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Key Takeaways Lockheed Martin's Q2 adjusted EPS rose 8.9% to $7.94, beating estimates by 10%.LMT sales climbed 10.5% to $20.06B as all four business segments posted year-over-year growth.Lockheed Martin raised 2026 sales and EPS guidance, with free cash flow seen at $7.00B-$7.20B. Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.

Operational Highlights of LockheedNet sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 billion reported in the year-ago quarter.

The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.

LMT’s BacklogLMT’s backlog as of June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025.

The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.

Lockheed’s Segmental PerformanceAeronautics: Sales increased 9.3% year over year to $8.11 billion. The increase was primarily driven by higher sales from the F 35 program.

The segment reported an operating profit of $760 million against the operating loss of $98 million in the year-ago quarter. The operating margin expanded 1070 basis points (bps) to 9.4%.

Missiles and Fire Control: Quarterly sales improved a solid 19.5% year over year to $4.10 billion. This was on account of higher sales from integrated air and missile defense programs, as well as tactical and strike missile programs.

The segment’s operating profit increased to $594 million from $479 million in the prior-year quarter. The operating margin expanded 50 bps to 14.5%.

Space: The top line improved 5.7% year over year to $3.50 billion, driven by higher sales from strategic and missile defense programs.

The segment’s operating profit increased to $371 million. The operating margin contracted 30 bps to 10.6%.

Rotary and Mission Systems: Quarterly revenues increased 7.8% to $4.35 billion on a year-over-year basis, driven by higher sales of Sikorsky helicopter programs.

The segment reported an operating profit of $437 million against the operating loss of $172 million in the second quarter of 2025. The operating margin contracted 1430 bps to 10%.

Financial Condition of LMTLockheed’s cash and cash equivalents totaled $3.79 billion as of June 28, 2026, compared with $4.12 billion at the end of 2025.

Cash from operating activities amounted to $3.46 billion as of June 28, 2026, compared with $1.61 billion a year ago.

Long-term debt as of June 28, 2026, totaled $20.54 billion compared with $20.53 billion at the end of 2025.

Lockheed’s 2026 GuidanceLockheed expects to generate sales in the range of $79.75-$81.75 billion in 2026 compared with its previous guidance of $77.50-$80.00 billion. The Zacks Consensus Estimate is pegged at $79.16 billion, which lies above the midpoint of the company’s sales guidance.

LMT expects to generate adjusted EPS in the range of $29.95-$30.65 compared with its previous guidance of $29.35-$30.25. The consensus estimate is currently pegged at $29.97 per share, which lies above the midpoint of the company’s guidance.

Lockheed expects to generate cash from operations in the range of $9.20-$9.40 billion.

It expects capital expenditure of approximately $2.00-$2.40 billion.

Lockheed expects to generate a free cash flow of approximately $7.00-$7.20 billion.

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

Recent Defense ReleasesTeledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.

Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.

NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.

AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.

In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.

Two companies capture the past and future of defense investing. Palantir Technologies (PLTR -1.98%) is the AI software upstart that has soared so far it recently passed Lockheed Martin (LMT +10.00%) in total market value, while Lockheed is the century-old prime contractor that builds the jets and missiles themselves. Both are riding somewhat of a wave of rising military spending, so which one wins over the next five years? At today's prices, the answer comes down to a single question: How much are you willing to pay for growth?

The case for Palantir Palantir is the growth engine of the two by a mile. Its software helps militaries turn oceans of data into fast decisions, and it has landed marquee wins such as the Maven Smart System (MSS) now used by the Pentagon and NATO. In short, MSS is an AI-powered command-and-control software platform developed by the U.S. Department of Defense and Palantir.

Image source: Getty Images.

Earnings are exploding, with per-share profit forecast to jump roughly 78% this year, and its commercial business is compounding alongside its government work. If artificial intelligence becomes the nerve center of modern warfare, Palantir is positioned to be its brain.

The catch is the price. Even after falling more than 25% this year, Palantir trades at roughly 90 times forward earnings, a valuation that assumes years of flawless, blistering growth. At that multiple, the stock can post terrific business results and still fall if growth merely slows, which is exactly the volatility investors have already felt. You're paying a premium today for a future that has to arrive on schedule.

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The case for Lockheed Martin Lockheed is the opposite profile: modest growth at a modest price. It trades near 20 times earnings, pays a dividend yielding around 2%, and buys back stock, so shareholders get paid while they wait. Its backlog is enormous and funded, demand for the F-35 fighter remains strong, and it is one of a dozen vendors selected for the Golden Dome missile-defense initiative, worth up to $3.2 billion in aggregate agreements, with plans to demonstrate a space-based interceptor by 2028. With global defense budgets climbing toward record levels, Lockheed's revenue is dependable in a way software contracts are not.

The downside is the ceiling. Sales are growing only around 5% a year, and Lockheed has a history of costly charges on complex programs that can dent earnings. This is a steady compounder, not a rocket.

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Which wins at these prices? Here's my analytical read. Over five years, Palantir can only win if it sustains extraordinary growth and holds onto a rich valuation, and doing both for that long is a tall order that history rarely rewards. Lockheed, by contrast, needs far less to go right. At 20 times earnings with a dividend, a funded backlog, and a once-in-a-generation surge in defense spending behind it, it offers a more reliable path to solid returns with much less downside if the mood turns.

So at today's prices, I lean toward Lockheed Martin as the better risk-adjusted buy. You're paying a fair price for durable, government-funded growth plus income, rather than betting that a stock keeps defying gravity. That said, I want to be balanced: If Palantir's growth stays torrid and AI truly reshapes defense, its higher ceiling could let it win on absolute returns.

It's the boldest bet for investors who can stomach the volatility and the valuation. This is a classic contest between a cheap, dependable compounder and an expensive, explosive grower. For most investors focused on risk and reward at current prices, Lockheed Martin is the sturdier choice for the next five years, backed by real budgets and a real dividend.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Estee Lauder (EL - Free Report) , which belongs to the Zacks Cosmetics industry.

When looking at the last two reports, this beauty products company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 21.92%, on average, in the last two quarters.

For the most recent quarter, Estee Lauder was expected to post earnings of $0.66 per share, but it reported $0.91 per share instead, representing a surprise of 37.88%. For the previous quarter, the consensus estimate was $0.84 per share, while it actually produced $0.89 per share, a surprise of 5.95%.

Price and EPS Surprise

For Estee Lauder, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Estee Lauder currently has an Earnings ESP of +2.72%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 19, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Key Takeaways Broadcom leads on scale, diversification, revenue visibility and a lower forward sales valuation.AI semiconductor bookings topped $30B, with major customer commitments extending through 2028.Cerebras posted 94% revenue growth but remains unprofitable, concentrated and capital-intensive. Cerebras Systems (CBRS - Free Report) and Broadcom (AVGO - Free Report) are beneficiaries of the AI infrastructure boom. Cerebras develops proprietary AI processors and complete AI computing systems, while Broadcom is a diversified semiconductor company with a dominant position in custom AI accelerators (XPUs), networking silicon and infrastructure software.

So, Cerebras or Broadcom, which has an edge now?

The Case for CBRS StockCerebras is a high-growth, specialized AI-compute company focused on wafer-scale processors and ultra-fast inference. The company’s differentiated wafer-scale architecture delivers inference speeds more than an order of magnitude faster than conventional GPUs for certain workloads. Partnerships with OpenAI and Amazon Web Services (AWS) further validate the company’s technology and expand its long-term growth opportunity. CBRS delivered impressive first-quarter 2026 growth with revenues surging 94% year over year to $193.4 million, driven by a 59% increase in hardware revenues and a 178% jump in cloud and other services revenues.

Cerebras’ partnerships with OpenAI and AWS are important competitive endorsements. The company’s OpenAI agreement covers 750 megawatts of inference capacity and is valued at more than $20 billion over several years. The AWS partnership could broaden access to enterprise customers by deploying Cerebras systems within AWS data centers. Nevertheless, CBRS remains dependent on a relatively limited group of customers, including OpenAI, G42, MBZUAI and AWS, which is a concern for investors.

However, Cerebras is not yet profitable and is expected to suffer from higher spending. The company reported a GAAP operating loss of $15 million and a net loss of $14 million in the first quarter of 2026. Although CBRS’ core operating loss narrowed to $3.5 million, it expects profitability to deteriorate as it invests heavily in data-center infrastructure. For the second quarter of 2026, Cerebras expects gross margin to decline to 36-38% in the second quarter from 47% in the first quarter due to rented infrastructure and accelerated cloud-capacity deployment.

