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WILMINGTON, Del., May 26, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, announced that the company will showcase integrated sensing and communication (ISAC) innovation and expertise at the 2026 IEEE International Conference on Communications (ICC).

The Institute of Electrical and Electronics Engineers (IEEE) is the world’s largest technical professional society with more than 400,000 members in 150 countries, providing authority on topics ranging from aerospace systems, computers and telecommunications to biomedical engineering, electric power, and consumer electronics. ICC is one of IEEE’s flagship conferences, attracting nearly 2,000 attendees from over 70 countries to engage in a program of keynotes, tutorials and workshops, and industry and technical paper sessions addressing the latest research and innovations in communications and networking technology.

ISAC Milestones: Collaborative Sensing and Efficient Data Utilization

During the show, InterDigital engineers will demonstrate ISAC milestones, including Architectural enhancements for efficient sensing data utilization in 6G ISAC and a world's first implementation of collaborative cellular and Wi-Fi sensing built on a preliminary 6G architecture. The collaborative sensing demo fuses sensing measurements from cellular and Wi-Fi signals, leveraging their complementary propagation characteristics to improve detection accuracy, spatial resolution, and coverage continuity while reducing blind spots in indoor environments. Real-time signal processing and data fusion enable reliable detection of human presence and environmental changes without cameras or wearable devices, revealing potential for applications in smart manufacturing, device-free healthcare monitoring, and intelligent building situational awareness.

ISAC Towards 6G: Where Do We Stand and What Comes Next?

On Wednesday, May 27th from 14:00 - 15:30 UK time, InterDigital’s Head of Wireless Lab Europe Alain Mourad will deliver an industry presentation on ISAC towards 6G. As Chair of the ETSI ISAC ISG, Alain will introduce the road ahead for ISAC, provide an update on the technology’s adoption status in 5G-Advanced, and outline ongoing discussions around ISAC in 6G studies in 3GPP and the ITU-R IMT-2030. Learn more here.

Integration of Sensing and Communication with Physical AI

On Wednesday, May 27th from 16:00 – 17:30 UK time, Alain Mourad will participate in a panel alongside peers from academia and industry to examine the integration of sensing, communication, and physical AI to advance responsive, adaptive, and trustworthy systems in real-world environments, and potential challenges like scalability, latency, privacy, security, and ethics. Learn more here.

IEEE ICC will take place in Glasgow, Scotland from May 26 – 28, 2026. Register and learn more here.

About InterDigital®

InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital® is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

InterDigital Contact:

Roya Stephens
Email: [email protected]
+1 (202) 349-1714

Final terms to be determined in binding arbitration; parties have resolved all pending litigation between them June 11, 2026 08:59 ET  | Source: InterDigital, Inc.

WILMINGTON, Del., June 11, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video and AI technology research and development company, today announced that it has entered into a patent license agreement with Amazon, covering Amazon’s services and devices, including Amazon Prime Video. The parties have agreed to resolve all pending litigation and will enter into binding arbitration to determine the final terms of the new agreement.

“This agreement is an important milestone in InterDigital’s longer-term goal to expand into video streaming services licensing and is recognition of the importance of our foundational technology in devices and services,” commented Julia Mattis, Chief Licensing Officer, InterDigital. “We welcome Amazon’s willingness to enter into a license agreement with us and work through the remaining issues in global arbitration.”

About InterDigital®

InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

InterDigital Contact:
Richard Lloyd
Email: [email protected]
+1 (202) 349-1716

InterDigital (IDCC) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

Capital International Investors acquired a new position in shares of Applied Industrial Technologies, Inc. (NYSE: AIT) in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 767,882 shares of the industrial products company's stock, valued at approximately $200,456,000. Capital International Investors owned

ArrowMark Colorado Holdings LLC trimmed its position in shares of Applied Industrial Technologies, Inc. (NYSE: AIT) by 1.4% in the undefined quarter, according to the company in its most recent disclosure with the SEC. The fund owned 195,393 shares of the industrial products company's stock after selling 2,748 shares during the quarter. ArrowMark

Shares of Applied Industrial Technologies, Inc. (NYSE: AIT - Get Free Report) have earned an average rating of "Moderate Buy" from the seven ratings firms that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month

Key Takeaways Applied Industrial benefits from strong MRO demand, driving Service Center organic sales growth.AIT's acquisitions, including Thompson and IRIS, expanded capabilities and boosted sales growth.Shareholder returns remain strong with higher dividends and $143.4M in buybacks in H1 FY26. Applied Industrial Technologies, Inc. (AIT - Free Report) is well-poised to benefit from strength across its business, acquisitions, focus on improving the product line and operational excellence. The company remains focused on investing in growth opportunities and solidifying its long-term market position.

AIT has a market capitalization of $10.2 billion and currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.

Business Strength: Applied Industrial continues to benefit from demand for technical MRO services, which remains a key support for the Service Center Based Distribution segment. In second-quarter fiscal 2026, the Service Center segment’s organic sales rose 2.9% year over year, with U.S. organic sales up more than 4% as internal initiatives and local account execution improved.

Acquisition Benefits: The company continues to add assets that expand capabilities and geographic reach. In the fiscal second quarter, acquisitions had a positive impact of 6% on the company's sales. The company announced the bolt-on acquisition of Thompson Industrial Supply (in January 2026), which is expected to generate approximately $20 million of annual sales in its first year and will be integrated into Service Center operations.

In May 2025, the company acquired IRIS Factory Automation (“IRIS”). The acquisition boosted Applied Industrial’s automation offerings and was integrated into the Engineered Solutions segment.

Price Performance of AIT
Image Source: Zacks Investment Research

In the past year, AIT has gained 24.4% compared with the industry’s 22.5% growth.

Business Initiatives: AIT’s focus on improving the product line, increasing value-added services and initiatives to drive operational excellence will boost results in the quarters ahead. Its focus on pricing, mix, channel execution and internal initiatives remains supportive of underlying margins, even as near-term inflation affects reported results.

Shareholder-Friendly Policies: It remains committed to rewarding its shareholders through dividend payouts and share buybacks. In the first six months of fiscal 2026, it paid out dividends worth $34.7 million, up 21.8% on a year-over-year basis. Also, the company increased its quarterly dividend by 11% to 51 cents per share and repurchased shares worth $143.4 million during the first half of fiscal 2026.

Other Stocks to ConsiderSome other top-ranked companies are discussed below.

Flowserve Corporation (FLS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flowserve’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 17.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has increased 4.6%.

Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2. Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%.

In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2%.

Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%.

In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.7%.

GEA Group (OTCMKTS:GEAGF – Get Free Report) and Applied Industrial Technologies (NYSE:AIT – Get Free Report) are both large-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Volatility and Risk GEA Group has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Valuation and Earnings This table compares GEA Group and Applied Industrial Technologies”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio GEA Group $6.22 billion 1.96 $468.31 million $2.32 32.18 Applied Industrial Technologies $4.56 billion 2.36 $392.99 million $10.51 27.53 GEA Group has higher revenue and earnings than Applied Industrial Technologies. Applied Industrial Technologies is trading at a lower price-to-earnings ratio than GEA Group, indicating that it is currently the more affordable of the two stocks.

Profitability This table compares GEA Group and Applied Industrial Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets GEA Group 7.49% 18.50% 7.55% Applied Industrial Technologies 8.49% 21.74% 12.78% Insider and Institutional Ownership 93.5% of Applied Industrial Technologies shares are held by institutional investors. 1.6% of Applied Industrial Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations This is a summary of recent ratings and price targets for GEA Group and Applied Industrial Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score GEA Group 0 1 0 1 3.00 Applied Industrial Technologies 0 1 6 0 2.86 Applied Industrial Technologies has a consensus price target of $294.38, indicating a potential upside of 1.76%. Given Applied Industrial Technologies’ higher possible upside, analysts plainly believe Applied Industrial Technologies is more favorable than GEA Group.

Summary Applied Industrial Technologies beats GEA Group on 10 of the 15 factors compared between the two stocks.

