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HOUSTON--(BUSINESS WIRE)--Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Partnership") today announces its financial and operating results for the first quarter of 2026.

Financial and Operational Highlights

Mineral and royalty production for the first quarter of 2026 equaled 35.9 MBoe/d, an increase of 16% from the prior quarter; total production, including working-interest volumes, was 37.0 MBoe/d for the quarter. Net income for the first quarter was $13.3 million, and Adjusted EBITDA for the quarter totaled $87.0 million. Distributable cash flow was $76.5 million for the first quarter. Black Stone announced a distribution of $0.30 per unit with respect to the first quarter of 2026. Distribution coverage for all units was 1.20x. Total debt at the end of the first quarter was $187.0 million; as of May 1, 2026, total debt was $164.0 million with approximately $10.0 million of cash on hand. Management Commentary

“During the first quarter, we continued to execute across our commercial initiatives, building on the momentum established in 2025,” said Fowler Carter, Co-CEO and President of Black Stone Minerals. “Since inception, we have deployed over $250 million through our mineral acquisition program to enhance our long-term development position in the expanding Haynesville and Bossier play. In the Shelby Trough, operators under our development agreements continue to progress activity across multiple programs. Throughout the broader portfolio we had another strong quarter of leasing activity and remain encouraged by continued high-interest development in the Permian. As activity continues to ramp up across our core areas, we remain focused on execution and positioning the portfolio for sustained production and cash flow growth over time.”

Taylor DeWalch, Co-CEO and President added “We delivered a strong first quarter, with production exceeding expectations. Production outperformance was driven primarily by increased natural gas activity in the Louisiana Haynesville and Shelby Trough and strong oil production in the Permian. Results reflected significant commodity price volatility, with natural gas realizations impacted by February regional pricing dislocations from Winter Storm Fern and oil pricing in March reflecting the onset of geopolitical uncertainty. While we are in the early innings of initiating development under multiple agreements in the Haynesville and Bossier expansion play, we remain on track for meaningful production growth through 2026 and beyond. The continued increase in activity across our core areas reinforces a constructive long-term outlook.”

Quarterly Financial and Operating Results

Production

Black Stone reported mineral and royalty volumes of 35.9 MBoe/d (77% natural gas) for the first quarter of 2026, compared to 30.9 MBoe/d for the fourth quarter of 2025 and 34.2 MBoe/d for the first quarter of 2025.

Working-interest production was 1.1 MBoe/d for the first quarter of 2026, 1.2 MBoe/d in the fourth quarter of 2025, and 1.3 MBoe/d for the first quarter of 2025.

Total reported production averaged 37.0 MBoe/d (97% mineral and royalty, 76% natural gas) for the first quarter of 2026, compared to 32.1 MBoe/d and 35.5 MBoe/d for the fourth quarter of 2025 and the first quarter of 2025, respectively.

Realized Prices, Revenues, and Net Income

The Partnership’s average realized price per Boe, excluding the effect of derivative settlements, was $35.30 for the first quarter of 2026. This is an increase of 15% from $30.63 per Boe in the fourth quarter of 2025 and a 4% increase from $33.94 in the first quarter of 2025.

Black Stone reported oil and gas revenue of $117.5 million (46% oil and condensate) for the first quarter of 2026, an increase of 30% from $90.5 million in the fourth quarter of 2025. Oil and gas revenue in the first quarter of 2025 was $108.3 million.

The Partnership reported a loss on commodity derivative instruments of $64.6 million for the first quarter of 2026, composed of a $12.2 million loss from realized settlements and a non-cash $52.3 million unrealized loss due to the change in value of Black Stone’s derivative positions during the quarter. Black Stone reported a gain of $23.5 million and a loss of $56.0 million on commodity derivative instruments for the fourth quarter of 2025 and the first quarter of 2025, respectively.

Lease bonus and other income was $6.4 million for the first quarter of 2026. Lease bonus and other income for the fourth quarter of 2025 and the first quarter of 2025 was $4.7 million and $6.9 million, respectively.

The Partnership reported net income of $13.3 million for the first quarter of 2026, compared to net income of $72.2 million in the preceding quarter. For the first quarter of 2025, the Partnership reported net income of $15.9 million.

Adjusted EBITDA and Distributable Cash Flow

Adjusted EBITDA for the first quarter of 2026 was $87.0 million, which compares to $76.7 million in the fourth quarter of 2025 and $87.0 million in the first quarter of 2025. Distributable cash flow for the first quarter of 2026 was $76.5 million. For the fourth quarter of 2025 and the first quarter of 2025, distributable cash flow was $66.8 million and $78.5 million, respectively.

Financial Position and Activities

As of March 31, 2026, Black Stone had $11.6 million in cash, with $187.0 million drawn under its credit facility. As of May 1, 2026, the Partnership had approximately $10.0 million in cash, with $164.0 million outstanding under the credit facility. Black Stone is in compliance with all financial covenants associated with its credit facility.

Subsequent to quarter-end, the borrowing base under the credit facility was reaffirmed at $580.0 million and the Partnership elected to maintain total commitments under the credit facility at $375.0 million. The Partnership's next regularly scheduled borrowing base redetermination is set for October 2026.

First Quarter 2026 Distributions

As previously announced, the Board approved a cash distribution of $0.30 for each common unit attributable to the first quarter of 2026, representing a distribution coverage ratio of approximately 1.20x. The distribution will be paid on May 15, 2026, to unitholders of record as of the close of business on May 8, 2026.

Activity Update

Development Activity

During the first quarter, Adamas Energy (formerly Aethon Energy) was operating three rigs on Black Stone's Angelina and San Augustine acreage in the Shelby Trough. Adamas’s development program remains on track, with 4 wells spud in the first quarter of 2026 as part of the current program year ending June 30, 2026, an additional 4 wells expected in the second quarter of 2026 to complete that program year, and 10 more wells expected in the second half of 2026 as part of the next program year. Adamas successfully turned to sales 7 gross (0.5 net) wells during the first quarter and expects to turn to sales 12 gross (1.2 net) wells during the remainder of 2026.

The Partnership's agreement with Revenant Energy covers 270,000 gross acres in which we currently control approximately 122,000 undeveloped net acres. Revenant is obligated to drill a minimum of 6 wells in 2026, increasing annually to a minimum of 25 wells per year by 2030. Black Stone also secured a non-operated working interest partner for the development. In November 2025, the agreement was amended to maintain the 6-well commitment for 2026 and convert future commitments to completed gross lateral-foot targets at one well per 7,000 lateral feet, allowing longer laterals while keeping overall development levels unchanged. Revenant spud 2 wells in the first quarter of 2026, one of which experienced a loss of well control incident in April 2026. Black Stone is currently assessing the potential impact of this incident on Revenant’s first year development program and related well commitments.

In November 2025, the Partnership entered into a 220,000 gross acre development agreement with Caturus Energy, which aims to push the Shelby Trough westward towards the Western Haynesville. Activity will begin with approximately 2 gross (0.2 net) wells in the second half of 2026 and ramp up to approximately 12 gross (0.8 net) wells annually by 2031, supported by minimum annual lateral-foot requirements, all net to our interest. In addition to the 2 gross wells in 2026, Caturus plans to drill a pilot well stepping out towards Houston County, consistent with the terms of the agreement.

In the Permian Basin, Coterra Energy continues to develop Black Stone acreage in Culberson County, Texas. During the first quarter, 17 gross wells (0.6 net) associated with this development were turned to sales. A separate development by another Permian operator of 25 gross (1.9 net) wells in the southern Delaware Basin is expected to come online in the second half of 2026 and first half of 2027.

Acquisition Activity

The Partnership continues to acquire bolt-on acreage in multiple contractual development programs with significant inventory at high net interests across San Augustine, Nacogdoches, Angelina, Cherokee, Houston, and Trinity counties.

In the first quarter of 2026, Black Stone acquired $11.5 million of additional (primarily non-producing) mineral and royalty interests. From September 2023 through the end of April 2026, the Partnership has completed $251.0 million of mineral and royalty acquisitions, primarily in the expanding Shelby Trough area. Black Stone’s commercial strategy going forward includes the continuation of meaningful, targeted mineral and royalty acquisitions to complement the Partnership's existing positions.

Hedge Position

Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2026, and 2027. The Partnership's hedge position as of May 1, 2026, is summarized in the following tables:

Oil Hedge Position

Oil Swap

Oil Swap Price

MBbl

$/Bbl

2Q26

615

$64.39

3Q26

615

$64.39

4Q26

615

$64.39

1Q27

420

$61.87

2Q27

420

$61.87

3Q27

420

$61.87

4Q27

420

$61.87

Natural Gas Hedge Position

Gas Swap

Gas Swap Price

BBtu

$/MMbtu

2Q26

12,740

$3.73

3Q26

12,880

$3.73

4Q26

12,880

$3.73

1Q27

7,200

$3.91

2Q27

7,280

$3.91

3Q27

7,360

$3.91

4Q27

7,360

$3.91

More detailed information about the Partnership's existing hedging program can be found in the Quarterly Report on Form 10-Q for the first quarter of 2026, which is expected to be filed on or around May 5, 2026.

Conference Call

Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2026 on Tuesday, May 5, 2026 at 9:00 a.m. Central Time. Black Stone recommends participants who do not anticipate asking questions to listen to the call via the live broadcast available at http://investor.blackstoneminerals.com. Analysts and investors who wish to ask questions should dial (833) 461-5787 for domestic participants and (585) 542-9983 for international participants. The conference ID for the call is 490087452. A recording of the conference call will be available on Black Stone's website.

About Black Stone Minerals, L.P.

Black Stone Minerals is one of the largest owners and managers of oil and natural gas mineral interests in the United States. The Partnership owns mineral interests and royalty interests in 41 states in the continental United States. Black Stone believes its large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests provide for stable production and reserves over time, allowing the majority of generated cash flow to be distributed to unitholders.

Forward-Looking Statements

This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “may,” “should,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms, or other comparable terminology often identify forward-looking statements. Except as required by law, Black Stone Minerals undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by these cautionary statements. These forward-looking statements involve risks and uncertainties, many of which are beyond the control of Black Stone Minerals, which may cause the Partnership’s actual results to differ materially from those implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below, as wells as the Risk Factors section in our most recent annual report on Form 10-K:

the Partnership’s ability to execute its business strategies; the volatility of realized oil and natural gas prices; the level of production on the Partnership’s properties; overall supply and demand for oil and natural gas, and regional supply and demand factors, delays, or interruptions of production; conservation measures and general concern about the environmental impact of the production and use of fossil fuels; the Partnership’s ability to replace its oil and natural gas reserves; general economic, business, or industry conditions including slowdowns, domestically and internationally, and volatility in the securities, capital, or credit markets; cybersecurity incidents, including data security breaches or computer viruses; competition in the oil and natural gas industry; the availability or cost of rigs, equipment, raw materials, supplies, oilfield services or personnel; and the level of drilling activity by the Partnership’s operators, particularly in areas such as the Shelby Trough where the Partnership has concentrated acreage positions. BLACK STONE MINERALS, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per unit amounts)

  Three Months Ended March 31,

2026

2025

REVENUE

Oil and condensate sales

$

54,114

$

50,093

Natural gas and natural gas liquids sales

63,408

58,235

Lease bonus and other income

6,387

6,925

Revenue from contracts with customers

123,909

115,253

Gain (loss) on commodity derivative instruments, net

(64,550

)

(56,001

)

TOTAL REVENUE

59,359

59,252

OPERATING (INCOME) EXPENSE

Lease operating expense

1,893

2,162

Production costs and ad valorem taxes

9,200

10,185

Exploration expense

4,625

5,110

Depreciation, depletion, and amortization

9,785

9,130

General and administrative

16,832

15,172

Accretion of asset retirement obligations

389

332

TOTAL OPERATING EXPENSE

42,724

42,091

INCOME FROM OPERATIONS

16,635

17,161

OTHER INCOME (EXPENSE)

Interest and investment income

32

64

Interest expense

(3,361

)

