks Investment Research
Eaton’s Solid Earnings Surprise HistoryEaton’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met in one quarter, resulting in an average surprise of 0.53%.
Image Source: Zacks Investment Research
What the Zacks Model UnveilsOur proven model predicts a likely earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Eaton has an Earnings ESP of +0.58%.
Zacks Rank: Eaton currently carries a Zacks Rank #3.
Other stocks in the same sector that possess these two factors and are likely to come out with an earnings beat this season are AGCO Corporation (AGCO - Free Report) , Eos Energy Enterprises (EOSE - Free Report) and Ferguson plc. (FERG - Free Report) are currently having Earnings ESP of +0.75%, +15.04% and +7.17%, respectively. AGCO, EOSE and FERG currently have a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped Eaton’s Q1 Earnings PerformanceEaton’s steady investment in research and development improves its existing product portfolio while supporting the development of new solutions for customers. This ongoing innovation enables the company to win additional orders and broaden its market reach, ultimately driving earnings growth. For the first quarter, Eaton expects organic revenue growth in the range of 5–7%.
Eaton’s broad product portfolio is helping it secure new orders, steadily strengthening the backlog. This growing backlog offers strong revenue visibility, and the company continues to benefit from this expanding pipeline of future business.
First-quarter earnings are likely to have benefited from contributions of the Fibrebond and Ultra PCS acquisition. Apart from acquisition-driven benefits, Eaton’s capability to address critical power management needs has driven organic growth across most of its segments and is likely supporting the earnings performance.
Eaton Stock Trading at a PremiumEaton’s stock is currently overvalued compared with its industry on a forward 12-month P/E multiple basis (P/E F12M), as shown in the chart below. ETN is currently trading at 30.45X compared with its industry average of 25.02X.
Image Source: Zacks Investment Research
Return on EquityReturn on equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
ETN’s current ROE is 25% compared with the industry’s 20.53%.
Image Source: Zacks Investment Research
Investment ThesisEaton continues to benefit from solid demand across its diverse business segments. The strong focus on innovation, backed by sustained investments in research and development, has enabled the company to consistently enhance the quality and performance of its products.
Effective power management remains crucial for the success of a wide range of projects, and Eaton has positioned itself as a dependable provider of these solutions. The company’s ability to address urgent and complex customer requirements further strengthens its competitive standing in the market.
With operations spanning nearly 160 countries and a globally distributed manufacturing base, Eaton enjoys a well-diversified revenue stream. However, this broad international presence also exposes the company to geopolitical uncertainties, which could lead to potential order disruptions and operational challenges.
The company faces unpredictable geopolitical risks, which could potentially result in order cancellations and operational challenges.
Summing UpEaton’s rising earnings estimates, along with its expanding backlog, are expected to further support the overall performance. Steady demand and a growing backlog indicate a solid pipeline of new orders.
The stock continues to appear appealing, backed by an improving earnings outlook and meaningful contributions from organic growth initiatives.
However, given Eaton’s premium valuation, existing investors may consider holding their positions, while potential investors might be better off waiting for a more attractive entry point.
Net sales of $2.3 billion, up 14.3% year-over-year Reported earnings per share of $0.76 and adjusted earnings per share(1) of $0.94 Full-year adjusted earnings per share outlook increased to approximately $6.00 Regular quarterly dividend increased to $0.30 per share $350 million in share repurchases to commence in the second quarter of 2026 , /PRNewswire/ -- AGCO (NYSE: AGCO) reported net sales of $2.3 billion for the first quarter ended March 31, 2026, an increase of 14.3% compared to the first quarter of 2025. Reported net income was $0.76 per share for the quarter and adjusted net income(1) was $0.94 per share. These results compare to reported net income of $0.14 per share and adjusted net income(1) of $0.41 per share for the first quarter of 2025. Excluding favorable foreign currency translation of 9.6%, net sales in the quarter increased 4.7% compared to the first quarter of 2025.
"AGCO delivered healthy first‑quarter sales and margin results, reflecting disciplined execution in a demanding agricultural market and dynamic global environment," said Eric Hansotia, AGCO's Chairman, President and CEO. "We outpaced the market, particularly in high‑horsepower equipment and precision agriculture, underscoring the strength of our differentiated portfolio and Farmer‑First approach. We stayed focused on supporting customers while maintaining operational flexibility with continued production alignment delivering further progress on dealer and company inventories. We achieved near‑record first‑quarter margins in Europe and continued to grow market share in high-horsepower offerings in North America."
Hansotia continued, "The first quarter results demonstrate a resilient earnings profile, a solid margin structure and positive momentum from our multi‑year structural transformation that reinforce our confidence in our strategy which is delivering increased value to our shareholders underscored by our increased quarterly dividend and next phase of share repurchases. As we progress through 2026, we remain firmly focused on executing our Farmer‑First strategy with a strong innovation pipeline and continued cost discipline to support healthy cash generation, positioning AGCO to navigate ongoing subdued demand and deliver improved performance as market fundamentals recover while keeping farmers at the center of everything we do."
First Quarter Highlights
Reported regional sales results(2): Europe/Middle East ("EME") +20.3%, North America +10.0%, Latin America ("LATAM") (17.3)%, Asia/Pacific/Africa ("APA") +31.2% Constant currency regional sales results(1)(2)(3): EME +9.0%, North America +9.0%, LATAM (30.3)%, APA +20.9% Regional operating margin performance: EME 16.2%, North America (12.5)%, LATAM (19.3)%, APA 3.2% The Company plans to initiate $350 million in share repurchases in the second quarter of 2026 The Company's Board of Directors approved an increase in the Company's regular quarterly dividend to $0.30 per share, from $0.29 per share (1) See reconciliation of non-GAAP measures in appendix.
(2) As compared to first quarter 2025.
(3) Excludes currency translation impact.
Today the Company is also announcing the strategic evolution of its long-standing AGCO Finance U.S. and Canada joint ventures to better align with evolving market dynamics and increasing regulatory and compliance requirements. The new framework will optimize regulatory capital efficiency and capital deployment while strengthening AGCO's strategic partnership with Rabobank and its commitment to providing competitive financing solutions to farmers and dealers. On April 30, 2026, the Company executed two purchase agreements with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd., respectively, for approximately $190.0 million. The proceeds will be utilized towards share repurchases. In connection with the purchase agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank that establish the commercial terms governing the future provision of financing solutions. The Company will continue to evaluate similar agreements in respect of other joint ventures with wholly owned subsidiaries of Rabobank in the future.
Market Update
Industry Unit Retail Sales
Tractors
Combines
Three Months Ended March 31, 2026
Change from
Prior Year Period
Change from
Prior Year Period
North America(4)
(8) %
(7) %
Brazil(5)
(10) %
(38) %
Western Europe(5)
7 %
(5) %
(4) Excludes compact tractors.
(5) Based on Company estimates.
Hansotia concluded, "Global agricultural markets entered 2026 with heightened focus on cost management and productivity, particularly for crop‑focused producers operating with tight margins as corn, soybean and wheat prices are near breakeven levels amid ample global supplies and evolving geopolitical and trade dynamics. Developments in the Middle East increased volatility across global energy, logistics and input markets, resulting in higher fuel, fertilizer and transportation costs that reinforced the importance of operational efficiency. In the U.S., strong harvests continued to shape grain pricing and farm profitability, while livestock producers benefited from firmer pricing and improved cash receipts, supporting a more favorable backdrop in that sector. Overall sentiment among crop producers remains cautious as input costs stay elevated and government programs continue to play an important role in supporting farm income. While demand for new equipment remains measured across many markets, it has largely aligned with current farm economics. Adoption of smart farming technologies continues to advance as farmers emphasize productivity, efficiency and returns on invested capital, even as near‑term demand across several equipment categories remains selective."
North American industry retail tractor sales were 8% lower in the first three months of 2026 compared to the same period in 2025 with the most pronounced declines occurring in higher horsepower categories. Combine unit sales were 7% lower year-over-year during the same period. Current farm economics, evolving grain export demand and elevated input costs are expected to continue to pressure industry demand throughout 2026, particularly for larger equipment.
