Track market-moving stories before they get noisy

In the latest close session, Modine (MOD - Free Report) was down 6.13% at $277.46. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%.

The stock of heating and cooling products maker has risen by 13.46% in the past month, leading the Auto-Tires-Trucks sector's loss of 3.79% and the S&P 500's gain of 0.08%.

The upcoming earnings release of Modine will be of great interest to investors. In that report, analysts expect Modine to post earnings of $1.43 per share. This would mark year-over-year growth of 34.91%. At the same time, our most recent consensus estimate is projecting a revenue of $895.49 million, reflecting a 31.15% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.73 per share and a revenue of $4.03 billion, representing changes of +53.98% and +26.76%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.99% increase. Right now, Modine possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Modine is at present trading with a Forward P/E ratio of 38.24. This expresses a premium compared to the average Forward P/E of 13.11 of its industry.

Meanwhile, MOD's PEG ratio is currently 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MOD's industry had an average PEG ratio of 0.9 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Key Takeaways Futu added 225,000 funded accounts in Q1, lifting its total to 3.59 million, up 34.3% year over year.Futu needs about 575,000 more funded accounts this year, with Q2 growth expected to stay stable from Q1.Malaysia and Hong Kong led Q1 account additions, while Moomoo held over 55% of group-funded accounts. Futu Holdings’ (FUTU - Free Report) account story still has momentum, but 2026 will test how broad that momentum really is. In the first quarter, the company added 225,000 net new funded accounts, taking the total to 3.59 million. This was a 34.3% jump from a year earlier and kept management comfortable with its full-year goal of 800,000 additions.

The target now depends on steady delivery. After the first quarter, Futu needs about 575,000 more funded accounts across the rest of the year. On the earnings call, management said second-quarter net new funded accounts are expected to remain stable from the first quarter, which would keep the target within reach.

That push is being supported by a wider geographic mix. Malaysia and Hong Kong together contributed more than half of the first-quarter net new funded accounts. Singapore delivered double-digit sequential growth, while Japan saw stronger U.S. stock and options activity. Futu also said more than 55% of group-funded accounts were under Moomoo, its overseas brand.

Futu’s user base is growing alongside higher activity. Total users rose 14.9% to 30.2 million, brokerage accounts climbed 26.8% to 6.28 million, and client assets increased 47.2% to HK$1.22 trillion. Trading volume hit HK$4.15 trillion, with U.S. stocks at HK$3.00 trillion and Hong Kong stocks at HK$1.01 trillion.

Still, regulation remains a watch point. Futu booked a proposed RMB1.85 billion CSRC penalty, which pushed net income down 61.2% to HK$831 million (US$106.0 million). Management said mainland China-funded accounts represented about 13% of funded accounts, around 17% of client assets and roughly 20% of revenues. Still, S&P reaffirmed Futu’s BBB- rating with a stable outlook, and management said the issue should not derail its 800,000-account guidance.

How Are Interactive Brokers and Robinhood Growing?Interactive Brokers (IBKR - Free Report) kept adding clients at a fast clip. In May 2026, Interactive Brokers reported 4.995 million client accounts, up 32% year over year and 3% from April. For Interactive Brokers, that growth came with $937.3 billion in client equity and $100.9 billion in margin loans, signaling deeper client engagement overall.

Robinhood Markets (HOOD - Free Report) remains a large retail name by funded customers. HOOD reported 27.7 million funded customers at May-end, up 1.76 million year over year, with total platform assets of $377 billion. For Robinhood, $5.6 billion of May net deposits and stronger equity/options volumes show accounts are active.

FUTU's Price Performance, Valuation and EstimatesShares of Futu have declined 31% over the past three months against the industry’s growth of 8.7%. 

Image Source: Zacks Investment Research

From a valuation standpoint, FUTU trades at a forward 12-month price-to-earnings of 9.85, below the industry and also lower than its one-year median of 16.15. This valuation disparity might not be as favorable as it seems. It carries a Value Score of C.

Image Source: Zacks Investment Research

Over the past 30 days, earnings estimates for both 2026 and 2027 have been revised downward, signaling a bearish outlook from analysts.

Image Source: Zacks Investment Research

Seagate Technology (NASDAQ:STX | STX Price Prediction) has delivered one of the market’s most remarkable runs of 2026, with the stock up 297.98% year to date as AI-driven storage demand rewrites the narrative around legacy hard drive makers. After a parabolic move from $274.90 on December 31, 2025 to $1,094.04 on June 22, 2026, the question is how much higher this can go.

Our 24/7 Wall St. price target for Seagate is $1,010.11 over the next 12 months, implying roughly 7.7% downside from current levels. Our recommendation is hold, with a 90% confidence level, reflecting high conviction in the model output even as fundamentals remain intact.

Metric Value Current Price $1,094.04 24/7 Wall St. Price Target $1,010.11 Upside/Downside -7.7% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target sits below where Seagate trades today. STX is one of the most dynamic AI infrastructure stories in the market, and real upside could come from accelerated Mozaic 4 ramp through calendar 2026 or from HDD pricing power lasting deeper into 2028 than the model assumes. The bull case below explains why Seagate could keep rallying past our number.

From $131 to $1,094 in 12 Months Seagate has gained 746% over the past year and 34.61% in the past month alone.

The catalyst was Q3 FY26 earnings on April 28, 2026, where Seagate posted adjusted EPS of $4.10 versus $3.50 expected on revenue of $3.11 billion, up 44.07% year over year. Non-GAAP gross margin expanded to 47.0% from 36.2%, and free cash flow reached $953 million. Management guided Q4 to $3.45 billion in revenue and $5.00 EPS, fueling the move.

The Case for $1,200+ Bulls have real ammunition. Morgan Stanley raised its target to $1,035 from $767 citing HDD shortages through at least 2028. Mizuho raised its target to $1,090 from $875, JPMorgan to $920, and Wells Fargo to $900.

CEO Dave Mosley said Seagate has “exabyte-scale supply agreements in place with nearly all major cloud and hyperscale customers, with nearline capacity almost fully allocated through calendar 2027”, and management raised its annual revenue growth target to a minimum of 20% over the next few years. Our bull case scenario points to $1,217.94, an 11.32% return.

What Could Go Wrong The risk centers on valuation. STX trades at a P/E of 102 and roughly 88x forward earnings, well above the $898.09 analyst consensus target.

Insiders, including CFO Gianluca Romano and CEO Dave Mosley, sold shares in mid-June at $880.19, though bulls note these were pre-planned 10b5-1 transactions and Mosley still holds over 327,000 shares. Other risks include tariff exposure, Middle East conflict, and dilution from Exchangeable Senior Notes due 2028. Our bear case lands at $742.76, a 32.11% drawdown.

Seagate Price Prediction 2026-2030 A pullback to the $850 to $900 range would look more attractive on a risk/reward basis if HAMR qualification with remaining hyperscalers closes on schedule. The setup looks less compelling if Q4 results show softening in pricing or if exabyte shipments miss the mid-20% growth bar.

My 24/7 Wall St. price target of $1,010.11 and hold rating reflect high confidence that the easy money has been made, even though the structural AI thesis remains intact.

Here is where our model projects Seagate could trade, assuming current growth trajectories and pricing discipline hold.

Year 24/7 Wall St. Price Target 2026 $1,010 2027 $1,045 2028 $1,080 2029 $1,055 2030 $1,044 These projections assume Seagate executes the Mozaic roadmap and captures share of AI storage spend. Significant upside or downside could result from HAMR adoption pace, hyperscaler capex cycles, or competitive pressure from NAND on the storage tier.

Key Takeaways ALAB posted Q1 revenues of $308.4M, up 14% sequentially and 93% year over year. Astera Labs' PCIe Gen 6 revenues topped one-third of Q1 sales, driven by Aries adoption. ALAB expects Q2 revenues of $355M-$365M, implying 15% to 18% sequential growth. Astera Labs (ALAB - Free Report) is benefiting from robust demand for its Aries and Taurus product lines, which are central to the company’s strong performance in the AI infrastructure market. In the first quarter of 2026, Astera Labs reported revenues of $308.4 million, marking a 14% sequential increase and an impressive 93% year-over-year growth.

This surge was driven by broad-based adoption across the company’s signal conditioning and fabric switch portfolios, with Aries and Taurus playing pivotal roles in supporting both scale-up and scale-out connectivity for AI infrastructure and general-purpose compute platforms.

The Aries product line, focused on PCIe 6 signal conditioning, has seen strong early adoption, particularly as AI infrastructure spending accelerates. Aries solutions are now integral to both AI fabric and signal conditioning, with PCIe Gen 6 revenues contributing more than one-third of ALAB’s total revenues in the first quarter of 2026. The company has shipped millions of PCIe Gen 6 ports to date, demonstrating the maturity and robustness of its portfolio. Aries is set to expand into PCIe 7, positioning ALAB’s leadership in intelligent connectivity solutions for AI infrastructure.

Taurus, meanwhile, has delivered solid results through the broad adoption of its Active Electrical Cable technology, which extends connectivity reach in both AI and general compute environments. The Taurus portfolio is also poised for further expansion into 1.6T Ethernet, aligning with industry trends toward higher-speed networking.

Aster Labs is benefiting from strong demand for its Aries, Taurus, and Scorpio product families, all of which are expected to drive growth in the second quarter of 2026. For the same quarter, ALAB expects revenues between $355 million and $365 million, implying 15% to 18% sequential growth.

ALAB Faces Stiff CompetitionALAB is facing stiff competition from other industry players like Marvell Technology (MRVL - Free Report) and Credo Technology (CRDO - Free Report) . Both Marvell Technology and Credo Technology are making strong efforts in the connectivity space.

Marvell Technology’s expanding portfolio has been noteworthy. Marvell Technology recently introduced the Teralynx T100, a 102.4 Tbps AI-optimized switch silicon designed to enhance high-speed connectivity and networking efficiency in large-scale AI data centers through lower latency and reduced power consumption.

Credo Technology’s expanding portfolio has been noteworthy. In May 2026, Credo Technology completed its acquisition of DustPhotonics, adding industry-leading silicon photonics technology to strengthen its optical interconnect portfolio across 800G, 1.6T and 3.2T solutions. The acquisition enhances Credo Technology’s vertically integrated AI connectivity stack and is expected to be a significant growth driver in fiscal 2027, supported by increasing hyperscale AI adoption.

ALAB’s Share Price Performance, Valuation, and EstimatesALAB shares have surged 150.7% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 20%. The Zacks Internet - Software industry has decreased 13.7% in the same time frame.

ALAB Stock’s Performance
Image Source: Zacks Investment Research

ALAB stock is trading at a premium, with a forward 12-month Price/Sales of 39.34X compared with the  Internet - Software industry’s 3.61X. ALAB has a Value Score of F.

ALAB’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at 69 cents per share, which has been unchanged over the past 30 days. This suggests 56.82% year-over-year growth.

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

Upgrading key logistics corridor to improve efficiency and strengthen Egypt’s trade flows 18 June 2026 – Alstom, leading a consortium with Rowad Modern Engineering and Concrete Plus, has signed four landmark contracts with Egyptian National Railways (ENR) to modernise Egypt’s strategic railway corridors, covering the 6th of October–Alexandria corridor and Belbes–10th of Ramadan (B10) line.

