Comerica Bank increased its stake in shares of Workiva Inc. (NYSE:WK – Free Report) by 28.8% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 151,317 shares of the software maker’s stock after acquiring an additional 33,829 shares during the period. Comerica Bank owned about 0.27% of Workiva worth $13,051,000 as of its most recent filing with the SEC.
Several other institutional investors and hedge funds have also bought and sold shares of the stock. Sanctuary Advisors LLC bought a new stake in Workiva during the fourth quarter worth about $210,000. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Workiva by 21.1% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 16,993 shares of the software maker’s stock worth $1,466,000 after acquiring an additional 2,956 shares in the last quarter. Bayforest Capital Ltd bought a new stake in Workiva during the fourth quarter worth about $246,000. First Horizon Corp raised its holdings in Workiva by 112.1% during the fourth quarter. First Horizon Corp now owns 509 shares of the software maker’s stock worth $44,000 after acquiring an additional 269 shares in the last quarter. Finally, Lakehouse Capital Pty Ltd bought a new stake in Workiva during the fourth quarter worth about $13,109,000. Institutional investors own 92.21% of the company’s stock.
Analysts Set New Price Targets WK has been the topic of several analyst reports. BMO Capital Markets dropped their target price on Workiva from $92.00 to $83.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. Robert W. Baird dropped their target price on Workiva from $115.00 to $86.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. Truist Financial reiterated a “buy” rating and set a $90.00 target price (down from $110.00) on shares of Workiva in a report on Friday, February 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Workiva in a report on Wednesday, January 21st. Finally, Stephens set a $90.00 target price on Workiva in a report on Friday, February 20th. Ten research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $95.00.
Check Out Our Latest Stock Report on Workiva
Workiva Stock Up 0.4% Shares of NYSE WK opened at $54.14 on Wednesday. The business’s 50 day moving average price is $59.07 and its two-hundred day moving average price is $75.82. The company has a market cap of $3.08 billion, a PE ratio of -112.79 and a beta of 0.68. Workiva Inc. has a twelve month low of $50.98 and a twelve month high of $97.10.
Workiva (NYSE:WK – Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The software maker reported $0.78 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.10. The business had revenue of $238.94 million for the quarter, compared to analyst estimates of $235.13 million. Workiva’s quarterly revenue was up 19.5% compared to the same quarter last year. During the same period last year, the firm earned $0.35 EPS. Workiva has set its FY 2026 guidance at 2.660-2.760 EPS and its Q1 2026 guidance at 0.640-0.670 EPS. As a group, research analysts anticipate that Workiva Inc. will post 0.53 EPS for the current fiscal year.
Workiva declared that its Board of Directors has authorized a share repurchase program on Monday, February 16th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the software maker to reacquire up to 7.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.
Workiva Profile (Free Report)
Workiva, originally founded as WebFilings in 2008, delivers a cloud-native platform designed to streamline and connect data, documents and teams for reporting and compliance. Its flagship Workiva platform supports a range of applications including financial reporting, regulatory filings, internal controls documentation, risk management and environmental, social and governance (ESG) disclosures. By centralizing data and automating workflows, the company helps organizations improve accuracy, transparency and auditability across critical reporting processes.
The Workiva platform offers modular solutions that integrate with existing enterprise systems and data sources.
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Fiscal first quarter subscription & support revenue increased by 21%
Total revenue was $247 million, up 20% year-over-year
GAAP operating margin was 6.2%, non-GAAP operating margin was 18.4%
Repurchased $50 million worth of Class A common stock under the 2024 share repurchase plan
NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE: WK), a leading, AI-powered platform for trust, transparency, and accountability, today announced financial results for its first quarter ended March 31, 2026.
“Q1 2026 was another strong quarter as organizations across every industry turn to Workiva as their platform of trust for the Office of the CFO,” said Julie Iskow, President & Chief Executive Officer. “In a world where AI is accelerating the pace of change, the tolerance for error in financial reporting, sustainability, and governance, risk and compliance is zero, and our customers increasingly rely on us to ensure that every number and every narrative is accurate, traceable, and audit-ready.”
“Our first quarter results reflect strong execution across the business, with 21% subscription revenue growth and a non-GAAP operating margin of 18.4%, a 1,600 basis-point improvement compared to a year ago,” said Barbara Larson, Chief Financial Officer. “This level of margin expansion, while sustaining durable top-line growth, demonstrates the operating leverage we are building in the business and reflects the disciplined foundation we've established to drive growth at scale.”
First Quarter 2026 Financial Results
Revenue: Total revenue for the first quarter of 2026 reached $247 million, an increase of 20% from $206 million in the first quarter of 2025. Subscription and support revenue contributed $225 million, up 21% versus the first quarter of 2025. Professional services revenue was $22 million, up slightly from the first quarter of 2025. Operating Margin: GAAP operating margin for the first quarter of 2026 was 6.2% compared to (12.0)% in the prior year's first quarter. Non-GAAP operating margin was 18.4% compared to 2.4% in the first quarter of 2025. GAAP Net Income (Loss): GAAP net income for the first quarter of 2026 was $19 million compared with a net loss of $(21) million for the prior year's first quarter. GAAP net income per basic share and diluted share was $0.33, compared with a net loss per basic and diluted share of $(0.38) in the first quarter of 2025. Non-GAAP Net Income: Non-GAAP net income for the first quarter of 2026 was $49 million compared with non-GAAP net income of $8 million in the prior year's first quarter. Non-GAAP net income per basic share and diluted share in the first quarter of 2026 was $0.86 and $0.77, respectively, compared with non-GAAP net income per basic share and diluted share of $0.15 and $0.14, respectively, in the first quarter of 2025. Liquidity: As of March 31, 2026, Workiva had cash, cash equivalents, and marketable securities totaling $863 million, compared with $892 million as of December 31, 2025. Workiva had $71 million aggregate principal amount of 1.125% convertible senior notes due in 2026, $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028, and $14 million of finance lease obligations outstanding as of March 31, 2026. Key Metrics and Recent Business Highlights
Customers: Workiva had 6,665 customers as of March 31, 2026, a net increase of 280 customers from March 31, 2025. Retention Rate: As of March 31, 2026, Workiva's gross retention rate was 97%, and the net retention rate was 112%. Net retention includes changes in both solutions and pricing for existing customers. Large Contracts: As of March 31, 2026, Workiva had 2,575 customers with an annual contract value (“ACV”) of more than $100,000, up 24% from 2,079 customers at March 31, 2025. Workiva had 605 customers with an ACV of more than $300,000, up 38% from 439 customers in the first quarter of 2025. Workiva had 265 customers with an ACV of more than $500,000, up 39% from 191 customers in the first quarter of 2025. Share Repurchase Plan: On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100 million of our outstanding Class A common stock. On February 16, 2026, our board of directors modified the repurchase plan to authorize an additional $250 million of the Company’s outstanding Class A common stock for repurchase under the plan. During the first quarter of 2026, Workiva purchased approximately 763,000 shares for $50 million under the plan. As of March 31, 2026, approximately $228 million remained available under the plan for future share repurchases. Financial Outlook
As of May 5, 2026, Workiva is providing guidance as follows:
Second Quarter 2026 Guidance:
Total revenue is expected to be in the range of $250 million to $252 million. GAAP operating margin is expected to be in the range of 1.6% to 2.2%. Non-GAAP operating margin is expected to be in the range of 14.5% to 15.0%. GAAP net income per diluted share is expected to be in the range of $0.12 to $0.15 using 57.0 million shares. Non-GAAP net income per diluted share is expected to be in the range of $0.62 to $0.65 using 63.2 million shares. Full Year 2026 Guidance:
Total revenue is expected to be in the range of $1.037 billion to $1.041 billion. GAAP operating margin is expected to be in the range of 3.8% to 4.3%. Non-GAAP operating margin is expected to be in the range of 16.0% to 16.5%. GAAP net income per diluted share is expected to be in the range of $0.89 to $0.99 using 57.1 million shares. Non-GAAP net income per diluted share is expected to be in the range of $2.85 to $2.95 using 62.3 million shares. Free cash flow margin is expected to be approximately 20%. Quarterly Conference Call
Workiva will host a webcast today at 5:00 p.m. Eastern Time to review the Company’s financial results for the first quarter 2026, in addition to discussing the Company’s outlook for the second quarter and full year 2026. The call can be accessed by dialing 1-833-630-1956 (U.S. domestic) or 1-412-317-1837 (international). Additionally, a live webcast and replay will be available at https://investor.workiva.com/news-events/events.
About Workiva
Workiva Inc. (NYSE: WK) powers trust, transparency, and accountability. Accounting, finance, sustainability, risk and audit teams from more than 6,600 organizations, including over 85% of Fortune 1,000 companies rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered collaborative platform. Learn more at workiva.com.
Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.
Workiva believes that the use of non-GAAP gross profit, non-GAAP income from operations and non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, free cash flow and free cash flow margin is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.
Non-GAAP gross profit is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets attributable to cost of revenues from gross profit. Non-GAAP income from operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from operations. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by revenues. Non-GAAP net income is calculated by excluding stock-based compensation expense, net of tax and amortization expense for acquisition-related intangible assets from net income (loss). Non-GAAP net income per share is calculated by dividing non-GAAP net income by the weighted- average shares outstanding as presented in the calculation of GAAP net income (loss) per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe they are reflective of ongoing operations.
Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenue. We consider free cash flow and free cash flow margin to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.
Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.
Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology.
Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
WORKIVA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three months ended March 31,
2026
2025
(unaudited)
Revenue
Subscription and support
$
225,355
$
185,512
Professional services
21,951
20,768
Total revenue
247,306
206,280
Cost of revenue
Subscription and support (1)
35,183
34,062
Professional services (1)
13,362
14,280
Total cost of revenue
48,545
48,342
Gross profit
198,761
157,938
Operating expenses
Research and development (1)
52,913
53,780
Sales and marketing (1)
104,485
101,671
General and administrative (1)
26,042
27,237
Total operating expenses
183,440
182,688
Income (loss) from operations
15,321
(24,750
)
Interest income
8,103
8,747
Interest expense
(3,194
)
(3,195
)
Other income (expense), net
398
(233
)
Income (loss) before provision for income taxes
20,628
(19,431
)
Provision for income taxes
1,632
1,940
Net income (loss)
$
18,996
$
(21,371
)
Net income (loss) per common share:
Basic
$
0.33
$
(0.38
)
Diluted
$
0.33
$
(0.38
)
Weighted-average common shares outstanding
Basic
56,885,568
56,157,533
Diluted
58,441,679
56,157,533
(1) Includes stock-based compensation expense as follows:
Three months ended March 31,
2026
2025
(unaudited)
Cost of revenue
Subscription and support
$
2,848
$
2,433
Professional services
1,189
996
Operating expenses
Research and development
6,401
6,050
Sales and marketing
9,847
9,751
General and administrative
8,322
8,658
WORKIVA INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, 2026
December 31, 2025
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
334,260
$
338,769
Marketable securities
529,116
552,852
Accounts receivable, net
138,109
168,984
Deferred costs
64,793
62,619
Other receivables
7,925
10,383
Prepaid expenses and other
33,939
28,778
Total current assets
1,108,142
1,162,385
Property and equipment, net
19,832
20,546
Operating lease right-of-use assets
10,577
13,986
Deferred costs, non-current
53,958
59,767
Goodwill
204,174
206,164
Intangible assets, net
21,511
22,270
Other assets
7,184
8,453
Total assets
$
1,425,378
$
1,493,571
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable
$
10,665
$
8,932
Accrued expenses and other current liabilities
89,316
113,115
Deferred revenue
514,310
547,919
Convertible senior notes, current
71,140
71,072
Finance lease obligations
623
614
Total current liabilities
686,054
741,652
Convertible senior notes, non-current
696,807
696,263
Deferred revenue, non-current
35,001
37,305
Other long-term liabilities
102
92
Operating lease liabilities, non-current
6,965
10,472
Finance lease obligations, non-current
13,064
13,223
Total liabilities
1,437,993
1,499,007
Stockholders’ deficit
Common stock
57
57
Additional paid-in-capital
699,649
720,923
Accumulated deficit
(714,856
)
(733,852
)
Accumulated other comprehensive income
2,535
7,436
Total stockholders’ deficit
(12,615
)
(5,436
)
Total liabilities and stockholders’ deficit
$
1,425,378
$
1,493,571
WORKIVA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended March 31,
2026
2025
(unaudited)
Cash flows from operating activities
Net income (loss)
$
18,996
$
(21,371
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization
2,516
2,893
Stock-based compensation expense
28,607
27,888
(Recovery of) provision for doubtful accounts
(118
)
12
Accretion of premiums and discounts on marketable securities, net
(801
)
(1,695
)
Amortization of debt discount and issuance costs
612
610
Gain on lease modification
(307
)
—
Deferred income tax
(269
)
(64
)
Changes in assets and liabilities:
Accounts receivable
30,156
30,636
Deferred costs
2,878
4,093
Operating lease right-of-use assets
1,260
1,329
Other receivables
2,439
994
Prepaid expenses and other
(5,221
)
(5,653
)
Other assets
1,233
(648
)
Accounts payable
1,971
6,651
Deferred revenue
(33,255
)
(18,438
)
Operating lease liabilities
(1,167
)
(831
)
Accrued expenses and other liabilities
(23,054
)
(33,764
)
Net cash provided by (used in) operating activities
26,476
(7,358
)
Cash flows from investing activities
Purchase of property and equipment
(728
)
(763
)
Purchase of marketable securities
(91,501
)
(102,965
)
Maturities of marketable securities
114,350
94,614
Acquisitions, net of cash acquired
(750
)
—
Purchase of intangible assets
(26
)
(19
)
Net cash provided by (used in) investing activities
21,345
(9,133
)
Cash flows from financing activities
Proceeds from option exercises
729
631
Taxes paid related to net share settlements of stock-based compensation awards
(8,662
)
(12,922
)
Proceeds from shares issued in connection with employee stock purchase plan
8,052
7,535
Repurchases of Class A common stock
(50,000
)
(40,118
)
Principal payments on finance lease obligations
(150
)
(138
)
Net cash used in financing activities
(50,031
)
(45,012
)
Effect of foreign exchange rates on cash
(2,299
)
1,889
Net decrease in cash, cash equivalents, and restricted cash
(4,509
)
(59,614
)
Cash, cash equivalents, and restricted cash at beginning of period
339,481
302,350
Cash, cash equivalents, and restricted cash at end of period
$
334,972
$
242,736
Three months ended March 31,
2026
2025
(unaudited)
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents at end of period
$
334,260
$
242,024
Restricted cash included within prepaid expenses and other at end of period
712
712
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows
$
334,972
$
242,736
TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)
Three months ended March 31,
2026
2025
Gross profit, subscription and support
$
190,172
$
151,450
Add back: Stock-based compensation
2,848
2,433
Add back: Amortization of acquisition-related intangibles
996
909
Gross profit, subscription and support, non-GAAP
$
194,016
$
154,792
Gross profit, professional services
$
8,589
$
6,488
Add back: Stock-based compensation
1,189
996
Gross profit, professional services, non-GAAP
$
9,778
$
7,484
Gross profit
$
198,761
$
157,938
Add back: Stock-based compensation
4,037
3,429
Add back: Amortization of acquisition-related intangibles
996
909
Gross profit, non-GAAP
$
203,794
$
162,276
Cost of revenue, subscription and support
$
35,183
$
34,062
Less: Stock-based compensation
2,848
2,433
Less: Amortization of acquisition-related intangibles
996
909
Cost of revenue, subscription and support, non-GAAP
$
31,339
$
30,720
Cost of revenue, professional services
$
13,362
$
14,280
Less: Stock-based compensation
1,189
996
Cost of revenue, professional services, non-GAAP
$
12,173
$
13,284
Research and development
$
52,913
$
53,780
Less: Stock-based compensation
6,401
6,050
Less: Amortization of acquisition-related intangibles
—
495
Research and development, non-GAAP
$
46,512
$
47,235
Sales and marketing
$
104,485
$
101,671
Less: Stock-based compensation
9,847
9,751
Less: Amortization of acquisition-related intangibles
491
447
Sales and marketing, non-GAAP
$
94,147
$
91,473
General and administrative
$
26,042
$
27,237
Less: Stock-based compensation
8,322
8,658
General and administrative, non-GAAP
$
17,720
$
18,579
Income (loss) from operations
$
15,321
$
(24,750
)
Add back: Stock-based compensation
28,607
27,888
Add back: Amortization of acquisition-related intangibles
1,487
1,851
Income from operations, non-GAAP
$
45,415
$
4,989
GAAP operating margin
6.2
%
(12.0
)%
Non-GAAP operating margin
18.4
%
2.4
%
Net income (loss)
$
18,996
$
(21,371
)
Add back: Stock-based compensation
28,607
27,888
Add back: Amortization of acquisition-related intangibles
1,487
1,851
Net income, non-GAAP
$
49,090
$
8,368
Net income (loss) per basic share
$
0.33
$
(0.38
)
Add back: Stock-based compensation
0.50
0.50
Add back: Amortization of acquisition-related intangibles
0.03
0.03
Net income per basic share, non-GAAP
$
0.86
$
0.15
Net income (loss) per diluted share
$
0.33
$
(0.38
)
Net income per diluted share, non-GAAP
$
0.77
$
0.14
Weighted-average common shares outstanding - diluted
58,441,679
56,157,533
Weighted-average common shares outstanding - diluted, non-GAAP
63,684,917
58,480,150
Net cash provided by (used in) operating activities
$
26,476
(7,358
)
Purchase of property and equipment
(728
)
(763
)
Free cash flow
$
25,748
$
(8,121
)
Operating cash flow margin
10.7
%
(3.6
)%
Free cash flow margin
10.4
%
(3.9
)%
TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
Three months ending
June 30, 2026
Year ending
December 31, 2026
GAAP operating margin
1.6
%
-
2.2
%
3.8
%
-
4.3
%
Add back: Stock-based compensation
12.3
%
-
12.2
%
11.6
%
-
11.6
%
Add back: Amortization of acquisition-related intangibles
0.6
%
-
0.6
%
0.6
%
-
0.6
%
Non-GAAP operating margin
14.5
%
-
15.0
%
16.0
%
-
16.5
%
Net income per diluted share, GAAP
$
0.12
-
$
0.15
$
0.89
-
$
0.99
Add back: Stock-based compensation
0.54
-
0.54
2.11
-
2.11
Add back: Amortization of acquisition-related intangibles
0.03
-
0.03
0.11
-
0.11
Effect of potentially dilutive securities
(0.07
)
-
(0.07
)
(0.26
)
-
(0.26
)
Net income per diluted share, non-GAAP
$
0.62
-
$
0.65
$
2.85
-
$
2.95
Weighted-average common shares used in calculating GAAP earnings per share, diluted
57,000,000
57,000,000
57,100,000
57,100,000
Weighted-average common shares used in calculating non-GAAP earnings per share, diluted
Workiva (WK - Free Report) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +17.25%. A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.68 per share when it actually produced earnings of $0.78, delivering a surprise of +14.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Workiva, which belongs to the Zacks Internet - Software industry, posted revenues of $247.31 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.90%. This compares to year-ago revenues of $206.28 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Workiva shares have lost about 34.4% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Workiva?While Workiva has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Workiva was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $252.25 million in revenues for the coming quarter and $2.69 on $1.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 34% 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, AudioEye (AEYE - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AudioEye's revenues are expected to be $10.54 million, up 8.3% from the year-ago quarter.