(1,397

)

Other income (expense), net

(34

)

120

TOTAL OTHER EXPENSE

(3,363

)

(1,213

)

NET INCOME

13,272

15,948

Distributions on Series B cumulative convertible preferred units

(7,366

)

(7,366

)

NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS

$

5,906

$

8,582

ALLOCATION OF NET INCOME:

General partner interest

$

—

$

—

Common units

5,906

8,582

$

5,906

$

8,582

NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT:

Per common unit (basic)

$

0.03

$

0.04

Per common unit (diluted)

$

0.03

$

0.04

WEIGHTED AVERAGE COMMON UNITS OUTSTANDING:

Weighted average common units outstanding (basic)

212,369

211,253

Weighted average common units outstanding (diluted)

212,369

211,253

The following table shows the Partnership’s production, revenues, pricing, and expenses for the periods presented:

Three Months Ended March 31,

2026

2025

(Unaudited)

(Dollars in thousands, except for realized prices and per Boe data)

Production:

Oil and condensate (MBbls)

785

716

Natural gas (MMcf)1

15,266

14,853

Equivalents (MBoe)

3,329

3,192

Equivalents/day (MBoe)

37.0

35.5

Realized prices, without derivatives:

Oil and condensate ($/Bbl)

$

68.94

$

69.96

Natural gas ($/Mcf)1

4.15

3.92

Equivalents ($/Boe)

$

35.30

$

33.94

Revenue:

Oil and condensate sales

$

54,114

$

50,093

Natural gas and natural gas liquids sales1

63,408

58,235

Lease bonus and other income

6,387

6,925

Revenue from contracts with customers

123,909

115,253

Gain (loss) on commodity derivative instruments

(64,550

)

(56,001

)

Total revenue

$

59,359

$

59,252

Operating expenses:

Lease operating expense

$

1,893

$

2,162

Production costs and ad valorem taxes

9,200

10,185

Exploration expense

4,625

5,110

Depreciation, depletion, and amortization

9,785

9,130

General and administrative

16,832

15,172

Other expense:

Interest expense

3,361

1,397

Per Boe:

Lease operating expense (per working-interest Boe)

$

18.77

$

18.66

Production costs and ad valorem taxes

2.76

3.19

Depreciation, depletion, and amortization

2.94

2.86

General and administrative

5.06

4.75

Non-GAAP Financial Measures

Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures used by Black Stone’s management and external users of the Partnership’s financial statements such as investors, research analysts, and others, to assess the financial performance of its assets and its ability to sustain distributions over the long term without regard to financing methods, capital structure, or historical cost basis.

The Partnership defines Adjusted EBITDA as net income (loss) before interest expense, income taxes, and depreciation, depletion, and amortization adjusted for impairment of oil and natural gas properties, if any, accretion of asset retirement obligations, seismic data acquisition costs, non-cash equity-based compensation, unrealized gains and losses on commodity derivative instruments, and gains and losses on sales of assets, if any. Black Stone defines Distributable Cash Flow as Adjusted EBITDA plus or minus amounts for certain non-cash operating activities, cash interest expense, distributions to preferred unitholders, and restructuring charges, if any.

Beginning with the three months and year ended December 31, 2025, the Partnership revised its definition of Adjusted EBITDA to exclude seismic data acquisition costs, which are included in Exploration expense on the Partnership’s consolidated statements of operations. Comparative amounts for the three months ended March 31, 2026 and 2025, respectively, for each of Adjusted EBITDA and Distributable Cash Flow have been recast to conform to the current period presentation. Management believes this revised definition enhances comparability between periods and reflects the Partnership’s view of seismic data acquisition costs as investments that support the long-term development and value of its mineral and royalty interests.

Adjusted EBITDA and Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), income (loss) from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with generally accepted accounting principles ("GAAP") in the United States as measures of the Partnership’s financial performance.

Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income (loss), the most directly comparable U.S. GAAP financial measure. The Partnership’s computation of Adjusted EBITDA and Distributable Cash Flow may differ from computations of similarly titled measures of other companies.

Three Months Ended March 31,

2026

2025

(Unaudited)

(In thousands, except per unit amounts)

Net income

$

13,272

$

15,948

Adjustments to reconcile to Adjusted EBITDA:

Depreciation, depletion, and amortization

9,785

9,130

Interest expense

3,361

1,397

Income tax expense (benefit)

62

(85

)

Accretion of asset retirement obligations

389

332

Seismic data acquisition costs

4,256

4,829

Equity–based compensation

3,551

3,055

Unrealized (gain) loss on commodity derivative instruments

52,306

52,390

Adjusted EBITDA

86,982

86,996

Adjustments to reconcile to Distributable Cash Flow:

Change in deferred revenue

(1

)

(1

)

Cash interest expense

(3,099

)

(1,123

)

Preferred unit distributions

(7,366

)

(7,366

)

Distributable Cash Flow

$

76,516

$

78,506

Total units outstanding1

212,499

211,636

Distributable Cash Flow per unit

$

0.360

$

0.371

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Precision Drilling Corporation (PD:CA) Shareholder/Analyst Call Prepared Remarks Transcript

First quarter revenue increased 1% year over year to $121 million

Annual Recurring Revenue ("ARR") remained flat year over year at $496 million

First quarter operating income was $9 million; non-GAAP operating income was $30 million

Net income was $10 million, representing the fourth consecutive quarter of GAAP profitability

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John DiLullo named as Chief Executive Officer and Jennifer Tejada transitions to Executive Chair of Board of Directors

SAN FRANCISCO--(BUSINESS WIRE)--PagerDuty, Inc. (NYSE:PD), a leader in AI-first operations management, today announced financial results for the first quarter of fiscal 2027, ended April 30, 2026.

“Our Q1 results exceeded guidance for both revenue and non-GAAP operating margin, reflecting continued execution against our strategic and operational priorities,” said Jennifer Tejada, Executive Chair, PagerDuty. “Our expanding AI offers and the introduction of the new Operations Cloud usage-based package, further strengthens our platform and positions PagerDuty to accelerate long-term growth.”

Tejada continued, “John is off to a great start in leading PagerDuty through its next chapter with a strong foundation, meaningful product and business momentum and a significant opportunity ahead.”

First Quarter Fiscal 2027 Financial Highlights

Revenue was $121.0 million, an increase of 1.0% year over year. Operating income was $9.2 million; operating margin was 7.6%. Non-GAAP operating income was $29.7 million; non-GAAP operating margin was 24.6%. Net income was $10.2 million, representing the Company's fourth consecutive quarter of GAAP profitability. Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.13. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.32. Net cash provided by operating activities was $44.3 million; free cash flow was $41.2 million. Cash, cash equivalents, and investments were $444.0 million as of April 30, 2026. The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information.

First Quarter and Recent Highlights

ARR as of April 30, 2026 remained flat year over year at $496 million. Customers with ARR over $100 thousand grew 1% to 860 as of April 30, 2026, compared to 848 as of April 30, 2025. Dollar-based net retention rate was 97% as of April 30, 2026, compared to 104% as of April 30, 2025. Total paid customers were 15,380 as of April 30, 2026, compared to 15,247 as of April 30, 2025. Paid and free customers totaled more than 36,000 as of April 30, 2026, representing approximately 14% growth since April 30, 2025. Remaining performance obligations were $441 million as of April 30, 2026. Of this amount, the Company expects to recognize revenue of approximately $316 million, or 72%, over the next 12 months, $100 million, or 23%, over months 13 to 24, and the remainder thereafter. Lands and expands include: The Boston Consulting Group, Coreweave, Inc., The Gap, Inc., General Motors Company, LightSpun, Palo Alto Networks, Inc., and Vodafone Group Public Limited Company. Appointed John DiLullo as Chief Executive Officer and announced Jennifer Tejada’s transition to Executive Chair of Board of Directors after serving as CEO since 2016. Announced the expansion of PagerDuty’s AI integration ecosystem, with strategic partnerships with Anthropic, Cursor, and LangChain. Announced enhancements to the PagerDuty Advance SRE Agent. Features new automated triage capabilities triggered directly from a team’s automated workflows to accelerate incident response. Named a Leader and Outperformer in 2026 Gigaom Radar for IT Incident Response Platforms for Fourth Consecutive Year. Published the 2026 State of AI-First Operations Report, which illustrates how the financial state of extended service disruption has made operational resilience a top priority. Approved for the 2026 Trust Radius - Trusted Seller verification marking PagerDuty as one of the elite companies on TrustRadius. Named a finalist for the Best Technology for Good Initiative Category in the 2026 Halo Awards. Received silver in the 2026 American Business Awards for Corporate Social Responsibility Program of the Year. Recognized as a finalist for six Inspiring Workplaces in 2026: Latin America, Europe, UK & Ireland, North America, Australia & New Zealand, and Asia. Announced PagerDuty’s latest Impact cohort including grants to eight nonprofits focused on healthcare, humanitarian and crisis-response. Financial Outlook

For the second quarter of fiscal 2027, PagerDuty currently expects:

Total revenue of $122.0 million - $124.0 million. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.29 - $0.31 assuming approximately 78 million diluted shares and a non-GAAP tax rate of 20%. For the full fiscal year 2027, PagerDuty currently expects:

Total revenue of $488.5 million - $496.5 million, consistent with previous guidance. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $1.27 - $1.32 (up from $1.23 - $1.28) assuming approximately 79 million diluted shares and a non-GAAP tax rate of 20%. These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.

Conference Call Information

PagerDuty will host a conference call and live webcast (Zoom meeting ID 977 8380 9980) for analysts and investors at 2:00 p.m. Pacific Time on May 28, 2026. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.

Supplemental Financial and Other Information

Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.

Forward-Looking Statements

This press release and the related webcast contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 12, 2026. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2026 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to maintain or increase profitability; our ability to sustain or increase growth and effectively manage changes in our business and industry; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to attract and retain executives and employees we need to support our operations and growth; our dependence on a majority of our revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information technology spending, on our business and results of operations; adverse consequences that could arise as a result of international trade policies, geopolitical developments, and macroeconomic conditions, including tariffs, sanctions, trade barriers and global instability; the accuracy of our estimates of market opportunity and forecasts of market growth; our assumptions and limitations to which ARR and certain other operational data are subject that may cause such metrics to not provide an accurate indication of actual performance or future results; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast.

About PagerDuty, Inc.

PagerDuty, Inc. (NYSE: PD) is the global leader in AI-first digital operations. By automatically detecting, diagnosing, and remediating issues, the PagerDuty Operations Cloud acts as the central control plane for the modern enterprise - orchestrating AI agents and automated workflows with context from over 750 integrations. Trusted by approximately two-thirds of the Fortune 100 and nearly half of the Fortune 500, PagerDuty is the industry standard for organizations scaling resilient, autonomous operations. Learn more and try it for free at www.pagerduty.com.

The PagerDuty Operations Cloud

The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle - from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilizing the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today.

PAGERDUTY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

  Three months ended April 30,

2026

2025

Revenue

$

120,967

$

119,805

Cost of revenue(1)

19,020

19,184

Gross profit

101,947

100,621

Operating expenses:

Research and development(1)

29,988

34,048

Sales and marketing(1)

39,610

50,045

General and administrative(1)

23,166

26,855

Total operating expenses

92,764

110,948

Income (loss) from operations

9,183

(10,327

)

Interest income

3,926

6,011

Interest expense

(2,107

)

(2,364

)

Other (expense) income, net

(71

)

114

Income (loss) before provision for income taxes

10,931

(6,566

)

Provision for income taxes

5,801

813

Net income (loss)

$

5,130

$

(7,379

)

Net loss attributable to redeemable non-controlling interest

(153

)

(217

)

Net income (loss) attributable to PagerDuty, Inc.