The combined value of the contracts is approximately €690 million, with Alstom’s share representing around €300 million1. As four of Egypt’s most significant rail modernisation projects, the contracts support Egypt Vision 2030 by strengthening national logistics and improving connectivity between new dry ports, industrial zones, and major seaports.

The 6th of October–Alexandria corridor, valued at €550 million, of which Alstom’s share amounts to approximately €240 million, will be delivered across three major implementation lots. It will modernise the corridor with next-generation digital railway systems, upgraded telecommunications, reinforced power supply, and comprehensive civil and track rehabilitation. These enhancements will improve safety, increase capacity, enhance operational reliability, and reduce full route travel time by nearly 80 minutes.

The Belbes–10th of Ramadan (B10) project, valued at approximately €140 million, of which Alstom’s share amounts to approximately €60 million, will introduce the same advanced railway technologies and modernisation scope. It will enhance connectivity to one of Egypt’s largest industrial hubs, strengthening freight efficiency and supporting industrial growth across the eastern logistics corridor.

By transforming freight operations between the 6th of October Dry Port and the Alexandria Seaport and enhancing rail connectivity to the 10th of Ramadan industrial zone, the projects will strengthen links between Egypt’s major logistics hubs and maritime gateways.
They will help ease supply chain bottlenecks, support sustainable freight transport, and boost national and regional trade flows.

“The Africa, Middle East and Central Asia region has never been more committed to building smarter, more resilient rail networks, and Alstom is at the center of that transformation. These contracts demonstrate our capacity to deliver large-scale, complex signalling programmes, and our determination to be a long-term partner for its most critical mobility infrastructure”, said Martin Vaujour, President, Africa, Middle East and Central Asia (AMECA) at Alstom.

As consortium leader, Alstom will be responsible for the end-to-end engineering, design, supply, testing, and commissioning of the new digital railway systems across both corridors. This includes ETCS Level 1 signalling, modern telecommunications, reinforced power infrastructure, and state-of-the-art operations control capabilities, enabling real-time, coordinated management across the network.

“These projects are redefining the future of rail in Egypt,” said Ramy Salah, Managing Director of Alstom Egypt. “Our partnership with Egyptian National Railways, driven by world class expertise and Egyptian talents, is creating vital transport corridors that drive economic growth, connect key industrial and logistics centres, and unlock new opportunities for future generations.”

In parallel, Rowad Modern Engineering and Concrete Plus will deliver the technical buildings, MEP works, and the full suite of civil and track upgrades to secure resilient, future-ready rail infrastructure. The projects also strongly support national industry development, achieving around 50% local content through Egyptian engineering talent and local sourcing.

Alstom in Egypt
Alstom has been present in the country for more than 40 years, supporting the development and modernisation of rail infrastructure through landmark transport projects. Today, Alstom employs around 800 people locally and has established strong operational and engineering capabilities, including recognised centers of excellence in signalling, power supply, and depot equipment. These capabilities support complex rail programmes nationally and across the AMECA region, reflecting a deeply embedded, long term commitment and a solid industrial and technological footprint in the rail sector.

ALSTOM™ is a protected trademark of the Alstom Group.

 About AlstomAlstom is the pure rail leader, committed to making rail the backbone of sustainable transportation. We design and deliver a complete range of future-ready solutions – from high-speed and regional trains to metros, monorails, trams, turnkey systems, end-to-end services, infrastructure, signalling and digital rail solutions. With 87,800 people in 61 countries, Alstom brings together global expertise and multi-local presence to make every journey smarter, cleaner and more enjoyable. Together with our partners and customers, we realise the power of rail. Listed in France, Alstom generated revenues of €19.2 billion for the fiscal year ending 31 March 2026. For more information, please visit

www.alstom.comContactsPress: HQ

Coralie COLLET – Tel.: +33 (0) 7 63 63 09 62
[email protected]

 Africa, Middle East and Central Asia Region (AMECA)
AMECA Communications VP

Souade BEKHTI – Tel.: +971 56 9954576
[email protected]

 Cluster Communications Director

Clare ASHAMALLAH - Tel.: +20 128 812 3195
[email protected]

 Saudi & Egypt Communications Manager

Mariam SALAH - Tel.: +201126371226
[email protected]

 Investor Relations
Cyril GUERIN – Tel.: +33 (0)6 07 89 36 16
[email protected]

 Guillaume GAUVILLE – Tel.: +44 (0)7 588 022 744
[email protected]

 Jalal DAHMANE – Tel.: +33 (0)6 98 19 96 62
[email protected]

1 This contract will be reflected in the Group’s order intake in the 1st quarter of the 2026/27 fiscal year.

20260618_Press Release_Egypt_EN

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Most nuclear timelines slip. James Walker, CEO of Nano Nuclear Energy (NASDAQ:NNE), says his will not. He expects construction permission in 2027 and a fully licensed, net-power-producing commercial reactor by 2030. That is an audacious promise from a pre-revenue startup, and the market is still figuring out what to do with it.

I’ve been tracking NNE for about eight months now, and what stands out is how rare it is to see a pre-revenue nuclear name commit to a hard date in public — most peers hedge every milestone.

What Walker Actually Said Walker laid out a sequence of milestones. Nano Nuclear is one of only five commercial companies to have submitted a construction permit application to the U.S. Nuclear Regulatory Commission, distinct from the roughly dozen companies participating in the Department of Energy’s reactor pilot program. Geotechnical drilling on the site has been completed and submitted. The NRC piece already has a paper trail: the agency formally accepted the construction permit application for the KRONOS microreactor on May 29, 2026, kicking off a multi-year safety and environmental review, with initial construction expected at the University of Illinois Urbana-Champaign site in mid-to-late 2027.

Walker also took a swing at competitor Antares. He called its criticality demonstration meaningful but fundamentally different, saying that "to take a reactor critical at a zero-power reactor" is a different exercise than running "a full-scale, fully operational, net-power-producing reactor system that’s commercially licensed." Translation: zero-power criticality is a lab benchmark; a commercially licensed plant selling electrons is a different beast.

The AI Power Argument Walker’s pitch leans hard on hyperscaler demand. Microsoft, Meta, Amazon, and AWS are chasing nuclear because upgrading grid infrastructure to meet AI demand would require roughly $5 trillion. For hyperscalers that want off-grid, zero-downtime, clean baseload, Walker said nuclear is the only viable option, citing that "the highest capacity factor of all energies is nuclear" and that data centers can tolerate "minutes, maybe less" of annual downtime.

The math lines up with federal projections. The EIA’s High Electricity Demand case shows data center server electricity use growing more than 16 times the 2020 level by 2050, reaching 818 billion kilowatthours. Bloomberg energy reporter Will Wade noted that many hyperscalers are hedging by placing bets across multiple energy technologies, needing only one to pay off. That hedging behavior is exactly the demand backdrop NNE is selling into.

What the Market Is Pricing NNE trades at $25.17 as of June 15, 2026, with a market cap around $1.2 billion and a beta of 5.04. The shares are down about 28% over the past year and down 14% over the past month, even as the broader nuclear narrative has gotten louder. Analyst consensus sits at a $46.67 target with three buys and one hold.

Fundamentals look like a story stock. Revenue TTM is $0, EBITDA is negative $44.97 million, and diluted EPS is -$0.68. The recent Secured Transportation Services acquisition, valued at up to $13 million, adds $7.1 million in 2025 revenue and $1.3 million in net income, plus access to more than 90% of active NRC-approved spent fuel routes. NNE also signed an MOU with Super Micro Computer on June 13, 2026, to develop joint go-to-market strategies pairing microreactors with AI server infrastructure.

The Insider Tell Believers should reconcile the bullish narrative with what executives are actually doing. Under pre-arranged 10b5-1 plans, CEO James Walker sold roughly $3.28 million in shares, President and Chairman Yu Jiang sold about $19.9 million, and CFO Jaisun Garcha sold roughly $985,617. These were pre-planned sales tied to RSU vesting. They are a data point worth weighing against a 2030 promise.

Bringing It Back Walker’s 2030 claim only works if the NRC moves on schedule, the Illinois site breaks ground in 2027, and a hyperscaler signs an actual offtake. If you believe AI compute needs clean baseload more than anything else, NNE is one of the few public names with a permit application already accepted. If you think nuclear timelines always slip, the 346% five-year gain already prices in a lot of patience. The promise is on the table. The receipts are due in 2030.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a U.S. commercial space company specializing in satellite technology, space transportation, and in-orbit services, today announced that it has secured a new commercial contract with the University of Colorado Boulder’s Laboratory for Atmospheric and Space Physics (LASP) to provide in-orbit services.

“We’re proud to support the OWLS mission demonstrating the versatile capabilities of our advanced technology combined with the flexibility of the orbital hosting infrastructure of our latest OSV, Vigoride-9,” said John Rood, Chief Executive Officer of Momentus. “We are encouraged by the increasing demand across a diverse set of commercial customers to support mission-critical orbital services, delivering reliable long-duration hosting and sustained operations. As our orbital services portfolio increases, we are optimistic about the durability of incremental revenue growth opportunities.”

LASP has selected Momentus to host and operate its Occultation Wave Limb Sounder (OWLS) mission on the Company’s Vigoride-9 Orbital Service Vehicle (OSV). LASP’s upcoming mission will fly advanced instruments into orbit to target improvements to modeling of space weather in low Earth orbit (LEO). These instruments are designed to measure atmospheric density waves between 100 and 400 kilometers using solar occultation techniques, generating high-quality data intended to improve modeling of space weather, atmospheric drag, and the evolution of the operating environment for satellites in LEO. During its targeted mission launch in 2027, Momentus will integrate and operate two OWLS instruments on Vigoride-9.

“Partnering with Momentus allows us to deploy OWLS quickly and efficiently by leveraging its orbital transportation services during the upcoming LEO launch to optimize our latest space weather forecasting instruments,” said OWLS Principal Investigator Dr. Ed Thiemann. “The data we collect will help improve models of the upper atmosphere and deepen our understanding of how the weather we experience at Earth’s surface ultimately impacts satellites in LEO.”

The contract further expands Momentus’ commercial revenue portfolio of hosted payload and in-orbit services that provide the U.S. government, science and academic, technology organizations, and commercial customers with scalable orbital infrastructure and operational support capabilities. Vigoride’s modular architecture and high-power hosting capabilities are well-positioned to deliver on missions requiring long-duration operations, precision, and specialized environmental conditions.

Momentus launched its Vigoride-7 Orbital Service Vehicle in March, and the spacecraft is currently meeting all mission objectives. The company’s upcoming Vigoride-8 mission is fully booked supporting NASA and scheduled to fly in 2027. Momentus still has capacity available on the Vigoride-9 mission, and organizations interested in securing a payload slot can contact the Momentus Commercial team at [email protected].

About Momentus

Momentus is a U.S. commercial space company offering satellites, satellite components, and in-space transportation and infrastructure services. Through its Vigoride orbital service vehicle, the company delivers hosted payload support, last-mile delivery, and servicing capabilities tailored to scalable mission architectures.

Follow the University of Colorado Boulder’s Laboratory for Atmospheric and Space Physics (LASP) Occultation Wave Limb Sounder (OWLS) mission at (https://lasp.colorado.edu/missions/owls).