The Case for AVGO StockBroadcom has been benefiting from rising AI revenues, driven by strong demand for XPUs despite lower margins on the chips that are hurting the revenue mix. AI semiconductor revenues reached a record $10.8 billion in the fiscal second quarter, suggesting a 143% year-over-year surge. Management expects it to rise to $16 billion in the fiscal third quarter, indicating more than 200% year-over-year growth.

AVGO management disclosed that AI semiconductor bookings exceeded $30 billion during the fiscal second quarter, nearly three times quarterly AI shipments. CEO Hock Tan stated that visibility now extends through 2028, supported by commitments from major customers including Google, OpenAI, Anthropic and Meta Platforms. Remaining Performance Obligations reached $164.6 billion, including commitments under new custom AI accelerator contracts. These agreements provide exceptional long-term revenue visibility.

Broadcom is not only supplying custom AI accelerators but also dominates AI networking with Tomahawk 6 Ethernet switches, Jericho fabric solutions, co-packaged optics and industry-leading SerDes technology. Networking represented almost 40% of AI semiconductor revenues in the fiscal second quarter, expanding the company's content per AI cluster.

However, Broadcom has guided for the gross margin to decline to 74% in the third quarter of fiscal 2026 from 77.1% in the fiscal second quarter due to a greater mix of lower-margin AI semiconductor revenues, raising concerns that profitability may not scale as quickly as revenues. AVGO expects its consolidated operating margin to remain around 67% in the fiscal third quarter despite a significant increase in the semiconductor revenue mix.

AVGO’s Earnings Estimate Revisions Go North, CBRS Loss ImprovesThe Zacks Consensus Estimate for AVGO’s fiscal 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating a 72.14% increase over 2025’s reported figure.
 

The consensus mark for Cerebras’ 2026 loss has improved from $1.14 per share to 89 cents per share over the past 30 days.

AVGO and CBRS’ Performance, Valuation DetailsBroadcom shares have outperformed Cerebras in the past month. While AVGO shares have returned 3.9%, CBRS has jumped 15.1%.

AVGO vs. CBRS Stock Performance
Image Source: Zacks Investment Research

Both Broadcom and Cerebras are overvalued, as suggested by the Value Score of D.

In terms of forward 12-month price/sales, Broadcom shares are trading at 12.14X, lower than Cerebras’ 24.62X.

AVGO and CBRS Valuation
Image Source: Zacks Investment Research

ConclusionBroadcom appears to be the stronger choice for investors seeking a more balanced risk-reward profile. While Cerebras offers compelling long-term upside through its differentiated AI architecture and high-growth partnerships, its business remains concentrated, capital intensive and unprofitable. Broadcom, by contrast, combines explosive AI growth with a diversified business model, strong cash generation, unmatched customer commitments extending through 2028 and a more reasonable valuation relative to Cerebras. Although margin pressure from AI chip mix remains a near-term headwind, Broadcom's scale, broad AI portfolio and long-term revenue visibility make it the more attractive AI infrastructure investment at current levels.

Broadcom currently carries a Zacks Rank #2 (Buy), while Cerebras has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Kimball Electronics (KE) and Rockwell Automation (ROK). But which of these two companies is the best option for those looking for undervalued stocks?

Retail investors are searching for the next big winners — and Jessica Inskip says the opportunity sits inside one emerging theme: interconnectivity. She breaks down her top high‑risk, high‑reward picks and explains why tokenized securities, stablecoin settlement, and new trading rails could unlock major upside.

Premium consumer brands, once a stable bet even in times of market volatility, are no longer quite so insulated from broader economic pressures. Investors have increasingly begun to separate companies, favoring those with true pricing power and brand momentum over those that have struggled as demand has weakened amid slower discretionary spending, inflation, tariff uncertainty, and other factors.

Still, a Deloitte survey of luxury executives found that just over two-thirds (66.9%) expected revenues to stay stable or grow throughout 2026, a suggestion that investors may be cautiously optimistic for the sector. However, it's likely that any recovery in the space will be lumpy and more pronounced in some companies than others. For investors, the question becomes which firms are emerging as winners and losers in the premium retail stock wars.

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Deckers Looks Good Heading Into EarningsDeckers Outdoor Today

$97.79 -4.68 (-4.57%)

As of 02:44 PM Eastern

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

52-Week Range$78.91▼

$126.50P/E Ratio13.89

Price Target$121.11

Deckers Outdoor Corp. NYSE: DECK, the company behind brands like UGG, HOKA, and Teva, heads into its next earnings report with strong momentum, even as shares have zig-zagged up and down throughout much of 2026. The company's revenue trajectory is strong, as its fiscal 2026 revenue (for the year ended March 31, 2026) climbed by 10% and earnings per share (EPS) grew by 11% year over year (YOY).

HOKA and UGG, in particular, are distinguishing themselves, posting excellent revenue growth, strong demand, innovations to product lines, and improving brand recognition and loyalty. HOKA has been successful in gaining market share in the premium running footwear space. At the same time, UGG is a solid cash generator for Deckers, and its expansion outside of winter boots means more relevance for customers throughout the year. At the same time, Deckers has done well managing inventory, maintaining gross margin, and seeking out opportunities for international growth.

Analysts are somewhat mixed on DECK shares, with nine calling the stock a Buy but a majority assigning 13 Holds and two Sells. At the same time, Wall Street sees some 18% in potential upside and more than 10% in projected earnings growth in the coming year.

Lululemon's Pressures Are Significant, Increasing Risk for Investorslululemon athletica Today

LULU

lululemon athletica

$111.08 -2.29 (-2.02%)

As of 02:44 PM Eastern

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

52-Week Range$104.44▼

$225.98P/E Ratio8.96

Price Target$148.35

Athletic apparel firm lululemon athletica NASDAQ: LULU is more of a mixed bag. The firm retains excellent brand recognition in the premium athletic space, and revenue growth in China has been a bright spot (Q1 2026 revenue for China increased by 30% YOY).

However, at the same time, LULU stock has suffered as sales growth in the United States has slowed. In the latest quarter, for example, sales increased by just 4.3% YOY and North American revenue declined by 3% over the same period. Margins are seeing pressure from tariffs and higher operating costs, among other factors, and management sees continued declines in this area for Q2. Perhaps worst of all, the firm trimmed its full-year revenue outlook and now anticipates either flat YOY or even down marginally compared to 2025. To make matters worse, some recent product launches have been met with mixed reviews, and pressure continues to grow from competitors.

Still, it may not be time to write LULU off completely. With a new CEO coming on board later in the year, the company has an opportunity to correct its path. With shares down some 46% year to date (YTD), some analysts see a potential floor in sight. Despite a Reduce rating overall, LULU shares have a consensus price target indicating about 31% in possible upside. However, the company will need to make some serious improvements on execution, revenue, margin, and its U.S. business in order to avoid becoming a value trap.

VFC Struggles to Right the Ship as Investors FleeV.F. Today

$16.47 -0.70 (-4.08%)

As of 02:44 PM Eastern

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

52-Week Range$11.10▼

$22.27Dividend Yield2.19%

P/E Ratio25.73

Price Target$18.58

Known for brands including The North Face and Vans, VF Corp. NYSE: VFC seems to be stuck in the process of turning around. Weak performance for some of its key brands, compressed margins, and surging debt have all weighed on the company, making shares stagnate in the process. While Vans—one of the company's flagships—is in the midst of a turnaround, it remains incomplete based on a 5% YOY global sales decline in the latest quarter. Still, the U.S. recovery is underway and could lead to renewed performance in other regions.

While VF institutes cost-cutting measures, attempts to simplify its portfolio, and leans on the strength of the relatively resilient North Face brand, significant risks remain for this company. An overall Hold rating across Wall Street seems more than justified here. Investors might use the opportunity to bail on VFC shares—indeed, this has already been happening, as the stock saw a 22.4% increase in short interest over the past month.

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With a yield of over 13%, AGNC Investment (AGNC -2.10%) is a stock that frequently pops up on dividend investors' radars. For those unfamiliar with AGNC, it is a mortgage real estate investment trust (mREIT) that owns a portfolio of agency mortgage-backed securities (MBS). Since these bonds are backed by government agencies, they carry essentially no default risk. However, the value of MBS can be greatly affected by movements in mortgage spreads and interest rates, and with the Fed now considering an interest rate hike rather than a cut, the environment has suddenly changed for AGNC.

Image source: The Motley Fool.

While AGNC noted the sudden shift in rate expectations with a new Fed chief, it believes the supply of new mortgages will be materially lower this year, while demand for MBS should remain high. As such, it thinks spreads can remain within 120 to 160 basis points of Treasuries and perhaps even tighten. Lower spread volatility is generally good for AGNC and can allow it to invest with more leverage.