$

5,283

$

(7,162

)

Less: Adjustment attributable to redeemable non-controlling interest

(4,963

)

(665

)

Net income (loss) attributable to PagerDuty, Inc. common stockholders

$

10,246

$

(6,497

)

Weighted-average shares used in calculating net income (loss) per share:

Basic

78,647

91,374

Diluted

79,464

91,374

Net income (loss) per share attributable to PagerDuty, Inc. common stockholders

Basic

$

0.13

$

(0.07

)

Diluted

$

0.13

$

(0.07

)

(1) Includes stock-based compensation expense as follows:

  Three months ended April 30,

2026

2025

Cost of revenue

$

849

$

1,097

Research and development

6,137

9,840

Sales and marketing

4,184

6,219

General and administrative

6,793

8,597

Total

$

17,963

$

25,753

PAGERDUTY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

  April 30, 2026

January 31, 2026

Assets

Current assets:

Cash and cash equivalents

$

208,880

$

237,402

Investments

235,077

232,436

Accounts receivable, net of allowance for credit losses of $693 and $1,175 as of April 30, 2026 and January 31, 2026, respectively

76,025

108,430

Deferred contract costs, current

18,181

18,401

Prepaid expenses and other current assets

20,867

15,570

Total current assets

559,030

612,239

Property and equipment, net

31,938

29,192

Deferred contract costs, non-current

24,681

25,010

Lease right-of-use assets

11,516

12,509

Goodwill

137,401

137,401

Intangible assets, net

14,705

15,645

Deferred tax assets

153,657

153,657

Other assets

3,664

4,862

Total assets

$

936,592

$

990,515

Liabilities, redeemable non-controlling interest, and stockholders’ equity

Current liabilities:

Accounts payable

$

4,438

$

6,718

Accrued expenses and other current liabilities

15,240

19,868

Accrued compensation

21,465

25,856

Deferred revenue, current

240,620

246,451

Lease liabilities, current

5,249

5,000

Total current liabilities

287,012

303,893

Convertible senior notes, net, non-current

396,327

395,729

Deferred revenue, non-current

2,747

2,483

Lease liabilities, non-current

11,174

12,598

Other liabilities

10,845

5,147

Total liabilities

708,105

719,850

Redeemable non-controlling interest

11,956

17,072

Stockholders' equity

Common stock

—

—

Additional paid-in capital

633,760

679,410

Accumulated other comprehensive loss

(715

)

(183

)

Accumulated deficit

(416,514

)

(421,797

)

Treasury stock

—

(3,837

)

Total stockholders’ equity

216,531

253,593

Total liabilities, redeemable non-controlling interest, and stockholders' equity

$

936,592

$

990,515

PAGERDUTY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

  Three months ended April 30,

2026

2025

Cash flows from operating activities:

Net income (loss) attributable to PagerDuty, Inc. common stockholders

$

10,246

$

(6,497

)

Net loss and adjustment attributable to redeemable non-controlling interest

(5,116

)

(882

)

Net income (loss)

5,130

(7,379

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

3,056

3,962

Amortization of deferred contract costs

5,201

5,514

Amortization of debt issuance costs

595

677

Stock-based compensation

17,963

25,753

Non-cash lease expense

985

379

Deferred income taxes

5,736

162

Other

(595

)

(811

)

Changes in operating assets and liabilities:

Accounts receivable

32,618

27,610

Deferred contract costs

(4,693

)

(4,579

)

Prepaid expenses and other assets

(5,045

)

(3,316

)

Accounts payable

(2,825

)

103

Accrued expenses and other liabilities

(2,803

)

(1,973

)

Accrued compensation

(4,493

)

(8,336

)

Deferred revenue

(5,380

)

(6,411

)

Lease liabilities

(1,167

)

(685

)

Net cash provided by operating activities

44,283

30,670

Cash flows from investing activities:

Purchases of property and equipment

(965

)

(441

)

Capitalized software costs

(2,126

)

(1,243

)

Purchases of available-for-sale investments

(40,296

)

(44,148

)

Proceeds from maturities of available-for-sale investments

37,420

44,400

Purchases of non-marketable equity investments

—

(250

)

Proceeds from liquidation of non-marketable equity investments

894

—

Net cash used in investing activities

(5,073

)

(1,682

)

Cash flows from financing activities:

Repurchases of common stock

(65,456

)

—

Proceeds from issuance of common stock upon exercise of stock options

4

3,602

Employee payroll taxes paid related to net share settlement of restricted stock units

(2,156

)

(7,557

)

Net cash used in financing activities

(67,608

)

(3,955

)

Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash

(124

)

335

Net change in cash, cash equivalents, and restricted cash

(28,522

)

25,368

Cash, cash equivalents, and restricted cash at beginning of period

238,481

348,328

Cash, cash equivalents, and restricted cash at end of period

$

209,959

$

373,696

Non-GAAP Financial Measures

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to PagerDuty, Inc. common stockholders, non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders, free cash flow, and free cash flow margin.

PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

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 PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.

Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:

Stock-based compensation: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Employer taxes related to employee stock transactions: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty’s control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangible assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.

Acquisition-related expenses: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Amortization of debt issuance costs: The imputed interest rates of the Company's convertible senior notes (the "2025 Notes" and the "2028 Notes" or, collectively, the "Notes") was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Restructuring costs: PagerDuty views restructuring costs, such as employee severance-related costs as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Shareholder matters: PagerDuty views certain charges, including third-party legal, consulting, and advisory fees, related to shareholder activity that are outside of the ordinary course of our business and expenses related to a cooperation agreement as events that are not necessarily reflective of operational performance during a period. PagerDuty believes that such charges do not have a direct correlation to the operations of the Company’s business and may vary in size depending on the timing, results, and resolution of such shareholder matters. The consideration of measures that exclude such expenses can assist in the comparison of operational performance in periods which may or may not include such expenses.

Adjustment attributable to redeemable non-controlling interest: PagerDuty adjusts the value of redeemable non-controlling interest of its joint venture PagerDuty K.K. according to the operating agreement. PagerDuty believes this adjustment is not reflective of operational performance during a period and exclusion of such adjustments can assist in comparison of operational performance in different periods.

Income tax effects and adjustments: Based on PagerDuty's financial outlook for fiscal 2027, PagerDuty is utilizing a projected non-GAAP tax rate of 20%. For fiscal 2026, PagerDuty used a projected non-GAAP tax rate of 22%. PagerDuty uses a projected non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the impact of non-recurring and period specific items, which can vary in size and frequency. PagerDuty's estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that PagerDuty believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events.

Non-GAAP gross profit and non-GAAP gross margin

We define non-GAAP gross profit as gross profit excluding the following expenses typically included in cost of revenue: stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and restructuring costs. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

Non-GAAP operating expenses

We define non-GAAP operating expenses as operating expenses excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period.

Non-GAAP operating income and non-GAAP operating margin

We define non-GAAP operating income as income (loss) from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue.

Non-GAAP net income attributable to PagerDuty, Inc. common stockholders

We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments, which are not necessarily reflective of operational performance during a given period.

Non-GAAP net income per share, basic and diluted

We define non-GAAP net income per share, basic as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average shares outstanding at the end of the reporting period. We define non-GAAP net income per share, diluted as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average diluted shares outstanding at the end of the reporting period.

Free cash flow and free cash flow margin

We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment and capitalization of software costs. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business.

Please see the reconciliation tables at the end of this release for the reconciliation of non-GAAP financial measures to their most-comparable GAAP financial measures.

PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages and per share data)
(unaudited)

  Three months ended April 30,

2026

2025

Non-GAAP gross profit and non-GAAP gross margin

Gross profit

$

101,947

$

100,621

Add:

Stock-based compensation

849

1,097

Employer taxes related to employee stock transactions

11

38

Amortization of acquired intangible assets

320

1,273

Restructuring costs

332

—

Non-GAAP gross profit

$

103,459

$

103,029

Revenue

$

120,967

$

119,805

Gross margin

84.3

%

84.0

%

Non-GAAP gross margin

85.5

%

86.0

%

Non-GAAP operating expenses

Research and development

$

29,988

$

34,048

Less:

Stock-based compensation

6,137

9,840

Employer taxes related to employee stock transactions

105

304

Acquisition-related expenses

—

228

Restructuring costs

—

1,373

Non-GAAP research and development

$

23,746

$

22,303

Sales and marketing

$

39,610

$

50,045

Less:

Stock-based compensation

4,184

6,219

Employer taxes related to employee stock transactions

49

182

Amortization of acquired intangible assets

620

633

Restructuring costs

1,099

2,210

Non-GAAP sales and marketing

$

33,658

$

40,801

General and administrative

$

23,166

$

26,855

Less:

Stock-based compensation

6,793

8,597

Employer taxes related to employee stock transactions

61

194

Restructuring costs

—

228

Shareholder matters

—

2,270

Non-GAAP general and administrative

$

16,312

$

15,566

PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages and per share data)
(unaudited)

  Three months ended April 30,

2026

2025

Non-GAAP operating income and non-GAAP operating margin

Income (loss) from operations

$

9,183

$

(10,327

)

Add:

Stock-based compensation

17,963

25,753

Employer taxes related to employee stock transactions

226

718

Amortization of acquired intangible assets

940

1,906

Acquisition-related expenses

—

228

Restructuring costs

1,431

3,811

Shareholder matters

—

2,270

Non-GAAP operating income

$

29,743

$

24,359

Revenue

$

120,967

$

119,805

Operating margin

7.6

%

(8.6

)%

Non-GAAP operating margin

24.6

%

20.3

%

Non-GAAP net income attributable to PagerDuty, Inc. common stockholders

Net income (loss) attributable to PagerDuty, Inc. common stockholders

$

10,246

$

(6,497

)

Add:

Stock-based compensation

17,963

25,753

Employer taxes related to employee stock transactions

226

718

Amortization of debt issuance costs

595

677

Amortization of acquired intangible assets

940

1,906

Acquisition-related expenses

—

228

Restructuring costs

1,431

3,811

Shareholder matters

—

2,270

Adjustment attributable to redeemable non-controlling interest

(4,963

)

(665

)

Income tax effects and adjustments

(616

)

(5,522

)

Non-GAAP net income attributable to PagerDuty, Inc. common stockholders

$

25,822

$

22,679

Non-GAAP net income per share, basic

Net income (loss) per share attributable to PagerDuty, Inc. common stockholders

$

0.13

$

(0.07

)

Non-GAAP adjustments to net income (loss) per share attributable to PagerDuty, Inc. common stockholders

0.20

0.32

Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders

$

0.33

$

0.25

Non-GAAP net income per share, diluted

Net income (loss) per share attributable to PagerDuty, Inc. common stockholders

$

0.13

$

(0.07

)

Non-GAAP adjustments to net income (loss) per share attributable to PagerDuty, Inc. common stockholders

0.20

0.31

Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders

$

0.32

$

0.24

Weighted-average shares used in calculating net income per share

Basic

78,647

91,374

Diluted

79,464

91,374

Weighted-average shares used in calculating non-GAAP net income per share

Basic

78,647

91,374

Diluted

79,464

93,656

PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages)
(unaudited)

  Three months ended April 30,

2026

2025

Free cash flow and free cash flow margin

Net cash provided by operating activities

$

44,283

$

30,670

Purchases of property and equipment

(965

)

(441

)

Capitalization of software costs

(2,126

)

(1,243

)

Free cash flow

$

41,192

$

28,986

Net cash used in investing activities

$

(5,073

)

$

(1,682

)

Net cash used in financing activities

$

(67,608

)

$

(3,955

)

Revenue

$

120,967

$

119,805

Operating cash flow margin

36.6

%

25.6

%

Free cash flow margin

34.1

%

24.2

%

More News From PagerDuty, Inc.

2 Earnings Dumpers Worth a Second LookPagerDuty NYSE: PD reported fiscal first-quarter results that exceeded its revenue and non-GAAP operating margin guidance, while the company highlighted early traction from its shift toward usage-based pricing and announced a leadership transition.

Jennifer, who has served as CEO for 10 years, said she has transitioned to executive chair and introduced John DiLullo as PagerDuty’s new CEO. She said DiLullo’s appointment followed a “deliberate and comprehensive succession process” conducted with the board. DiLullo previously served as CEO of Deepwatch, LiveVox and Lastline, and said his near-term priority is to “listen, learn, and engage” with employees, customers and partners.