Workiva (WK - Free Report) reported $247.31 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 19.9%. EPS of $0.77 for the same period compares to $0.14 a year ago.
The reported revenue represents a surprise of +0.9% over the Zacks Consensus Estimate of $245.1 million. With the consensus EPS estimate being $0.66, the EPS surprise was +17.25%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Workiva performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Subscription and support: $225.36 million versus the three-analyst average estimate of $224.47 million. The reported number represents a year-over-year change of +21.5%.Revenue- Professional Services: $21.95 million versus the two-analyst average estimate of $20.6 million. The reported number represents a year-over-year change of +5.7%.Gross profit- Professional services (non-GAAP): $9.78 million versus the two-analyst average estimate of $8.13 million.Gross profit- Subscription and support (non-GAAP): $194.02 million versus the two-analyst average estimate of $190.19 million.View all Key Company Metrics for Workiva here>>>
Shares of Workiva have returned -5.3% 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.
Many software-as-a-service (SaaS) companies have plummeted in value in 2026, as investors worry that artificial intelligence (AI) will disrupt their businesses. Workiva (WK +0.33%) is one of the victims of the so-called "SaaSpocalypse," and following a 39% decline this year, its stock is now down 68% from its 2021 record high.
The company typically flies under the radar because of its relatively "boring" portfolio of software products, which help organizations manage their compliance obligations. However, it's generating solid revenue growth, and it's attracting high-spending customers at a lightning-fast pace.
As a result, the overwhelming majority of the analysts tracked by The Wall Street Journal have given Workiva a buy rating, and none recommend selling. Their average price target also points to strong upside over the next 12 months, so here's why it might be time to buy the dip.
Image source: Getty Images.
Workiva probably won't fall victim to AI Managers inside large organizations are often tasked with compiling data from across dozens or even hundreds of digital applications that their employees use each day. This is a time-consuming endeavor prone to errors, as critical information is manually transferred to a central location.
Workiva's software solves those problems by plugging into every major third-party productivity app, storage platform, and system of record, and automatically aggregating all of their data onto one dashboard. From there, managers can use Workiva's ready-made templates to rapidly compile reports for regulators or even their executive team.
There are a couple of reasons Workiva probably won't fall victim to the broader AI revolution. First, unlike most software companies, Workiva charges its customers based on the value it provides, rather than using a traditional per-user subscription model. This nullifies concerns that Workiva will lose revenue if AI shrinks the global workforce.
Second, data aggregation software needs to be fast, seamless, and perfectly accurate. A large company could technically use AI coding tools to build its own version of Workiva, but there is no guarantee it will be as proficient. When crafting regulatory reports, nothing less than perfection is acceptable, which is why I think most companies would prefer to rely on the experts at a third-party vendor like Workiva.
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Plus, Workiva is actually using AI to its advantage right now. It launched an AI-powered assistant called Workiva AI last year, which introduced new capabilities to its platform. With a few simple prompts, it can turn tabulated data into useful insights, or draft generic disclosures for regulatory filings. Moreover, the company launched a series of AI agents this year designed to uncover risks, identify trends in data, and summarize complex disclosures in plain language.
No sign of a spending slowdown Workiva generated $247 million in revenue during the first quarter, which was up 20% year over year, and topped the company's $245 million forecast. The strong result prompted management to issue revenue guidance of $1.039 billion for the whole of 2026, which was a modest increase of $1 million from its prior forecast.
The company's customer base grew by just 4% during the first quarter to 6,665 enterprises, but it experienced far more explosive growth among the highest-spending cohorts. The company had 605 customers with annual contract values of at least $300,000, which jumped by 38%, and 265 customers with annual contract values of at least $500,000, which surged by 39%.
Moreover, Workiva's net revenue retention rate was 112% in the first quarter, up from 110% in the same quarter last year. This suggests existing customers increased their spending by 12% over the 12-month period.
To cap off the strong quarter, Workiva held its operating costs steady, which resulted in a generally accepted accounting principles (GAAP) profit of $18.9 million. That was a big positive swing from the $21.3 million loss the company generated in the year-ago period.
Workiva stock looks cheap The Wall Street Journal tracks 13 analysts who cover Workiva stock, and 11 have given it a buy rating. The remaining two are in the overweight (bullish) camp, so no analysts recommend selling. The analysts have an average price target of $84.55, implying a potential upside of 71% in the stock over the next 12 months. The Street-high target of $102 points to an even higher potential return of 106%.
In my view, both of those targets are achievable because of Workiva's valuation. Its price-to-sales (P/S) ratio is just 3.2, which is not only the cheapest level in five years, but it's also more than 50% below its five-year average of 8.6.
WK PS Ratio data by YCharts
As a result, I think Workiva stock could be a solid addition to any diversified portfolio, especially for long-term investors who are willing to hold for the next three to five years, by which point the recent SaaSpocalypse will probably be nothing more than a memory.
On May 13, 2026, Workiva Inc WK shares fell 5.4% to a current price of $44.31. This decline is part of a broader downward trend, with the stock down 48.6% year-to-date and 38.5% over the past year. The 52-week range for WK has been between $43.34 and $97.10.
GF Value™ verdict: Current price of $44.31 is 58.0% below the GF Value™ of $105.54.GF Score™ of 64/100 indicates an above-average ranking, suggesting moderate potential for future returns.Notable signal: No insider transactions have been reported in the last 3 months. Is WK Overvalued or Undervalued? The current market price of Workiva Inc WK at $44.31 is substantially below the GF Value™ estimate of $105.54, indicating that the stock is 58.0% undervalued. This margin of safety suggests that there may be an opportunity for value-oriented investors. However, the GF Valuation label indicates a "Possible Value Trap," which signals caution. This means that while the stock appears undervalued based on GF Value™, there may be underlying issues that could prevent it from realizing this potential.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. It is essential to consider that although the valuation presents an enticing opportunity, the stock's considerable drop in price and its current valuation metrics indicate that investors should analyze the company's fundamentals closely before making any decisions.
How Does WK's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)184.6x221.5x (5-Year Median) Forward P/E15.8xN/A Currently, Workiva's P/E (TTM) of 184.6x is significantly lower than its 5-year median P/E of 221.5x, suggesting a relative undervaluation based on historical standards. Furthermore, the forward P/E of 15.8x indicates a more favorable expectation going forward. This P/E analysis aligns with the GF Value™ verdict, reinforcing the perception that the stock may be undervalued at present.
What Does WK's GF Score™ Tell Us? MetricRating GF Score™64/100 Financial Strength4/10 Profitability3/10 Growth9/10 Valuation2/10 Momentum2/10 The GF Score™ of 64/100 suggests that Workiva Inc has above-average potential for long-term returns, primarily driven by its strong Growth Rank of 9/10. However, the Valuation and Momentum Ranks, both at 2/10, indicate significant challenges in these areas, suggesting that the stock may not be performing well in terms of price appreciation and may be overvalued based on current metrics. Financial Strength and Profitability are also on the weaker side, which raises concerns about the company's ability to weather economic downturns.
What Are Insiders Doing with WK Stock? In the last three months, there have been no reported insider transactions for Workiva Inc WK . This lack of insider activity can suggest that management is not optimistic about the stock's short-term performance or that they are waiting for more favorable conditions before making moves. Insider buying typically indicates confidence in the company's future, while a lack of activity may signal caution.
What This Means for Investors Based on the analysis, Workiva Inc WK is currently undervalued according to GF Value™, with a significant margin of safety. However, the potential for a value trap must be considered, as indicated by the company's weak financial strength and valuation ranks. Investors are advised to conduct further analysis before making any decisions.
For the complete analysis, visit the Workiva Inc WK 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 WK's GF Score™?
WK's GF Score™ is 64/100, indicating above-average potential for long-term returns based on key aspects such as financial strength, profitability, and growth.
Is WK overvalued or undervalued?
WK is considered undervalued according to GF Value™, with a current price significantly below its estimated fair value.
What is WK's P/E ratio?
WK's P/E (TTM) is 184.6x, which is below its 5-year median of 221.5x, suggesting it is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE:WK), a leading, AI-powered platform for trust, transparency, and accountability, today announced its participation at the following events:
J.P. Morgan 2026 Global Technology, Media and Communications Conference: Julie Iskow, President and Chief Executive Officer, will present on May 20, 2026 at 9:20 a.m. Eastern Time. William Blair 46th Annual Growth Stock Conference: Barbara Larson, Chief Financial Officer, will present on June 3, 2026 at 4:00 p.m. Central Time. Baird 2026 Global Consumer, Technology & Services Conference: Julie Iskow, President and Chief Executive Officer, will present on June 4, 2026 at 12:15 p.m. Eastern Time. A live webcast and replay will be available for a limited time at https://investor.workiva.com/news-events/events.
About Workiva
Workiva Inc. (NYSE: WK) powers trust, transparency, and accountability. Accounting, finance, sustainability, risk and audit teams from more than 6,600 organizations, including over 85% of Fortune 1,000 companies rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered collaborative platform. Learn more at workiva.com.
Key Takeaways Stocks like ALHC, AGX, CIEN and WK were screened for strong liquidity and asset efficiency.The screen narrowed 7,700 stocks to six, with these four meeting strict efficiency and growth criteria.Each stock also boasts higher asset utilization than its industry average and solid growth attributes. Investors seeking strong returns may gain by adding stocks with robust liquidity to their portfolios. Liquidity reflects a company's ability to meet its short-term financial obligations. Stocks with high liquidity are favored by investors, as they often signal financial stability and the potential for strong growth and returns.
Investors may want to consider adding four top-ranked stocks — Alignment Healthcare, Inc. (ALHC - Free Report) , Argan, Inc. (AGX - Free Report) , Ciena Corporation (CIEN - Free Report) and Workiva, Inc (WK - Free Report) — to their portfolios to boost returns.
However, it is important to exercise caution. While high liquidity can indicate that a company is efficiently managing its short-term obligations, it may also suggest underutilization of resources. In some cases, companies with excess liquidity may not be deploying their assets effectively, which could limit growth potential.
Hence, one may consider a company’s efficiency level in addition to its liquidity while identifying prospective winners. A balanced assessment of both liquidity and efficiency can help identify truly promising investment opportunities.
Measures to Identify Liquid StocksCurrent Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short and long-term debt obligations. A current ratio — the working capital ratio — below 1 indicates that the company has more liabilities than assets. A high current ratio does not always suggest that the company is in good financial shape. It may also indicate that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding current assets, relative to current liabilities. A quick ratio of more than 1 is desirable, like the current ratio.
Cash Ratio: This is the most conservative ratio among the three, considering cash, cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet existing debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable, but it may not always represent a company’s financial condition.
Screening ParametersTo pick the best of the lot, we have added asset utilization — a widely used measure of a company’s efficiency — as one of the screening criteria. Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than that of their industry can be considered efficient.
We added our proprietary Growth Score to the screen to ensure these liquid and efficient stocks have solid growth potential.
Current Ratio, Quick Ratio, and Cash Ratio between 1 and 3: While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.
Asset utilization is more significant than the industry average: A higher asset utilization than the industry average indicates a company’s efficiency.
Zacks Rank equal to #1 (Strong Buy): Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Score less than or equal to B: Back-tested results show that stocks with a Growth Score of A or B handily beat other stocks when combined with a Zacks Rank #1 or 2 (Buy).
These criteria have narrowed the universe of more than 7,700 stocks to only six.
Here are four of the six stocks that qualified the screen:
Alignment Healthcare is a clinically focused platform designed to improve the healthcare experience for seniors registered under Medicare. Through its various Medicare Advantage plans, it caters to the various requirements and preferences of seniors.
The company recently reported first-quarter 2026 results, wherein revenues came in at $1.24 billion, up 33.3% year over year. Performance was driven by strength and execution across sales, clinical operations and member retention. At quarter-end, health plan membership was 284,800, up 30.9% from the prior year quarter.
Profitability numbers were also impressive, with adjusted EBITDA up 87.6% year over year to $37.9 million. Revenues for 2026 are now expected to be between $5.16 billion and $5.21 billion.
The Zacks Consensus Estimate for ALHC’s 2026 earnings stands at 14 cents per share, up 1 cent in the past 30 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 198.81%, on average.
Argan offers comprehensive construction and related services to the power industry through its Gemma Power Systems and Atlantic Projects company operations.
Driven by a strong demand backdrop, AGX reported fiscal 2026 revenues of $944.6 million, up 8.1% year over year. It ended the year with a backlog of $2.9 billion, after adding $2.5 billion in new contract value. Demand for its services is being driven by growth in AI and data centers and the replacement of aging power infrastructure.
The company is also maintaining a strong capital allocation strategy and returned $43 million to shareholders in fiscal 2026. Last month, AGX increased its repurchase authorization to $200 million from $150 million earlier, while extending expiration to January 2030.
The Zacks Consensus Estimate for AGX’s fiscal 2027 earnings stands at $11.44 per share, unchanged over the past seven days. The company has a Growth Score of A.
Ciena, headquartered in Hanover, MD, is a leading provider of optical networking equipment, software and services.
Ciena continues to capitalize on WAN connectivity needs across subsea, long-haul, metro networks and DCI. Driven by accelerating AI-led demand from cloud and service provider customers, Ciena’s top line in the first quarter of fiscal 2026 improved 33% year over year, the bottom line grew 111%, and order backlog was a record $7 million.
Better pricing, Hyper-Rail innovation and cost optimization are expected to boost gross margins, going ahead. For fiscal 2026, adjusted gross margins are projected at 43.5-44.5%. With the first half exceeding expectations and supply challenges being managed, Ciena now expects first and second-half gross margins to be roughly similar. It is managing supply conditions effectively and expanding capacity, but demand is expected to exceed supply for the next several quarters. For the second quarter, Ciena expects revenues of $1.5 billion (+/-$50 million). Ciena reports fiscal second-quarter earnings on June 4.
The Zacks Consensus Estimate for CIEN’s fiscal 2026 earnings is pegged at $6.16 per share, up one cent in the past 30 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 11.6%, on average.
Workiva offers an AI-driven platform for accounting, finance, risk, sustainability and audit teams. The company recently reported first-quarter 2026 results, wherein revenues jumped 20% to $247 million. The performance was driven by subscription revenue growth and disciplined execution. Subscription & support revenues increased 21% year over year to $225 million.
Customers numbered 6,665 as of March 31, 2026, up 280 customers from the prior year period. Gross retention rate was 97%, while the net retention rate was 112%. 75% of subscription revenue is now coming from multi-solution customers, up from 69% a year ago.
Looking ahead, Workiva expects second-quarter revenues to be in the range of $250 million to $252 million, with operating margins between 14.5% and 15%.
The Zacks Consensus Estimate for 2026 earnings is pegged at $2.90 per share, unchanged over the past seven days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 89.03%, on average.
Pembroke Management, LTD reported the sale of 249,456 shares of Workiva (WK +0.33%) in a May 13, 2026, SEC filing, with an estimated transaction value of $17.40 million based on the quarterly average price.
What happenedAccording to a filing with the Securities and Exchange Commission dated May 13, 2026, Pembroke Management, LTD reduced its position in Workiva by 249,456 shares. The estimated transaction value was $17.40 million, calculated using the average closing price for the quarter ending March 31, 2026. The fund held 224,900 shares at quarter-end, valued at $13.41 million.
What else to knowThis was a sell transaction. The post-trade Workiva stake is 1.94% of Pembroke Management, LTD’s 13F reportable assets under management.
Top holdings after the filing:
NASDAQ: MPWR: $37.61 million (5.4% of AUM)NYSE: REZI: $37.59 million (5.4% of AUM)NYSE: MOD: $35.95 million (5.2% of AUM)NASDAQ: AAON: $35.59 million (5.1% of AUM)NYSE: GMED: $35.20 million (5.1% of AUM)As of May 13, 2026, Workiva shares were trading at $44.31, down 38.5% over the past year and underperforming the S&P 500 by 64.94 percentage points.
The position was previously 4.2% of the fund's AUM as of the prior quarter.
Company overviewMetricValuePrice (as of market close May 13, 2026)$44.31Market capitalization$2.49 billionRevenue (TTM)$925.59 millionNet income (TTM)$14.20 millionCompany snapshotProvides cloud-based compliance and regulatory reporting solutions, including the Workiva platform for data integration, collaboration, and audit trail management.Serves public and private companies, government agencies, and higher-education institutions seeking secure, collaborative reporting tools.Operates globally with a focus on streamlining complex reporting and compliance processes for enterprise clients.Workiva operates at scale with a global footprint, delivering specialized software solutions that enable organizations to streamline complex reporting and compliance processes. The company leverages its proprietary cloud platform to drive efficiency and transparency for a diverse client base. Workiva's focus on integration and auditability positions it as a competitive provider within the enterprise software sector.
What this transaction means for investorsPembroke Management, a Montreal-based investment firm, recently disclosed the sale of approximately 249,000 shares of Workiva stock, valued at approximately $17.4 million, during the first quarter (the three months ended March 31, 2026). Here are some key takeaways for investors.
To begin, Workiva stock has struggled over the last few years. Shares have declined by about 46% over the last three years, equating to a compound annual growth rate (CAGR) of 18.7%. The benchmark S&P 500, meanwhile, has generated a total return of 84% over the same period, with a CAGR of 22.5%.
Yet, despite this lackluster performance, Workiva’s fundamentals look quite good. The company’s quarterly operating margin just hit an all-time high of 6.2%, up from -10.3% just one year ago. Similarly, quarterly revenue growth stands at nearly 20%, near the top of its three-year range.
The problem for Workiva seems to be that market sentiment has been quite bearish on the software sector, which hurts Workiva, since it is a SaaS stock.
However, for long-term investors who remain bullish on the SaaS business model, Workiva may be a stock worth considering.
Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aaon, Globus Medical, Modine Manufacturing, and Workiva. The Motley Fool recommends Monolithic Power Systems. The Motley Fool has a disclosure policy.
On May 21, 2026, Workiva Inc WK shares rose 3.0% today, bringing the current price to $50.02. The stock has seen a 52-week range between $43.34 and $97.10, reflecting significant volatility over the past year.