Brazil industry retail tractor sales were 10% lower in the first three months of 2026 compared to the same period in 2025 reflecting softer demand for larger tractors partially offset by improved demand for smaller and mid-size equipment. Brazil is producing near-record crops, but profitability is under pressure due to high production costs, particularly for imported fertilizer and demand for larger equipment has not yet shown renewed growth. High financing costs, tight credit and broader political dynamics are expected to continue to constrain demand in 2026.
Western Europe industry retail tractor sales were 7% higher during the first three months of 2026 compared to the same period in 2025 with growth across most of the Western European markets. Farm income levels in 2025, supported primarily by dairy and livestock producers, together with an aging equipment fleet, provides a foundation for 2026 industry demand to remain modestly above 2025 levels.
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended March 31,
2026
2025
% change
from 2025
% change
from 2025
due to
currency
translation(6)
% change
excluding
currency
translation
North America
$ 406.4
$ 369.5
10.0 %
1.0 %
9.0 %
LATAM(7)
211.7
256.0
(17.3) %
13.0 %
(30.3) %
EME
1,600.8
1,330.5
20.3 %
11.3 %
9.0 %
APA
124.0
94.5
31.2 %
10.3 %
20.9 %
Total
$ 2,342.9
$ 2,050.5
14.3 %
9.6 %
4.7 %
(6)
See footnotes for additional disclosures.
(7)
Note: Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
North America
North American net sales increased 9.0% during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. Higher unit sales compared to the prior year supported the increase in sales. The most significant sales increases occurred in high-horsepower tractors, hay tools and sprayers. Income from operations for the first quarter of 2026 was $26.8 million lower compared to the same period in 2025 and operating margins remained negative. This decrease was primarily a result of higher tariff-related input costs.
Latin America
Net sales in the Latin American region were 30.3% lower during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. Softer industry demand resulted in lower sales across all product categories. Income from operations for the first quarter of 2026 was $47.4 million lower compared to the same period in 2025. This decrease was primarily the result of significantly lower sales and negative pricing.
Europe/Middle East
Net sales in the Europe/Middle East region increased 9.0% during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. The increased sales resulted from increased unit volumes compared to the first quarter of 2025 which included dealer inventory de-stocking. Sales growth in Germany and the United Kingdom was partially offset by declines in Turkey and France. Growth in high-horsepower tractor sales drove most of the increase. Income from operations increased $104.6 million in the first quarter of 2026 compared to the same period in 2025. This increase was primarily a result of sales growth, favorable product mix and increased production volumes.
Asia/Pacific/Africa
Asia/Pacific/Africa region net sales increased 20.9% during the first quarter of 2026 compared to the first quarter of 2025, excluding favorable currency translation impacts. Higher sales in Australia and South Africa were partially offset by lower sales across most of the Asian markets. Income from operations increased $6.7 million in the first quarter of 2026 compared to the same period in 2025 primarily due to higher levels of sales and production volumes.
Outlook
AGCO's net sales for 2026 are expected to range from $10.5 to $10.7 billion. Adjusted operating margins are projected to range from 7.5% - 8.0% reflecting continued emphasis on pricing discipline, cost management and operational alignment. Production volumes are expected to remain relatively flat to slightly lower, with cost controls and positive pricing contributing to performance. Based on these assumptions, 2026 earnings per share are targeted at approximately $6.00. These estimates reflect tariff policies as of May 5, 2026, together with AGCO's established mitigation actions and sourcing strategies. Any changes to tariff policies or related responses could affect these projections.
* * * * *
AGCO will host a conference call for this earnings announcement at 10 a.m. Eastern Time on Tuesday, May 5. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO's website at www.agcocorp.com under the "Investors" section. The webcast will also be archived immediately afterward for 12 months. A copy of this press release will be available on AGCO's website for at least 12 months following the call.
* * * * *
Safe Harbor Statement
Statements that are not historical facts, including the projections of earnings per share, production levels, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, strategy, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.
Our financial results depend entirely upon the agricultural industry, and factors that adversely affect the agricultural industry generally, including declines in the general economy, adverse weather, tariffs, increases in farm input costs, lower commodity prices, lower farm income and changes in the availability of credit for our retail customers, will adversely affect us. We maintain an independent dealer and distribution network in the markets where we sell products. The financial and operational capabilities of our dealers and distributors are critical to our ability to compete in these markets. Higher inventory levels at our dealers and high utilization of dealer credit limits as well as the financial health of our dealers could negatively impact future sales and adversely impact our performance. On April 1, 2024, we completed the acquisition of the ag assets and technologies of Trimble through the formation of a joint venture, PTx Trimble, of which we own 85%. Financing the PTx Trimble transaction significantly increased our indebtedness and interest expense. We also have made various assumptions relating to the acquisition that may not prove to be correct, and we may fail to realize all of the anticipated benefits of the acquisition. All acquisitions involve risk, and there is no certainty that the acquired business will operate as expected. Each of these items, as well as similar acquisition-related items, would adversely impact our performance. A majority of our sales and manufacturing takes place outside the United States, and many of our sales involve products that are manufactured in one country and sold in a different country. As a result, we are exposed to risks related to foreign laws, taxes and tariffs, trade restrictions, economic conditions, labor supply and relations, political conditions and governmental policies. The global trade landscape continues to be highly volatile. In 2025, the U.S. government implemented a series of tariffs on goods imported into the United States from various countries, and in many cases these measures resulted in reciprocal tariffs and other actions on goods exported from the United States. These tariffs and related actions are complex and continue to evolve as trade negotiations occur. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act ("IEEPA"), which the U.S. government had relied on to impose certain tariffs, does not authorize the administration to impose such tariffs. Following that decision, on March 4, 2026, the U.S. Court of International Trade ("CIT") ordered U.S. Customs and Border Protection ("CBP") to process refunds of tariffs imposed under IEEPA, and on March 27, 2026, the CIT issued an amended order expanding the scope of entries subject to reliquidation. On April 20, 2026, the Consolidated Administration and Processing of Entries system opened for the first phase of refund filings. We have submitted certain refund claims under this initial phase; however, these claims remain subject to CBP review, and we cannot predict the timing, amount or ultimate collectability of any refunds to which we may be entitled. The IEEPA tariffs remain subject to ongoing litigation, and the administration has announced plans to implement new tariffs under alternative statutory authority. As a result, the timing and extent of any refunds, the structure and scope of any new tariffs and the overall tariff framework remain uncertain and could create significant risks for our business. Depending on the countries affected, increases in tariffs have raised, and may continue to raise, the costs of inputs used in manufacturing our products, which in turn has impacted, and may further impact, our cost of goods sold. In addition, higher tariffs may lead to increased after‑tariff sales prices for the products we sell. Additionally, the economic uncertainty caused by the tariffs may result in customers delaying planned purchases of products and services. While impacts of the tariffs may be partially mitigated by the fact that a majority of our sales and manufacturing takes place outside the United States, there can be no guarantee that we will be able to fully offset the impact of existing or future tariffs through pricing, sourcing changes or other measures. Furthermore, retaliatory tariffs imposed by other countries on our exported products could negatively affect our sales and marketplace access in those countries. The economic uncertainty caused by these tariffs and related trade policy developments, together with uncertainty regarding their enforceability, continuation or modification, has adversely impacted, and is expected to continue to adversely impact, our sales. We cannot predict or control the impact of the conflict in Ukraine or the Middle East on our business. These conflicts have already driven increased volatility across global energy, logistics and input markets, leading to higher fuel, fertilizer, transportation and input costs, as well as general uncertainty for farmers. There is a potential for natural gas shortages, as well as shortages in other energy sources, throughout Europe, which could negatively impact our production in Europe both directly and through interrupting the supply of parts and components that we use. It is unclear how long these conditions will continue, or whether they will worsen, and what the ultimate impact on our performance will be. In addition, AGCO sells products in, and purchases parts and components from, other regions where there could be hostilities. Any hostilities likely would adversely impact our performance. Most retail sales of the products that we manufacture are financed, either by our joint ventures with Rabobank or by a bank or other private lender. Our joint ventures with Rabobank, which are controlled by Rabobank and are dependent upon Rabobank for financing as well, finance approximately 50% of the retail sales of our tractors and combines in the markets where the joint ventures operate. Any difficulty by Rabobank to continue to provide that financing, or any business decision by