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This Small Tech With Big Growth Prospects Is Nearing A Buy Point“What stands out to me is the strength of the foundation, a trusted brand, an enviable customer base, and a platform that sits at the core of real-time, mission-critical operations,” DiLullo said.

First-Quarter Revenue Edges Higher as Margins Expand PagerDuty reported quarterly revenue of $121 million, up 1% year-over-year. Annual recurring revenue was $496 million, flat compared with the prior-year period. The company said non-GAAP operating margin reached 25%, compared with 20% in the same quarter last year, reflecting efficiency initiatives and operating discipline.

Helmerich & Payne Stock, A Lot More Upside Than Meets the EyeHoward said GAAP net income was $10.2 million, marking the company’s fourth consecutive quarter of GAAP profitability. First-quarter gross margin was 86%, at the high end of the company’s target range of 84% to 86%.

Cash from operations totaled $44 million, or 37% of revenue, while free cash flow was $41 million, or 34% of revenue. PagerDuty ended the quarter with $444 million in cash equivalents and investments. Howard said the strong cash generation gives the company flexibility to invest in go-to-market changes and AI product development while continuing shareholder returns.

The company repurchased 8.5 million shares for $63 million during the quarter and completed its previously authorized $200 million share repurchase program. It also announced a new $100 million share repurchase authorization.

Usage-Based Pricing Model Shows Early Traction Management emphasized the company’s transition from seat-based licensing toward usage-based pricing through its Operations Cloud offering. Jennifer said PagerDuty historically sold products including Enterprise Incident Management, Customer Service Operations and Runbook Automation through seat-based licenses, while Event Intelligence and AI products were sold on a usage basis. The full suite is now available through an integrated platform with usage-based pricing.

Usage-based products, including AIOps, PagerDuty Advance and Operations Cloud, now represent nearly 10% of total ARR, Jennifer said. Howard added that the ARR of customers on the Operations Cloud pricing model nearly doubled from the fourth quarter to the first quarter. More than 15 customers spending over $100,000 annually have transitioned to the model.

Jennifer said early Operations Cloud customers are using more capabilities across incident management, incident workflows, Event Intelligence and agents. She said the model reduces friction tied to adding users across departments and can help customers expand usage through events, AI actions and automated workflows.

“Customers who deploy the Operations Cloud with our new professional services model see an over 80% improvement in time to value and 50% higher product engagement compared to those who self-implement,” Jennifer said.

Customer Metrics and Retention Remain in Focus PagerDuty said dollar-based net retention was 97%. Howard said customer success and renewal initiatives contributed to an improvement in gross retention from the fourth quarter to the first quarter, and the company expects gradual improvement through the year.

Customers spending more than $100,000 in annual recurring revenue totaled 860, up 1% year-over-year. Total paid customers reached 15,380 in the first quarter, while free and paid customers on the platform grew to more than 36,000, an increase of approximately 14% from the prior-year quarter.

Jennifer said PagerDuty acquired more than 600 new customers for the fifth consecutive quarter. She cited demand from large enterprises and AI-native companies, including CoreWeave and Anduril, as well as new customers such as Lightsfund, Dropzone AI and Simile.

The company also highlighted several enterprise wins and expansions, including a Fortune 500 automotive manufacturer that migrated from a seat-based plan to Operations Cloud, a Fortune 100 financial institution that expanded to support a site reliability engineering model, and a North American retailer that signed a multi-year, seven-figure agreement involving Operations Cloud and Runbook Automation.

AI Strategy Central to Growth Outlook Management framed AI as a driver of both operational complexity and demand for PagerDuty’s platform. Jennifer said AI is creating a “new operational risk layer” by accelerating software development and deployment, increasing volume and complexity in production environments, and making failures less predictable.

PagerDuty’s platform strategy is built around AI and automation, full lifecycle incident management, and platform and ecosystem extensibility, Jennifer said. She pointed to the company’s SRE Agent, launched in October, as an example of its AI focus. The agent acts as a virtual responder that gathers signals, performs approved remediations and uses operational memory from past incidents.

Jennifer also cited chat-native incident management in Slack and Microsoft Teams and partnerships involving Anthropic, Claude, Cursor and LangChain as part of the company’s AI ecosystem.

Guidance Calls for Flat Revenue Growth For the second quarter of fiscal 2027, PagerDuty expects revenue of $122 million to $124 million, with the midpoint approximately flat year-over-year. The company projected net income per diluted share attributable to PagerDuty Inc. of $0.29 to $0.31 and an operating margin of 22% to 23%.

For the full fiscal year 2027, PagerDuty maintained its revenue outlook of $488.5 million to $496.5 million, with the midpoint essentially flat year-over-year. The company raised its net income per diluted share outlook to $1.27 to $1.32, citing a reduced share count from the completed buyback program. The full-year outlook implies an operating margin of 24% to 25%.

Howard said first-quarter free cash flow was elevated due to better-than-expected collections, which the company expects to normalize in the second quarter. He also said some first-quarter operating margin outperformance reflected marketing program spending that is expected to be deployed in the second quarter.

In her closing remarks, Jennifer said PagerDuty has “a durable balance sheet, expanding operating margins, and a clear strategy to navigate and win in the AI-first world,” while expressing confidence in DiLullo’s leadership as the company begins its next phase.

About PagerDuty NYSE: PDPagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company's digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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PagerDuty delivered Q1 revenue of $121 million, narrowly beating estimates but showing less than 1% year-over-year growth. Key business metrics are deteriorating: ARR was flat, large-customer counts declined, and DBNRR fell below 100%, signaling that churn is outpacing expansion. Despite weak growth, PD announced a $100 million buyback, which could reduce the share count meaningfully, but it raises a debate over capital allocation versus growth investments.

Shares of enterprise software company PagerDuty (PD +2.17%) rallied on Friday, jumping 33.8% as of 3:56 p.m. EDT.

PagerDuty runs a platform that collects data and signals from any software-enabled device, then predicts problems or remediates them as they occur. While this service could benefit from generative AI, the stock had been caught up in the "SaaS-pocalypse" this year, as investors feared AI upstarts disrupting established SaaS vendors.

However, last night's first-quarter earnings call and guidance seemed to put some concerns to rest. Meanwhile, PagerDuty benefited from a relief rally across the software sector today.

Today's Change

(

2.17

%) $

0.19

Current Price

$

8.96

Paging a big beat In the first quarter, PagerDuty saw revenue grow 1% to $121 million, while adjusted (non-GAAP) earnings per share grew 33.3% to $0.32. Both figures handily surpassed expectations. For the current quarter, management forecasts slight quarter-over-quarter revenue growth of $122 million to $124 million, with adjusted EPS of $0.29 to $0.31.

While 1% revenue growth doesn't exactly jump off the page, PagerDuty did an excellent job of expanding operating and free cash flow margins. Adjusted operating margins increased 4.3 percentage points, from 20.3% to 24.6%, while free cash flow margins expanded by nearly 10 percentage points, from 24.2% to 34.1%.

With those increased profits, PagerDuty repurchased a boatload of its own stock in the quarter to the tune of $65.5 million. That brought the average share count down by a whopping 15% relative to the year-ago quarter, while still leaving PagerDuty with a strong balance sheet, with cash and equivalents of $440 million against $396 million of convertible notes.

Image source: Getty Images.

Pagerduty still doesn't look expensive For the year ahead, PagerDuty expects $488.5 million to $496.5 million in revenue and adjusted EPS of just $1.27 to $1.32. Even after today's jump, the stock is only trading around around 7.5 times that forward adjusted EPS guidance.

On the one hand, there is a good reason PagerDuty is so cheap: its revenue growth rate has basically slowed to a halt, and even this year's revenue estimates are flat with the prior year. So, there are legitimate questions about the competitiveness of its solutions.

Yet with the stock as cheap as it was heading into earnings, it's no surprise that even a slight beat and better cash flow generation was enough to catapult shares higher.

PagerDuty, Inc. (PD) Presents at Bank of America 2026 Global Technology Conference Transcript

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is PagerDuty (PD - Free Report) . PD is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.36 right now. For comparison, its industry sports an average P/E of 26.79. Over the past 52 weeks, PD's Forward P/E has been as high as 28.68 and as low as 13.23, with a median of 20.09.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PD has a P/S ratio of 1.41. This compares to its industry's average P/S of 2.72.

These are just a handful of the figures considered in PagerDuty's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PD is an impressive value stock right now.

-

Three-quarters of office professionals (75%) say they would be likely to look for a new job that offered better AI skills development, a figure that climbs to 80% at companies with $1 billion or more in revenue

SAN FRANCISCO--(BUSINESS WIRE)--PagerDuty, Inc. (NYSE: PD), a leader in AI-first operations management, today published an international survey which illustrates a growing disconnect between employee AI adoption and corporate governance. Left unaddressed, that gap generates measurable risks around data security, workforce trust and talent retention. The PagerDuty Shadow AI Survey was conducted among 1,250 office professionals at organizations with annual revenue of $500 million or more, in non-IT and technology roles, across Australia, Japan, the United Kingdom, and the United States.

"When over 30% of employees are putting confidential company data into public models, 'Shadow AI' becomes a massive enterprise liability,” said Tim Armandpour, CTO at PagerDuty.

Share To read the full report, including survey findings and methodology, please visit here.

Proliferation of AI Tools - Workplace Policies Lag

Office professionals are growing increasingly confident in their AI expertise, but company policies appear to hinder their adoption of AI tools:

According to the findings, two-thirds of office professionals report having used AI tools or services at work even though they believed doing so was not permitted under company policy. Among those who used AI tools that may not have been allowed, more than half (53%) received informal feedback or guidance to discontinue use, while only 48% faced formal consequences, such as a warning or disciplinary action. Respondents are eager to grow their careers with AI but are feeling stifled at the office. 77% believe their companies’ restrictions or policies on AI usage are limiting their professional growth or career mobility, and 75% say they would be likely to look for a new job that offered better AI skills development. This figure climbs to 80% at companies with $1 billion or more in revenue. Sharing Confidential Information with LLMs

A clear majority of office professionals (88%) have shared work-related information with public AI tools such as ChatGPT, Claude, or Gemini. This widespread exposure includes 43% who have shared emails and other types of correspondence, 40% who have shared meeting notes or summaries, and 34% who have input customer data or information. Additionally, 31% of workers have shared financial information or confidential company documents and strategies. Additional key findings from the PagerDuty Shadow AI Survey include:

A Majority of Employees (72%) believe they know AI better than their own tech teams. That figure rises to 80% at billion-dollar enterprises. Senior leaders (77%) are more likely to feel this way than mid-level managers or below (66%). Policies are inconsistent and widely perceived as unequal. While 86% of respondents work at organizations they believe have AI policies in place, more than four in five (81%) believe leadership operates under a different set of rules than the rest of the company when it comes to AI. Employees at larger organizations, by both revenue and headcount, are more likely (85% each) to perceive this double standard. Personal AI use is driving adoption at work. Nearly nine in 10 office professionals (89%) who have used AI for work say they first encountered the tool in their personal lives. Once adopted, AI use skews heavily toward work: 79% report using AI more often on the job than at home. “When over 30% of employees are putting confidential company data into public models, 'Shadow AI' becomes a massive enterprise liability,” said Tim Armandpour, CTO at PagerDuty. “We know the demand for AI is there because we see it in our own platform - PagerDuty customers are increasingly leveraging our AI and agentic products to solve complex operational challenges securely. The goal for any executive today should not be to slow down AI adoption, but to redirect that energy into proven platforms that offer governance and automation at scale.”

Additional Resources

Read more about the survey findings on the PagerDuty blog. Download the full report here. About PagerDuty

PagerDuty, Inc. (NYSE: PD) is the global leader in AI-first digital operations. By automatically detecting, diagnosing, and remediating issues, the PagerDuty Operations Cloud acts as the central control plane for the modern enterprise - orchestrating AI agents and automated workflows with context from over 750 integrations. Trusted by approximately two-thirds of the Fortune 100 and nearly half of the Fortune 500, PagerDuty is the industry standard for organizations scaling resilient, autonomous operations. Learn more and try it for free at www.pagerduty.com.