GF Value™ verdict: Current price is $50.02 vs GF Value™ of $105.82, indicating a potential upside of 52.7%.GF Score™ is 59/100, suggesting average performance in terms of long-term returns.Most notable signal: The momentum rank is 2/10, indicating weak price trends. Is WK Overvalued or Undervalued? According to GF Value™, Workiva Inc is currently undervalued, with a substantial margin of safety as the shares trade at $50.02 compared to a GF Value™ estimate of $105.82. This presents an opportunity for potential investors, as the stock is priced 52.7% below its intrinsic value. However, the GF Valuation label indicates that the stock may also represent a possible value trap, which suggests caution should be exercised before making any decisions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The significant gap between the current price and the GF Value™ estimate highlights the potential for recovery, but investors must consider the inherent risks associated with a low GF Score™ and weak financial strength ratings, which could impact future performance.
How Does WK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 208.4x 219.8x Forward P/E 17.8x N/A Workiva's current P/E (TTM) of 208.4x is slightly below its 5-year median P/E of 219.8x, suggesting that the stock is not trading at an elevated level compared to its historical valuation. The forward P/E of 17.8x indicates expectations of improved earnings, which aligns with the GF Value™ verdict that the stock may have substantial upside potential. This P/E analysis generally agrees with the GF Value™ assessment, reinforcing the notion that WK might be undervalued, albeit with caution advised due to other risk factors.
What Does WK's GF Score™ Tell Us? Metric Rating GF Score™ 59/100 Financial Strength 3/10 Profitability 3/10 Growth 9/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 59/100 indicates average performance in terms of long-term returns. The strongest aspect of WK's score is its growth rank of 9/10, reflecting robust potential for future earnings growth. Conversely, the weakest areas are the financial strength and valuation ranks, both at 3/10 and 2/10 respectively, which raise concerns regarding the company’s stability and current pricing. These mixed signals suggest that while growth opportunities exist, caution is warranted due to underlying financial challenges.
What Are Insiders Doing with WK Stock? There have been no insider transactions reported for Workiva Inc in the last three months. The lack of insider activity may suggest that company executives are not currently buying or selling shares, which could indicate a wait-and-see approach regarding the stock's performance. Insider buying often reflects confidence in the company's future, so this absence of activity may be a signal for cautious optimism.
What This Means for Investors Based on the GF Value™ assessment, Workiva Inc WK is currently undervalued. The significant margin of safety presents an opportunity, but potential investors should remain mindful of the risk factors associated with the company's financial health and market momentum.
For the complete analysis, visit the Workiva Inc WK 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 WK's GF Score™?
The GF Score™ for Workiva Inc is 59/100, indicating average performance and potential for long-term returns based on historical data.
Is WK overvalued or undervalued?
WK is considered undervalued according to GF Value™, with shares trading significantly below the estimated intrinsic value.
What is WK's P/E ratio?
WK's P/E (TTM) is 208.4x, which is below its 5-year median of 219.8x, suggesting the stock is trading at a relatively lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Workiva presents its Q1 earnings outlook, focusing on growth and operational execution. I emphasize revenue expansion, customer retention, and strategic investments as key drivers supporting WK's investment thesis. WK's outlook highlights disciplined cost management alongside continued innovation in compliance and reporting solutions.
On May 29, 2026, Workiva Inc WK shares rose 6.9% to $49.78. This price movement comes amid a 52-week range of $43.34 to $97.10, reflecting significant volatility and a downward trend over the past year.
GF Value™ verdict: Current price at $49.78 is 53.1% undervalued compared to GF Value™ of $106.10.GF Score™ is 59/100, indicating an average rating among its peers.Most notable signal: No insider transactions have occurred in the last 3 months. Is WK Overvalued or Undervalued? Workiva Inc's current price of $49.78 is significantly below its GF Value™ of $106.10, suggesting that the stock is undervalued by approximately 53.1%. This margin of safety could present an opportunity for investors looking for undervalued growth stocks. However, the GF Valuation label describes WK as a "Possible Value Trap," implying that while the stock appears undervalued, there are risks involved that may warrant caution. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors should consider the company's financial strength and profitability metrics, which may impact the realization of the estimated fair value. The risk of a value trap suggests that although the stock may be undervalued, it could remain stagnant or decline further due to underlying financial issues or market conditions.
How Does WK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 207.4x 218.2x Forward P/E 17.2x N/A Currently, Workiva's P/E (TTM) of 207.4x is slightly below its 5-year median of 218.2x, indicating that the stock is trading at a lower multiple compared to its historical valuation. The forward P/E of 17.2x suggests a more favorable outlook in terms of expected earnings. This P/E analysis generally aligns with the GF Value™ verdict that WK is undervalued, as it indicates potential for higher future earnings despite the current high multiple.
What Does WK's GF Score™ Tell Us? Metric Rating GF Score™ 59 Financial Strength 3/10 Profitability 3/10 Growth 9/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 59/100 indicates that Workiva Inc has room for improvement in various areas. The strongest aspect of the company is its Growth Rank at 9/10, suggesting robust potential for future growth. However, the weakest areas are Valuation and Momentum, both rated at 2/10, which may signal challenges in maintaining upward stock performance and achieving attractive valuations. This mixed score reflects the uncertainties surrounding Workiva's financial health and its ability to capitalize on growth opportunities.
What Are Insiders Doing with WK Stock? Interestingly, there have been no insider transactions in the last three months for Workiva Inc. This lack of activity may suggest that insiders are currently uncertain about the company's short-term prospects or are waiting for a more favorable market condition before making moves. Insider transactions can often provide insights into management's confidence in the company's future, and the absence of activity here may warrant additional scrutiny.
What This Means for Investors Based on the GF Value™ assessment, Workiva Inc appears to be undervalued at its current price of $49.78 compared to a GF Value™ of $106.10. However, potential investors should remain cautious due to the company's financial strength and momentum rankings, which indicate possible underlying risks.
For the complete analysis, visit the Workiva Inc WK 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 WK's GF Score™?
WK's GF Score™ is 59/100, indicating an average rating which suggests that the stock has some strengths and weaknesses across various metrics.
Is WK overvalued or undervalued?
WK is currently undervalued, with a GF Value™ of $106.10 compared to its market price of $49.78, representing a significant margin of safety.
What is WK's P/E ratio?
WK's current P/E ratio is 207.4x, which is below its 5-year median of 218.2x, suggesting it is trading at a lower valuation compared to its historical levels.
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].
Workiva (WK - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Workiva basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Workiva, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for WorkivaFor the fiscal year ending December 2026, this maker of software for managing regulatory filings is expected to earn $2.90 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Workiva. Over the past three months, the Zacks Consensus Estimate for the company has increased 80.4%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Workiva to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Nasdaq-listed Akamai will increase spending on AI and cloud infrastructure in Asia, including on advanced chips, and deepen its partnership with Nvidia.
Key Takeaways Fastly shares fell nearly 42% since the early May Q1 report despite results beating expectations. Network Services, its biggest segment, grew 11% y/y as pricing erosion stayed mid-single digits. Security revenues jumped 47% y/y to 22% of sales, but higher 2026 capex may pressure cash flow. Fastly, Inc. (FSLY - Free Report) investors have had a difficult run. Since the company released its first-quarter 2026 results in early May, the stock has fallen nearly 42%, even though the results were better than expected.
With this, the company’s shares have declined 21.7% over the past month. The decline is even more disappointing when compared with the broader market. Over the same time frame, FSLY has underperformed the industry’s decline of 3.9% and lagged the broader Zacks Computer and Technology sector and the S&P 500’s respective increases of 10.8% and 6%. Other technology players, including Zscaler, Inc. (ZS - Free Report) , Akamai Technologies, Inc. (AKAM - Free Report) and Cloudflare, Inc. (NET - Free Report) , have gained 16.2%, 78.3% and 1.3%, respectively.
Image Source: Zacks Investment Research
The sharp underperformance shows that investors are looking beyond Fastly’s headline numbers. The company reported record revenues, strong growth in security and improved adjusted profitability. However, the market remains worried about slower growth in its core business, rising infrastructure costs and tough competition.
What Is Hurting Fastly Stock?The biggest concern is the slowdown in Fastly’s core Network Services business. This segment still contributes the majority of the company’s revenues, making its performance critical to overall growth. In the first quarter, Network Services revenues increased 11% year over year. While the growth was solid, it was lower than what investors typically expect from a high-growth technology company.
Management attributed some of the moderation to tough comparisons with a particularly strong fourth quarter, which benefited from holiday e-commerce traffic and gaming downloads. However, investors remain cautious about the long-term growth trajectory of the company’s legacy CDN business.
Pricing pressure is another challenge. Fastly noted that pricing erosion in Network Services remained in the mid-single-digit range. This is common across the CDN industry, where customers receive higher discounts as traffic volumes grow. While Fastly continues to add traffic and customers, pricing dynamics could continue limiting revenue acceleration.
At the same time, Fastly is investing heavily in infrastructure to support future growth opportunities tied to AI workloads, edge computing and security offerings. The company expects infrastructure capital expenditures to rise meaningfully in 2026. Although these investments may strengthen Fastly’s platform over time, they could pressure near-term free cash flow and margins.
Competition also remains intense. Fastly competes with larger and well-capitalized players across content delivery, cybersecurity and edge computing markets. Investors are closely watching whether Fastly can continue expanding its newer security and compute businesses quickly enough to offset slower growth in Network Services.
There Are Still Some Bright Spots for FSLYFastly’s security business remains the clearest positive. Security revenues jumped 47% year over year in the first quarter and now account for 22% of total revenues. The company is gaining traction beyond its core web application firewall with products such as Bot Management, DDoS protection and API Security.
AI-related demand could also support long-term growth. Fastly believes rising AI traffic, agentic AI workloads and bot-heavy internet activity will increase demand for edge security, API management and compute solutions. Its “Other” segment, which includes compute and observability, grew 67% year over year in the first quarter, though it remains a small part of the business.
Customer trends are also improving. Fastly’s last-12-month net retention rate rose to 113%, showing that existing customers are spending more on the platform. The company also continues to win recognition for its edge development platform, which supports the case that its technology remains competitive.
What Are Analysts Saying About FSLY?Estimate revisions have been somewhat encouraging. The Zacks Consensus Estimate for current-year earnings has risen 11.5% over the past seven days to 26 cents per share, implying 123.1% growth from the year-ago reported figure. Meanwhile, the consensus estimate for next-year earnings has remained unchanged at 37 cents per share, suggesting analysts are maintaining a balanced view on Fastly’s longer-term growth prospects.
Image Source: Zacks Investment Research
Fastly’s Valuation Reflects Mixed ExpectationsEven after the steep decline, Fastly’s valuation presents a mixed picture. FSLY trades at a forward 12-month price-to-sales (P/S) ratio of 3.84, slightly above the industry average of 3.68. However, it trades below ZS, AKAM and NET, which have P/S multiples of 6.41, 5.07 and 21.99, respectively.
Image Source: Zacks Investment Research
The discount to peers shows that investors remain cautious about Fastly’s growth outlook and execution risks. The company is still heavily dependent on its slower-growing Network Services business, while higher infrastructure spending and competition could weigh on margins and free cash flow.
Should Investors Avoid FSLY for Now?Fastly delivered a solid first quarter, supported by strong growth in security revenues and improving profitability trends. The company is also seeing opportunities in AI-related workloads, edge computing and cybersecurity. However, the sharp decline in the stock shows that investors remain focused on the risks. Slower growth in the core Network Services segment, ongoing pricing pressure, higher infrastructure spending and tough competition could continue to limit near-term upside.
While Fastly’s long-term opportunities are meaningful, the risk-reward profile does not look compelling yet. Investors may want to stay on the sidelines until the company shows more consistent execution and stronger contribution from its newer growth businesses.
Fastly currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Collaboration strengthens secure, scalable agentic commerce and supports emerging Know Your Agent standards
COSTA MESA, Calif.--(BUSINESS WIRE)--Experian today announced that Akamai Technologies has joined its growing partner ecosystem, designed to further advance secure, trusted AI driven commerce through the Experian Agent Trust™ framework, alongside partner Skyfire supporting emerging payment innovation.
As AI agents begin to search, decide, and transact autonomously, they introduce a fundamental challenge for businesses: how to trust an action when it is no longer directly initiated by a human. Without a verified connection between humans and AI agents, autonomous commerce introduces new risks in fraud, misrepresentation, and unauthorized transactions. Experian Agent Trust is designed to address this challenge by establishing identity, accountability, and trust in agent driven interactions.
“Trust, security, and performance must scale alongside the growing role of AI agents in digital commerce,” said Kathleen Peters, Chief Innovation Officer at Experian. “Agentic commerce will not scale without trust. By adding Akamai to our partner ecosystem, we are strengthening the infrastructure to verify agents, the humans behind them, and their intent, enabling fast, secure, and accountable transactions. This reflects strong momentum across our ecosystem as we bring together leaders in identity, payments, and cybersecurity to shape the future of digital commerce.”
Akamai is a global leader in cybersecurity and edge computing. Its capabilities strengthen Experian’s Agent Trust framework by supporting secure delivery, controlling bot and agent activity, and helping protect transactions in real time.
“Agent-driven commerce introduces a new set of security expectations for businesses and consumers,” said Akamai’s Patrick Sullivan, Chief Technology Officer, Security Strategy. “Our work with Experian brings together identity intelligence and edge security so organizations can confidently interact with AI agents while maintaining performance and trust across every touchpoint.”
Together, Experian and Akamai help organizations authenticate AI agents and better protect digital commerce environments as this new model continues to evolve.
Advancing the KYA Standard with KYAPay
Experian, Akamai and Skyfire are active members of the KYAPay initiative (https://kyapay.org/), an extension of the Know Your Agent protocol. KYAPay introduces a standardized way to declare agent intent and enables tokenized payment credentials, supporting secure and seamless agent driven commerce experiences.
Know Your Agent provides AI agent developers with a consistent method to identify themselves, the platforms they operate on, and the users they represent. For businesses, it offers a scalable framework to authenticate AI agents and understand who they represent and why they are acting.
“Standardizing how AI agents declare intent and transact is key to unlocking the full potential of agentic commerce,” said Amir Sarhangi, CEO and co-founder of Skyfire. “Through our collaboration in Experian’s partner ecosystem and the KYAPay initiative, we enable secure, tokenized payments that unify identity, authorization, and execution in a trusted framework.”
Strengthening the Trust Stack for Agentic Commerce
Within Experian’s partner ecosystem, Akamai’s capabilities will work alongside Experian’s identity and fraud prevention services to support a layered approach to trust.
Human to Agent Binding will connect verified consumers, devices, and AI agents. Experian will issue an Experian Agent Trust token that validates identity, consent, delegated authority, and transaction risk in real time. Akamai will extend this model by adding an independent security layer of verification, trust evaluation, and enforcement at the edge.
This human to agent binding will create a secure, persistent link between verified individuals, their devices, and the AI agents acting on their behalf, enabling a continuous, auditable understanding of who the user is and how the agent behaves over time.
Beyond bot traffic, Akamai will evaluate both human and agent driven traffic in real time, validating agent identity, correlating it with behavioral signals and user context, and assessing intent. By combining declared identity with continuous analysis and edge based decisioning, Akamai will help ensure that only verified, trustworthy users and agents are able to access and transact with merchant systems.
These combined capabilities will support a more seamless path from AI generated recommendations to completed purchases, with transparency and security maintained throughout the experience.
Built for the Future of Commerce
Experian’s Agent Trust services will be platform agnostic and integrate with existing commerce and payment systems. They will be supported by the Experian Agent Registry, which maintains dynamic trust scoring for human bonded AI agents.
These capabilities will build on Experian’s leadership in identity verification and fraud prevention, helping clients avoid an estimated 15 to 19 billion dollars in fraud losses each year.
To learn more about Experian Agent Trust, go to: https://www.experian.com/agenttrust.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realize their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian and its affiliates. Other product and company names mentioned herein are the property of their respective owners.
CAMBRIDGE, Mass., May 18, 2026 (GLOBE NEWSWIRE) -- Akamai Technologies, Inc. (NASDAQ: AKAM) (“Akamai”), the cybersecurity and cloud computing company that powers and protects business online, today announced that it proposes to offer, subject to market factors and other conditions, $1.3 billion in aggregate principal amount of 0% convertible senior notes due 2030 (the “2030 Notes”) and $1.3 billion in aggregate principal amount of 0% convertible senior notes due 2032 (the “2032 Notes” and, together with the 2030 Notes, the “notes”). The notes are to be sold only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In addition, Akamai will grant the initial purchasers for the offering an option to purchase up to an additional $200.0 million in aggregate principal amount of the 2030 Notes and an additional $200.0 million in aggregate principal amount of the 2032 Notes, in each case, on the same terms and conditions. Upon conversion, Akamai will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of Akamai’s common stock or a combination of cash and shares of common stock, at Akamai’s election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes being converted. The notes will not bear regular interest, and the principal amount of the notes will not accrete. Any special interest on the notes will be payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026 (if and to the extent special interest is then payable). The 2030 Notes will mature on May 15, 2030 and the 2032 Notes will mature on May 15, 2032, in each case, unless earlier repurchased or converted in accordance with their terms prior to such date. The initial conversion rate, offering price and other terms of the 2030 Notes and the 2032 Notes will be determined at the time of pricing the offering. The notes will be senior unsecured obligations of Akamai.
Subject to costs and expenses related to the convertible note hedge and warrant transactions and share repurchases described below, Akamai intends to use the remaining net proceeds from the offering to fund the accelerated capital expenditure requirements of the Cloud Infrastructure Services (CIS) business, prioritizing the rapid build-out of Akamai’s global footprint, and for general corporate purposes.
Akamai intends to use a portion of the net proceeds from the offering to pay the cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds to Akamai from the sale of warrants pursuant to the warrant transactions described below). If the initial purchasers exercise their option to purchase additional notes, Akamai expects to sell additional warrants and use a portion of the net proceeds from the sale of such additional notes, together with the proceeds from the additional warrant transactions, to enter into additional convertible note hedge transactions with respect to the relevant series of notes as to which the option was exercised.
Akamai also intends to use approximately $350 million of the net proceeds from the offering to repurchase shares of its common stock from purchasers of the notes in the offering in privately-negotiated transactions effected through one or more of the initial purchasers or their affiliates. Akamai expects the purchase price per share in such transactions to equal the closing price per share of Akamai’s common stock on the date of pricing of the offering. The amount of Akamai’s common stock that Akamai actually repurchases may be more or less than $350 million.
If Akamai undergoes a fundamental change prior to the maturity date of the notes, subject to certain conditions and limited exceptions, holders may require Akamai to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid special interest to, but excluding, the fundamental change repurchase date.
In connection with the pricing of the notes, Akamai expects to enter into convertible note hedge transactions and warrant transactions with one or more of the initial purchasers of the notes and/or their respective affiliates and/or other financial institutions (the “Option Counterparties”). The convertible note hedge transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the same number of shares of Akamai’s common stock that will initially underlie the notes, including any notes purchased by the initial purchasers pursuant to their option to purchase additional notes. The convertible note hedge transactions are expected generally to reduce the potential dilution with respect to Akamai’s common stock upon any conversion of the notes and/or offset any cash payments Akamai is required to make in excess of the principal amount of converted notes, as the case may be. The warrants will cover, subject to customary anti-dilution adjustments, the same number of shares of Akamai’s common stock. The warrant transactions could separately have a dilutive effect with respect to Akamai’s common stock to the extent that the market price per share of Akamai’s common stock exceeds the strike price of the warrants, unless Akamai elects, subject to certain conditions, to settle the warrants in cash.