Rabobank as the controlling member not to fund the business or particular aspects of it (for example, a particular country or region), would require the joint ventures to find other sources of financing (which may be difficult to obtain), or us to find another source of retail financing for our customers, or our customers would be required to utilize other retail financing providers. As a result of the recent economic downturn, financing for capital equipment purchases generally has become more difficult in certain regions and in some cases, can be expensive to obtain. To the extent that financing is not available or available only at unattractive prices, our sales would be negatively impacted. In addition, Rabobank also is the lead lender in our revolving credit facility and term loans and for many years has been an important financing partner for us. Any interruption or other challenges in that relationship would require us to obtain alternative financing, which could be difficult. Both AGCO and our finance joint ventures have substantial accounts receivable from dealers and end customers, and we would be adversely impacted if the collectability of these receivables was less than optimal; this collectability is dependent upon the financial strength of the farm industry, which in turn is dependent upon the general economy and commodity prices, as well as several of the other factors listed in this section. We can experience substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products. Our success depends on the introduction of new products, particularly engines that comply with emission requirements and sustainable smart farming technology, which require substantial expenditures; there is no certainty that we can develop the necessary technology or that the technology that we develop will be attractive to farmers or available at competitive prices. Our expansion plans in emerging markets, including establishing a greater manufacturing and marketing presence and growing our use of component suppliers, could entail significant risks. Our business is increasingly subject to regulations relating to privacy and data protection, and if we violate any of those regulations, or otherwise are the victim of a cyberattack, we could be subject to significant claims, penalties and damages. Cybersecurity breaches including ransomware attacks and other means are rapidly increasing. We continue to review and improve our safeguards to minimize our exposure to future attacks. However, there always will be the potential of the risk that a cyberattack will be successful and will disrupt our business, either through shutting down our operations, destroying data, exfiltrating data or otherwise. We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. In addition, the potential of future natural gas shortages in Europe, as well as predicted overall shortages in other energy sources, could also negatively impact our production and that of our supply chain in the future. There can be no assurance that there will not be future disruptions. Any future pandemics could negatively impact our business through reduced sales, facilities closures, higher absentee rates and reduced production at both our plants and the plants that supply us with parts and components. In addition, logistical and transportation-related issues and similar problems may also arise. We have previously experienced significant inflation in a range of costs, including for parts and components, shipping and energy. While we have been able to pass along most of those costs through increased prices, there can be no assurance that we will be able to continue to do so. If we are not, it will adversely impact our performance. We face significant competition, and if we are unable to compete successfully against other agricultural equipment manufacturers, we would lose customers and our net sales and performance would decline. We have a substantial amount of indebtedness (and have incurred additional indebtedness as part of the PTx Trimble joint venture transaction), and, as a result, we are subject to certain restrictive covenants and payment obligations, as well as increased leverage generally, that may adversely affect our ability to operate and expand our business. Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2025, and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
# # # # #
AGCO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
March 31, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 514.9
$ 861.8
Accounts and notes receivable, net
1,242.3
1,079.4
Inventories, net
3,001.8
2,709.3
Other current assets
579.2
545.6
Total current assets
5,338.2
5,196.1
Property, plant and equipment, net
1,954.8
1,996.2
Right-of-use lease assets
159.4
167.3
Investments in affiliates
628.1
609.9
Deferred tax assets
932.2
905.5
Other assets
474.6
481.0
Intangible assets, net
663.0
673.0
Goodwill
1,890.6
1,898.8
Total assets
$ 12,040.9
$ 11,927.8
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current Liabilities:
Borrowings due within one year
$ 555.5
$ 117.7
Accounts payable
1,121.5
951.0
Accrued expenses
2,267.2
2,538.7
Other current liabilities
184.1
121.7
Total current liabilities
4,128.3
3,729.1
Long-term debt, less current portion and debt issuance costs
2,018.7
2,323.1
Operating lease liabilities
115.9
122.1
Pension and postretirement health care benefits
167.8
169.2
Deferred tax liabilities
123.7
126.5
Other noncurrent liabilities
894.5
885.1
Total liabilities
7,448.9
7,355.1
Redeemable noncontrolling interests
295.5
299.2
Stockholders' Equity:
Preferred stock
—
—
Common stock
0.7
0.7
Additional paid-in capital
—
0.5
Retained earnings
6,032.2
6,047.2
Accumulated other comprehensive loss
(1,736.4)
(1,774.9)
Total stockholders' equity
4,296.5
4,273.5
Total liabilities, redeemable noncontrolling interests and stockholders' equity
$ 12,040.9
$ 11,927.8
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in millions, except per share data)
Three Months Ended March 31,
2026
2025
Net sales
$ 2,342.9
$ 2,050.5
Cost of goods sold
1,761.5
1,529.9
Gross profit
581.4
520.6
Operating expenses:
Selling, general and administrative expenses
339.1
325.8
Engineering expenses
132.6
116.0
Amortization of intangibles
16.9
15.3
Impairment charges
2.1
1.1
Restructuring and business optimization expenses
10.0
13.0
Income from operations
80.7
49.4
Interest expense, net
15.2
18.5
Other expense, net
26.5
32.3
Income (loss) before income taxes and equity in net earnings of affiliates
39.0
(1.4)
Income tax provision
4.6
2.0
Income (loss) before equity in net earnings of affiliates
34.4
(3.4)
Equity in net earnings of affiliates
18.0
12.1
Net income
52.4
8.7
Net loss attributable to noncontrolling interests
2.6
1.8
Net income attributable to AGCO Corporation
$ 55.0
$ 10.5
Net income per common share attributable to AGCO Corporation
Basic
$ 0.76
$ 0.14
Diluted
$ 0.76
$ 0.14
Cash dividends declared and paid per common share
$ 0.29
$ 0.29
Weighted average number of common and common equivalent shares outstanding:
Basic
72.5
74.6
Diluted
72.7
74.7
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in millions)
Three Months Ended March 31,
2026
2025
Cash flows from operating activities:
Net income
$ 52.4
$ 8.7
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation
66.7
60.5
Amortization of intangibles
16.9
15.3
Stock compensation expense
10.4
7.3
Impairment charges
2.1
1.1
Equity in net earnings of affiliates, net of cash received
(18.0)
(12.1)
Deferred income tax benefit
(23.6)
(27.3)
Other
4.0
6.6
Changes in operating assets and liabilities:
Accounts and notes receivable, net
(177.1)
44.7
Inventories, net
(284.1)
(149.4)
Other current and noncurrent assets
(24.0)
2.5
Accounts payable
202.3
177.9
Accrued expenses
(254.2)
(384.9)
Other current and noncurrent liabilities
15.8
36.9
Total adjustments
(462.8)
(220.9)
Net cash used in operating activities
(410.4)
(212.2)
Cash flows from investing activities:
Purchases of property, plant and equipment
(44.6)
(48.2)
Proceeds from sale of property, plant and equipment
0.1
1.1
Investments in unconsolidated affiliates, net
(8.5)
(0.1)
Other
(12.6)
(4.1)
Net cash used in investing activities
(65.6)
(51.3)
Cash flows from financing activities:
Proceeds from indebtedness
187.2
531.2
Repayments of indebtedness
(31.5)
(297.0)
Payment of dividends to stockholders
(21.0)
(21.6)
Payment of minimum tax withholdings on stock compensation
(4.6)
(7.4)
Net cash provided by financing activities
130.1
205.2
Effects of exchange rate changes on cash, cash equivalents and restricted cash
(1.0)
8.2
Decrease in cash, cash equivalents and restricted cash
(346.9)
(50.1)
Cash, cash equivalents and restricted cash, beginning of period
861.8
612.7
Cash, cash equivalents and restricted cash, end of period
$ 514.9
$ 562.6
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions)
1. SEGMENT REPORTING
The Company has four operating segments which are also its reportable segments which consist of the North America, Latin America, Europe/Middle East and Asia/Pacific/Africa regions. Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change. The Company's reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company's Chief Operating Decision Maker ("CODM"), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment's performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company's selling, general and administrative expenses and engineering expenses are generally charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the three months ended March 31, 2026 and 2025 based on the Company's reportable segments are as follows (in millions):
Three Months Ended March 31,
North
America
Latin
America
Europe/
Middle East
Asia/Pacific/
Africa
Total
Segments
2026
Net sales
$ 406.4
$ 211.7
$ 1,600.8
$ 124.0
$ 2,342.9
Cost of goods sold
338.1
203.9
1,119.5
100.0
1,761.5
Selling, general and administrative expenses
82.2
36.0
142.1
17.4
277.7
Engineering expenses
37.1
12.7
80.2
2.6
132.6
Income (loss) from operations
$ (51.0)
$ (40.9)
$ 259.0
$ 4.0
$ 171.1
2025
Net sales
$ 369.5
$ 256.0
$ 1,330.5
$ 94.5
$ 2,050.5
Cost of goods sold
275.6
205.1
970.9
78.3
1,529.9
Selling, general and administrative expenses
84.8
34.2
135.2
16.4
270.6
Engineering expenses
33.3
10.2
70.0
2.5
116.0
Income (loss) from operations
$ (24.2)
$ 6.5
$ 154.4
$ (2.7)
$ 134.0
A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
Three Months Ended March 31,
2026
2025
Segment income from operations
$ 171.1
$ 134.0
Impairment charges
(2.1)
(1.1)
Corporate expenses
(51.1)
(48.1)
Amortization of intangibles
(16.9)
(15.3)
Stock compensation expense
(10.3)
(7.1)
Restructuring and business optimization expenses
(10.0)
(13.0)
Consolidated income from operations
$ 80.7
$ 49.4
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations, adjusted operating margin, adjusted net income, adjusted net income per share and net sales on a constant currency basis, each of which excludes amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.