The PagerDuty Operations Cloud

The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle - from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilizing the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today.

FAQs

What is the PagerDuty Shadow AI Survey? The PagerDuty Shadow AI Survey examines how office professionals across four global markets are adopting and using AI while circumventing AI policies at work, and what such behavior means for organizations navigating AI governance, security, and workforce development. What is the key theme of the survey? The survey illustrates how employee AI adoption has outpaced corporate policy at large organizations, potentially creating measurable risks around data security, workforce equity, and talent retention. Who was included in the survey? The survey was conducted by Wakefield Research among 1,250 office professionals working at companies with a minimum annual revenue of $500 million, excluding IT and technology roles. What regions are represented across the survey data? The survey was conducted in four markets: the United States (n=500), United Kingdom (n=250), Australia (n=250), and Japan (n=250). More News From PagerDuty, Inc.

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Posted by Defense World Staff on Mar 31st, 2026

Otter Tail Corporation (NASDAQ:OTTR – Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $83.62 and traded as high as $86.92. Otter Tail shares last traded at $85.73, with a volume of 233,856 shares traded.

Analyst Ratings Changes Separately, Weiss Ratings lowered Otter Tail from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday, February 25th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $83.00.

View Our Latest Research Report on Otter Tail

Otter Tail Stock Performance The company has a quick ratio of 1.83, a current ratio of 2.28 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $3.60 billion, a PE ratio of 13.07 and a beta of 0.56. The business has a 50 day simple moving average of $86.98 and a 200 day simple moving average of $83.62.

Otter Tail (NASDAQ:OTTR – Get Free Report) last posted its quarterly earnings data on Tuesday, February 17th. The utilities provider reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.07. The firm had revenue of $308.10 million for the quarter, compared to the consensus estimate of $311.15 million. Otter Tail had a net margin of 21.16% and a return on equity of 15.36%. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.30 earnings per share. Equities research analysts predict that Otter Tail Corporation will post 5.88 EPS for the current fiscal year.

Otter Tail Increases Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Friday, February 13th were given a dividend of $0.5775 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $2.31 dividend on an annualized basis and a yield of 2.7%. This is an increase from Otter Tail’s previous quarterly dividend of $0.53. Otter Tail’s payout ratio is presently 35.21%.

Institutional Investors Weigh In On Otter Tail A number of institutional investors and hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its holdings in Otter Tail by 129.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 376 shares of the utilities provider’s stock worth $30,000 after buying an additional 212 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Otter Tail in the fourth quarter worth $31,000. Motiv8 Investments LLC acquired a new position in Otter Tail during the fourth quarter valued at $34,000. GAMMA Investing LLC boosted its holdings in Otter Tail by 44.0% in the third quarter. GAMMA Investing LLC now owns 432 shares of the utilities provider’s stock valued at $35,000 after purchasing an additional 132 shares during the last quarter. Finally, SHP Wealth Management acquired a new stake in Otter Tail during the 4th quarter worth about $40,000. Institutional investors and hedge funds own 61.32% of the company’s stock.

Otter Tail Company Profile (Get Free Report)

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company’s service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

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FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced executive leadership transitions in conjunction with the long-term succession plan approved by its Board of Directors.

Effective April 13, 2026, Tim Rogelstad has been elected President of Otter Tail Corporation. In his new role, Mr. Rogelstad will oversee the electric and manufacturing platforms and report to Chuck MacFarlane, Otter Tail Corporation Chief Executive Officer.

Mr. Rogelstad previously served as President of Otter Tail Power Company, the Corporation’s electric utility, and as Senior Vice President, Electric Platform of the Corporation.

Mr. Rogelstad has been with Otter Tail Power Company since 1989 and has held roles of increasing responsibility across the electric utility and the Corporation during his 37‑year career. He has served as the President of Otter Tail Power Company since 2014 and has been instrumental in advancing the Corporation’s electric platform strategy and operational performance.

Concurrent with this move, Todd Wahlund was elected Senior Vice President of Otter Tail Corporation and President of Otter Tail Power Company and will report to Mr. Rogelstad. Mr. Wahlund previously served as Vice President and Chief Financial Officer of Otter Tail Corporation and brings extensive financial and utility expertise from his 34 years at Otter Tail across finance, operations, and his 20 years at the electric utility platform.

Also effective April 13, 2026, Tyler Nelson has been elected Vice President and Chief Financial Officer of Otter Tail Corporation. In this role, he will report to Mr. MacFarlane. Mr. Nelson most recently served as Vice President of Finance and Treasurer and previously held the role of Vice President of Accounting. He joined the Corporation in 2020, following his role as Corporate Controller for Titan Machinery. Earlier in his career, Mr. Nelson worked in public accounting with Grant Thornton.

Otter Tail CEO Chuck MacFarlane said, “These leadership transitions are the result of long‑standing and thoughtful succession planning by the Board and management team. Tim has spent nearly four decades with Otter Tail Power Company and the Corporation and has consistently demonstrated strong leadership, sound judgment, and a deep understanding of our businesses. His election as President reflects the confidence the Board has in his ability to help lead the Corporation’s operating platforms forward. Todd’s transition to President of Otter Tail Power Company leverages his extensive expertise at the electric utility and ensures seasoned leadership as it continues to execute its long‑term strategy. Tyler has played a key role in Otter Tail’s financial leadership and brings continuity, discipline, and a strong understanding of our financial operations to the CFO role. Collectively, these appointments position Otter Tail well for continued execution and long‑term success.”

About Otter Tail Corporation

Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota and Fargo, North Dakota.

More News From Otter Tail Corporation

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FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended March 31, 2026.

SUMMARY

Produced diluted earnings per share of $1.73 in the first quarter of 2026. Return on equity of 15% over the trailing twelve months. Affirmed 2026 diluted earnings per share guidance range of $5.22 to $5.62. CEO OVERVIEW

"We are pleased with our first quarter financial results and are well positioned to achieve our financial objectives for the year,” said CEO Chuck MacFarlane. “Across our businesses, our team members executed on our near-term priorities for the benefit of our customers and shareholders.

“Otter Tail Power delivered on our regulatory priorities while making significant progress on our customer-focused rate base growth plan. We obtained approval of our fully settled South Dakota rate case in the first quarter and implemented our new base rates at the beginning of April. We also implemented interim rates at the start of the year for our ongoing Minnesota rate case.

“We completed our wind repowering project earlier this year on budget despite weather-related headwinds delaying the in-service timing. We continue to make progress on our solar, battery storage and large regional transmission projects. Our team members secured the solar panels needed for our two solar development projects during the first quarter, eliminating tariff-related risk and avoiding the potential cost increase for the benefit of our customers.

“We are pleased with the results produced by our Manufacturing segment businesses as our team members’ cost-management efforts over the past year positively contributed to our quarterly results. We are also encouraged by increasing sales volumes in several of our end markets.

“Our Plastics segment businesses benefitted from better-than-expected demand for our products while average sales prices continued to recede in line with our expectations. We completed the second phase of our Vinyltech expansion project earlier this year and look forward to leveraging the additional production capacity. With the conclusion of the second phase, this completes a multi-year expansion project that added 15 percent of additional production capacity, and increased manufacturing space and raw material storage capabilities. This investment will allow us to better serve our customers, pursue growth opportunities and enhance our employee experience.

“We are maintaining our 2026 diluted earnings per share guidance range of $5.22 to $5.62. The fundamentals of our diversified portfolio remain strong, and we are confident in our ability to deliver on our customer-focused growth plan over the long term. Our targeted long-term earnings per share growth rate is 7 to 9 percent, with a total shareholder return of 10 to 12 percent.”

QUARTERLY DIVIDEND

On May 4, 2026, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.5775 per share. This dividend is payable on June 10, 2026 to shareholders of record on May 15, 2026.

CASH FLOWS AND LIQUIDITY

Our consolidated cash provided by operating activities for the three months ended March 31, 2026 was $70.6 million compared to $39.5 million for the three months ended March 31, 2025. The increase in cash provided by operating activities was primarily due to a decrease in working capital requirements, largely driven by the timing of vendor payments and the recovery of fuel cost and rider revenue from our utility customers.

Investing activities for the three months ended March 31, 2026 included capital expenditures of $185.3 million. Our capital investments were largely within our Electric segment and included investments in our solar, wind repowering and other projects.

Financing activities for the three months ended March 31, 2026 included the issuance of $100.0 million of long-term debt by Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments and support operating activities. Financing activities for the period also included net short-term borrowings totaling $7.7 million and dividend payments of $24.3 million.

As of March 31, 2026 we had $170.0 million and $140.5 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $348.4 million of available cash and cash equivalents, resulting in total available liquidity of $658.9 million.

SEGMENT PERFORMANCE

Electric Segment

Three Months Ended March 31,

($ in thousands)

2026

2025

Change

% Change

Operating Revenues

$

165,870

$

149,720

$

16,150

10.8

%

Net Income

35,250

24,708

10,542

42.7

Retail MWh Sales

1,715,724

1,673,004

42,720

2.6

%

Heating Degree Days

3,155

3,451

(296

)

(8.6

)

The following table shows heating degree days as a percent of normal.

Three Months Ended March 31,

2026

2025

Heating Degree Days

92.2

%

100.9

%

The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended March 31, 2026 and 2025.

2026 vs Normal

2026 vs

2025

2025 vs Normal

Effect on Diluted Earnings Per Share

$

(0.05

)

$

(0.05

)

$

—

Operating Revenues increased $16.2 million driven by higher retail revenues due to increased rates, higher fuel recovery revenues, increased commercial sales volumes and the recovery of our investments through riders. These increases were partially offset by the impact of unfavorable weather and higher production tax credits, the benefit of which is provided to customers.

Interim rates in Minnesota and South Dakota became effective in January 2026 and December 2025, respectively, and updated base rates in North Dakota went into effect in March 2025. Higher fuel recovery revenues resulted from increased generation from our natural gas and coal-fired facilities. Finally, we benefited from the recovery of our significant rate base investments over the past twelve months, including investments in our wind repowering and solar facility projects.

Net Income increased $10.5 million primarily due to higher retail revenues, partially offset by higher operating and maintenance expenses, including increased labor costs, as well as higher depreciation and interest expense associated with our rate base investments.

Manufacturing Segment

Three Months Ended March 31,

(in thousands)

2026

2025

$ Change

% Change

Operating Revenues

$

89,559

$

81,685

$

7,874

9.6

%

Net Income

4,283

1,532

2,751

179.6

Operating Revenues increased $7.9 million primarily due to a 5% increase in steel costs, which are passed on to customers, and a 4% increase in sales volumes. Demand improved in certain markets we serve, including the construction and recreational vehicle markets, compared to softer demand and tighter inventory management efforts during the same period last year.

Net Income increased $2.8 million primarily due to higher margins resulting from the mix of products sold, improved production efficiencies and a cost structure aligned with current demand levels. Higher sales volumes also contributed to the increase in earnings. The impact of higher margins and sales volumes was partially offset by higher general and administrative expenses.

Plastics Segment

Three Months Ended March 31,

(in thousands)

2026

2025

$ Change

% Change

Operating Revenues

$

91,597

$

105,948

$

(14,351

)

(13.5

)%

Net Income

32,940

43,439

(10,499

)

(24.2

)

Operating Revenues decreased $14.4 million primarily due to a 19% decrease in average sales prices compared with the same period last year, continuing the multi‑year decline in product pricing from peak levels in late 2022. This decrease was partially offset by a 7% increase in sales volumes. Sales volumes benefited from the opportunistic sale of specialty pipe during the period. Late in the quarter, we also benefited from distributor and contractor demand as they sought to secure inventories in advance of potential PVC resin cost increases.