About GEA Group (Get Free Report)

GEA Group Aktiengesellschaft engages in the development and production of systems and components to the food, beverage, and pharmaceutical industries. It operates through Separation & Flow Technologies, Liquid & Power Technologies, Food & Health Technologies, Farm Technologies, and Heating & Refrigeration Technologies segments. The Separation & Flow Technologies segment manufacture process-related components and machinery including notably separators, decanters, homogenizers, valves, and pumps. The Liquid & Power Technologies segment offers brewing systems, liquid processing and filling, concentration, precision fermentation, crystallization, purification, drying, powder handling, and packaging, as well as systems for emission control for dairy, beverage, food, chemical, and other industries. The Food & Health Technologies segment engages in the preparation, marination, and processing of meat, poultry, seafood, and vegan products, pasta and confectionery products, baking, slicing, packaging, and frozen food processing for food processing industry; and provides tablet presses for pharmaceutical industry. The Farm Technologies segment offers customer solution for milk production and livestock farming, which includes automatic milking and feeding system, conventional milking solutions, manure handling, and digital herd management tool. The Heating & Refrigeration Technologies segment provides energy solution in the field of industrial refrigeration and heating for an array of industries including food, beverage, dairy, and oil and gas. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.

About Applied Industrial Technologies (Get Free Report)

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

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Net Sales of $1.3 Billion Up 7.3% YoY; Up 6.0% on an Organic BasisNet Income of $99.8 Million; EPS of $2.65 Up 3.1% YoYOperating Income of $137.9 Million; EBITDA of $153.9 Million Up 6.2% YoYOperating Cash Flow of $100.1 Million; Free Cash Flow of $95.4 MillionAdjusting FY26 Guidance; EPS Now $10.64 to 10.75 on Sales of +7.2% to +7.7%Announcing New 3.0 Million Share Repurchase Authorization CLEVELAND--(BUSINESS WIRE)--Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2026 third quarter ended March 31, 2026.

Net sales for the quarter of $1.3 billion increased 7.3% over the prior year. The change includes a 0.5% increase from acquisitions and a positive 0.8% impact from foreign currency translation. Excluding these factors, sales increased 6.0% on an organic basis reflecting a 4.2% increase in the Service Center segment and a 9.3% increase in the Engineered Solutions segment. The Company reported net income of $­­­99.8 million, or $2.65 per share, and EBITDA of $153.9 million. Results include $1.7 million ($0.05 per share) of non-routine discrete tax expense related to prior-year tax provision adjustments. In addition, on a pre-tax basis, results include $5.6 million ($0.11 after tax per share) of LIFO expense compared to $2.2 million ($0.04 after tax per share) of LIFO expense in the prior-year period.

Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We delivered a solid third quarter underscored by strengthening organic sales growth across both segments. Growth was led by our Engineered Solutions segment where ongoing positive order trends, improving demand across legacy and emerging industry verticals, and our deep application and engineering expertise is accelerating sales momentum. This is an encouraging sign that highlights our differentiated position, as well as distinct growth tailwinds emerging across the segment. In addition, Service Center segment demand is building nicely. Benefits from our sales initiatives and One Applied value proposition are reading through as we support our customers’ heightened technical MRO requirements within an increasingly positive U.S. industrial backdrop. Combined with steady underlying gross margin performance, we reported record quarterly EBITDA at the high end of our expectations. Overall, these are strong results that further demonstrate our favorable industry position and the Applied team’s consistent execution.”

Mr. Schrimsher added, “I am encouraged by our performance year to date and the company-specific opportunities that continue to develop. Organic sales month to date in April are trending up by a high single-digit percent year over year, while orders and business funnel activity remain favorable. We are mindful of recent geopolitical developments and ongoing trade policy uncertainty, which we have incorporated into our fourth quarter outlook. That said, the demand backdrop across our North American centric operations is showing favorable signs with U.S. industrial macro indicators now in more positive territory, break-fix activity firming, and customers’ capital spending gradually improving. Combined with our balance sheet capacity, we are in a solid position moving forward.”

Updated Fiscal 2026 Guidance

Guidance for our fiscal 2026 year ending June 30, 2026 is updated as follows:

EPS: $10.64 to $10.75 (prior $10.45 to $10.75) Total sales growth: 7.2% to 7.7% (prior 5.5% to 7.0%) Organic sales growth: 3.8% to 4.2% (prior 2.5% to 4.0%) EBITDA margin: 12.3% to 12.4% (prior 12.2% to 12.4%) Updated guidance assumes the following for our fiscal fourth quarter ending June 30, 2026:

EPS: $2.85 to $2.96 Total sales growth: 4.5% to 6.0% Organic sales growth: 4.0% to 5.5% year over year EBITDA margin: 12.6% to 12.8% Guidance incorporates macro uncertainty tied to recent geopolitical events and ongoing trade policy dynamics, as well as broader inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.

Share Repurchase Authorization

Today, the Company announced that its Board of Directors authorized a new share buyback program to repurchase up to 3.0 million shares of the Company’s common stock. The updated plan replaces the prior share repurchase plan. Shares may be purchased in open market and negotiated transactions.

Dividend

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable on May 29, 2026, to shareholders of record on May 15, 2026.

Conference Call Information

The Company will host a conference call at 10 a.m. ET today to discuss the quarter’s results and outlook. A live audio webcast and supplemental presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 833-461-5787 (toll free) or 585-542-9983 using conference ID 381460398. Replays of the call will be available via webcast, as well as by telephone for one week by dialing 833-461-5787 (toll free) using conference ID 381460398.

About Applied®

Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.

This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “assume,” “expectation,” “guidance,” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.

APPLIED INDUSTRIAL TECHNOLOGIES INC. AND SUBSIDIARIES CONDENSED STATEMENTS OF CONSOLIDATED INCOME (Unaudited) (In thousands, except per share data)   Three Months Ended
March 31,

Nine Months Ended
March 31,

2026

2025

2026

2025

Net sales $

1,251,453

$

1,166,749

$

3,613,999

$

3,338,694

Cost of sales 870,649

811,459

2,518,432

2,330,272

Gross profit 380,804

355,290

1,095,567

1,008,422

Selling, distribution and administrative expense, including depreciation 242,879

225,888

705,403

644,978

Operating income 137,925

129,402

390,164

363,444

Interest expense (income), net 2,447

853

4,382

(710

)

Other expense (income), net 350

1,267

(703

)

(1,769

)

Income before income taxes 135,128

127,282

386,485

365,923

Income tax expense 35,359

27,483

90,560

80,771

Net income $

99,769

$

99,799

$

295,925

$

285,152

Net income per share - basic $

2.68

$

2.60

$

7.89

$

7.43

Net income per share - diluted $

2.65

$

2.57

$

7.79

$

7.33

Average shares outstanding - basic 37,223

38,322

37,527

38,383

Average shares outstanding - diluted 37,684

38,847

38,002

38,920

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)     March 31,
2026 June 30,
2025     Assets Cash and cash equivalents $

171,576

$

388,417

Accounts receivable, net 792,849

769,699

Inventories 526,324

505,337

Other current assets 90,457

84,020

Total current assets 1,581,206

1,747,473

Property, net 128,037

128,154

Operating lease assets, net 181,830

188,654

Identifiable intangibles, net 322,689

348,600

Goodwill 704,998

699,374

Other assets 69,951

63,289

Total Assets $

2,988,711

$

3,175,544

  Liabilities Accounts payable $

303,057

$

280,124

Current portion of long-term debt 18,000

—

Other accrued liabilities 215,565

246,027

Total current liabilities 536,622

526,151

Long-term debt 347,300

572,300

Other liabilities 244,746

232,573

Total Liabilities 1,128,668

1,331,024

Shareholders' Equity 1,860,043

1,844,520

Total Liabilities and Shareholders' Equity $

2,988,711

$

3,175,544

  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1) Inventories are valued at average cost, using the last-in, first-out (LIFO) method for U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (In thousands)   Nine Months Ended

March 31,

2026

2025

  Cash Flows from Operating Activities Net Income $

295,925

$

285,152

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property 19,472

18,433

Amortization of intangibles 30,213

25,385

Provision for losses on accounts receivable 1,095

2,652

Amortization of stock appreciation rights 4,174

3,570

Other share-based compensation expense 5,414

5,824

Changes in operating assets and liabilities, net of acquisitions (55,310

)

5,371

Other, net 18,103

(1,050

)

Net Cash provided by Operating Activities 319,086

345,337

Cash Flows from Investing Activities Net cash paid for acquisitions, net of cash acquired (11,425

)

(273,312

)

Capital expenditures (18,312

)

(18,295

)