Meanwhile, AGNC continues to generate strong net spread and dollar roll income (dollar roll is a hedging strategy used in MBS markets to avoid losses when MBS values decline), which is used to cover its dividend. For Q2, this came in at $0.40 per share, while it paid $0.36 per share in dividends. That was an increase from $0.38 a year ago. Its net interest spread was basically unchanged at 2%, as was its at-risk leverage of 7.4 times.

AGNC's tangible book value (TBV) also rose in the quarter, increasing by $0.20 per share to $8.58 at the end of Q2, up from $8.38 at the end of Q1. TBV is the value of AGNC's MBS portfolio, and it is the metric by which mREITs are normally valued. It said that as of the end of last week, its TBV was down about 1%, or a little less than 2% when accounting for its monthly dividend accrual.

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Should investors hold the stock? Mortgage REITs are always trying to balance the impact of mortgage rates, spreads over Treasuries, prepayments, and a host of other factors. AGNC management has done a solid job of this over the past couple of years, especially in generating solid income to cover its robust dividend.

Right now, the stock looks like it will continue to be a solid income generator. However, unless spreads tighten significantly, I don't see much additional upside beyond its current dividend payout, given that the stock trades well above its TBV per share.

Custom Health Holdings Inc (TSX:CHLT) just landed Buy-rated coverage from Stifel, with analysts setting a C$12 price target and pointing to upside as high as C$18 a share.

The pitch: a pill-dispensing platform that's quietly solving one of healthcare's most expensive headaches.

That headache is medication non-adherence, which costs the US healthcare system an eye-watering $0.5 trillion a year. Only about half of prescriptions get taken as directed, and the fallout, hospitalizations, ER visits, disease progression, adds up fast.

Custom Health's answer is a full-stack system: a device called Spencer that dispenses and monitors pills at home, an AI-powered platform called AdhereNet, and a network of automated pharmacies behind it. Stifel says the result is a 98% adherence rate, far above the industry norm.

Insurers have taken notice. Custom Health already has more than 100,000 patients contracted through deals with major US health plans, including Humana (NYSE:HUM), Elevance and BlueCross BlueShield, plus pain management specialists Commonwealth and BKC. Stifel expects the company to nearly triple its active patient count next year, from about 6,000 to 17,000, helped along by its recent acquisition of InnovativeRx, with revenue more than doubling.

One area where Custom Health has a particularly good story to tell: opioids. The platform helps physicians safely wean patients off opioid prescriptions, which lines up with the NOPAIN Act, a law that kicked in this past January and sweetens Medicare reimbursement for opioid-reduction efforts. Better adherence also tends to boost Medicare Star ratings, translating into higher rebates and bonus payments for health plans.

The typical Custom Health patient is in their 50s or 60s and juggling more than 10 chronic medications, exactly the population set to grow as the US and Canada keep aging.

Stifel thinks the InnovativeRx deal could unlock 4x revenue growth over the next two to three years as Custom Health works through 30,000 of the 100,000 patients already under contract, with more acquisitions still on the table.

The margin story is arguably the most compelling part: the Spencer device alone represents close to a $200 million recurring revenue opportunity at gross margins north of 60%. Layered on top of traditional pharmacy dispensing margins around 20%, Stifel sees a path to EBITDA margins in the high teens, well above what most pharmacy peers manage.

Stifel's initiation wasn't the only news out of Custom Health this month. The company has since signed a binding letter of intent to acquire Wisconsin-based Evergreen Pharmacy LLC, a deal expected to add more than US$78 million in annual revenue.

The price tag is modest relative to that boost: US$3.5 million total, including at least US$1 million in prescription drug inventory and US$450,000 in net working capital, cash on closing, with US$175,000 held back for six months as an indemnity cushion.

Evergreen is licensed to operate in Wisconsin, Illinois and Michigan, with room to expand into Minnesota, and specializes in managing complex therapies across behavioral health, dermatology, gastroenterology, infectious disease, rheumatology and neurology. It brought in about US$78.8 million in revenue and US$0.6 million in normalized EBITDA for the 12 months ended December 31, 2025, and posted positive net income in both fiscal 2025 and the first quarter of 2026.

For Custom Health, the deal fits neatly with the growth story Stifel laid out: more patients on complex drug regimens, a bigger Midwest footprint, and another building block toward that four-times revenue potential.

Key Takeaways FCX beat earnings and revenue estimates despite lower copper and gold sales volumes. Freeport projects 2026 sales of 3.1B pounds of copper, 650,000 ounces of gold and 93M pounds of molybdenum. FCX expects 2026 operating cash flow of about $8.3B and capital spending of around $4.3B. Freeport-McMoRan Inc. (FCX - Free Report) recorded net income of $984 million or 68 cents per share for the second quarter of 2026, up from $772 million or 53 cents per share in the year-ago quarter. 

Barring one-time items, adjusted earnings per share were 74 cents, up around 37% year over year from 54 cents. The figure topped the Zacks Consensus Estimate of 62 cents. 

Revenues declined around 7.3% year over year to approximately $7.03 billion. The figure surpassed the Zacks Consensus Estimate of $6.47 billion. Lower copper and gold volumes were partly offset by significantly higher realized metal prices.

Freeport-McMoRan Inc. Price, Consensus and EPS SurpriseFCX’s Operational HighlightsCopper production fell around 18.4% year over year to 786 million pounds in the reported quarter. 

Consolidated copper sales declined approximately 30.1% year over year to 710 million pounds. The fall primarily resulted from lower operating rates at PTFI during the phased ramp-up of the Grasberg Block Cave underground mine.  

The company sold 123,000 ounces of gold in the quarter, down 76.4% year over year. Freeport also sold 25 million pounds of molybdenum, up 13.6% from the prior-year quarter.  

Consolidated average unit net cash costs per pound of copper were $1.97, up around 74.3% from $1.13 a year ago. The figure missed our estimate of $2.12 per pound. 

The average realized copper price was $6.17 per pound, up around 35.9% year over year. The figure exceeded our estimate of $6.05 per pound. The average realized gold price rose around 37.3% year over year to $4,520 per ounce. The figure marginally lagged our estimate of $4,536.26. The average realized molybdenum price was $28.75 per pound, up around 36.3% year over year. It surpassed our estimate of $27.73. 

Freeport’s Financial PositionCash and cash equivalents at the end of the quarter were $4.1 billion, down around 9.1% year over year. Total debt was roughly $9.4 billion, up modestly from $9.25 billion at the end of the year-ago quarter. 

Cash flows provided by operating activities were $2 billion in the reported quarter, down around 6.7% year over year. Capital expenditures totaled $1.1 billion compared with $1.26 billion in the prior-year quarter.  

FCX’s GuidanceFor full-year 2026, consolidated sales volumes are expected to 3.1 billion pounds of copper, 650,000 ounces of gold and 93 million pounds of molybdenum. 

This includes projected third-quarter sales of 750 million pounds of copper, 160,000 ounces of gold and 22 million pounds of molybdenum. 

Consolidated average unit net cash costs are expected to average $1.90 per pound of copper for 2026, including $2 per pound in the third quarter. Freeport also projects full-year operating cash flows of $8.3 billion and capital expenditures of around $4.3 billion. 

FCX’s Price PerformanceShares of Freeport have gained 45.8% over the past year compared with a 58.2% rise in its industry. 

Image Source: Zacks Investment Research

FCX’s Zacks Rank & Key PicksFCX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Carpenter Technology Corporation (CRS - Free Report)  and Ternium S.A. (TX - Free Report) .  

CSW Industrials is expected to report second-quarter results on July 30. The Zacks Consensus Estimate for CSW’s second-quarter earnings is pegged at $3.66 per share. It carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CRS is slated to report second-quarter results on July 30. The Zacks Consensus Estimate for earnings is pegged at $3.03 per share. CRS has a Zacks Rank #1 at present.

Ternium is scheduled to report second-quarter results on Aug. 4. The Zacks Consensus Estimate for TX’s second-quarter earnings is pegged at $1.06 per share. It currently carries a Zacks Rank #1.

