We have reached the middle of the first-quarter earnings season, with most of the energy giants having already reported results. Since the energy business environment was favorable in the March quarter, thanks to high commodity prices, backed by the Iran war, APA Corporation (APA - Free Report) , Archrock, Inc. (AROC - Free Report) and Devon Energy Corp. (DVN - Free Report) are likely to report better-than-expected earnings.
How Oil Prices Behaved in Q1To have an idea of how oil prices behaved in the March quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for January, February and March of this year were $60.04 per barrel, $64.51 per barrel and $91.38 per barrel, respectively, per EIA data. Commodity prices were $60.89 per barrel, $60.06 per barrel and $57.97 per barrel, respectively, in October, November and December of 2025, according to the EIA. Investors should note that a more favorable crude pricing environment is likely to have aided the exploration and production businesses.
The favorable commodity prices are likely to have aided production volumes, which is expected to have backed the demand for transportation pipelines of the midstream energy players.
How to Pick the Right Stocks?Given the backdrop, it is by no means an easy task for investors to arrive at picks that have the potential to deliver better-than-expected earnings from the vast universe of energy stocks.
While there is no fool-proof method of picking outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks that have high chances of delivering a surprise in their upcoming earnings announcement. Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.
The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our ChoicesAPA Corporation, a leading producer of oil and natural gas, is likely to have benefited from a favorable commodity pricing scenario.
APA has an Earnings ESP of +14.52% and currently carries a Zacks Rank #2. It is scheduled to release first-quarter results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is a well-known name in the natural gas compression business and is likely to have capitalized on the demand for growing clean energy. The firm is scheduled to report earnings on May 6, has an Earnings ESP of +5.00% and a Zacks Rank of 3.
Devon Energy is a leading producer of oil and natural gas. The company is likely to have gained from favorable oil prices. The firm, scheduled to release first-quarter earnings on May 5, has an Earnings ESP of +3.23% and a Zacks Rank #2.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Archrock Inc. (AROC - Free Report) . This company, which is in the Zacks Oil and Gas - Field Services industry, shows potential for another earnings beat.
This natural gas compression services business has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 37.47%.
For the last reported quarter, Archrock Inc. came out with earnings of $0.69 per share versus the Zacks Consensus Estimate of $0.4 per share, representing a surprise of 72.50%. For the previous quarter, the company was expected to post earnings of $0.41 per share and it actually produced earnings of $0.42 per share, delivering a surprise of 2.44%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Archrock Inc.. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Archrock Inc. has an Earnings ESP of +5.00% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on May 5, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
HOUSTON, May 05, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the first quarter 2026.
First Quarter 2026 Highlights
Revenue for the first quarter of 2026 was $373.8 million compared to $347.2 million in the first quarter of 2025.Net income for the first quarter of 2026 was $73.8 million and EPS was $0.41, an increase of approximately 4.1% and 2.5%, respectively, compared to $70.9 million and $0.40, respectively, in the first quarter of 2025.Adjusted net income (a non-GAAP measure defined below) for the first quarter of 2026 was $74.4 million and adjusted EPS (a non-GAAP measure defined below) was $0.42, compared to $74.5 million and $0.42, respectively, in the first quarter of 2025.Adjusted EBITDA (a non-GAAP measure defined below) for the first quarter of 2026 was $221.0 million compared to $197.8 million in the first quarter of 2025. Declared a quarterly dividend of $0.22 per common share for the first quarter of 2026, approximately 16% higher compared to the first quarter of 2025, resulting in dividend coverage of 3.5x.Returned $44.3 million to stockholders through dividends and share repurchases during the first quarter of 2026 compared to $34.4 million during the first quarter of 2025. Management Commentary and Outlook
“Archrock is off to a strong start for 2026, generating meaningful earnings per share, free cash flow and increased shareholder returns during the first quarter, bolstered by a growing order book that continues to support our longer-term outlook,” said Brad Childers, Archrock’s President and Chief Executive Officer. “Our contract operations fleet has delivered full utilization over a multi-year period, and profitability continues to benefit from strong execution and the rollout of additional large and electric motor drive horsepower supporting critical midstream infrastructure. Additionally, we continued to high-grade our fleet with the sale of non-strategic compressor units totaling approximately 40,000 horsepower. First quarter underlying business performance exceeded our basis for guidance, though SG&A expense came in higher. We remain on pace to achieve our full-year 2026 Adjusted EBITDA guidance range of between $865 million and $915 million, which we expect will translate into meaningful free cash flow generation for the year.
“As the buildout of U.S. midstream infrastructure continues to support expected growth in LNG exports and rising power demand from data centers, the strategic importance of U.S. energy is further underscored by ongoing geopolitical uncertainty. We are focused on growing our profitable platform by maximizing customer service and operational reliability, accelerating adoption of the technologies we continue to deploy, and leveraging our balance sheet through returns-based capital allocation that provides flexibility for organic and inorganic growth while increasing shareholder returns,” concluded Childers.
First Quarter 2026 Financial Results
Archrock’s first quarter 2026 net income of $73.8 million included a non-cash long-lived and other asset impairment of $5.3 million and transaction-related costs totaling $0.6 million. Archrock’s first quarter 2025 net income of $70.9 million included transaction-related costs totaling $3.9 million, a non-cash long-lived and other asset impairment of $1.0 million, and restructuring charges of $0.7 million.
Adjusted EBITDA for the first quarter of 2026 and 2025 included $10.1 million and $7.3 million, respectively, in net gains primarily related to the sale of compression and other assets.
Selling, general and administrative expenses for the first quarter of 2026 were $45.2 million, compared to $37.2 million in the first quarter of 2025. The increase was primarily due to a $4.1 million increase in long-term cash-settled incentive compensation expense as a result of an increase in our stock price; and a $3.7 million acceleration of expense recognition for long-term incentive compensation pursuant to an executive retention agreement, which is not expected to recur in the remaining quarters of the year.
Contract Operations
For the first quarter of 2026, contract operations segment revenue totaled $330.9 million, an increase of 10% compared to $300.4 million in the first quarter of 2025. Total operating horsepower at the end of the first quarter of 2026 was 4.5 million compared to 4.3 million at the end of the first quarter of 2025. Archrock maintained full fleet utilization during the first quarter of 2026, ending at 95%.
Adjusted gross margin for the first quarter of 2026 was $237.6 million, up 13% from $210.6 million in the first quarter of 2025. Adjusted gross margin percentage for the first quarter of 2026 was 72%, compared to 70% in the first quarter of 2025.
Aftermarket Services
For the first quarter of 2026, aftermarket services segment revenue totaled $42.9 million, compared to $46.8 million in the first quarter of 2025, primarily reflecting lower service activity and a seasonal slowdown. Adjusted gross margin for the first quarter of 2026 was $9.8 million, compared to $11.5 million in the first quarter of 2025. Adjusted gross margin percentage for the first quarter of 2026 was 23%, compared to 25% for the first quarter of 2025.
Balance Sheet
Long-term debt was $2.4 billion and our available liquidity totaled $1.4 billion at March 31, 2026. Our leverage ratio was 2.6x as of March 31, 2026, down from 3.2x as of March 31, 2025.
On January 21, 2026, we completed a private offering of $800 million aggregate principal amount of 6.000% senior notes due 2034 and received net proceeds of $789.4 million after deducting issuance costs. The net proceeds were used to repay borrowings under our $1.5 billion asset-based revolving credit facility due May 2028 (the “Credit Facility”).
On April 1, 2026, we repurchased our $800.0 million of 6.250% senior notes due April 2028 (the “2028 Notes”). The 2028 Notes were redeemed at 100% of their $800.0 million aggregate principal amount plus accrued and unpaid interest of approximately $25.0 million with borrowings under the Credit Facility. We recorded a debt extinguishment gain of $0.7 million related to unamortized debt premium during the second quarter of 2026, partially offset by unamortized issuance costs.
Shareholder Returns
Quarterly Dividend
Our Board of Directors recently declared a quarterly dividend of $0.22 per share of common stock, or $0.88 per share on an annualized basis. Dividend coverage in the first quarter of 2026 was 3.5x. The first quarter 2026 dividend will be paid on May 19, 2026 to stockholders of record at the close of business on May 12, 2026.
Share Repurchase Program
During the first quarter of 2026, we repurchased 170,952 shares of common stock at an average price of $25.87 per share, for an aggregate of approximately $4.4 million. The share repurchase program had an available capacity of $113.2 million as of March 31, 2026.
Since April 2023 and through March 31, 2026, we have repurchased 4,632,263 shares of common stock at an average price of $20.91 per share for an aggregate of $96.9 million.
Summary Metrics
(in thousands, except percentages and ratios)
Three Months Ended March 31, December 31, March 31, 2026 2025 2025 Net income $73,794 $116,772 $70,850 Adjusted net income (1) $74,372 $118,253 $74,484 Adjusted EBITDA (1) $220,993 $269,447 $197,845 Contract operations revenue $330,880 $327,088 $300,397 Contract operations adjusted gross margin $237,609 $256,613 $210,598 Contract operations adjusted gross margin percentage (2) 72% 78% 70 % Aftermarket services revenue $42,887 $49,985 $46,766 Aftermarket services adjusted gross margin $9,814 $11,954 $11,509 Aftermarket services adjusted gross margin percentage 23% 24% 25 % Selling, general, and administrative $45,231 $36,679 $37,207 Net cash provided by operating activities $185,853 $214,477 $115,628 Cash available for dividend (1) $134,067 $188,866 $132,247 Cash available for dividend coverage (3) 3.5x 4.9x 3.9 x Adjusted free cash flow (1) $91,902 $199,962 $(48,403) Adjusted free cash flow after dividend (1) $51,995 $163,086 $(82,588) Total available horsepower (at period end) (4) 4,765 4,788 4,461 Total operating horsepower (at period end) (5) 4,528 4,571 4,283 Horsepower utilization spot (at period end) (6) 95.0% 95.5% 96.0 % ________________________________
(1) Management believes adjusted net income, adjusted EBITDA, cash available for dividend, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
(2) Contract operations adjusted gross margin percentage for the fourth quarter of 2025 was 78%, which included a $22.9 million cash net benefit related to prior-period sales and use tax audit settlements. Excluding this benefit, adjusted gross margin percentage for the fourth quarter of 2025 was 71.5%.
(3) Defined as cash available for dividend divided by dividends declared for the period.
(4) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
(5) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
(6) Defined as total operating horsepower divided by total available horsepower at period end.
Conference Call Details
Archrock will host a conference call on May 6, 2026, to discuss first quarter 2026 financial results. The call will begin at 8:30 a.m. Eastern Time.
To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States or 1 (646) 307-1963 for international calls. The access code is 4749623.
A replay of the webcast will be available on Archrock’s website for 90 days following the event.
The company may from time to time publish additional materials for investors at the same website address.
Adjusted net income, a non-GAAP measure, is defined as net income excluding restructuring charges, transaction-related costs and debt extinguishment loss adjusted for income taxes. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted net income, and a reconciliation of basic and diluted earnings per common share, the most directly comparable GAAP measure, to adjusted basic and diluted earnings per share, appear below.
Adjusted EBITDA, a non-GAAP measure, is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted EBITDA, and a reconciliation of our full year 2026 net income to adjusted EBITDA guidance, appear below.
Adjusted gross margin, a non-GAAP measure, is defined as total revenue less cost of sales, excluding depreciation and amortization. Adjusted gross margin percentage, a non-GAAP measure, is defined as adjusted gross margin divided by revenue. A reconciliation of net income to adjusted gross margin, and a reconciliation of gross margin, the most directly comparable GAAP measure, to adjusted gross margin and adjusted gross margin percentage, appear below.
Cash available for dividend, a non-GAAP measure, is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items, less maintenance capital expenditures, other capital expenditures, cash taxes and cash interest expense. Reconciliations of net income and net cash provided by operating activities, the most directly comparable GAAP measures, to cash available for dividend, and a reconciliation of our full year 2026 net income to cash available for dividend guidance, appear below.
Adjusted free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash used in investing activities. A reconciliation of net cash provided by operating activities, the most directly comparable GAAP measure, to adjusted free cash flow, appears below.
Adjusted free cash flow after dividend, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash used in investing activities less dividends paid to stockholders. A reconciliation of net cash provided by operating activities, the most directly comparable GAAP measure, to adjusted free cash flow after dividend, appears below.
About Archrock
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com.
Forward-Looking Statements
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Archrock. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to Archrock’s results of operations or of financial condition; fundamentals of Archrock’s industry, including the attractiveness of returns and valuation, stability of cash flows, demand dynamics and overall outlook, and Archrock’s ability to realize the benefits thereof; Archrock’s expectations regarding future economic, geopolitical and market conditions and trends; Archrock’s operational and financial strategies, including planned growth, coverage and leverage reduction strategies, Archrock’s ability to successfully effect those strategies, and the expected results therefrom; Archrock’s financial and operational outlook; demand and growth opportunities for Archrock’s services; structural and process improvement initiatives, the expected timing thereof, Archrock’s ability to successfully effect those initiatives and the expected results therefrom; the operational and financial synergies provided by Archrock’s size; statements regarding Archrock’s dividend policy.
While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: risks related to macroeconomic conditions, including an increase in inflation and trade tensions; pandemics and other public health crises; ongoing international conflicts and tensions; risks related to our operations; competitive pressures; risks of acquisitions or mergers to reduce our ability to make distributions to our common stockholders; inability to make acquisitions on economically acceptable terms; inability to achieve the expected benefits of the acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc. (collectively, “NGCS”) and difficulties integrating NGCS; risks related to our sustainability initiatives; uncertainty to pay dividends in the future; risks related to a substantial amount of debt and our debt agreements; inability to access the capital and credit markets or borrow on affordable terms to obtain additional capital; inability to fund purchases of additional compression equipment; vulnerability to interest rate increases and fluctuations; erosion of the financial condition of our customers; risks related to the loss of our most significant customers; uncertainty of the renewals for our contract operations service agreements; risks related to losing management or operational personnel; dependence on particular suppliers and vulnerability to product shortages and price increases; information technology and cybersecurity risks; tax-related risks; legal and regulatory risks, including climate-related and environmental, social and governance risks.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2025, Archrock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and as set forth from time to time in Archrock’s filings with the Securities and Exchange Commission. These filings are available online at www.sec.gov and www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: Archrock, Inc.
For information, contact:
Megan Repine
VP of Investor Relations
281-836-8360 [email protected]
Archrock, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Revenue: Contract operations$330,880 $327,088 $300,397 Aftermarket services 42,887 49,985 46,766 Total revenue 373,767 377,073 347,163 Cost of sales, exclusive of depreciation and amortization Contract operations 93,271 70,475 89,799 Aftermarket services 33,073 38,031 35,257 Total cost of sales, exclusive of depreciation and amortization 126,344 108,506 125,056 Selling, general and administrative 45,231 36,679 37,207 Depreciation and amortization 69,734 68,872 57,620 Long-lived and other asset impairment 5,259 1,795 972 Restructuring charges 136 108 665 Debt extinguishment loss — 890 — Interest expense 39,510 42,227 37,741 Transaction-related costs 596 876 3,935 Gain on sale of assets, net (10,116) (31,614) (7,335)Other income, net (605) (20) (684)Income before income taxes 97,678 148,754 91,986 Provision for income taxes 23,404 31,851 21,136 Income before equity in net loss of unconsolidated affiliate 74,274 116,903 70,850 Equity in net loss of unconsolidated affiliate 480 131 — Net income$73,794 $116,772 $70,850 Basic and diluted earnings per common share (1)$0.41 $0.67 $0.40 Weighted-average common shares outstanding: Basic 174,084 174,105 174,014 Diluted 174,496 174,458 174,371 ________________________________
(1) Basic and diluted earnings per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted earnings per common share.
Archrock, Inc.
Unaudited Supplemental Information
(in thousands, except percentages, per share amounts and ratios) Three Months Ended March 31, December 31, March 31, 2026 2025 2025 Revenue: Contract operations $330,880 $327,088 $300,397 Aftermarket services 42,887 49,985 46,766 Total revenue $373,767 $377,073 $347,163 Adjusted gross margin: Contract operations $237,609 $256,613 $210,598 Aftermarket services 9,814 11,954 11,509 Total adjusted gross margin (1) $247,423 $268,567 $222,107 Adjusted gross margin percentage: Contract operations (2) 72 % 78 % 70 %Aftermarket services 23 % 24 % 25 %Total adjusted gross margin percentage (1) 66 % 71 % 64 % Selling, general and administrative $45,231 $36,679 $37,207 % of revenue 12 % 10 % 11 % Adjusted EBITDA (1) $220,993 $269,447 $197,845 % of revenue 59 % 71 % 57 % Capital expenditures $113,484 $87,798 $168,140 Proceeds from sale of property, equipment and other assets (21,301) (78,283) (2,904) Net capital expenditures $92,183 $9,515 $165,236 Total available horsepower (at period end) (3) 4,765 4,788 4,461 Total operating horsepower (at period end) (4) 4,528 4,571 4,283 Average operating horsepower 4,553 4,634 4,254 Horsepower utilization: Spot (at period end) (5) 95.0 % 95.5 % 96.0 %Average (5) 95.3 % 95.7 % 96.0 % Dividend declared for the period per share $0.220 $0.220 $0.190 Dividend declared for the period to all stockholders $38,729 $38,703 $33,758 Cash available for dividend coverage (6) 3.5 x 4.9 x 3.9 x Adjusted free cash flow (1) $91,902 $199,962 $(48,403) Adjusted free cash flow after dividend (1) $51,995 $163,086 $(82,588) ________________________________
(1) Management believes adjusted gross margin, adjusted EBITDA, adjusted gross margin percentage, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
(2) Contract operations adjusted gross margin percentage for the fourth quarter of 2025 was 78%, which included a $22.9 million cash net benefit related to prior-period sales and use tax audit settlements. Excluding this benefit, adjusted gross margin percentage for the fourth quarter of 2025 was 71.5%.
(3) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
(4) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
(5) Defined as total operating horsepower divided by total available horsepower at period end (spot) or over time (average).
(6) Defined as cash available for dividend divided by dividends declared for the period.
March 31, December 31, March 31, 2026 2025 2025Balance Sheet Long-term debt (1) $2,379,028 $2,410,893 $2,297,767Total equity 1,518,002 1,491,479 1,349,983 ________________________________
(1) Carrying values are shown net of unamortized premium and deferred financing costs.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted Net Income and Earnings Per Share to Adjusted Earnings Per Share
(in thousands, except per share amounts) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Net income$73,794 $116,772 $70,850 Restructuring charges 136 108 665 Transaction-related costs 596 876 3,935 Debt extinguishment loss — 890 — Tax effect of adjustments (1) (154) (394) (966)Adjusted net income (2)$74,372 $118,253 $74,484 Weighted-average common shares outstanding: Basic 174,084 174,105 174,014 Diluted 174,496 174,458 174,371 Basic and diluted earnings per common share (3)$0.41 $0.67 $0.40 Restructuring charges per share$0.00 $0.00 $0.00 Transaction-related costs per share 0.01 0.01 0.03 Debt extinguishment loss per share — 0.01 — Tax effect of adjustments per share (0.00) (0.00) (0.01)Adjusted basic and diluted earnings per common share (2)$0.42 $0.69 $0.42 ________________________________
(1) Represents an estimated tax effect of restructuring charges, transaction-related costs and debt extinguishment loss based on the federal statutory tax rate of 21%.
(2) Management believes adjusted net income and adjusted earnings per share provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review our current period operating performance, comparability measure and performance measure for period-to-period comparisons without burdened earnings and earnings per share for non-recurring transactional costs.