Forward-Looking Statements

This press release contains certain statements which may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding the expected filing of the Company’s Form 10-K and Form 10-Q and its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, and are not guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Momentus’ control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to risks and uncertainties included under the heading “Risk Factors” in the Annual Report on Form 10-K filed by the Company on April 9, 2025, as such factors may be updated from time to time in our other filings with the Commission, accessible on the Commission’s website at www.sec.gov and the Investor Relations section of our website at investors.momentus.space. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

More News From Momentus Inc.

Cerebras Systems (NASDAQ:CBRS) is approaching its first earnings report as a public company with execution rather than demand as the key variable to watch, according to Wedbush analysts.

Demand risk is "almost zero," according to Wedbush, given Cerebras's existing deals with OpenAI and Amazon, meaning results will largely reflect how well management delivers against its own targets.

Driving the optimism is TSMC capacity. The analysts believe the foundry will deliver at least modest upside to expected wafer output in 2026 and 2027, which could translate into incremental system sales for Cerebras.

That dynamic is further helped by tightening accelerator availability across the industry and growing memory sourcing constraints, a challenge that matters less for Cerebras because its chips rely on SRAM rather than high-bandwidth memory.

The firm also flags the company's next-generation WSE-4 chip as a potential positive catalyst. While Cerebras has not provided a formal timeline, Wedbush notes that general speculation points to a late 2026 or early 2027 launch and ramp, with the new design expected to improve both margins and revenue.

Wedbush also credits management with building in some conservatism at the IPO stage, suggesting that simply executing to plan could yield upside to current estimates.

Longer term, the firm argues Cerebras's story is less about near-term beats and more about capturing share in a rapidly expanding AI accelerator market. Analysts point to continued growth in inference demand, potential incremental customers supported by TSMC output, and worsening memory pricing constraints as tailwinds that should work in the company's favor.

The firm considers 2028 the appropriate reference year as the first in which OpenAI-related investment costs begin to moderate and the company reaches what it views as meaningful revenue and operational scale.

Wedbush maintains a Buy rating and $270 price target on Cerebras based on a 40x price-to-earnings multiple applied to its 2028 EPS estimate of $6.03, plus net cash of $28.19 per share.

GAAP quarterly revenue of $193.4 million; record core revenue of $191.3 million, up 92% from a year agoAnnounced a multi-year deal with OpenAI for 750MW valued at more than $20 billionLaunched multi-year partnership with Amazon to bring Cerebras’ fast inference to AWS Raised $6.4 billion in Q2 in largest semiconductor IPO of all time SUNNYVALE, Calif., June 23, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems Inc. (NASDAQ: CBRS), maker of the world’s fastest AI infrastructure, today announced financial results for the first quarter of fiscal year 2026, ended March 31, 2026.

“This was an outstanding start to 2026 for Cerebras. And we are proud of our achievements,” said Andrew Feldman, Cerebras co-founder and CEO. “AI has moved from being a novelty to being useful and productive. Cerebras’ wafer-scale technology delivers the fastest AI in the world. And fast AI is more valuable than slow AI because it is more productive. It provides answers in less time. It delivers solutions in less time. This in turn has created significant momentum with pioneering customers like OpenAI and AWS and emerging customers as well. The growing importance of AI in our economy requires AI infrastructure that can power the most advanced applications at unprecedented speed. This is the Cerebras mission.”

“Our strong financial performance in Q1 highlights the large and rapidly growing opportunity in front of us,” said Bob Komin, Cerebras CFO. “We are focused on innovating at the pace of demand, supporting accelerating investments in growth and capitalization on strategic opportunities while effectively managing our capital structure.”

Q1 2026 and Recent Business Highlights

Announced a multi-year deal with OpenAI valued at more than $20 billion Reached agreement for OpenAI to deploy 750 megawatts of Cerebras’ high-speed inference compute over the next several yearsCo-launched Codex-Spark, a model designed for near-instant coding and optimized for interactive work where latency matters, delivering more than 1,000 tokens per second Began a multi-year partnership with AWS to bring fast inference to an even bigger scale through global distribution for every startup, AI native, and enterprise company Together with AWS, we will launch a disaggregated inference strategy, with AWS’s Trainium 3 chips performing the prefill and the Cerebras CS-3 running blisteringly fast inference for decode Launched enterprise customer trials of Kimi K2.6 and Gemma 4 Kimi K2.6, the leading open-weight frontier model and the first trillion-parameter model served on Cerebras, achieved performance approaching 1,000 tokens per second as independently measured by Artificial AnalysisGemma 4 31B, flagship of Google DeepMind’s open-weight Gemma family, runs an order of magnitude faster on Cerebras based on scores on the Artificial Analysis Intelligence Index, enabling image understanding at Cerebras speed Raised $6.4 billion in gross proceeds through our IPO, in addition to the $1 billion Series H pre-IPO financing closed in February and the $1 billion working capital loan from OpenAI in January. Also, in April, Cerebras closed a revolving credit facility for up to $850 million from a broad syndicate of investment banks to further support the company’s strategy to accelerate the pace of our data center acquisitions. 1Q 2026 Financial Highlights

GAAP Financial Results:

GAAP revenue of $193.4 million, up 13% sequentially and up 94% year-over-year Hardware revenue of $110.6 million, up 59% year-over-yearCloud and other services revenue of $82.8 million, up 178% year-over-year GAAP gross margin of 45% GAAP hardware gross margins of 41%GAAP cloud and other services gross margins of 49% GAAP loss from operations of $15.0 millionGAAP net loss of $14.0 millionCash, cash equivalents, restricted cash, and short-term investments of $3.3 billion Core Financial Results are all non-GAAP metrics (and exclude the impact of amortization of customer warrants, data center pass-through revenues and costs, stock-based compensation, and certain other items):

Core total revenue of $191.3 million, up 12% sequentially and up 92% year-over-year Core hardware revenue of $111.6 million, up 60% year-over-yearCore cloud and other services revenue of $79.8 million, up 167% year-over-year Core gross margin of 47% Core hardware gross margins of 42%Core cloud and other services gross margins of 53% Core operating loss of $3.5 millionCore net loss of $2.5 million Q2 2026 Financial Outlook

Core Non-GAAP Financial Outlook: Core revenue of approximately $194.0 million, up 88% year-over-yearCore gross margin in the range of 36 - 38%Core operating margins in the range of  (30) to (32)% Full Year Fiscal 2026 Financial Outlook

Core Non-GAAP Financial Outlook:

Core revenue of $855.0 to 865.0 million, up 69% year-over-year at the midpointCore gross margin in the range of 38 - 41%Core operating margins in the range of (28) to (32)% Earnings Webcast and Conference Call

Cerebras Systems will host a conference call to review its financial results for the first quarter of fiscal 2026 and to discuss our financial outlook today at 2 p.m. PT (5 p.m. ET). Interested parties may join the conference call via the webcast and can be accessed at the Cerebras website at https://investors.cerebras.ai/. The webcast will be recorded and available for replay on the same website following the conclusion of the conference call.

About Cerebras Systems

Cerebras Systems (NASDAQ: CBRS) is building the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. They believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud.

Investor Relations
Sean Dorsey
[email protected]

Corporate Communications
Kriselle Laran
[email protected]

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements regarding Cerebras’ future financial performance, including Cerebras’ expectations regarding its revenue, cash flows, expenses, gross margins, and other results of operations, business strategy, such as partnerships, investments, financings, borrowings, capital structure, capital allocations and data centers, growth and market opportunity, customer demand, product roadmap, technology leadership, supply chain, operating model, and outlook for Q2 and full year 2026, as well as the timing, execution and anticipated benefits of customer, partner and financing arrangements, deployments and capacity expansion initiatives, and any assumptions relating to the foregoing. The words “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “objective,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Cerebras’ control. These risks and uncertainties include, but are not limited to: Cerebras’ ability to sustain and manage its growth, access borrowings and other sources of capital on acceptable terms, and deploy available capital to support growth; its history of net losses and ability to achieve and maintain profitability; its limited operating history at its current scale and ability to accurately forecast revenue and appropriately budget and manage expenses; its dependence on a limited number of significant customers, including OpenAI, Group 42 Holding Ltd, Mohamed bin Zayed University of Artificial Intelligence, and AWS, and the potential impact of any reduction in demand from, material adverse development in its relationships with, or failure to meet its obligations to, such customers, including under its Master Relationship Agreement with OpenAI; the timing, execution and expected benefits of its strategic customer, partner and financing arrangements; its historical reliance on sales of hardware systems and the early-stage, rapidly evolving market for its cloud-based offerings and AI infrastructure; its ability to secure sufficient data center capacity and capital to support its cloud-based offerings; its ability to launch new offerings and add new product capabilities; and its ability to compete effectively in the rapidly evolving and competitive market for AI computing solutions.

Cerebras’ actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Accordingly, undue reliance should not be placed on such statements. These forward-looking statements are made as of the date they were first issued and are based on information available to Cerebras together with Cerebras’ expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. These forward-looking statements should not be relied upon as representing Cerebras’ views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results. Cerebras undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Further information on potential risks that could affect actual results is included in Cerebras’ most recent filings with the Securities and Exchange Commission (the “SEC”), including in Cerebras’ most recent Quarterly Report on Form 10-Q, copies of which may be obtained by visiting Cerebras’ Investor Relations website at investors.cerebras.ai or the SEC’s website at www.sec.gov.

Discussion of Non-GAAP Financial Measures

Use of non-GAAP financial measures

We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include Core total revenue, Core hardware revenue, Core cloud and other services revenue, Core gross profit, Core hardware gross profit, Core cloud and other services gross profit, Core gross margin, Core hardware gross margin, Core cloud and other services gross margin, Core operating loss, Core operating margin, Core net loss, and adjusted earnings before income tax, depreciation and amortization (“Adjusted EBITDA”). We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, US GAAP. The GAAP measures comparable to the supplemental non-GAAP financial measures are as follows:

The GAAP measure most directly comparable to Core total revenue is total revenue.The GAAP measure most directly comparable to Core hardware revenue is hardware revenue.The GAAP measure most directly comparable to Core cloud and other services revenue is cloud and other services revenue.The GAAP measure most directly comparable to Core gross profit is GAAP gross profitThe GAAP measure most directly comparable to Core gross margin is GAAP gross marginThe GAAP measure most directly comparable to Core hardware gross margin is hardware gross marginThe GAAP measure most directly comparable to Core cloud and other services gross margin is cloud and other services gross marginThe GAAP measure most directly comparable to Core operating loss is loss from operationsThe GAAP measure most directly comparable to Core operating margin is GAAP operating marginThe GAAP measure most directly comparable to adjusted earnings before income tax, depreciation and amortization (“Adjusted EBITDA”) is loss from operations.The GAAP measure most directly comparable to Core net loss is net loss. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables below or elsewhere in the materials accompanying this press release.

Usefulness of non-GAAP financial measures to investors

By excluding certain items that may not be indicative of our recurring operating results from our core technology and service offerings and stock-based compensation from grants of equity awards, we believe that the Non-GAAP metrics described below provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow additional information with respect to financial measures used by management in its financial and operational decision-making and may be useful to our institutional investors and the analyst community to help them analyze the health of our business. Disclosure of these non-GAAP financial measures also facilitates the comparisons of Cerebras’ operating performance with the performance of other companies in the same industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a manner comparable to their core operations.