In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the Option Counterparties and/or their respective affiliates expect to purchase shares of Akamai’s common stock and/or enter into various derivative transactions with respect to Akamai’s common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Akamai’s common stock or the notes at that time. In addition, the Option Counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Akamai’s common stock and/or purchasing or selling Akamai’s common stock or other securities of Akamai in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so during any observation period related to a conversion of the notes or following any repurchase of the notes by Akamai). This activity could also cause or avoid an increase or a decrease in the market price of Akamai’s common stock or the notes, which could affect the ability of holders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the amount and value of the consideration that holders receive upon conversion of the notes.
This press release is being issued pursuant to Rule 135c under the Securities Act and shall not constitute an offer to sell nor a solicitation of an offer to buy any of these securities (including the shares of Akamai’s common stock, if any, issuable upon conversion of the notes). Any offer of notes will be made only by means of a private offering memorandum. The notes and the common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
# # #
The release contains information about future expectations, plans and prospects of Akamai’s management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements with respect to Akamai’s expectations to complete the proposed offering of the notes, its use of proceeds from the offering and the effect of the concurrent stock repurchase and the convertible note hedge and warrant transactions. There can be no assurance that Akamai will be able to complete the proposed notes offering on the anticipated terms, or at all. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the terms of the notes and the offering, risks and uncertainties related to whether or not Akamai will consummate the offering, the impact of general economic, industry, market or political conditions and other factors that are discussed in Akamai’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.
In addition, the statements in this press release represent Akamai’s expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai’s expectations or beliefs as of any date subsequent to the date of this press release.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence.
(Editor’s note: The future prices of benchmark tracking ETFs and the headline were updated in the story.)
U.S. stock futures were lower as the Nasdaq 100 index fell on Tuesday following Monday’s mixed close.
Meanwhile, the 10-year Treasury bond yielded 4.60%, and the two-year bond was at 4.06%. The CME Group's FedWatch tool‘s projections show markets pricing a 98.8% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
IndexPerformance (+/-)Dow Jones-0.02%S&P 500-0.13%Nasdaq 100-0.24%Russell 2000-0.09%Stocks In Focus XP Inc. (NASDAQ:XP) was 6% lower in premarket on Tuesday as it reported worse-than-expected first-quarter financial results. The company also named Gustavo Alejo Viviani as CFO starting Aug. 3. Benzinga’s Edge Stock Rankings indicate that XP maintains a weak price trend in the long term, short, and medium terms, with a solid value score. Akamai Technologies Akamai Technologies Inc. (NASDAQ:AKAM) declined 2.50% after announcing plans to commence a $1.3 billion senior notes offering. Benzinga’s Edge Stock Rankings indicate that AKAM maintains a strong price trend in the long, medium, and short terms, with a moderate growth score. Atmos Energy Atmos Energy Corp. (NYSE:ATO) jumped 10.13% following its strong second-quarter earnings with a net income of $581.9 million and raised its annual dividend by 14.9% to $4.00 per share. Benzinga’s Edge Stock Rankings indicate that ATO maintains a strong price trend in the long term but a weak trend in the short and medium terms, with a moderate quality score. General Electric General Electric Co. (NYSE:GE) was up 0.17% as Japan Airlines Co. Ltd. signed a 10-year maintenance and overhaul deal with GE Aerospace to cover its Boeing 787 fleet. Benzinga’s Edge Stock Rankings indicate that GE maintains a weak price trend in the short, medium, and long terms, with a moderate growth ranking. Toll Brothers Toll Brothers Inc. (NYSE:TOL) declined 0.13% as analysts expect it to report earnings of $2.58 per share on revenue of $2.41 billion after the closing bell. Benzinga’s Edge Stock Rankings indicate that TOL maintains a weak price trend in the long, medium, and short terms, with a solid value score. Cues From Last SessionEnergy, financial, and consumer staples stocks recorded the biggest gains on Monday as most S&P 500 sectors closed on a positive note. Meanwhile, information technology and industrials stocks closed the session lower.
Insights From AnalystsAccording to Jeffrey Roach, Chief Economist at LPL Financial, the U.S. economy “muddles on” despite facing localized headwinds. While geopolitical tensions in the Middle East dominate investor focus, Roach expects the economic expansion to remain resilient.
He notes that “the growth hit remains manageable and should fade as trade adjusts with the economy likely skirting recession.” Under his team’s baseline expectations, supply chain frictions are forecast to subtract 0.2 percentage points from second-quarter real GDP and 0.3 percentage points from the third quarter.
Crucially, Roach believes these pressures “pose a greater risk to inflation than to economic growth.” If the conflict persists through the summer, it could plausibly add a full percentage point to inflation this year.
Regarding the U.S. stock market, diplomatic negotiations have supported equities. Given the improving macroeconomic backdrop, Roach’s committee recently moved its recommendation to a “tactical overweight” for equities.
Upcoming Economic DataHere's what investors will be keeping an eye on Tuesday.
April’s pending home sales data will be released by 10:00 a.m., Philadelphia Fed President Anna Paulson will speak at 7:00 p.m., and Atlanta Fed First Vice President Cheryl Venable will deliver closing remarks at 7:45 p.m. ET. Commodities, Crypto, And Global Equity MarketsCrude oil futures were trading lower in the early New York session by 1.24% to hover around $103.09 per barrel.
Gold Spot US Dollar fell 0.45% to hover around $4,545.43 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.01% higher at the 99.2060 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.31% higher at $77,105.03 per coin, as per the last 24 hours.
Asian markets closed mixed on Tuesday, as Japan's Nikkei 225 and South Korea's Kospi indices fell. While Australia's ASX 200, India’s Nifty 50, China’s CSI 300, and Hong Kong's Hang Seng indices rose. European markets were higher in early trade.
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Optimizing brand content for AI search and agentic trafficAs its own first customer, Akamai increased citations by 85% and brand presence by 364%AI bot traffic grew more than 300% year over year
CAMBRIDGE, Mass., May 19, 2026 (GLOBE NEWSWIRE) -- As more people turn to AI to search and navigate the internet, Akamai (NASDAQ: AKAM) today introduced AI Brand Presence to help organizations optimize their content for AI search and traffic. AI Brand Presence enables businesses to automatically translate their website content for LLM search and AI agents, while monitoring bot activity and providing security at the edge.
Consumers are increasingly engaging with brands through AI-generated search answers rather than direct website visits. The AI intermediary means fewer human visits and more bot activity on company websites. Akamai recently observed a 300% annual increase in AI bot traffic, and studies have found that nearly 60% of searches now end without a click. This seismic shift in internet behavior is breaking long-established marketing funnels, while introducing new risks around the veracity and visibility of information that’s retrieved and shared by LLMs.
“The assumptions underpinning 20 years of digital strategy are breaking down in real time. We’re witnessing one of the most significant shifts in digital history, a move from human-driven search to machine-mediated discovery,” said Patrick Sullivan, CTO of Security Strategy at Akamai. “Businesses face the risk of digital invisibility. If you’re not the primary source of truth for the AI models your customers trust, you effectively don’t exist.”
Purpose-built for the AI-driven web
Akamai AI Brand Presence combines two core capabilities:
AI-optimized context delivery: AI Brand Presence translates a website’s information into a format that AI can easily understand. This process happens automatically in the background, requires no back-end updates, and has no impact on the human visitor experience.Visibility and insights: A single dashboard reveals which AI models are visiting a site and what content they are consuming. It also tracks how those AI interactions turn into real traffic and customer engagement. Together, these capabilities enable brands to build an AI-first digital presence, ready for how users are beginning to discover, decide, and transact through AI across commerce and beyond. This approach is known as generative engine optimization (GEO).
Delivering outcomes across marketing and digital teams
With Akamai AI Brand Presence, businesses can:
Help AI platforms accurately represent their brand, products, and messagingIncrease visibility in AI-generated responses and recommendationsUnderstand how AI systems interact with their content and influence trafficAdapt content strategies based on real-time AI consumption patternsControl how and where content is surfaced across AI ecosystems Unlike traditional optimization approaches, AI Brand Presence operates at the edge, enabling real-time adaptation of content delivery without requiring back-end changes and disrupting existing workflows or the human visitor experience.
Owning the narrative
Akamai was the first customer for AI Brand Presence, piloting the technology on its own global website. By serving an AI-ready version of the site alongside the “human” one, Akamai made its information significantly easier for machines to digest, shrinking massive data loads by 99%. This shift away from traditional search produced immediate results: an 85% increase in citations and a 364% surge in brand presence for general searches where the brand wasn’t even mentioned by name. In ChatGPT alone, Akamai’s presence jumped 133% compared to competitors, demonstrating that actively managing how LLMs see a brand can be critical to ensuring the right message reaches the customer.
“As marketers, we can’t afford to be passive observers of the AI shift; we must drive the change we want to see. We spent years building our brand, but if we don’t guide how AI models find and share our content, we’re essentially giving up control over our own reputation,” said Kim Salem-Jackson, Chief Marketing Officer, Akamai. “By testing this technology on our own site first, we proved that brands can reclaim their narrative. The criteria for a great website have changed. In addition to providing an exceptional human user experience, you need to optimize your site for AI comprehension and retrieval so that you’re the source that AI trusts for its answers. With the launch of AI Brand Presence, we’re giving marketers the keys to their digital identity again, making sure their brand shows up correctly every time.”
Built for the future of agentic interactions
AI Brand Presence builds on Akamai’s broader strategy to support the evolving AI ecosystem, where autonomous agents increasingly act on behalf of users. By combining AI-optimized delivery with deep visibility into AI traffic, Akamai is enabling brands to better understand and influence how they are represented in these emerging interactions.
Akamai AI Brand Presence will be available in limited availability through a phased rollout, beginning with select customers in North America.
For more information, visit https://www.akamai.com/products/ai-brand-presence.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
Key Takeaways FSLY's Other revenues rose 67% year over year to $8 million in first-quarter 2026. FSLY posted a record $1.6 million jump from the prior quarter for Other revenues. FSLY linked Compute growth to AI demand, including edge inference and agentic AI tests. Fastly, Inc. (FSLY - Free Report) is seeing growing traction in its Compute business as enterprises increasingly explore AI-driven workloads at the edge. In first-quarter 2026, Fastly’s Other revenues, which include Compute and Observability solutions, soared 67% year over year to $8 million. The company also reported a record $1.6 million sequential increase in the category, representing its largest quarter-over-quarter revenue step-up to date.
The acceleration appears closely tied to rising AI-related demand. Fastly said that increased customer requirements in AI and related areas contributed to Compute momentum during the quarter. The company also noted growing customer interest in features designed to improve interoperability with large language models, enabling workloads to be processed closer to end users through edge infrastructure.
Fastly indicated that customers are increasingly evaluating agentic AI and edge inference use cases, with the company working alongside enterprises on deployment and optimization efforts. It also highlighted that traffic associated with AI agents and automated workloads is becoming a larger share of internet activity over time.
Even with the strong growth, the company characterized many of these AI opportunities as still being in the early stages. Fastly described its current approach as co-innovation with customers on large and complex opportunities tied to AI and edge computing.
The quarter nevertheless showed that Compute is becoming a more meaningful contributor within Fastly’s platform strategy. The sharp growth rate and record sequential increase suggest that AI-related workloads are beginning to create measurable demand for the company’s edge compute offerings.
AKAM & NET Ride on Rising AI Infrastructure DemandAkamai Technologies, Inc. (AKAM - Free Report) is also benefiting from the AI-driven surge in edge and cloud infrastructure demand. In first-quarter 2026, AKAM’s Cloud Infrastructure Services revenues jumped 40% year over year to $95 million, supported by growing AI inference and distributed compute workloads. Akamai Technologies also announced a landmark seven-year $1.8 billion cloud infrastructure agreement with a leading frontier AI model company, while management highlighted a rapidly expanding AI-specific pipeline.
Cloudflare, Inc. (NET - Free Report) is witnessing similar momentum from accelerating AI adoption trends. NET reported first-quarter 2026 revenue growth of 34% year over year to $639.8 million, with management describing AI as the company’s “biggest tailwind” ever. Cloudflare noted strong growth in AI and agentic workloads, including hundreds of billions of agentic requests running through its network every month.
FSLY Stock Price Performance, Valuation & EstimatesShares of Fastly have surged 115.6% over the past year against the industry’s decline of 14.7%.
FSLY Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, FSLY trades at a forward price-to-sales ratio of 3.49, lower than the industry’s average of 3.73.
FSLY’s Valuation Compared to Industry
Image Source: Zacks Investment Research
CAMBRIDGE, Mass., May 19, 2026 (GLOBE NEWSWIRE) -- Akamai Technologies, Inc. (NASDAQ: AKAM) (“Akamai”), the cybersecurity and cloud computing company that powers and protects business online, today announced that it has priced its private offering of $1.5 billion in aggregate principal amount of 0% convertible senior notes due 2030 (the “2030 Notes”) and $1.5 billion in aggregate principal amount of 0% convertible senior notes due 2032 (the “2032 Notes” and, together with the 2030 Notes, the “notes”). The notes will be sold only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In addition, Akamai has granted the initial purchasers for the offering an option to purchase up to an additional $250.0 million in aggregate principal amount of the 2030 Notes and an additional $250.0 million in aggregate principal amount of the 2032 Notes, in each case, on the same terms and conditions. The sale of the notes is expected to close on May 22, 2026, subject to customary closing conditions. The offering was upsized from the previously announced offering of $1.3 billion in aggregate principal amount of the 2030 Notes and $1.3 billion in aggregate principal amount of the 2032 Notes.
The notes will be senior unsecured obligations of Akamai. The 2030 Notes will mature on May 15, 2030 and the 2032 Notes will mature on May 15, 2032, in each case, unless earlier converted or repurchased in accordance with their terms. The notes will not bear regular interest, and the principal amount of the notes will not accrete. Any special interest will be payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026 (if and to the extent special interest is then payable). The 2030 Notes will be convertible prior to the close of business on the business day immediately preceding January 15, 2030 and the 2032 Notes will be convertible prior to the close of business on the business day immediately preceding January 15, 2032, in each case, only under certain circumstances, and the notes will be convertible thereafter at any time prior to the close of business on the second scheduled trading day immediately preceding their respective maturity date regardless of these circumstances. Upon conversion, Akamai will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of common stock, at Akamai’s election, in respect of the remainder, if any, of Akamai’s conversion obligation in excess of the aggregate principal amount of the notes being converted. The conversion rate of the 2030 Notes will initially be 4.9650 shares of Akamai’s common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $201.41 per share of Akamai’s common stock, subject to adjustments in certain events. The initial conversion price of the 2030 Notes represents a premium of approximately 42.5% to the $141.34 per share closing price of Akamai’s common stock on May 19, 2026. The conversion rate of the 2032 Notes will initially be 5.2408 shares of Akamai’s common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $190.81 per share of Akamai’s common stock, subject to adjustments in certain events. The initial conversion price of the 2032 Notes represents a premium of approximately 35.0% to the $141.34 per share closing price of Akamai’s common stock on May 19, 2026.
Akamai estimates that the net proceeds from the offering will be approximately $2,958.0 million (or approximately $3,451.8 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers’ discounts and estimated offering expenses payable by Akamai.
Subject to costs and expenses related to the convertible note hedge and warrant transactions and share repurchases described below, Akamai intends to use the remaining net proceeds from the offering to fund the accelerated capital expenditure requirements of the Cloud Infrastructure Services (CIS) business, prioritizing the rapid build-out of Akamai’s global footprint, and for general corporate purposes.
Akamai intends to use approximately $203 million of the net proceeds from the offering to pay the cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds to Akamai from the sale of warrants pursuant to the warrant transactions described below). If the initial purchasers exercise their option to purchase additional notes, Akamai expects to sell additional warrants and use a portion of the net proceeds from the sale of such additional notes, together with the proceeds from the additional warrant transactions, to enter into additional convertible note hedge transactions with respect to the relevant series of notes as to which the option was exercised.
Akamai also intends to use approximately $350 million of the net proceeds from the offering to repurchase shares of its common stock from purchasers of the notes in the offering in privately-negotiated transactions effected through one or more of the initial purchasers or their affiliates. The purchase price per share in such transactions will equal $141.34, the closing price per share of Akamai’s common stock on May 19, 2026.
If Akamai undergoes a fundamental change prior to the maturity date of the notes, subject to certain conditions and limited exceptions, holders may require Akamai to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid special interest to, but excluding, the fundamental change repurchase date.
In connection with the pricing of the notes, Akamai entered into convertible note hedge transactions and warrant transactions with one or more of the initial purchasers of the notes and/or their respective affiliates and other financial institutions (the “Option Counterparties”). The convertible note hedge transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the same number of shares of Akamai’s common stock that will initially underlie the notes, including any notes purchased by the initial purchasers pursuant to their option to purchase additional notes. The convertible note hedge transactions are expected generally to reduce the potential dilution with respect to Akamai’s common stock upon any conversion of the notes and/or offset any cash payments Akamai is required to make in excess of the principal amount of converted notes, as the case may be. The warrants will cover, subject to customary anti-dilution adjustments, the same number of shares of Akamai’s common stock. The warrant transactions could separately have a dilutive effect with respect to Akamai’s common stock to the extent that the market price per share of Akamai’s common stock exceeds the strike price of the warrants, unless Akamai elects, subject to certain conditions, to settle the warrants in cash.
In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the Option Counterparties and/or their respective affiliates expect to purchase shares of Akamai’s common stock and/or enter into various derivative transactions with respect to Akamai’s common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Akamai’s common stock or the notes at that time. In addition, the Option Counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Akamai’s common stock and/or purchasing or selling Akamai’s common stock or other securities of Akamai in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so during any observation period related to a conversion of the notes or following any repurchase of the notes by Akamai). This activity could also cause or avoid an increase or a decrease in the market price of Akamai’s common stock or the notes, which could affect the ability of holders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the amount and value of the consideration that holders receive upon conversion of the notes.
This press release is being issued pursuant to Rule 135c under the Securities Act and shall not constitute an offer to sell nor a solicitation of an offer to buy any of these securities (including the shares of Akamai’s common stock, if any, issuable upon conversion of the notes). Any offer of notes was and will be made only by means of a private offering memorandum. The notes and the common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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The release contains information about future expectations, plans and prospects of Akamai’s management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements with respect to Akamai’s expectations to complete the offering of the notes, its use of proceeds from the offering and the effect of the concurrent stock repurchase and the convertible note hedge and warrant transactions. There can be no assurance that Akamai will be able to complete the notes offering on the anticipated terms, or at all. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the terms of the notes and the offering, risks and uncertainties related to whether or not Akamai will consummate the offering, the impact of general economic, industry, market or political conditions and other factors that are discussed in Akamai’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.