(3) Basic and diluted earnings per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted earnings per common share.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Gross Margin
(in thousands) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Net income $73,794 $116,772 $70,850 Depreciation and amortization 69,734 68,872 57,620 Long-lived and other asset impairment 5,259 1,795 972 Unrealized change in fair value of investment in unconsolidated affiliate — 25 — Restructuring charges 136 108 665 Debt extinguishment loss — 890 — Interest expense 39,510 42,227 37,741 Transaction-related costs 596 876 3,935 Stock-based compensation expense 6,811 4,671 4,027 Amortization of capitalized implementation costs 1,030 904 762 Indemnification expense, net 239 325 137 Provision for income taxes 23,404 31,851 21,136 Equity in net loss of unconsolidated affiliate 480 131 — Adjusted EBITDA (1) 220,993 269,447 197,845 Selling, general and administrative 45,231 36,679 37,207 Stock-based compensation expense (6,811) (4,671) (4,027)Amortization of capitalized implementation costs (1,030) (904) (762)Unrealized change in fair value of investment in unconsolidated affiliate — (25) — Indemnification expense, net (239) (325) (137)Gain on sale of assets, net (10,116) (31,614) (7,335)Other income, net (605) (20) (684)Adjusted gross margin (1) $247,423 $268,567 $222,107 ________________________________
(1) Management believes adjusted EBITDA and adjusted gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Gross Margin and Gross Margin Percentage to
Adjusted Gross Margin and Adjusted Gross Margin Percentage
(in thousands) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Total revenues $373,767 $377,073 $347,163 Cost of sales, exclusive of depreciation and amortization (126,344) (108,506) (125,056) Depreciation and amortization (69,734) (68,872) (57,620) Gross margin and gross margin percentage 177,689 48% 199,695 53% 164,487 47%Depreciation and amortization 69,734 68,872 57,620 Adjusted gross margin and adjusted gross margin percentage (1) $247,423 66% $268,567 71% $222,107 64% ________________________________
(1) Management believes adjusted gross margin and adjusted gross margin percentage provide useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend
(in thousands) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Net income $73,794 $116,772 $70,850 Depreciation and amortization 69,734 68,872 57,620 Long-lived and other asset impairment 5,259 1,795 972 Unrealized change in fair value of investment in unconsolidated affiliate — 25 — Restructuring charges 136 108 665 Debt extinguishment loss — 890 — Interest expense 39,510 42,227 37,741 Transaction-related costs 596 876 3,935 Stock-based compensation expense 6,811 4,671 4,027 Amortization of capitalized implementation costs 1,030 904 762 Indemnification expense, net 239 325 137 Provision for income taxes 23,404 31,851 21,136 Equity in net loss of unconsolidated affiliate 480 131 — Adjusted EBITDA (1) 220,993 269,447 197,845 Less: Maintenance capital expenditures (34,047) (25,906) (22,753)Less: Other capital expenditures (14,523) (13,189) (6,019)Less: Cash tax payment (70) (345) (92)Less: Cash interest expense (38,286) (41,141) (36,734)Cash available for dividend (2) $134,067 $188,866 $132,247 ________________________________
(1) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
(2) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Cash Provided by Operating Activities to Cash Available for Dividend
(in thousands) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Net cash provided by operating activities $185,853 $214,477 $115,628 Inventory write-downs (93) (121) (188)Benefit from (provision for) credit losses 24 (640) (156)Gain on sale of assets, net 10,116 31,614 7,335 Current income tax benefit 959 1,522 1,182 Cash tax payment (70) (345) (92)Amortization of operating lease ROU assets (1,156) (1,206) (1,204)Amortization of contract costs (4,923) (5,008) (5,889)Deferred revenue recognized in earnings 6,260 9,387 3,746 Indemnification expense, net 239 325 137 Cash restructuring charges 136 359 665 Cash transaction-related costs 596 876 3,935 Time-based cash or equity settled units settled as equity (2,713) — (1,756)Changes in assets and liabilities (12,591) (23,279) 37,676 Maintenance capital expenditures (34,047) (25,906) (22,753)Other capital expenditures (14,523) (13,189) (6,019)Cash available for dividend (1) $134,067 $188,866 $132,247 ________________________________
(1) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Cash Provided By Operating Activities to Adjusted Free Cash Flow
and Adjusted Free Cash Flow After Dividend
(in thousands) Three Months Ended March 31, December 31, March 31, 2026 2025 2025Net cash provided by operating activities $185,853 $214,477 $115,628 Net cash used in investing activities (93,951) (14,515) (164,031)Adjusted free cash flow (1) 91,902 199,962 (48,403)Dividends paid to stockholders (39,907) (36,876) (34,185)Adjusted free cash flow after dividend (1) $51,995 $163,086 $(82,588) ________________________________
(1) Management believes adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
Archrock, Inc.
Unaudited Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Guidance
(in thousands) Annual Guidance Range 2026 Low HighNet income (1) $306,000 $356,000 Interest expense 145,000 145,000 Provision for income taxes 113,000 113,000 Depreciation and amortization 281,000 281,000 Restructuring charges 500 500 Stock-based compensation expense 15,500 15,500 Amortization of capitalized implementation costs 4,000 4,000 Adjusted EBITDA (2) (3) 865,000 915,000 Less: Maintenance capital expenditures (125,000) (135,000)Less: Other capital expenditures (25,000) (35,000)Less: Cash tax expense (3,000) (3,000)Less: Cash interest expense (140,000) (140,000)Cash available for dividend (4) (5) $572,000 $602,000 ________________________________
(1) 2026 annual guidance for net income does not include the impact of long-lived and other asset impairment because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact Adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2025 and 2024 was $18.3 million and $10.7 million, respectively.
(2) Reflects an estimate of expenses to be incurred related to the TOPS and NGCS acquisitions.
(3) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
(4) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
(5) A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(58.9) million and $(25.8) million for the years 2025 and 2024, respectively.
Archrock Inc. (AROC - Free Report) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -10.01%. A quarter ago, it was expected that this natural gas compression services business would post earnings of $0.4 per share when it actually produced earnings of $0.69, delivering a surprise of +72.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Archrock Inc., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $373.77 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.78%. This compares to year-ago revenues of $347.16 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Archrock Inc. shares have added about 49.4% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Archrock Inc.?While Archrock Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Archrock Inc. was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $0.47 on $386.59 million in revenues for the coming quarter and $1.96 on $1.55 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, Oil and Gas - Field Services is currently in the top 38% 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, ProFrac Holding Corp. (ACDC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -254.6%. The consensus EPS estimate for the quarter has been revised 2.8% higher over the last 30 days to the current level.
ProFrac Holding Corp.'s revenues are expected to be $390.43 million, down 35% from the year-ago quarter.
Key Takeaways Archrock missed Q1 earnings estimates despite 7.7% y/y revenue growth from contract operations.AROC contract operations revenues increased 10% y/y, supported by higher horsepower and pricing.Archrock reaffirmed its 2026 EBITDA guidance in the range of $865-$915M amid strong compression demand. Archrock Inc. (AROC - Free Report) reported first-quarter 2026 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 10.6%. The bottom line remained flat year over year.
The Houston, TX-based oil and gas equipment and services company generated total quarterly revenues of $373.8 million, up 7.7% year over year from $347.2 million reported in the year-ago quarter, reflecting higher contract operations activity and increased pricing. The figure missed the Zacks Consensus Estimate of $376.7 million by 0.8%.
The lower-than-expected quarterly results were driven by higher selling, general and administrative (SG&A) costs and a non-cash impairment charge.
AROC’s Contract Operations Continued to Drive GrowthContract operations remained the primary growth engine. Segment revenues increased 10% year over year to $330.9 million from $300.4 million in the year-ago quarter, supported by higher operating horsepower and pricing. Average operating horsepower at the quarter-end was 4.5 million compared with 4.3 million a year ago, while utilization is at 95% compared with the year-ago period’s figure of 96%, underscoring the durability of demand for its compression services.
Profitability in the segment also improved on a year-ago basis. Contract operations adjusted gross margin increased 13% to $237.6 million from $210.6 million recorded in the prior-year period. Contract operations adjusted gross margin percentage expanded to 72% from 70% in the year-ago period, reflecting operating execution and pricing carryover.
Archrock’s Aftermarket Services Softened on SeasonalityAftermarket services were weaker year over year. Segment revenues were $42.9 million, down from $46.8 million recorded in the first quarter of 2025, reflecting lower service activity and a seasonal slowdown.
Margins compressed modestly as well. Aftermarket services adjusted gross margin was $9.8 million compared with $11.5 million a year ago. The aftermarket services adjusted gross margin percentage declined to 23% from 25% in the year-ago quarter.
AROC’s Cost Structure Shifts Higher in the QuarterThe earnings miss reflected pressure from operating costs that came in above the level implied by consensus expectations. Selling, general and administrative expenses increased to $45.2 million from $37.2 million a year ago, a notable increase relative to revenue growth. The increase was driven by higher long-term incentive compensation expense tied to the stock price and $3.7 million acceleration of expense recognition under an executive retention agreement that is not expected to recur during the remaining quarters of 2026.
AROC also recorded a long-lived and other asset impairment charge of $5.3 million during the quarter, up from $1 million recorded in the year-ago period.
Archrock Benefits From Asset Sales & Strong Cash MetricsArchrock’s quarter included a meaningful contribution from asset sales. Adjusted EBITDA totaled $221.0 million, up from $197.8 million in the first quarter of 2025, and included $10.1 million in net gains primarily related to the sale of compression and other assets, higher than the year-ago figure of $7.3 million.
Cash generation remained a key support point. Net cash provided by operating activities was $185.9 million, and adjusted free cash flow was $91.9 million. The company returned $44.3 million to shareholders through dividends and share repurchases during the quarter, including a 22-cent per share dividend and approximately $4.4 million of buybacks.
AROC’s Capital ExpenditureNet capital expenditures of AROC totaled $92.2 million in the first quarter of 2026.
Archrock Maintains Leverage DisciplineAROC continued to reshape its balance sheet following recent financing actions. Long-term debt was $2.4 billion at March 31, 2026, and the company reported a leverage ratio of 2.6X, down from 3.2X a year earlier. The total available liquidity was $1.4 billion as of the same date.
AROC Reaffirms 2026 OutlookArchrock reaffirmed full-year 2026 adjusted EBITDA guidance of $865 million to $915 million. Management emphasized that underlying business performance exceeded its basis for guidance, but higher SG&A was a partial offset in the quarter. On the investment side, the company expects growth capital expenditures between $250 million and $275 million to support newbuild horsepower and repackaging activity.
AROC’s Zacks RankAROC currently carries a Zacks Rank #4 (Sell).
Recent Energy Sector ReleasesSome better-ranked stocks from the energy sector that have recently reported their earnings are Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Eni S.p.A. (E - Free Report) . CVX and E each currently sport a Zacks Rank #1 (Strong Buy), while BP has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.
Archrock Inc. (AROC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this natural gas compression services business have returned +1.4% over the past month versus the Zacks S&P 500 composite's +8.6% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has gained 4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Archrock Inc. is expected to post earnings of $0.47 per share, indicating a change of +20.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.95 points to a change of +2.6% from the prior year. Over the last 30 days, this estimate has changed -2.8%.
For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +13.3% from what Archrock Inc. is expected to report a year ago. Over the past month, the estimate has changed -1.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Archrock Inc. is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Archrock Inc., the consensus sales estimate of $390.4 million for the current quarter points to a year-over-year change of +1.9%. The $1.55 billion and $1.64 billion estimates for the current and next fiscal years indicate changes of +4.2% and +5.6%, respectively.
Last Reported Results and Surprise HistoryArchrock Inc. reported revenues of $373.77 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $0.42 for the same period compares with $0.42 a year ago.
Compared to the Zacks Consensus Estimate of $376.69 million, the reported revenues represent a surprise of -0.78%. The EPS surprise was -10.64%.
Over the last four quarters, Archrock Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Archrock Inc. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Archrock Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Investors in Archrock, Inc. (AROC - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $20 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Archrock shares, but what is the fundamental picture for the company? Currently, Archrock is a Zacks Rank #3 (Hold) in the Oil and Gas - Field Services industry that ranks in the Bottom 20% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimates for the current quarter, while one has dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 52 cents per share to 51 cents in that period.
Given the way analysts feel about Archrock right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
On May 18, 2026, Archrock Inc AROC shares rose 3.2% to $38.62. This price movement is notable within the context of its 52-week range, which has seen a low of $21.17 and a high of $40.12. Over the past year, AROC has experienced a remarkable performance with a 56.4% increase, contributing to a year-to-date rise of 50.3%.
GF Value™ verdict: AROC is currently priced at $38.62, which is 42.0% above its GF Value™ estimate of $27.19.GF Score™ of 84/100 indicates a strong overall performance in key financial metrics.Notable signal: Insider activity shows that insiders sold $9.6 million worth of shares in the last three months, with no buying activity reported. Is AROC Overvalued or Undervalued? According to the GF Value™, Archrock Inc AROC is currently overvalued, trading at $38.62 while the estimated fair value sits at $27.19. This represents a significant 42.0% margin of overvaluation, suggesting investors may be paying a premium for the stock compared to its intrinsic worth. The GF Valuation label indicates that AROC is significantly overvalued, raising concerns about the potential for a price correction. Investors should be cautious as a stock trading above its fair value generally presents a higher risk profile.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This methodology underscores the importance of assessing whether the stock price reflects its underlying value accurately. Given the current valuation, there may be limited upside potential for new investors entering the stock at this price point.
How Does AROC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 21.0x 26.2x Forward P/E 20.6x N/A Currently, Archrock Inc's P/E ratio (TTM) stands at 21.0x, which is 20% below its 5-year median P/E of 26.2x. The forward P/E of 20.6x indicates a slight optimistic outlook, but the current P/E suggests that the stock is trading below its historical valuation levels. This analysis generally concurs with the GF Value™ verdict, reinforcing the notion that AROC may be overvalued relative to its historical performance.
What Does AROC's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 4/10 Profitability 8/10 Growth 8/10 Valuation 5/10 Momentum 9/10 The GF Score™ for Archrock Inc AROC is 84/100, indicating a strong overall performance but with areas of concern. The strongest aspects of AROC's score are its Profitability and Growth metrics, both rated at 8/10, suggesting robust operational efficiency and potential for future expansion. However, the Financial Strength score of 4/10 raises red flags regarding the company's balance sheet health, which could impact its ability to weather downturns.
What Are Insiders Doing with AROC Stock? In the last three months, insider activity has shown a notable trend, with insiders selling approximately $9.6 million worth of shares and no buying activity reported. This selling pattern may suggest a lack of confidence among insiders in the stock's potential for further appreciation. Typically, insider selling can indicate that those closest to the company believe the stock is currently overvalued or that they are taking profits based on favorable price movements.
What This Means for Investors Based on the analysis of GF Value™, Archrock Inc AROC is currently overvalued. The significant disparity between its market price and intrinsic value, along with concerning insider activity, suggests that potential investors may want to tread carefully before entering the stock at its current valuation.
For the complete analysis, visit the Archrock Inc AROC 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 AROC's GF Score™?
AROC's GF Score™ is 84/100, indicating a strong overall performance based on key financial metrics.
Is AROC overvalued or undervalued?
AROC is currently overvalued, trading at a significant premium compared to its GF Value™ estimate of $27.19.
What is AROC's P/E ratio?
The P/E ratio for AROC is 21.0x, which is below its 5-year median of 26.2x, indicating 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].
Archrock Inc. (AROC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this natural gas compression services business have returned -4.3% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has lost 6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Archrock Inc. is expected to post earnings of $0.47 per share, indicating a change of +20.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The consensus earnings estimate of $1.95 for the current fiscal year indicates a year-over-year change of +2.6%. This estimate has changed -0.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +13.3% from what Archrock Inc. is expected to report a year ago. Over the past month, the estimate has changed +1.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Archrock Inc..
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Archrock Inc., the consensus sales estimate for the current quarter of $390.4 million indicates a year-over-year change of +1.9%. For the current and next fiscal years, $1.55 billion and $1.64 billion estimates indicate +4.2% and +5.6% changes, respectively.
Last Reported Results and Surprise HistoryArchrock Inc. reported revenues of $373.77 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $0.42 for the same period compares with $0.42 a year ago.
Compared to the Zacks Consensus Estimate of $376.69 million, the reported revenues represent a surprise of -0.78%. The EPS surprise was -10.64%.
Over the last four quarters, Archrock Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Archrock Inc. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Archrock Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
On May 28, 2026, Archrock Inc AROC shares fell 4.9% to a current price of $34.60. The stock has experienced significant volatility, trading within a 52-week range of $21.17 to $40.12. The recent decline is part of a broader trend, with shares down 6.2% over the past week and 8.4% over the last month.
GF Value™ verdict: Current price of $34.60 is 27.1% above the GF Value™ of $27.22.GF Score™ of 84/100 indicates a strong overall ranking.Notable signal: Insiders have sold $12.2 million worth of shares in the last three months, with no purchases reported. Is AROC Overvalued or Undervalued? The current price of Archrock Inc AROC at $34.60 is significantly above the GF Value™, which is estimated at $27.22. This indicates that the stock is 27.1% overvalued, suggesting that there may be limited upside potential in the short term. The GF Valuation label categorizes AROC as "Modestly Overvalued," which reflects the risk of a potential price correction if market sentiments shift or if the company fails to deliver strong performance in the near future.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With a margin of safety not present, investors may need to be cautious if considering an entry point at the current price level.
How Does AROC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.8x 26.2x Forward P/E 18.5x N/A Currently, AROC's P/E (TTM) of 18.8x is 28% below its 5-year median P/E of 26.2x. This suggests that the stock is trading below its historical valuation levels, which may appear contradictory to the GF Value™ assessment of modest overvaluation. The P/E analysis aligns with the notion that AROC could be undervalued based on its earnings potential, yet the stark difference between the current price and GF Value™ raises concerns regarding future performance and market expectations.
What Does AROC's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 4/10 Profitability 8/10 Growth 8/10 Valuation 5/10 Momentum 9/10 Archrock Inc's GF Score™ of 84/100 indicates a strong position in terms of profitability, growth, and momentum, with ratings of 8/10 and 9/10, respectively. However, the financial strength score of 4/10 highlights potential weaknesses in the company's balance sheet or cash flow management. The valuation score of 5/10 suggests that while the stock may not be excessively overvalued, it is also not a standout opportunity in terms of price relative to its intrinsic value. This mixed score profile presents both strengths and areas of caution for investors.
What Are Insiders Doing with AROC Stock? In the past three months, insiders at Archrock Inc have sold a total of $12.2 million worth of shares, with no reported buying activity. The trend of insider selling may raise concerns about the company's outlook from those who are closest to its operations. This pattern could suggest that insiders may not be confident about the stock's near-term performance or that they are taking profits following a substantial increase in the stock price over the past year.
What This Means for Investors Based on the current valuation metrics and GF Value™ assessment, Archrock Inc AROC appears to be overvalued at this time. The significant gap between the current price and GF Value™ indicates that investors may face risks if they enter positions at this elevated price level.
For the complete analysis, visit the Archrock Inc AROC 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 AROC's GF Score™?
AROC's GF Score™ is 84/100, indicating a strong overall ranking based on various key financial metrics.
Is AROC overvalued or undervalued?
AROC is considered overvalued based on its GF Value™ of $27.22 compared to its current price of $34.60.
What is AROC's P/E ratio?
AROC's P/E (TTM) is 18.8x, which is 28% below its 5-year median P/E of 26.2x, suggesting it is trading below historical valuation 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].
It has been about a month since the last earnings report for Archrock Inc. (AROC - Free Report) . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Archrock Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Archrock Q1 Earnings & Revenues Miss EstimatesArchrock reported first-quarter 2026 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 10.6%. The bottom line remained flat year over year.
The Houston, TX-based oil and gas equipment and services company generated total quarterly revenues of $373.8 million, up 7.7% year over year from $347.2 million reported in the year-ago quarter, reflecting higher contract operations activity and increased pricing. The figure missed the Zacks Consensus Estimate of $376.7 million by 0.8%.
The lower-than-expected quarterly results were driven by higher selling, general and administrative (SG&A) costs and a non-cash impairment charge.