Economic substance of and material limitations associated with non-GAAP financial measures used by Cerebras

Core revenue, Core hardware revenue, Core cloud and other services revenue, Core gross profit, Core hardware gross profit, Core cloud and other services gross profit, Core gross margin, Core hardware margin, Core cloud and other services margin, Core operating loss, Core operating margin, Adjusted EBITDA and Core net loss are adjusted, as applicable, to: (i) exclude non-cash stock-based compensation; (ii) exclude pass-through revenues and costs that are not part of our core technology and services offering; and (iii) add back non-cash amortization from customer warrants that is recorded as a reduction in revenues. Non-GAAP adjusted EBITDA excludes the impacts of depreciation and amortization and stock-based compensation.

Core gross margin, Core hardware margin, and Core cloud and other services margin represent Core gross profit, Core hardware gross profit, and Core cloud and other services gross profit, respectively, expressed as a percentage of their corresponding Core revenue.

More specifically, Cerebras excludes each of those items mentioned above for the following reasons:

Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to employees, Cerebras excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses, and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding stock-based compensation expense.Amortization of customer warrants consists of equity granted to customers and recorded as contra-revenue. We exclude the impact of amortization of customer warrant assets recorded as contra‑revenue from our non‑GAAP results because it represents a non‑cash, valuation‑driven adjustment associated with equity instruments issued to customers. This adjustment does not reflect the underlying economics of our core revenue‑generating activities, including pricing, volume, or cost of delivering our products and services, and therefore may not be indicative of our ongoing operating performance.Pass-through revenue and associated pass-through cost of revenue relate to non-recurring data center start-up and recurring data center costs that are incurred on behalf of specific customers. We exclude pass‑through revenue and the associated pass-through cost of revenue from our non‑GAAP financial measures because such amounts are incurred on behalf of specific customers based on capacity deployment options and may vary significantly from period to period. These pass-through revenues and costs do not reflect the underlying economics of our core hardware technology and services offerings, generate fixed minimal gross margins and can significantly distort period‑to‑period comparisons of our operating performance. There are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. No reconciliation is provided with respect to certain forward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking basis. We cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results. Cerebras compensates for these limitations on the use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Cerebras also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure for this quarter and prior periods within this press release and Cerebras encourages investors to review those reconciliations carefully.

 CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
  Three Months Ended March 31,  2026   2025 Revenue   Hardware$110,593  $69,674 Cloud and other services 82,813   29,838 Total revenue 193,406   99,512 Cost of revenue   Hardware 64,931   48,410 Cloud and other services 42,299   9,498 Total cost of revenue 107,230   57,908 Gross profit 86,176   41,604 Operating expenses   Research and development 75,495   52,751 Sales and marketing 14,701   10,326 General and administrative 11,017   6,997 Total operating expenses 101,213   70,074 Loss from operations (15,037)  (28,470)Other income, net 2,528   6,286 Loss before income taxes (12,509)  (22,184)Income tax expense 1,497   1,683 Net loss$(14,006) $(23,867)    Net loss per share, basic and diluted$(0.22) $(0.46)Weighted average shares outstanding, basic and diluted 62,806   52,003   CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited)
(in thousands)
  Three Months Ended March 31,  2026   2025 Net loss$(14,006) $(23,867)Change in foreign currency translation adjustments, net of tax 911   180 Available-for-sale investments:   Change in net unrealized gain (loss) on debt securities, net of tax 1,184   (72)Comprehensive loss$(11,911) $(23,759)  CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)  March 31, 2026 December 31, 2025ASSETS   Current assets:   Cash and cash equivalents$1,716,016  $701,706 Restricted cash 1,029,098   228,672 Investments 515,605   406,531 Accounts receivable, net 62,631   50,423 Inventories 89,040   63,626 Customer warrants 90,701   60,906 Prepaid expenses and other current assets 77,870   31,782 Total current assets 3,580,961   1,543,646 Property and equipment, net 572,439   437,396 Customer warrants, net of current portion 425,355   91,447 Operating lease right-of-use assets 353,303   248,950 Other non-current assets 16,320   4,598 Total assets$4,948,378  $2,326,037     LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT   Current liabilities:   Accounts payable$50,336  $48,630 Deferred revenue 149,918   131,049 Operating lease liability 66,218   45,865 Customer deposits 368,426   354,460 Loan from customer 621,306   — Accrued and other current liabilities 171,042   139,536 Total current liabilities 1,427,246   719,540 Deferred revenue, net of current portion 94,344   35,847 Operating lease liability, net of current portion 312,474   215,957 Loan from customer, net of current portion 361,617   — Total liabilities$2,195,681  $971,344     Redeemable convertible preferred stock$2,947,379  $1,933,348     Stockholders’ deficit   Class A common stock 1   1 Class N common stock —   — Treasury stock 742,713   346,829 Additional paid-in capital (21,456)  (21,456)Accumulated other comprehensive income 3,396   1,301 Accumulated deficit (919,336)  (905,330)Total stockholders’ deficit (194,682)  (578,655)Total liabilities, redeemable convertible preferred stock, and stockholders’ deficit$4,948,378  $2,326,037   CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
  Three Months Ended March 31,  2026   2025 Cash flows from operating activities:   Net loss$(14,006) $(23,867)Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:   Depreciation and amortization 18,175   3,911 Non-cash interest expense 18,949   — Non-cash lease expense 15,775   2,912 Stock-based compensation 9,593   9,154 Provision for product warranties 4,590   4,500 Amortization of customer warrants 2,053   — Other (959)  (254)Changes in operating assets and liabilities:   Accounts receivable (12,208)  56,787 Inventories (21,684)  53,752 Prepaid expenses and other assets (57,603)  3,688 Accounts payable (10,070)  (5,650)Deferred revenue 36,769   15,055 Customer deposits 13,966   (159,599)Other liabilities 8,995   (15,326)Net cash flows provided by (used in) operating activities$12,335  $(54,937)Cash flows from investing activities:   Purchases of property and equipment$(131,970) $(98,244)Purchases of investments (308,801)  (20,175)Maturities and sales of investments 204,155   61,673 Net cash flows used in investing activities$(236,616) $(56,746)Cash flows from financing activities:   Proceeds from sale of shares of Series H redeemable convertible preferred stock$1,014,249  $— Costs incurred in connection with the sale of shares of Series H redeemable convertible preferred stock (218)  — Proceeds from Working Capital Loan 1,004,571   — Proceeds from issuance of shares of Class N common stock 15,019   — Proceeds from exercise of stock options 5,315   1,552 Tax withholding from tender offer (623)  — Payments of deferred offering costs (207)  — Net cash flows provided by financing activities$2,038,106  $1,552 Effect of exchange rate on cash 911   180 Increase in cash, cash equivalents, and restricted cash$1,814,736  $(109,951)Cash, cash equivalents, and restricted cash beginning of period 930,378   581,965 Cash, cash equivalents, and restricted cash end of period$2,745,114  $472,014   CEREBRAS SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited)
(in thousands)
   Three Months Ended March 31,   2026   2025  Total Hardware Cloud and Other Services Total Hardware Cloud and Other ServicesGAAP revenue $193,406  $110,593 $82,813  $99,512 $69,674 $29,838Less: Pass-through revenue  (4,111)  —  (4,111)  —  —  —Add: Amortization of customer warrant assets  2,053   969  1,084   —  —  —Core revenue $191,348  $111,562 $79,787  $99,512 $69,674 $29,838   Three Months Ended March 31,   2026   2025  Total Hardware Cloud and Other Services Total Hardware Cloud and Other ServicesGAAP gross profit $86,176  $45,662 $40,514  $41,604 $21,264 $20,340Less: Pass-through revenue  (4,111)  —  (4,111)  —  —  —Add: Pass-through costs  3,991   —  3,991   —  —  —Add: Amortization of customer warrant assets  2,053   969  1,084   —  —  —Add: Stock-based compensation expense  950   238  712   326  82  245Core gross profit $89,059  $46,869 $42,190  $41,930 $21,346 $20,585   Three Months Ended March 31,  2026  2025   Total Hardware Cloud and Other Services Total Hardware Cloud and Other ServicesGAAP gross margin 44.6% 41.3% 48.9% 41.8% 30.5% 68.2%Non-GAAP adjustments 1.9% 0.7% 4.0% 0.3% 0.1% 0.8%Core gross margin 46.5% 42.0% 52.9% 42.1% 30.6% 69.0%   Three Months Ended March 31,   2026   2025   Total Research and Development Sales and Marketing General and Administrative Total Research and Development Sales and Marketing General and AdministrativeGAAP operating expenses $101,213  $75,495  $14,701  $11,017  $70,074  $52,751  $10,326  $6,997 Less: Stock-based compensation expense $(8,643) $(5,699) $(1,792) $(1,152) $(8,828) $(5,712) $(1,949) $(1,167)Core operating expense $92,570  $69,796  $12,909  $9,865  $61,246  $47,039  $8,377  $5,830   Three Months Ended March 31,  2026   2025 GAAP loss from operations$(15,037) $(28,470)Less: Pass-through revenue (4,111)  — Add: Stock-based compensation expense 9,593   9,154 Add: Pass-through costs 3,991   — Add: Amortization of customer warrant assets 2,053   — Core operating loss$(3,511) $(19,316)  Three Months Ended March 31, 2026  2025 GAAP operating margin(8)% (29)%Non-GAAP adjustments6% 9%Core operating margin(2)% (19)%  Three Months Ended March 31,  2026   2025 GAAP loss from operations$(15,037) $(28,470)Add: Depreciation and amortization 18,175   3,911 Add: Stock-based compensation 9,593   9,154 Adjusted EBITDA$12,731  $(15,405)  Three Months Ended March 31,  2026   2025 GAAP net loss$(14,006) $(23,867)Less: Pass-through revenue (4,111)  — Add: Stock-based compensation expense 9,593   9,154 Add: Pass-through costs 3,991   — Add: Amortization of customer warrant assets 2,053   — Core net loss$(2,480) $(14,713)

Cerebras Systems CBRS shares tumbled about 10% in premarket trading on Wednesday after the artificial intelligence chipmaker forecast lower profit margins for 2026.

The outlook overshadowed better-than-expected quarterly results and highlights the costs of scaling its rapidly growing AI infrastructure business.

If losses hold, the stock is on track to trade at its lowest level since its market debut more than a month ago and erase more than $6 billion in market value.

The decline adds to a sharp pullback in the stock since its blockbuster initial public offering.

Shares are now down more than 27% from their debut as enthusiasm around artificial intelligence stocks cools and investors increasingly question the massive spending required to build AI infrastructure.

The company reported revenue of $193 million for the quarter, topping analyst estimates of $181 million and rising 94% from a year earlier.

Cerebras also posted an adjusted operating loss of $3.5 million, an improvement from a loss of $19.3 million in the same period last year.

The company forecast second-quarter revenue of $194 million, representing year-over-year growth of 88% and exceeding Wall Street expectations of $178 million.

Despite the strong top-line performance, investors focused on the company's profitability outlook.

Cerebras projected adjusted gross margins of between 38% and 41% for 2026, well below the 47% margin reported in the first quarter.