Net Income decreased $10.5 million as a result of decreased sales prices, partially offset by the increase in sales volumes and a 12% decrease in PVC resin and other input material costs.

Corporate

Three Months Ended March 31,

(in thousands)

2026

2025

$ Change

% Change

Net Income (Loss)

$

137

$

(1,580

)

$

1,717

n/m

Net Income improved $1.7 million compared to the same period last year, primarily driven by a higher tax benefit and lower employee healthcare claims under our self-insured healthcare program. These improvements were partially offset by market-driven losses on our corporate-owned life insurance investments.

2026 OUTLOOK

We continue to anticipate 2026 diluted earnings per share to be in the range of $5.22 to $5.62. We expect our earnings mix in 2026 to be approximately 49% from our Electric segment and 51% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2026 deviates from our long-term expected earnings mix of 70% Electric and 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2026 compared to our long-term view of normal earnings for this segment.

The segment components of our 2026 diluted earnings per share guidance compared with actual earnings for 2025 are as follows:

2025 EPS

by Segment

2026 EPS Guidance

Low

High

Electric

$

2.32

$

2.61

$

2.69

Manufacturing

0.27

0.26

0.32

Plastics

4.05

2.49

2.71

Corporate

(0.09

)

(0.14

)

(0.10

)

Total

$

6.55

$

5.22

$

5.62

Return on Equity

15.6

%

11.5

%

12.3

%

CONFERENCE CALL AND WEBCAST

The corporation will host a live webcast on Tuesday, May 5, 2026 at 10:00 a.m. CT to discuss its financial and operating performance.

The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.

If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.

FORWARD-LOOKING STATEMENTS

Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “confident,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “optimistic,” “opportunity,” “outlook,” “plan,” “possible,” “position,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2026 earnings and earnings per share, long-term earnings, earnings-per-share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government executive orders, legislation and regulation including foreign trade policy; environmental, health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

Category: Earnings

About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

  Three Months Ended March 31,

(in thousands, except per-share amounts)

2026

2025

Operating Revenues

Electric

$

165,870

$

149,720

Product Sales

181,156

187,633

Total Operating Revenues

347,026

337,353

Operating Expenses

Electric Production Fuel

20,773

14,321

Electric Purchased Power

27,013

30,870

Electric Operating and Maintenance Expense

50,255

48,881

Cost of Products Sold (excluding depreciation)

107,536

104,387

Nonelectric Selling, General, and Administrative Expenses

21,771

21,292

Depreciation and Amortization

29,979

29,375

Electric Property Taxes

4,462

4,228

Total Operating Expenses

261,789

253,354

Operating Income

85,237

83,999

Other Income and (Expense)

Interest Expense

(12,636

)

(11,553

)

Nonservice Components of Postretirement Benefits

443

1,282

Other Income (Expense), net

4,442

4,456

Income Before Income Taxes

77,486

78,184

Income Tax Expense

4,876

10,085

Net Income

$

72,610

$

68,099

Weighted-Average Common Shares Outstanding:

Basic

41,904

41,826

Diluted

42,071

42,062

Earnings Per Share:

Basic

$

1.73

$

1.63

Diluted

$

1.73

$

1.62

OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)

  March 31,

December 31,

(in thousands)

2026

2025

Assets

Current Assets

Cash and Cash Equivalents

$

348,354

$

386,193

Receivables, net of allowance for credit losses

183,215

145,496

Inventories

157,055

158,598

Investments

54,887

54,311

Regulatory Assets

25,431

20,437

Other Current Assets

30,018

34,690

Total Current Assets

798,960

799,725

Noncurrent Assets

Investments

78,684

78,823

Property, Plant and Equipment, net of accumulated depreciation

3,064,991

2,876,685

Regulatory Assets

86,942

86,062

Intangible Assets, net of accumulated amortization

4,381

4,642

Goodwill

37,572

37,572

Other Noncurrent Assets

81,279

80,770

Total Noncurrent Assets

3,353,849

3,164,554

Total Assets

$

4,152,809

$

3,964,279

Liabilities and Shareholders' Equity

Current Liabilities

Short-Term Debt

$

67,971

$

60,242

Current Maturities of Long-Term Debt

79,964

79,951

Accounts Payable

132,821

93,606

Accrued Salaries and Wages

27,875

35,666

Accrued Taxes

19,414

18,460

Regulatory Liabilities

19,102

16,600

Other Current Liabilities

44,734

46,433

Total Current Liabilities

391,881

350,958

Noncurrent Liabilities and Deferred Credits

Pension Benefit Liability

32,189

32,376

Other Postretirement Benefits Liability

32,128

31,813

Regulatory Liabilities

302,075

297,398

Deferred Income Taxes

307,852

305,931

Deferred Tax Credits

14,281

14,321

Other Noncurrent Liabilities

101,447

106,156

Total Noncurrent Liabilities and Deferred Credits

789,972

787,995

Commitments and Contingencies

Capitalization

Long-Term Debt

1,063,164

963,566

Shareholders’ Equity

Common Shares

209,768

209,528

Additional Paid-In Capital

431,829

434,195

Retained Earnings

1,265,926

1,217,567

Accumulated Other Comprehensive Income

269

470

Total Shareholders' Equity

1,907,792

1,861,760

Total Capitalization

2,970,956

2,825,326

Total Liabilities and Shareholders' Equity

$

4,152,809

$

3,964,279

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

  Three Months Ended March 31,

(in thousands)

2026

2025

Operating Activities

Net Income

$

72,610

$

68,099

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation and Amortization

29,979

29,375

Deferred Tax Credits

(40

)

(192

)

Deferred Income Taxes

977

1,797

Investment Losses

1,646

37

Stock Compensation Expense

6,380

5,758

Other, net

(1,565

)

(969

)

Change in Operating Assets and Liabilities:

Receivables

(37,719

)

(38,087

)

Inventories

1,829

1,526

Regulatory Assets

(1,856

)

(3,091

)

Other Assets

7,046

5,732

Accounts Payable

2,979

(16,360

)

Accrued and Other Liabilities

(17,886

)

(13,888

)

Regulatory Liabilities

6,651

1,652

Pension and Other Postretirement Benefits

(420

)

(1,920

)

Net Cash Provided by Operating Activities

70,611

39,469

Investing Activities

Capital Expenditures

(185,281

)

(58,012

)

Proceeds from Disposal of Noncurrent Assets

2,966

1,276

Purchases of Investments and Other Assets

(4,693

)

(4,175

)

Net Cash Used in Investing Activities

(187,008

)

(60,911

)

Financing Activities

Net Borrowings (Repayments) of Short-Term Debt

7,729

(10,762

)

Proceeds from Issuance of Long-Term Debt

100,000

50,000

Dividends Paid

(24,251

)

(22,003

)

Payments for Shares Withheld for Employee Tax Obligations

(3,973

)

(3,134

)

Other, net

(947

)

(2,496

)

Net Cash Provided by Financing Activities

78,558

11,605

Net Change in Cash and Cash Equivalents

(37,839

)

(9,837

)

Cash and Cash Equivalents at Beginning of Period

386,193

294,651

Cash and Cash Equivalents at End of Period

$

348,354

$

284,814

OTTER TAIL CORPORATION

SEGMENT RESULTS (unaudited)

  Three Months Ended March 31,

(in thousands)

2026

2025

Operating Revenues

Electric

$

165,870

$

149,720

Manufacturing

89,559

81,685

Plastics

91,597

105,948

Total Operating Revenues

$

347,026

$

337,353

Operating Income (Loss)

Electric

$

39,922

$

29,043

Manufacturing

6,129

2,426

Plastics

44,703

58,876

Corporate

(5,517

)

(6,346

)

Total Operating Income

$

85,237

$

83,999

Net Income (Loss)

Electric

$

35,250

$

24,708

Manufacturing

4,283

1,532

Plastics

32,940

43,439

Corporate

137

(1,580

)

Total Net Income

$

72,610

$

68,099

Otter Tail Corporation (OTTR) Q1 2026 Earnings Call Transcript

In its upcoming report, Universal Health Services (UHS - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $5.36 per share, reflecting an increase of 10.7% compared to the same period last year. Revenues are forecasted to be $4.37 billion, representing a year-over-year increase of 6.6%.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

With that in mind, let's delve into the average projections of some Universal Health Services metrics that are commonly tracked and projected by analysts on Wall Street.

It is projected by analysts that the 'Net Revenues- Acute care hospital services' will reach $2.50 billion. The estimate indicates a change of +6.3% from the prior-year quarter.

The consensus estimate for 'Net Revenues- Behavioral health services' stands at $1.86 billion. The estimate indicates a year-over-year change of +6.2%.

The combined assessment of analysts suggests that 'Admissions - Acute - Same facility basis' will likely reach 88,434 . Compared to the present estimate, the company reported 85,244 in the same quarter last year.

Analysts expect 'Admissions - Behavioral health' to come in at 118,679 . Compared to the current estimate, the company reported 117,788 in the same quarter of the previous year.

The average prediction of analysts places 'Operating Income- Behavioral Health Care Services' at $352.05 million. The estimate is in contrast to the year-ago figure of $337.68 million.

The collective assessment of analysts points to an estimated 'Operating Income- Acute Care Hospital Services' of $259.08 million. Compared to the present estimate, the company reported $254.79 million in the same quarter last year.

View all Key Company Metrics for Universal Health Services here>>>

Over the past month, Universal Health Services shares have recorded returns of -4% versus the Zacks S&P 500 composite's +8.6% change. Based on its Zacks Rank #3 (Hold), UHS will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2026 and 2025:

, /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $348.7 million, or $5.65 per diluted share, during the first quarter of 2026, as compared to $316.7 million, or $4.80 per diluted share, during the first quarter of 2025.  Net revenues increased by 9.6% to $4.495 billion during the first quarter of 2026, as compared to $4.100 billion during the first quarter of 2025.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income during the first quarter of 2026 was $346.5 million, or $5.62 per diluted share, as compared to $319.5 million, or $4.84 per diluted share, during the first quarter of 2025. 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2026 was a favorable net after-tax impact of $2.2 million, or $.03 per diluted share, resulting from the net tax benefit recorded in connection with "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m).    

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2025 were: (i) an unrealized after-tax loss (included in "Other (income) expense, net") of $3.3 million, or $.05 per diluted share ($4.3 million pre-tax), resulting from a decrease in the market value of certain equity securities (that were sold during the fourth quarter of 2025), and; (ii) a favorable net after-tax impact of $0.5 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09.     

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $651.7 million during the first quarter of 2026, as compared to $603.9 million during the first quarter of 2025. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $648.3 million during the first quarter of 2026, as compared to $598.2 million during the first quarter of 2025.

Acute Care Services – Three-month periods ended March 31, 2026 and 2025:

During the first quarter of 2026, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) were unchanged and adjusted patient days increased by 0.8%, as compared to the first quarter of 2025. At these facilities, during the first quarter of 2026, net revenue per adjusted admission increased by 6.3% while net revenue per adjusted patient day increased by 5.5%, as compared to the first quarter of 2025. Net revenues generated from our acute care services, on a same facility basis, increased by 8.2% during the first quarter of 2026, as compared to the first quarter of 2025.

Behavioral Health Care Services – Three-month periods ended March 31, 2026 and 2025:

During the first quarter of 2026, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 1.2% while adjusted patient days increased by 1.6%, as compared to the first quarter of 2025. At these facilities, during the first quarter of 2026, net revenue per adjusted admission increased by 6.2% and net revenue per adjusted patient day increased by 5.8%, as compared to the first quarter of 2025. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.3% during the first quarter of 2026, as compared to the first quarter of 2025.

Net Cash Provided by Operating Activities and Credit Agreement Amendment/Capital Resources:

Net Cash Provided by Operating Activities:

During the three-month period ended March 31, 2026, our net cash provided by operating activities was $402 million as compared to $360 million during the first quarter of 2025. The $42 million net increase in our net cash provided by operating activities consisted of: (i) a favorable change of $40 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gain on sales of assets and businesses; (ii) a favorable change of $95 million in accounts receivable (due, in part, to delays experienced during the first quarter of 2025 in receipt of funds in connection with certain Medicaid supplemental payment programs in various states); (iii) an unfavorable change of $80 million in other working capital accounts due primarily to the timing of accounts payable disbursements, and; (iv) other combined net unfavorable changes of $13 million.  