AROC’s Contract Operations Continued to Drive GrowthContract operations remained the primary growth engine. Segment revenues increased 10% year over year to $330.9 million from $300.4 in the year-ago quarter, supported by higher operating horsepower and pricing. Average operating horsepower at the quarter-end was 4.5 million compared with 4.3 million a year ago, while utilization is at 95% compared with the year-ago period’s figure of 96%, underscoring the durability of demand for its compression services.
Profitability in the segment also improved on a year-ago basis. Contract operations adjusted gross margin increased 13% to $237.6 million from $210.6 million recorded in the prior-year period. Contract operations adjusted gross margin percentage expanded to 72% from 70% in the year-ago period, reflecting operating execution and pricing carryover.
Archrock’s Aftermarket Services Softened on SeasonalityAftermarket services were weaker year over year. Segment revenues were $42.9 million, down from $46.8 million recorded in the first quarter of 2025, reflecting lower service activity and a seasonal slowdown.
Margins compressed modestly as well. Aftermarket services adjusted gross margin was $9.8 million compared with $11.5 million a year ago. The aftermarket services adjusted gross margin percentage declined to 23% from 25% in the year-ago quarter.
AROC’s Cost Structure Shifts Higher in the QuarterThe earnings miss reflected pressure from operating costs that came in above the level implied by consensus expectations. Selling, general and administrative expenses increased to $45.2 million from $37.2 million a year ago, a notable increase relative to revenue growth. The increase was driven by higher long-term incentive compensation expense tied to the stock price and $3.7 million acceleration of expense recognition under an executive retention agreement that is not expected to recur during the remaining quarters of 2026.
AROC also recorded a long-lived and other asset impairment charge of $5.3 million during the quarter, up from $1 million recorded in the year-ago period.
Archrock Benefits From Asset Sales & Strong Cash MetricsArchrock’s quarter included a meaningful contribution from asset sales. Adjusted EBITDA totaled $221.0 million, up from $197.8 million in the first quarter of 2025, and included $10.1 million in net gains primarily related to the sale of compression and other assets, higher than the year-ago figure of $7.3 million.
Cash generation remained a key support point. Net cash provided by operating activities was $185.9 million, and adjusted free cash flow was $91.9 million. The company returned $44.3 million to shareholders through dividends and share repurchases during the quarter, including a 22-cent per share dividend and approximately $4.4 million of buybacks.
AROC’s Capital ExpenditureNet capital expenditures of AROC totaled $92.2 million in the first quarter of 2026.
Archrock Maintains Leverage DisciplineAROC continued to reshape its balance sheet following recent financing actions. Long-term debt was $2.4 billion at March 31, 2026, and the company reported a leverage ratio of 2.6X, down from 3.2X a year earlier. The total available liquidity was $1.4 billion as of the same date.
AROC Reaffirms 2026 OutlookArchrock reaffirmed full-year 2026 adjusted EBITDA guidance of $865 million to $915 million. Management emphasized that underlying business performance exceeded its basis for guidance, but higher SG&A was a partial offset in the quarter. On the investment side, the company expects growth capital expenditures between $250 million and $275 million to support newbuild horsepower and repackaging activity.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, Archrock Inc. has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of 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 this revision indicates a downward shift. Interestingly, Archrock Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerArchrock Inc. is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Oceaneering International (OII - Free Report) , a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Oceaneering International reported revenues of $692.43 million in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $0.30 for the same period compares with $0.43 a year ago.
Oceaneering International is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of -2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Oceaneering International. Also, the stock has a VGM Score of B.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Archrock Inc. (AROC - Free Report) .
Archrock Inc. currently has an average brokerage recommendation (ABR) of 1.40, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.40 approximates between Strong Buy and Buy.
Of the 10 recommendations that derive the current ABR, seven are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70% and 20% of all recommendations.
Brokerage Recommendation Trends for AROC
Check price target & stock forecast for Archrock Inc. here>>>
The ABR suggests buying Archrock Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is AROC Worth Investing In?Looking at the earnings estimate revisions for Archrock Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.95.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Archrock Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Archrock Inc.
In the latest close session, Archrock Inc. (AROC - Free Report) was up +1.48% at $35.69. The stock's performance was ahead of the S&P 500's daily loss of 1.62%. Elsewhere, the Dow lost 1.87%, while the tech-heavy Nasdaq lost 1.98%.
The stock of natural gas compression services business has fallen by 5.53% in the past month, lagging the Oils-Energy sector's loss of 0.59% and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Archrock Inc. in its upcoming release. The company is forecasted to report an EPS of $0.47, showcasing a 20.51% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $390.4 million, indicating a 1.89% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.95 per share and revenue of $1.55 billion, indicating changes of +2.63% and +4.19%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Archrock Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Archrock Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Archrock Inc. is presently being traded at a Forward P/E ratio of 18.04. This represents a discount compared to its industry average Forward P/E of 22.97.
It is also worth noting that AROC currently has a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 2.26.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Archrock Inc. (AROC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this natural gas compression services business have returned -3%, compared to the Zacks S&P 500 composite's -1.6% change. During this period, the Zacks Oil and Gas - Field Services industry, which Archrock Inc. falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Archrock Inc. is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of +20.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $1.95 points to a change of +2.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +13.3% from what Archrock Inc. is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Archrock Inc. is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Archrock Inc., the consensus sales estimate for the current quarter of $390.4 million indicates a year-over-year change of +1.9%. For the current and next fiscal years, $1.55 billion and $1.64 billion estimates indicate +4.2% and +5.6% changes, respectively.
Last Reported Results and Surprise HistoryArchrock Inc. reported revenues of $373.77 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $0.42 for the same period compares with $0.42 a year ago.
Compared to the Zacks Consensus Estimate of $376.69 million, the reported revenues represent a surprise of -0.78%. The EPS surprise was -10.64%.
Over the last four quarters, Archrock Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Archrock Inc. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Archrock Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Archrock Inc. (AROC - Free Report) ended the recent trading session at $36.07, demonstrating a +1.06% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow experienced a rise of 1.86%, and the technology-dominated Nasdaq saw an increase of 2.54%.
Shares of the natural gas compression services business witnessed a loss of 3.02% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 0.13%, and the S&P 500's loss of 1.63%.
Analysts and investors alike will be keeping a close eye on the performance of Archrock Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.47, signifying a 20.51% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $390.4 million, indicating a 1.89% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.95 per share and a revenue of $1.55 billion, representing changes of +2.63% and +4.19%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Archrock Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Archrock Inc. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Archrock Inc. has a Forward P/E ratio of 18.3 right now. This represents a discount compared to its industry average Forward P/E of 23.5.
One should further note that AROC currently holds a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Field Services industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Capital International Investors raised its position in shares of Webster Financial Corporation (NYSE: WBS) by 2.2% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,160,605 shares of the financial services provider's stock after purchasing an
Capital Group Private Client Services Inc. lowered its stake in shares of Webster Financial Corporation (NYSE: WBS) by 84.9% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 9,272 shares of the financial services provider's stock after selling 52,031 shares during the
Algert Global LLC lifted its stake in Webster Financial Corporation (NYSE: WBS) by 13.5% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 359,540 shares of the financial services provider's stock after purchasing an additional 42,635 shares during the period. Algert Global
140 Summer Partners LP purchased a new position in shares of Webster Financial Corporation (NYSE: WBS) during the undefined quarter, according to its most recent 13F filing with the SEC. The firm purchased 1,269,592 shares of the financial services provider's stock, valued at approximately $75,465,000. Webster Financial comprises approximately 6.6% of 140 Summer
SG Americas Securities LLC purchased a new stake in shares of Webster Financial Corporation (NYSE:WBS – Free Report) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 41,495 shares of the financial services provider’s stock, valued at approximately $2,612,000.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Royal Bank of Canada lifted its holdings in Webster Financial by 2.2% in the first quarter. Royal Bank of Canada now owns 94,385 shares of the financial services provider’s stock valued at $4,866,000 after acquiring an additional 2,049 shares during the period. Cubist Systematic Strategies LLC bought a new stake in shares of Webster Financial during the 1st quarter valued at about $114,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Webster Financial by 15.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 40,127 shares of the financial services provider’s stock valued at $2,069,000 after purchasing an additional 5,299 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Webster Financial by 37.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 652,921 shares of the financial services provider’s stock valued at $33,658,000 after purchasing an additional 176,258 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Webster Financial by 4.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 476,095 shares of the financial services provider’s stock valued at $24,543,000 after purchasing an additional 20,090 shares during the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In A number of equities analysts recently issued reports on WBS shares. Keefe, Bruyette & Woods raised their price objective on shares of Webster Financial from $77.00 to $79.00 and gave the stock an “outperform” rating in a report on Monday, March 2nd. TD Cowen cut shares of Webster Financial from a “strong-buy” rating to a “hold” rating in a report on Wednesday, February 4th. Morgan Stanley dropped their price target on shares of Webster Financial from $77.00 to $75.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 5th. Raymond James Financial downgraded shares of Webster Financial from a “moderate buy” rating to a “hold” rating in a research report on Wednesday, February 11th. Finally, JPMorgan Chase & Co. upped their price objective on Webster Financial from $70.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, December 16th. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $74.50.
Check Out Our Latest Analysis on Webster Financial
Webster Financial Price Performance Shares of NYSE:WBS opened at $69.79 on Friday. The company has a market capitalization of $11.25 billion, a P/E ratio of 11.81 and a beta of 1.03. Webster Financial Corporation has a 1-year low of $39.43 and a 1-year high of $74.00. The firm’s 50 day simple moving average is $69.79 and its two-hundred day simple moving average is $63.70. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.86 and a quick ratio of 0.86.
Webster Financial (NYSE:WBS – Get Free Report) last announced its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, beating the consensus estimate of $1.52 by $0.07. Webster Financial had a net margin of 22.67% and a return on equity of 11.10%. The firm had revenue of $760.48 million for the quarter, compared to the consensus estimate of $731.95 million. During the same period last year, the firm earned $1.43 EPS. Research analysts expect that Webster Financial Corporation will post 5.88 EPS for the current fiscal year.
Webster Financial Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Monday, February 9th were issued a dividend of $0.40 per share. The ex-dividend date of this dividend was Monday, February 9th. This represents a $1.60 dividend on an annualized basis and a yield of 2.3%. Webster Financial’s dividend payout ratio (DPR) is currently 27.07%.
Webster Financial Company Profile (Free Report)
Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.
In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.
Featured Articles Five stocks we like better than Webster Financial Want to see what other hedge funds are holding WBS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Webster Financial Corporation (NYSE:WBS – Free Report).
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STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (NYSE: WBS, “the company”), the holding company for Webster Bank, N.A., today announced it will release its first quarter 2026 earnings after the close of U.S. markets on April 28, 2026.
The company will not host an earnings call or provide an accompanying presentation due to its pending transaction with Banco Santander, S.A.
About Webster Financial Corporation:
Webster Financial Corporation (“Webster”) (NYSE:WBS) is the holding company for Webster Bank, N.A. (“Webster Bank”). Founded in 1935 and headquartered in Stamford, CT, Webster is a values-driven organization with more than $80 billion in total assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
The market expects Webster Financial (WBS - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis holding company for Webster Bank is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +18.5%.
Revenues are expected to be $741.24 million, up 5.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Webster Financial?For Webster Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.67%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Webster Financial will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Webster Financial would post earnings of $1.52 per share when it actually produced earnings of $1.59, delivering a surprise of +4.61%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Webster Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsLINKBANCORP, Inc. , another stock in the Zacks Banks - Northeast industry, is expected to report earnings per share of $0.21 for the quarter ended March 2026. This estimate points to a year-over-year change of +5%. Revenues for the quarter are expected to be $30.09 million, down 23% from the year-ago quarter.
The consensus EPS estimate for LINKBANCORP, Inc. has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.44%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that LINKBANCORP, Inc. will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $239.3 million, or $1.50 per diluted share, for the quarter ended March 31, 2026, compared to $220.4 million, or $1.30 per diluted share, for the quarter ended March 31, 2025.
First quarter 2026 results include Transaction expenses, strategic restructuring costs, and a benefit related to the FDIC special assessment. Excluding these items, adjusted earnings per diluted share would have been $1.571 for the quarter ended March 31, 2026.
On February 3, 2026, Webster entered into a transaction agreement with Banco Santander, S.A. (“Banco Santander”), under which Banco Santander will acquire Webster in a cash and stock transaction (the “Transaction”).
“Webster’s financial results reflect our colleagues’ commitment to execution amidst a dynamic economic environment,” said John R. Ciulla, Chairman and Chief Executive Officer. “Our proposed transaction with Banco Santander will enhance our ability to support our clients and the communities we serve, while unlocking new opportunities for growth. We are making significant progress planning for the integration of two highly complementary banking organizations.”
Highlights for the first quarter of 2026:
Revenue2 of $735.9 million Period end loans and leases balance of $57.2 billion, up $0.7 billion, or 1.2 percent from prior quarter Period end deposits balance of $69.0 billion, up $0.3 billion, or 0.4 percent, from prior quarter. Provision for credit losses of $54.0 million Return on average assets of 1.16 percent Return on average tangible common equity of 16.18 percent1 Net interest margin of 3.36 percent, up 1 basis point from prior quarter Common equity tier 1 ratio of 11.42 percent3 Efficiency ratio of 46.83 percent1 Tangible common equity ratio of 7.39 percent1 “Webster’s distinctive franchise continues to produce strong profitability, capital generation, and growth,” said Neal Holland, Senior Executive Vice President and Chief Financial Officer. “Loans, deposits, and tangible book value per share exhibited solid growth both linked-quarter and year-over-year.”
Under the terms of the transaction agreement, Webster’s common stockholders will receive $48.75 in cash and 2.0548 Banco Santander ordinary shares, which will be delivered in the form of American Depository Receipts, for each Webster share. The completion of the Transaction is subject to customary conditions, including the receipt of Webster stockholder approval and required regulatory approvals, and is anticipated to close in the second half of 2026. In light of the proposed Transaction with Banco Santander, Webster will no longer provide a forward-looking financial outlook.
Consolidated financial performance:
Quarterly net interest income compared to the first quarter of 2025:
Net interest income was $634.4 million, compared to $612.2 million. Net interest margin was 3.36 percent, compared to 3.48 percent. The yield on interest-earning assets decreased by 26 basis points, and the cost of deposits and interest-bearing liabilities decreased by 18 basis points. Average interest-earning assets totaled $78.3 billion, an increase of $5.5 billion, or 7.5 percent. Average loans and leases totaled $57.1 billion, an increase of $4.5 billion, or 8.6 percent. Average deposits totaled $69.5 billion, an increase of $4.5 billion, or 7.0 percent. Quarterly provision for credit losses:
The provision for credit losses was $54.0 million, compared to $42.0 million in the prior quarter, and $77.5 million a year ago. Net charge-offs were $41.2 million, compared to $49.5 million in the prior quarter, and $55.0 million a year ago. The ratio of net charge-offs to average loans and leases was 0.29 percent, compared to 0.35 percent in the prior quarter, and 0.42 percent a year ago. The allowance for credit losses on loans and leases represented 1.28 percent of total loans and leases, compared to 1.27 percent at December 31, 2025, and 1.34 percent at March 31, 2025. The allowance for credit losses on loans and leases represented 140 percent of non-performing loans and leases, compared to 144 percent at December 31, 2025, and 126 percent at March 31, 2025. Quarterly non-interest income compared to the first quarter of 2025:
Total non-interest income was $101.5 million, compared to $92.6 million, an increase of $8.9 million. The increase is primarily driven by increased client hedging activities, the change in the credit valuation adjustment, increased revenues from Ametros, higher deposit service fees, and the acquisition of SecureSave, partially offset by lower loan prepayment and syndication fees. Quarterly non-interest expense compared to the first quarter of 2025:
Total non-interest expense was $379.1 million, compared to $343.6 million, an increase of $35.5 million. Total non-interest expense includes $9.1 million in Transaction expenses, $3.6 million in strategic restructuring costs, and a $0.7 million benefit related to the FDIC special assessment. Excluding those items, total non-interest expense increased $23.5 million. The increase is primarily driven by higher compensation and benefits costs. Quarterly income taxes compared to the first quarter of 2025:
Income tax expense was $56.5 million, compared to $56.7 million, and the effective tax rate was 18.7 percent, compared to 20.0 percent. Despite an increase in pre-tax income for the quarter ended March 31, 2026, income tax expense decreased $0.2 million, primarily due to the recognition of higher net discrete tax benefits related to stock-based compensation, as compared to a year ago. The decrease in the effective tax rate was also primarily due to the recognition of those higher net discrete tax benefits. Investment securities:
Total investment securities, net, were $18.4 billion, compared to $18.0 billion at December 31, 2025, and $17.7 billion at March 31, 2025. The carrying value includes $560.1 million of net unrealized losses on available-for-sale securities, compared to $457.5 million at December 31, 2025, and $580.4 million at March 31, 2025. The carrying value does not include $876.9 million of net unrealized losses on the held-to-maturity portfolio, compared to $801.1 million at December 31, 2025, and $893.3 million at March 31, 2025. Loans and leases:
Total loans and leases were $57.2 billion, compared to $56.6 billion at December 31, 2025, and $53.1 billion at March 31, 2025. Compared to December 31, 2025, commercial loans and leases increased by $393.0 million, commercial real estate loans increased by $234.2 million, residential mortgages increased by $0.4 million, and consumer loans increased by $23.7 million. Compared to March 31, 2025, commercial loans and leases increased by $2.4 billion, commercial real estate loans increased by $1.2 billion, residential mortgages increased by $477.0 million, and consumer loans increased by $121.8 million. Loan originations for the portfolio were $3.7 billion, compared to $4.5 billion in the prior quarter, and $2.7 billion a year ago. Asset quality:
Total non-performing loans and leases were $522.5 million, compared to $500.7 million at December 31, 2025, and $564.4 million at March 31, 2025. The ratio of total non-performing loans and leases to total loans and leases was 0.91 percent, compared to 0.88 percent at December 31, 2025, and 1.06 percent at March 31, 2025. Past due loans and leases were $148.8 million, compared to $66.5 million at December 31, 2025, and $87.2 million at March 31, 2025. The increase from the prior quarter is primarily driven by commercial real estate, commercial non-mortgage, and residential mortgages. The increase from a year ago is primarily driven by commercial real estate and residential mortgages. Deposits and borrowings:
Total deposits were $69.0 billion, compared to $68.8 billion at December 31, 2025, and $65.6 billion at March 31, 2025. The ratio of core deposits to total deposits1 was 90.4 percent, compared to 87.5 percent at December 31, 2025, and 88.5 percent at March 31, 2025. The loan to deposit ratio was 82.9 percent, compared to 82.3 percent at December 31, 2025, and 80.9 percent at March 31, 2025. Total borrowings were $5.6 billion, compared to $4.3 billion at December 31, 2025, and $3.9 billion at March 31, 2025. Capital:
The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 10.35 percent and 16.18 percent, respectively, compared to 10.91 percent and 17.10 percent, respectively, in the prior quarter, and 9.94 percent and 15.93 percent, respectively, a year ago. The tangible equity1 and tangible common equity1 ratios were 7.74 percent and 7.39 percent, respectively, compared to 7.77 percent and 7.42 percent, respectively, at December 31, 2025, and 7.80 percent and 7.43 percent, respectively, at March 31, 2025. The common equity tier 1 ratio2 was 11.42 percent, compared to 11.20 percent at December 31, 2025, and 11.25 percent at March 31, 2025. Book value per common share and tangible book value per common share1 were $57.33 and $37.59, respectively, compared to $57.12 and $37.20, respectively, at December 31, 2025, and $52.91 and $33.97, respectively, at March 31, 2025. Reportable segments:
Commercial Banking
Webster’s Commercial Banking segment delivers financial solutions nationally to a wide range of companies, investors, government entities, and other public and private institutions. Commercial Banking helps its clients achieve their business and financial goals with expertise in Commercial Real Estate, Middle Market, Sponsor and Specialty Finance, Verticals and Regional Banking, Asset Based Lending and Commercial Services, and Treasury Management. Commercial Banking’s Private Banking team also pairs holistic wealth solutions, including tailored lending, with commercial banking services. At March 31, 2026, Commercial Banking had $44.4 billion in loans and leases and $17.8 billion in deposits, as well as a combined $2.8 billion in assets under administration (“AUA”) and assets under management (“AUM”).