Although the forecast exceeded analyst expectations of 29.58%, it remains significantly lower than the margin profiles of major semiconductor peers.

Nvidia has reported gross margins in the mid-70% range, while Advanced Micro Devices has generated margins in the mid-50% range.

Analysts have previously warned that Cerebras' margins could come under pressure because of its relatively larger chip designs and the costs associated with meeting surging customer demand.

During its earnings call, the company said demand from OpenAI's cloud operations is growing faster than it can bring new servers online.

To bridge the gap, Cerebras decided to rent back equipment it had previously sold to other customers and redeploy it to OpenAI. The arrangement is expected to weigh on profitability this year.

The company's revenue picture is also complicated by warrants for 33.4 million shares granted to OpenAI.

The value of these warrants is recognized as a sales discount, creating a noncash contra-revenue charge that analysts expect to grow as the OpenAI contract ramps up.

Despite concerns about margins, analysts continue to point to the company's long-term growth prospects.

Morgan Stanley raised its price target on Cerebras to $273 from $250, while TD Cowen said agreements with Amazon and OpenAI remain critical to the company's future.

Cerebras has signed a $20 billion multi-year agreement with OpenAI. Chief Executive Officer Andrew Feldman said on the post-earnings call that OpenAI's GPT 5.4 is currently running on Cerebras chips.

The ChatGPT maker is expected to deploy 750 megawatts of Cerebras semiconductors under the agreement.

Feldman also said Amazon Web Services will soon begin using Cerebras chips in its data centers, with revenue contributions expected next year.

The arrangement would make AWS the first major cloud provider to host Cerebras' AI chips.

At the end of 2025, Cerebras reported a backlog of $24.6 billion, largely driven by the OpenAI agreement.

The company expects to recognize $3.7 billion of that backlog as revenue during 2026 and 2027.

Cerebras has experienced significant volatility since its IPO. The stock was priced at $185 in May and surged to as high as $386 on its first day of trading before retreating sharply.

The upcoming lockup expirations could add further pressure to the stock.

Nearly 13% of IPO shares become eligible for sale this week, while another 17% of shares are scheduled to become tradable shortly after the company reports second-quarter earnings.

A month has gone by since the last earnings report for Toll Brothers (TOL - Free Report) . Shares have added about 9.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Toll Brothers due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Toll Brothers Inc. before we dive into how investors and analysts have reacted as of late.

TOL Beats Q2 Earnings & Revenue Estimates on Higher DeliveriesToll Brothers reported second-quarter fiscal 2026 (ended April 30) results, with earnings and revenues beating the Zacks Consensus Estimate. However, both the top and bottom lines declined on a year-over-year basis.

TOL’s top-line beat was underpinned by steady demand across its footprint and a favorable mix that lifted delivered pricing. The company’s average price on home deliveries rose meaningfully from last year, helping cushion the impact of lower unit volume.

On a macro level, the company navigated a challenging housing market characterized by pressures such as volatile mortgage rates, elevated inflation and fluctuations in luxury home demand.

TOL’s Quarterly Earnings & Revenue DiscussionThe company reported adjusted earnings per share (EPS) of $2.72, which beat the Zacks Consensus Estimate of $2.58 by 5.4% but declined 22.3% year over year.

In the fiscal second quarter, total revenues of $2.53 billion surpassed the consensus mark of $2.41 billion by 5.1% but fell 7.6% from the year-ago quarter.

Inside Toll Brothers’ Q2 ResultsFor the quarter under review, Toll Brothers’ total home sales revenues decreased 7.2% (down from our projection of a 11.5% year-over-year decline) year over year to $2.51 billion from $2.71 billion. Home deliveries declined 14.1% to 2,491 units from 2,899 units in the year-ago quarter (down from our expectation of a 15.4% decline year over year).

Despite the lower volume, the average delivered price increased 8% year over year to about $1,008,600 from $933,600, highlighting a favorable pricing and mix backdrop in the luxury segment. Our model had expected ASP to be up 4.5% year over year to $975,900.

Toll Brothers’ Orders Grow While Backlog Stays SolidOrder momentum remained a constructive signal for a builder operating in a rate-sensitive environment. Net signed contracts increased 6.9% year over year to 2,834 homes, and contract value rose 8.1% to $2.81 billion, reflecting steady demand from higher-income buyers despite broader affordability pressures. We had projected net-signed contracts to be up 4% in units and 5.1% in value for the quarter.

Backlog ended the quarter at 5,394 homes valued at $6.32 billion, down 11% and 7.6%, respectively, from the prior-year period. Even so, the average price of homes in the backlog was $1,171,800, up from $1,128,100 a year ago. Cancellations were controlled, with quarterly cancellations at 4.8% of signed contracts, improving from 6.2% a year ago.

TOL Faces Margin Pressure From Write-Downs and CostsWhile operations were strong enough to drive a revenue beat, profitability was pressured by lower margins and higher costs. Home sales gross margin fell to 23.9% from 26% a year ago, and adjusted home sales gross margin declined to 26.2% from 27.5%, reflecting a less favorable margin environment.

A key drag came from higher inventory impairments and write-offs embedded in home sales cost of revenues. SG&A also moved higher as a percentage of home sales revenues to 10.3% from 9.5%, further constraining year-over-year earnings performance.

Toll Brothers’ Capital Position Supports Shareholder ReturnsToll Brothers continued returning capital while maintaining a strong liquidity position. The company repurchased about 1.2 million shares during the quarter for $175.4 million at an average price of $143.72, and it increased its quarterly dividend to 26 cents per share.

Liquidity remained substantial, with cash and cash equivalents of $1.11 billion at quarter-end, down from $1.26 billion as of Oct. 31, 2025. Available liquidity under the senior unsecured revolving credit facility was $2.24 billion, reflecting strong capacity under the expanded $2.38 billion facility. Leverage stayed conservative, with the debt-to-capital at 24.7% at quarter-end (down from 26% at fiscal 2025 year-end). Net debt-to-capital was 15.4%, slightly above 15.3% at fiscal 2025 year-end, indicating only a modest uptick in net leverage while the company continued investing for growth.

TOL Updates Q3 & FY26 TargetsManagement raised full-year guidance across key homebuilding metrics based on year-to-date performance. For the third quarter, TOL expects deliveries of 2,600-2,700 units (compared with 2,959 units delivered in the prior-year quarter) and an average delivered price of $965,000-$985,000 (compared with $973,600 in the year-ago quarter). Adjusted home sales gross margin is projected at 25.25%, implying a decline from 25.6% in the year-ago period. SG&A is estimated at 10.0% of home sales revenues and a tax rate of 26%.

For full-year fiscal 2026, TOL forecasts deliveries of 10,400-10,700 units. The estimated range reflects a decline from the fiscal 2025 level of 11,292. Average delivered price of $985,000-$1,000,000, indicating growth from $960,200 in fiscal 2025. The company now sees adjusted home sales gross margin at 26.10% (a decline from the 27.3% reported in fiscal 2025) and SG&A at 10.10% of home sales revenues, with period-end community count projected at 480-490.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -15.5% due to these changes.

VGM ScoresCurrently, Toll Brothers has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Toll Brothers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

SummaryCompaniesAdvanced Intel chips can take 2-3 years to make, analysts sayApple may test Intel with lower-end products firstAnalysts split on which manufacturing process Apple will chooseJune 24 (Reuters) - Apple turning to Intel for chips, as Washington announced last week, has the neat logic of necessity meeting ambition. But ​it is not that simple, as analysts say any advanced Intel chip will take two to three years to make and even ‌longer to translate into gains due to the long and exacting production process.

A deal - which neither company has formally announced - would pair Intel's effort to rebuild its credibility as a contract chipmaker with Apple's search for more manufacturing capacity, as its supplier TSMC (2330.TW), opens new tab struggles to meet surging AI chip demand from the likes of Nvidia (NVDA.O), opens new tab.

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Supply constraints at the contract manufacturer have held back ​iPhone sales, Apple CEO Tim Cook said in April.

Baked into this deal is a strategic calculation. Intel has emerged as a key pillar ​in the U.S. plan to rebuild domestic chipmaking through tariffs and incentives, thanks to its 10% stake in the company ⁠and a $5 billion investment from Nvidia at the behest of President Donald Trump.

"The absolute best possible case would be 2-3 years before the first chips ​flowed off the line. It takes 2 years to design an SoC (system on chip) of this complexity, and a further 4 months through production cycle time to ​volume ramp up," said Malcolm Penn, CEO of chip research firm Future Horizons.

This assessment assumes Intel's technology is fully worked out and its design tools are reliable enough for Apple to depend on, Penn said. "With no track record, that's a huge leap of faith and commercial and financial risk," said Penn, who termed the deal "a shotgun wedding".

FIRST TESLA, NOW APPLEAfter missing out ​on the early stages of the AI boom, Intel has begun to show tentative progress, landing Tesla TSLA.O as a customer in April and positioning itself ​for a more consequential partnership with Apple.

Analysts are divided on which Intel manufacturing process Apple will choose.

Some see it following Tesla onto Intel's next-generation 14A, a process years away ‌from volume ⁠production but built on the world's most advanced chipmaking tools.

Others expect Apple to sacrifice cutting-edge gains for reliability, favoring 18A-P, a refined version of Intel's most advanced process that began initial production this month - or an older, reliable node like Intel 3.

"Apple would probably want to use Intel's 14A process technology... and that's expected to be available in 2028 or 2029 so it's still going to be a while," said Bob O'Donnell, an analyst at TECHnalysis Research.

"However, if it proves ​to be true, it's an extremely ​important development for Intel's foundry business ⁠and US-based semiconductor manufacturing in general."

Daniel Newman, CEO of tech research firm Futurum Group, said volume production of Apple-designed chips was unlikely until late 2027 or early 2028, with the initial work focused on less critical components used in ​MacBook Air or some iPad Pro models.

INTEL HAS FACED POOR CHIP YIELDSApple may even hedge, testing Intel with lower-end ​products before committing its ⁠most critical chips, analysts said.

Intel, which has historically faced issues with the timeline and quality of its chips, will have to meet Apple's high expectations for yield, a standard that the world's largest consumer electronics company has come to expect from TSMC. Yield is the percentage of chips on a silicon wafer that work correctly ⁠when manufacturing ​is done.

"Investors are pricing in perfect execution by Intel, which is a company that hasn't delivered ​for about 20 years. Granted, it looks like Intel has made strides with its latest manufacturing process, but I think we should all at least modestly discount a perfect outcome," said Paul ​Meeks, head of tech research at Freedom Capital Markets and an Intel investor.

Reporting by Zaheer Kachwala and Anhata Rooprai in Bengaluru; Editing by Sayantani Ghosh and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways Meta expanded Instagram for TV to Samsung Smart TVs, adding to Fire TV and Google TV reach. META is testing channels, Reel casting, Stories on TV and longer-form creator content. Meta said Instagram drove a 10% lift in reel time spent; Facebook video time rose 8% globally. Meta Platforms (META - Free Report) is benefiting from its strategic expansion of Instagram TV (IGTV) reach, leveraging the platform’s growing emphasis on video content to drive higher user engagement. The company’s focus on enhancing video experiences, including improvements to content recommendations and AI-driven personalization, has led to significant increases in time spent on video features such as Reels and IGTV.