Credit Agreement Amendment/Capital Resources:

In April, 2026, and as previously disclosed on Form 8-K as filed with the Securities and Exchange Commission on April 24, 2026, we amended our credit agreement to, among other things, increase our borrowing capacity by an aggregate of $900 million as follows: (i) increase the borrowing capacity of the revolving credit facility by $200 million to $1.5 billion (from $1.3 billion previously); (ii) increase the existing tranche term loan A by $300 million to $1.455 billion (from $1.155 billion previously), and; (iii) initiate a new $400 million delayed draw term loan A which is expected to be drawn upon the closing of our acquisition of Talkspace, Inc. The maturity date for our credit agreement, which is scheduled for September 26, 2029, remained unchanged.     

As of March 31, 2026, we had approximately $373 million of borrowings outstanding pursuant to our revolving credit facility.

Stock Repurchase Program:

In connection with our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions. Pursuant to this program, during the first quarter of 2026, we have repurchased 675,000 shares at an aggregate cost of approximately $127.3 million (average price of approximately $189 per share).

As of March 31, 2026, we had an aggregate available repurchase authorization of approximately $1.298 billion pursuant to our stock repurchase program.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 28, 2026. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call. Supplemental financial disclosures related to our financial results are available on our website.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. (the "Company") has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500® corporation, our annual revenues during 2025 were $17.4 billion. UHS ranked #271 on the Fortune 500® and #355 among American companies on the Forbes Global 2000. In 2026, UHS was again recognized as one of Fortune World's Most Admired Companies™ (from Fortune, ©2025, 2026 Fortune Media IP Limited. All rights reserved. Used under license).

Our operating philosophy is as effective today as it was upon the Company's founding in 1979, enabling us to provide compassionate care to our patients and their loved ones.  Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

UHS is headquartered in King of Prussia, PA, and, through its subsidiaries, has approximately 101,500 employees and operates 29 inpatient acute care hospitals, 346 inpatient behavioral health facilities, 168 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 40 states, Washington, D.C., the United Kingdom and Puerto Rico.

A wholly-owned subsidiary of UHS acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).  For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements.  These statements are subject to risks and uncertainties and therefore actual results may differ materially.  Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. 

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions.  Changes to these programs could materially affect program payments which could materially impact our results of operations. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, and the failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs could cause our actual results of operations for the year ended December 31, 2026 to differ materially from our previously disclosed 2026 operating results forecast. Legislation adopted on July 4, 2025, attaches work and community service requirements to eligibility for Medicaid benefits that will have the effect of limiting Medicaid enrollment and expenditures. That legislation also places limits on provider fees used to increase federal Medicaid funding to states and eliminated certain exchange premium tax credits beyond 2025. As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely increase the level of uncompensated care provided by our facilities. The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms. Changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where our products or materials are made (either directly or through our suppliers) could have an impact on our competitive position, business operations and financial results.       The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, and the verdict in Washoe County, Nevada, against certain subsidiaries of ours, both of which were previously disclosed in various filings including, most recently, our Form 10-K for the year ended December 31, 2025. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could have a material adverse effect on the Company. The ability to successfully complete, integrate and realize the benefit and synergies from our proposed acquisition of Talkspace, Inc.  We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the value of certain non-marketable securities (in connection with our minority ownership in a healthcare generative artificial intelligence company), the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

ended March 31,

2026

2025

Net revenues

$4,495,182

$4,099,720

Operating charges:

   Salaries, wages and benefits

2,088,229

1,951,104

   Other operating expenses

1,283,928

1,105,752

   Supplies expense

426,543

402,881

   Depreciation and amortization

155,426

148,345

   Lease and rental expense

38,196

36,813

3,992,322

3,644,895

Income from operations

502,860

454,825

Interest expense, net

37,133

40,056

Other (income) expense, net

(3,389)

(5,659)

Income before income taxes

469,116

420,428

Provision for income taxes

110,438

98,800

Net income

358,678

321,628

Less:  Net income (loss) attributable to

noncontrolling interests ("NCI")

9,996

4,948

Net income attributable to UHS

$348,682

$316,680

Basic earnings per share attributable to UHS (a)

$5.71

$4.87

Diluted earnings per share attributable to UHS (a)

$5.65

$4.80

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

(a) Earnings per share calculation:

ended March 31,

2026

2025

Basic and diluted:

Net income attributable to UHS - basic and diluted

$348,682

$316,680

Weighted average number of common shares - basic

61,071

64,970

Basic earnings per share attributable to UHS:

$5.71

$4.87

Weighted average number of common shares

61,071

64,970

Add: Other share equivalents

597

1,067

Weighted average number of common shares and equiv. - diluted

61,668

66,037

Diluted earnings per share attributable to UHS:

$5.65

$4.80

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Three Months ended March 31, 2026 and 2025

(in thousands, except per share amounts)

(unaudited)

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA/Adjusted EBITDA net of NCI")

Three months ended

% Net

Three months ended

% Net

March 31, 2026

revenues

March 31, 2025

revenues

Net income attributable to UHS

$348,682

$316,680

   Depreciation and amortization

155,426

148,345

   Interest expense, net

37,133

40,056

   Provision for income taxes

110,438

98,800

EBITDA net of NCI

$651,679

14.5 %

$603,881

14.7 %

Other (income) expense, net

(3,389)

(5,659)

Adjusted EBITDA net of NCI

$648,290

14.4 %

$598,222

14.6 %

Net revenues

$4,495,182

$4,099,720

Calculation of Adjusted Net Income Attributable to UHS

Three months ended

Three months ended

March 31, 2026

March 31, 2025

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Net income attributable to UHS

$348,682

$5.65

$316,680

$4.80

Plus/minus after-tax adjustments:

Loss on marketable equity securities

-

-

3,285

0.05

Impact of ASU 2016-09, net

(2,164)

(0.03)

(461)

(0.01)

Subtotal adjustments

(2,164)

(0.03)

2,824

0.04

Adjusted net income

$346,518

$5.62

$319,504

$4.84

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

March 31,

December 31,

2026

2025

Assets

Current assets:

    Cash and cash equivalents

$

119,028

$

137,797

    Accounts receivable, net

2,745,090

2,602,434

    Supplies

229,415

232,110

    Other current assets

406,168

435,574

          Total current assets

3,499,701

3,407,915

Property and equipment

13,609,793

13,489,811

Less: accumulated depreciation

(6,546,146)

(6,481,714)

7,063,647

7,008,097

Other assets:

    Goodwill

3,980,656

3,990,213

    Deferred income taxes

68,339

70,517

    Right of use assets-operating leases

375,316

374,239

    Deferred charges

9,234

9,272

    Other

684,249

667,340

Total Assets

$

15,681,142

$

15,527,593

Liabilities and Stockholders' Equity

Current liabilities:

    Current maturities of long-term debt

$

756,240

$

748,158

    Accounts payable and other liabilities

2,356,343

2,416,276

    Operating lease liabilities

72,904

73,237

    Federal and state taxes

58,591

1,930

          Total current liabilities

3,244,078

3,239,601

Other noncurrent liabilities

532,678

527,827

Operating lease liabilities noncurrent

344,555

340,715

Deferred income taxes

3,234

5,649

Long-term debt

3,952,118

4,004,393

Redeemable noncontrolling interest

73,380

70,620

UHS common stockholders' equity

7,464,857

7,275,792

Noncontrolling interest

66,242

62,996

          Total equity

7,531,099

7,338,788

Total Liabilities and Stockholders' Equity

$

15,681,142

$

15,527,593

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three months

ended March 31,

2026

2025

Cash Flows from Operating Activities:

  Net income

$358,678

$321,628

  Adjustments to reconcile net income to net 

cash provided by operating activities:

Depreciation & amortization

155,426

148,345

Stock-based compensation expense

22,504

21,595

Gain on sales of assets and businesses

(5,046)

0

  Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

   Accounts receivable

(123,862)

(218,374)

   Accrued interest

10,992

11,086

   Accrued and deferred income taxes 

104,772

88,641

   Other working capital accounts 

(122,911)

(42,824)

   Other assets and deferred charges

(12,257)

(489)

   Other, net 

(221)

3,811

   Accrued insurance expense, net of commercial premiums paid

62,568

47,334

   Payments made in settlement of self-insurance claims, net of commercial insurance reimbursements

(49,015)

(20,705)

          Net cash provided by operating activities

401,628

360,048

Cash Flows from Investing Activities:

   Property and equipment additions

(217,157)

(239,026)

   Proceeds received from sales of assets and businesses

14,304

0

   Acquisition of businesses and property

(4,857)

(8,314)

   Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment

14,716

(23,695)

   Costs incurred for purchase and development of enterprise resource planning application

(4,613)

0

   Decrease (increase) in capital reserves of commercial insurance subsidiary 

28

(264)

          Net cash used in investing activities

(197,579)

(271,299)

Cash Flows from Financing Activities:

   Repayments of long-term debt

(44,731)

(9,113)

   Additional borrowings

40

152,454

   Repurchase of common shares

(163,849)

(223,385)

   Dividends paid

(12,974)

(13,534)

   Issuance of common stock

3,782

3,658

   Profit distributions to noncontrolling interests

(7,912)

(5,912)

   Purchase of ownership interests by minority members, net

3,750

4,412

          Net cash used in financing activities

(221,894)

(91,420)

   Effect of exchange rate changes on cash and cash equivalents

(924)

1,645

Decrease in cash, cash equivalents and restricted cash

(18,769)

(1,026)

Cash, cash equivalents and restricted cash, beginning of period

271,322

224,752

Cash, cash equivalents and restricted cash, end of period

$252,553

$223,726

Supplemental Disclosures of Cash Flow Information:

  Interest paid

$25,119

$27,718

  Income taxes paid, net of refunds

$8,276

$5,638

  Noncash purchases of property and equipment

$70,246

$116,196

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 % Change 

Three Months ended

Same Facility:

3/31/2026

Acute Care Hospitals (1)

Revenues

8.2 %

Adjusted Admissions

0.0 %

Adjusted Patient Days

0.8 %

Revenue Per Adjusted Admission

6.3 %

Revenue Per Adjusted Patient Day

5.5 %

Behavioral Health Hospitals (1)

Revenues

7.3 %

Adjusted Admissions

1.2 %

Adjusted Patient Days

1.6 %

Revenue Per Adjusted Admission

6.2 %

Revenue Per Adjusted Patient Day

5.8 %

UHS Consolidated

Three Months ended

3/31/2026

3/31/2025

Revenues

$4,495,182

$4,099,720

EBITDA net of NCI

$651,679

$603,881

EBITDA Margin net of NCI

14.5 %

14.7 %

Adjusted EBITDA net of NCI

$648,290

$598,222

Adjusted EBITDA Margin net of NCI

14.4 %

14.6 %

Cash Flow From Operations

$401,628

$360,048

Capital Expenditures  

$217,157

$239,026

Days Sales Outstanding

55

53

Debt 

$4,708,358

$4,649,682

UHS' Shareholders Equity

$7,464,857

$6,785,604

Debt / Total Capitalization

38.7 %

40.7 %

Debt / EBITDA net of NCI (2)

1.70

2.00

Debt / Adjusted EBITDA net of NCI (2)

1.78

2.01

Debt / Cash From Operations (2)

2.47

2.29

(1) Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

(2) Latest 4 quarters.