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SummaryFreeport-McMoRan delivered a solid Q2, beating EPS and revenue estimates, and reaffirmed full-year guidance despite recent stock volatility.FCX lowered 2026 unit cost guidance to $1.90/lb, raised molybdenum production targets, and remains well positioned with $962 million in Q2 free cash flow.I maintain a “Buy” rating, with fair value near $81 based on $3.40 NTM EPS and a 24x P/E multiple, supported by strong copper prices and operational execution.Technically, FCX faces resistance in the low $70s but benefits from a rising 200-day moving average, with $55 as key support. Michel Lunanga/Getty Images News

It has been a frustrating few months for Freeport-McMoRan Inc. (FCX) investors. Shares have fluctuated wildly since January and have been little changed since my April 2026 “Buy” rating. Still, the world’s largest copper miner has seen its stock return 24% so

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Public Storage is expected to post higher Q2 revenues but lower core FFO per share year over year.PSA completed the National Storage Affiliates acquisition, adding 1,000 properties and 550,000 units.PSA expects the deal to lift FFO per share through annual synergies over the next three to four years. Public Storage (PSA - Free Report) is slated to release second-quarter 2026 results on July 29, after market close. The quarterly results are expected to reflect an increase in revenues but a dip in core funds from operations (FFO) per share.

In the last reported quarter, this self-storage real estate investment trust (REIT) reported a core FFO per share of $4.22, surpassing the Zacks Consensus Estimate of $4.13. Results were backed by stable same-store occupancy, providing a steady operating base as lease-up assets added incremental growth.

Over the last four quarters, Public Storage outpaced the Zacks Consensus Estimate on all occasions, the average surprise being 1.55%. The graph below depicts the surprise history of the company:

On July 22, 2026, Public Storage announced completion of the acquisition of National Storage Affiliates Trust, adding more than 1,000 properties and 550,000 storage units. NSA shareholders received 0.14 Public Storage shares for each NSA share.

Public Storage expects the deal to boost FFO per share within the first year and eventually add about $0.35-$0.50 per share through $110-$130 million in annual synergies over three to four years. A separate joint venture will hold 313 former NSA properties, with Public Storage retaining a minority stake and managing the portfolio.

Let's dive deep to get an understanding of the factors that may impact Public Storage’s second-quarter 2026 results.

Factors at Play and Projections for PSA’s Q2 ResultsPublic Storage’s Q2 2026 results are likely to benefit from its strong brand, scale and PS Next operating platform, which supports digital customer engagement, pricing and cost efficiency. Stable occupancy, lower churn and improving move-in rent trends should have provided some support, while non-same-store properties, acquisitions, development projects and ancillary income are likely to have remained important growth drivers.

The Zacks Consensus Estimate for second-quarter revenues from self-storage facilities is pegged at $1.14 billion. This suggests an increase from the $1.12 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $90.8 million, up from the $82.4 million registered in the comparable period last year.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.21 billion. This indicates a 1% year-over-year increase.

However, same-store revenue growth may have softened as weaker rental trends from late 2025 flowed through year-over-year comparisons. Sun Belt supply pressure, the Los Angeles rent restrictions and the shift of certain property-tax benefits into the first quarter could also weigh on results.

PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the second-quarter core FFO per share has remained unchanged at $4.25 over the past two months. It indicates a marginal decrease year over year.

Here Is What Our Quantitative Model Predicts for PSA:Our proven model does not conclusively predict a surprise in terms of FFO per share for Public Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT sector — Digital Realty Trust (DLR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.

Digital Realty is slated to report quarterly numbers on July 23. DLR has an Earnings ESP of +2.30% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Key Takeaways Ventas is expected to report year-over-year revenues and normalized FFO per share growth in Q2 2026.Strong SHOP performance, positive net move-ins and high occupancy could support quarterly results.Higher interest expenses and lower triple-net rental income may weigh on Ventas' second-quarter performance. Ventas, Inc. (VTR - Free Report) is scheduled to report second-quarter 2026 results on July 29, after market close. The quarterly results are likely to have displayed year-over-year growth in revenues and normalized funds from operations (FFO) per share.

In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 94 cents, beating the Zacks Consensus Estimate of 91 cents by 3.3%. The quarterly results reflected a year-over-year increase in same-store cash net operating income on the strong performance of the senior housing operating portfolio (SHOP) and outpatient medical research (OM&R) portfolio.

Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in three of the preceding four quarters and met once, with the average beat being 1.70%. The graph below depicts this surprising history:

Factors at Play for VTRIn the second quarter of 2026, Ventas’ SHOP is likely to have benefited from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is generally higher than that of the average population. With the segment witnessing positive net move-ins, occupancy is expected to have remained high.

A well-diversified tenant base with long-term leases is expected to have contributed well to stable rental revenue generation, boosting the top line.

However, the triple-net leased properties are likely to have been affected during the to-be-reported quarter. Further, high interest expenses are expected to have cast a pall on the company’s performance to some extent.

VTR’s Q2 ProjectionsThe Zacks Consensus Estimate for second-quarter 2026 revenues is currently pegged at $1.67 billion, implying a 17.36% increase from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter resident fees and services is pegged at $1.29 billion, suggesting an increase from $1.03 billion reported in the year-ago period.

The consensus mark for outpatient medical & research (OM&R) portfolio rental income for the second quarter is pegged at $230.4 million, indicating an increase from $220.8 million reported in the year-ago period.

Ventas’ activities during the soon-to-be-reported quarter have been adequate to gain analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has increased a cent to 96 cents over the past two months. The figure implies an increase of 10.34% from the year-ago quarter’s reported number.

However, the Zacks Consensus Estimate for second-quarter triple-net leased properties' rental income is pegged at $124.2 million, suggesting a decrease from $152.7 million reported in the year-ago period.

What Our Quantitative Model Predicts for VTROur proven model doesn’t conclusively predict a surprise in terms of FFO per share for Ventas this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

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

Stocks That Warrant a LookHere are two stocks from the broader REIT industry, Extra Space Storage (EXR - Free Report) and Cousins Properties (CUZ - Free Report) , that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

EXR, which is scheduled to report quarterly results on July 28, 2026, has an Earnings ESP of +0.39% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins Properties is slated to report quarterly numbers on July 30, 2026. CUZ has an Earnings ESP of +0.45% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Key Takeaways International contract wins across Kuwait, Iraq and Suriname strengthen Halliburton's long-term growth.Technology-led drilling and automation solutions improve efficiency, margins and customer value globally.Middle East risks, softer service activity and uneven guidance keep near-term earnings visibility limited. Halliburton Company (HAL - Free Report) enters the second half of 2026 with a stronger international growth case and a still-uneven operating backdrop. The stock’s appeal rests on contract momentum, technology adoption and exposure to long-cycle energy investment.

The caution is equally clear. Middle East activity, mobilization costs and service-line variability keep earnings visibility from fully matching the stronger backlog story.

Halliburton Is Leaning on International DemandInternational demand is the backbone of HAL’s current thesis. The company delivered $3.4 billion of international revenues in the second quarter, its highest second-quarter international level in more than a decade, despite disruptions in the Middle East.

Image Source: Halliburton Company

Management sees demand for Halliburton’s services and technology across every major region. Offshore, unconventional and intervention markets are carrying the international opportunity, and outside the Middle East, Halliburton expects low double-digit international growth in 2026.

HAL's Wins Are Expanding the Multiyear BacklogRecent awards are broadening Halliburton’s opportunity set. The company secured a multi-year Kuwait Oil Company agreement tied to Ahmadi Innovation Valley, an integrated field management and engineering contract in Iraq, unconventional drilling work in Algeria and long-term projects in Saudi Arabia’s Jafurah field.

Offshore work adds another layer to the backlog. Halliburton won integrated well construction contracts for TotalEnergies’ GranMorgu deepwater development offshore Suriname, supporting a more diversified revenue base across national oil companies and global operators.

SLB (SLB - Free Report) remains a key global technology competitor in energy services, while Baker Hughes Company (BKR - Free Report) gives investors another reference point for oilfield services and equipment exposure. Against that peer backdrop, Halliburton’s wins matter because they extend relationships in multiple geographies rather than depending on one market cycle.

Halliburton's Technology Is Driving Better MixTechnology is central to the margin story. Halliburton is using ZEUS IQ, LOGIX automation, OCTIV automated pumping controls and Sekal’s closed-loop drilling capabilities to improve well placement, drilling precision, recovery and operating efficiency.

This matters because the company is competing on performance, not only price. In Norway, the closed-loop drilling solution helped deliver back-to-back record wells, while the newest ZEUS IQ release gives customers better treatment control in simul-frac operations.

HAL Still Faces Near-Term Execution RisksThe improved long-term setup does not eliminate near-term risk. Middle East operations in Iraq, Kuwait, Bahrain and other markets remain tied to shifting geopolitical conditions, and management’s guidance assumes current activity rather than a return to pre-conflict levels.

Third-quarter guidance also points to uneven revenue trends. Completion and Production revenues are expected to be flat to down 2% sequentially, while Drilling and Evaluation revenues are expected to decline 3-5%.