Meta Platforms' expanding portfolio has been noteworthy. The company recently expanded Instagram for TV to Samsung Smart TVs in the United States, adding to its availability on Amazon Fire TV and Google TV devices. The company is also testing new features to make shared viewing easier, including interest-based channels, casting Reels from phones, Stories on TV and support for horizontal videos. META is exploring longer-form creator content, episodic series and live broadcasts tailored for the living room experience. The updates aim to make Instagram a more social, communal viewing platform while helping creators reach audiences on larger screens.

Meta Platforms' AI advancements facilitate the auto-translation and dubbing of videos, making IGTV content accessible to a broader, global audience. Over half a billion users on both Facebook and Instagram now watch AI-translated videos weekly. This broadening of reach increases the potential audience for IGTV creators and enhances the platform’s appeal to advertisers seeking to target diverse demographics with localized content. The company continues to see improvements on Instagram, which have driven a 10% lift in reel time spent, while Facebook saw an 8% increase in total video time globally, the largest quarter-over-quarter gain in four years.

Meta Platform’s strong portfolio is fueling robust financial results and is expected to benefit the company’s top-line growth. For the second quarter of 2026, the company expects total revenues between $58 billion and $61 billion.

META Faces Stiff CompetitionMeta Platforms is facing stiff competition from competitors like Snap (SNAP - Free Report) and Reddit (RDDT - Free Report) . Both Snap and Reddit are expanding their portfolio to compete in the rapidly growing digital ad market.

Reddit is continuing to grow as engagement rises and monetization gets better through a stronger performance ad stack. The company is benefiting from an increase in daily active users and weekly active users, along with a higher average revenue per user and more advertisers using tools like Reddit Max, Dynamic Product Ads and improved measurement. AI-led features, including translation and better discovery, are helping broaden the user base and deepen intent-driven use cases, while content licensing adds diversification.

Snapchat has reached 956 million monthly active users and 483 million daily active users in the first quarter of 2026, driven by continued adoption of Augmented Reality Lenses, Spotlight and AI-powered features. Key growth drivers include its AI-powered automation solutions, AI Sponsored Snaps, Sponsored Snaps, Promoted Places, Dynamic Product Ads and subscription offerings including Snapchat+, Memories Storage and Lens+.

META’s Share Price Performance, Valuation, and EstimatesMETA’s shares have lost 14.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 20%.

META Stock's Performance
Image Source: Zacks Investment Research

META shares are overvalued, with a forward 12-month Price/Sales of 5.15X compared with the Internet - Software’s 3.66X. META has a Value Score of C.

META's Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $33.01 per share, which has increased by a penny over the past 30 days. This suggests 40.53% year-over-year growth.

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

People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas Purchase Licensing Rights, opens new tab

June 23 (Reuters) - The Trump administration is pressing Meta (META.O), opens new tab to submit its AI models for voluntary review, which would allow the government ​to evaluate their abilities and vulnerabilities, the New York Times ‌reported on Tuesday, citing four people familiar with the confidential request.

The request was made in emails with the social media giant, the report said, as the administration steps ​up oversight of the AI industry.

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The Facebook parent, which launched the Muse ​Spark AI model in April, is the only major U.S. ⁠developer of AI technology that has not reached an agreement to voluntarily ​share its models with the federal government for review, according to the report.

"We ​share the administration's goal of advancing U.S. leadership on robust and secure frontier AI. While we are working through the details, we hope to sign the agreement soon," ​Meta told Reuters in an emailed response.

The U.S. Commerce Department did not ​immediately respond to a Reuters request for comment.

Earlier this month, the U.S. government ordered Anthropic to ‌suspend ⁠access to its most advanced AI models for foreign nationals, citing national security concerns.

OpenAI and Anthropic had already been working with the U.S. government to test unreleased AI models, while Google DeepMind (GOOGL.O), opens new tab, Microsoft (MSFT.O), opens new tab and xAI agreed in May ​to provide the ​government early access ⁠to new models for national-security evaluations.

Concern is growing in Washington over the national security risks posed by powerful AI ​systems. By securing early access to frontier models, U.S. ​officials are ⁠aiming to identify threats ranging from cyberattacks to military misuse before the tools are widely deployed.

On June 2, President Donald Trump signed an executive order establishing ⁠a ​voluntary framework for AI developers to offer "covered ​frontier models" to the U.S. government for up to 30 days before releasing them to trusted ​partners.

Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed and Vijay Kishore

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Sunrun shares are powering higher. What’s behind RUN gains? The AgreementUnder the framework, Sunrun, Renew Home, and Tesla will aggregate millions of existing home energy devices—including home battery systems, smart thermostats, and electric vehicles—into local, turnkey power solutions for data centers and utilities.

The combined 16-gigawatt resource draws dispatchable capacity from hundreds of thousands of home battery systems operated by Sunrun and Tesla, alongside flexible peak capacity from more than 8 million smart thermostats and devices managed by Renew Home. The framework requires no additional hardware, software, interconnection, water, or land usage—and is deployable in months, not years.

In Virginia, the companies already have more than 300 megawatts of capacity available for immediate deployment, expected to grow to at least 500 megawatts by 2030. The companies have also committed to provide capacity to PJM’s proposed Reliability Backstop Process, which if accepted would unlock over a gigawatt of capacity immediately.

“The grid of the 1800s cannot power the innovation of 2026,” said Mary Powell, CEO of Sunrun. “When data centers are asked to throttle down operations during the most expensive and stressful hours of the day, we can activate our distributed power plants to help provide them the power they need while also protecting American families from footing the bill for costly new infrastructure.”

Sunrun Shares ClimbRUN Price Action: At the time of publication, Sunrun shares are trading 19.28% higher at $15.28, according to data from Benzinga Pro.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Key Takeaways Coca-Cola's Q1 organic revenues rose 10%, driven by a 3% unit case volume and 2% price/mix growth.Pricing actions added roughly four points to price/mix, partly offset by unfavorable mix in several markets.Coca-Cola delivered volume growth across all segments and extended value-share gains to 20 quarters. Pricing remains an important growth lever for The Coca-Cola Company (KO - Free Report) , but its revenue story is becoming increasingly balanced between pricing and volume gains. Organic revenues increased 10% in the first quarter of 2026, supported by a 3% rise in unit case volume and 2% price/mix growth. Management noted that pricing actions contributed roughly four percentage points to the price/mix, although this was partly offset by an unfavorable mix across several markets.

The company's ability to sustain pricing reflects the strength of its brands and sophisticated revenue growth management capabilities. Coca-Cola continues to adjust pricing, packaging and promotional strategies based on local market conditions while protecting consumer affordability. Management emphasized that affordability remains a key pillar of the company's growth strategy, particularly for lower-income consumers facing economic pressure. In North America, Coca-Cola expanded affordable single-serve and multi-serve offerings to retain consumers within its franchise rather than sacrificing volume.

Management expects a more balanced growth algorithm throughout 2026, with the volume and price/mix contributing relatively equally to the top-line expansion. While pricing remains embedded in Coca-Cola's strategy, the company is increasingly prioritizing consumer recruitment, market share gains and transaction growth. Management suggested that quarterly fluctuations may occur, but Coca-Cola remains committed to balancing volume growth with pricing initiatives.

The company's confidence is supported by strong brand momentum, innovation and market execution. Coca-Cola delivered volume growth across all operating segments and extended its streak of value-share gains to 20 consecutive quarters. As inflation, geopolitical uncertainty and consumer pressures persist, Coca-Cola's pricing power remains a competitive advantage. However, 2026 appears less about aggressive pricing and more about leveraging pricing alongside affordability, innovation and consumer-centric execution to sustain long-term revenue growth.

KO’s Peers: Is Pricing Power Also Driving Growth at PEP & MNST?Pricing has been a major growth engine for beverage companies in recent years, but as inflation moderates and consumers become more value-conscious, the key question is whether PepsiCo Inc. (PEP - Free Report) and Monster Beverage Corporation (MNST - Free Report) can still rely on pricing actions to drive revenue growth.

PepsiCo's pricing power remains an important contributor to growth in 2026, though the company is increasingly relying on a balanced mix of pricing, affordability initiatives and innovation. In first-quarter 2026, organic revenues rose 2.6%, supported by effective net pricing and modest volume gains, while management highlighted affordability investments and brand restaging efforts as key growth drivers. PepsiCo expects organic revenue growth of 2-4%, suggesting pricing remains a tailwind, but sustainable growth will also depend on volume recovery and continued consumer demand across its beverage and snack portfolios.

Monster Beverage's pricing power continues to support revenue growth in 2026, but it is working alongside strong category demand, innovation and international expansion. Management noted that pricing actions implemented in late 2025 are performing as expected, with modest inflationary pricing helping deliver volume and revenue growth. Pricing also partially offset higher aluminum and freight costs in the quarter. Looking ahead, Monster Beverage remains open to additional pricing opportunities while monitoring consumer resilience and category health, suggesting pricing remains an effective growth lever.

KO’s Price Performance, Valuation & EstimatesShares of Coca-Cola have risen 5.7% in the past three months compared with the industry’s return of 7.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, KO trades at a forward price-to-earnings ratio of 23.57X compared with the industry’s average of 19.08X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings per share implies year-over-year growth of 8.7% and 6.9%, respectively. Estimates for the aforesaid years have been unchanged in the past 30 days.

Image Source: Zacks Investment Research

Coca-Cola currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Uber Technologies Inc (NYSE:UBER, XETRA:UT8) is strengthening its autonomous vehicle strategy through new robotaxi expansion plans in the United States and Europe, moves that Bank of America analysts believe could improve investor sentiment toward the company.

Uber recently announced plans to expand its autonomous vehicle partnerships to Houston with Nuro and Lucid, and to Zurich with WeRide. Bank of America analysts wrote that these developments enhance Uber's autonomous vehicle catalyst path, with five potentially notable launches across US and European cities expected in the second half of 2026.

The analysts maintained a ‘Buy’ rating on Uber shares, writing that successful launches could help shift the narrative around autonomous vehicle supply competition and support valuation expansion.

Uber stock has lagged the S&P 500 since mid-2025, according to the analysts, amid concerns about growing competition in autonomous driving from companies including Alphabet's Waymo and Tesla, as well as broader weakness in internet growth stocks.

Uber, Lucid and Nuro selected Houston as the second market for their robotaxi program after the San Francisco Bay Area, targeting an exclusive launch through the Uber platform by mid-2027.

The service is expected to use Lucid Gravity vehicles equipped with Nuro's Level 4 autonomous driving system. Uber has also secured a 50,000-square-foot depot and charging infrastructure in Houston to support fleet operations.

Bank of America analysts wrote that while some concerns remain regarding Nuro's technology and Lucid's ability to supply vehicles at scale, the Houston expansion suggests increasing confidence in future autonomous vehicle availability.

Separately, Uber and WeRide plan to launch a commercial robotaxi service in the Greater Zurich region later this year, subject to regulatory approval. Riders will be able to access the service through Uber's platform, while local partner Rydera will oversee fleet operations.

The Zurich deployment follows a recently announced expansion into Madrid and marks the fourth of 15 cities expected under the Uber-WeRide partnership. The companies have previously introduced robotaxi services in Abu Dhabi, Dubai and Riyadh.