Proceeds from property sales 986

1,022

Net Cash used in Investing Activities (28,751

)

(290,585

)

Cash Flows from Financing Activities Net payments under revolving credit facility (207,000

)

—

Long-term debt repayments —

(25,106

)

Interest rate swap settlement receipts 5,765

9,435

Purchases of treasury shares (236,379

)

(79,794

)

Dividends paid (53,727

)

(46,159

)

Payment of debt issuance costs (1,611

)

—

Acquisition holdback payments (1,393

)

(1,210

)

Taxes paid for shares withheld (12,812

)

(14,332

)

Net Cash used in Financing Activities (507,157

)

(157,166

)

Effect of Exchange Rate Changes on Cash (19

)

(5,361

)

Decrease in Cash and Cash Equivalents (216,841

)

(107,775

)

Cash and Cash Equivalents at Beginning of Period 388,417

460,617

Cash and Cash Equivalents at End of Period $

171,576

$

352,842

Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:   Three Months Ended

Nine Months Ended

March 31,

March 31,

2026

2025

2026

2025

Net Income $

99,769

$

99,799

$

295,925

$

285,152

Interest expense (income), net 2,447

853

4,382

(710

)

Income tax expense 35,359

27,483

90,560

80,771

Depreciation and amortization of property 6,396

6,583

19,472

18,433

Amortization of intangibles 9,884

10,218

30,213

25,385

EBITDA $

153,855

$

144,936

$

440,552

$

409,031

The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results.   Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:   Three Months Ended

Nine Months Ended

March 31,

March 31,

2026

2025

2026

2025

Net Cash provided by Operating Activities $

100,110

$

122,453

$

319,086

$

345,337

Capital expenditures (4,734

)

(7,549

)

(18,312

)

(18,295

)

Free Cash Flow $

95,376

$

114,904

$

300,774

$

327,042

  Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures. More News From Applied Industrial Technologies, Inc.

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Applied Industrial Technologies, Inc. (AIT) Q3 2026 Earnings Call Transcript

Key Takeaways Applied Industrial Q3 EPS beat estimates, rising 3.1%, with sales up 7.3% year over year.AIT saw strong growth in Engineered Solutions, driven by fluid power and automation demand.Company raised FY2026 sales and earnings outlook, signaling continued momentum. Applied Industrial Technologies, Inc. (AIT - Free Report) reported third-quarter fiscal 2026 (ended March 31, 2026) earnings of $2.65 per share, which surpassed the Zacks Consensus Estimate of $2.63. The bottom line increased 3.1% year over year.

Net sales of $1.25 billion beat the consensus estimate of $1.22 billion. Also, the top line increased 7.3% year over year. Acquisitions boosted the top line by 0.5% while foreign-currency translation had a favorable impact of 0.8%. Organic sales increased 6% year over year.

Segmental DiscussionThe Service Center-Based Distribution segment’s sales, which contributed 64.3% to net sales, totaled $804.9 million. On a year-over-year basis, the segment’s sales increased 5.7%.

While organic sales increased 4.2%, foreign currency translation positively impacted sales by 1.3%. Segmental sales were aided by ongoing internal initiatives and higher technical MRO activities.

The Engineered Solutions segment’s sales (formerly the Fluid Power & Flow Control segment), which contributed 35.7% to net sales, totaled $446.5 million. On a year-over-year basis, the segment’s sales increased 10.2%.

Acquisitions boosted the top line by 0.9%. Organic sales increased 9.3% owing to strong volume across fluid power and automation businesses, and healthy growth across the flow control unit.

AIT’s Margin ProfileIn the quarter, Applied Industrial’s cost of sales was up 7.3% year over year to $870.6 million. Gross profit was $380.8 million, up 7.2% from the year-ago quarter.

The gross margin inched down to 30.4% from 30.5% in the year-ago quarter. Selling, distribution and administrative expenses (including depreciation) increased 7.5% year over year to $242.9 million. EBITDA was $153.9 million, reflecting an increase of 6.2%.

AIT’s Balance Sheet & Cash FlowExiting third-quarter fiscal 2026, Applied Industrial had cash and cash equivalents of $171.6 million compared with $388.4 million at the end of fiscal 2025. Long-term debt was $347.3 million compared with $572.3 million at the end of the prior fiscal year.

In the first nine months, it generated net cash of $319.1 million from operating activities, indicating a decrease of 7.5% from the year-ago quarter. Capital expenditures totaled $18.3 million, roughly stable year over year. Free cash flow decreased 8% year over year to $300.8 million.

In the first nine months, AIT rewarded its shareholders with dividends of $53.7 million, up 16.2% year over year.

Dividend UpdateApplied Industrial’s board approved a quarterly cash dividend of 51 cents per share, payable to shareholders on May 29, 2026, of record as of May 15, 2026.

Applied Industrial’s GuidanceFor fiscal 2026 (ending June 2026), Applied Industrial anticipates adjusted earnings to be in the range of $10.64-$10.75 per share compared with $10.45-$10.75 predicted earlier.

The company currently anticipates sales to increase in the range of 7.2-7.7%, higher than 5.5-7.0% predicted earlier. Organic sales are expected to increase 3.8-4.2% year over year compared with 2.5-4.0% estimated previously.  AIT expects the EBITDA margin to be in the range of 12.3-12.4%.

Zacks Rank and Stocks to ConsiderThe company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks are discussed below:

DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.

Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.5%.

RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.

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AIT Consulting Services honored by OneStream for innovative AI application in finance and operations

BOSTON--(BUSINESS WIRE)--WilliamsMarston, a national leader in complex accounting, tax, technology, transaction, and valuation advisory services, is proud to recognize AIT Consulting Services (“AIT”) for receiving the 2026 AI Excellence Award from OneStream, which honors partners delivering measurable business impact through AI-powered finance solutions.

AIT, a WilliamsMarston company and a Diamond OneStream implementation partner, was recognized for its role in helping MB2 Dental—a fast-growing, private equity-backed healthcare services organization—implement AI-driven performance insights across its organization.

The project leveraged OneStream SensibleAI Studio to enable automated benchmarking, anomaly detection, and AI performance analysis within finance and operational workflows. Completed through an initial pilot and full deployment over approximately eight weeks, it established a scalable foundation for future predictive analytics and more proactive decision-making.

“We’re incredibly proud of our team and the close collaboration we’ve built with OneStream,” said Ben Novak, Partner and OneStream Co-Practice Leader. “Receiving the AI Excellence Award reinforces our shared vision of empowering finance leaders with intelligent, data-driven tools that transform how they plan, report, and operate.”

AIT is part of the Firm’s broader technology practice, which advises clients on finance transformation, enterprise performance management, AI enablement, and reporting modernization to help their organizations scale more effectively and strategically.

“We’re seeing more organizations move from talking about AI to finding practical ways to apply it across the business,” said Sanjay Ramaswamy, CEO of WilliamsMarston. “AIT’s work with MB2 Dental is just one strong example of how the right combination of technology and industry expertise can help teams work more efficiently, surface stronger insights, and make better decisions.”

To learn more about WilliamsMarston’s OneStream Practice, visit williamsmarston.com/onestream-practice/

About WilliamsMarston
WilliamsMarston is a national accounting, tax, technology, transaction, and valuation advisory firm serving pre-IPO, public, and private equity-backed companies managing rapid growth and transformation. With 300 professionals, the firm combines deep technical expertise with practical experience—including leadership from the Big Four—to help clients navigate their most complex and high-stakes challenges.

For more information, please visit https://williamsmarston.com/ and follow WilliamsMarston on LinkedIn.

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May 2026 has been a rollercoaster month for companies in the quantum computing industry, as leaders like D-Wave Quantum Inc. NYSE: QBTS, IonQ Inc. NYSE: IONQ, and Rigetti Computing NASDAQ: RGTI fell for much of the month, despite some promising Q1 results, before surging sharply toward month-end.

The swing upwards may be due to a recent announcement that the federal government is interested in providing incentives to a handful of domestic quantum firms. The U.S. Department of Commerce recently signed letters of intent with nine quantum computing companies—including both foundries and broader computing names—to provide more than $2 billion in funding through the CHIPS and Science Act.

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The immediate move upward in share price is to be expected, but investors will want to know what this might mean for the industry over the longer term. A closer look at the three companies above—among the biggest names in quantum and established leaders in the field—may provide more context.