Profit visibility is still affected by moving equipment into new international projects. Lower software sales, weaker project management activity in Latin America, lower specialty chemicals activity and Middle East service-line weakness show that recovery is not evenly distributed.

What HAL’s Ratings Signal NowThe bottom line is that HAL has a better international growth base, but the stock still reflects a balance between improving momentum and incomplete earnings visibility. Contract wins, technology deployment and cash generation support the long-term case, while guidance and geopolitical risk argue for discipline.

The stock currently carries a Zacks Rank #3 (Hold). That rank indicates a more balanced near-term earnings revision profile than a clear buy signal, which fits a company with credible drivers but not yet clean acceleration.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HAL has a VGM Score of B, Value Score of B, Growth Score of C and Momentum Score of A. The Style Scores suggest solid value and very favorable momentum characteristics, while the Growth Score of C points to a less convincing growth profile than the headline award momentum alone might imply.

Key Takeaways Essex Property is expected to post higher Q2 revenues, while core FFO per share remains flat year over year.ESS may benefit from high occupancy, peak leasing season and limited new apartment supply in Q2.ESS projects Q2 core FFO of $3.92-$4.04 per share and sees Northern California leading growth. Essex Property Trust, Inc. (ESS - Free Report) is scheduled to report its second-quarter 2026 results on July 29, after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues, while core funds from operations (FFO) per share might remain unchanged.

In the last reported quarter, this San Mateo, CA-based residential real estate investment trust (REIT) delivered a surprise of 2.53% in terms of core FFO per share. Results reflected favorable growth in same-property net operating income (NOI) aided by solid property-level momentum.

Over the trailing four quarters, Essex Property’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average surprise being 0.82%. The graph below depicts the surprise history of the company:

Let’s see how things have shaped up before this announcement.

US Apartment Market in Q2The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth.

According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory.

Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines.

Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, VA; Toledo; Reno, NV, and Boise, ID, also posted strong gains.

High-supply markets remained softer, with rents still declining in Austin and Sarasota, FL, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink.

Factors to Consider Ahead of ESS' Upcoming ResultsEssex’s Q2 2026 results are likely to benefit from peak-season leasing, high occupancy and limited new supply. The company entered the quarter with April occupancy at 96.4% and blended lease growth above 3%.

Northern California should remain the main growth driver, supported by tech activity, AI expansion and improving migration. Seattle also showed better momentum as lease rates turned positive in March and April. Southern California is likely to remain mixed.

Overall, the second quarter should show improving rent growth and stable occupancy, partly offset by higher expenses from delayed projects.

Projections for ESS' Q2 ResultsThe Zacks Consensus Estimate of $486.85 million for second-quarter revenues calls for a 3.62% increase year over year. The consensus estimate for same-property revenues is pegged at $445.99 million, up from $410.95 million in the year-ago period. The consensus mark for same-property financial occupancies is currently pegged at 96.20%, on par with the prior quarter.

For second-quarter 2026, Essex Property projected core FFO per share in the range of $3.92-$4.04 per share, with a midpoint of $3.98.

Before the second-quarter earnings release, Essex Property’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share was revised southward in the past week to $4.03. It indicates no change year over year.

What Our Quantitative Model Predicts for ESS StockOur proven model predicts a surprise in terms of core FFO per share for Essex Property this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here. 

Essex Property currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.54%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a LookHere are two other stocks from the broader REIT sector — Digital Realty Trust (DLR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an FFO beat this quarter.

Digital Realty is slated to report quarterly numbers on July 23. DLR has an Earnings ESP of +2.30% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

New York, New York--(Newsfile Corp. - July 23, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Lucid Group, Inc. ("Lucid" or the "Company") (NASDAQ: LCID) on behalf of investors that purchased or otherwise acquired Lucid Group securities between February 25, 2026 and April 13, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in Lucid and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than July 28, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

On Friday April 3, 2026, at the close of the market, Lucid issued in a press release stating that the Company "produced 5,500 vehicles" during the first quarter of 2026, while only "deliver[ing] 3,093 vehicles." The press release further stated that "[d]uring the quarter, deliveries of the Lucid Gravity were disrupted for 29 days due to a supplier quality issue with the second-row seats" and, "[a]s result of this, the [C]ompany's ability to meet customer demand was impacted." That same day, Reuters published an article entitled "Lucid misses first-quarter vehicle delivery estimates on supplier disruptions." According to the article Chief Executive Officer Marc Winterhoff, said "[d]eliveries were particularly hit in February" when the Company "paused to reverse the change and inspect vehicles already produced."

In the first two trading sessions following the news, the price of Lucid shares declined by $1.13 per share, or 11.35%, to close at $8.83 per share on April 7, 2026.

Then, on April 14, 2026, Lucid announced preliminary first quarter 2026 financial results, including revenue in the range of $280 million to $284 million, well below the consensus estimate of $433.8 million according to the complaint, and loss from operations in the range of $985 million to $1.005 billion.

Following this news, the price of Lucid stock fell $0.44 per share, or 4.76%, to close at $8.80 per share on April 14, 2026.

The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (ii) the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; (iii) accordingly, the Defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/lucid-group-inc-class-action-alert-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306292

Source: Kaplan Fox & Kilsheimer LLP

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Southwest Airlines (LUV - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Southwest basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Southwest imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for SouthwestThis airline is expected to earn $3.23 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Southwest. Over the past three months, the Zacks Consensus Estimate for the company has increased 10.5%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Southwest to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways CSX beat Q2 estimates with EPS of 54 cents and revenues of $3.94B, up 22.7% and 10.1% year over year. CSX growth was driven by higher fuel surcharge revenues & pricing gains across segments. CSX raised its 2026 outlook, with mid to high single-digit revenue growth & operating margin expansion. CSX Corporation (CSX - Free Report) reported impressive second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

Quarterly earnings per share (EPS) of 54 cents surpassed the Zacks Consensus Estimate of 50 cents and increased 22.7% on a year-over-year basis.

Total revenues of $3.94 billion beat the Zacks Consensus Estimate of $3.82 billion. The top line increased 10.1% year over year, driven by higher fuel surcharge revenues, volume growth and pricing across merchandise, intermodal and coal. These were partially offset by a decrease in export coal revenues, including the impact of lower benchmark rates.

Second-quarter operating income increased 17% year over year to $1.51 billion. Total expenses increased 6% year over year. CSX’s operating margin expanded to 38.3% during the March quarter from 35.9% in the year-ago quarter. Total volumes inched up 6% year over year, boosted by 9% growth in intermodal volumes.

Q1 Segmental Performance of CSXMerchandise revenues grew 8.4% year over year to $2.45 billion (above our estimate of $2.33 billion) in the reported quarter. Merchandise volumes rose 4% year over year to $670 million. Segmental revenues per unit inched up 4% year over year.

Intermodal revenues increased 26% year over year to $620 million (above our estimate of $547.1 million). Segmental volumes increased 9%, while revenues per unit rose 16% year over year.

Coal revenues improved 9% year over year to $520 million in the reported quarter (above our estimate of $506.7 million). Coal volumes inched up 4% year over year, while segmental revenues per unit increased 4% year over year.

Trucking revenues totaled $226 million (above our estimate of $190.6 million) and rose 7% year over year. Other revenues fell 11% year over year to $123 million in the reported quarter.

CSX’s LiquidityCSX exited the second quarter of 2026 with cash and cash equivalents of $1 billion compared with $670 million at the end of the fourth quarter of 2025. Long-term debt of $17.16 billion compared with $18.17 at the quarter end of 2025.

CSX's 2026 Guidance For 2026, CSX now expects mid-to high single-digit revenue growth (including fuel, based on the current forward curve for diesel) compared with its prior guidance of mid-single digit revenue growth.

Operating margin expansion is now anticipated to exceed 350 basis points compared with the previous expectation of around the higher end of the 200-300 basis points range.

Free cash flow is now anticipated to increase more than 80% compared with the prior expectation of growth of more than 60%.

For the full-year 2026, CSX continues to expect capital expenditures to be below $2.4 billion.

Currently, CSX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesWestinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

Monday.com has just become the latest company to lay off its employees in favor of AI. 

On Wednesday, July 22, the work management software firm announced that it will lay off about 20% of its workforce, or just over 600 employees. 

The news came through a filing with the Securities and Exchange Commission (SEC) in which the Tel Aviv-based company said it had “initiated a restructuring plan.” 

In the SEC filing, Monday.com stated: “The Plan reflects the Company’s ongoing transformation of its product, marketing, and go-to market strategy and is intended to support a leaner, more focused operating model as the Company continues to invest in its AI-driven growth strategy.” 