In addition, the statements in this press release represent Akamai’s expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai’s expectations or beliefs as of any date subsequent to the date of this press release.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence.
CAMBRIDGE, Mass., May 20, 2026 (GLOBE NEWSWIRE) -- Cybercriminals are now targeting financial services more than any other industry for web and API (Layers 3 and 4) distributed denial-of-service (DDoS) attacks, Akamai (NASDAQ: AKAM) reveals in its AI-Empowered Botnets and API Visibility Gaps: Attack Trends in Financial Services State of the Internet (SOTI) Security report. The findings highlight a dangerous shift as pro-Iran hacktivists and AI-driven bots weaponize DDoS tactics to disrupt online banking, payment systems, and critical applications.
Driven by AI-powered infrastructure, the median duration of global Layers 3 and 4 DDoS attacks targeting the financial services sector is up 738% since 2024. This shows that while digital transformation has enabled advances such as online banking and real-time payments, it has also widened the doors for attackers.
Key findings of the report include:
Among the financial service leaders surveyed for the 2026 API Security Impact Study, 96% reported at least one API security incident over the past 12 months, the highest among all industries.In 2025, 60% of total web attacks and 83% of incursions against API endpoints targeted banking.Nearly 80% of financial institutions have faced ransomware attacks in the past two years, yet less than half have adopted advanced security technologies.Advanced bot activity surged by 147% in late 2025 — and, in one case study, a staggering 96% of all site traffic was identified as malicious scraping bots.Cyberattack methods against financial services vary significantly by region: EMEA is the primary target for Layers 3 and 4 DDoS (62%), APAC is the most targeted by Layer 7 DDoS (52%), and in North America, web attacks are the most prevalent (44%).
“Cybercriminals and hacktivists continue to escalate DDoS from nuisance attacks to a sustained siege encompassing both hacktivism and cybercrime, and financial services are in the crosshairs," said Steve Winterfeld, Advisory CISO of Akamai. “In addition, the data shows that APIs are increasingly targeted as AI doesn't reduce traditional security risks, it puts them on steroids. Fortunately, financial services organizations can leverage the security strategies and best practices detailed in this report."
AI-Empowered Botnets and API Visibility Gaps: Attack Trends in Financial Services also includes: data-supported trends on criminal activity, a guest column by the CISO of FS-ISAC, a security spotlight on MITRE capabilities, a cloud spotlight on the differences among AI architectures, and practical DNS and DDoS attack mitigation strategies.
Now in their 12th year, Akamai’s SOTI Security reports continue to offer critical insights on cybersecurity trends and web performance, drawn from attacks viewed across Akamai’s cybersecurity protective infrastructure, which handles a significant portion of global web traffic.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Akamai Technologies Inc (NASDAQ:AKAM, XETRA:AK3) announced that they are expanding their collaboration to embed security directly into the infrastructure layer of artificial intelligence systems, aiming to protect what the companies describe as emerging “AI factories” as workloads move from centralized data centers to edge environments.
The initiative centers on integrating Akamai Guardicore Segmentation with Nvidia’s Vera BlueField-4 STX architecture, supported by the Nvidia DOCA software platform.
The companies say the goal is to move beyond traditional perimeter or host-based security models by enforcing Zero Trust principles directly within the data path of accelerated computing systems.
Under the partnership, Akamai’s segmentation platform will provide continuous visibility into how AI workloads, agents, and applications interact across hybrid environments, including cloud infrastructure, Kubernetes clusters, data centers, and edge deployments. Policies are defined using workload identity and runtime behavior, rather than static network rules, allowing for more granular control over AI system communications.
Nvidia said its BlueField-4 STX platform will enforce those policies in hardware using DOCA software, enabling security functions such as segmentation, telemetry, and anomaly detection to run inside the infrastructure fabric. The companies said this approach is intended to avoid adding overhead to GPUs, CPUs, or storage systems that power AI workloads.
“Data is the foundation of agentic AI factories, powering the intelligence behind autonomous decision-making and making robust protection more critical than ever for enterprises,” said Kevin Deierling, Senior Vice President of Networking at Nvidia.
“The Akamai Guardicore enterprise security platform and NVIDIA Vera BlueField-4 STX brings a Zero Trust layer directly into the infrastructure fabric, helping protect enterprise data by intelligently controlling how AI workloads communicate at scale.”
Ofer Wolf, Akamai senior vice president of enterprise, said that AI factories are being built at a pace that often outstrips traditional security deployment.
He said embedding workload-aware segmentation into Nvidia’s platform allows organizations to enforce security policies without slowing high-performance computing environments.
Akamai Guardicore Segmentation integrated with Nvidia BlueField and DOCA is expected to be available in the second half of 2026, with broader integration on Nvidia Vera BlueField-4 STX across storage and infrastructure partner platforms expected in the first half of 2027.
Shares of Akamai jumped 5% on the new to about $162, while Nvidia shares were little changed at $225.
Key Takeaways Akamai's Q1 revenues rose 6% on strong demand for Guardicore, API security and AI cloud services.AKAM's cloud infrastructure revenues jumped 40% year over year on AI-related GPU demand.Akamai expects 2026 non-GAAP EPS of $6.40-$7.15, signaling a potential 5% annual loss. Akamai Technologies ((AKAM - Free Report) ) is a $22 billion global provider of content delivery networks (CDN), cybersecurity and cloud infrastructure services.The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, and business applications.
Its offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers, with the data-hog of high-definition video a particular specialty.
I last profiled Akamai one year ago after their Q1 2025 report saw analysts take down growth estimates. Here were three overarching points I made at the time...
Revenue growth stalls under 5% and earnings go negative for key provider of content delivery networks (CDNs).
Potential may still exist for AKAM to thrive in burgeoning AI economy if they develop new growth drivers.
With explosive "AI Economy" growth in datacenter businesses, AKAM is overlooked even under 3X sales because there is so much more potential to offer in other names and industry niches.
4 Quarters Later, Growth Tries a Comeback
Starting with their Q3 report in November, the turnaround became evident to investors and analysts and AKAM shares were re-rated higher, from purgatory below $80 all the way up to $120 after their Q4 report in February.
Then the Q1 2026 report confirmed the good news and AKAM jumped 26.5% on May 8 and proceeded to breach $160 a week later.
The company reported 6% year-over-year revenue growth, supported by strong demand for Guardicore Segmentation and API security, with solid momentum in cloud infrastructure services.
However, huge investments in GPUs, colocation and cloud infrastructure are still pressuring the bottom line.
So that's why AKAM is back in the cellar of the Zacks Rank. In the past two months, the Zacks Consensus EPS for 2026 has fallen from $6.93 to $6.74 as analysts revised their growth estimates lower.
That represents a 5.34% annual loss vs 2025.
$1.8 Billion AI Infrastructure DealAfter the report, Bank of America analyst Tal Liani upgraded the stock to Buy from Neutral and raised his price target to $175 from $130. Liani noted...
“The story has shifted from a legacy delivery network to a credible AI infrastructure platform. Large cloud infrastructure wins, including a $1.8 billion, 7-year deal, signal real demand for distributed AI, not just narrative.”
In their Q1 presentation, Akamai announced that a "leading frontier model provider" had committed $1.8 billion for its cloud infrastructure services over seven years.
Bloomberg later reported that the customer was AI startup Anthropic, though neither company publicly confirmed the report.
Liani estimates the agreement will contribute between $20 million and $25 million in quarterly revenue beginning in the fourth quarter.
The Bank of America team acknowledged that Akamai’s AI expansion will require substantial investment, citing that capital expenditures could rise to as much as $825 million over the next year as the company expands infrastructure capacity.
Consequently, free cash flow is projected to decline nearly 48% in 2026 before recovering in subsequent years.
Analysts and Investors Remain OptimisticIn late May, Akamai was able to raise $3.5 billion through a convertible bond offering. And the company also announced a $350 million share buyback.
With the stock holding up well above $150, it appears investors still like the resurgent Akamai story.
And at least four investment banks agree with Guggenheim Securities raising their price target to $181 from $133 and Craig-Hallum jumping from $100 to a $190 objective.
Morgan Stanley and Susquehanna raised their price targets to $165 and $175, respectively.But some pessimism persists as Goldman Sachs reiterated their Strong Sell rating while raising their target from $76 to $87 after the Q1 report.
The optimists are probably focused on Akamai's strong footprint in monitoring, preventing, and mitigating cyber attacks. The company recently cited their research data identifying these threat metrics for financial services:
738% longer DDoS durations since 2024
147% rise in advanced bots
96% of banks faced API incidents
60–83% of web/API attacks hit banking
Bottom line: While the growth story is turning around amid new datacenter opportunities and initiatives in cybersecurity, it's a slow grind from here as the Goldman team believes. If you took a shot at AKAM shares under $80 last year when it was priced for failure, maybe it's a good time to take some profits now that they're priced for perfection.
CAMBRIDGE, Mass., June 02, 2026 (GLOBE NEWSWIRE) -- Akamai (NASDAQ: AKAM) is collaborating with NVIDIA to bring an advanced security architecture into AI factories — the foundation of the agentic era.
The two companies today announced an expansion of their security collaboration to bring Akamai Guardicore Segmentation to the NVIDIA Vera BlueField-4 STX storage architecture, powered by the NVIDIA DOCA software platform. The collaboration is designed to layer Zero Trust architecture into the AI factory itself, protecting the data, context memory, and autonomous agents that increasingly run modern enterprises.
This novel security integration will enable AI factory operators to enforce workload-aware segmentation, monitor agent behavior, and contain threats at the infrastructure layer, operating at the speed of accelerated computing without taxing the GPU, CPU, or storage cycles that AI workloads depend on.
“AI factories are becoming critical assets that must be designed for containment, especially as frontier LLM-driven attacks increase the speed and scale of cyber threats,” said Ofer Wolf, Senior Vice President, Enterprise Security at Akamai. “In environments where every clock cycle matters, traditional host-based security tools behave like a speed bump on a racetrack. By moving workload-aware segmentation onto NVIDIA Vera BlueField-4 STX and DOCA, we are enforcing Zero Trust at the speed of AI workloads themselves, helping organizations contain threats before they spread across high-performance environments.”
“Data is the foundation of agentic AI factories, powering the intelligence behind autonomous decision-making and making robust protection more critical than ever for enterprises,” said Kevin Deierling, Senior Vice President, Networking at NVIDIA. “The Akamai Guardicore enterprise security platform and NVIDIA Vera BlueField-4 STX brings a Zero Trust layer directly into the infrastructure fabric, helping protect enterprise data by intelligently controlling how AI workloads communicate at scale.”
Security at the speed of accelerated computing
AI factories are being built faster than they can be secured. Until now, there has been a trade-off between fast AI and secure AI. But that compromise that’s no longer tenable.
The expanded Akamai–NVIDIA integration, which builds on the architecture agreement that two companies introduced last February, is designed to remove that trade-off.
Akamai Guardicore Segmentation, which protects some of the world’s largest and most sensitive organizations, provides the intelligence layer, continuously mapping how workloads, applications, and data interact across hybrid environments that include data centers, cloud infrastructure, Kubernetes clusters, and edge systems. Policies are defined by workload identity, application context, and runtime behavior, not by static network addresses. Visibility extends across the full lifecycle of AI workloads, surfacing abnormal patterns and unauthorized access to sensitive data.
NVIDIA Vera BlueField-4 STX, programmable through NVIDIA DOCA, provides the threat detection and enforcement layers in silicon. Security policies are applied in the data path at line speed, inside the infrastructure fabric rather than on the host. Enforcement moves closer to the workload itself, so it won’t trip up the GPUs, CPUs, and storage processors that AI factories depend on. Together, the two layers establish identity-based Zero Trust as a property of the infrastructure rather than an additional product.
How the integration works
The combined solution operates on the principle that intelligence must precede enforcement:
Visibility. Akamai Guardicore Segmentation continuously maps communication relationships across data centers, cloud, Kubernetes, and edge systems. Its agentless architecture observes AI workloads, including training pipelines, inference services, data ingestion systems, and orchestration platforms, without interfering with them.
Policy. Workload identity, application context, and runtime behavior are used to define explicit communication policies. A preprocessing node may access a dataset and a training service but nothing beyond that scope. Research environments are explicitly separated from production inference. Pods can scale and services can evolve without weakening the policy boundary.
Enforcement. NVIDIA DOCA applies those policies in BlueField-4 silicon, in the data path, at line speed. Security functions, including segmentation, telemetry, anomaly detection, and isolation of compromised systems, run inside the infrastructure fabric rather than on the host.
Containment. When a workload is compromised, the blast radius is limited to a small, identified segment of the environment. The rest of the AI factory continues operating uninterrupted. Availability
Akamai Guardicore Segmentation integrated with NVIDIA BlueField and NVIDIA DOCA is expected to be available in the second half of 2026 for implementing workload-aware segmentation in AI factories. Akamai's integration with NVIDIA Vera BlueField-4 STX is expected to be available on storage and infrastructure partner platforms in the first half of 2027.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Akamai Technologies Inc (NASDAQ:AKAM, XETRA:AK3) announced that they are expanding their collaboration to embed security directly into the infrastructure layer of artificial intelligence systems, aiming to protect what the companies describe as emerging “AI factories” as workloads move from centralized data centers to edge environments.
The initiative centers on integrating Akamai Guardicore Segmentation with Nvidia’s Vera BlueField-4 STX architecture, supported by the Nvidia DOCA software platform.
The companies say the goal is to move beyond traditional perimeter or host-based security models by enforcing Zero Trust principles directly within the data path of accelerated computing systems.
Under the partnership, Akamai’s segmentation platform will provide continuous visibility into how AI workloads, agents, and applications interact across hybrid environments, including cloud infrastructure, Kubernetes clusters, data centers, and edge deployments. Policies are defined using workload identity and runtime behavior, rather than static network rules, allowing for more granular control over AI system communications.
Nvidia said its BlueField-4 STX platform will enforce those policies in hardware using DOCA software, enabling security functions such as segmentation, telemetry, and anomaly detection to run inside the infrastructure fabric. The companies said this approach is intended to avoid adding overhead to GPUs, CPUs, or storage systems that power AI workloads.
“Data is the foundation of agentic AI factories, powering the intelligence behind autonomous decision-making and making robust protection more critical than ever for enterprises,” said Kevin Deierling, Senior Vice President of Networking at Nvidia.
“The Akamai Guardicore enterprise security platform and NVIDIA Vera BlueField-4 STX brings a Zero Trust layer directly into the infrastructure fabric, helping protect enterprise data by intelligently controlling how AI workloads communicate at scale.”
Ofer Wolf, Akamai senior vice president of enterprise, said that AI factories are being built at a pace that often outstrips traditional security deployment.
He said embedding workload-aware segmentation into Nvidia’s platform allows organizations to enforce security policies without slowing high-performance computing environments.
Akamai Guardicore Segmentation integrated with Nvidia BlueField and DOCA is expected to be available in the second half of 2026, with broader integration on Nvidia Vera BlueField-4 STX across storage and infrastructure partner platforms expected in the first half of 2027.
Shares of Akamai jumped 5% on the new to about $162, while Nvidia shares were little changed at $225.
CAMBRIDGE, Mass., June 03, 2026 (GLOBE NEWSWIRE) -- Akamai (NASDAQ: AKAM) today announced that GM Sectec, a global leader in PCI-led managed security services with key operations in North America, Latin America, and Europe, has joined the Akamai Partner Connect Program. The partnership is intended to help global enterprises simplify the transition to PCI DSS v4.0.1 compliance, govern the emerging agentic digital workforce, and strengthen defenses against ransomware and API-based threats.
As organizations increasingly adopt autonomous AI agents to manage business workflows, regulators now treat these “digital employees” as human identities with no exemptions for machine-driven data access. This shift, combined with the “shadow API” crisis, by which untracked APIs are created for AI integration, has created significant visibility and security gaps in cardholder data environments (CDEs).
“Partnering with Akamai builds on our global leadership in PCI-led managed security services, facilitating the adoption of innovative technologies to address the evolving requirements of PCI DSS v4.0.1,” said Héctor Guillermo Martínez, President, GM Sectec. “Together, we can empower organizations to achieve robust compliance, prevent ransomware, and govern the new autonomous digital workforce by helping to ensure that AI agents and API ecosystems operate safely within strict regulatory guardrails.”
The partnership integrates GM Sectec’s PCI compliance validation and proprietary scope-reduction tokenization (Databye by FirsToken) with Akamai’s advanced security portfolio to deliver a multilayered defense. Key initiatives of the collaboration include:
Pioneering “agentic compliance”: GM Sectec’s Non-Human Identity (NHI) governance ensures machine access is audited with the same strict controls used for human employees.Akamai API Security to combat “ghost APIs”: Akamai API Security is used to continuously discover and monitor API behavior, mitigating the surge in multistep workflows and hidden API calls driven by AI agents.Enhanced ransomware prevention: Akamai Guardicore Segmentation is leveraged for Zero Trust microsegmentation to contain ransomware and restrict the “blast radius” of compromised agents.24/7 global incident response: GM Sectec’s four global 24/7/365 Critical Incident Response and Replication Centers (CIRRCs) provide continuous managed detection and response. Its elite PCI forensic investigator (PFI) and digital forensics and incident response (DFIR) teams provide rapid recovery. “Akamai’s technology portfolio, particularly Akamai API Security and Akamai Guardicore Segmentation, finds the ideal complement in GM Sectec’s extensive experience in PCI validation and forensics,” said Saulo Rodrigues Miranda, Vice President of Sales, Latin America, at Akamai. “By joining Akamai Partner Connect, GM Sectec is uniquely positioned to deliver integrated, high-performance security solutions that modernize legacy environments and bolster overall security resilience.”
Akamai Partner Connect is a unified global program that supports resale, distribution, technical solution enablement, services, and referrals. The program includes enhanced incentives aligned with strategic offerings, region-specific tiering, and streamlined access to tools and support to help partners accelerate growth and deliver superior customer outcomes. To learn more, visit akamai.com/channel-partners.
About GM Sectec
GM Sectec is a global cybersecurity and compliance leader with operations in more than 50 countries. The company specializes in PCI-led managed security, fraud prevention, and incident response to reduce business risk and cybercrime. Recognized among the Top 150 Cybersecurity Companies and a member of the PCI Global Executive Assessor Roundtable (PCI GEAR), GM Sectec is also a recipient of multiple Global InfoSec Awards, including Most Innovative Future-Ready Payment Security for its Databye solution. Learn more at gmsectec.com.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
CAMBRIDGE, Mass., June 04, 2026 (GLOBE NEWSWIRE) -- Akamai Technologies Inc. (NASDAQ: AKAM) announced today that Workspot is the latest organization to join the Akamai Qualified Compute Partner Program as an independent software vendor (ISV).