The following is a reconciliation of reported income from operations, net income attributable to AGCO and net income per share attributable to AGCO to adjusted income from operations, adjusted net income and adjusted net income per share for the three months ended March 31, 2026 and 2025 (in millions, except per share data):
Three Months Ended March 31,
2026
2025
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)
As reported
$ 80.7
$ 55.0
$ 0.76
$ 49.4
$ 10.5
$ 0.14
Restructuring and business optimization expenses(2)
10.0
8.4
0.12
13.0
9.7
0.13
Amortization of PTx Trimble acquired intangibles(3)
14.4
11.1
0.15
12.8
7.6
0.10
Transaction-related costs(4)
0.2
—
—
7.1
2.0
0.03
Impairment charges(5)
2.1
2.1
0.03
1.1
1.1
0.01
Discrete tax items(6)
—
(8.5)
(0.12)
—
—
—
As adjusted
$ 107.4
$ 68.1
$ 0.94
$ 83.4
$ 30.9
$ 0.41
____________________________________
(1)
Net income and net income per share amounts are after tax.
(2)
The restructuring expenses recorded during the three months ended March 31, 2026 and 2025 related primarily to severance, business optimization and other related costs associated with the Company's restructuring program.
(3)
Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.
(4)
The transaction-related costs recorded during the three months ended March 31, 2026 related to the Company's divestiture of the majority of its Grain & Protein ("G&P") business. The transaction-related costs recorded during the three months ended March 31, 2025 related to the Company's divestiture of the majority of its G&P business and the formation of the PTx Trimble joint venture.
(5)
The impairment charges recorded during the three months ended March 31, 2026 and 2025 primarily related to the impairment of certain other assets.
(6)
During the three months ended March 31, 2026, the Company received a refund resulting from a favorable resolution related to a prior settlement under the Brazilian government's "Litigation Zero" tax amnesty program.
The following is a reconciliation of adjusted operating margin for the three months ended March 31, 2026 and 2025 (in millions, except margin data):
Three Months Ended March 31,
2026
2025
Net sales
$ 2,342.9
$ 2,050.5
Income from operations
80.7
49.4
Adjusted income from operations(1)
$ 107.4
$ 83.4
Operating margin(2)
3.4 %
2.4 %
Adjusted operating margin(2)
4.6 %
4.1 %
__________________________________
(1)
Refer to the previous table for the reconciliation of income from operations to adjusted income from operations.
(2)
Operating margin is defined as the ratio of income from operations divided by net sales. Adjusted operating margin is defined as the ratio of adjusted income from operations divided by net sales.
The Company does not provide a quantitative reconciliation of forward-looking, non-GAAP financial measures to the most directly comparable GAAP financial measure because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations and providing them may imply a degree of precision that would be confusing or potentially misleading.
The following table sets forth, for the three months ended March 31, 2026 and 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended March 31,
Change due to currency
translation
2026
2025
% change
from 2025
$
%
North America
$ 406.4
$ 369.5
10.0 %
$ 3.7
1.0 %
Latin America(1)
211.7
256.0
(17.3) %
33.4
13.0 %
Europe/Middle East
1,600.8
1,330.5
20.3 %
150.6
11.3 %
Asia/Pacific/Africa
124.0
94.5
31.2 %
9.7
10.3 %
$ 2,342.9
$ 2,050.5
14.3 %
$ 197.4
9.6 %
_________________________________
(1)
Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
Agco (AGCO - Free Report) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +112.81%. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.85 per share when it actually produced earnings of $2.17, delivering a surprise of +17.3%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $2.34 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.71%. This compares to year-ago revenues of $2.05 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Agco shares have added about 16.3% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Agco?While Agco has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Agco 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 $1.51 on $2.72 billion in revenues for the coming quarter and $5.75 on $10.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the bottom 12% 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.
Another stock from the same industry, Deere (DE - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on May 21.
This agricultural equipment manufacturer is expected to post quarterly earnings of $5.81 per share in its upcoming report, which represents a year-over-year change of -12.5%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Deere's revenues are expected to be $11.44 billion, up 2.4% from the year-ago quarter.
For the quarter ended March 2026, Agco (AGCO - Free Report) reported revenue of $2.34 billion, up 14.3% over the same period last year. EPS came in at $0.94, compared to $0.41 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.3 billion, representing a surprise of +1.71%. The company delivered an EPS surprise of +112.81%, with the consensus EPS estimate being $0.44.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Agco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- North America: $406.4 million compared to the $386.06 million average estimate based on four analysts. The reported number represents a change of +2.7% year over year.Net Sales- Asia/Pacific/Africa: $124 million versus $110.81 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change.Net Sales- Europe/Middle East: $1.6 billion compared to the $1.59 billion average estimate based on four analysts. The reported number represents a change of +20.3% year over year.View all Key Company Metrics for Agco here>>>
Shares of Agco have returned +6% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries. Its full range of agricultural equipment, include tractors (generated 57% of 2020 sales), combines (3%), application equipment including self-propelled sprayers (3%), hay tools and forage equipment, and implements and other equipment (12%). Sales of replacement parts generated around 14% of the company’s sales in 2018.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 20.77; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $5.79 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AGCO should be on investors' short list.
Did you analyze how Agco (AGCO - Free Report) fared in its international operations for the quarter ending March 2026? Given the widespread global presence of this farm equipment maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing AGCO's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $2.34 billion, marking an increase of 14.3% from the year-ago quarter. We will next turn our attention to dissecting AGCO's international revenue to get a clearer picture of how significant its operations are outside its main base.
Decoding AGCO's International Revenue TrendsDuring the quarter, Asia/Pacific/Africa contributed $124 million in revenue, making up 5.3% of the total revenue. When compared to the consensus estimate of $110.81 million, this meant a surprise of +11.91%. Looking back, Asia/Pacific/Africa contributed $176.8 million, or 6.1%, in the previous quarter, and $94.5 million, or 4.6%, in the same quarter of the previous year.
Europe/Middle East accounted for 68.3% of the company's total revenue during the quarter, translating to $1.6 billion. Revenues from this region represented a surprise of +0.46%, with Wall Street analysts collectively expecting $1.59 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe/Middle East contributed $2.02 billion (69.1%) and $1.33 billion (64.9%) to the total revenue, respectively.
Prospective Revenues in International MarketsThe current fiscal quarter's total revenue for Agco, as projected by Wall Street analysts, is expected to reach $2.72 billion, reflecting an increase of 3.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia/Pacific/Africa is anticipated to contribute 5.2% or $140.27 million, and Europe/Middle East 69.6% or $1.89 billion.