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three Months ended

March 31, 2026 and 2025

(in thousands)

(unaudited)

Same Facility Basis - Acute Care Hospital Services

Three months ended

Three months ended

March 31, 2026

March 31, 2025

Amount

% of Net
Revenues 

Amount

% of Net
Revenues 

Net revenues

$2,470,045

100.0 %

$2,281,831

100.0 %

Operating charges:

Salaries, wages and benefits

952,835

38.6 %

913,829

40.0 %

Other operating expenses

728,152

29.5 %

638,599

28.0 %

Supplies expense

365,497

14.8 %

348,824

15.3 %

Depreciation and amortization

95,681

3.9 %

94,901

4.2 %

Lease and rental expense

26,738

1.1 %

25,344

1.1 %

Subtotal-operating expenses

2,168,903

87.8 %

2,021,497

88.6 %

Income from operations

301,142

12.2 %

260,334

11.4 %

Interest expense, net 

986

0.0 %

2,262

0.1 %

Other (income) expense, net 

(2,555)

(0.1) %

(8,572)

(0.4) %

Income before income taxes

$302,711

12.3 %

$266,644

11.7 %

All Acute Care Hospital Services

Three months ended

Three months ended

March 31, 2026

March 31, 2025

Amount

% of Net
Revenues

Amount

% of Net
Revenues 

Net revenues

$2,610,136

100.0 %

$2,357,814

100.0 %

Operating charges:

Salaries, wages and benefits

972,846

37.3 %

915,524

38.8 %

Other operating expenses

859,847

32.9 %

716,662

30.4 %

Supplies expense

367,938

14.1 %

348,692

14.8 %

Depreciation and amortization

96,318

3.7 %

94,903

4.0 %

Lease and rental expense

26,572

1.0 %

25,344

1.1 %

Subtotal-operating expenses

2,323,521

89.0 %

2,101,125

89.1 %

Income from operations

286,615

11.0 %

256,689

10.9 %

Interest expense, net 

986

0.0 %

2,262

0.1 %

Other (income) expense, net 

(2,132)

(0.1) %

(8,267)

(0.4) %

Income before income taxes

$287,761

11.0 %

$262,694

11.1 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2025.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Universal Health Services, Inc.

Behavioral Health Care Services

For the Three Months ended

March 31, 2026 and 2025

(in thousands)

(unaudited)

Same Facility Basis - Behavioral Health Care Services

Three months ended

Three months ended

March 31, 2026

March 31, 2025

Amount

% of Net
Revenues 

Amount

% of Net
Revenues 

Net revenues

$1,818,676

100.0 %

$1,694,160

100.0 %

Operating charges:

Salaries, wages and benefits

993,038

54.6 %

919,790

54.3 %

Other operating expenses

334,423

18.4 %

319,600

18.9 %

Supplies expense

58,456

3.2 %

54,995

3.2 %

Depreciation and amortization

55,156

3.0 %

50,879

3.0 %

Lease and rental expense

11,305

0.6 %

10,878

0.6 %

Subtotal-operating expenses

1,452,378

79.9 %

1,356,142

80.0 %

Income from operations

366,298

20.1 %

338,018

20.0 %

Interest expense, net 

1,192

0.1 %

1,075

0.1 %

Other (income) expense, net 

(883)

(0.0) %

(825)

(0.0) %

Income before income taxes

$365,989

20.1 %

$337,768

19.9 %

All Behavioral Health Care Services

Three months ended

Three months ended

March 31, 2026

March 31, 2025

Amount

% of Net
Revenues

Amount

% of Net
Revenues 

Net revenues

$1,882,152

100.0 %

$1,739,064

100.0 %

Operating charges:

Salaries, wages and benefits

1,001,094

53.2 %

923,366

53.1 %

Other operating expenses

391,898

20.8 %

362,262

20.8 %

Supplies expense

58,787

3.1 %

55,148

3.2 %

Depreciation and amortization

56,634

3.0 %

51,152

2.9 %

Lease and rental expense

11,515

0.6 %

11,364

0.7 %

Subtotal-operating expenses

1,519,928

80.8 %

1,403,292

80.7 %

Income from operations

362,224

19.2 %

335,772

19.3 %

Interest expense, net 

1,272

0.1 %

1,075

0.1 %

Other (income) expense, net 

(883)

(0.0) %

(825)

(0.0) %

Income before income taxes

$361,835

19.2 %

$335,522

19.3 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2025.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months. 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

March 31, 2026 and 2025

(unaudited)

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

3/31/26

3/31/25

%  change

3/31/26

3/31/25

%  change

Hospitals owned and leased

29

28

3.6 %

346

334

3.6 %

Average licensed beds

7,165

6,994

2.4 %

24,570

24,083

2.0 %

Average available beds

6,993

6,822

2.5 %

24,470

23,983

2.0 %

Patient days

431,073

429,030

0.5 %

1,619,586

1,588,545

2.0 %

Average daily census

4,789.7

4,767.0

0.5 %

17,995.4

17,650.5

2.0 %

Occupancy-licensed beds

66.8 %

68.2 %

-1.9 %

73.2 %

73.3 %

-0.1 %

Occupancy-available beds

68.5 %

69.9 %

-2.0 %

73.5 %

73.6 %

-0.1 %

Admissions

87,889

88,090

-0.2 %

117,491

116,350

1.0 %

Length of stay

4.9

4.9

0.0 %

13.8

13.7

0.7 %

Inpatient revenue

$15,963,182

$14,318,291

11.5 %

$3,266,302

$2,844,888

14.8 %

Outpatient revenue

10,812,978

9,327,796

15.9 %

312,492

274,034

14.0 %

Total patient revenue

26,776,160

23,646,087

13.2 %

3,578,794

3,118,922

14.7 %

Other revenue

337,257

280,443

20.3 %

95,475

88,379

8.0 %

Gross revenue

27,113,417

23,926,530

13.3 %

3,674,269

3,207,301

14.6 %

Total deductions

24,503,281

21,568,716

13.6 %

1,792,117

1,468,237

22.1 %

Net revenue 

$2,610,136

$2,357,814

10.7 %

$1,882,152

$1,739,064

8.2 %

SAME FACILITY:

ACUTE

BEHAVIORAL HEALTH

3/31/26

3/31/25

%  change

3/31/26

3/31/25

%  change

Hospitals owned and leased

28

28

0.0 %

334

334

0.0 %

Average licensed beds

7,023

6,994

0.4 %

24,016

23,856

0.7 %

Average available beds

6,851

6,822

0.4 %

23,916

23,756

0.7 %

Patient days

425,835

429,030

-0.7 %

1,593,351

1,570,599

1.4 %

Average daily census

4,731.5

4,767.0

-0.7 %

17,703.9

17,451.1

1.4 %

Occupancy-licensed beds

67.4 %

68.2 %

-1.2 %

73.7 %

73.2 %

0.8 %

Occupancy-available beds

69.1 %

69.9 %

-1.2 %

74.0 %

73.5 %

0.8 %

Admissions

86,780

88,090

-1.5 %

116,268

115,049

1.1 %

Length of stay

4.9

4.9

0.0 %

13.7

13.7

0.0 %

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

SOURCE Universal Health Services, Inc.

Universal Health Services, Inc. (UHS) Q1 2026 Earnings Call Transcript

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

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#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Universal Health Services (UHS - Free Report) King of Prussia, PA-based Universal Health Services Inc. owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers.

UHS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.91; value investors should take notice.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.28 to $23.53 per share. UHS boasts an average earnings surprise of +9.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, UHS should be on investors' short list.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Universal Health Services (UHS - Free Report) Universal Health Services, Inc. is a King of Prussia, PA-based hospital operator with acute care and behavioral health facilities, plus related outpatient access points. It also operates surgical hospitals, ambulatory surgery centers and radiation oncology centers, and offers an insurance product and physician network.

UHS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. UHS has a Growth Style Score of B, forecasting year-over-year earnings growth of 7.4% for the current fiscal year.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $23.34 per share. UHS boasts an average earnings surprise of +9.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, UHS should be on investors' short list.

Universal Health Services, Inc. (UHS) Shareholder/Analyst Call Prepared Remarks Transcript

Resources Investor Relations Journalists Agencies Client Login Send a Release

News Products Contact Hamburger menu Send a Release KING OF PRUSSIA, Pa., May 27, 2026 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its Board of Directors voted to pay a cash dividend of $0.20 per share on June 18, 2026 to shareholders of record as of June 8, 2026.

Universal Health Services, Inc. ("UHS") is one of the nation's largest providers of hospital and healthcare services. Through its subsidiaries, UHS operates acute care hospitals, behavioral health facilities, outpatient facilities and ambulatory care access points located throughout the United States, Puerto Rico and the United Kingdom.

SOURCE Universal Health Services, Inc.

Also from this source

New York, New York--(Newsfile Corp. - May 28, 2026) - Scott+Scott Attorneys at Law LLP has launched an urgent investigation into whether certain officers and directors of Universal Health Services, Inc. (NYSE: UHS) failed to manage Universal Health in an acceptable manner, breaching their fiduciary duties to Universal Health, and whether Universal Health and its shareholders have suffered damages as a result. Attorney Joseph A. Pettigrew is heading the investigation-what shareholders need to know:

On May 26, the Capitol Forum reported that South Carolina regulators flagged one of Universal Health's facilities multiple times, alleging the company failed to prevent sexual assaults of juvenile patients by other patients. Numerous other states have made similar moves.If you own Universal Health common stock, join our investigation on behalf of Universal Health and its shareholders by contacting us.If you own Universal Health common stock and you wish to discuss this investigation-at no cost for you-please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or [email protected].

About this investigation-FAQ:

Q1: What is this ongoing investigation into Universal Health about?

A: According to our investigation, owners of Universal Health common stock have been impacted by regulatory action against one of its South Carolina facilities. Numerous other states have acted likewise. Scott+Scott has a decades-long track record in fighting for corporate governance and monetary recoveries on behalf of companies and their shareholders.

Q2: How does this Scott+Scott investigation work?

A: Joining our investigation is easy and at no cost for you. By contacting us, we will let you know your rights as a Universal Health shareholder, and how the process works and what you can expect. If you currently own Universal Health stock, we look forward to hearing from you.

To learn more about Scott+Scott, our attorneys, or complex case resolution, please visit www.scott-scott.com.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299221

Source: Scott+Scott Attorneys at Law LLP

Universal Health Services, Inc. (UHS) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript

Commercial Metals (CMC - Free Report) reported $2.13 billion in revenue for the quarter ended February 2026, representing a year-over-year increase of 21.5%. EPS of $1.16 for the same period compares to $0.26 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.98 billion, representing a surprise of +7.58%. The company delivered an EPS surprise of -9.14%, with the consensus EPS estimate being $1.28.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Commercial Metals performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

North America - Average selling price (per ton) - Raw materials: $985.00 versus $939.87 estimated by three analysts on average.Europe - Steel products metal margin per ton: $316.00 versus $290.50 estimated by three analysts on average.North America - Average selling price (per ton) - Downstream products: $1,242.00 versus the three-analyst average estimate of $1,243.79.North America - Average selling price (per ton) - Steel products: $974.00 versus the three-analyst average estimate of $926.49.North America - Average selling price (per ton) - Cost of ferrous scrap utilized per ton: $351.00 compared to the $330.65 average estimate based on three analysts.North America - Average selling price (per ton) - Steel products metal margin per ton: $623.00 versus $595.84 estimated by three analysts on average.Europe - Steel products (External tons shipped): 284 thousand compared to the 343.02 thousand average estimate based on three analysts.Europe - Steel products - Rebar: 69 thousand versus the three-analyst average estimate of 114.63 thousand.Europe - Steel products - Merchant and other: 215 thousand versus the three-analyst average estimate of 228.39 thousand.Net sales from external customers- Corporate and Other: $9.26 million versus the three-analyst average estimate of $10.78 million. The reported number represents a year-over-year change of -13%.Net sales from external customers- Europe: $200.01 million compared to the $234.14 million average estimate based on three analysts. The reported number represents a change of +1% year over year.Net sales from external customers- North America: $1.61 billion compared to the $1.5 billion average estimate based on three analysts. The reported number represents a change of +16% year over year.View all Key Company Metrics for Commercial Metals here>>>

Shares of Commercial Metals have returned -16.3% over the past month versus the Zacks S&P 500 composite's -5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.