As an ISV in the Akamai Qualified Compute Partner Program, Workspot enables customers to seamlessly migrate from legacy on-premises VDI environments to Akamai Cloud PC — a fully managed, enterprise-grade desktop as a service (DaaS) solution. By running natively on Akamai’s globally distributed cloud, Akamai Cloud PC is designed to leverage the low-latency Akamai network to deliver high-performance computing closer to where users work. The solution integrates seamlessly with existing enterprise identity providers, security frameworks, and custom desktop images, ensuring a secure and consistent experience.
“Workspot is proud to power Akamai Cloud PC and bring the next generation of cloud desktops to enterprises worldwide,” said Subash Gopalkrishnan, CEO of Workspot. “By combining Workspot’s enterprise-grade desktop as a service platform with Akamai’s globally distributed cloud and low-latency network, organizations can seamlessly migrate from legacy on-premises VDI to a modern cloud PC experience that is simpler to deploy, more secure, and built for the performance demands of today’s workforce.”
“We are thrilled to now offer Akamai Cloud PC to customers as a high-performant and simple-to-use DaaS solution,” said Zak Putnam, Area Vice President of Global Cloud Partnerships at Akamai. “Workspot’s participation in the Akamai Qualified Compute Partner Program expands the options available to customers seeking to modernize their end-user computing. By qualifying as an ISV partner, Workspot provides enterprises with the ability to deploy and scale high-performance virtual desktop solutions across Akamai Cloud, the world’s most distributed platform for cloud computing, security, and content delivery.”
The Akamai Qualified Compute Partner Program is designed to make solution-based services that are interoperable with Akamai’s cloud computing services easily accessible to Akamai customers. The services are provided by Akamai technology partners that complete a rigorous qualification process to ensure they are readily available to deploy and scale across the globally distributed Akamai Cloud. The services are available individually or can work together to form a larger ecosystem of complementary capabilities, which can offer performance and cost benefits by running on a single global platform.
To learn more about the Akamai Qualified Compute Partner Program, or to join the leading technology companies that partner with Akamai, visit the Akamai Technology Partner Program page.
Additional information about Akamai’s cloud computing services is available at akamai.com.
About Workspot
Workspot is a cloud native desktop as a service (DaaS) platform that enables enterprises to securely deliver cloud PCs, applications, and browser-based workspaces without managing infrastructure. Designed for modern cloud environments, Workspot helps organizations migrate from on-prem VDI to the cloud in weeks while significantly reducing cost and operational complexity. By combining AI-driven FinOps, digital experience monitoring (DEX), and an embedded enterprise browser, Workspot provides full visibility into cost and user experience — helping IT teams optimize performance, control spend, and support distributed workforces at scale.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
Contacts
Olivia Neacsu
Workspot Marketing and Communications [email protected]
CAMBRIDGE, Mass., June 10, 2026 (GLOBE NEWSWIRE) -- Akamai (NASDAQ: AKAM), a Microsoft partner, today announced it has earned the Solutions Partner* with certified software** designation for API Security within the Microsoft AI Cloud Partner Program. This designation recognizes software that demonstrates interoperability with the Microsoft Cloud and meets program requirements.
The certified software designation reflects Akamai’s capabilities meeting the program’s requirements. The certified software solution provides cross-platform visibility and security for customers leveraging environments such as Microsoft Azure.
“APIs are the foundation of almost every digital interaction today. As AI adoption accelerates, the need for wide-scale protection has become a critical business requirement. We built Akamai API Security to give organizations the visibility and protection they need across the entire API landscape,” said Paul Joseph, Executive Vice President, Global Sales and Services, Akamai. “Earning the Solutions Partner with certified software designation from Microsoft is a major milestone for our team. It validates our technical approach and helps ensure our customers can extend Akamai’s protection to their cloud-native applications natively within the Azure ecosystem.”
“Attaining a Solutions Partner with certified software designation is an important way for partners to stand out in the market and demonstrate their proven capabilities in areas of high customer demand. Earning a certified software designation for your solution can help position you to meet the growing demand for cloud-based solutions. We’re pleased to welcome Akamai and the API Security solution to Microsoft's exclusive growing network of partners with certified software designations,” said Andrew Smith, GM, Partner Programs & Experiences.
To learn more about Akamai API Security, visit:
https://www.akamai.com/products/api-security
https://marketplace.microsoft.com/en-us/product/akamai-technologies.akamai_api_security
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
*“Solutions Partner” refers to a company that is a member of the Microsoft AI Cloud Partner Program and may offer software, services, and/or solutions to customers. Reference to “Solutions Partner” in any content, materials, resources, web properties, etc. and any associated designation should not be interpreted as an offer, endorsement, guarantee, proof of effectiveness or functionality, a commitment or any other type of representation or warranty on the part of Microsoft. All decisions pertaining and related to your business needs including but not limited to strategies, solutions, partner selection, implementation, etc., rests solely with your Business.
**A certification is (1) specific to the solution’s interoperability with Microsoft products and (2) based on self-attestation by the solution owner. Solutions are only certified as of the date the solution is reviewed. Solution functionality and capability are controlled by the solution owner and may be subject to change. The inclusion of a solution in the marketplace and any such designations should not be interpreted as an offer, endorsement, guarantee, proof of effectiveness or functionality, a commitment or any other type of representation or warranty on the part of Microsoft. All decisions pertaining and related to your business needs including but not limited to strategies, solutions, partner selection, implementation, etc., rest solely with your business.
Calamos Advisors LLC lifted its holdings in shares of United Rentals, Inc. (NYSE:URI – Free Report) by 27.5% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 29,267 shares of the construction company’s stock after purchasing an additional 6,308 shares during the period. Calamos Advisors LLC’s holdings in United Rentals were worth $23,686,000 as of its most recent SEC filing.
A number of other hedge funds have also modified their holdings of the business. Capital International Investors increased its stake in shares of United Rentals by 22.8% during the 3rd quarter. Capital International Investors now owns 3,402,524 shares of the construction company’s stock worth $3,247,762,000 after purchasing an additional 631,484 shares in the last quarter. Capital World Investors increased its stake in shares of United Rentals by 6.7% during the 3rd quarter. Capital World Investors now owns 2,678,614 shares of the construction company’s stock worth $2,557,158,000 after purchasing an additional 168,685 shares in the last quarter. Franklin Resources Inc. increased its stake in shares of United Rentals by 6.8% during the 3rd quarter. Franklin Resources Inc. now owns 1,315,086 shares of the construction company’s stock worth $1,255,460,000 after purchasing an additional 83,978 shares in the last quarter. Alliancebernstein L.P. increased its stake in shares of United Rentals by 5.6% during the 3rd quarter. Alliancebernstein L.P. now owns 1,088,209 shares of the construction company’s stock worth $1,038,870,000 after purchasing an additional 57,977 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of United Rentals by 2.9% during the 3rd quarter. Dimensional Fund Advisors LP now owns 948,386 shares of the construction company’s stock worth $905,313,000 after purchasing an additional 26,847 shares in the last quarter. 96.26% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In A number of research analysts have recently weighed in on URI shares. Royal Bank Of Canada raised their price objective on shares of United Rentals from $1,041.00 to $1,119.00 and gave the stock an “outperform” rating in a research note on Friday. Barclays reissued an “underweight” rating and set a $715.00 price objective on shares of United Rentals in a research note on Friday. Citigroup raised their price objective on shares of United Rentals from $950.00 to $1,130.00 and gave the stock a “buy” rating in a research note on Friday. UBS Group raised shares of United Rentals from a “neutral” rating to a “buy” rating and set a $1,025.00 price objective for the company in a research note on Sunday, January 4th. Finally, Robert W. Baird lifted their target price on shares of United Rentals from $970.00 to $1,100.00 and gave the stock an “outperform” rating in a research note on Friday. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, United Rentals currently has an average rating of “Moderate Buy” and an average target price of $986.35.
Read Our Latest Research Report on United Rentals
United Rentals News Roundup Here are the key news stories impacting United Rentals this week:
Positive Sentiment: Q1 beat and higher guidance — URI reported robust Q1 results, beating revenue and (adjusted) EPS expectations and raised full‑year 2026 guidance, which triggered the large share rally. United Rentals Announces Strong First Quarter Results and Raises Full-Year 2026 Guidance Positive Sentiment: Demand and margins driving outperformance — Coverage points to stronger large‑project demand, cost controls and fleet productivity as the operational drivers of the beat and improved margin outlook. URI Q1 deep dive: Large project demand and cost controls drive outperformance Positive Sentiment: Analyst upgrades lift sentiment — Major brokers raised price targets and ratings (JPMorgan and Robert W. Baird among them), reflecting confidence in upside after the results. Benzinga The Fly Positive Sentiment: Management confident on call — The earnings call emphasized continued demand strength and execution, reinforcing the raised outlook. United Rentals’ Earnings Call Signals Confident Growth Neutral Sentiment: Market recognition and index spotlight — Coverage notes URI gaining visibility in indexes (Russell 1000) and elevated media attention following the print. How Is United Rentals Gaining Spotlight In The Russell 1000 Index? Neutral Sentiment: Dividend declared — URI declared a quarterly dividend (paid late May), a small income element but not a primary driver of the move. Benzinga movers Negative Sentiment: Sharp run‑up raises near‑term risk — The stock jumped 20%+ on the print, leaving valuation higher and increasing the chance of profit‑taking and short‑term volatility (which appears to be occurring today). Why United Rentals Stock Jumped More Than 20 Today Negative Sentiment: Volume and volatility spike — Trading volume has climbed materially around the print, increasing execution risk for larger positions and the chance of intraday swings. United Rentals stock soars 23 as earnings beat lifts outlook Insider Activity In other United Rentals news, EVP Michael D. Durand sold 2,490 shares of United Rentals stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $791.14, for a total value of $1,969,938.60. Following the completion of the sale, the executive vice president directly owned 7,458 shares of the company’s stock, valued at approximately $5,900,322.12. The trade was a 25.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Andrew B. Limoges sold 548 shares of United Rentals stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $977.86, for a total transaction of $535,867.28. Following the completion of the sale, the vice president directly owned 1,865 shares of the company’s stock, valued at $1,823,708.90. The trade was a 22.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 27,304 shares of company stock valued at $26,116,584 over the last quarter. Insiders own 0.47% of the company’s stock.
United Rentals Stock Down 1.2% URI stock opened at $975.12 on Friday. The stock has a market capitalization of $61.09 billion, a P/E ratio of 24.88, a PEG ratio of 1.59 and a beta of 1.68. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.88 and a current ratio of 0.80. United Rentals, Inc. has a one year low of $611.93 and a one year high of $1,021.47. The company has a 50 day moving average price of $795.43 and a two-hundred day moving average price of $842.66.
United Rentals (NYSE:URI – Get Free Report) last released its earnings results on Wednesday, April 22nd. The construction company reported $9.71 EPS for the quarter, missing the consensus estimate of $11.47 by ($1.76). The firm had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $4.20 billion. United Rentals had a return on equity of 30.56% and a net margin of 15.32%.The firm’s revenue was up 7.2% on a year-over-year basis. During the same period in the previous year, the firm posted $8.86 earnings per share. As a group, sell-side analysts expect that United Rentals, Inc. will post 46.64 EPS for the current year.
United Rentals Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Wednesday, May 13th will be paid a $1.97 dividend. This represents a $7.88 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, May 13th. United Rentals’s payout ratio is presently 20.37%.
United Rentals declared that its Board of Directors has authorized a share buyback plan on Wednesday, January 28th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the construction company to buy up to 8.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.
United Rentals Company Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
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AEGON ASSET MANAGEMENT UK Plc lowered its position in shares of United Rentals, Inc. (NYSE:URI – Free Report) by 33.7% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 35,689 shares of the construction company’s stock after selling 18,168 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc owned approximately 0.06% of United Rentals worth $28,890,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Aventura Private Wealth LLC acquired a new stake in United Rentals in the 4th quarter valued at about $27,000. Salomon & Ludwin LLC grew its position in shares of United Rentals by 650.0% during the 3rd quarter. Salomon & Ludwin LLC now owns 30 shares of the construction company’s stock worth $29,000 after buying an additional 26 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in shares of United Rentals during the 3rd quarter worth approximately $29,000. Cedar Mountain Advisors LLC acquired a new stake in shares of United Rentals during the 3rd quarter worth approximately $32,000. Finally, Board of the Pension Protection Fund acquired a new stake in shares of United Rentals during the 4th quarter worth approximately $32,000. Institutional investors and hedge funds own 96.26% of the company’s stock.
United Rentals News Roundup Here are the key news stories impacting United Rentals this week:
Positive Sentiment: Q1 beat and higher guidance — URI reported robust Q1 results, beating revenue and (adjusted) EPS expectations and raised full‑year 2026 guidance, which triggered the large share rally. United Rentals Announces Strong First Quarter Results and Raises Full-Year 2026 Guidance Positive Sentiment: Demand and margins driving outperformance — Coverage points to stronger large‑project demand, cost controls and fleet productivity as the operational drivers of the beat and improved margin outlook. URI Q1 deep dive: Large project demand and cost controls drive outperformance Positive Sentiment: Analyst upgrades lift sentiment — Major brokers raised price targets and ratings (JPMorgan and Robert W. Baird among them), reflecting confidence in upside after the results. Benzinga The Fly Positive Sentiment: Management confident on call — The earnings call emphasized continued demand strength and execution, reinforcing the raised outlook. United Rentals’ Earnings Call Signals Confident Growth Neutral Sentiment: Market recognition and index spotlight — Coverage notes URI gaining visibility in indexes (Russell 1000) and elevated media attention following the print. How Is United Rentals Gaining Spotlight In The Russell 1000 Index? Neutral Sentiment: Dividend declared — URI declared a quarterly dividend (paid late May), a small income element but not a primary driver of the move. Benzinga movers Negative Sentiment: Sharp run‑up raises near‑term risk — The stock jumped 20%+ on the print, leaving valuation higher and increasing the chance of profit‑taking and short‑term volatility (which appears to be occurring today). Why United Rentals Stock Jumped More Than 20 Today Negative Sentiment: Volume and volatility spike — Trading volume has climbed materially around the print, increasing execution risk for larger positions and the chance of intraday swings. United Rentals stock soars 23 as earnings beat lifts outlook United Rentals Stock Performance Shares of URI opened at $975.12 on Friday. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.88 and a current ratio of 0.80. United Rentals, Inc. has a twelve month low of $611.93 and a twelve month high of $1,021.47. The firm’s 50 day moving average price is $795.43 and its two-hundred day moving average price is $841.64. The firm has a market cap of $61.09 billion, a P/E ratio of 24.88, a PEG ratio of 1.59 and a beta of 1.68.
United Rentals (NYSE:URI – Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The construction company reported $9.71 earnings per share for the quarter, missing analysts’ consensus estimates of $11.47 by ($1.76). United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $4.20 billion. During the same period in the previous year, the firm posted $8.86 EPS. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. On average, analysts forecast that United Rentals, Inc. will post 46.64 EPS for the current fiscal year.
United Rentals Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Wednesday, May 13th will be paid a $1.97 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $7.88 dividend on an annualized basis and a yield of 0.8%. United Rentals’s payout ratio is presently 20.37%.
United Rentals announced that its Board of Directors has approved a share buyback program on Wednesday, January 28th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the construction company to reacquire up to 8.7% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.
Wall Street Analysts Forecast Growth Several brokerages have recently commented on URI. UBS Group upgraded shares of United Rentals from a “neutral” rating to a “buy” rating and set a $1,025.00 price target for the company in a research report on Sunday, January 4th. Robert W. Baird lifted their price objective on shares of United Rentals from $970.00 to $1,100.00 and gave the stock an “outperform” rating in a research note on Friday. KeyCorp lifted their price objective on shares of United Rentals from $950.00 to $1,150.00 and gave the stock an “overweight” rating in a research note on Friday. Truist Financial set a $1,209.00 price objective on shares of United Rentals in a research note on Friday. Finally, Sanford C. Bernstein set a $903.00 price objective on shares of United Rentals and gave the stock an “outperform” rating in a research note on Thursday, April 9th. Thirteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $986.35.
Get Our Latest Stock Report on United Rentals
Insider Activity at United Rentals In other United Rentals news, EVP Michael D. Durand sold 2,490 shares of United Rentals stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $791.14, for a total value of $1,969,938.60. Following the transaction, the executive vice president owned 7,458 shares of the company’s stock, valued at approximately $5,900,322.12. The trade was a 25.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Matthew John Flannery sold 22,768 shares of United Rentals stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $984.98, for a total transaction of $22,426,024.64. Following the completion of the transaction, the chief executive officer directly owned 99,980 shares in the company, valued at approximately $98,478,300.40. The trade was a 18.55% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 27,304 shares of company stock worth $26,116,584. Corporate insiders own 0.47% of the company’s stock.
United Rentals Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
Further Reading Five stocks we like better than United Rentals Want to see what other hedge funds are holding URI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for United Rentals, Inc. (NYSE:URI – Free Report).
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Owens Corning (NYSE:OC – Get Free Report) and United Rentals (NYSE:URI – Get Free Report) are both large-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Profitability This table compares Owens Corning and United Rentals’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Owens Corning -5.17% 21.93% 7.33% United Rentals 15.32% 30.56% 9.23% Volatility and Risk Owens Corning has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Institutional & Insider Ownership 88.4% of Owens Corning shares are held by institutional investors. Comparatively, 96.3% of United Rentals shares are held by institutional investors. 0.9% of Owens Corning shares are held by insiders. Comparatively, 0.5% of United Rentals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings This table compares Owens Corning and United Rentals”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Owens Corning $10.10 billion 1.00 -$522.00 million ($6.40) -19.65 United Rentals $16.10 billion 3.79 $2.49 billion $39.20 24.88 United Rentals has higher revenue and earnings than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a breakdown of current recommendations for Owens Corning and United Rentals, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Owens Corning 2 4 9 1 2.56 United Rentals 1 3 13 0 2.71 Owens Corning currently has a consensus price target of $145.09, suggesting a potential upside of 15.37%. United Rentals has a consensus price target of $986.35, suggesting a potential upside of 1.15%. Given Owens Corning’s higher probable upside, research analysts plainly believe Owens Corning is more favorable than United Rentals.
Dividends Owens Corning pays an annual dividend of $3.16 per share and has a dividend yield of 2.5%. United Rentals pays an annual dividend of $7.88 per share and has a dividend yield of 0.8%. Owens Corning pays out -49.4% of its earnings in the form of a dividend. United Rentals pays out 20.1% 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. Owens Corning has raised its dividend for 10 consecutive years and United Rentals has raised its dividend for 3 consecutive years. Owens Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary United Rentals beats Owens Corning on 12 of the 18 factors compared between the two stocks.
About Owens Corning (Get Free Report)
Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.
About United Rentals (Get Free Report)
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.