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Yes, those 20% of employees losing their jobs have been replaced by AI growth. It is perhaps not surprising for a company that announced a platform-wide AI shift a year ago and now self-identifies as an “AI work platform,” but it’s still disheartening. 

Monday.com has offices in New York and Denver, in addition to cities in Europe, Australia, South America, and Asia. Fast Company has reached out to Monday.com for more information on where the impacted jobs are located. We will update this post if we hear back. 

Monday.com estimates it will face $45 million to $55 million in net charges as a result of the new plan, but expects to maintain or improve on its predicted 19% to 20% year-over-year (YOY) revenue growth for 2026. 

Explore TopicsAIlayoffsMonday.comSoftware

AI Consolidation Begins: Blackstone & Google Forge an AI EmpireBlackstone NYSE: BX reported sharply higher second-quarter 2026 earnings as executives said the firm’s early and aggressive positioning around artificial intelligence infrastructure is driving investment performance, fundraising and new business formation across the platform.

Weston Tucker, Blackstone’s Head of Shareholder Relations, said the firm reported GAAP net income of $2.4 billion for the quarter. Distributable earnings were $2 billion, or $1.52 per common share, and Blackstone declared a dividend of $1.29 per share, payable to holders of record as of August 3.

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As Broadcom Eclipses $2 Trillion, Private Credit Giants Wants InChairman and CEO Steve Schwarzman said distributable earnings rose 26% year-over-year, while fee-related earnings increased 22% and net realizations rose 27%. Total inflows reached nearly $70 billion in the quarter and more than $260 billion over the last 12 months, bringing assets under management to a record $1.35 trillion, up 11% from a year earlier.

AI Infrastructure Remains Central to Blackstone’s Strategy Schwarzman said the largest driver of Blackstone’s recent momentum has been its investments in AI-related areas, including data centers, energy and power, and private AI companies. He said Blackstone has become “one of the largest private capital providers in the AI ecosystem,” giving investors access to opportunities that often cannot be replicated in public markets.

Sony's $4 Billion Bet on Rock & Roll RoyaltiesDuring the quarter, Schwarzman highlighted four AI-related initiatives. Blackstone teamed with Google to build a new AI cloud provider using Google’s TPU chips, with an initial investment of up to $5 billion. The firm also partnered with Anthropic to form a company focused on enterprise adoption of AI-powered solutions. In credit, Blackstone joined Broadcom and another manager to create a financing platform to support Broadcom’s deployment of large-scale AI compute for end customers, providing $35 billion initially for 1 gigawatt of compute. The company also launched BXDC, a Blackstone REIT designed to acquire stabilized, newly built data centers, in a $2 billion offering that Schwarzman described as the largest blind-pool REIT IPO in history.

Blackstone’s data center platform has grown to $185 billion of total value, including facilities under construction, up from $130 billion at the start of the year. Schwarzman said the firm expects to lease more than three times as much capacity this year as in any prior year in its history. He also said the platform could double over the next few years if Blackstone executes on its pipeline.

Executives acknowledged risks around AI. Schwarzman said Blackstone is mindful of “excessive exuberance” and is focusing on risk-adjusted returns and downside protection. He also discussed workforce, environmental and community considerations tied to data center development, including union jobs, workforce training, water-free cooling systems and expanded power generation.

Fundraising Broad-Based Across Institutions, Insurance and Wealth President and COO Jon Gray said Blackstone’s clients are responding to performance with strong inflows across institutions, insurance companies and individual investors, which he called the firm’s “three I’s.”

In infrastructure, Gray said AUM grew 40% year-over-year to $90 billion, supported by investments in digital and energy infrastructure. He said the commingled BIP strategy has generated an 18% net annual return since inception.

Gray also said Blackstone’s Multi-Asset Investing business, BXMA, reached a record $109 billion of AUM, up 21% year-over-year, and delivered 25 consecutive quarters of positive returns for its largest strategy. After the quarter ended, BXMA recorded $4.8 billion of monthly inflows on July 1, which Gray said was its best single month of fundraising.

In institutional drawdown funds, Gray said three strategies reached their hard caps so far in 2026: opportunistic private credit, life sciences and Asia private equity. He said Blackstone expects its new private equity energy transition flagship to reach its hard cap soon as well. Together, those four strategies represent nearly $40 billion.

Blackstone’s Asia private equity flagship closed at $13.1 billion in the quarter, more than double the prior vintage, backed by a 27% net annual return in the previous fund since inception. Gray said Blackstone’s focus on India and Japan has been a key driver of that performance.

Credit and Insurance Platforms Continue to Expand Gray said Blackstone’s combined corporate and real estate credit platform grew to nearly $550 billion, up 13% year-over-year, with $33 billion of inflows in the quarter. Credit represented nearly half of total firm inflows.

He said Blackstone is benefiting from a secular shift toward investment-grade private credit, particularly in insurance. Insurance AUM reached $290 billion, up 15% year-over-year. Gray highlighted a new partnership with Nippon Life, Japan’s largest life insurer, under which Blackstone expects to deploy approximately $10 billion in private credit over the next several years and invest in Nippon Life’s domestic real estate portfolio.

During the question-and-answer session, Gray said insurers are increasingly using private investment-grade credit to compete, because it can provide higher returns at similar or higher ratings levels. He said Blackstone now has 40 clients in its dedicated insurance solutions area, nearly double the number from two years ago, and emphasized that the firm operates with an open architecture model without taking on insurance liabilities.

Private Wealth Growth Offsets BCRED Redemptions Blackstone’s private wealth AUM grew 16% year-over-year to a record $324 billion. Gray said total sales were $8.6 billion in the quarter, with slower activity in April and May amid geopolitical concerns but a strong recovery in June that continued into the third quarter.

BXPE raised $2.4 billion in the quarter, bringing its NAV to more than $25 billion after 10 quarters. Gray said its largest share class has produced a 20% net annualized return since inception, including approximately 8% net in the second quarter. BXINFRA raised about $900 million, bringing its NAV to $6 billion after six quarters.

BREIT raised $1.2 billion, while repurchase requests declined 42% year-over-year and 33% sequentially from the first quarter. Gray said that produced the vehicle’s best “regular way” net flows in nearly four years, adding that BREIT is “clearly back in growth mode.”

BCRED saw $1 billion of gross sales, but repurchase requests exceeded its 5% limit, with roughly 50% fulfilled, leading to net outflows of $1.2 billion. Gray said early third-quarter redemption requests were down materially and attributed the improvement partly to a reduction in negative market commentary around private credit.

Executives Point to IPO Market and Realizations CFO Michael Chae said fee-related earnings rose 22% year-over-year to $1.8 billion, or $1.43 per share. Fee revenues increased 22% to $3 billion, with growth across all four segments: private equity, real estate, BXMA and credit. Transaction and advisory fees nearly doubled year-over-year to a record $321 million.

Chae said net realizations were $414 million, up 27% year-over-year, helped by dispositions including a data center sale and multiple energy portfolio realizations. He said Blackstone’s net accrued performance revenue stood at $7.5 billion, or $6 per share, the highest level in four years.

Executives said the IPO market has strengthened. Gray noted that U.S. IPO activity increased sixfold in the first half of 2026 compared with the same period last year, while global issuance rose more than three-and-a-half-fold. Blackstone has executed three IPOs since May and has eight IPOs on file globally.

Chae said Blackstone expects net realizations to slow sequentially in the third quarter but anticipates a robust fourth quarter and 2027. He also said the firm expects base management fee growth to return to double digits in 2027, supported by drawdowns in private equity funds, growth in perpetual strategies, credit deployment and stabilization in real estate fee trends.

About Blackstone (NYSE:BX)Blackstone Inc NYSE: BX is a global investment firm focused on alternative asset management. Founded in 1985 by Stephen A. Schwarzman and Peter G. Peterson and headquartered in New York City, the firm organizes and manages investment vehicles that acquire and operate businesses, real estate and credit investments, as well as provide hedge fund solutions and other alternative strategies for institutional and individual investors.

Blackstone's business is organized around several principal investment platforms.

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

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Nasdaq, Inc. (NDAQ) Q2 2026 Earnings Call Transcript

CME Group has underperformed the S&P 500, declining nearly 12% over the past 11 months. CME delivered solid Q2 2026 results, with EPS of $2.99 and revenue of $1.71B, both of which beat analysts' expectations. Market Data revenue surged more than 20% compared to the same period a year ago.

Otis Worldwide Today

$69.44 -0.97 (-1.37%)

As of 02:17 PM Eastern

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52-Week Range$69.16▼

$94.57Dividend Yield2.53%

P/E Ratio18.52

Price Target$95.45

Otis Worldwide NYSE: OTIS just gave income investors a gift wrapped in a sell-off. Shares dropped by more than 2% the day the elevator giant reported Q2 2026 earnings. 