D-Wave: A Big Boost to a Cash Pile That's Already SizableD-Wave is slated to receive $100 million in funding from the Commerce Department as part of the incentives plan. Specifically, this funding will go toward advancements in both annealing and gate-model systems.

D-Wave Quantum Today

$23.63 -0.19 (-0.81%)

As of 01:16 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$12.75▼

$46.75Price Target$36.40

The firm has distinguished itself among quantum companies by taking this dual-focused approach, and an influx of cash may make a big difference in its timeline as it tries to balance technological developments in two areas at once.

Cash has not been a major concern for D-Wave for quite some time, as the company now has a solid history of building up strong cash reserves (and deploying that cash for key acquisitions, among other things). While $100 million will certainly help, the company was not hurting for capital. In this way, it's possible that the federal influx will be less transformative for D-Wave than it might be for a smaller firm or one with more modest reserves. Of course, a boost to D-Wave's defense and government procurement access will also be beneficial.

Rigetti: Cash Influx to Support Scaling, But Challenges RemainRigetti is another company slated to receive $100 million in planned funding. In this case, the company is charged with addressing challenges necessary to develop and scale superconducting architectures.

Rigetti Computing Today

RGTI

Rigetti Computing

$21.35 +0.72 (+3.48%)

As of 01:16 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$10.30▼

$58.15Price Target$29.18

This could add to Rigetti's strong history as a developer of superconducting quantum systems and could smooth over some of the company's execution consistency issues and scaling concerns.

The cash infusion will likely help Rigetti extend its runway separate from the success of its shares, to build its supply chain access, and, like D-Wave, to boost its integration into various federal and defense programs. As a smaller firm than IonQ, Rigetti may see a larger boost than some other firms targeted for support. Still, challenges to scaling superconducting systems are formidable, and Rigetti still faces an uphill battle compared to established rivals like IBM NYSE: IBM.

IonQ: Indirect Benefits, If AnyAlthough the federal government outlined a list of quantum companies slated to receive funding, IonQ was not included in the initial announcement of May 21. Investors may see this as a slight, given that IonQ is one of the most prominent publicly traded quantum firms. However, with a market capitalization more than double that of D-Wave and nearly triple that of Rigetti, IonQ may be better established than some of its rivals.

IonQ Today

$57.95 -0.04 (-0.07%)

As of 01:16 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$25.89▼

$84.64Price Target$68.63

Further, the federal awards seem to be primarily focused on fabrication and materials engineering, and IonQ's unique trapped-ion approach may rely less on fabrication infrastructure than some other firms, making it a less obvious candidate for funding support.

Regardless of the reason for not being included on the list, IonQ will likely benefit only indirectly from an overall surge in quantum computing stocks. Many of these firms' share prices are still moving largely in tandem, and IonQ already got a big boost following the announcement.

Potential DownsidesThe three firms above could benefit in different ways from federal government support, but none of them will receive nearly as much funding as GlobalFoundries Inc. NASDAQ: GFS and IBM, each slated to receive several times the $100-million incentive above to support foundry activities. Further, with a government stake, there may be concerns about shareholder dilution to wrestle with, which could, in fact, give IonQ an advantage in at least one way.

Should You Invest $1,000 in D-Wave Quantum Right Now?Before you consider D-Wave Quantum, you'll want to hear this.

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The quantum computing sector is undergoing a fundamental repricing, but the catalyst is not what most investors assume.

While the U.S. government's recent $2 billion capital injection via the CHIPS and Science Act provides a significant operational runway, the more profound structural shift is happening at the commercial level. The industry has finally crossed the chasm from theoretical lab physics to utility-scale industrial infrastructure, driven by a rapid acceleration in enterprise bookings, the maturation of recurring cloud-based revenue models, and a structural pivot toward high-yield commercial wafer fabrication.

For investors, this marks a critical inflection point. The speculative phase, once defined by academic milestones and prototype demonstrations, is giving way to a new era of tangible enterprise adoption, scalable manufacturing, and defensible business models. This evolution demands a fresh look at the key players who are not just building the future of computing, but are also constructing the commercial and industrial foundation for it today.

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Building the Quantum BackboneThe clearest signal of the industry's maturation is the pivot from bespoke, low-yield research projects to standardized, high-yield commercial fabrication. Two companies exemplify this crucial infrastructure build-out, positioning themselves as the essential picks and shovels of the new quantum economy.

International Business Machines Today

IBM

International Business Machines

$272.97 -1.88 (-0.69%)

As of 01:16 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$212.34▼

$332.46Dividend Yield2.48%

P/E Ratio24.13

Price Target$304.17

International Business Machines NYSE: IBM is leveraging its deep manufacturing expertise to anchor the domestic supply chain.

The new Anderon subsidiary, capitalized with $1 billion in federal funding and a matching $1 billion internal investment, is set to become a dedicated 300mm quantum wafer fabrication facility.

The strategic move separates the high-capital-expenditure foundry business from its core operations, allowing IBM to build a foundational manufacturing moat. This provides investors with direct exposure to the sector's long-term industrial potential, backed by IBM's formidable balance sheet and existing profitability.

Similarly, GlobalFoundries NASDAQ: GFS is carving out a critical niche as a multi-platform foundry. Its new Quantum Technology Solutions division, bolstered by a $375 million CHIPS Act grant, is engineered to produce quantum components across multiple modalities, including superconducting, trapped-ion, and photonic systems.

This positions GlobalFoundries not as a bet on a single winning technology but as an indispensable partner for the entire ecosystem. GlobalFoundries is set to capture value regardless of which modality ultimately dominates specific applications, making it a powerful horizontal play on the sector's overall growth.

From Lumpy Hardware to Predictable Cloud RevenueFor the pure-play quantum operators, the business model itself is undergoing a transformation that significantly de-risks their investment profile. The historical reliance on lumpy, unpredictable hardware sales is being replaced by the stable, recurring revenue streams of quantum-as-a-service (QaaS) platforms, which are proving their commercial viability.

D-Wave Quantum Today

$23.63 -0.19 (-0.81%)

As of 01:16 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$12.75▼

$46.75Price Target$36.40

D-Wave Quantum NYSE: QBTS offers a compelling case study.

A superficial look at its Q1 2026 earnings reveals a sharp revenue contraction. A deeper analysis, however, shows this was due to a non-recurring hardware sale in the prior year's quarter.

The real story lies in the bookings for D-Wave Quantum, which surged an astonishing 1,994% to $33.4 million, driven by major enterprise and institutional deals. This demonstrates accelerating demand for its hybrid quantum-classical cloud services, establishing a predictable, high-margin revenue base that is far more valuable than one-off system sales.

This trend is echoed across the sector. Rigetti Computing NASDAQ: RGTI is driving adoption through its Quantum Cloud Services platform, which now provides access to its newly available 108-qubit Cepheus-1 system.

By focusing on cloud access, these operators lower the barrier to entry for enterprise clients, accelerating the discovery of commercial use cases in financial modeling, pharmaceutical research, and logistics optimization.

It’s Not a Winner-Takes-All RaceWhile concerns about a winner-takes-all scenario persist, the sector's diversification across modalities such as superconducting, neutral-atom, and annealing technologies reduces overall risk and fosters resilience.

The field includes various modalities, each with unique strengths:

Superconducting Qubits: Pursued by leaders like IBM and Rigetti Computing, this is one of the most mature technologies for building universal gate-model quantum computers.

Neutral Atoms: Championed by newcomers such as Infleqtion NYSE: INFQ, this approach offers the potential for large qubit counts and strong connectivity, attracting significant attention and capital following its public market debut.

Quantum Annealing: The specialty of D-Wave Quantum, this modality is already delivering commercial value for complex optimization problems today, even as the dual-platform quantum computing company develops its own gate-model systems.

This technological diversity is a sign of a healthy, expanding market. It suggests the future of quantum computing will not be a monolith but a rich ecosystem of specialized solutions tailored to different problems, much like the classical computing world has both central processing units and graphics processing units.

Balancing Near-Term Risk With Long-Term RunwayRigetti Computing Today

RGTI

Rigetti Computing

$21.35 +0.72 (+3.48%)

As of 01:16 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$10.30▼

$58.15Price Target$29.18

While the long-term outlook appears robust, investors must balance this potential against near-term financial realities. The pure-play operators are currently experiencing significant cash burn and deep margin compression as they invest heavily in research and development.