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Cornerstone Investment Partners LLC lifted its stake in United Rentals, Inc. (NYSE:URI – Free Report) by 12.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 90,222 shares of the construction company’s stock after purchasing an additional 10,174 shares during the period. United Rentals comprises about 2.8% of Cornerstone Investment Partners LLC’s investment portfolio, making the stock its 18th largest position. Cornerstone Investment Partners LLC owned 0.14% of United Rentals worth $73,018,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other hedge funds have also recently made changes to their positions in URI. Woodline Partners LP grew its holdings in shares of United Rentals by 40.0% in the first quarter. Woodline Partners LP now owns 5,518 shares of the construction company’s stock worth $3,458,000 after purchasing an additional 1,577 shares during the last quarter. Sei Investments Co. grew its holdings in United Rentals by 24.7% during the 2nd quarter. Sei Investments Co. now owns 27,136 shares of the construction company’s stock worth $20,444,000 after acquiring an additional 5,375 shares in the last quarter. Treasurer of the State of North Carolina grew its holdings in United Rentals by 43.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 56,057 shares of the construction company’s stock worth $42,233,000 after acquiring an additional 17,030 shares in the last quarter. HUB Investment Partners LLC grew its holdings in United Rentals by 11.3% during the 2nd quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company’s stock worth $1,661,000 after acquiring an additional 223 shares in the last quarter. Finally, Diversify Advisory Services LLC grew its holdings in United Rentals by 338.7% during the 2nd quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company’s stock worth $1,246,000 after acquiring an additional 1,277 shares in the last quarter. 96.26% of the stock is currently owned by institutional investors.
Analysts Set New Price Targets Several brokerages have issued reports on URI. Citigroup increased their target price on shares of United Rentals from $950.00 to $1,130.00 and gave the stock a “buy” rating in a report on Friday. Robert W. Baird increased their target price on shares of United Rentals from $970.00 to $1,100.00 and gave the stock an “outperform” rating in a report on Friday. Morgan Stanley reiterated an “overweight” rating and set a $1,030.00 target price on shares of United Rentals in a report on Friday. KeyCorp increased their target price on shares of United Rentals from $950.00 to $1,150.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Barclays reiterated an “underweight” rating and set a $715.00 target price on shares of United Rentals in a report on Friday. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $986.35.
Check Out Our Latest Research Report on URI
United Rentals Stock Performance Shares of United Rentals stock opened at $975.12 on Monday. The firm has a market capitalization of $61.09 billion, a P/E ratio of 24.88, a PEG ratio of 1.56 and a beta of 1.68. The company has a quick ratio of 0.74, a current ratio of 0.80 and a debt-to-equity ratio of 1.37. The company has a 50 day moving average price of $795.43 and a 200 day moving average price of $840.56. United Rentals, Inc. has a 52 week low of $611.93 and a 52 week high of $1,021.47.
United Rentals (NYSE:URI – Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The construction company reported $9.71 EPS for the quarter, missing the consensus estimate of $11.47 by ($1.76). The company had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $4.20 billion. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The business’s revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business earned $8.86 earnings per share. Sell-side analysts expect that United Rentals, Inc. will post 46.68 EPS for the current year.
United Rentals Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th will be given a $1.97 dividend. This represents a $7.88 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, May 13th. United Rentals’s dividend payout ratio (DPR) is presently 20.10%.
United Rentals declared that its Board of Directors has approved a stock buyback plan on Wednesday, January 28th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the construction company to repurchase up to 8.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.
More United Rentals News Here are the key news stories impacting United Rentals this week:
Positive Sentiment: Q1 beat and higher guidance — URI reported robust Q1 results, beating revenue and (adjusted) EPS expectations and raised full‑year 2026 guidance, which triggered the large share rally. United Rentals Announces Strong First Quarter Results and Raises Full-Year 2026 Guidance Positive Sentiment: Demand and margins driving outperformance — Coverage points to stronger large‑project demand, cost controls and fleet productivity as the operational drivers of the beat and improved margin outlook. URI Q1 deep dive: Large project demand and cost controls drive outperformance Positive Sentiment: Analyst upgrades lift sentiment — Major brokers raised price targets and ratings (JPMorgan and Robert W. Baird among them), reflecting confidence in upside after the results. Benzinga The Fly Positive Sentiment: Management confident on call — The earnings call emphasized continued demand strength and execution, reinforcing the raised outlook. United Rentals’ Earnings Call Signals Confident Growth Neutral Sentiment: Market recognition and index spotlight — Coverage notes URI gaining visibility in indexes (Russell 1000) and elevated media attention following the print. How Is United Rentals Gaining Spotlight In The Russell 1000 Index? Neutral Sentiment: Dividend declared — URI declared a quarterly dividend (paid late May), a small income element but not a primary driver of the move. Benzinga movers Negative Sentiment: Sharp run‑up raises near‑term risk — The stock jumped 20%+ on the print, leaving valuation higher and increasing the chance of profit‑taking and short‑term volatility (which appears to be occurring today). Why United Rentals Stock Jumped More Than 20 Today Negative Sentiment: Volume and volatility spike — Trading volume has climbed materially around the print, increasing execution risk for larger positions and the chance of intraday swings. United Rentals stock soars 23 as earnings beat lifts outlook Insider Activity at United Rentals In related news, VP Andrew B. Limoges sold 548 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $977.86, for a total value of $535,867.28. Following the completion of the transaction, the vice president directly owned 1,865 shares of the company’s stock, valued at $1,823,708.90. This trade represents a 22.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Michael D. Durand sold 2,490 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the completion of the transaction, the executive vice president directly owned 7,458 shares of the company’s stock, valued at $5,900,322.12. The trade was a 25.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 27,304 shares of company stock valued at $26,116,584. Company insiders own 0.47% of the company’s stock.
United Rentals Company Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
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The recent bullishness aligns with key cyclical transitions, suggesting the rally may still have room to run.
Weekly Chart Analysis: United Rentals' Phase 2 Turns ConstructiveUnited Rentals is currently in Phase 2 of its 18-phase Adhishthana cycle on the weekly charts. According to the framework, Phase 2 unfolds in two distinct segments: Sankhya period; typically associated with consolidation, sluggish movement, or corrective behavior. Buddhi period; where stronger, more sustained directional moves often emerge.
In United Rentals' case, the first half of Phase 2 unfolded largely in line with expectations. The stock moved through a period of weakness and correction, falling from near $1,000 to lows around $700.
However, as the Sankhya phase concluded and the stock transitioned into the Buddhi window, momentum began to reverse sharply. The recent 30% rally appears consistent with that transition.
This is where the adhishthana framework becomes particularly useful: identifying when a stock shifts from a sluggish phase into a momentum-driven one.
With the stock now operating within the Buddhi segment of Phase 2, the weekly charts continue to favor bullish continuation rather than exhaustion.
Monthly Chart Analysis: Himalayan Formation Still in AscentThe constructive setup on the weekly charts is reinforced by the monthly timeframe. United Rentals is currently in Phase 10 of its Adhishthana cycle on the monthly charts and is navigating what the framework describes as the Himalayan Formation.
This formation typically unfolds in three stages: breakout, peak formation, and eventual decline. The peak window generally begins during Phase 10, but timing within the phase matters.
URI entered Phase 10 in February 2026, meaning the stock may still be in the earlier portion of this phase rather than near its final peak window.
As I outlined in my book:
"The 18th interval is expected to be the level of peak formation; if not, then the 23rd interval. If this phase concludes without forming the peak, it is anticipated to occur in the following phases."
That suggests the broader monthly trend may still be in the ascent leg of the formation.
Investor OutlookWith the weekly charts signaling the start of a Buddhi move and the monthly charts still positioned within the upward leg of the Himalayan structure, United Rentals appears favorably aligned for further strength.
Investors already holding the stock may continue to benefit as momentum remains strong, while any minor pullbacks are likely to be bought back by the market so long as the broader structure stays intact.
At present, both timeframes suggest that the recent rally may be part of a larger bullish move rather than a completed one.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Comerica Bank cut its stake in United Rentals, Inc. (NYSE:URI – Free Report) by 5.5% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 15,252 shares of the construction company’s stock after selling 881 shares during the period. Comerica Bank’s holdings in United Rentals were worth $12,344,000 as of its most recent SEC filing.
Several other hedge funds have also modified their holdings of URI. Capital International Investors boosted its position in shares of United Rentals by 22.8% in the third quarter. Capital International Investors now owns 3,402,524 shares of the construction company’s stock worth $3,247,762,000 after acquiring an additional 631,484 shares during the last quarter. TD Asset Management Inc boosted its position in shares of United Rentals by 66.5% in the third quarter. TD Asset Management Inc now owns 484,450 shares of the construction company’s stock worth $462,485,000 after acquiring an additional 193,416 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its position in shares of United Rentals by 3,459.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 196,688 shares of the construction company’s stock worth $159,184,000 after acquiring an additional 191,162 shares during the last quarter. Capital World Investors boosted its position in shares of United Rentals by 6.7% in the third quarter. Capital World Investors now owns 2,678,614 shares of the construction company’s stock worth $2,557,158,000 after acquiring an additional 168,685 shares during the last quarter. Finally, Public Sector Pension Investment Board boosted its position in shares of United Rentals by 3,094.3% in the third quarter. Public Sector Pension Investment Board now owns 155,273 shares of the construction company’s stock worth $148,233,000 after acquiring an additional 150,412 shares during the last quarter. 96.26% of the stock is owned by institutional investors and hedge funds.
Insider Activity at United Rentals In other news, VP Andrew B. Limoges sold 548 shares of United Rentals stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $977.86, for a total transaction of $535,867.28. Following the sale, the vice president owned 1,865 shares in the company, valued at $1,823,708.90. This trade represents a 22.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Matthew John Flannery sold 22,768 shares of United Rentals stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $984.98, for a total transaction of $22,426,024.64. Following the sale, the chief executive officer owned 99,980 shares in the company, valued at $98,478,300.40. This represents a 18.55% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 30,076 shares of company stock valued at $28,783,569. 0.47% of the stock is currently owned by corporate insiders.
United Rentals Trading Up 0.4% URI opened at $963.67 on Wednesday. The firm has a market capitalization of $60.37 billion, a P/E ratio of 24.58, a P/E/G ratio of 1.53 and a beta of 1.68. The firm’s 50 day moving average is $799.23 and its 200-day moving average is $840.51. United Rentals, Inc. has a 52-week low of $611.93 and a 52-week high of $1,021.47. The company has a quick ratio of 0.74, a current ratio of 0.80 and a debt-to-equity ratio of 1.37.
United Rentals (NYSE:URI – Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The construction company reported $9.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $11.47 by ($1.76). The firm had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $4.20 billion. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The company’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $8.86 EPS. Analysts expect that United Rentals, Inc. will post 46.87 EPS for the current fiscal year.
United Rentals announced that its board has authorized a share repurchase program on Wednesday, January 28th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the construction company to buy up to 8.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.
United Rentals Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Wednesday, May 13th will be paid a dividend of $1.97 per share. The ex-dividend date is Wednesday, May 13th. This represents a $7.88 dividend on an annualized basis and a dividend yield of 0.8%. United Rentals’s dividend payout ratio (DPR) is currently 20.10%.
Analyst Upgrades and Downgrades URI has been the topic of several research reports. Weiss Ratings restated a “hold (c+)” rating on shares of United Rentals in a report on Monday, April 20th. Robert W. Baird raised their price target on shares of United Rentals from $970.00 to $1,100.00 and gave the company an “outperform” rating in a report on Friday, April 24th. Sanford C. Bernstein set a $903.00 price target on shares of United Rentals and gave the company an “outperform” rating in a report on Thursday, April 9th. Citigroup raised their price target on shares of United Rentals from $950.00 to $1,130.00 and gave the company a “buy” rating in a report on Friday. Finally, JPMorgan Chase & Co. raised their price target on shares of United Rentals from $850.00 to $1,050.00 and gave the company an “overweight” rating in a report on Friday, April 24th. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $986.35.
Read Our Latest Stock Analysis on URI
United Rentals Profile (Free Report)
United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.
The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.
Further Reading Five stocks we like better than United Rentals Want to see what other hedge funds are holding URI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for United Rentals, Inc. (NYSE:URI – Free Report).
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Most people probably don't know much about United Rentals (URI +0.63%), but it's worth getting to know more about, as it might make you considerably more wealthy. It's not a well-known high-tech stock. Instead, it's the world's largest equipment rental company, with around 1,500 locations worldwide and roughly 4,800 classes of equipment available to rent -- such as forklifts, excavators, storage containers, porta potties, generators, hand tools, and trucks.
Before you start dozing off, know this: Its stock has averaged annual gains of 26% over the past 15 years and 31% over the past decade. Could its shares soar for you, too? What if you invested, say, $10,000 in United Rentals? Let's see.
Image source: Getty Images.
Why invest in United Rentals? Here are a few reasons to consider United Rentals for your long-term portfolio.
It sports a powerful growth catalyst in data centers, which are proliferating across America (and elsewhere) and which are needed for artificial intelligence (AI) equipment and processing. As a Motley Fool research report on AI spending has noted, technology companies spent $1 trillion on data center construction in 2025 -- and that sum is expected to jump to $4 trillion by 2030.
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It's mostly based in the U.S., and may replicate its model and success internationally, which gives it a lot of room for further growth.
The stock seems reasonably valued to somewhat overvalued at current levels, with a recent price-to-earnings (P/E) ratio of 24.5 and a price-to-sales ratio of 3.75. Those numbers do seem a bit on the steep side, but the company is growing at a good clip, which can justify higher valuations. Its first-quarter revenue rose 7% year over year, with rental revenue rising 8.7% and adjusted earnings per share up 10%.
CEO Matt Flannery has said: "I am confident the combination of our resilient business model, prudent capital allocation, and balance sheet strength will allow us to continue to drive profitable growth, generate strong free cash flow, and deliver compelling returns to our investors."
How could $10,000 grow in United Rentals? So how might you amass "serious wealth" via an investment in United Rentals? Well, let's use a single $10,000 investment, and let's assume that it grows at 16% annually. (We can't assume that it will maintain those past annual growth rates of 26% or 31%, after all, and it's possible that 16% will be too high -- or too low.)
That single investment would grow to $44,114 over 10 years, to $194,608 over 20 years, and to $858,499 over 30 years. What if you invested $10,000 per year, though? Then you'd end up with $247,329 after 10 years, $1.3 million after 20 years, and $6.2 million after 30 years.
There's no guarantee of any of this, of course, and the data center boom may not last for 10, 20, or 30 years. Still, United Rentals does seem capable of delivering meaningful growth as part of a diversified long-term stock portfolio.
Construction Safety Week underscores opportunity to advance safety culture and performance
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI), the world’s largest equipment rental company, today outlined five practical, often underutilized, ways contractors can strengthen jobsite safety, improve compliance and protect productivity.
Timed with Construction Safety Week (May 5–9), these actions reflect effective strategies contractors can adopt to reduce risk, safeguard crews and build a stronger safety culture across project phases.
“Safety is a leading driver on a jobsite, from protecting people to keeping projects on schedule,” said Teresa Kee, Vice President, Health and Safety, United Rentals. “When contractors take a proactive, systems-based approach to safety, they can reduce risk, improve productivity and strengthen overall project performance. We help customers do that with integrated solutions, expertise and training designed for real jobsite conditions.”
Five Ways to Keep Crews Safe
1. Strengthen Access Management
As jobsites grow more complex, controlling who and what enters the site is critical. RFID-enabled access management systems streamline worker authentication at entry points and restrict equipment use to authorized personnel, improving both safety and operational control.
2. Prioritize Preventive Maintenance
Equipment failures can create avoidable delays. Structured maintenance and inspection programs help identify issues early, reducing the risk of breakdowns and improving overall fleet safety. Keeping equipment operating effectively and efficiently reduces the chance of potential distractions to jobsite safety focus. Partnering with a single provider can simplify these processes and ensure consistency.
3. Stabilize Ground Conditions with Matting
Unstable ground increases the risk of slips, trips, falls and equipment instability. Ground protection mats create level, secure surfaces for both workers and heavy equipment, improving traction, reducing damage and supporting safer movement across the jobsite.
4. Designate and Train a Competent Person
Trenching and excavation remain among the high-risk activities. OSHA requires a designated competent person to oversee these operations, including soil classification and protective system selection. Ongoing training helps to ensure this role stays aligned with current standards and best practices.
5. Expand Visibility with Remote Monitoring
Remote monitoring technologies extend oversight without increasing exposure to risk. Solutions that track temperature, humidity and site conditions help inform decisions around ground thaw, concrete curing and equipment use, while reducing the need for workers to access sites in hazardous conditions.
Advancing Worksite Safety with United Rentals
United Rentals Worksite Performance Solutions™ integrate technology, access control and real-time insights to help contractors improve safety outcomes and jobsite efficiency. United Academy® provides comprehensive training and certification programs to support safer, more productive worksites.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,658 rental locations in North America, 44 in Europe, 46 in Australia and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 27,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers a fleet of equipment for rent with a total original cost of $22.59 billion. United Rentals is a member of the Standard & Poor’s 500 Index, the Barron’s 400 Index and the Russell 3000 Index® and is headquartered in Stamford, Conn. Additional information about United Rentals is available at unitedrentals.com.
Early adoption signals strong demand for faster equipment planning
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals (NYSE: URI) today announced the expansion of its AI-powered Equipment Agent to be accessible in ChatGPT, giving customers a faster, more intuitive way to identify equipment solutions for complex jobsites and time-sensitive projects. The launch marks the first equipment rental application available in the ChatGPT store, expanding how customers can access United Rentals' expertise within the digital tools they already use every day.
Originally launched earlier this year as a first-of-its-kind AI-powered equipment recommendation solution for the equipment rental industry, the Equipment Agent uses a conversational experience to guide customers through key project requirements and quickly connect them to relevant equipment recommendations for the job.
“Leveraging AI can make expertise easier to access,” said Tony Leopold, Senior Vice President - Chief Technology and Strategy Officer, United Rentals. “By bringing the Equipment Agent into ChatGPT, we’re meeting customers in the platforms they already use to plan work, solve problems and make decisions. It’s part of our broader focus on creating digital experiences built around the speed, complexity and realities of modern jobsites.”
The Equipment Agent incorporates fleet knowledge, application expertise and operational insight from across United Rentals’ business. Early usage data indicates customers are leveraging the tool for specification and rental-related queries.
The expansion reflects United Rentals’ broader innovation strategy focused on reducing friction for customers, improving access to expertise and building digital experiences that help jobsites operate more safely, efficiently and productively.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,658 rental locations in North America, 44 in Europe, 46 in Australia and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 27,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers a fleet of equipment for rent with a total original cost of $22.59 billion. United Rentals is a member of the Standard & Poor’s 500 Index, the Barron’s 400 Index and the Russell 3000 Index® and is headquartered in Stamford, Conn. Additional information about United Rentals is available at unitedrentals.com.
Key Takeaways United Rentals expanded its AI Equipment Agent into the ChatGPT store in 2026.URI said the tool helps customers identify equipment faster for complex job-site needs.United Rentals completed four acquisitions in Q1 2026 to expand specialty capabilities. United Rentals, Inc. (URI - Free Report) announced the expansion of its AI-powered Equipment Agent into ChatGPT, marking the debut of an equipment rental application available in the ChatGPT store.