The company met expectations with adjusted earnings per share (EPS) of $1.01. Then, management trimmed its profit outlook for the second consecutive quarter.

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But look past the short-term outlook, and a different story emerges. Sales are growing, the backlog is the strongest it's been in years, and the company’s dividend keeps getting bigger.

For investors willing to separate this quarter's cost pressure from next year's payoff, Otis looks less like a broken story and more like a company in the middle of a renovation.

Otis Earnings Show Strong Sales, But Margin Pressure PersistsNet sales in the quarter climbed 7% year-over-year to $3.86 billion, with organic growth of 6%. Service, which is Otis's highest-margin, most durable business at 94% of segment operating profit, grew organic sales 9%. Modernization orders were up 24%, and the backlog was up a striking 26% on a constant currency basis. That backlog number is a leading indicator of revenue that Otis hasn't even booked yet.

That was the good news. The bad news showed up in margins. Adjusted operating profit fell to $587 million from $612 million, and adjusted operating margin contracted 180 basis points to 15.2%. Adjusted EPS, as stated earlier, came in at $1.01, down from $1.05 a year ago. New Equipment was the drag. Sales were flat, but operating profit was down 41% as new-equipment sales in China fell in the "high teens" and productivity investments bit into margins.

Why Otis Lowered Guidance Despite Solid Revenue GrowthOtis didn't touch its sales outlook. Total net sales guidance stays at $15.1B to $15.3B, still framed as "up low to mid-single digits" organically. What moved was cost: management now expects constant-currency adjusted operating profit down $45 million to $15 million for the year, versus a prior call for growth of $20M–$60M. Translate that to EPS, and 2026 guidance lands at $4.01 to $4.05, essentially flat against 2025's $4.05.

The culprit is a familiar one in this earnings season. That is, labor and material cost inflation outrunning pricing gains in the near term. The cut is also due to $20 million in spending to balance micro-pricing against customer retention, and $50 million in productivity and field-cost initiatives that management is choosing to absorb now rather than defer.

Why OTIS Still Appeals to Dividend InvestorsOtis raised its dividend by 5% this quarter and still repurchased approximately $400 million in stock. That brought year-to-date buybacks to approximately $800 million. That’s unchanged from the company’s prior guidance despite the profit cut.

Adjusted free cash flow guidance did dip slightly, to $1.5B–$1.55B from $1.6B–$1.65B, but management isn't pulling back capital return to fund the investment cycle. That should make investors comfortable that Otis is treating margin pressure as a controllable, temporary cost of building future capacity, not a sign of a deteriorating business.

The bet for income-oriented investors is straightforward: get paid a growing dividend to hold through a period where Otis is reinvesting in service quality, pricing discipline, and a backlog that's already up 26%. If modernization and repair volumes convert that backlog into revenue as planned in 2027, today's margin trough becomes tomorrow's operating leverage.

The Biggest Risks Facing OTISTwo consecutive guidance cuts on profitability is not nothing, and "flattish EPS" for a full year is a tough sell to growth investors. Labor and material cost inflation could persist longer than management expects. Also, a slowdown in its New Equipment business, particularly in China, where organic growth fell more than 20% in the first half, remains a genuine drag with no clear inflection point yet.

Otis Stock Tests Key Support After EarningsThe chart tells a story of a stock that’s still looking for a bottom. OTIS peaked near $96 in February 2026 and slid roughly 27% into a low near $70 by June, well below its 50-day SMA, which currently sits at about $72. That’s right where July 22's intraday decline stalled (high of $72.26) before reversing to close at $70.25.

The relative strength index (RSI) reading of 41, below its own 14-period average of 51, shows momentum has rolled over again after a brief attempt to reclaim the 50-day line in July. It's not oversold territory yet, but it's a stock that has repeatedly failed to hold above its 50-day average since March. This is a level bulls will want to see reclaimed and held before calling this a real turn.

OTIS chart displaying a price floor around $72, with RSI of 41.

For now, OTIS looks like a name in a basing pattern: beaten down, dividend-supported, and waiting on either a cost inflection or a technical breakout to confirm the next leg. But investors with a time horizon of over 12 months may be rewarded with growth as the company’s backlog drives future earnings.

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

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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

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Southern Missouri Bancorp NASDAQ: SMBC reported stronger quarterly and full-year earnings as net interest income improved, operating expenses declined and tax credit investments lowered its tax provision, executives said on the company’s fiscal fourth-quarter earnings call.

President and Chief Administrative Officer Matt Funke said the June quarter, which closed the company’s fiscal year, benefited from higher net interest income, higher non-interest income, lower non-interest expense and a reduced income tax provision. Those gains were partly offset by a higher provision for credit losses.

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For the quarter, Southern Missouri earned $1.83 per diluted share, up $0.23, or about 14%, from the linked March quarter and up $0.44, or about 32%, from the June 2025 quarter. For fiscal 2026, the company earned $6.43 per diluted share, compared with $5.18 in fiscal 2025.

Funke said the 24% year-over-year increase in full-year earnings was “predominantly driven by stronger net interest income,” which reflected margin expansion as funding costs declined, along with nearly 5% average earning asset growth. He said the company generated a return on assets of 1.41% for fiscal 2026.

Loan Growth Remains Solid, But Management Expects Moderation Gross loan balances increased $69 million during the fourth quarter and were up $291 million, or 7.1%, from a year earlier. Funke said growth during the quarter was driven largely by construction and land development loans, one-to-four-family residential real estate, multifamily loans, agricultural real estate and seasonal agricultural production lending.

Loan originations totaled about $335 million in the quarter, up $85 million from the year-ago period, though Funke said several larger payoffs muted the impact. The expected 90-day pipeline rose by about $4 million from the prior quarter to $182 million.

Looking to fiscal 2027, Funke said management continues to expect mid-single-digit loan growth. However, he said growth could moderate from the 7% achieved in fiscal 2026 because the company is prioritizing core deposit relationships rather than wholesale funding to support new loan production.

Deposits increased about $67 million, or 1.5%, in the fourth quarter and were up roughly $126 million, or about 3%, year over year. Funke said deposit growth in the quarter was primarily driven by brokered deposits, noting that brokered balances were up just under $56 million from a year earlier. He said local deposit rate competition has increased and wholesale funding has sometimes been more cost-effective.

The company has begun rolling out a new suite of business accounts and adjusted employee incentives in an effort to grow lower-cost operating accounts over time, Funke said.

Net Interest Margin Holds Steady, But Funding Costs Could Pressure Results Net interest margin was 3.67% in the June quarter, unchanged from the March quarter and up from 3.47% a year earlier. Net interest income rose almost 3% from the linked quarter and about 10% year over year.

Chief Financial Officer Stefan Chkautovich said the margin included about three basis points of fair value discount accretion on acquired loan portfolios and premium amortization on assumed deposits, unchanged from the linked quarter. He also said the quarter included a $603,000 reversal of accrued interest income, which reduced the margin and average earning asset yield by about five basis points.

Chkautovich said Southern Missouri generated 22 basis points of net interest margin expansion in fiscal 2026, primarily due to lower-cost deposits in a declining rate environment. But he cautioned that the company could face core margin pressure in coming quarters because short-term rates have recently increased and deposit competition remains elevated. About 25% of total deposits are indexed to the 91-day Treasury bill, he said.

In response to an analyst question, Chkautovich said the 91-day Treasury rate was up about 14 basis points from the start of July for the company’s indexed deposits. He also said about $550 million of fixed-rate loans are maturing over the next 12 months, with new originations about 25 basis points above maturing loan rates. At the same time, roughly $1.3 billion of certificates of deposit are repricing, with new CD rates about 3 to 5 basis points above maturing rates.

Credit Costs Rise as Two Relationships Drive Charge-Offs Chairman and Chief Executive Officer Greg Steffens said adversely classified loans improved from the prior quarter, declining to $54 million, or 1.2% of gross loans. Non-performing loans fell $2.5 million to about $28 million, or 0.63% of gross loans, at June 30.

Non-performing assets, however, increased $1.5 million from the prior quarter to about $33.5 million, primarily due to a rise in other real estate owned. Steffens said the increase followed the foreclosure of a previously disclosed commercial loan relationship secured by commercial real estate and equipment. The equipment was liquidated, and the commercial real estate was transferred to other real estate owned. The company recognized a $1.2 million charge-off on the transfer, leaving a remaining carrying value of about $3.6 million.