However, many are fortified with strong balance sheets. Rigetti Computing, for instance, holds approximately $569 million in cash with virtually no debt, providing a multi-year runway to execute its technology roadmap without the immediate threat of shareholder dilution.

For investors building a quantum portfolio, the paths to exposure are becoming clearer.

The infrastructure players, IBM and GlobalFoundries, offer a more conservative approach, grounding their quantum ambitions in profitable, cash-flow-positive legacy businesses.

The pure-play companies, including D-Wave Quantum, Rigetti Computing, and the recently public Infleqtion, present a higher-risk, higher-reward opportunity. Investors with a long-term horizon might consider watching these names closely as they translate technological breakthroughs into recurring enterprise revenue, marking the true beginning of the commercial quantum era.

Should You Invest $1,000 in International Business Machines Right Now?Before you consider International Business Machines, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and International Business Machines wasn't on the list.

While International Business Machines currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

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Source: TradePulse | May 27, 2026

Market Overview

Observations from Current Flow Activity

• Meta Platforms Inc. currently leads the group in aggregate flow score, supported by strong momentum and institutional order flow activity

• Software, AI, enterprise technology, and cybersecurity participation remains active, led by AppLovin Corporation, ServiceNow Inc., CrowdStrike Holdings, and Spotify Technology

• Aerospace, transportation infrastructure, and industrial participation are represented through Boeing Company, Canadian Pacific Kansas City Limited, and Firefly Aerospace Inc.

• Semiconductor and technology-related ETF exposure continues to attract interest through Direxion Daily Semiconductor Bear 3X Shares, ProShares UltraPro Short QQQ ETF, and GlobalFoundries Inc.

• Crypto and digital asset-related participation is represented through IREN Limited, which is showing positive institutional and retail interest

Interpreting Flow and Momentum Signals

It is important to distinguish between capital inflows and short-term price performance, as flow activity and directional momentum do not always align.

Sector Positioning: Broad Participation Across Markets

The latest sector breakdown reflects diversified participation across several major market groups:

• Social Media, Digital Advertising & Internet Platforms: Meta Platforms Inc., Reddit Inc.

• Software, AI & Cybersecurity: AppLovin Corporation, ServiceNow Inc., CrowdStrike Holdings, Spotify Technology S.A.

• Aerospace, Defense & Industrial Infrastructure: Boeing Company, Firefly Aerospace Inc.

• Semiconductors & Leveraged Technology ETFs: GlobalFoundries Inc., Direxion Daily Semiconductor Bear 3X Shares, ProShares UltraPro Short QQQ ETF

• Crypto, Digital Assets & High-Performance Computing: IREN Limited

• Broad Market & Index ETF Exposure: SPDR S&P 500 ETF Trust

While technology-related equities continue to populate the inflow rankings, the inclusion of aerospace, crypto-related equities, and diversified ETF exposure suggests broader institutional participation across multiple areas of the market.

Implications for Market Participants

From an analytical perspective, current flow trends suggest:

• Sustained activity within social media, AI infrastructure, enterprise software, cybersecurity, and digital advertising-related equities

• Tactical positioning through leveraged semiconductor and Nasdaq-focused ETFs

• Increased participation in aerospace, industrial infrastructure, crypto-related equities, and transportation-related companies

• Continued institutional activity within diversified market ETFs and growth-oriented technology names

When combined with earnings data, economic indicators, and technical analysis, flow data metrics can provide a more comprehensive understanding of market positioning.

Closing Perspective

This material is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Past performance and observed flows are not indicative of future results.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Quantum Computing's Commercial Breakout Has ArrivedGlobalFoundries NASDAQ: GFS Chief Financial Officer Sam Franklin said the chipmaker sees a path to significantly higher profitability over the next several years, driven by a mix shift toward faster-growing end markets, technology services, manufacturing productivity and better utilization of its existing footprint.

Speaking at a TD Cowen event hosted by analyst Krish Sankar, Franklin said GlobalFoundries is targeting an exit gross margin of about 30% in 2026, 40% by the end of 2028 and 45% over the longer term. He said the company’s margin plan is tied to investments already made, customer design-win momentum and an expanded ability to serve customers earlier in the design process.

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Margin Targets Rely on Mix, Services and Scale Quantum Stocks Just Got a Lifeline—Who Benefits Most?Franklin said the company’s roughly 10-point margin bridge from 2026 to 2028 is based on four main factors: mix, technology services, manufacturing efficiency and scale. He said mix alone could contribute about five points of margin improvement over the next few years.

Communications infrastructure and data center is one example of the mix shift, Franklin said. The segment grew a little under 30% last year, about 32% in the first quarter and is expected to grow in the high-30% range for the full year. He also pointed to automotive and IoT as important margin contributors.

3 Stocks Trump Could Back Next as USA Rare Earths Revives the Federal Catalyst TradeFranklin said GlobalFoundries is also building its technology services revenue, historically referred to as non-wafer revenue. He cited the company’s acquisition of MIPS and the pending acquisition of Synopsys’ ARC IP business as part of a broader effort to build RISC-V capabilities. Technology services have historically been about 8% to 10% of revenue, were above 13% in the first quarter and are expected to be 12% to 14% over the longer term, he said.

CapEx Increase Tied to Demand Visibility Sankar asked whether the company’s expected $1.3 billion to $1.4 billion in capital spending this year is mainly related to silicon photonics. Franklin said silicon photonics is a major beneficiary, but not the only area receiving investment.

Franklin said net capital spending is expected to be in the range of 15% to 20% of revenue this year, up from 7% to 10% in recent years. He said the increase reflects stronger demand visibility, the ability to expand efficiently within the company’s existing facilities and support from government funding and customer partnerships.

In addition to silicon photonics, Franklin cited demand for FDX solutions and silicon germanium capabilities, including applications in data center transimpedance amplifier drivers. He said the company’s current three-year model does not rely on modular expansion and remains within its longer-term target of net CapEx at about 20% of revenue.

Silicon Photonics and Data Center Growth in Focus Franklin said GlobalFoundries sees two phases of growth in silicon photonics. The first is tied to pluggable optical transceivers, where he said the company has a strong position and a growing customer base following its acquisition of AMF last year. The company is targeting a $1 billion silicon photonics run rate exiting 2028.

The second phase is expected to come from co-packaged optics, with an inflection point in late 2028 into 2029. Franklin said the company has set a target of $2 billion in silicon photonics revenue over the longer term. He said GlobalFoundries recorded two tape-outs on its co-packaged optics solution in the first quarter.

Franklin described GlobalFoundries’ SCALE platform as an ecosystem-based silicon photonics co-packaged advanced light engine solution. He said the company has invested more than $1 billion in R&D and CapEx over roughly a decade to develop its photonics capabilities. He added that GlobalFoundries can manufacture an electrical integrated circuit within its own technology nodes, while also supporting third-party EICs developed on single-digit nanometer nodes.

Franklin said the company is working with several founding members of the OCI MSA and believes its solution exceeds the demand requirements under those principles. He also said GlobalFoundries and TSMC are the only companies with “fully fledged” co-packaged optics solutions taping out in the market today, while adding that he does not expect the market to have a single winner.

Quantum, Satellite and Defense Opportunities Franklin said GlobalFoundries does not have a strong need to pursue single-digit nanometer logic, saying the company’s served available market can nearly double toward the end of the decade and into the 2030s using technologies greater than 10 nanometers. He pointed to automotive, IoT, communications infrastructure, data center and smart mobile as markets where the company’s portfolio fits customer requirements.

On satellite communications, Franklin said low Earth orbit satellite-related revenue is expected to grow from a “standing start” in 2024 to about $100 million in 2025. He said GlobalFoundries is supporting commercial satellite communications customers with RF front-end content and 22FDX solutions for beamforming applications.

Franklin also discussed aerospace and defense, which GlobalFoundries categorizes within IoT. He said the company remains a trusted foundry with a relationship with the U.S. Department of Defense, and noted that first-quarter technology services revenue included healthier mask and reticle-related revenue tied to aerospace and defense applications.