Commercial Banking Operating Results:
Percent
Three months ended March 31,
Favorable/
(In thousands)
2026
2025
(Unfavorable)
Net interest income
$
326,977
$
319,123
2.5
%
Non-interest income
32,169
28,958
11.1
Operating revenue
359,146
348,081
3.2
Non-interest expense
118,321
106,582
(11.0
)
Pre-tax, pre-provision net revenue
$
240,825
$
241,499
(0.3
)%
Percent
March 31,
Increase/
(In thousands)
2026
2025
(Decrease)
Loans and leases
$
44,387,462
$
40,790,670
8.8
%
Deposits
17,839,627
16,572,502
7.6
AUA / AUM (off-balance sheet)
2,775,639
2,957,462
(6.1
)
Pre-tax, pre-provision net revenue decreased $0.7 million, to $240.8 million, in the quarter as compared to a year ago. Net interest income increased $7.9 million, to $327.0 million, primarily driven by higher average loan and deposit balances, partially offset by a lower net spread on loans and leases. Non-interest income increased $3.2 million, to $32.2 million, primarily driven by increased client hedging activity and direct investment gains, partially offset by lower loan syndication and prepayment fees. Non-interest expense increased $11.7 million, to $118.3 million, primarily driven by higher compensation and benefits costs, increased investments in technology and operational process improvements, and higher loan workout expenses.
Healthcare Financial Services
Webster’s Healthcare Financial Services segment includes HSA Bank and Ametros. HSA Bank is one the country’s largest providers of employee benefits solutions, including being one of the leading bank administrators of health savings accounts, emergency savings accounts, and flexible spending account administration services in 50 states. Ametros, the nation’s largest professional administrator of medical insurance claim settlements, helps individuals manage their ongoing medical care through their CareGuard service and proprietary technology platform. At March 31, 2026, Healthcare Financial Services had $17.2 billion in total footings, comprising $10.7 billion in deposits and $6.5 billion in AUA through linked investment accounts.
Healthcare Financial Services Operating Results:
Percent
Three months ended March 31,
Favorable/
(In thousands)
2026
2025
(Unfavorable)
Net interest income
$
100,033
$
96,361
3.8
%
Non-interest income
34,222
29,390
16.4
Operating revenue
134,255
125,751
6.8
Non-interest expense
61,752
55,720
(10.8
)
Pre-tax, pre-provision net revenue
$
72,503
$
70,031
3.5
%
March 31,
Percent
(In thousands)
2026
2025
Increase
Number of accounts
3,616
3,482
3.8
%
Deposits
$
10,733,013
$
10,245,003
4.8
Linked investment accounts (off-balance sheet)
6,460,633
5,108,311
26.5
Total footings
$
17,193,646
$
15,353,314
12.0
Pre-tax, pre-provision net revenue increased $2.5 million, to $72.5 million, in the quarter as compared to a year ago. Net interest income increased $3.7 million, to $100.0 million, primarily driven by higher deposit balances, partially offset by lower deposit spreads. Non-interest income increased $4.8 million, to $34.2 million, primarily driven by increased revenues from Ametros, higher interchange fees, and the acquisition of SecureSave. Non-interest expense increased $6.0 million, to $61.8 million, also primarily driven by the acquisition of SecureSave, as well as higher compensation and benefits costs, marketing costs, and other expenses.
Consumer Banking
Webster’s Consumer Banking segment delivers customized financial solutions to individuals, families, and small to mid-sized businesses through its experienced relationship managers and wealth advisors across 195 banking centers located throughout the Northeast. Consumer Banking offers a full suite of deposit, lending, treasury management, and wealth management solutions. Consumer Banking also provides a fully digital banking experience through its mobile banking app and BrioDirect. At March 31, 2026, Consumer Banking had $12.9 billion in loans and $27.4 billion in deposits, as well as $7.4 billion in AUA.
Consumer Banking Operating Results:
Percent
Three months ended March 31,
Favorable/
(In thousands)
2026
2025
(Unfavorable)
Net interest income
$
208,323
$
202,064
3.1
%
Non-interest income
23,189
26,204
(11.5
)
Operating revenue
231,512
228,268
1.4
Non-interest expense
126,267
122,656
(2.9
)
Pre-tax, pre-provision net revenue
$
105,245
$
105,612
(0.3
)%
Percent
March 31,
Increase/
(In thousands)
2026
2025
(Decrease)
Loans
$
12,854,090
$
12,266,777
4.8
%
Deposits
27,444,754
27,797,351
(1.3
)
AUA (off-balance sheet)
7,360,092
7,433,931
(1.0
)
Pre-tax, pre-provision net revenue decreased $0.4 million, to $105.2 million, in the quarter as compared to a year ago. Net interest income increased $6.2 million, to $208.3 million, primarily driven by higher average loan balances and a higher interest rate spread on loans, partially offset by lower average deposit balances and a lower interest rate spread on deposits. Non-interest income decreased $3.0 million, to $23.2 million, primarily driven by lower investment services income and non-recurring gains from investment portfolio sales a year ago. Non-interest expense increased $3.6 million, to $126.3 million, primarily driven by higher compensation and benefits costs and operational support costs, partially offset by decreased investments in technology and lower occupancy and equipment costs.
***
Webster Financial Corporation (“Webster”) (NYSE:WBS) is the holding company for Webster Bank, N.A. (“Webster Bank”). Headquartered in Stamford, CT, Webster is a values-driven organization with approximately $86 billion in total consolidated assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “achieve,” “anticipate,” “assume,” “believe,” “could,” “deliver,” “drive,” “enhance,” “estimate,” “expect,” “focus,” “future,” “goal,” “grow,” “guidance,” “intend,” “may,” “might,” “plan,” “position,” “potential,” “predict,” “project,” “opportunity,” “outlook,” “should,” “strategy,” “target,” “trajectory,” “trend,” “will,” “would,” and other similar words and expressions or the negative of such terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to: statements about Webster’s business strategy, goals, and objectives; outlook for future growth; and future common stock dividends, common stock repurchases, and other uses of capital. Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and in many cases, are beyond Webster’s control. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause Webster’s actual results to differ from those discussed in any forward-looking statements include, but are not limited to: risks related to the proposed Transaction with Banco Santander including, among others, (1) the risk that the cost savings, synergies, and other benefits from the acquisition may not be fully realized or may take longer than anticipated to be realized, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Webster and Banco Santander operate; (2) the failure of the closing conditions in the Transaction Agreement by and among Webster, Banco Santander, and a wholly owned subsidiary of Webster providing for the Transaction to be satisfied, or any unexpected delay in closing the Transaction or the occurrence of any event, change, or other circumstances that could delay the Transaction or could give rise to the termination of the Transaction Agreement; (3) the outcome of any legal or regulatory proceedings or governmental inquiries or investigations that may be currently pending or later instituted against us, Banco Santander, or the combined company; (4) the possibility that the Transaction does not close when expected, or at all, because required regulatory, stockholder, or other approvals and other conditions to closing are not received or satisfied on a timely basis, or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed Transaction); (5) disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; (6) the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive Transaction Agreement on the ability of the Company to operate its business outside the ordinary course during the pendency of the Transaction; (7) risks related to management and oversight of the expanded business and operations of the combined company following the closing of the proposed Transaction; (8) the risk that the integration of our operations with Banco Santander’s will be materially delayed, or will be more costly or difficult than expected, or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; (9) the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) reputational risk and potential adverse reactions of Webster’s or Banco Santander’s customers, employees, vendors, contractors, or other business partners, including those resulting from the announcement or completion of the Transaction; (11) the dilution caused by Banco Santander’s issuance of additional Banco Santander ordinary shares and corresponding American Depository Receipts in connection with the Transaction; (12) the possibility that any announcements relating to the Transaction could have adverse effects on the market price of Webster’s common stock, Banco Santander ordinary shares, and corresponding American Depository Receipts; (13) a material adverse change in Webster’s condition or Banco Santander’s condition; (14) the extent to which our or Banco Santander’s businesses perform consistent with management’s expectations; (15) Webster’s and Banco Santander’s ability to take advantage of growth opportunities and implement targeted initiatives in the timeframe and on the terms currently expected; (16) the possibility that the combined company is subject to additional regulatory requirements as a result of the proposed Transaction of expansion of the combined company’s business operations following the proposed Transaction; Webster’s ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other risk mitigation efforts taken by government agencies in response to the risk to safety and soundness in the banking industry; volatility in Webster’s stock price due to investor sentiment and perception of the banking industry; local, regional, national, and international economic conditions or macroeconomic instability (including any economic slowdown or recession, inflation, monetary fluctuation, tariff increases, interest rate changes, credit loss trends, unemployment, changes in housing or securities markets, or other factors) and the impact of the same on Webster or its customers; volatility, disruption, or uncertainty in national and international financial and commodity markets, including as a result of tensions, violent confrontations, and other geopolitical developments; the impact of unrealized losses in Webster’s financial instruments, including in Webster’s available-for-sale securities portfolio and held-to-maturity securities portfolio; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, cybersecurity, and healthcare administration, with which Webster must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster’s securities portfolio; possible changes in governmental monetary and fiscal policies, or any leadership changes of those determining such policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures; the effects of any restructurings, staff reductions, or other disruptions in the U.S. federal government or in agencies regulating or otherwise impacting Webster’s business; the direct or indirect impact of any new regulatory, policy, or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including trade deals, changes in tariffs and other protectionist trade policies, any reciprocal and/or retaliatory tariffs by foreign countries, and any uncertainties related thereto; the timely development and acceptance of any new products and services, and the perceived value of those products and services by customers; changes in deposit flows, consumer spending, borrowings, and savings habits; Webster’s ability to implement new technologies and maintain secure and reliable information and technology systems; the effects, including reputational damage, of any cybersecurity threats, attacks or disruptions, fraudulent activity, or other data breaches or security events, including those involving Webster’s third-party vendors and service providers; issues with the performance of Webster’s counterparties and third-party vendors; Webster’s ability to increase market share and control expenses; changes in the competitive environment among banks, financial holding companies, and other traditional and non-traditional financial service providers; Webster’s ability to maintain adequate sources of funding and liquidity; possible downgrades in Webster’s credit ratings; limitations on Webster’s ability to receive dividends from its subsidiaries; Webster’s ability to attract, develop, motivate, and retain skilled employees; changes in loan demand or real estate values; changes in the mix of loan geographies, sectors, or types and the level of non-performing assets, charge-offs, and delinquencies; changes in Webster’s estimates of current expected credit losses based upon periodic review under relevant regulatory and accounting requirements; the effect of changes in accounting policies and practices applicable to Webster, including impacts of recently adopted accounting guidance; legal and regulatory developments, including due to judicial decisions, the initiation or resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews, disruptions at regulatory agencies, government funding or other issues; Webster’s ability to navigate differing environmental, social, governmental, and sustainability concerns among federal and state governmental administrations and judicial decisions, Webster’s stakeholders, and other activists that may arise from Webster’s business activities; Webster’s ability to assess and monitor the effect of evolving uses of artificial intelligence on its business and operations; the occurrence of natural disasters, severe weather events, and public health crises, and any governmental or societal responses thereto; the impact of any of the foregoing on the business or credit quality of Webster’s customers; and the other factors that are described in Webster’s Annual Report on Form 10-K for the year ended December 31, 2025, as amended, and subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by Webster in this release speaks only as of the date on which it is made. Factors or events that could cause Webster’s actual results to differ may emerge from time to time, and it is not possible for Webster to predict all of them. Webster undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures, including the efficiency ratio, the return on average tangible common stockholders’ equity, the tangible equity ratio, the tangible common equity ratio, tangible book value per common share, core deposits, adjusted return on average assets, adjusted return on average tangible common stockholders’ equity, adjusted return on average common stockholders’ equity, adjusted pre-tax net income, adjusted net income applicable to common stockholders, and adjusted diluted earnings per share (“EPS”). A reconciliation of each non-GAAP financial measure to the most comparable GAAP financial measure is included in the accompanying selected financial highlights table.
Webster believes that certain non-GAAP financial measures provide investors with information useful in understanding its financial position, results of operations, the strength of its capital position, and overall business performance. These non-GAAP financial measures are used by Webster for performance measurement purposes, as well as for internal planning and forecasting, and by securities analysts, investors, and other interested parties to assess peer company operating performance. Webster believes that this presentation, together with the accompanying reconciliations, provides investors with a more complete understanding of the factors and trends affecting its business and allows investors to view its performance in a manner similar to management.
The efficiency ratio represents the costs expended to generate a dollar of revenue and is calculated excluding certain non-operational items and certain non-recurring transactions or events. The return on average tangible common stockholders’ equity is calculated using net income less preferred stock dividends, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and other intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and other intangible assets (“tangible stockholders’ equity”) divided by total assets less goodwill and other intangible assets (“tangible assets”). The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and other intangible assets (“tangible common stockholders’ equity”) divided by tangible assets. Tangible book value per common share represents tangible common stockholders’ equity divided by the number of common shares outstanding at the end of the reporting period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. The adjusted return on average assets, adjusted return on average tangible common stockholders’ equity, adjusted return on average common stockholders’ equity, adjusted pre-tax net income, adjusted net income applicable to common stockholders, and adjusted diluted EPS are calculated excluding certain non-recurring transactions or events, which have been tax-effected, as applicable.
These non-GAAP financial measures should not be considered a substitute for GAAP-basis financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these with other companies that present financial measures having the same or similar names. Webster strongly encourages investors to review its consolidated financial statements in their entirety and to not rely on any single financial measure.
Refer the tables beginning on page 20 for Non-GAAP to GAAP reconciliations.
NO OFFER OR SOLICITATION
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”). By making this communication available, no advice or recommendation is being given to buy, sell or otherwise deal in any securities or investments whatsoever.
ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT
Banco Santander filed a registration statement on Form F-4 (File No. 333-294235) with the Securities and Exchange Commission (“SEC”) on March 12, 2026, and an amendment on April 20, 2026, to register the ordinary shares of Banco Santander underlying the Banco Santander American Depository Shares that will be issued to Webster stockholders in connection with the proposed Transaction. The registration statement includes a proxy statement of Webster that also constitutes a prospectus of Banco Santander. The registration statement was declared effective on April 22, 2026. Banco Santander filed a prospectus on April 23, 2026, and Webster filed a definitive proxy statement on April 23, 2026. Webster commenced mailing of the definitive proxy statement/prospectus to Webster’s stockholders on or about April 24, 2026.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM F-4 AND THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM F-4, AS WELL AS ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN OR WILL BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT ON FORM F-4 AND THE PROXY STATEMENT/PROSPECTUS AND ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING WEBSTER, BANCO SANTANDER, THE TRANSACTION AND RELATED MATTERS.
Investors and security holders may obtain free copies of these documents and other documents filed with the SEC by Webster or Banco Santander through the website maintained by the SEC at https://www.sec.gov or by contacting the investor relations department of Webster or Banco Santander at:
Webster, Banco Santander and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Webster in connection with the Transaction under the rules of the SEC. Information regarding the directors and executive officers of Webster and Banco Santander is set forth in (i) Webster’s Amendment to No. 1 to its Annual Report on Form 10-K for the year ending December 31, 2025, including under the headings entitled “Director Independence”, “Non-Employee Director Compensation and Stock Ownership Guidelines”, “Compensation and Human Resources Committee Interlocks and Insider Participation”, “Executive Compensation”, “2025 Pay Versus Performance” and “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”, which was filed with the SEC on April 24, 2026 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000801337/000080133726000011/wbs-20251231.htm, and (ii) Banco Santander’s Annual Report on Form 20-F for the year ending December 31, 2025, including under the headings entitled “Directors and Senior Management”, “Compensation”, “Share Ownership” and “Majority Shareholders and Related Party Transactions”, which was filed with the SEC on February 27, 2026 and is available at https://www.sec.gov/Archives/edgar/data/san-20251231.htm/000089147826000030/0000891478-26-000030-index.html. To the extent holdings of each of Webster’s or Banco Santander’s securities by its directors or executive officers have changed since the amounts set forth in Webster’s definitive proxy statement for its 2025 Annual Meeting of Stockholders and in Banco Santander’s Annual Report on Form 20-F for the year ending December 31, 2025, such changes have been or will be reflected on Webster’s Statements of Change in Ownership on Form 4 filed with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the definitive proxy statement/prospectus of Webster and Banco Santander and other relevant materials filed with the SEC, as well as any amendments or supplements to those documents that have been or will be filed with the SEC. You may obtain free copies of these documents through the website maintained by the SEC at https://www.sec.gov.
WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights Three Months Ended (In thousands, except per share and ratio data) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 Income and performance ratios: Net income $ 246,231
$ 255,820
$ 261,217
$ 258,848
$ 226,917
Net income applicable to common stockholders 239,274
248,701
254,051
251,695
220,367
Earnings per common share - diluted 1.50
1.55
1.54
1.52
1.30
Return on average assets (annualized) 1.16
%
1.23
%
1.27
%
1.29
%
1.15
%
Return on average tangible common stockholders' equity (annualized) (1) 16.18
17.10
17.64
17.96
15.93
Return on average common stockholders’ equity (annualized) 10.35
10.91
11.23
11.31
9.94
Non-interest income as a percentage of total revenue (2) 13.79
15.19
13.77
13.22
13.14
Asset quality: Allowance for credit losses on loans and leases $ 733,434
$ 719,411
$ 727,897
$ 722,046
$ 713,321
Non-performing assets 524,418
502,156
545,327
537,050
564,708
Allowance for credit losses on loans and leases / total loans and leases 1.28
%
1.27
%
1.32
%
1.35
%
1.34
%
Net charge-offs / average loans and leases (annualized) 0.29
0.35
0.28
0.27
0.42
Non-performing loans and leases / total loans and leases 0.91
0.88
0.99
1.00
1.06
Non-performing assets / total loans and leases plus other real estate owned and repossessed assets 0.92
0.89
0.99
1.00
1.06
Allowance for credit losses on loans and leases / non-performing loans and leases 140.36
143.69
133.82
135.08
126.39
Other ratios: Tangible equity (1) 7.74
%
7.77
%
7.86
%
7.82
%
7.80
%
Tangible common equity (1) 7.39
7.42
7.50
7.46
7.43
Tier 1 Risk-Based Capital (3) 11.91
11.69
11.89
11.86
11.76
Total Risk-Based Capital (3) 13.89
13.67
14.68
14.05
13.96
Common equity tier 1 Risk-Based Capital (3) 11.42
11.20
11.39
11.35
11.25
Stockholders’ equity / total assets 11.19
11.29
11.37
11.40
11.47
Net interest margin 3.36
3.35
3.40
3.44
3.48
Efficiency ratio (1) 46.83
46.95
45.79
45.40
45.79
Equity and share related: Common stockholders' equity $ 9,289,670
$ 9,208,257
$ 9,178,698
$ 9,053,638
$ 8,920,175
Book value per common share 57.33
57.12
55.69
54.19
52.91
Tangible book value per common share (1) 37.59
37.20
36.42
35.13
33.97
Common stock closing price 69.42
62.94
59.44
54.60
51.55
Dividends and equivalents declared per common share 0.40
0.40
0.40
0.40
0.40
Common shares outstanding 162,049
161,216
164,817
167,083
168,594
Weighted-average common shares outstanding - basic 159,534
160,261
164,138
165,884
169,182
Weighted-average common shares - diluted 159,850
160,597
164,456
166,131
169,544
(1) See "Non-GAAP to GAAP Reconciliations" section beginning on page 20. (2) Total revenue reflects the sum of Net interest income and Non-interest income. (3) Presented as preliminary for March 31, 2026, and actual for the remaining periods. WEBSTER FINANCIAL CORPORATION
Consolidated Balance Sheets (In thousands) March 31,
2026
Allowance for credit losses on loans and leases (733,434
)
(719,411
)
(713,321
)
Total loans and leases, net 56,515,108
55,877,699
52,342,902
Federal Home Loan Bank and Federal Reserve Bank stock 431,395
356,411
350,702
Deferred tax assets, net 186,604
195,740
249,395
Premises and equipment, net 428,182
432,035
422,425
Goodwill and other intangible assets, net 3,197,981
3,210,756
3,193,132
Cash surrender value of life insurance policies 1,292,770
1,271,457
1,255,074
Accrued interest receivable and other assets 2,237,664
2,286,079
2,231,971
Total assets $ 85,584,588
$ 84,073,663
$ 80,279,750
Liabilities and Stockholders' Equity: Deposits: Demand $ 9,847,077
$ 10,082,854
$ 10,139,131
Interest-bearing checking 11,932,682
10,760,496
9,741,569
Health savings accounts 9,446,895
9,184,452
9,180,889
Money market 24,332,087
23,196,747
21,517,733
Savings 6,841,135
6,964,946
7,473,515
Certificates of deposit 5,848,150
6,078,549
6,036,144
Brokered certificates of deposit 791,690
2,491,769
1,486,248
Total deposits 69,039,716
68,759,813
65,575,229
Securities sold under agreements to repurchase 69,756
596,738
83,395
Federal Home Loan Bank advances 4,810,619
2,980,718
2,910,011
Long-term debt 738,312
739,454
907,410
Accrued expenses and other liabilities 1,352,536
1,504,704
1,599,551
Total liabilities 76,010,939
74,581,427
71,075,596
Preferred stock 283,979
283,979
283,979
Common stockholders' equity 9,289,670
9,208,257
8,920,175
Total stockholders’ equity 9,573,649
9,492,236
9,204,154
Total liabilities and stockholders' equity $ 85,584,588
$ 84,073,663
$ 80,279,750
WEBSTER FINANCIAL CORPORATION
Consolidated Statements of Income Three Months Ended March 31,
(In thousands, except per share data) 2026
2025
Interest Income: Interest and fees on loans and leases $ 776,610
$ 755,117
Interest on investment securities 193,100
194,469
Loans held for sale 18
15
Other interest and dividends 24,551
23,886
Total interest income 994,279
973,487
Interest Expense: Deposits 316,624
326,383
Borrowings 43,252
34,912
Total interest expense 359,876
361,295
Net interest income 634,403
612,192
Provision for credit losses 54,000
77,500
Net interest income after provision for credit losses 580,403
534,692
Non-interest Income: Deposit service fees 41,515
38,895
Loan and lease related fees 15,414
17,621
Wealth and investment services 7,209
7,789
Cash surrender value of life insurance policies 8,644
7,992
Gain on sale of investment securities, net -
220
Other income 28,681
20,089
Total non-interest income 101,463
92,606
Non-interest Expense: Compensation and benefits 222,906
198,645
Occupancy 19,486
19,717
Technology and equipment 49,631
47,719
Intangible assets amortization 9,186
9,237
Marketing 4,699
4,027
Professional and outside services 22,542
17,226
Deposit insurance 16,300
16,345
Other expense 34,359
30,728
Total non-interest expense 379,109
343,644
Income before income taxes 302,757
283,654
Income tax expense 56,526
56,737
Net income 246,231
226,917
Preferred stock dividends (4,163
)
(4,163
)
Income allocated to participating securities (2,794
)
(2,387
)
Net income applicable to common stockholders $ 239,274
$ 220,367
Weighted-average common shares outstanding - basic 159,534
169,182
Weighted-average common shares - diluted 159,850
169,544
Earnings per Common Share: Basic $ 1.50
$ 1.30
Diluted 1.50
1.30
WEBSTER FINANCIAL CORPORATION
Five Quarter Consolidated Statements of Income Three Months Ended (In thousands, except per share data) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 Interest Income: Interest and fees on loans and leases $ 776,610
$ 793,570
$ 794,668
$ 775,203
$ 755,117
Interest on investment securities 193,100
200,024
201,321
197,766
194,469
Loans held for sale 18
205
3,988
7
15
Other interest and dividends 24,551
25,333
28,325
27,611
23,886
Total interest income 994,279
1,019,132
1,028,302
1,000,587
973,487
Interest Expense: Deposits 316,624
344,078
355,504
339,738
326,383
Borrowings 43,252
42,201
41,131
39,667
34,912
Total interest expense 359,876
386,279
396,635
379,405
361,295
Net interest income 634,403
632,853
631,667
621,182
612,192
Provision for credit losses 54,000
42,000
44,000
46,500
77,500
Net interest income after provision for credit losses 580,403
590,853
587,667
574,682
534,692
Non-interest Income: Deposit service fees 41,515
38,486
39,576
40,934
38,895
Loan and lease related fees 15,414
19,010
16,404
17,657
17,621
Wealth and investment services 7,209
7,775
7,640
7,779
7,789
Cash surrender value of life insurance policies 8,644
8,520
7,535
9,172
7,992
Gain on sale of investment securities, net -
-
-
-
220
Other income 28,681
39,559
29,751
19,115
20,089
Total non-interest income 101,463
113,350
100,906
94,657
92,606
Non-interest Expense: Compensation and benefits 222,906
214,137
209,036
199,930
198,645
Occupancy 19,486
19,359
19,003
19,337
19,717
Technology and equipment 49,631
49,443
47,520
45,932
47,719
Intangible assets amortization 9,186
9,008
8,966
9,093
9,237
Marketing 4,699
6,827
4,953
5,171
4,027
Professional and outside services 22,542
21,767
17,815
18,394
17,226
Deposit insurance 16,300
3,979
15,621
15,061
16,345
Other expense 34,359
58,717
33,755
32,796
30,728
Total non-interest expense 379,109
383,237
356,669
345,714
343,644
Income before income taxes 302,757
320,966
331,904
323,625
283,654
Income tax expense 56,526
65,146
70,687
64,777
56,737
Net income 246,231
255,820
261,217
258,848
226,917
Preferred stock dividends (4,163
)
(4,163
)
(4,162
)
(4,162
)
(4,163
)
Income allocated to participating securities (2,794
)
(2,956
)
(3,004
)
(2,991
)
(2,387
)
Net income applicable to common stockholders $ 239,274
$ 248,701
$ 254,051
$ 251,695
$ 220,367
Weighted-average common shares outstanding - basic 159,534
160,261
164,138
165,884
169,182
Weighted-average common shares - diluted 159,850
160,597
164,456
166,131
169,544
Earnings per Common Share: Basic $ 1.50
$ 1.55
$ 1.55
$ 1.52
$ 1.30
Diluted 1.50
1.55
1.54
1.52
1.30
WEBSTER FINANCIAL CORPORATION
Consolidated Average Balances, Interest, Average Yields/ Rates, and Net Interest Margin on a Fully Tax-equivalent Basis Three Months Ended March 31, 2026
2025
(Dollars in thousands) Average Balance Interest
Income/Expense Average
Yield/Rate Average Balance Interest
Income/Expense Average
Yield/Rate Assets: Interest-earning assets: Loans and leases $ 57,106,092
$ 789,336
5.53
%
$ 52,568,406
$ 766,388
5.84
%
Investment securities 18,626,911
195,731
4.20
18,113,958
196,809
4.35
Federal Home Loan and Federal Reserve Bank stock 381,312
4,498
4.78
323,982
3,954
4.95
Interest-bearing deposits 2,206,596
20,053
3.64
1,819,496
19,932
4.38
Loans held for sale 14,100
18
0.50
28,732
15
0.21
Total interest-earning assets 78,335,011
$ 1,009,636
5.16
%
72,854,574
$ 987,098
5.42
%
Non-interest-earning assets 6,761,702
6,410,395
Total assets $ 85,096,713
$ 79,264,969
Liabilities and Stockholders' Equity: Interest-bearing liabilities: Demand $ 10,120,435
$ -
-
%
$ 10,280,570
$ -
-
%
Interest-bearing checking 11,288,211
45,269
1.63
9,709,820
40,899
1.71
Health savings accounts 9,562,306
3,946
0.17
9,307,517
3,560
0.16
Money market 23,968,546
181,059
3.06
21,114,901
183,107
3.52
Savings 6,847,778
23,719
1.40
7,104,607
28,143
1.61
Certificates of deposit 5,892,336
44,968
3.10
6,047,194
54,942
3.68
Brokered certificates of deposits 1,836,424
17,663
3.90
1,402,350
15,732
4.55
Total deposits 69,516,036
316,624
1.85
64,966,959
326,383
2.04
Securities sold under agreements to repurchase 179,787
1,062
2.36
244,560
1,676
2.74
Federal Home Loan Bank advances 3,535,915
33,860
3.83
2,112,301
23,589
4.47
Long-term debt 722,150
8,330
4.61
886,235
9,647
4.35
Total borrowings 4,437,852
43,252
3.90
3,243,096
34,912
4.31
Total deposits and interest-bearing liabilities 73,953,888
$ 359,876
1.97
%
68,210,055
$ 361,295
2.15
%
Non-interest-bearing liabilities 1,504,587
1,809,884
Total liabilities 75,458,475
70,019,939
Preferred stock 283,979
283,979
Common stockholders' equity 9,354,259
8,961,051
Total stockholders' equity 9,638,238
9,245,030
Total liabilities and stockholders' equity $ 85,096,713
$ 79,264,969
Tax-equivalent net interest income 649,760
625,803
Less: Tax-equivalent adjustments (15,357
)
(13,611
)
Net interest income $ 634,403
$ 612,192
Net interest margin 3.36
%
3.48
%
WEBSTER FINANCIAL CORPORATION
Five Quarter Loans and Leases (In thousands) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 Loans and leases (actual): Commercial non-mortgage $ 22,169,383
$ 21,664,119
$ 20,654,331
$ 19,943,097
$ 19,495,784
Asset-based lending 1,118,988
1,231,231
1,258,478
1,350,006
1,385,042
Commercial real estate 22,569,080
22,334,846
21,911,298
21,358,775
21,383,144
Residential mortgages 9,600,026
9,599,577
9,509,142
9,332,413
9,123,000
Consumer 1,791,065
1,767,337
1,718,832
1,687,668
1,669,253
Total loans and leases 57,248,542
56,597,110
55,052,081
53,671,959
53,056,223
Allowance for credit losses on loans and leases (733,434
)
(719,411
)
(727,897
)
(722,046
)
(713,321
)
Total loans and leases, net $ 56,515,108
$ 55,877,699
$ 54,324,184
$ 52,949,913
$ 52,342,902
Loans and leases (average): Commercial non-mortgage $ 21,947,141
$ 21,244,671
$ 20,451,639
$ 19,703,434
$ 19,167,596
Asset-based lending 1,171,324
1,259,776
1,289,208
1,360,288
1,409,177
Commercial real estate 22,571,488
22,082,606
21,508,546
21,302,161
21,338,147
Residential mortgages 9,634,148
9,584,853
9,416,499
9,228,988
8,985,033
Consumer 1,781,991
1,751,232
1,707,068
1,683,026
1,668,453
Total loans and leases $ 57,106,092
$ 55,923,138
$ 54,372,960
$ 53,277,897
$ 52,568,406
WEBSTER FINANCIAL CORPORATION
Five Quarter Non-performing Assets and Past Due Loans and Leases (In thousands) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 Non-performing loans and leases: Commercial non-mortgage $ 193,936
$ 174,073
$ 223,398
$ 231,458
$ 279,831
Asset-based lending 60,471
66,911
58,797
44,405
42,207
Commercial real estate 231,353
224,623
227,118
224,554
207,402
Residential mortgages 20,127
17,889
16,843
15,748
15,715
Consumer 16,662
17,188
17,772
18,357
19,243
Total non-performing loans and leases $ 522,549
$ 500,684
$ 543,928
$ 534,522
$ 564,398
Other real estate owned and repossessed assets: Commercial non-mortgage $ 1,284
$ 1,082
$ 1,399
$ 2,528
$ 310
Residential mortgages 195
-
-
-
-
Consumer 390
390
-
-
-
Total other real estate owned and repossessed assets $ 1,869
$ 1,472
$ 1,399
$ 2,528
$ 310
Total non-performing assets $ 524,418
$ 502,156
$ 545,327
$ 537,050
$ 564,708
Past due 30-89 days: Commercial non-mortgage $ 26,812
$ 16,428
$ 10,934
$ 16,338
$ 27,304
Commercial real estate 89,105
24,962
27,812
16,241
33,030
Residential mortgages 21,790
15,194
17,000
12,664
16,406
Consumer 11,122
9,902
8,730
9,516
9,906
Total past due 30-89 days $ 148,829
$ 66,486
$ 64,476
$ 54,759
$ 86,646
Past due 90 days or more and accruing 9
-
1,152
-
507
Total past due loans and leases $ 148,838
$ 66,486
$ 65,628
$ 54,759
$ 87,153
WEBSTER FINANCIAL CORPORATION
Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases Three Months Ended (In thousands) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 ACL on loans and leases, beginning balance $ 719,411
$ 727,897
$ 722,046
$ 713,321
$ 689,566
Provision 55,239
41,005
44,205
45,126
78,712
Charge-offs: Commercial portfolio 40,225
48,492
37,914
39,792
55,566
Consumer portfolio 3,997
2,994
2,034
1,446
1,052
Total charge-offs 44,222
51,486
39,948
41,238
56,618
Recoveries: Commercial portfolio 1,017
556
765
3,250
942
Consumer portfolio 1,989
1,439
829
1,587
719
Total recoveries 3,006
1,995
1,594
4,837
1,661
Total net charge-offs 41,216
49,491
38,354
36,401
54,957
ACL on loans and leases, ending balance $ 733,434
$ 719,411
$ 727,897
$ 722,046
$ 713,321
ACL on unfunded loan commitments $ 22,879
$ 24,117
$ 23,117
$ 22,824
$ 21,443
WEBSTER FINANCIAL CORPORATION
Non-GAAP to GAAP Reconciliations Three Months Ended (In thousands, except ratio data) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 Efficiency ratio: Non-interest expense $ 379,109
$ 383,237
$ 356,669
$ 345,714
$ 343,644
Less: Foreclosed property activity 43
(577
)
1,535
541
517
Intangible assets amortization 9,186
9,008
8,966
9,093
9,237
Operating lease depreciation -
-
3
9
16
Charitable contribution to the Webster Foundation -
20,000
-
-
-
Asset disposal and contract termination costs -
6,966
-
-
-
Acquisition-related expenses (1) 9,145
1,129
-
-
-
Strategic restructuring costs (2) 3,636
-
-
-
-
FDIC special assessment (684
)
(10,318
)
-
-
-
Adjusted non-interest expense $ 357,783
$ 357,029
$ 346,165
$ 336,071
$ 333,874
Net interest income $ 634,403
$ 632,853
$ 631,667
$ 621,182
$ 612,192
Add: Tax-equivalent adjustment 15,357
14,903
14,258
13,870
13,611
Non-interest income 101,463
113,350
100,906
94,657
92,606
Other income (3) 12,828
9,142
9,234
10,528
11,032
Less: Operating lease depreciation -
-
3
9
16
Gain on sale of investment securities, net -
-
-
-
220
Gain on redemption of long-term debt -
9,767
-
-
-
Adjusted income $ 764,051
$ 760,481
$ 756,062
$ 740,228
$ 729,205
Efficiency ratio 46.83
%
46.95
%
45.79
%
45.40
%
45.79
%
Return on average tangible common stockholders' equity: Net income $ 246,231
Average goodwill and other intangible assets, net 3,203,998
3,190,386
3,180,111
3,188,946
3,198,123
Average tangible common stockholders' equity $ 6,150,261
$ 6,038,668
$ 5,976,058
$ 5,821,098
$ 5,762,928
Return on average tangible common stockholders' equity 16.18
%
17.10
%
17.64
%
17.96
%
15.93
%
(1) Acquisition-related expenses reflect Transaction expenses for the three months ended March 31, 2026, and SecureSave acquisition expenses for the three months ended December 31, 2025. (2) Strategic restructuring costs reflect severance charges. (3) Other income reflects a tax-equivalent adjustment on income generated from low-income housing tax credit investments. WEBSTER FINANCIAL CORPORATION
Non-GAAP to GAAP Reconciliations (In thousands, except ratio and per share data) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025 March 31,
2025 Tangible equity ratio: Stockholders' equity $ 9,573,649
$ 9,492,236
$ 9,462,677
$ 9,337,617
$ 9,204,154
Less: Goodwill and other intangible assets, net 3,197,981
3,210,756
3,175,747
3,184,039
3,193,132
Tangible stockholders' equity $ 6,375,668
$ 6,281,480
$ 6,286,930
$ 6,153,578
$ 6,011,022
Total assets $ 85,584,588
$ 84,073,663
$ 83,192,652
$ 81,914,270
$ 80,279,750
Less: Goodwill and other intangible assets, net 3,197,981
3,210,756
3,175,747
3,184,039
3,193,132
Tangible assets $ 82,386,607
$ 80,862,907
$ 80,016,905
$ 78,730,231
$ 77,086,618
Tangible equity ratio: 7.74
%
7.77
%
7.86
%
7.82
%
7.80
%
Tangible common equity ratio: Tangible stockholders' equity $ 6,375,668
$ 6,281,480
$ 6,286,930
$ 6,153,578
$ 6,011,022
Less: Preferred stock 283,979
283,979
283,979
283,979
283,979
Tangible common stockholders' equity $ 6,091,689
$ 5,997,501
$ 6,002,951
$ 5,869,599
$ 5,727,043
Tangible assets $ 82,386,607
$ 80,862,907
$ 80,016,905
$ 78,730,231
$ 77,086,618
Tangible common equity ratio: 7.39
%
7.42
%
7.50
%
7.46
%
7.43
%
Tangible book value per common share: Tangible common stockholders' equity $ 6,091,689
$ 5,997,501
$ 6,002,951
$ 5,869,599
$ 5,727,043
Common shares outstanding 162,049
161,216
164,817
167,083
168,594
Tangible book value per common share $ 37.59
$ 37.20
$ 36.42
$ 35.13
$ 33.97
Core deposits: Total deposits $ 69,039,716
$ 68,759,813
$ 68,175,644
$ 66,314,425
$ 65,575,229
Less: Certificates of deposit 5,848,150
6,078,549
6,202,906
6,069,447
6,036,144
Brokered certificates of deposit 791,690
2,491,769
1,372,907
1,850,438
1,486,248
Core deposits $ 62,399,876
$ 60,189,495
$ 60,599,831
$ 58,394,540
$ 58,052,837
WEBSTER FINANCIAL CORPORATION
Non-GAAP to GAAP Reconciliations Three Months Ended
March 31, 2026 Adjusted return on average assets: Net income $ 246,231
Adjusted return on average common stockholders' equity 10.82
%
GAAP to adjusted reconciliation: Three Months Ended March 31, 2026 (In thousands, except per share data) Pre-Tax Income Income Applicable to
Common Stockholders Diluted EPS Reported (GAAP) $ 302,757
Webster Financial (WBS - Free Report) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.3 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.33%. A quarter ago, it was expected that this holding company for Webster Bank would post earnings of $1.52 per share when it actually produced earnings of $1.59, delivering a surprise of +4.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Webster Financial, which belongs to the Zacks Banks - Northeast industry, posted revenues of $735.87 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.5%. This compares to year-ago revenues of $704.8 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Webster Financial shares have added about 14.1% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Webster Financial?While Webster Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Webster Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.62 on $750.24 million in revenues for the coming quarter and $6.61 on $3.05 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, Banks - Northeast 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.
Northeast Community Bancorp (NECB - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.
This bank holding company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of -3.9%. The consensus EPS estimate for the quarter has been revised 4.8% lower over the last 30 days to the current level.
Northeast Community Bancorp's revenues are expected to be $26.42 million, up 3.6% from the year-ago quarter.
For the quarter ended March 2026, Webster Financial (WBS - Free Report) reported revenue of $735.87 million, up 4.4% over the same period last year. EPS came in at $1.57, compared to $1.30 in the year-ago quarter.