For the full year, the company is projected to achieve a total revenue of $10.56 billion, which signifies a rise of 4.8% from the last year. The share of this revenue from various regions is expected to be: Asia/Pacific/Africa at 5.6% ($593.47 million), and Europe/Middle East at 68.9% ($7.28 billion).
In ConclusionAgco's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Agco, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Agco's Stock Price Movement in Recent TimesThe stock has declined by 3.2% over the past month compared to the 9.1% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes Agco,has increased 2.6% during this time frame. Over the past three months, the company's shares have experienced a loss of 16.5% relative to the S&P 500's 7.1% increase. Throughout this period, the sector overall has witnessed a 1.1% decrease.
DULUTH, Ga., May 13, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO) today announced it will participate in the J.P. Morgan 2026 Global Technology, Media and Communications Conference on Tuesday, May 19, 2026. The conference will include a fireside chat with Damon Audia, Senior Vice President and Chief Financial Officer, and Brian Sorbe, President, PTx, at 10:45 a.m. Eastern Time. Investors may listen to a live webcast of the presentation by accessing the "Events" section of the company's Investor Relations website at https://investors.agcocorp.com/events-and-presentations/upcoming-events. The webcast will also be archived immediately afterward for 12 months.
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
Additional AGCO News
AGCO Honors America's Farmers at the "Great American Agriculture Celebration" in Washington, D.C. AGCO Parts Shop B2B Digital Technology Team Wins 2026 Digital Engineering Award AGCO Welcomes Ritchie Implement as New Full-Line Production Ag Dealer in Southwest Wisconsin SOURCE AGCO Corporation
I’ve been following Deere (NYSE:DE | DE Price Prediction) for years as a slow-moving industrial bet, and the most interesting line in agriculture right now sits buried inside SpaceX’s S-1 filing, where the iconic green-and-yellow brand shows up as a Starlink customer.
The partnership hiding in plain sight SpaceX’s S-1 names John Deere directly. The filing states the company has “partnered with land mobility operators, including John Deere and the California Fire Department” to provide remote monitoring and management of fleets. Starlink’s industrial pitch is straightforward: serve as “a connectivity backbone for connected equipment and telemetry-driven workflows, enabling real-time monitoring and remote operations in agriculture, energy, and logistics environments.”
That matters because terrestrial networks cover only approximately 20% of global land mass, and the most valuable acres a Deere combine touches sit firmly outside that footprint. A tractor running See & Spray AI or Harvest Settings Automation is useless if it can’t phone home.
Why connectivity is now Deere’s product CFO Josh Jepsen put numbers on this shift during the Q1 FY2026 call. Deere hit 500 million engaged acres, with approximately 25% growth in “highly engaged” acres. Jepsen tied that directly to satellite: “Nearly 1/3 of those engaged acres are highly engaged… which speaks to what we’re doing on connectivity and making sure we’re reaching deeper into the fleet.”
Customer behavior is following. 99% of combines ordered through the Early Order Program include some level of harvest automation, with nearly 80% taking the highest “ultimate package.” Think of Starlink as the toll bridge connecting that software to the field.
The financials beneath the bet Deere posted Q1 FY2026 EPS of $2.42 against a $2.10 consensus on revenue of $9.61 billion, and raised FY2026 net income guidance to $4.5 billion to $5.0 billion. CEO John May framed the cycle bluntly: “2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.”
Shares are up 21% year-to-date to $560.46, with a market cap near $151 billion.
AGCO’s open-system counterpunch AGCO (NYSE:AGCO) is attacking from below with PTx Trimble retrofit autonomy. CEO Eric Hansotia said the company “outpaced the market, particularly in high-horsepower equipment and precision agriculture.” AGCO posts Q1 2026 adjusted EPS of $0.94 against a $0.44 estimate, and is targeting $2 billion in precision ag sales by 2029. Its strategy is Android-like openness across mixed fleets. Deere’s is Apple-like vertical integration, now with a Starlink uplink.
What I’m watching The Starlink line in the S-1 is one sentence. The implication is a decade of moat. If precision agriculture is a software business that ships in green paint, Deere’s SpaceX tie-up is the connectivity layer that makes the rest defensible. If farmers revolt over right-to-repair and pick open ecosystems, AGCO’s retrofit play wins. Either way, the tractor is now a node on a satellite network, and that changes the unit of competition.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.89; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.19 to $5.97 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AGCO should be on investors' short list.
AGCO chairman and CEO Eric Hansotia forecasts the challenges farmers will face due to fertilizer and energy price pressures on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #agco #erichansotia #farmers #farming #agriculture #economy #business #finance #energy #fertilizer #iran #markets #global #world #supplychain #food #investment #commodities
DULUTH, Ga., May 29, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO) today announced it will participate in the 16th Annual Wells Fargo Industrials & Materials Conference on Tuesday, June 9, 2026. The conference will include a fireside chat with Damon Audia, Senior Vice President and Chief Financial Officer, at 9:45 a.m. Eastern Time. Investors may listen to a live webcast of the presentation by accessing the "Events" section of the company's Investor Relations website at https://investors.agcocorp.com/events-and-presentations/upcoming-events. The webcast will also be archived immediately afterward for 12 months.
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
Additional AGCO News
AGCO Honors America's Farmers at the "Great American Agriculture Celebration" in Washington, D.C. AGCO Parts Shop B2B Digital Technology Team Wins 2026 Digital Engineering Award AGCO Welcomes Ritchie Implement as New Full-Line Production Ag Dealer in Southwest Wisconsin SOURCE AGCO Corporation
Independent testing highlights how AGCO Power™ engines and driveline integration help farmers reduce fuel use while maintaining field performance.
, /PRNewswire/ -- AGCO (NYSE: AGCO) is advancing fuel saving technologies that help farmers reduce operating costs while maintaining performance, reliability and uptime during critical fieldwork, with results reflected in independent DLG (Deutsche Landwirtschafts-Gesellschaft) PowerMix testing. Those gains are being delivered across the company's Fendt®, Massey Ferguson® and Valtra® brands, supported by engine development and integrated powertrain solutions from AGCO Power™, the company's power solutions division that designs and manufactures engines and related systems.
Tractors from across AGCO brands, including (left to right) Fendt’s 700 Vario Gen 7, Massey Ferguson’s 8S Xtra and Valtra’s G Series, reflect the company’s focus on fuel-saving performance through advanced engine and driveline integration. "For farmers, fuel efficiency is about lowering operating costs without sacrificing the performance and reliability they need during critical fieldwork," said Kari Aaltonen, Director, Engineering, AGCO Power. "Across our brands, AGCO Power focuses on engineering engines and integrated powertrains that deliver measurable efficiency gains in real working conditions."
In Fendt's latest tractor platforms, the AGCO Power CORE engine family is a central part of the powertrain lineup. CORE engines are in use in several of the brand's Vario series tractors, including the CORE50 in the Fendt 600 Vario series and the CORE75 in the Fendt 700 Vario Gen7 series. Independent testing of the Fendt 700 Vario series, with its CVT transmission, demonstrated strong fuel efficiency performance across both field and transport applications, reinforcing Fendt's focus on delivering efficient power in high-horsepower tractors.
Massey Ferguson also uses AGCO Power engines in its current product lineup, and the impact is demonstrated in independent tests. In recent DLG PowerMix testing, the Massey Ferguson 8S.265 Xtra Dyna E-Power™ placed first overall for fieldwork in its category. The results highlight how AGCO Power engine integration, combined with Massey Ferguson transmission and tractor design choices, delivers measurable efficiency outcomes in real–world operating scenarios.
Across Valtra's tractor range, AGCO Power engines serve as the long-standing power source, paired with efficiency-focused operating concepts integrated into the overall driveline. Valtra's EcoPower™ operating philosophy focuses on maintaining high torque at lower engine speeds, supporting lower fuel consumption across typical field and transport applications, an approach reflected in DLG PowerMix results and other independent comparison testing cited by the brand. Valtra also uses a selective catalytic reduction (SCR) system to enable efficient combustion, contributing to improved fuel consumption compared with previous engine generations.
AGCO's Fendt, Massey Ferguson and Valtra brands are seeing measurable fuel efficiency gains through the combination of AGCO Power's proven engine technology and brand-specific tractor and powertrain integration. For farmers, that means lower fuel costs without sacrificing the performance and reliability demanded in real-world work.