Steffens also said the company downgraded a separate agricultural lending relationship to non-accrual status during the quarter. The borrower filed for Chapter 7 bankruptcy, and Southern Missouri recognized a $2.6 million charge-off, leaving remaining exposure of $5.9 million supported by additional specific reserves.

The provision for credit losses was $3.2 million in the quarter, up from $2.1 million in the March quarter. Chkautovich said net charge-offs totaled $4.3 million, up $4 million from the linked quarter, mainly related to the agricultural production loan and the commercial loan relationship transferred to other real estate owned.

The allowance for credit losses totaled $54.9 million at June 30, representing 1.25% of gross loans and 199% of non-performing loans. That compared with $55.9 million, or 1.29% of gross loans and 186% of non-performing loans, at March 31.

In the question-and-answer session, Chkautovich said the company could see some increase in provision expense in fiscal 2027 following its annual model adjustment. He said a potential allowance range could be about 1.25% to 1.35% of loans, depending on problem asset levels.

Steffens said management expects charge-offs to improve from the past two fiscal years, when they were 17 basis points and 18 basis points. He said the company is targeting progress toward historical levels of roughly 3 to 5 basis points annually.

Agricultural Portfolio Outlook Improves, But Reserves Remain Elevated Steffens said agricultural real estate balances totaled $296 million, or 7% of gross loans, while agricultural production and equipment loans totaled $219 million, or 5% of gross loans. Agricultural production and equipment balances rose $15 million from the prior quarter due to normal seasonality tied to planting and higher operating costs.

He said planting has been completed across Southern Missouri’s markets, with the projected 2026 crop mix consisting of about 30% soybeans, 30% corn, 20% cotton, 15% rice and 5% specialty crops. Steffens said favorable planting and timely rainfall have positioned most major crops for above-average yield potential.

Current commodity prices and expected yields are running about 10% to 15% above the company’s underwriting assumptions, partially offsetting elevated production costs and improving projected farm profitability, Steffens said. He added that higher USDA Price Loss Coverage and Agricultural Risk Coverage payments this fall should provide additional liquidity for many farmers.

Despite the improved outlook, Steffens said the company continues to maintain elevated reserves for its agricultural production portfolio because of prolonged pressure in the sector.

Capital Deployment, Expenses and M&A Southern Missouri increased tangible book value per share to $47.43, up $5.56, or 13%, from a year earlier. During fiscal 2026, the company repurchased 317,000 shares, or nearly 3% of average common shares outstanding at the start of the year, at an average price of $58.59. In the fourth quarter, it repurchased 4,000 shares at an average price of just over $69.

The company also announced an 8% increase in its quarterly dividend, raising it by $0.02 to $0.27 per share.

Non-interest expense declined 2.6% from the linked quarter, Chkautovich said, due mainly to lower other non-interest expense, occupancy and equipment expense, and data processing costs. For fiscal 2026, non-interest expense totaled $102.1 million, unchanged from fiscal 2025. Looking ahead, he said operating expenses are expected to “re-accelerate” in fiscal 2027 as the company invests in new employees and technology, with expense growth potentially in the mid-single digits to the low-to-high single digits depending on timing.

Steffens said discussions around mergers and acquisitions have remained active. He said there are approximately 75 banks with $500 million to $2 billion in assets within the company’s footprint, in addition to institutions in adjacent markets. In response to an analyst question, he said the company’s improved trading multiples and capital position make M&A more attractive than buybacks at current valuation levels.

“Our focus remains on disciplined execution, prudent risk management, and thoughtful capital deployment to deliver sustained, attractive returns to our shareholders,” Steffens said.

About Southern Missouri Bancorp (NASDAQ:SMBC)Southern Missouri Bancorp, Inc NASDAQ: SMBC is a bank holding company headquartered in West Plains, Missouri, serving as the parent of Southern Bank. The company focuses on delivering community banking services to individual and commercial customers across southern Missouri and northern Arkansas. It operates branch offices in local markets and provides a comprehensive suite of deposit and lending products tailored to both urban and rural communities.

Through its subsidiary, Southern Bank, the company offers deposit products such as checking and savings accounts, money market accounts and certificates of deposit, alongside digital and mobile banking platforms.

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

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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 Southern Missouri Bancorp wasn't on the list.

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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.

"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.

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Key Takeaways CONMED's AirSeal is now FDA-cleared for 8 mm hex cannulas on the da Vinci 5 robotic platform.Joint testing with Intuitive Surgical supported compatibility across da Vinci X, Xi and 5 systems.AirSeal maintains pressure, clears smoke and supports low-pressure insufflation during robotic surgery. CONMED (CNMD - Free Report) recently announced that the FDA has expanded the indication for its AirSeal Robotic Solution to be used with Intuitive Surgical’s (ISRG - Free Report) 8 mm hex cannulas on the da Vinci 5 (dV5) robotic surgery platform. Previously approved for Intuitive Surgical’s 8 mm round cannulas, the solution is now compatible across the full portfolio of the da Vinci X, da Vinci Xi and da Vinci 5 robotic systems.

Management noted that the expanded indication was supported by extensive engineering and technical compatibility testing conducted jointly with Intuitive Surgical. The company remains focused on providing surgeons and hospitals with compatibility data and clear product communication, helping them deliver high-quality patient care.

The expanded indication brings greater clarity on the integration of the AirSeal Robotic Solution with the da Vinci 5 platform, supporting efficient and consistent surgical workflows while contributing to positive patient outcomes. Management also expressed confidence that this achievement strengthens the long-term growth potential of CONMED’s AirSeal portfolio.

Likely Trend of CNMD Stock Following the NewsFollowing the announcement, CNMD shares gained 0.3% at yesterday’s close. Year to date, the stock has risen 3.5% against the industry’s 2.2% decline. However, the S&P 500 has risen 9.3% in the same timeframe.

CONMED is well positioned to benefit from the expanded indication for its AirSeal Robotic Solution. Compatibility with the da Vinci 5 platform broadens the product’s addressable market and reinforces its value within robotic-assisted minimally invasive surgeries. As hospitals continue to adopt ISRG’s latest robotic platform and the company continues to expand in international markets, adoption of CONMED’s AirSeal is likely to be strengthened, which will drive growth for its surgical portfolio.

CNMD currently has a market capitalization of $1.26 billion.

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More on the NewsThe AirSeal Robotic Solution is an advanced insufflation system developed specifically for robotic-assisted minimally invasive surgery. It combines an AirSeal Cannula Cap with AirSeal and a bifurcated tube set to deliver stable pneumoperitoneum, continuous smoke evacuation and low-pressure insufflation through robotic ports, eliminating the need for an accessory port. Unlike conventional insufflation systems that replenish carbon dioxide only after pressure drops, AirSeal maintains pressure, improving visualization and minimizing interruptions during surgery.

Its three-lumen design provides CO2 insufflation, smoke evacuation and a regulated gas barrier that maintains consistent cavity pressure even during leaks or suction. By preserving visualization, minimizing pressure fluctuations and restoring pneumoperitoneum when disruptions occur, the system supports physiologic stability, enhances intraoperative efficiency and contributes to smoother patient recovery during minimally invasive robotic procedures.

The expanded indication strengthens AirSeal’s role in robotic surgery by enabling seamless integration with Intuitive Surgical’s latest system architecture while providing hospitals and surgeons with greater flexibility in using complementary technologies. Backed by more than 40 clinical studies, the system is designed to support low-pressure insufflation, helping improve patient outcomes, procedural efficiency and surgical performance.

Industry Prospects Favoring the MarketGoing by the data provided by Mordor Intelligence, the insufflation devices market is predicted to be valued at $3.28 billion in 2026 and is expected to witness a CAGR of 5.9% through 2031.

Factors like the growing adoption of minimally invasive surgeries, advancements in insufflation technology, rising volumes of bariatric and gynecologic procedures, integration with digital operating rooms, expanding ambulatory surgery infrastructure and a shift toward disposable insufflation consumables are boosting the market’s growth.

Other NewsCONMED recently appointed John E. Gallagher as its chief financial officer, effective July 15, 2026. He succeeds Todd Garner, who will remain associated with the company in an advisory role through Nov. 2, 2026. Gallagher brings nearly three decades of financial leadership experience across public healthcare and industrial companies, including Certara, Inc., Cue Health Inc. and Becton, Dickinson & Co.

In May, CONMED announced the appointment of seasoned healthcare executives Celine Martin and Jeff Mirviss to its board of directors, effective July 1, 2026. The move expands the board to nine members and strengthens governance with deep leadership expertise from Johnson & Johnson and Boston Scientific.

CNMD’s Zacks Rank & Key PicksCONMED currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 14.4%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.