The reported revenue represents a surprise of -0.5% over the Zacks Consensus Estimate of $739.52 million. With the consensus EPS estimate being $1.53, the EPS surprise was +2.33%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Webster Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 46.8% compared to the 49.5% average estimate based on six analysts.Net Interest Margin: 3.4% versus 3.4% estimated by six analysts on average.Net charge-offs/average loans and leases (annualized): 0.3% versus the five-analyst average estimate of 0.3%.Average balance - Total interest-earning assets: $78.34 billion compared to the $77.65 billion average estimate based on five analysts.Total nonperforming assets: $524.42 million versus the two-analyst average estimate of $495.88 million.Total Non-Interest Income: $101.46 million versus the six-analyst average estimate of $99.87 million.Deposit service fees: $41.52 million versus $40.38 million estimated by four analysts on average.Tax-equivalent Net Interest Income: $649.76 million versus $647.47 million estimated by four analysts on average.Net Interest Income: $634.4 million versus the four-analyst average estimate of $637.42 million.Wealth and investment services: $7.21 million versus the four-analyst average estimate of $7.76 million.Loan and lease related fees: $15.41 million versus the four-analyst average estimate of $18.1 million.Increase in cash surrender value of life insurance policies: $8.64 million compared to the $8.84 million average estimate based on three analysts.View all Key Company Metrics for Webster Financial here>>>
Shares of Webster Financial have returned +5.8% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Webster Financial reported Q1 EPS of $1.57, beating estimates and rising from $1.30 a year ago.WBS saw NII grow 3.6% and non-interest income rise 9.6%, while total revenues missed estimates.Webster Financial's Santander deal shifts focus, with closing expected in H2'26 and no outlook given. Webster Financial Corporation (WBS - Free Report) posted adjusted earnings per share (EPS) of $1.57 for the first quarter of 2026, beating the Zacks Consensus Estimate of $1.53. Also, the reported figure compared favorably with the EPS of $1.30 reported a year ago.
Results benefited from a rise in net interest income (NII) and non-interest income. Higher loan and deposit balances and a decline in provision were encouraging, too. However, an increase in non-interest expenses was a headwind.
Results excluded transaction expenses, restructuring costs and a benefit related to the FDIC special assessment. After considering these, net income applicable to common shareholders (GAAP basis) was $239.3 million, up 8.6% from the prior-year quarter.
WBS’ Revenues & Expenses Increase Y/YTotal revenues came in at $735.9 million, missing the consensus mark by 0.5%. The metric rose 4.4% year over year.
NII increased 3.6% year over year to $634.4 million. The net interest margin was 3.36%, down 12 basis points.
Non-interest income was $101.5 million, up 9.6% from the year-ago quarter’s reported figure of $92.6 million. The increase was primarily driven by increased client hedging activities, the change in the credit valuation adjustment, increased revenues from Ametros, higher deposit service fees, and the acquisition of SecureSave, partially offset by lower loan prepayment and syndication fees.
Non-interest expenses were $379.1 million, up 10.3% from the year-ago quarter. In the first quarter of 2026, the figure included $9.1 million in transaction expenses, $3.6 million in strategic restructuring costs and a $0.7-million benefit related to the FDIC special assessment. Excluding these items, total non-interest expenses increased $23.5 million. The rise was primarily driven by higher compensation and benefits costs.
The efficiency ratio was 46.83% compared with 45.79% in the prior-year quarter. An increase in the efficiency ratio indicates a decline in profitability.
WBS's Balance Sheet Expands, Funding Mix ShiftsPeriod-end loans and leases grew to $57.2 billion, up 1.2% from the prior quarter, with increases across commercial, commercial real estate and consumer categories. Total deposits inch up to $69 billion from $68.8 billion in the prior quarter, supported by growth in core deposits as a share of total funding.
The loan-to-deposit ratio was 82.9%, slightly higher than the prior quarter’s 82.3%, as loan growth outpaced deposit inflows. Total borrowings increased to $5.6 billion from $4.3 billion at the end of 2025, reflecting a somewhat greater reliance on wholesale funding.
Webster Financial’s Credit Quality Mixed BagTotal non-performing assets were $524.4 million as of March 31, 2026, down 7.1% from the year-ago quarter. Allowance for loan losses was 1.28% of the total loans, which decreased from 1.34% reported in the first quarter of 2025.
The ratio of net charge-offs to annualized average loans was 0.29%, down from 0.42% in the year-ago period.
The provision for credit losses was $54 million, down 30.3% year over year.
WBS’ Capital Ratios: Mixed BagAs of March 31, 2026, the Tier 1 risk-based capital ratio was 11.91%, which increased from 11.76% as of March 31, 2025. The total risk-based capital ratio was 13.89%, down from the prior-year quarter’s 13.96%.
Webster Financial’s Profitability Ratios ImproveReturn on average assets was 1.16%, up from 1.15% in the prior-year quarter. At the end of the first quarter, the return on average common stockholders' equity was 10.35%, which rose from 9.94% in the prior-year quarter.
WBS's Santander Deal Becomes Key Strategic FocusWebster Financial entered into a transaction agreement under which Banco Santander is set to acquire the company in a cash-and-stock deal. The deal is expected to close in the second half of 2026.
In light of the proposed transaction, management said Webster will no longer provide a forward-looking financial outlook. The company is focused on integration planning, noting that the combination is expected to enhance its ability to support clients and communities while opening additional growth opportunities.
Our Take on WebsterWebster’s proposed sale to Banco Santander shifts the near-term narrative from standalone execution to deal progression. Still, the first-quarter results showed the core franchise is holding up well, with NII rising year over year and non-interest income benefiting from items like stronger client hedging activity. Expense growth, led by compensation and benefits, remains an area to watch as it can limit operating leverage, while credit costs and non-performing loans warrant close monitoring given the quarter’s provision level and asset quality mix.
Webster Financial Corporation Price, Consensus and EPS Surprise
Webster Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Bank StocksHancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted EPS of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
HWC’s results were supported by higher NII and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Higher expenses and increased provisions acted as other headwinds.
WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.
WAFD’s results reflected higher NII and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.
STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced that its Board of Directors declared a quarterly cash dividend of $0.40 per share on its common stock.
The dividend on common shares will be payable May 21, 2026, to shareholders of record as of May 11, 2026.
On its Series F Preferred Stock, Webster declared a quarterly cash dividend of $328.125 per share ($0.328125 per each depositary share, 1,000 of which represent one share of Series F Preferred Stock), payable June 15, 2026, to shareholders of record on May 31, 2026.
On its Series G Preferred Stock, Webster declared a quarterly cash dividend of $16.25 per share ($0.40625 per each depositary share, 40 of which represent one share of Series G Preferred Stock), payable July 15, 2026, to shareholders of record on June 30, 2026.
About Webster
Webster Financial Corporation (“Webster”) (NYSE:WBS) is the holding company for Webster Bank, N.A. (“Webster Bank”). Founded in 1935 and headquartered in Stamford, CT, Webster is a values-driven organization with more than $80 billion in total assets. Webster Bank is a commercial bank that provides a wide range of financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking. While its core footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, certain businesses operate in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Webster Financial Corporation (NYSE: WBS) to Banco Santander, S.A. (NYSE: SAN). Under the terms of the proposed transaction, shareholders of Webster will receive $48.75 in cash and 2.0548 Santander American Depository Shares for each share of Webster that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-wbs/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
Some investors dismiss chart analysis as little more than astrology. But at its core, technical analysis is the study of supply, demand and market psychology.
As the chart shows, Webster Financial has formed a classic ascending triangle, a pattern that often signals a potential upside breakout.
The top of the pattern is a horizontal resistance line. Resistance forms when sellers repeatedly emerge at the same price level, preventing the stock from moving higher.
The lower trendline slopes upward, showing that buyers have become increasingly aggressive over time. They have been willing to pay progressively higher prices, pushing support higher.
The result is a market dynamic in which patient sellers are meeting increasingly eager buyers. If demand eventually overwhelms supply at resistance, Webster could break out and move higher.
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to Jimmy John’s Funding, LLC Series 2026-1 Class A-1 VFN and Class A-2 Notes, a whole business securitization (WBS). The rating actions follow KBRA’s analysis which indicates that existing credit enhancement for the notes and cash flows are sufficient to support the ratings following the issuance of the Series 2026- 1.
In conjunction with the issuance of the Series 2026-1 Notes, the Series 2017-1 Class A-2-II, Series 2022-1 Class A-1, and Series 2022-1 Class A-2-I Notes are expected to be repaid, at which time KBRA expects to withdraw the associated ratings. At that time, KBRA anticipates affirming the ratings on the Series 2022-1 Class A-2-II and Series 2022-1 Class A-2-III Notes.
Jimmy Johns is the franchisor and operator of fast casual restaurants under Jimmy Johns brand, focusing on convenience, execution speed, and centered on sandwich and wrap menu items. The system has 2,776 locations in 44 U.S. states, and Washington D.C. The system is approximately 99% franchised as of last twelve months (LTM) March 29, 2026. The system generated approximately $2.7 billion in systemwide sales (SWS) as of LTM March 29, 2026.
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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
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Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Tenet Fintech Group (OTCMKTS:PKKFF - Get Free Report) and Payoneer Global (NASDAQ: PAYO - Get Free Report) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership. Profitability This table compares Tenet
As market volatility whipsaws major indices and leaves investors wary of overstretched valuations in the more notable names, Bank of America is urging a pivot toward high-conviction plays flying under the radar.
While tech remains the primary engine of global growth, BofA’s latest research report suggests the best risk-reward may now lie in specialized fintech and cross-border payment platforms.
By identifying strong moats and massive addressable markets, experts at the bank are pointing to two specific names – Payoneer and PicPay – as candidates poised to thrive amidst the turbulence.
Payoneer is emerging as a formidable force in the world of business-to-business (B2B) transactions, and BofA believes the market is drastically underestimating its reach.
Analyst Aditya Buddhavarapu rates PAYO at “buy” – highlighting a “multi-trillion dollar growth opportunity” that provides a massive runway for the fintech stock.
While many payment processors struggle with razor-thin margins, Payoneer is busy “building the moat” by focusing on the lucrative and underserved small-to-medium business (SMB) segment.
Buddhavarapu’s bullish thesis is centered on the sheer scale of the landscape PAYO inhabits.
“Payoneer’s positioning serves a very large addressable market with the [business-to-business total addressable market] at $6 trillion while marketplace payouts are $300 billon,” he noted.
With a price objective of $6, the investment firm sees Payoneer stock as “too attractive to ignore.”
In his research note, Buddhavarapu said PAYO’s differentiation lies in its sophisticated “account-centric experience tuned to SMB workflows,” and a web of regulatory coverage and partner rails that are difficult for rivals to replicate.
As the financial technology company continues to generate solid cash flow, Bank of America sees a host of positive catalysts that could drive shares significantly higher from current levels.
PicPay: a growth story trading at a discountIn the Latin American fintech market, PicPay is grabbing headlines following its initial public offering (IPO) earlier this year.
Despite a challenging March that saw PICS retreat nearly 40%, BofA’s senior analyst Mario Pierry recommends treating the dip as a golden opportunity to build a position at a deep discount.
According to the investment firm, PicPay is a “compelling growth story” that has already amassed a remarkable 43 million active users.
Its “buy” rating is predicated on the company’s unique ability to scale its ecosystem across a wide variety of business sizes and financial needs.
A key driver for PICS future valuation is its expansion into untapped territory.
“Revenue expansion should also be supported by new verticals, such as services to small- and medium-sized enterprises,” Pierry explained.
Furthermore, PicPay is leveraging its massive user base to boost profitability through a “wide array of credit offerings” and increased monetization of existing clients.
According to Pierry, the company boasts “strong earnings momentum” and “operational leverage gains,” yet its valuation remains notably attractive.
“Valuation multiples are discounted vs LatAm and global peers,” he noted, suggesting that for investors willing to look beyond domestic borders, PICS offers a rare combination of high-velocity growth and value-oriented pricing.
CompoSecure (NASDAQ:CMPO – Get Free Report) and Payoneer Global (NASDAQ:PAYO – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Profitability This table compares CompoSecure and Payoneer Global’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets CompoSecure -24.53% -65.50% 26.83% Payoneer Global 6.95% 10.89% 0.99% Risk and Volatility CompoSecure has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Payoneer Global has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Analyst Recommendations This is a breakdown of current ratings for CompoSecure and Payoneer Global, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score CompoSecure 0 0 6 0 3.00 Payoneer Global 0 1 7 0 2.88 CompoSecure currently has a consensus target price of $25.50, indicating a potential upside of 49.12%. Payoneer Global has a consensus target price of $7.57, indicating a potential upside of 53.89%. Given Payoneer Global’s higher probable upside, analysts clearly believe Payoneer Global is more favorable than CompoSecure.
Earnings & Valuation This table compares CompoSecure and Payoneer Global”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio CompoSecure $160.68 million 13.45 -$53.72 million ($2.16) -7.92 Payoneer Global $1.05 billion 1.61 $73.19 million $0.19 25.89 Payoneer Global has higher revenue and earnings than CompoSecure. CompoSecure is trading at a lower price-to-earnings ratio than Payoneer Global, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership 37.6% of CompoSecure shares are owned by institutional investors. Comparatively, 82.2% of Payoneer Global shares are owned by institutional investors. 52.1% of CompoSecure shares are owned by insiders. Comparatively, 2.6% of Payoneer Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary Payoneer Global beats CompoSecure on 10 of the 14 factors compared between the two stocks.
About CompoSecure (Get Free Report)
CompoSecure, Inc. manufactures and designs metal, composite, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which supports specific digital assets, including Bitcoin, Ethereum, non-fungible tokens and others. In addition, it offers Payments + Arculus Secure Authenticate, white-labeled cold storage wallet, Payments + Arculus Cold Storage, and Payments + Arculus Authentication + Arculus Cold Storage. The company serves financial institutions, plastic card manufacturers, system integrators, and security specialists. CompoSecure, Inc. was founded in 1910 and is based in Somerset, New Jersey.
About Payoneer Global (Get Free Report)
Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.
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Shares of Payoneer Global Inc. (NASDAQ:PAYO – Get Free Report) have earned a consensus rating of “Moderate Buy” from the eight brokerages that are currently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $7.5714.
Several research analysts recently commented on the company. Benchmark lowered their target price on Payoneer Global from $10.00 to $7.00 and set a “buy” rating for the company in a research note on Friday, March 6th. Wall Street Zen cut Payoneer Global from a “hold” rating to a “sell” rating in a research note on Saturday, March 28th. Weiss Ratings reissued a “hold (c)” rating on shares of Payoneer Global in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods cut their target price on shares of Payoneer Global from $7.50 to $7.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Finally, Needham & Company LLC decreased their price target on shares of Payoneer Global from $10.00 to $8.00 and set a “buy” rating for the company in a research note on Thursday, February 26th.
Get Our Latest Report on Payoneer Global
Institutional Investors Weigh In On Payoneer Global Several institutional investors have recently modified their holdings of PAYO. Royal Bank of Canada increased its holdings in Payoneer Global by 299.7% in the first quarter. Royal Bank of Canada now owns 158,997 shares of the company’s stock valued at $1,162,000 after buying an additional 119,219 shares during the last quarter. AQR Capital Management LLC lifted its holdings in Payoneer Global by 8.8% during the 1st quarter. AQR Capital Management LLC now owns 291,908 shares of the company’s stock worth $2,134,000 after buying an additional 23,533 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Payoneer Global during the 1st quarter worth about $172,000. United Services Automobile Association purchased a new position in shares of Payoneer Global in the 1st quarter valued at about $126,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Payoneer Global by 5.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 757,827 shares of the company’s stock valued at $5,540,000 after acquiring an additional 41,970 shares during the last quarter. 82.22% of the stock is owned by hedge funds and other institutional investors.
Payoneer Global Price Performance Payoneer Global stock opened at $4.92 on Friday. Payoneer Global has a 52-week low of $4.08 and a 52-week high of $7.66. The firm has a market cap of $1.70 billion, a PE ratio of 25.90, a price-to-earnings-growth ratio of 0.62 and a beta of 1.03. The company’s 50 day moving average is $5.19 and its two-hundred day moving average is $5.59.
Payoneer Global (NASDAQ:PAYO – Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.01). The company had revenue of $274.69 million for the quarter, compared to analysts’ expectations of $282.79 million. Payoneer Global had a return on equity of 10.89% and a net margin of 6.95%.The firm’s revenue was up 5.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.05 EPS. On average, equities research analysts anticipate that Payoneer Global will post 0.34 earnings per share for the current fiscal year.
Payoneer Global Company Profile (Get Free Report)
Payoneer Global (NASDAQ: PAYO) operates a digital payments platform that enables businesses, marketplaces and professionals to send and receive cross-border payments. The company’s core offerings include multi-currency receiving accounts, mass payout services and working capital solutions. Through its platform, Payoneer facilitates global transactions by connecting payors and payees across a network of local bank transfers, card payouts and digital wallets, supporting the seamless movement of funds in over 150 currencies.
Founded in 2005, Payoneer has grown from a small fintech venture into a widely adopted payments infrastructure provider that serves clients in more than 200 countries and territories.
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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Payoneer Global Inc. (NASDAQ: PAYO), the global financial technology company powering business growth across borders, will report its First Quarter 2026 financial results on Thursday, May 7, 2026, before the market opens. Senior management will also host a conference call and earnings webcast to discuss financial results at 8:30 a.m. Eastern Time the same day. A live webcast and replay of the event will be available on the Payoneer Investor Relations website at https://investor.payoneer.com.
About Payoneer
Payoneer is the financial platform for cross-border business and global payments. Payoneer empowers millions of businesses with the financial tools and services they need to grow and transact globally with confidence. We make it easier for SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid across borders, manage their funds across multiple currencies, and grow their businesses.
The market expects Payoneer Global Inc. (PAYO - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -20%.
Revenues are expected to be $253.78 million, up 2.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.08% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Payoneer Global?For Payoneer Global, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -52.73%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Payoneer Global will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Payoneer Global would post earnings of $0.06 per share when it actually produced earnings of $0.05, delivering a surprise of -16.67%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Payoneer Global doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Financial Transaction Services industry, Global Payments (GPN - Free Report) , is soon expected to post earnings of $2.82 per share for the quarter ended March 2026. This estimate indicates no change from the year-ago quarter. Revenues for the quarter are expected to be $2.82 billion, up 28% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Global Payments has been revised 0.6% down to the current level. Nevertheless, the company now has an Earnings ESP of -2.39%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Global Payments will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
11% increase in revenue ex. interest and strong profitability
44% B2B volume growth reflects acceleration across every major region
Increases 2026 guidance
, /PRNewswire/ -- Payoneer Global Inc. ("Payoneer" or the "Company") (NASDAQ: PAYO), the global financial technology company powering business growth across borders, today reported financial results for its first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights
($ in mm unless otherwise noted)
1Q 2025
2Q 2025
3Q 2025
4Q 2025
1Q 2026
YoY Change
Revenue ex. interest income
$188.6
$202.3
$211.4
$218.9
$210.1
11 %
Interest income
58.0
58.3
59.5
55.8
51.5
(11) %
Revenue
$246.6
$260.6
$270.9
$274.7
$261.6
6 %
Transaction costs as a % of revenue
16.0 %
15.6 %
15.7 %
15.6 %
13.5 %
(250) bps
Net income
$20.6
$19.5
$14.1
$19.0
$19.6
(5) %
Adjusted EBITDA
65.4
66.4
71.3
68.5
69.4
6 %
Adjusted EBITDA ex. interest income
7.5
8.1
11.7
12.8
17.9
140 %
Operational Metrics
Volume ($bn)
$19.7
$20.7
$22.3
$24.8
$22.8
16 %
Average Revenue Per User (ARPU)1
$ 439
$ 452
$ 471
$ 488
$513
17 %
Revenue as a % of volume ("Take Rate")
125 bps
126 bps
121 bps
111 bps
115 bps
(10) bps
SMB customer take rate2
119 bps
120 bps
121 bps
113 bps
120 bps
1 bp
1.