On quantum computing, Franklin called a recently announced $375 million CHIPS R&D grant a strong endorsement of GlobalFoundries’ role in the semiconductor ecosystem and quantum technology. He said the company aims to be a “quantum foundry of choice” with a modality-agnostic platform, using FDX, advanced packaging and quantum process design kits. Franklin said the U.S. government’s approximately 1% equity stake is viewed separately from grant funding and is not expected to include restrictions similar to prior CHIPS Act frameworks.

Capital Returns and Mubadala Ownership Franklin said GlobalFoundries’ long-term plan is not premised on growth in smart mobile devices, though the category remains important. Smart mobile accounted for about 34% of first-quarter revenue, the lowest level in the company’s history, he said, as other end markets have grown faster.

The CFO said the company is moving toward a more systematic capital allocation framework. He said GlobalFoundries plans to return about 50% of free cash after investments to shareholders, including through a newly initiated dividend. He also said the board approved $500 million in share repurchases at the start of the year, of which about $400 million has been completed.

Addressing Mubadala’s ownership, Franklin said management supports more float coming into the stock. He noted that Mubadala recently sold shares and said the activity reflects investor appetite for GlobalFoundries’ strategy. He described Mubadala as a “thoughtful and patient” majority shareholder and said the company continues to view its support positively.

About GlobalFoundries NASDAQ: GFSGlobalFoundries, Inc NASDAQ: GFS is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.

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].

Should You Invest $1,000 in GlobalFoundries Right Now?Before you consider GlobalFoundries, you'll want to hear this.

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Sivers' laser arrays to support GlobalFoundries' silicon photonics platform and SCALE™ optical engine solutions targeting a $25B Pluggable Optics market by 2030

, /PRNewswire/ -- Sivers Semiconductors AB (STO: SIVE), a global leader in photonics and wireless technologies, today announced a strategic collaboration with GlobalFoundries (NASDAQ: GFS) (GF), to develop advanced silicon photonics solutions for the high-growth AI infrastructure market.

Sivers Semiconductors' laser arrays will be integrated into reference designs built on GF's silicon photonics platform. The collaboration supports a range of optical connectivity architectures, including co-packaged optics (CPO), linear pluggable optics (LPO), and other emerging data center interconnect solutions. Sivers' laser arrays will also be available in GF's Silicon Photonics Co-packaged Advanced Light Engine (SCALE™) platform for next-generation optical sub-assemblies and light engine architectures. GF's SCALE CPO solution combines integrated photonic devices, coarse and dense wavelength-division multiplexing (CWDM, DWDM) and advanced packaging enablement to improve bandwidth density and system scalability.

"The rapid expansion of AI workloads and hyperscale data center architectures demand advanced photonics technologies that deliver higher bandwidth, improved energy efficiency, and scalable optical connectivity," said Raymond Biagan, CRO at Sivers Semiconductors. "Our collaboration with GlobalFoundries positions both companies at the leading edge of silicon photonics innovation."

"GlobalFoundries continues to see strong momentum for silicon photonics solutions as AI data center architectures evolve toward higher bandwidth density and improved power efficiency," said Vikas Gupta, Senior Fellow, Silicon Photonics Product Line at GlobalFoundries. "Pairing Sivers Semiconductors' laser array technology with our silicon photonics and SCALE CPO platforms provides our customers with advanced, scalable optical engine solutions for high-bandwidth co-packaged optics and optical interconnects."

For more information, please visit https://www.sivers-semiconductors.com/. 

About Sivers Semiconductors 

Sivers Semiconductors is a critical enabler of a greener data economy with energy-efficient photonics & wireless solutions. Our differentiated high-precision laser and RF beamformer technologies help our customers in key markets such as AI Datacenters, SATCOM, Defense and Telecom solve essential performance challenges while enabling a much greener footprint. For additional information, please visit us at: www.sivers-semiconductors.com. (SIVE.ST)

About GF 

GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF's talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.

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Combines GF's Physical AI portfolio with MIPS' RISC-V and software-to-silicon expertise to accelerate custom, software-first products for automotive, industrial and agentic edge platforms June 02, 2026 08:30 ET  | Source: GlobalFoundries Inc.

MALTA, N.Y., June 02, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced the completion of its previously-announced acquisition of Synopsys’ ARC Processor IP Solutions business. Combined with MIPS, by GF, the acquisition establishes GF as a technology partner offering customers a software-to-silicon capability purpose built for Physical AI. Synopsys retains and continues to expand its broad portfolio of interface and foundation IP, while GF assumes ownership and stewardship of the ARC processor IP business. MIPS combined with ARC brings together RISC-V processor IP, software tools, custom design and advanced manufacturing into a single offering, while also expanding GF’s engineering depth with world-class processor and AI talent to accelerate innovation.

“Physical AI is driving tighter integration of compute, software and process technology and customers need a partner who can support them across all three together,” said Sameer Wasson, CEO of MIPS, by GF. “With MIPS and ARC united, GF delivers the software, IP and custom silicon capabilities our customers need to build differentiated, application-specific solutions across automotive, industrial robotics and embedded systems, enabling us to operate as a holistic technology partner and engage throughout the design cycle.”

Agentic AI is rapidly extending beyond the data center into the physical world, driving new physical AI and autonomous platforms across automotive radar and advanced driver-assistance systems to industrial robotics, smart factories and the next generation of IoT devices. These systems must now sense, think, act and communicate in real time under tight power and latency constraints, making differentiated silicon spanning compute, AI acceleration, sensing and connectivity, critical to performance and adoption.

“As automotive and industrial systems become increasingly real-time and AI-driven, we need a technology partner that can bring together standards-based IP and optimized silicon design at scale, with the supply resilience our industry now requires,” said Thomas Schneid, VP of Automotive Software and Ecosystem, Infineon. “GlobalFoundries' combination of MIPS and ARC processor IP with its manufacturing scale provides companies strong end-to-end foundation to build differentiated, power-efficient solutions for next-generation intelligent systems.”

With the transaction complete, the ARC processor IP business becomes part of GF's expanding Physical AI portfolio within MIPS. Together, MIPS and ARC form a world-class RISC-V processor IP suite spanning high-performance, mid-range and ultra-low-power compute and AI cores, backed by more than 150 patents and a global ecosystem of over 300 IP customers. The acquired portfolio also includes the application-specific instruction set (ASIP) processor tools, ASIP Designer and ASIP Programmer, empowering customers to design and program custom processors tailored to their specific workloads. Paired with GF's design enablement, custom silicon capabilities, advanced software tools and global manufacturing footprint, customers gain a single partner from architecture to silicon, enabling early engagement, differentiated product development and faster time-to-market.

GF is working closely with Synopsys to ensure a smooth transition for employees, customers and partners. For more information about MIPS ARC processor solutions, visit mips.com/arc.

About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit gf.com.

© 2026 GlobalFoundries Inc. GF®, GlobalFoundries®, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

About MIPS
MIPS, by GlobalFoundries, is a leading provider of RISC-V IP, software and custom ASSP for physical AI platforms. With over 40 years of history in computing innovation and mission critical platforms, MIPS is uniquely positioned to advance the adoption of Physical AI in transportation, robotics, and other embedded markets. MIPS technology is based on the open RISC-V instruction set architecture and uses virtual platforms to enable a modular, standards-based approach to workload-focused solutions. For more information visit mips.com.

Forward-looking information
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Media Contacts:
Erica McGill
[email protected]

James Prior
[email protected]

Key Takeaways GFS completed Synopsys' ARC Processor IP acquisition, expanding its Physical AI portfolio.GFS combines ARC and MIPS to broaden RISC-V IP across performance and power needs.GlobalFoundries adds design tools, patents and AI talent to support custom intelligent systems. GLOBALFOUNDRIES Inc. (GFS - Free Report) has completed the acquisition of Synopsys’ ARC Processor IP Solutions business, a move that expands its presence in the growing Physical AI market. The transaction combines ARC’s processor intellectual property portfolio with MIPS, GlobalFoundries’ recently acquired processor IP business, creating a broader platform that spans processor design, software tools, custom bb development and manufacturing.

The deal comes as artificial intelligence workloads increasingly move beyond data centers into real-world applications such as advanced driver-assistance systems, industrial robotics, smart factories and connected devices. These applications require chips that can process data in real time while operating within strict power and latency limits, increasing the need for specialized semiconductor solutions.