Fendt, Massey Ferguson and Valtra are registered trademarks of AGCO. AGCO Power, Dyna E-Power and EcoPower are trademarks of AGCO.
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
The Trump administration is about to hand five equipment makers a margin gift, and the window to position is closing fast. I’ve been tracking this tariff-relief setup across the industrial complex for months, and per the Marketplace Morning Report’s Nova Safo, tariffs on imported agricultural and manufacturing machinery containing steel, aluminum, and copper drop from 25% to 15% starting next Monday, easing input costs on tractors, combines, bulldozers, material-handling gear, and HVAC systems. That 25% rate was itself a step down from 50%, and the White House is openly framing the cut as midterm-cycle relief for housing, manufacturing, and agriculture. Every name on this list has explicitly blamed tariffs for crushing margins in their most recent quarter. Now the headwind reverses.
#1. Carrier Global (CARR): The Stock Nobody’s Calling a Tariff Trade Start with the name that isn’t on the farm-equipment desk’s screen. Carrier Global (NYSE:CARR | CARR Price Prediction) makes HVAC systems, which sit squarely inside the White House’s targeted relief bucket: residential housing, light commercial construction, and the data center cooling boom. Tariff uncertainty has been a recurring item in Carrier’s risk disclosures, and the company’s Climate Solutions Americas residential business is the one bleeding from steel and copper costs. Cutting the derivative tariff from 25% to 15% directly relieves that pressure.
The demand side is already screaming. In Q1 2026, Carrier reported adjusted EPS of $0.57 versus a $0.51 estimate, revenue of $5.34 billion (up 2.4% year over year), and the eye-popper: data center orders up more than 500% with total commercial HVAC orders up 35%, the sixth consecutive year of double-digit growth in that segment. CEO David Gitlin said “Orders in our global Commercial HVAC business increased 35%, helped by data centers which were up over 500% in the quarter.” Strip out the residential drag (which the tariff cut directly addresses) and what’s left is an AI-cooling growth story trading like an industrial cyclical.
Shares are up about 27% year-to-date, but down roughly 4% over the past year. The market hasn’t connected the housing-relief narrative to Carrier yet. The next name on this list, by contrast, is already being priced for perfection.
#2. Caterpillar (CAT): The Heavyweight With a Record Backlog If the White House wants to stimulate construction and manufacturing, Caterpillar (NYSE:CAT) is the company those tariffs were grinding hardest. In Q4 2025, CAT booked $1.03 billion in tariff-related manufacturing costs, compressing operating margin to 13.9% from 18.0%. The Resource Industries segment took a 39% drop in segment profit with a 7-point margin compression on the same tariff dynamic. Every basis point of that relief now flips to operating leverage.
The Q1 2026 report already showed how violently this business levers up when costs cooperate. CAT delivered EPS of $5.54 versus a $4.64 estimate, revenue of $17.42 billion (up 22.2% year over year), and a Construction Industries segment that grew 38% with operating margin expanding 1.6 points to 21.4%. Power Generation, the AI data center play, posted 41% growth. CEO Joe Creed said “A record backlog provides a strong foundation for continued positive momentum.”
The stock has been a freight train: up roughly 60% year-to-date and up about 167% over the past year. That makes the next name on this list more interesting, because it just received a tariff refund check the market hasn’t fully digested.
#3. Deere & Company (DE): The Refund Check Is Already in the Mail Deere & Company (NYSE:DE) doesn’t need to wait for next Monday’s tariff cut. In Q2 fiscal 2026, Deere booked a $272 million recovery tied to the Supreme Court’s invalidation of IEEPA tariffs, flowing straight through production costs. That’s real cash, already on the P&L, before this latest derivative-tariff rollback kicks in. The next leg adds margin on top of margin.
The cycle setup matters as much as the tariff math. Deere’s Q2 FY26 numbers: EPS of $6.55, revenue of $13.37 billion (up 6.7% year over year), and Construction & Forestry net sales up 29% with margins expanded to 14.8%. The kicker comes from CEO John May, who said “2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.” A trough call from the largest player in the space is the kind of statement you build a position around.
Shares are up about 25% year-to-date, with a 9% pop in just the past week. The next stock on this list is smaller, more concentrated, and just raised its own guidance with the old tariff regime fully baked in.
#4. AGCO Corporation (AGCO): Guidance Raised Before the Cut AGCO Corporation (NYSE:AGCO) is the pure-play farm equipment name, the company most directly in the line of fire when crop prices are near breakeven and tariff costs are crushing the North American business. Management has been explicit that tariff input costs pushed the North America segment’s operating margin into negative territory. Cut the tariff, and the most painful piece of AGCO’s footprint stops bleeding.
What makes this trade asymmetric: AGCO already raised full-year 2026 guidance, and that guidance assumes tariff policies as of May 5, 2026 remain in place. Specifically: net sales of $10.50–$10.70 billion, adjusted operating margins of 7.5%–8.0%, and adjusted EPS of approximately $6.00. The Q1 report itself was a blowout: adjusted EPS of $0.94 versus a $0.44 estimate, with EMEA delivering near-record Q1 operating margin of 16.2% on $1.60 billion in sales (up 20.3%). Tariff relief on the North American business is the upside that isn’t in the guide.
Capital returns sweeten the setup: dividend raised to $0.30 per share and a $350 million buyback program starting Q2 2026. AGCO trades at a trailing P/E of 11, with the stock up 14% year-to-date. Cheap, levered, and now getting a tariff tailwind it didn’t price in. The last name on this list is cheaper still, and more leveraged to this exact catalyst than anything else on the desk.
#5. CNH Industrial (CNH): The Maximum-Torque Rebound Here’s the payoff. CNH Industrial (NYSE:CNH) straddles both agriculture and construction equipment through Case IH and New Holland. It is the most tariff-exposed name on this list, the smallest market cap, and trading near cycle lows. When the relief check arrives, CNH has the most operating leverage to it.
The number that matters: in Q1 2026, CNH revised its Construction segment tariff margin impact upward to approximately 600 basis points, from 500 bps previously. Management has explicitly stated a long-term target of 7–8% Construction adjusted EBIT margin at mid-cycle, versus current FY 2026 guidance of 1.0%–2.0%. CEO Gerrit Marx said “We believe the industry is moving through the lowest period of the current agriculture cycle, assuming global trade routes are open.” Trade routes are about to get more open.
The setup writes itself: a forward P/E of 23, PEG ratio of 0.56, analyst target price of $13.25 against a stock that’s been left for dead. Shares are up 20% year-to-date but still down 11% over the past year and down 30% over five years. The smallest name on this list, with the largest tariff exposure, sitting at the bottom of the cycle, just as the policy reverses.
The Window Five companies. One policy lever. Carrier captures the housing and AI-cooling angle the market hasn’t connected. Caterpillar and Deere are the heavyweights with backlogs and refunds already in motion. AGCO already raised guidance with the old tariffs intact. CNH carries the maximum torque on the rebound. The cut starts next Monday, per the Marketplace report, and the names most exposed to the headwind are the ones most levered to the relief. The trade is to figure out which one matches your risk tolerance before next Monday closes the gap.
A month has gone by since the last earnings report for Agco (AGCO - Free Report) . Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Agco due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for AGCO Corporation before we dive into how investors and analysts have reacted as of late.
AGCO Corp. Q1 Earnings Beat Estimates, Sales Up Y/YAGCO posted adjusted earnings of 94 cents per share for the first quarter of 2026, handily beating the Zacks Consensus Estimate of 44 cents. The quarter’s adjusted figure compared with 41 cents a year ago.
Including one-time items, earnings were 76 cents per share compared with 14 cents in the year-ago quarter.
Net sales rose 14.3% year over year to $2.34 billion and edged past the Zacks Consensus Estimate of $2.30 billion. The company pointed to disciplined execution in a challenging market, with outperformance in high-horsepower equipment and precision agriculture, even as North America industry unit retail tractor sales were down 8% year over year in the quarter.
Gross Margin Down Y/YCost of sales increased 15.1% year over year to $1.76 billion in the first quarter. Gross profit rose 11.7% year over year to $581.4 million in the reported quarter. The gross margin was 24.8% compared with the prior-year quarter’s 25.4%. Selling, general and administrative expenses were $339.1 million compared with the year-ago quarter’s $325.8 million. Adjusted income from operations increased 28.8% year over year to $107.4 million. The adjusted operating margin was 4.6% compared with the year-earlier quarter’s 4.1%.