Please refer to "Additional Information and Definitions" for a description of ARPU.
2.
SMB customer take rate represents revenue from SMBs who sell on marketplaces, B2B SMBs, and Checkout (previously known as Merchant Services), divided by the associated volume from each respective channel.
"In Q1 we delivered acceleration across major KPIs: revenue growth ex. interest accelerated to 11%, B2B volume growth more than doubled to 44%, and we delivered another quarter of significant core profitability expansion. We are driving broad-based momentum across our business, supported by differentiated assets that compound as we scale. We have infrastructure built on years of investment and innovation, network effects that strengthen as volumes grow, and platform depth that allows us to meet the needs of how our customers operate globally.
We're a profitable, scaled platform in a multi-trillion-dollar B2B market that's still in the early innings of digitization, and our strong Q1 results demonstrate we're capturing share. We are executing consistently, moving fast where we see opportunities, and building a business that's not just larger, but structurally more valuable, with deeper strategic advantages and stronger customer relationships."
John Caplan, Chief Executive Officer
First Quarter 2026 Business Highlights (unless otherwise noted)
Revenue excluding interest income grew 11% year-over-year, driven by 16% volume growth led by a significant acceleration in B2B. SMB customer revenue of $189 million grew 12% year-over-year, reflecting: SMBs that sell on marketplaces revenue of $115 million, up 4% year-over-year. B2B SMBs revenue of $64 million, up 23% year-over-year. Checkout revenue of $10 million, up 46% year-over-year. B2B volume growth accelerated significantly to 44% year-over-year driven by strong growth in China, EMEA and APAC. Strong enterprise payouts momentum continued with 28% year-over-year volume growth. 17% growth in ARPU, and 22% growth in ARPU excluding interest income, the seventh consecutive quarter of 20%+ growth in ARPU excluding interest income. 1bp of SMB customer take rate expansion driven by mix shift towards higher yield products and services and the impact of our fee and monetization initiatives. $7.6 billion of customer funds (including both short-term and long-term funds) as of March 31, 2026. Customer funds growth of 15% year-over-year partially offset the impact of lower interest rates on year-over-year interest income. Significant year-over-year increase in share repurchases, with $74 million in the first quarter at a weighted average price of $5.16, vs $17 million in Q1 2025. Announced a strategic collaboration with FundPark, a fintech that provides financing solutions that help e-commerce businesses in Hong Kong accelerate their global business expansion. 2026 Outlook
"We begin 2026 with strong momentum. Revenue ex. interest is accelerating, robust growth in our B2B franchise is driving SMB take rate expansion, execution against our upmarket strategy is gaining traction and contributed to a seventh consecutive quarter of 20%+ growth in ARPU ex. interest, and core business profitability increased substantially. We're unlocking significant operating leverage while making meaningful investments, including in stablecoin and agentic AI, that we believe will support our durable, profitable growth.
We are increasing our full year 2026 guidance, reflecting $900-$940 million in revenue ex. interest and $200 million in interest income. We expect adjusted EBITDA1 of $285-$295 million. Our business fundamentals are strong, our strategic initiatives are working, and we're well-positioned to capitalize on the significant opportunity ahead of us."
Bea Ordonez, Chief Financial Officer
2026 guidance is as follows:
Revenue
$1,100 million - $1,140 million
Transaction costs
~15.0% of revenue
Adjusted EBITDA1
$285 million to $295 million
1.
The Company cannot reconcile its expected adjusted EBITDA to expected net income under "2026 Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, including income taxes and other financial (income) expense, net. Such unavailable information could have a significant impact on the Company's GAAP financial results. Please refer to "Financial Information; Non-GAAP Financial Measures" below for a description of the calculation of adjusted EBITDA.
Webcast
Payoneer will host a live webcast of its earnings on a conference call with the investment community beginning at 8:30 a.m. ET today, May 7, 2026. To access the webcast, go to the investor relations section of the Company's website at https://investor.payoneer.com. A replay will be available on the investor relations website following the call.
About Payoneer
Payoneer is the financial platform for cross-border business and global payments. Payoneer empowers millions of businesses with the financial tools and services they need to grow and transact globally with confidence. We make it easier for SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid across borders, manage their funds across multiple currencies, and grow their businesses.
Forward-Looking Statements
This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer's future financial or operating performance. For example, projections of future revenue, transaction costs and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "plan," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as Israel's and the United States' conflicts in the Middle East, and other economic, business and/or competitive factors, such as changes in global trade policies (including the imposition of tariffs); (3) changes in the assumptions underlying our financial estimates; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer's Annual Report on Form 10-K for the period ended December 31, 2025 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.
Some of the financial information and data contained in this press release, such as adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). Payoneer uses certain non-GAAP measures to compare Payoneer's performance to that of prior periods for budgeting and planning purposes. Payoneer believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Payoneer's results of operations. Payoneer's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Payoneer does not recommend the sole use of these non-GAAP measures to assess its financial performance. Payoneer management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Payoneer's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review Payoneer's financial statements, which are included in Payoneer's Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequent Quarterly Reports on Form 10-Q, and not rely on any single financial measure to evaluate Payoneer's business.
Non-GAAP measures include the following items:
Adjusted EBITDA: We provide adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude, as applicable: M&A related expense (income), stock-based compensation expenses, restructuring charges, loss (gain) from change in fair value of warrants and warrant repurchase/redemption, other financial expense (income), net, income taxes, and depreciation and amortization.
Other companies may calculate the above measure differently, and therefore Payoneer's measures may not be directly comparable to similarly titled measures of other companies.
Additional Information and Definitions
In this earnings release, we reference volume, which is an operational metric. Volume refers to the total dollar value of transactions successfully completed or enabled by our platform, not including orchestration transactions. For a customer that both receives and later sends payments, we count the volume only once. Note: orchestration transactions ceased in 2024 and were related to our 2020 acquisition of optile GmbH.
We also reference ARPU (Average Revenue Per User), which is defined as the Revenue from Active Customers divided by the number of Active Customers over the period in which the Revenue was earned. Active Customers for these purposes are defined as Payoneer accountholders with at least 1 financial transaction over the period. Revenue from Active Customers represents revenue attributed to Active Customers based on their use of the Payoneer platform, including interest income earned from their balances, and excluding revenues unrelated to their activities.
Investor Contact:
Michelle Wang
[email protected]
Media Contact:
Angela Sullivan
[email protected]
TABLE - 1
PAYONEER GLOBAL INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended
March 31,
2026
2025
Revenues
$
261,595
$
246,617
Transaction costs
35,202
39,349
Other operating expenses
40,011
41,658
Research and development expenses
43,326
37,271
Sales and marketing expenses
58,112
54,726
General and administrative expenses
36,007
29,904
Depreciation and amortization
18,916
14,390
Total operating expenses
231,574
217,298
Operating income
30,021
29,319
Financial expense:
Other financial expense, net
812
1,550
Financial expense, net
812
1,550
Income before income taxes
29,209
27,769
Income taxes
9,641
7,192
Net income
$
19,568
$
20,577
Other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale debt securities, net
(8,351)
7,239
Tax benefit (expense) on unrealized gain (loss) on available-for-sale debt securities, net
1,902
(1,605)
Unrealized loss on cash flow hedges, net
(2,284)
(1,787)
Tax benefit on unrealized loss on cash flow hedges, net
446
327
Unrealized gain on interest rate floor, net
2,154
6,021
Tax expense on unrealized gain on interest rate floor, net
(613)
(1,276)
Foreign currency translation adjustments
(111)
(169)
Other comprehensive income (loss)
(6,857)
8,750
Comprehensive income
$
12,711
$
29,327
Per Share Data
Net income per share attributable to common stockholders — Basic earnings per
share
$
0.06
$
0.06
— Diluted earnings per share
$
0.06
$
0.05
Weighted average common shares outstanding — Basic
345,342,308
362,979,571
Weighted average common shares outstanding — Diluted
350,470,788
382,215,129
Disaggregation of revenue
The following table presents revenue recognized from contracts with customers as well as revenue from other sources:
(Unaudited)
Three months ended
March 31,
2026
2025
Revenue recognized at a point in time
$
206,899
$
185,333
Revenue recognized over time
1,152
930
Revenue from contracts with customers
$
208,051
$
186,263
Interest income on customer balances
$
51,537
$
57,972
Capital advance income
2,007
2,382
Revenue from other sources
$
53,544
$
60,354
Total revenues
$
261,595
$
246,617
The following table presents the Company's revenue disaggregated by primary regional market, with revenues being attributed to the country (in the region) in which the billing address of the transacting customer is located, with the exception of global bank transfer revenues, where revenues are disaggregated based on the billing address of the transaction funds source.
(Unaudited)
Three months ended
March 31,
2026
2025
Primary regional markets
Greater China(1)
$
86,616
$
84,896
Europe, Middle East, and Africa(2)
64,751
58,893
Asia-Pacific(2)
58,185
51,260
Latin America(2)
26,047
27,873
North America(3)
25,996
23,695
Total revenues
$
261,595
$
246,617
1.
Greater China is inclusive of mainland China, Hong Kong, Macao and Taiwan.
2.
No single country included in any of these regions generated more than 10% of total revenue.
3.
The United States is the Company's country of domicile. Of North America revenues, the U.S. represents $25,123 and $22,624 during the three months ended March 31, 2026 and 2025
TABLE - 2
PAYONEER GLOBAL INC.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED)
(U.S. dollars in thousands)
Three months ended
March 31,
2026
2025
Net income
$
19,568
$
20,577
Depreciation and amortization
18,916
14,390
Income taxes
9,641
7,192
Other financial expense, net
812
1,550
EBITDA
48,937
43,709
Stock based compensation expenses(1)
18,524
18,755
M&A related expenses(2)
478
337
Restructuring charges(3)
1,509
2,630
Adjusted EBITDA
$
69,448
$
65,431
Three months ended,
Mar. 31, 2025
June 30, 2025
Sept. 30, 2025
Dec. 31, 2025
Mar. 31, 2026
Net income
$
20,577
$
19,480
$
14,123
$
19,012
$
19,568
Depreciation and amortization
14,390
15,553
16,140
19,542
18,916
Income taxes
7,192
10,370
16,388
8,446
9,641
Other financial expense, net
1,550
227
5,836
1,466
812
EBITDA
43,709
45,630
52,487
48,466
48,937
Stock based compensation expenses(1)
18,755
20,059
17,799
16,491
18,524
M&A related expenses(2)
337
736
981
1,339
478
Restructuring charges(3)
2,630
—
—
2,243
1,509
Adjusted EBITDA
$
65,431
$
66,425
$
71,267
$
68,539
$
69,448
1.
Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
2.
Amounts relate to M&A-related third-party fees, including related legal, consulting and other expenditures. For the three months ended March 31, 2026, $0.5 million of these expenses related to the acquisition of Boundless and the non-recurring fair value adjustment of the Skuad contingent consideration liability discussed in Note 3 to our condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q. Amounts for the three months ended March 31, 2025 include $0.3 million in non-recurring fair value adjustment of the Skuad contingent consideration liability discussed in Note 3 to our condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q.
3.
Represents non-recurring costs related to severance and other employee termination benefits.
TABLE - 3
PAYONEER GLOBAL INC.
EARNINGS PER SHARE
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended March 31,
2026
2025
Numerator:
Net income
$
19,568
$
20,577
Denominator:
Weighted average common shares outstanding —
Basic
345,342,308
362,979,571
Add:
Dilutive impact of RSUs, ESPP and options to purchase common stock
5,128,480
18,362,026
Dilutive impact of private Warrants
—
873,532
Weighted average common shares — diluted
350,470,788
382,215,129
Net income per share attributable to common stockholders — Basic earnings per
share
$
0.06
$
0.06
Diluted earnings per share
$
0.06
$
0.05
TABLE - 4
PAYONEER GLOBAL INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands, except share and per share data)
March 31,
December 31,
2026
2025
Assets:
Current assets:
Cash and cash equivalents
$
339,365
$
415,537
Restricted cash
4,851
6,090
Customer funds
7,245,415
7,544,541
Accounts receivable (net of allowance of $843 and $501 at March 31, 2026 and
December 31, 2025, respectively)
12,634
10,412
Capital advance receivables (net of allowance of $3,676 at March 31, 2026 and $3,953 at
December 31, 2025)
37,234
43,665
Other current assets
83,969
90,671
Total current assets
7,723,468
8,110,916
Non-current assets:
Property, equipment and software, net
39,739
32,437
Goodwill
86,188
77,785
Intangible assets, net
214,443
208,053
Customer funds
350,000
350,000
Restricted cash
23,561
23,604
Deferred tax assets, net
60,261
56,898
Severance pay fund
867
856
Operating lease right-of-use assets
63,750
62,257
Other assets
35,729
33,783
Total assets
$
8,598,006
$
8,956,589
Liabilities and shareholders' equity:
Current liabilities:
Trade payables
$
41,811
$
44,611
Outstanding operating balances
7,595,415
7,894,541
Other payables
124,637
144,568
Total current liabilities
7,761,863
8,083,720
Non-current liabilities:
Deferred tax liabilities, net
25,455
25,051
Other long-term liabilities
151,613
143,391
Total liabilities
7,938,931
8,252,162
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.01 par value, 380,000,000 shares authorized; no shares were issued
and outstanding at March 31, 2026 and December 31, 2025.
—
—
Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000 shares authorized;
415,278,698 and 411,826,086 shares issued and 337,813,340 and 348,704,315 shares
outstanding at March 31, 2026 and December 31, 2025, respectively.
4,153
4,118
Treasury stock at cost, 77,465,358 and 63,121,771 shares as of March 31, 2026 and
December 31, 2025, respectively.
(443,483)
(368,867)
Additional paid-in capital
912,812
896,294
Accumulated other comprehensive loss
(13,134)
(6,277)
Retained earnings
198,727
179,159
Total shareholders' equity
659,075
704,427
Total liabilities and shareholders' equity
$
8,598,006
$
8,956,589
TABLE - 5
PAYONEER GLOBAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(U.S. dollars in thousands)
March 31,
2026
2025
Cash Flows from Operating Activities
Net income
$
19,568
$
20,577
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
18,916
14,390
Deferred taxes
(1,108)
(2,279)
Stock-based compensation expenses
18,524
18,755
Interest on certificate of deposits
(5,718)
(6,725)
Interest and amortization of premium/discount on investments
401
(2,685)
Net realized (gains) losses on derivative instruments
(94)
117
Foreign currency re-measurement (gain) loss
684
(1,811)
Changes in operating assets and liabilities:
Other current assets
6,802
17,165
Trade payables
(6,750)
(2,883)
Deferred revenue
1,900
358
Accounts receivable, net
(2,187)
2,555
Capital advance extended to customers
(64,160)
(84,078)
Capital advance collected from customers
70,591
95,232
Other payables
(15,154)
(17,108)
Other long-term liabilities
6,603
(781)
Operating lease right-of-use assets
3,139
2,121
Other assets
(126)
796
Net cash provided by operating activities
51,831
53,716
Cash Flows from Investing Activities
Purchase of property, equipment and software
(10,148)
(4,726)
Capitalization of internal use software
(18,619)
(16,067)
Severance pay fund distributions, net
(11)
17
Customer funds in transit, net
(22,319)
(19,742)
Purchases of investments in available-for-sale debt securities
(80,375)
(71,968)
Maturities of investments in available-for-sale debt securities
75,000
64,500
Settlement of cash flow hedges
2,061
—
Cash paid in connection with acquisition, net of cash acquired
(6,479)
—
Net cash used in investing activities
(60,890)
(47,986)
Cash Flows from Financing Activities
Proceeds from issuance of common stock in connection with stock-based compensation plan,
net of taxes paid related to settlement of equity awards and proceeds from employee equity
transactions to be remitted to employees
(2,543)
(4,400)
Outstanding operating balances, net
(301,781)
(385,763)
Receipts of collateral on interest rate derivatives
32,860
25,610
Payments of collateral on interest rate derivatives
(32,680)
(20,140)
Consideration related to previous acquisitions
(6,519)
—
Common stock repurchased
(74,991)
(17,753)
Net cash used in financing activities
(385,654)
(402,446)
Effect of exchange rate changes on cash and cash equivalents
(808)
1,878
Net change in cash, cash equivalents, restricted cash and customer funds
(395,521)
(394,838)
Cash, cash equivalents, restricted cash and customer funds at beginning of period
6,416,707
5,658,210
Cash, cash equivalents, restricted cash and customer funds at end of period
$
6,021,186
$
5,263,372
Supplemental information of investing and financing activities not involving cash flows:
Property, equipment, and software acquired but not paid
$
1,485
$
—
Internal use software capitalized but not paid
$
6,694
$
4,959
Common stock repurchased but not paid
$
1,942
$
—
Right of use assets obtained in exchange for new operating lease liabilities
Payoneer Global Inc. (PAYO - Free Report) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +51.13%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.05, delivering a surprise of -16.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Payoneer Global, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $261.6 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.08%. This compares to year-ago revenues of $246.62 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Payoneer Global shares have lost about 13.5% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Payoneer Global?While Payoneer Global 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 Payoneer Global 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 $0.05 on $266 million in revenues for the coming quarter and $0.26 on $1.11 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, Financial Transaction Services is currently in the top 41% 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.
One other stock from the same industry, Freightos Limited (CRGO - Free Report) , is yet to report results for the quarter ended March 2026.
This company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Freightos Limited's revenues are expected to be $7.47 million, up 7.5% from the year-ago quarter.
CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 SharesMarketBeat
CocaCola Company (The) (NYSE:KO - Get Free Report) EVP Jennifer Mann sold 23,984 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $83.41, for a total value of $2,000,505.44. Following the completion of the transaction, the executive vice president owned 157,400 shares of the company's stock, valued at approximately $13,128,734. The trade was a 13.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
NYSE:KO
Read CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 Shares
2 hours ago
Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,054 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $60.37, for a total transaction of $15,759,829.98. Following the completion of the sale, the insider owned 2,671,855 shares in the company, valued at $161,299,886.35. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.
NYSE:BROS
Read Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in Stock
2 hours ago
Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the transaction, the insider owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.
NYSE:BROS
Read Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of Stock
2 hours ago
Travis Boersma Sells 749,999 Shares of Dutch Bros (NYSE:BROS) StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 749,999 shares of Dutch Bros stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $60.39, for a total transaction of $45,292,439.61. Following the completion of the sale, the chairman owned 2,671,855 shares of the company's stock, valued at $161,353,323.45. This represents a 21.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 750,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the sale, the chairman owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
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Software infrastructure stocks trading under $10 rarely sit in that bucket by accident, but a handful of names in payments, ad-tech, and enterprise AI throw off operating numbers that usually belong to mid-caps. With AI agent adoption pulling cross-border commerce, real-time engagement, and performance advertising into the same conversation, low share prices increasingly look like a window of opportunity. Several of these tickers have turned the corner on profitability or raised full-year guidance.
Here are four software infrastructure stocks trading under $10 worth a closer look on the buy side.
Rezolve AI (NASDAQ: RZLV) Rezolve AI (NASDAQ:RZLV) runs an agentic commerce platform (Brain Commerce, Brain Checkout, brainpowa) for enterprise retailers. Shares closed at $2.81 on May 12, 2026, up 18.07% over the past month and 30.7% over the past year, a meaningful reset for a name with a roughly $1.12 billion market cap.
The bull case starts with Q1 2026: preliminary revenue of $60.00 million, more than the company’s entire $46.80 million FY2025 revenue, against reaffirmed FY2026 guidance of $360 million. Management says it can reach profitability without raising additional equity, and the platform serves 950+ enterprise clients with strategic ties to Microsoft, Google, and Tether. CEO Daniel M. Wagner called the quarter “a major inflection point”, and renewed acquisition interest around the company has added a floor to the narrative.
The risk is real: numbers are preliminary and unaudited, and a sub-$3 share price signals fragility. Even so, the revenue acceleration is hard to ignore.