By bringing together MIPS and ARC, GlobalFoundries gains a wider range of RISC-V processor IP covering high-performance, mid-range and ultra-low-power computing applications. The acquisition also adds application-specific instruction set processor tools, enabling customers to develop processors tailored to specific workloads and use cases. The combined portfolio includes more than 150 patents and serves a global ecosystem of over 300 IP customers, strengthening GlobalFoundries’ position in processor IP.

The transaction strengthens GlobalFoundries’ ability to participate earlier in the semiconductor design cycle rather than serving solely as a manufacturing partner. The company can now offer processor IP, software development tools, custom chip design support and manufacturing services through a more integrated software-to-silicon model. The acquisition also expands the company’s engineering capabilities with additional processor and AI talent.

The expanded portfolio is particularly relevant for automotive and industrial markets, where demand is rising for AI-enabled systems that require greater computing efficiency and reliability. As Physical AI adoption grows, the acquisition positions GlobalFoundries to address a broader portion of the semiconductor value chain while supporting customers developing application-specific intelligent systems.

GlobalFoundries’ Competitive LandscapeGlobalFoundries competes with KLA Corporation (KLAC - Free Report) and United Microelectronics Corporation (UMC - Free Report) across different segments of the semiconductor industry.

KLA benefits from rising demand for process control, inspection and metrology solutions as chip designs become more complex. Growing investments in advanced packaging, high-bandwidth memory and leading-edge semiconductor manufacturing continue to support demand for KLA’s portfolio. Increasing process control intensity across semiconductor production also remains a key growth driver.

UMC focuses primarily on mature-node semiconductor manufacturing and serves customers across automotive, industrial and communications markets. The company benefits from demand for specialty technologies and long-standing relationships with customers seeking cost-effective manufacturing solutions.

GlobalFoundries differentiates itself through its focus on essential semiconductor technologies, including RF, connectivity, power management and silicon photonics solutions. The addition of ARC processor IP capabilities further expands the company’s ability to support Physical AI applications through a combination of processor technology, custom silicon development and manufacturing expertise.

Overall, GlobalFoundries, KLA and UMC are positioned to benefit from growing semiconductor demand, though each company participates in different parts of the semiconductor value chain, creating distinct growth opportunities across manufacturing, process control and specialty technologies.

GFS’s Stock Price Performance & Valuation TrendShares of GlobalFoundries have increased 125.1% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 46.6% rise. 

Image Source: Zacks Investment Research

GFS stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 38.44, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.

Image Source: Zacks Investment Research

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

First end-to-end European chip manufacturing flow proven for aerospace, defense, IoT, consumer electronics and critical infrastructure

DRESDEN, Germany & DELFT, Netherlands--(BUSINESS WIRE)--GlobalFoundries (GF) and Qualinx today announced the successful completion of the first fully European-based, end-to-end semiconductor manufacturing flow at GlobalFoundries’ Dresden fab on its FDX technology. The milestone demonstrates that security-critical chips for aerospace, defense and critical infrastructure can be designed, manufactured and delivered entirely within Europe.

"This first secure product demonstrates that a fully European manufacturing path – from mask services to wafer production – is already a reality today,” said Qualinx CEO Tom Trill.

Share In this partnership, Qualinx served as the launch customer with a sophisticated GNSS SoC design for secure Positioning, Navigation and Timing (PNT) applications. The QLX3xx design targets sovereign GNSS-based PNT solutions for aerospace, defense and critical infrastructures—such as resilient timing and synchronization networks and highly integrated, ultra-low-power GNSS receivers at the connected edge.

GF and Qualinx Set a Benchmark for GF’s European Sovereign Manufacturing co-funded by the European Chips Act, GF’s Dresden fab is establishing its European sovereign manufacturing flow, consolidating every step of the production process — from design intake and mask services to wafer manufacturing — within the European Union. No sensitive design data or physical materials leave Europe, meeting the strict regulatory and security requirements of European governments, defense agencies, system integrators and critical infrastructure operators.

“We are demonstrating that Europe can rely on a secure, end-to-end semiconductor manufacturing flow that meets the highest requirements of aerospace and defense,” said Dr. Manfred Horstmann, Senior Vice President and General Manager at GlobalFoundries. “Our partnership with Qualinx marks the first operational milestone: it shows that complex, security-relevant ASIC designs for aerospace, defense, and critical infrastructure can already be industrialized today using a fully European, trusted manufacturing path.”

“This first secure product demonstrates that a fully European manufacturing path – from mask services to wafer production – is already a reality today,” said Tom Trill, CEO of Qualinx. “Together with GlobalFoundries, we’ve optimized our Digital RF technology on GF’s FDX with a secure end-to-end flow, culminating in the launch of our ultra-low-power reconfigurable GNSS SoC and Analog Front End. This milestone underscores our ability to deliver trusted, energy-efficient solutions while maintaining full control over IP, data and the supply chain within Europe.”

Roadmap: Scaling European Sovereign Manufacturing. The tape‑out realized with Qualinx represents the first operational milestone on the path toward a fully automated trusted European flow, which GF aims to establish in Dresden by the end of 2026. Starting in 2027, aerospace and defense, as well as critical infrastructure customers, will be able to use this automated flow as part of regular foundry engagements, including the integration of European IP partners, mask houses and OSAT service providers to ensure a consistent, European-anchored value chain.

Already today, a number of European system and module manufacturers from aerospace and defense, as well as operators of critical infrastructure, are in discussions with GF to map upcoming product generations onto GF’s sovereign manufacturing flow. The successful start with Qualinx serves as a strong proof point and reduces both technical and regulatory risks for subsequent programs.

To further strengthen its European sovereign manufacturing flow, GF is also working with leading European connectivity and cloud providers to secure data flows across the entire semiconductor value chain. In a joint project with Deutsche Telekom, GF is assessing how production-related data from design and tape-out through manufacturing, test and quality can be processed, transported and stored entirely within Europe on European networks, cloud infrastructures and data centers. The resulting practices in secure data routing, encryption and access management for highly sensitive A&D and critical infrastructure workloads will feed directly into the scaling of GF’s European sovereign manufacturing model.

About GlobalFoundries

GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data centers, smart mobile devices, the Internet of Things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.

About Qualinx

Qualinx is a European deep-tech semiconductor company redefining ultra-low-power connectivity for the connected edge. Its proprietary Digital Radio Frequency technology implements traditional analog receive-chain functions in digital hardware building blocks, powering GNSS, PNT and PVT chipsets and modules that deliver secure, scalable and reconfigurable tracking solutions for wearables, consumer electronics, automotive, fleet, pet, and asset tracking applications.

Founded in 2015 and headquartered in Delft, the Netherlands, Qualinx delivers next-generation Digital RF semiconductors designed for real-world deployment and long device lifecycles. Follow Qualinx on LinkedIn or learn more at https://www.qualinx.io.

For reasons of readability, the masculine form is used in this press release. Corresponding terms are intended to apply equally to all genders.

April 15, 2026 16:05 ET  | Source: Clearway Energy, Inc

PRINCETON, N.J., April 15, 2026 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) plans to report First Quarter 2026 financial results on Thursday, May 7th, 2026. Management will present the results during a conference call and webcast at 5:00 p.m. Eastern.

A live webcast of the conference call, including presentation materials, can be accessed through the Company’s website at http://www.clearwayenergy.com and clicking on “Presentations & Webcasts” under the Investor Relations section. The webcast will be archived on the site for those unable to listen in real time.

About Clearway Energy

About Clearway Energy, Inc.
Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the U.S. Our portfolio comprises approximately 12.9 GW of gross capacity in 27 states, including approximately 10.1 GW of wind, solar and battery energy storage systems and approximately 2.8 GW of conventional dispatchable power capacity that provide critical grid reliability services. Through our diversified and primarily contracted clean energy portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy, Inc.’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by its controlling investor, Clearway Energy Group LLC. For more information, visit  investor.clearwayenergy.com .

Investor:
Akil Marsh, 609-608-1500
[email protected]

Media:
Julia Poska, 630-254-1853
[email protected]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Columbia Sportswear (COLM - Free Report) is a stock many investors are watching right now. COLM is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.16. This compares to its industry's average Forward P/E of 17.88. Over the last 12 months, COLM's Forward P/E has been as high as 21.93 and as low as 13.73, with a median of 18.25.

Finally, investors should note that COLM has a P/CF ratio of 10.46. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 27.51. Within the past 12 months, COLM's P/CF has been as high as 18.79 and as low as 9.66, with a median of 15.21.