This strategic move aims to offer the customers a faster and more convenient way to identify equipment solutions for complex jobsites and time-sensitive projects.
Originally launched earlier in 2026, the Equipment Agent is the equipment rental industry’s first AI-powered recommendation tool, using a conversational interface to help customers identify project needs and quickly find suitable equipment. The tool integrates fleet knowledge, application expertise and operational insight from across United Rentals’ business.
Moreover, this expansion aligns with URI’s broader innovation strategy to reduce customer friction, improve access to expertise and create digital solutions that make jobsites safer, more efficient and more productive.
United Rental’s Portfolio Expansion Bodes WellUnited Rentals engages in acquisitions and partnerships to expand its geographic reach and product breadth that complement its organic network. As the largest equipment rental company, it benefits from brand recognition and an offering of roughly 5,000 equipment classes that support customer loyalty and cross-selling.
Management noted that the four acquisitions completed in the first quarter of 2026 possess strategic value in enhancing product breadth and filling capability gaps rather than driving outsized near-term revenue growth. URI has emphasized a selective approach, with a focus on adding specialty capabilities and local density where returns are attractive.
URI stock has gained 14.6% year to date, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index. Its prospects are gaining from solid execution across its general rentals and specialty businesses amid growing demand trends across construction and industrial end markets.
Image Source: Zacks Investment Research
URI Stock’s Zacks Rank & Key PicksUnited Rentals currently carries a Zacks Rank #3 (Hold).
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The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS implies an increase of 47.4% and 63.3%, respectively, from a year ago.
Quanta Services, Inc. (PWR - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.3%, on average. Shares of Quanta have increased 69.2% year to date.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates improvements of 21.4% and 29.8%, respectively, from the prior-year levels.
A month has gone by since the last earnings report for United Rentals (URI - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is United Rentals due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for United Rentals, Inc. before we dive into how investors and analysts have reacted as of late.
United Rentals Q1 Earnings & Revenues Beat on Strong Rental DemandUnited Rentals reported solid first-quarter 2026 results, with adjusted earnings per share (EPS) and total revenues beating the Zacks Consensus Estimate and growing year over year.
Solid execution across its general rentals and specialty businesses helped drive record first-quarter results, while fleet productivity increased 2.3% from the year-ago period.
United Rentals’ Q1 Earnings & RevenuesURI posted adjusted earnings per share of $9.71 for the first quarter, up 9.6% year over year and beat the Zacks Consensus Estimate of $9.01 by 7.8%.
Total revenue rose 7.2% year over year to $3.99 billion and topped the consensus mark of $3.87 billion by 2.9%.
A closer look at the top line shows that equipment rentals remained the dominant contributor in the quarter. Equipment rentals revenue totaled $3.42 billion (up 8.7% year over year), supported by continued demand across construction and industrial end markets. Average original equipment at cost increased 5.7% year over year.
Non-rental lines were mixed but additive to the overall revenue base. Sales of rental equipment were $350 million (down 7.2% year over year), while sales of new equipment were $84 million, up 20% from the year-ago quarter. Contractor supplies sales contributed $40 million and service and other revenues added $92 million, reflecting URI’s broader “one-stop shop” positioning around jobsite solutions.
United Rentals Sees Divergent Margin Trends by SegmentSegment results highlighted both momentum and mix-related pressure points.
In the General Rentals segment, equipment rentals revenue increased 6.2% year over year to $2.23 billion, and equipment rentals gross margin expanded 150 basis points (bps) to 33.8%.
Specialty continued to outgrow the core, with equipment rentals revenue up 13.8% to $1.19 billion. However, specialty equipment rentals gross margin declined 170 bps to 41.4%, with the company citing higher depreciation expense, increased delivery costs and revenue mix changes tied to growth in lower-margin ancillary revenues.
United Rentals Margin Profile Improves ModestlyAt the consolidated level, profitability expanded slightly year over year. Gross profit was $1.47 billion, implying a gross margin of 36.9% versus 36.5% in the year-ago quarter.
Operating income totaled $869 million, producing an operating margin of 21.8% compared with 21.6% a year earlier. The quarter included a $45 million restructuring charge versus $1 million in the first quarter of 2025, tied to the consolidation of certain functions and other cost reduction measures. Selling, general and administrative expenses were $441 million, essentially flat year over year, suggesting cost discipline amid a higher revenue base.
URI also delivered adjusted EBITDA of $1.76 billion, translating to a 44.1% margin for the quarter, which was up 80 bps year over year.
United Rentals Balance Sheet Supported ReturnsURI’s balance sheet and liquidity profile remained a core support for shareholder returns and fleet investment. As of March 31, 2026, total liquidity was $3.38 billion, including $156 million of cash and cash equivalents, while the net leverage ratio was 1.9.
Net cash provided by operating activities totaled $1.51 billion (up from $1.43 billion from the year-ago period), and free cash flow was $1.05 billion (down from $1.08 billion a year ago). URI continued investing in the fleet, including gross payments for purchases of rental equipment of $767 million and gross rental capital expenditures of $874 million.
Capital returns were meaningful alongside that reinvestment. The company returned $500 million to shareholders during the quarter, consisting of $375 million in share repurchases and $125 million in dividends paid. URI also declared a quarterly dividend of $1.97 per share, payable May 27, 2026, to stockholders of record on May 13.
URI Guidance Rose Across Key 2026 TargetsManagement raised full-year fiscal 2026 targets, lifting expectations across several major line items versus the prior outlook. For total revenue, URI now expects $16.9-$17.4 billion, up from the prior range of $16.8-$17.3 billion.
The company also increased its adjusted EBITDA outlook to $7.625-$7.875 billion from $7.575-$7.825 billion expected earlier. On the investment front, URI lifted its net rental capital expenditures after gross purchases target to $2.95-$3.35 billion, after gross purchases of $4.4-$4.8 billion. The prior view called for net rental capital expenditures of $2.85-$3.25 billion, after gross purchases of $4.3-$4.7 billion.
Cash generation expectations moved higher as well. URI now forecasts net cash provided by operating activities of $5.4-$6.2 billion, up from $5.3-$6.1 billion. The company maintained its free cash flow outlook excluding restructuring-related payments at $2.15-$2.45 billion, unchanged from the prior outlook.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresCurrently, United Rentals has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, United Rentals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Wall Street is rediscovering the stock-split playbook. KLA (NASDAQ: KLAC | KLAC Price Prediction) announced a 10-for-1 forward stock split in May 2026 alongside a fiscal Q3 earnings beat and a roughly 21% dividend hike, with shares trading near the $1,800 range.
The stock-split conversation is heating up again. KLA announced a 10-for-1 forward split in May 2026, and Booking Holdings completed a 25-for-1 split announced in February 2026. With two marquee names in the four-digit club resetting their share prices in the same year, investors are combing through the rest of the high-priced list looking for the next candidate.
Among the names mentioned most often are ASML Holding (NASDAQ: ASML | ASML Price Prediction), GE Vernova (NYSE: GEV), SanDisk (NASDAQ: SNDK), and United Rentals (NYSE: URI). None has announced a split, hinted at one in filings, or telegraphed board action. The ranking below reflects structural likelihood based on nominal price, recent run-up, retail appeal, and sector precedent, counting down from least likely to most likely.
4. ASML ASML carries the heftiest market cap at roughly $629.3 billion, with American depository receipts (ADRs) recently at $1,632.90 after a 122.9% one-year gain. Q1 2026 earnings showed quarterly revenue growth of 13.2% year over year and a trailing P/E of 54x. The company announced a new €12 billion buyback program running through December 2028 and lifted its FY25 dividend.
The bull case: four-digit ADR price and surging AI-driven lithography demand. The bear case is stronger. ASML is a Dutch-domiciled foreign issuer whose ADRs rarely split. Its shareholder base skews heavily institutional, and management has shown no interest in resetting the price. With analysts targeting $1,663.96 and a deep European holder base accustomed to high nominal prices, a split would be out of character. ASML lands at #4.
3. United Rentals United Rentals trades at $938.62, the lowest nominal price in this group, with a market cap of about $58.8 billion. Q1 2026 produced adjusted EPS of $9.71 versus $8.94 expected on $3.985 billion in revenue, up 7.15% year over year. Management raised 2026 guidance to $16.9 billion to $17.4 billion in revenue. Capital return is robust: a fresh $5 billion buyback authorization and a quarterly dividend lifted 10% to $1.97.
Insider activity tells the story. Nine directors acquired 203 shares each at $937.00 on May 8, 2026, while CEO Matthew Flannery disposed of 22,768 shares at $984.976 on April 24, 2026. United Rentals has never executed a stock split. Its run-up has been buyback-driven and its shareholder base is 96.7% institutional. Without a retail catalyst, the cultural disposition leans against a split.
2. GE Vernova Spun off from General Electric in April 2024, GE Vernova trades at $1,038.74 with a market cap near $279.1 billion. Q1 2026 delivered $9.30 billion in revenue, up 15.79% year over year, orders of $18.3 billion (up 71% organically), and an Electrification book-to-bill near 2.5x. Management raised 2026 guidance to $44.5 billion to $45.5 billion in revenue, doubled the dividend to $0.50 per quarter, and expanded its buyback authorization to $10 billion.
CEO Scott Strazik told investors, “our backlog growing by more than $13 billion quarter-over-quarter,” fueled by data center and AI infrastructure demand. The bull case: a young, retail-loved AI infrastructure name approaching four-digit territory with a one-year gain of 126.4%. The bear case: institutional ownership of 79.2% and a leadership team prioritizing buybacks and dividend growth over cosmetic actions. The combination of price level, AI narrative, and fresh corporate identity puts GE Vernova at #2.
1. SanDisk SanDisk is the clearest structural split candidate. The pure-play NAND name trades at $1,478.69, the highest nominal price in the group, with a market cap of roughly $219.0 billion. The chart tells a staggering story: up 522.9% year to date and 3,807.7% over the past year.
Fundamentals justify the move. Q3 FY2026 delivered non-GAAP EPS of $23.41 versus $14.66 consensus on $5.95 billion in revenue, up 251.03% year over year, with gross margin of 78.4%. The Datacenter segment grew 645% year over year to $1.47 billion. Guidance for Q4 calls for revenue of $7.75 billion to $8.25 billion and non-GAAP EPS of $30.00 to $33.00. CEO David Goeckeler said, “This quarter marks a fundamental inflection point for Sandisk where our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter.”
This is the bull case: highest nominal price of the four, U.S.-listed, recent spin-off from Western Digital, zero long-term debt after $650 million in debt repayment, and a newly authorized share repurchase program. On the other hand, SanDisk is a young public company still establishing its capital-return identity, and management has not signaled split intent. On every structural factor that matters, though, SanDisk leads the pack.
The hunt for the next massive share price reset is on—but internal resistance could keep some four-digit giants from ever pulling the trigger. Key Takeaway for Investors None of these four has announced or signaled a stock split. Splits are cosmetic: market cap, fundamentals, and intrinsic value remain unchanged. What they can shift is retail demand, options accessibility, and short-term sentiment. If the four-digit club continues to thin behind KLA and Booking, SanDisk’s combination of nominal price, momentum, and U.S.-listed structure makes it the most natural next candidate, with GE Vernova a credible second. ASML and United Rentals look unlikely to follow that path, though both continue returning capital aggressively through buybacks and dividends. Earnings power and cash flow drive long-term value far more than split mechanics.
Top Awards recognize strong culture and focus on Military Communities
STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI), the world's largest equipment rental company, today announced it has been recognized with multiple industry awards honoring its commitment to creating an exceptional workplace and supporting the growth and success of its people.
These recognitions reflect United Rentals' focus on fostering a culture built on safety, collaboration, professional development and service -- empowering employees to grow their careers while delivering outstanding results for customers and communities. The awards recognize the general culture while calling out the company’s support for military communities.
The company was recognized with the following awards:
Glassdoor Best Places to Work 2026
Glassdoor's Best Places to Work award recognizes companies that earn high levels of employee satisfaction and trust. United Rentals was recognized for its opportunities for career growth, supportive leadership and culture of empowerment. The award is based on voluntary, anonymous employee reviews submitted on Glassdoor, evaluating workplace experiences, culture and leadership.
America's Most Patriotic Companies 2026
Presented by Newsweek, America's Most Patriotic Companies recognizes organizations that demonstrate a strong commitment to supporting military personnel, veterans and their communities. Companies are selected based on formal programs, benefits and initiatives that support military-connected individuals, as well as independent research, national surveys and media analysis.
Military Friendly® Employer Gold and Military Spouse Friendly Employer
Presented by VIQTORY, the Military Friendly® Employer Gold designation recognizes organizations that demonstrate leadership in recruiting, retaining and advancing veterans. United Rentals also received Military Spouse Friendly Employer recognition for its commitment to supporting military spouses through hiring initiatives, career development opportunities, remote work options and Permanent Change of Station (PCS) support.
"Our people are the foundation of everything we do at United Rentals," said Craig Pintoff, Executive Vice President and Chief Administrative Officer, United Rentals. "We are committed to creating a workplace where employees are supported and empowered to grow their careers. By investing in our people and fostering a culture built on teamwork and service, we strengthen our ability to deliver exceptional experiences for our customers and make a positive impact in the communities we serve."
Information about career opportunities at United Rentals is available on the careers section of the company's website.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,658 rental locations in North America, 44 in Europe, 46 in Australia and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 27,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers a fleet of equipment for rent with a total original cost of $22.59 billion. United Rentals is a member of the Standard & Poor’s 500 Index, the Barron’s 400 Index and the Russell 3000 Index® and is headquartered in Stamford, Conn. Additional information about United Rentals is available at unitedrentals.com.
In an environment filled with artificial intelligence (AI) enthusiasm and palpable fear of missing out (FOMO), it pays to remember that some of the most basic business models can reward investors, too.
Look at United Rentals (URI +0.63%). Over the past decade, this industrial stock returned 1,360%, beating the S&P 500 by a margin of better than 5-to-1. During that period, United Rentals trounced the broader industrial sector by more than 6x -- all while operating in a decidedly prosaic industry.
United Rentals is an equipment leasing juggernaut. Image source: Getty Images.
Need a forklift for a warehouse or a boom lift for a jobsite? Call United Rentals. The company also leases higher-end equipment manufactured by Caterpillar and Deere. It's a business model that makes a lot of sense. The gear produced by Caterpillar, Deere, and others is pricey, and there are times when farmers, factories, and supervisors need equipment for only a few days or weeks, making it uneconomical to buy bulldozers and forklifts outright.
A growth stock in disguise Perhaps the following numbers aren't what investors are accustomed to in high-flying semiconductor stocks, but 10-year compound annual growth rates (CAGRs) of 10% on the top line and 20% for earnings per share (EPS) have a growth-stock feel. Those percentages belong to United Rentals.
Speaking of growth-stock vibes, United Rentals has AI inroads. All that data center construction and the money utilities are spending to meet soaring power demand require the very equipment that United Rentals leases. Those are among the reasons revenue for the company's utilities segment more than doubled over the past decade.
United Rentals has the scale needed to meet the demands of data center and utilities customers. Over its nearly three decades in business, United Rentals executed hundreds of acquisitions, elevating its share of the North American equipment rental market to 16%. Market share leadership is data for investors. Customers want accessibility. With 1,360 locations in the U.S. and Canada, United Rentals answers that call.
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All of that sounds good, and it is, but United Rentals isn't a risk-free bet. There are some concerns that the stock is stretched on valuation and that the company is potentially vulnerable to losing some hyper-local business to technologically nimble rivals. Valid concerns to be sure, but it's worth noting that in the first quarter, United Rentals posted an 18% gain in ancillary and recent revenue. That's industry-speak for fostering a devoted customer base.
United Rentals' balance sheet is in decent shape Let's not sugarcoat it: United Rentals operates in a cost-intensive arena, so there's going to be some debt on the balance sheet. To its credit, the company is targeting a net debt/earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 1.5 to 2.5, down from a prior range of 2 to 3.
Additionally, large-scale consolidation opportunities are limited, indicating that if United Rentals goes hunting for deals, they'll be on the smaller side.
Shareholder rewards are also part of the United Rentals story. In January, the company announced a new $5 billion share repurchase program, with plans to buy back $1.5 billion in stock this year. That was accompanied by a 10% dividend hike. Those are signs that United Rentals is the type of stock that can help investors endure topsy-turvy markets.
On June 03, 2026, we present a DCF analysis for United Rentals Inc URI , a company that has shown impressive price performance over the past year, with a 45.1% increase. The stock has also gained 23.4% year-to-date and 5.0% over the past month.
DCF Earnings-based intrinsic value of $1100.95 compared to the current price of $994.82, indicating a margin of safety of 9.6%. DCF Free Cash Flow (FCF)-based intrinsic value is $145.41, suggesting a significantly overvalued status. GF Score™ of 95/100 indicates high reliability of the DCF inputs. What Is URI Worth? DCF Earnings-Based Model The DCF earnings-based model for United Rentals Inc utilizes a two-stage growth approach. In the first stage, we project the company's earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are critical for determining the intrinsic value of the stock.
Parameter Value Current EPS (TTM, excl. non-recurring) $42.23 10-Year Growth Rate 17.3% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage (Years 1-10), we expect the EPS to grow at a rate of 17.3% per year, discounted at a rate of 11%. The calculated value for this growth stage is $579.33 per share. In the second stage (Years 11-20), we apply a terminal growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $521.62 per share.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.3%, discounted at 11% $579.33 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $521.62 Intrinsic Value Growth + Terminal $1100.95 Comparing the current price of $994.82 to the intrinsic value of $1100.95, we find that the stock is fairly valued with a margin of safety of 9.6%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the URI DCF Calculator.
What Does the Free Cash Flow DCF Say? In contrast to the earnings-based model, the Free Cash Flow (FCF) DCF model yields an intrinsic value of $145.41. This stark difference from the earnings-based intrinsic value indicates a significant divergence in valuation perspectives. The FCF-based model suggests that URI is significantly overvalued, with a margin of safety of -584.1%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for United Rentals Inc is calculated at $830.56, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When comparing all three models, we see that the DCF earnings-based model suggests fair valuation, while the FCF model indicates significant overvaluation, and GF Value™ suggests the stock is overvalued as well. For more information, visit the GF Value™ page.
What Does URI's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). The following table summarizes URI's GF Score™ metrics:
Metric Rating GF Score™ 95/100 Financial Strength 5/10 Profitability 10/10 Growth 10/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 4/5 stars, this indicates that the DCF model is more reliable for this stock. For more details, visit the URI stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future economic conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a mixed consensus. The DCF earnings model suggests that URI is fairly valued, while the DCF FCF model indicates significant overvaluation, and GF Value™ also suggests overvaluation. Overall, the consensus leans towards URI being overvalued.
For the full DCF analysis, visit the URI DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is URI's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