Payoneer Global (NASDAQ: PAYO) Payoneer Global (NASDAQ:PAYO) provides cross-border payments infrastructure for SMBs and B2B marketplaces. The stock changed hands at $5.12 on May 12, 2026, up 10.34% in the past month on a roughly $1.71 billion market cap.
Q1 2026 revenue ex-interest grew 11% year over year, B2B volume more than doubled to 44%, and ARPU ex-interest expanded 22% for the seventh straight quarter above 20%. Management raised FY2026 guidance to $1.10 billion to $1.14 billion in revenue with adjusted EBITDA of $285 million to $295 million, and repurchased $74 million of stock in the quarter at an average $5.16. CEO John Caplan framed it as “a profitable, scaled platform in a multi-trillion-dollar B2B market that’s still in the early innings of digitization.”
Interest income fell 11% to $51.50 million, but the core business is accelerating, and the buyback signal is loud. The setup favors patient buyers.
Agora (NASDAQ: API) Agora (NASDAQ:API) sells real-time engagement APIs for voice, video, and live streaming and is pushing into conversational and physical AI. Shares finished at $3.87 on May 12, 2026.
Q4 2025 revenue rose 10.7% to $38.16 million, the fifth straight quarter of GAAP profitability, and FY2025 marked Agora’s first full year of profitability since 2018. A Super Bowl live shopping event reached nearly 600,000 peak concurrent viewers with sub-second latency, and the conversational AI engine has more than doubled in usage each quarter since its March 2025 launch. Buybacks have been aggressive, with $143.1 million of a $200 million program already utilized.
China exposure through Shengwang and an 89% net retention rate remain overhangs, but the AI engagement story has tangible adoption data behind it.
Taboola (NASDAQ: TBLA) Taboola (NASDAQ:TBLA) operates a content discovery and performance advertising platform anchored by Realize and Connexity. The stock closed at $5.16 on May 12, 2026, up 54.03% in the last month.
Q1 2026 revenue grew 9.1% to $466.39 million, beating estimates by 2.9%, while free cash flow more than doubled to $90.3 million. Management raised FY2026 guidance to $2.006 billion to $2.062 billion in revenue with adjusted EBITDA of $222 million to $240 million, and Benchmark lifted its price target to $6.50. CEO Adam Singolda said the company is “starting the year strong, exceeding the high end of our guidance across all metrics.”
The headline EPS of $0.20 was inflated by a $77 million one-time legal settlement, and ad-spend macro risk lingers. The underlying cash generation and buyback cadence support the constructive read.
Each of these names carries real execution risk, and the cleanest financials in this group still come with caveats around macro, China exposure, or one-time items. Use the data above as a launchpad for your own research before committing capital.
Payoneer continues as a core global payout infrastructure partner to Upwork, providing wallet and "direct to local bank" payouts for international Upwork customers
, /PRNewswire/ -- Payoneer Global Inc. (NASDAQ: PAYO), the global financial technology company powering business growth across borders, today announced an extension of its strategic partnership with Upwork, the world's human and AI-powered work marketplace, marking 15 years of collaboration supporting the global freelance economy.
Under the renewed agreement, Payoneer will continue to serve as a primary wallet and "Direct to Local Bank" payout partner for Upwork, supporting both existing and new international Upwork customers across Africa, Asia Pacific, Europe, Latin America, and the Middle East—backed by Payoneer's reach across 190 countries and territories.
The collaboration also marks a new phase of joint innovation. Upwork will join Payoneer as a Design Partner to explore stablecoin-enabled payouts to help address rising demand from freelancers seeking faster, more flexible access to funds in Latin America and other emerging markets.
The companies will also partner on leveraging Upwork's global talent pool to support Payoneer's ecosystem of small and medium-sized business (SMB) clients, helping expand access to cross-border talent and business opportunities.
"Our long-standing partnership with Upwork shows what's possible when deep technical and operational alignment, regulatory strength, and global reach come together to simplify cross-border payments for global talent," said Ya Wen, Senior Vice President of Global Marketplaces, Payoneer. "Through the Payoneer global financial stack, Upwork freelancers gain access to the Payoneer Account, global bank transfers, and FX management—benefits they need to grow their businesses across borders."
Payoneer's global financial infrastructure and regulatory footprint help support secure, compliant cross-border payouts at scale across key international markets. The company's platform is built on a network of nearly 100 banks and payment service providers and continues to support innovation in real time payments and global money movement.
This collaboration reinforces Payoneer's broader mission of powering the infrastructure behind global digital commerce, supporting marketplaces, SMBs and entrepreneurs operating across borders.
About Payoneer
Payoneer is the financial platform for cross-border business and global payments. Payoneer empowers millions of businesses with the financial tools and services they need to grow and transact globally with confidence. We make it easier for SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid across borders, manage their funds across multiple currencies, and grow their businesses.
For more information, visit www.payoneer.com.
Media Contact
[email protected]
Forward-Looking Statements
This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer's future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "plan," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as Israel's and the United States' conflicts in the Middle East, and other economic, business and/or competitive factors, such as changes in global trade policies (including the imposition of tariffs); (3) changes in the assumptions underlying our financial estimates; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer's Annual Report on Form 10-K for the period ended December 31, 2025 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Payoneer Global Inc. (NASDAQ: PAYO), the global financial technology company powering business growth across borders, today announced that John Caplan, Chief Executive Officer, will present at the William Blair 46th Annual Growth Stock Conference on Tuesday, June 2, 2026 beginning at approximately 12:20 pm ET.
Investors and interested parties can access the live webcast and replay of the presentation by visiting the Company's investor relations website at https://investor.payoneer.com/
About Payoneer
Payoneer is the financial platform for cross-border business and global payments. Payoneer empowers millions of businesses with the financial tools and services they need to grow and transact globally with confidence. We make it easier for SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid across borders, manage their funds across multiple currencies, and grow their businesses.
Investor Relations:
Michelle Wang
[email protected]
Canadian payments company Nuvei is in talks to acquire Payoneer for approximately $2.7 billion, Reuters reported Tuesday (June 9).
The purchase price includes Payoneer’s cash, implying an enterprise value of roughly $2.3 billion, according to the report, which cited unnamed sources who said a deal could be signed within the coming days.
Reached by PYMNTS, Payoneer declined to comment on the report. Nuvei did not respond to PYMNTS’ request for comment.
A purchase would meld Nuvei’s payment acceptance business with New York-based Payoneer’s networks for transmitting funds to suppliers, freelancers and sellers, the report said. It would also give Nuvei more of a presence in emerging markets and access to Payoneer’s large online marketplace customers, which include Amazon, Walmart and eBay.
Payments firms are increasingly looking to scale through mergers and acquisitions, along with exposure to faster-growing segments such as cross-border and B2B payments, as growth in traditional payment processing slows, according to the report.
Last week, cross-border payments company OpenFX announced plans to acquire Dutch payments infrastructure firm Embed. The company said the deal offers OpenFX its first “regulated presence” in the European Economic Area and the United Kingdom, as Embed holds licenses in all EEA states and the U.K.
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“As we continue to pursue our mission to bring modern financial rails to the entire world, we are proud to be joined by the team at Embed,” OpenFX Founder Prabhakar Reddy said in a June 2 news release. “They have built a spectacular product that will help grow our capabilities, particularly in Europe.”
PYMNTS took a closer look at the acquisition trend in the FinTech space in April, following a series of deals by Stripe, Mastercard, Flutterwave and Airwallex targeting areas like billing, settlement, data and licensing.
Each of these categories connects to a “control point within the transaction lifecycle,” the report said, while the repetition across acquisitions demonstrates that companies are not experimenting. Rather, they’re putting together the same set of capabilities to control how transactions are constructed from beginning to end. Payments remain key, but they are no longer sufficient by themselves.
“The pace of acquisitions suggests that firms are moving quickly to secure these capabilities while they remain available,” the report said. “Building them internally would require time and coordination across multiple systems. Acquisitions provide a direct path to integration. The result is a market that is organizing around platform control.”
Payoneer Global (PAYO +0.89%), a cross-border payments platform, closed Tuesday at $6.39, up 24.32%. The stock jumped after reports that Canadian payments firm Nuvei is in advanced talks to acquire Payoneer for about $2.7 billion. Trading volume reached 51.7 million shares, about 1,005% above its three-month average of 4.7 million shares. Payoneer Global IPO'd in 2020 and has fallen 34% since going public.
How the markets moved todayThe S&P 500 slipped 0.26% to finish Tuesday at 7,386, while the Nasdaq Composite lost 0.97% to close at 25,679. Within the financial technology sector, rival PayPal closed at $41.46, up 0.48%, as investors weighed ongoing digital payments adoption alongside deal speculation around Payoneer Global.
What this means for investorsJust two years after private equity firm Advent International acquired Nuvei for $6.3 billion, the acquiree is trying to make a purchase of its own, offering $2.7 billion for Payoneer Global. However, even after Payoneer Global’s stock jumped 24% today, its market cap of $2.15 billion still sits 25% below Nuvei’s offer -- so the market isn’t fully convinced the deal will reach the finish line just yet.
Payoneer specializes in digital payments and cross-border transfers and would seem to fit in nicely alongside Nuvei’s primary business of payment acceptance solutions for merchants. Shareholders may be in a tough spot, though, as Payoneer’s revenue growth has slowed dramatically, so it may not feel like a great ten-year holding right now, but Nuvei’s acquisition price isn’t much higher than the stock’s 52-week high.
Josh Kohn-Lindquist has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.
Yes, payments fintech is consolidating. Card networks want more control over card issuance, processors are chasing small-business customers, and private equity is hunting for profitable software companies selling at a massive discount from their 2021 peaks. Three beaten-down merchant and small and medium-sized business payments names stand out as plausible takeover targets. No deals have been announced, and every scenario below is speculative.
We scored each name against:
Market capitalization relative to revenue Cash runway and free cash flow profile Growth trajectory and strategic owner need Founder or CEO transitions Active share buybacks Credible acquirers with obvious stack fit Here is the countdown from least to most likely to be acquired.
3. Payoneer Global Payoneer Global (NASDAQ: PAYO) is the largest of the three by market value at roughly $2.2 billion, making it the least digestible. Its Q1 revenue of $261.6 million grew 6.1% year over year and exceeded consensus estimates by 2.6%, but revenue excluding interest grew 11%, and B2B volume jumped 44%.
The strategic story dampens the takeover case. Payoneer is consolidating itself, having acquired Boundless for $13 million in January, picked up Easylink in China, and applied for an OCC national trust bank charter to build stablecoin infrastructure. With $7.6 billion in customer float and a Bridge partnership, Payoneer looks more like an independent platform than a target. Heavy insider selling complicates the takeover case: CEO John Caplan, the CFO, and the Chief Legal Officer collectively sold 172,263 shares over six weeks at prices between $4.60 and $5.17.
Payoneer shares last closed at $6.67, which is up 18.7% year to date.
2. Marqeta Marqeta (NASDAQ: MQ | MQ Price Prediction) is the smallest of the three at about $1.6 billion in market cap and has crossed a profitability inflection that makes it far more digestible. It delivered Q1 GAAP net income of $7.83 million versus a year-ago loss, with EPS of $0.02 beating the −$0.01 consensus. Revenue rose 19.2% to $165.80 million, and total processing volume climbed 33% to $112.36 billion.
CEO Mike Milotich said the quarter “demonstrate[s] the power of our platform at scale as we delivered on our promise of achieving GAAP Net Income profitability.” Management bought back $391.4 million of stock in FY2025 and another $39.21 million in Q1. Marqeta is a pure-play card issuing rail with certification in 40+ countries, a Mastercard One Credential partnership, and embedded finance design wins at Ramp and Sezzle. That asset is precisely what Visa, Stripe, Adyen, or a larger bank might covet.
The stock closed at $3.97, down 30.1% over the past year, and trades at a forward multiple of 200x, but EV/revenue is just 1.5x. Insider June 1 vesting activity was compensation-driven rather than discretionary buying, which softens the takeover case.
1. Lightspeed Commerce Lightspeed Commerce (NYSE: LSPD) is the cleanest takeover setup of the three. The market cap is $1.3 billion, yet book value per share is $10.77 against a stock price of $9.53. The price-to-book ratio is 0.886, meaning the market values the entire equity below the carrying value of its assets. Shares are down 21.0% over the past year and about the same year to date.
Founder Dax Dasilva has returned to lead a multi-year transformation, and portfolio cleanup is underway. Lightspeed divested its Upserve U.S. hospitality unit to Skyview Equity for up to $81 million, a move that often precedes a full sale. The prior normal course issuer bid (NCIB) was fully exhausted at 9,013,953 shares at a weighted average of CAD$12.86, and a renewed $400 million buyback runs through May 2027. Q4 revenue of $290.80 million grew 14.75%, gross payment volume reached $9.6 billion, and FY2026 free cash flow turned positive at $18.20 million. Dasilva called it “a resounding success” with growth engines adding roughly 3,200 net customer locations.
A unified POS and payments stack at sub book valuation is exactly what Block, Shopify, Fiserv, or Global Payments would target, and PE rollups have the capital to act.
The Cleanest Setup Lightspeed checks every box. It trades below book value, the founder is mid-transformation with a finite runway, non-core assets have been sold, the buyback is sized aggressively, and the dual-listed NYSE and TSX structure gives a strategic acquirer a clean path. Marqeta and Payoneer carry strategic value, but Lightspeed is the cleanest takeover setup of the three for 2026.
On April 28, 2026, we present a detailed DCF analysis for PNC Financial Services Group Inc (PNC). The company has shown a price performance of +44.4% over the p
New payments capability builds on PNC's Claim Payments & Remittances platform
, /PRNewswire/ -- PNC Bank today announced the expansion of its Treasury Management insurance payments offering to support property and casualty insurance payments. This offering helps insurers streamline complex, multi-party claims payments with greater speed, flexibility and transparency.
The enhanced solution builds on PNC's existing Claim Payments & Remittances (CPR) platform, which has supported healthcare-related insurance payments since 2018. Through a continued collaboration with ECHO Health, Inc., PNC is extending those proven capabilities to meet the distinct needs of property and casualty insurers.
"Insurance payments don't follow a one-size-fits-all model, especially in property and casualty claims," said Tom Lang, head of Treasury Management Product Operations at PNC Bank. "By combining ECHO's best-in-class claims technology with PNC's payment rails, we're providing insurers a more efficient way to deliver payments and remittance details to every party involved in a claim — from policyholders to body shops and contractors."
Property and casualty claims often involve a broad network of recipients, including individual policyholders. These recipients may have different preferences and requirements for how they receive payments and related information. PNC's expanded CPR solution enables insurers to:
Deliver payments to both businesses and individuals Support multiple electronic payment methods, including instant payment options Provide remittance details in formats tailored to each recipient's needs Manage payments for both medical and non-medical claims through a single platform "ECHO has long helped insurers simplify claims payments, and our work with PNC extends that value even further," said Tom Davis, chief strategy officer for ECHO Health, Inc. "Together, we're enabling insurers to deliver faster, more transparent payments while maintaining the control and reliability they expect from a leading financial institution."
PNC's property and casualty insurance payments solution is designed for large national and regional insurers, including those managing high-claim volumes and complex vendor networks. By offering an alternative backed by a regulated financial institution, PNC provides insurers with greater choice and confidence in a market traditionally served by a limited number of providers.
About ECHO
ECHO® delivers market-leading payment solutions by removing complexity and cost from every transaction. Our innovative solutions are backed by over 25 years of experience solving diverse payment challenges. These proven solutions address the needs of insurers, consumers, technology partners, and over 1.6M service providers that comprise the ECHO Payment Network, while driving customer satisfaction with payment choice for all payees. We securely distribute more than $220B in payments and save our customers over $1B each year with seamless, flexible integrations. ECHO is payments simplified. For more information about ECHO, please visit us at www.echohealthinc.com.
About PNC Bank
PNC Bank, National Association is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
Concurrent Investment Advisors LLC lifted its stake in The PNC Financial Services Group, Inc (NYSE:PNC – Free Report) by 43.6% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 9,400 shares of the financial services provider’s stock after buying an additional 2,853 shares during the period. Concurrent Investment Advisors LLC’s holdings in The PNC Financial Services Group were worth $1,962,000 at the end of the most recent quarter.
Other hedge funds have also recently modified their holdings of the company. Quarry LP purchased a new position in shares of The PNC Financial Services Group in the 3rd quarter valued at $25,000. Beacon Financial Strategies CORP purchased a new position in shares of The PNC Financial Services Group in the 4th quarter valued at $35,000. Westfuller Advisors LLC acquired a new stake in The PNC Financial Services Group during the 3rd quarter worth $34,000. JPL Wealth Management LLC acquired a new stake in The PNC Financial Services Group during the 3rd quarter worth $37,000. Finally, Financial Life Planners acquired a new stake in The PNC Financial Services Group during the 3rd quarter worth $39,000. 83.53% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth Several brokerages have issued reports on PNC. Wells Fargo & Company raised their price objective on shares of The PNC Financial Services Group from $252.00 to $264.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 20th. JPMorgan Chase & Co. lowered their price objective on shares of The PNC Financial Services Group from $251.00 to $237.50 and set an “overweight” rating on the stock in a research report on Tuesday, April 7th. Jefferies Financial Group began coverage on shares of The PNC Financial Services Group in a research report on Thursday, March 26th. They set a “buy” rating and a $250.00 price objective on the stock. TD Cowen raised their price objective on shares of The PNC Financial Services Group from $250.00 to $260.00 and gave the stock a “buy” rating in a research report on Tuesday, January 20th. Finally, Morgan Stanley raised their price objective on shares of The PNC Financial Services Group from $263.00 to $267.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, The PNC Financial Services Group presently has an average rating of “Moderate Buy” and a consensus target price of $241.69.
Read Our Latest Research Report on PNC
Insider Activity at The PNC Financial Services Group In related news, CEO William S. Demchak sold 50,000 shares of the business’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $230.88, for a total transaction of $11,544,000.00. Following the sale, the chief executive officer owned 554,274 shares of the company’s stock, valued at approximately $127,970,781.12. The trade was a 8.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Alexander E. C. Overstrom sold 2,500 shares of the business’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $233.91, for a total transaction of $584,775.00. Following the sale, the executive vice president directly owned 21,120 shares in the company, valued at approximately $4,940,179.20. This represents a 10.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 64,186 shares of company stock worth $14,840,973 in the last ninety days. Corporate insiders own 0.38% of the company’s stock.
The PNC Financial Services Group Stock Down 0.2% Shares of NYSE:PNC opened at $220.83 on Wednesday. The company has a market cap of $89.07 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 0.92 and a beta of 0.96. The firm’s 50-day simple moving average is $214.34 and its 200-day simple moving average is $208.12. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.00. The PNC Financial Services Group, Inc has a fifty-two week low of $156.70 and a fifty-two week high of $243.94.
The PNC Financial Services Group (NYSE:PNC – Get Free Report) last issued its earnings results on Wednesday, April 15th. The financial services provider reported $4.32 earnings per share for the quarter, beating the consensus estimate of $3.92 by $0.40. The business had revenue of $6.17 billion for the quarter, compared to the consensus estimate of $6.21 billion. The PNC Financial Services Group had a net margin of 20.89% and a return on equity of 12.10%. The business’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.51 earnings per share. As a group, equities research analysts predict that The PNC Financial Services Group, Inc will post 18.93 earnings per share for the current year.
The PNC Financial Services Group Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 5th. Stockholders of record on Tuesday, April 14th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Tuesday, April 14th. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The PNC Financial Services Group’s payout ratio is presently 39.51%.
About The PNC Financial Services Group (Free Report)
The PNC Financial Services Group, Inc is a diversified financial services company headquartered in Pittsburgh, Pennsylvania, offering a broad range of banking, lending, investment and wealth management services. PNC operates a national banking franchise with a significant retail branch network and dedicated capabilities for commercial, institutional and government clients. Its services are designed to serve individuals, small businesses, corporations and public sector entities across the United States.
PNC’s core business activities include consumer and business banking, residential mortgage lending, corporate and institutional banking, asset management and wealth advisory services.
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