Bank of America analysts wrote that the planned 2026 deployment timeline is encouraging and indicates that additional cities under the partnership could be introduced during the first half of 2027.

© sarawuth702 / iStock via Getty Images

Uber Technologies (NYSE:UBER | UBER Price Prediction) at $70.91 sits in a holding pattern. The stock absorbed a sharp leg lower on the same day it unveiled a Zurich robotaxi launch with WeRide and a global Level 4 partnership with Stellantis and Wayve, capturing why this name is interesting and uninvestable simultaneously.

Uber runs the world’s largest ride-hailing and food delivery network, with 199 million monthly active platform consumers and 3.6 billion trips last quarter. The platform shifted from cash-burning growth to a free-cash-flow machine, with management leaning into autonomy as the next decade’s flywheel.

Shares are down from $92.65 at the Q3 2025 earnings report to current levels, with the 52-week high of $101.99 now distant.

Why the Bulls See a Compounder on Sale Q1 2026 delivered Gross Bookings of $53.72 billion, up 25% year over year, operating income of $1.923 billion, up 56.6%, and free cash flow of $2.286 billion. Non-GAAP EPS grew 44% year over year, and Uber returned $3.011 billion through buybacks in a single quarter.

Valuation sits at trailing PE of 18 and free cash flow yield of 6.76%. Bulls argue the WeRide, Wayve, Lucid, and Nuro partnerships position Uber as the asset-light demand aggregator of autonomy. Jim Cramer recently flagged the name as “down 29% from its all time high” while earnings compound near 40%. Kevin Warsh’s debut Fed meeting frames a hawkish regime punishing long-duration tech multiples.

Why the Bears See a Multiple Trap Uber’s 200-day moving average sits at $82.41, well above current levels. Margin pressure from foreign equity revaluations has been relentless: a $1.50 billion pre-tax headwind in Q1 after a $1.6 billion hit in Q4, dragging GAAP net income down 85.19%.

A Consumer Reports investigation alleging AI-driven price discrimination, intensifying Waymo and Tesla competition, and an unprofitable Freight segment add pressure to the de-rating story.

Why Patience Is the Cleanest Trade Operating momentum is real, but the chart is broken and macro is hostile. The signal to watch is whether Q2 lands inside management’s $0.78 to $0.82 EPS guide without another nine-figure equity revaluation shock. Stabilization near $58.00 would imply a forward multiple consistent with the current rate regime.

What the Numbers Actually Say Uber trades at $70.91 against a Wall Street average target of $104.43, implying roughly 47% upside if consensus is right. Of 51 covering analysts, 9 rate it Strong Buy, 36 Buy, 5 Hold, and 1 Sell.

Uber is down 13.22% year to date and 16.34% over the past year, while the S&P 500 is up 8.66% year to date and 24% over twelve months. That is roughly 22 points of YTD underperformance.

The Verdict: Watching for Stabilization At $70.91, Uber’s risk/reward looks balanced.

The fundamental story is intact. Gross Bookings compound in the mid-20s, Uber One has reached 50 million members driving half of bookings, and the autonomy stack deepened with WeRide, Stellantis, Wayve, Lucid, and Nuro. But price action signals the market is repricing duration broadly rather than Uber-specific cash flows, and fighting that with fresh capital is a losing trade in a hawkish Warsh regime.

The bull case strengthens if the stock stabilizes in the $58 zone alongside a Q2 earnings report holding the EPS guide with normalizing equity revaluation drag. The bear case strengthens on a guide cut, regulatory escalation from the pricing investigation, or evidence that Waymo is taking incremental share in tier-one US cities.

For long-term holders, the buyback continues to compound per-share value. For prospective buyers, a confirmed price floor would offer a cleaner entry, because a great business at the wrong price still struggles in this macro.

© jetcityimage / iStock Editorial via Getty Images

Amazon (NASDAQ:AMZN | AMZN Price Prediction) is a stock worth owning for the next two decades because three high-margin engines, AWS, advertising, and Prime subscriptions, now compound on top of a retail base that has finally turned profitable. Amazon is an infrastructure-grade holding built to outlast tariff headlines, quarterly free cash flow noise, and even its owner.

Pillar One: Durability Anchored in Three Cash Engines Forget the razor-thin margins on the e-commerce storefront. The true forever story rests on AWS, enterprise advertising, and subscription services, and the latest filings show why. AWS generated $37.59 billion in Q1 2026 revenue at a 37.7% operating margin, growing 28% year over year, its fastest pace in 15 quarters, on a $150 billion annualized run rate. Advertising hit $17.24 billion in the quarter and over $70 billion in trailing twelve-month revenue. Subscription services added $13.43 billion, up 15%. AWS controls roughly a third of the global cloud infrastructure market, and an AWS backlog of $364 billion, before the $100 billion-plus Anthropic commitment, gives the cash engine years of pre-sold work.

Pillar Two: Compounding Without a Dividend Amazon pays no dividend, so income-focused retirees should size accordingly. The compounding instead happens through reinvestment at a 24.3% return on equity. Operating cash flow climbed from $38.5 billion in 2019 to a record $139.5 billion in 2025. Evaluated on its price-to-operating-cash-flow multiple, Amazon screens as an underpriced utility for the modern economy. Earnings power is following: Q1 2026 EPS came in at $2.78 versus a $1.653 estimate, the fifth consecutive quarter beating Wall Street’s bar.

Pillar Three: Built to Survive Cycles Forever holdings need balance sheet armor. Amazon ended Q1 2026 with $101.82 billion in cash, $441.91 billion in shareholder equity, a debt-to-equity ratio of 0.37, and interest coverage of 35x. Even in the 2022 trough, when net income flipped to a $2.7 billion loss, the business still produced $46.8 billion in operating cash flow. Prime is a sticky subscription, AWS contracts are multi-year, and ads run through downturns. That mix is what a retiree wants on autopilot.

The Scenario Where It Lags Amazon will underperform during stretches when the market rewards capital returns over reinvestment. Management plans roughly $200 billion in 2026 capital expenditures, and trailing free cash flow has already compressed to $1.2 billion. If dividend-paying mega-caps lead the tape for a year or two, AMZN will lag. That does not change the thesis. As CEO Andy Jassy put it, “We have been through this cycle with the first big AWS growth wave, and we like the results.” Those data centers, chips, and satellites become the next decade’s cash flow.

With 62 analysts at Buy or Strong Buy and a $312.99 consensus target against a $244.39 share price, the near-term setup is fine, but that is not the point. Amazon’s profile fits a long-duration compounder framework.

by Todd Bishop on Jun 23, 2026 at 11:50 amJune 23, 2026 at 11:50 am

Brendan Burns, Microsoft technical fellow and a co-founder of Kubernetes. (Microsoft Photo) Microsoft is promising relief to engineers who get woken up at 3 a.m. for outages and other cloud glitches: an agent informed by its years of experience running Azure, designed to diagnose whatever’s going wrong and recommend potential fixes. 

One big benefit over humans: the agent can operate without the stress, fatigue, or tunnel vision that often hampers people doing it on little sleep.

“Agents are a little bit less emotionally attached,” said Brendan Burns, a Microsoft technical fellow and corporate vice president who was one of the creators of Kubernetes. He pointed out that agents don’t feel the pressure when a manager asks for a rapid root-cause analysis.

The Azure Copilot Observability Agent, in preview since late last year, was made generally available Tuesday. It investigates incidents by connecting the logs, metrics, traces and other signals scattered across a company’s systems, then points engineers toward the likely cause. 

At this point, the agent does not fix problems on its own. Microsoft also introduced what it calls autonomous operations, in preview, letting the agent triage and investigate alerts without a person prompting it. But it still stops short of acting. It won’t restart a resource or change a configuration, for example, instead leaving it to humans to decide and execute. 

Microsoft is joining a crowded field. Datadog made its Bits AI SRE agent generally available in December, and Amazon’s AWS followed with a comparable DevOps Agent this spring. Microsoft said the agent is priced based on usage rather than a flat per-seat license, which is the same model AWS uses for its DevOps Agent. 

Established observability players including Dynatrace, Splunk, New Relic and Grafana are moving quickly in the same direction, alongside a wave of AI-focused startups. 

In an interview with GeekWire this week, Burns said he believes Microsoft’s breadth is one of its advantages, seeing more of a customer’s software than rivals do, from GitHub to Azure deployments to the signals systems generate. Knowing how those connect, he said, helps the agent trace a problem back to the line of code behind it. 

More than a decade ago, Burns and his then-Google colleagues Joe Beda and Craig McLuckie created Kubernetes, the open-source software that lets companies run applications across large, constantly changing infrastructure. It became foundational to cloud computing, and added to the complexity teams now have to manage.

Kubernetes brought a kind of self-repair to that world: when something breaks, it works automatically to restore the system to a healthy state. But it follows fixed rules, Burns said. It’s “very deterministic” — it “can’t make hypotheses, it can’t investigate solutions.” 

AI tools like the Azure observability agent are meant to add that missing layer: forming a theory about what went wrong, testing it against the data, and continuing to work to find a solution. 

Full autonomy — letting the agent act, not just investigate — is still down the road. In a blog post Tuesday, Burns framed the launch as part of a broader shift toward “agentic operations,” which reason across signals and will someday be able to act on them. 

For now, the agent can do a lot of the digging, even if a human still makes the call. 

Burns, who recalled once pulling a 36-hour on-call shift, said he can think of “a lot of late nights that would have been a lot nicer if I’d had this 10 years ago.”

By PYMNTS  |  June 23, 2026

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Alibaba Group sued the U.S. Department of Defense Tuesday (June 23), seeking to be removed from a list of companies the Department says are supporters of the Chinese military.

The Department published the list earlier this month, and Alibaba argues in its lawsuit that the designation violates the company’s rights to constitutional due process and free speech, Bloomberg reported Tuesday.

Alibaba said it is neither a Chinese military company nor a military-civil fusion, and the company said that the Defense Department did not reply to evidence the company presented showing that it is not a supporter of the Chinese military, according to the report.

A company’s inclusion on the Defense Department’s list can restrict its ability to contract with the U.S. military, can limit its ability to receive research funding, and can signal more punitive trade restrictions in the future, the report said.

Alibaba got its start as an eCommerce company but has since become one of the leading artificial intelligence companies in China, per the report.

Reuters also reported on the lawsuit Tuesday and said that on June 8, the Department of Defense expanded its list of businesses linked to China’s military to include 188 entities.

Alibaba said, per the report: “The determinations have no basis in fact or law. Alibaba is governed by an independent board, none of whom has any military affiliation. Its products and services are built for retail, logistics, and enterprise information technology — not weapons, defense, or intelligence.”

The Defense Department said in a June 8 press release that it identified the 188 companies included on the list after conducting its due diligence.

“The Department will update the list with additional entities as appropriate,” it said. “The United States Government reserves the right to take additional actions on these entities under authorities other than Section 1260H.”

Section 1260H is the statutory requirement of the National Defense Authorization Act for Fiscal Year 2021 under which the Department updated the list.

In the list, the Department of Defense said Alibaba Group is indirectly affiliated with China’s State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) and is affiliated with the country’s Ministry of Industry and Information Technology (MIIT), making the company a military-civil fusion contributor to China’s defense industrial base.