Q1 Segmental PerformanceSales in the North America segment increased 10% year over year to $406.4 million in the first quarter. The segment reported an operating loss of $51 million compared with the prior-year quarter’s operating loss of $24.2 million.
Sales in the Latin America segment decreased 17.3% year over year to $211.7 million. The segment reported an operating loss of $40.9 million against the year-ago quarter’s operating income of $6.5 million.
The EME (Europe/Middle East) segment’s sales were $1.60 billion compared with $1.33 billion in the year-ago period, up 20.3% year over year. EME’s operating income was $259 million compared with the year-ago quarter’s $154.4 million.
Sales in the Asia/Pacific/Africa segment increased 31.2% year over year to $124 million. The segment reported an operating profit of $4 million against the prior-year quarter’s operating loss of $2.7 million.
Cash Flow UpdateAGCO Corp reported cash and cash equivalents of $514.9 million as of Mar. 31, 2026, down from $861.8 million as of Dec. 31, 2025. Net cash used in operating activities totaled $410.4 million in the quarter compared with $122.2 million in the year-ago quarter.
Lifts 2026 EPS ViewThe company increased its full-year adjusted earnings per share outlook to approximately $6.00. AGCO also raised its regular quarterly dividend to $0.30 per share from $0.29, reinforcing its commitment to returning cash to shareholders.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresCurrently, Agco has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Agco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAgco is part of the Zacks Manufacturing - Farm Equipment industry. Over the past month, CNH Industrial (CNH - Free Report) , a stock from the same industry, has gained 2%. The company reported its results for the quarter ended March 2026 more than a month ago.
CNH reported revenues of $3.83 billion in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $0.01 for the same period compares with $0.10 a year ago.
CNH is expected to post earnings of $0.11 per share for the current quarter, representing a year-over-year change of -35.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
CNH has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.55; value investors should take notice.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.25 to $5.99 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AGCO should be on investors' short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
United Bankshares (UBSI - Free Report) is headquartered in Charleston, and is in the Finance sector. The stock has seen a price change of 2.27% since the start of the year. The holding company for United Bank is paying out a dividend of $0.38 per share at the moment, with a dividend yield of 3.87% compared to the Banks - Southeast industry's yield of 2.14% and the S&P 500's yield of 1.46%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UBSI for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.54 per share, with earnings expected to increase 8.26% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UBSI presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
From the mortgage meltdown in 2009, which almost collapsed the global financial system, to the Long-Term Capital Management implosion in 1998, which required a Federal Reserve bailout, it always seems to come back to the same issues: leverage and debt. Once again, it appears we are at the same doorstep we arrive at every 10 to 15 years. This time, it’s private credit, which carries massive risks that investors often underestimate or misunderstand. Private credit loans typically flow to smaller, heavily leveraged borrowers who are most vulnerable when the economy turns.
Unlike public corporate and government bonds, there’s no liquid market to exit when trouble appears. Valuations are largely self-reported, just like in 1998 and 2009, making it difficult to know what these assets are actually worth until losses are realized. Covenant-lite structures have stripped away the early-warning protections that lenders once relied on, leaving little recourse before a borrower deteriorates. Then, when investors rush for the exits, the resulting liquidity mismatch between funds promising redemptions and assets that can’t be sold quickly can amplify a manageable problem into a serious one. That very well could be where we stand now.
We decided to screen the 24/7 Wall St. financial stocks research database and, combined with a separate AI search, we found five quality companies in the financial arena with little or no exposure to the private credit market. These companies are high-quality industry leaders with wide moats, and many are not in the business of lending money at all. We then screened the list for the stocks that paid the highest dividends, and five companies with long track records of success emerged. Four of the five are rated Buy by the top Wall Street firms we cover, and all offer outstanding value now as the major indices near correction territory.
ADP This company, founded in 1949, is a global leader in payroll and HR services and provides cloud-based software trusted by over 80% of Fortune 100 companies. Automatic Data Processing (NYSE: ADP | ADP Price Prediction) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax, and benefits administration.
ADP benefits from its dominant position in payroll and HR services, with highly recurring, subscription-like revenue. The company is a Dividend King with a moat built on switching costs, not lending. It has raised its dividend for 51 consecutive years, with a current yield of 3% and a payout ratio of 59%, which is well covered by its recurring SaaS-like payroll revenues.
Its segments include:
Employer Services Professional Employer Organization (PEO) The Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees worldwide, offering a range of technology-based HCM solutions, including its cloud-based platforms and human resource outsourcing (HRO) solutions (other than PEO).
The company’s offerings include:
Payroll Services Benefits Administration Talent Management HR Management Workforce Management Compliance Services Insurance Services Retirement Services Its PEO business, called ADP TotalSource, provides clients with employment administration outsourcing solutions. ADP serves over 1.1 million clients in 140 countries and territories.
Guggenheim has a Buy rating with a $270 target price.
Chubb Warren Buffett and Berkshire Hathaway own the shares and have increased their position over the last year. Chubb (NYSE: CB) provides a broad range of insurance and reinsurance products globally across commercial, personal, agricultural, and life segments and pays a 1.18% dividend.
Its offerings include:
Property and casualty Liability Crop and specialty insurance Reinsurance and life products such as annuities and employee benefits Risk management and claims services Chubb has raised its dividend for 17 consecutive years, with a payout ratio of just 14.6%, one of the lowest in the industry, leaving an enormous cushion. As a Property and Casualty insurer, it doesn’t rely on private credit to yield the way life insurers do.
Citigroup has a Buy rating for the shares with a $385 price target.
CME This company stands out as a top yield opportunity. CME Group (NYSE: CME) announced a $ 6.15-per-share annual variable dividend tied to its 2025 performance, in addition to a $ 1.30-per-share regular dividend for the first quarter, bringing the total yield to 4.2% based on average 2025 closing prices. Unlike private credit firms, CME generates revenue from derivatives trading and tends to benefit from market volatility rather than stability.
CME provides a derivatives marketplace that enables clients to trade futures, options, cash, and over-the-counter (OTC) markets, optimize portfolios, and analyze data. It offers a range of global benchmark products across all major asset classes, including interest rates, equity indexes, foreign exchange (FX), energy, agricultural products, and metals.
It offers futures and options trading on the CME Globex platform, fixed-income trading via BrokerTec, and FX trading on the EBS platform.
In addition, it operates a central counterparty clearing provider, CME Clearing. Its products provide a means to hedge, speculate, and allocate assets related to risks associated with, among other things, interest-rate-sensitive instruments and changes in the prices of agricultural, energy, and metal commodities. It provides clearing and settlement services for a range of exchange-traded futures and options on futures contracts, as well as OTC derivatives.
Jefferies has a Buy rating and a $356 target price.
T. Rowe Price This is a top mutual fund company with tremendous assets under management, and it pays a substantial dividend. T. Rowe Price (NASDAQ: TROW) is a financial services holding company that provides global investment advisory services to investors. This company is the standout here, with an annual dividend of $5.20/share, yielding 5.83%, and its last ex-dividend date was March 16, 2026. It manages mutual funds and retirement accounts with no private credit on the balance sheet whatsoever. The Dividend Aristocrat has $1.8 trillion in assets under management, boosted by strong performance in actively managed funds and growing retirement market focus.
The company offers a range of investment solutions across equity, fixed income, multi-asset, and alternative capabilities, catering to clients from individuals to advisors, institutions, and retirement plan sponsors.
The firm also provides specific investment advisory clients with related administrative services, including:
Distribution Mutual fund transfer agent Accounting Shareholder services Participant record-keeping Transfer agent services for defined contribution retirement plans Brokerage services Trust services Non-discretionary advisory services through model delivery It distributes its array of active investment solutions through a diverse set of distribution channels and vehicles.
These vehicles include a variety of U.S. mutual funds, collective investment trusts, exchange-traded funds, subadvised funds, separately managed accounts, and other sponsored products.
Morgan Stanley has an Equal Weight rating with a $115 price target.