Value investors will likely look at more than just these metrics, but the above data helps show that Columbia Sportswear is likely undervalued currently. And when considering the strength of its earnings outlook, COLM sticks out as one of the market's strongest value stocks.

On April 20, 2026, Columbia Sportswear Co COLM shares rose 5.3% today, bringing the current price to $64.03. The stock has fluctuated between a 52-week high of $71.68 and a low of $47.47. The recent uptick in share price reflects a recovery trend, with a year-to-date gain of 16.8% and a notable 15.9% increase over the past month.

GF Value™ verdict: Current price at $64.03 versus GF Value™ at $84.93 indicates a 24.6% upside.GF Score™ of 82/100 suggests a strong overall performance, positioning COLM favorably against its peers.Notable signal: No insider transactions were reported in the last three months, indicating potential stability in management's view of the stock. Is COLM Overvalued or Undervalued? With a current price of $64.03, Columbia Sportswear Co COLM is assessed as undervalued according to the GF Value™, which estimates fair value at $84.93. This results in a margin of safety of approximately 24.6%, offering investors a potentially lucrative opportunity. The GF Valuation label categorizes COLM as "Modestly Undervalued," which suggests that the stock price may not fully reflect the company's intrinsic value at this time.

This undervaluation presents an opportunity for potential growth, but investors should remain cautious. Market conditions, competitive pressures, and broader economic factors can influence stock performance. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does COLM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.8x 17.5x Forward P/E 18.8x N/A The current P/E (TTM) for COLM is 19.8x, which is 13% above its 5-year median P/E of 17.5x. The forward P/E stands at 18.8x. This analysis indicates that the stock is trading above its historical valuation, which somewhat contrasts with the GF Value™ verdict of being undervalued. Therefore, while the P/E suggests a premium over historical averages, the overall intrinsic value assessment still points towards an opportunity.

What Does COLM's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 82 Financial Strength 7/10 Profitability 8/10 Growth 5/10 Valuation 8/10 Momentum 5/10 The strong GF Score™ of 82/100 indicates a solid overall performance for COLM, particularly highlighted by its Profitability rank of 8/10 and Valuation rank of 8/10. However, the Growth rank at 5/10 suggests that there may be room for improvement in this area, indicating a somewhat mixed growth trajectory compared to its peers.

What Are Insiders Doing with COLM Stock? In the past three months, there have been no reported insider transactions for Columbia Sportswear Co COLM . This lack of insider activity may suggest a stable outlook from the company's management regarding its current market performance and future prospects. Typically, significant insider buying or selling can provide insights into management's confidence in the company's direction.

What This Means for Investors Based on the GF Value™ assessment, Columbia Sportswear Co COLM is currently undervalued with a notable margin of safety. While the stock is trading above its historical P/E averages, the overall valuation suggests there is potential for growth. Investors may find COLM an attractive option, but should remain mindful of market dynamics that could affect performance.

For the complete analysis, visit the Columbia Sportswear Co COLM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is COLM's GF Score™?

COLM's GF Score™ is 82/100, indicating a strong overall performance compared to its peers and suggesting potential for higher long-term returns.

Is COLM overvalued or undervalued?

According to GF Value™, COLM is undervalued with a current price of $64.03 compared to a fair value estimate of $84.93, indicating a 24.6% upside.

What is COLM's P/E ratio?

COLM's P/E (TTM) is 19.8x, which is above its historical 5-year median of 17.5x, suggesting it is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Columbia Sportswear is expected to post y/y revenue and EPS declines in Q1.COLM faces tariff pressures, soft U.S. demand and cautious retailer orders weighing on margins.Inventory constraints and higher costs from ACCELERATE investments may pressure profits. Columbia Sportswear Company (COLM - Free Report) is likely to register declines in the top and bottom lines when it reports first-quarter 2026 earnings on Apr. 30, after market close. The Zacks Consensus Estimate for first-quarter revenues is pegged at $755.6 million, which indicates a 2.9% decrease from the year-ago period’s actual. This is in sync with the company’s guidance, which indicates a net sales decline of 2.5-4% to $747-$759 million.

The Zacks Consensus Estimate for first-quarter earnings per share has been unchanged at 35 cents over the past 30 days, which implies a decline of 53.3% from the year-ago period’s actual. Management guided earnings between 29 cents and 37 cents per share.

COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average.

Factors Likely to Influence COLM’s Q1 ResultsColumbia Sportswear’s first-quarter results are likely to reflect demand softness, tariff-related pressures and cautious channel behavior. At its fourth-quarter 2025 earnings call, the company had pointed to overall softness year to date, with the U.S. business continuing to lag due to soft consumer demand and reduced retail traffic. At the same time, retailers remained cautious in their ordering patterns, creating a tough sales environment.

Tariff headwinds are likely to have put pressure on first-quarter profitability. The impact of unmitigated tariffs was expected to be more pronounced in the early part of the year, as price increases had not yet fully offset higher costs on existing inventory. This timing dynamic is expected to create pressure on product margins in the first quarter.

Inventory-related dynamics are also likely to have influenced the quarterly performance. The company curtailed inventory purchases earlier as a precautionary measure following U.S. tariff announcements, which left it light on inventory and unable to fulfill some demand. Management also noted that in certain cases, demand exceeded supply, reflecting the impact of these inventory actions. Additionally, earlier-than-planned shipments of wholesale orders shifted some sales into prior periods, affecting year-over-year comparisons.

Weather remains an important external factor. Management highlighted that weather can significantly influence demand patterns across periods. Operating expenses are expected to have increased as the company continues investing in marketing and brand-building initiatives under its ACCELERATE growth strategy. With sales expected to have declined and margins under pressure, this dynamic is expected to have led to SG&A deleverage in the first quarter.

Despite near-term pressures, Columbia Sportswear noted continued strength in international markets and early signs of brand momentum from its ACCELERATE growth strategy. New product collections and differentiated marketing have helped drive consumer engagement, which could provide some support to first-quarter demand trends.

What the Zacks Model Predicts for COLMOur proven model does not conclusively predict an earnings beat for Columbia Sportswear this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

Columbia Sportswear has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

AMC Entertainment Holdings, Inc. (AMC - Free Report) currently has an Earnings ESP of +5.82% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter 2026 revenues is pegged at $997.7 million, indicating 15.7% growth from the figure reported in the year-ago quarter. The consensus estimate for AMC Entertainment’s earnings is pegged at a loss of 32 cents per share, implying an 44.8% improvement from the year-ago quarter’s actual. AMC delivered an earnings surprise of 10% in the last quarter.

Marriott International Inc. (MAR - Free Report) currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. MAR is likely to register a top-line increase when it reports first-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.59 billion, indicating a 5.3% rise from the figure reported in the prior-year quarter.

The consensus estimate for Marriott International’s earnings is pegged at $2.60 per share, implying 12.1% growth from the year-ago quarter’s actual. MAR delivered a negative earnings surprise of 2.3% in the last quarter.

Cintas Corporation (CTAS - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. CTAS is likely to register a top-line increase when it reports fourth-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.88 billion, indicating a 7.8% rise from the figure reported in the prior-year quarter.

The consensus estimate for Cintas’s earnings is pegged at $1.24 per share, implying 13.8% growth from the year-ago quarter’s actual. CTAS delivered an earnings surprise of 0.8% in the fiscal third quarter.

Columbia Sportswear (COLM - Free Report) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +84.40%. A quarter ago, it was expected that this maker of outdoor gear would post earnings of $1.22 per share when it actually produced earnings of $1.73, delivering a surprise of +41.8%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Columbia Sportswear, which belongs to the Zacks Textile - Apparel industry, posted revenues of $779.01 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.10%. This compares to year-ago revenues of $778.45 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Columbia Sportswear shares have added about 8.9% since the beginning of the year versus the S&P 500's gain of 4.2%.

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

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

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

Ahead of this earnings release, the estimate revisions trend for Columbia Sportswear was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.39 on $607 million in revenues for the coming quarter and $3.46 on $3.47 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Under Armour (UAA - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.

This sports apparel company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +62.5%. The consensus EPS estimate for the quarter has been revised 25% lower over the last 30 days to the current level.

Under Armour's revenues are expected to be $1.17 billion, down 0.9% from the year-ago quarter.