Key Takeaways Boeing's BDS unit generated $7.6B in Q1 revenues, up 21% year over year.Boeing booked $9B in defense orders and ended the period with an $86B backlog.Boeing expanded PAC-3 Seeker production and partnered with Rheinmetall on MQ-28 Ghost Bat. The Boeing Company’s (BA - Free Report) is best known for its commercial aircraft business, but its Defense, Space & Security ("BDS") segment could become an increasingly important contributor to future growth. As global defense budgets rise and military modernization efforts accelerate, Boeing appears well positioned to benefit from demand for advanced aircraft, autonomous systems, satellites, and defense technologies.

During the first quarter, the BDS unit generated $7.6 billion in revenues, up 21% year over year. While the segment has faced execution challenges in recent years, management continues to focus on improving operational performance and reducing costs across major defense programs.

The BDS unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft, which resulted in a solid backlog addition of $86 billion for the period ending March 2026.

During the aforementioned quarter, Boeing's defense business signed a seven-year framework agreement to expand PAC-3 Seeker production and announced a strategic partnership with Rheinmetall to offer the MQ-28 Ghost Bat to Germany. In April, Artemis II successfully completed its mission to the moon, propelled by the Boeing-built Space Launch System core stage rocket.

While commercial aviation remains Boeing's largest business, improving execution, expanding international opportunities, and progress across key defense programs suggest that the BDS segment could become a more meaningful growth driver in the years ahead. If management continues to improve program performance while securing new contracts, the defense business may play an increasingly important role in Boeing's long-term recovery and growth strategy.

Defense Contractors Benefiting From Military ModernizationRising geopolitical tensions, evolving security threats, and the need to replace aging military equipment are prompting governments across the world to increase defense spending and accelerate military modernization programs. These trends are creating significant growth opportunities for leading aerospace and defense companies. Several companies that are well positioned to benefit from these favorable industry dynamics are discussed below.

Lockheed Martin (LMT - Free Report) benefits from strong demand for advanced defense platforms, including the F-35 fighter jet, missile defense systems and space technologies.

RTX Corporation (RTX - Free Report) continues to secure defense contracts across missile systems, air defense solutions, and military aerospace programs, supported by rising global security spending.

BA Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 98.6% and 2,813.2%, respectively.

Image Source: Zacks Investment Research

BA Stock Trades at a DiscountIn terms of valuation, BA’s forward 12-month price-to-sales (P/S) is 1.74X, a discount to the industry’s average of 2.61X.

Image Source: Zacks Investment Research

BA Stock’s Price PerformanceIn the past three months, the company’s shares have risen 10.2% against the industry’s 4.4% decline.

Image Source: Zacks Investment Research

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

At about $45 as of this writing, Nike (NKE 1.91%) stock trades 16% below where it did a decade ago. And shares are 44% below their 52-week high of about $80, reached last August.

In short, it's been a tough run for Nike investors. But is that about to change?

Nike reports fiscal fourth-quarter results (the period ended May 31) on June 30. It will be another test of the turnaround CEO Elliott Hill has led since returning in late 2024, a plan management calls its "Win Now" actions. The question hanging over that report is whether the beaten-down price reflects a business that is finally turning or one that is simply stuck.

Image source: Getty Images.

North America is where the comeback shows Nike's largest market is the clearest sign the plan is working. North America revenue rose 3% to about $5 billion in the fiscal third quarter (the period ended Feb. 28, 2026), led by an 11% jump in wholesale as Nike won back shelf space with retail partners. Management said sell-through grew across every channel in February for the first time in two years, with discounting easing and the digital business strengthening as the quarter went on.

"North America is leading our comeback and is well positioned to sustain the momentum as we move forward," chief financial officer Matthew Friend said on the company's fiscal third-quarter earnings call.

If that February turn holds into the fiscal fourth quarter, even as the region laps last year's heavy clearance sales, it would be real evidence Nike can grow its biggest market again.

But what about weakness in Greater China? Greater China is the other side of the story. Revenue there fell 7% to about $1.6 billion in the fiscal third quarter, and management guided for a roughly 20% drop in the fiscal fourth quarter.

That decline, however, is largely self-inflicted. Nike is deliberately shipping less product to clear out aged inventory and curb the discounting that cheapened the brand there.

As China sales shrank, the region's operating profit rose 11%, and inventory fell by more than 20% in units -- the result of reducing near-term sell-in and pulling key styles off discount instead of flooding stores with inventory.

But there are signs of progress. Nike expanded a revamped store concept to 100 locations, including a flagship in Shanghai, and said full-price selling improved.

The number to watch on June 30 isn't the 20% revenue drop itself. It is whether sell-through and full-price demand keep firming under that reduced supply.

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Checking in on gross margin Nike's gross margin slipped to 40.2% in the fiscal third quarter, down from about 41.5% a year earlier, dragged down mostly by higher U.S. tariffs that cost roughly 3 percentage points of margin on their own. Clearing unsold classic-sneaker inventory out of the market pulled about 5 points off reported revenue on top of that.

With that said, management notably guided to a much smaller margin decline in fiscal Q4 and said margins should start expanding again in the second quarter of fiscal 2027, aided by easing tariff pressure and inventory clean-up costs rolling off.

But the stock's price decline hasn't necessarily created the bargain you might imagine. Nike trades around $45, close to where it sat a decade ago, yet its price-to-earnings ratio is still about 30. This is because earnings have fallen about as fast as the stock. Indeed, net income dropped 35% in fiscal Q3.

The stock's valuation, therefore, only works if profits recover, and profits recover only if the turnaround does.

Management expects to complete its Win Now actions by the end of the calendar year and plans to lay out longer-term targets at an investor day this fall.

It has also been candid about the pace.

"This is complex work, and parts of it are taking longer than I'd like," Hill explained during its fiscal third-quarter earnings call.

I think Nike is a more investable company than it was a year ago, thanks to the stock's sharp decline this year. And a 24-year run of annual dividend increases, along with a 3.6% dividend yield as of this writing, pays shareholders to wait.

Still, I'd want the fiscal fourth-quarter numbers to confirm China is finding a floor and margins are bending back before treating this price as a real opportunity rather than a value trap. The stock is cheap for clear reasons. Whether those reasons are starting to fade will hopefully be revealed on June 30.

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David M. Denton named incoming Chief Financial Officer

BEAVERTON, Ore.--(BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) today announced that David M. Denton will join the company as Executive Vice President and Chief Financial Officer, effective August 17. Matthew Friend will step down as Executive Vice President and Chief Financial Officer at that time and remain with the company through September 4 to support an orderly transition. Friend will participate in the company’s fourth quarter fiscal 2026 earnings call on June 30, as planned.

Denton will lead Nike’s global finance organization, partnering with President and Chief Executive Officer Elliott Hill and the Senior Leadership Team to support disciplined execution, capital allocation, and long-term value creation.

“Dave is a proven public-company CFO who knows how to help great consumer brands operate with discipline and invest to win,” said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. “We’re focused on doing what Nike does best: serving athletes, leading with sport and building the most innovative products in the world. Dave’s experience, judgment, and operating rigor will help us execute against these priorities with consistency and build on the progress underway.”

Denton joins Nike from Pfizer, Inc., where he has served as Chief Financial Officer and Executive Vice President since May 2022. He brings more than 30 years of finance and operating leadership experience across complex global public companies. Prior to Pfizer, Denton served as Chief Financial Officer and Executive Vice President of Lowe’s Companies, Inc. from 2018 to 2022, where he oversaw finance, strategy, and other enterprise functions while helping advance the company’s transformation and growth priorities. Earlier in his career, he spent two decades at CVS Health Corporation, including as Executive Vice President and Chief Financial Officer, where he helped guide the company’s evolution into a diversified health solutions organization. Denton also brings public company governance experience having previously served on the Boards of Directors of Haleon (2023–2024) and Tapestry (2014–2023) and is expected to serve on the Board of Honeywell Aerospace following its planned spin-off from Honeywell.

“Nike is one of the world’s great brands, with extraordinary strengths in sport, innovation, and global scale,” said Denton. “I’m excited to partner with Elliott and the leadership team to support the company’s priorities, invest with discipline, and help deliver sustainable long-term value as Nike continues to lead with sport and serve athletes around the world.”

"This is a natural moment for a leadership transition as we move from foundational actions to sustained growth through our Sport Offense operating model,” added Hill. “I’d like to thank Matt for his many contributions to Nike over the years. He has dedicated a significant part of his career to this company and has been a valued colleague and partner to many across Nike. We are grateful for his service, appreciate his commitment to ensuring a seamless transition, and wish him all the best in his next chapter.”

NIKE, Inc. Provides Update on Expected Fourth Quarter Fiscal 2026 Results

As previously announced, NIKE, Inc. will report fourth quarter and fiscal year 2026 results on Tuesday, June 30th at 2:00 p.m. PT. These results will include a benefit from tariff refunds that was not contemplated in the company’s previously provided guidance. Excluding this one-time benefit, fourth quarter results are expected to be generally in line with previously provided guidance.

About NIKE, Inc.

NIKE, Inc., headquartered in Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at https://investors.nike.com/. Individuals can also visit https://about.nike.com/ and follow NIKE on LinkedIn, Instagram and YouTube.

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The AT&T is displayed on the facade of one of its branches in Mexico City, Mexico September 10, 2025. REUTERS/Henry Romero Purchase Licensing Rights, opens new tab

WASHINGTON, June 18 (Reuters) - A California agency said on Thursday it has asked a U.S. court and the ​Federal Communications Commission to reject AT&T's (T.N), opens new tab request to stop offering traditional copper wire ‌phone service to new customers.

The California Public Utilities Commission said AT&T was trying to get out of its obligations as a carrier of last resort and to ensure basic service.

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The state agency said ​in a court filing its rules "are explicitly technology-neutral; it does not matter ​whether the carrier uses copper wire, wireless, Voice over Internet Protocol, or ⁠any other type of technology, so long as it meets the standard for 'basic ​service.'"

California requires the U.S. wireless carrier to spend $1 billion annually to maintain a century-old ​telephone network that few use, AT&T said, adding the network now serves just 3% of households in AT&T’s California territory.

"Although AT&T asserts that every customer affected by its

proposed discontinuances will have access ​to replacement services, it does not adequately demonstrate that to be true," the CPUC ​said.

AT&T declined to comment on the CPUC filings.

AT&T asked the FCC for permission to ‌discontinue ⁠traditional phone service in parts of California where it has faster, more reliable service available. It also filed a petition with the FCC to declare that federal standards preempt California’s rules that effectively require AT&T to power, repair and sell traditional phone service, ​even after the ​FCC has authorized the ⁠service to be phased out.

California said AT&T wants to discontinue residential and business telephone service provided over legacy copper-based telephone ​network landlines across portions of the 360 wire centers in ​California effective ⁠in June 2027. AT&T says the 360 wire centers affect approximately 184,000 residential customers and 15,000 business customers.

The state said it is currently considering updates to California’s Carrier of ⁠Last ​Resort rules but added the goal of modernized networks ​cannot "override our obligation to protect California’s most vulnerable citizens, many of whom still rely on the functionality ​that AT&T’s wireline network provides."

Reporting by David Shepardson, Editing by Franklin Paul and David Gregorio

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