United Bancshares United Bancshares (NASDAQ: UBSI) is a bank holding company with dual headquarters in Charleston, West Virginia, and Fairfax, Virginia. It primarily provides commercial and retail banking products and services in the United States. This company is the one bank on this list worth owning for income. United Bancshares has raised its dividend for 51 consecutive years, yielding 3.79%, and is a true Dividend King rooted in community banking across the mid-Atlantic region since 1839. As a traditional community bank, it has no material private credit exposure
It operates through two segments:
Community Banking Mortgage Banking The company accepts:
Checking, savings, and time and money market accounts Individual retirement accounts and demand deposits Statement and special savings NOW accounts Its loan products include:
Commercial loans and leases to small to mid-size industrial and commercial companies Construction and real estate loans, such as commercial and residential mortgages Loans secured by owner-occupied real estate Personal, student, and credit card receivables Personal, commercial, and floor plan loans Home equity loans In addition, the company offers credit cards, safe deposit boxes, wire transfers, and other banking products and services, as well as investment and security services. It also provides services to correspondent banks, including buying and selling federal funds, automated teller machine services, and internet and telephone banking services.
Furthermore, it provides community banking services, including asset management, real property title insurance, financial planning, mortgage banking, brokerage services, investment management, and retirement planning.
Piper Sandler has a Buy rating with a $47 price target.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Charleston, United Bankshares (UBSI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 5.96%. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 3.74%. In comparison, the Banks - Southeast industry's yield is 2.15%, while the S&P 500's yield is 1.51%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UBSI for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.54 per share, which represents a year-over-year growth rate of 8.26%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UBSI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Fvcbankcorp (NASDAQ:FVCB – Get Free Report) and United Bankshares (NASDAQ:UBSI – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Dividends Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.6%. Fvcbankcorp pays out 19.8% of its earnings in the form of a dividend. United Bankshares pays out 46.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Bankshares has raised its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability This table compares Fvcbankcorp and United Bankshares’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Fvcbankcorp 18.08% 8.92% 0.97% United Bankshares 25.51% 8.60% 1.40% Institutional and Insider Ownership 43.6% of Fvcbankcorp shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 10.9% of Fvcbankcorp shares are held by company insiders. Comparatively, 3.5% of United Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk Fvcbankcorp has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Valuation and Earnings This table compares Fvcbankcorp and United Bankshares”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Fvcbankcorp $122.03 million 2.23 $22.06 million $1.21 12.56 United Bankshares $1.82 billion 3.19 $464.60 million $3.27 12.75 United Bankshares has higher revenue and earnings than Fvcbankcorp. Fvcbankcorp is trading at a lower price-to-earnings ratio than United Bankshares, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a summary of current recommendations and price targets for Fvcbankcorp and United Bankshares, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Fvcbankcorp 0 1 2 0 2.67 United Bankshares 0 3 2 0 2.40 Fvcbankcorp presently has a consensus target price of $18.00, suggesting a potential upside of 18.42%. United Bankshares has a consensus target price of $44.67, suggesting a potential upside of 7.17%. Given Fvcbankcorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Fvcbankcorp is more favorable than United Bankshares.
Summary United Bankshares beats Fvcbankcorp on 11 of the 16 factors compared between the two stocks.
About Fvcbankcorp (Get Free Report)
FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.
About United Bankshares (Get Free Report)
United Bankshares, Inc., through its subsidiaries, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mortgage Banking. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, and NOW accounts. Its loan products include commercial loans and leases to small to mid-size industrial and commercial companies; construction and real estate loans, such as commercial and residential mortgages, and loans secured by owner-occupied real estate; personal, student, credit card receivables, personal, commercial, and floor plan loans; and home equity loans. In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services. Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services, as well as investment management and retirement planning services. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.
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SG Americas Securities LLC lifted its stake in United Bankshares, Inc. (NASDAQ:UBSI – Free Report) by 168.3% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 56,866 shares of the financial services provider’s stock after purchasing an additional 35,673 shares during the period. SG Americas Securities LLC’s holdings in United Bankshares were worth $2,184,000 at the end of the most recent quarter.
Other institutional investors have also made changes to their positions in the company. Norges Bank bought a new stake in United Bankshares in the second quarter valued at approximately $60,618,000. First Trust Advisors LP boosted its position in shares of United Bankshares by 367.5% during the second quarter. First Trust Advisors LP now owns 1,935,979 shares of the financial services provider’s stock worth $70,528,000 after purchasing an additional 1,521,864 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of United Bankshares by 65.5% in the 3rd quarter. AQR Capital Management LLC now owns 930,252 shares of the financial services provider’s stock valued at $34,615,000 after buying an additional 368,141 shares during the period. JPMorgan Chase & Co. grew its holdings in shares of United Bankshares by 64.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 782,292 shares of the financial services provider’s stock valued at $29,109,000 after buying an additional 307,159 shares during the period. Finally, Verition Fund Management LLC increased its position in shares of United Bankshares by 89.5% in the 3rd quarter. Verition Fund Management LLC now owns 520,964 shares of the financial services provider’s stock valued at $19,385,000 after buying an additional 246,006 shares in the last quarter. 70.80% of the stock is owned by institutional investors and hedge funds.
United Bankshares Stock Performance United Bankshares stock opened at $41.87 on Friday. The stock has a 50-day simple moving average of $41.96 and a 200 day simple moving average of $39.30. The stock has a market capitalization of $5.84 billion, a P/E ratio of 12.80 and a beta of 0.73. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.98 and a current ratio of 0.99. United Bankshares, Inc. has a 52 week low of $30.50 and a 52 week high of $45.92.
United Bankshares (NASDAQ:UBSI – Get Free Report) last announced its quarterly earnings results on Thursday, January 22nd. The financial services provider reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.05. The business had revenue of $430.85 million during the quarter, compared to the consensus estimate of $315.50 million. United Bankshares had a return on equity of 8.60% and a net margin of 25.51%.During the same quarter last year, the firm posted $0.69 EPS. Analysts expect that United Bankshares, Inc. will post 2.81 earnings per share for the current year.
United Bankshares Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were paid a dividend of $0.38 per share. The ex-dividend date was Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.6%. United Bankshares’s dividend payout ratio (DPR) is 46.48%.
Analysts Set New Price Targets A number of equities research analysts recently commented on the stock. Keefe, Bruyette & Woods raised their price objective on shares of United Bankshares from $40.00 to $43.00 and gave the stock a “market perform” rating in a report on Monday, January 26th. Stephens increased their target price on United Bankshares from $40.00 to $44.00 and gave the stock an “equal weight” rating in a report on Friday, January 23rd. Zacks Research downgraded United Bankshares from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 26th. Piper Sandler restated an “overweight” rating and issued a $47.00 price target on shares of United Bankshares in a report on Monday, January 26th. Finally, Weiss Ratings raised United Bankshares from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, February 13th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $44.67.
Check Out Our Latest Research Report on United Bankshares
United Bankshares Company Profile (Free Report)
United Bankshares, Inc, headquartered in Charleston, West Virginia, is a bank holding company that provides a full range of financial services through its primary subsidiary, United Bank. The company’s core offerings include retail and commercial banking products such as checking and savings accounts, certificates of deposit, personal and business loans, mortgages, and treasury management services. In addition, United Bankshares delivers private banking, wealth management, trust and fiduciary solutions, and investment advisory services to meet the needs of individual, corporate, and institutional clients.
United Bankshares operates an extensive branch network across West Virginia, Virginia, Maryland, the District of Columbia, Ohio, Pennsylvania, and South Carolina.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Charleston, United Bankshares (UBSI - Free Report) is a Finance stock that has seen a price change of 13.28% so far this year. The holding company for United Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.49%. This compares to the Banks - Southeast industry's yield of 2.04% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UBSI for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.54 per share, with earnings expected to increase 8.26% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UBSI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
United Bankshares has rebounded post-Piedmont Bancorp integration, delivering record FY 2025 net income and EPS and outperforming previous expectations. UBSI's operational improvements include a 1.41% ROA, 8.63% ROE, a 48.5% efficiency ratio, and a net interest margin of 3.83%, all trending positively. Asset quality has strengthened, with nonperforming loans at 0.41% and net charge-offs reduced to 0.15%, positioning UBSI well for FY 2026.
