Track market-moving stories before they get noisy

Key Takeaways Bank of America plans to acquire MDSec, adding about 65 cybersecurity professionals to its organization.MDSec's expertise could bolster vulnerability assessment, threat detection and security engineering.The deal reinforces BAC's technology investment as cloud, AI and digital banking expand cyber risks. Bank of America (BAC - Free Report) has been seeking to sharpen its cybersecurity capabilities, as evident from its planned acquisition of U.K.-based information-security specialist MDSec Consulting Limited. The deal, expected to close in the fourth quarter of 2026 and subject to regulatory approvals, will bring roughly 65 highly skilled cybersecurity professionals into BAC’s technology and security organization.

While the financial terms of the deal have not been disclosed yet, the transaction could add modest personnel and integration costs as MDSec’s specialists become part of Bank of America’s broader technology and cybersecurity organization. This fits within the bank’s much larger ongoing technology-investment program, which included $13 billion of technology spending in 2025.

As banking becomes increasingly digital and AI adoption accelerates, financial institutions face more sophisticated cyber threats, including automated attacks and faster exploitation of vulnerabilities. MDSec’s technical expertise will likely complement BAC’s existing security infrastructure and help the bank strengthen vulnerability assessment, threat detection and security engineering capabilities.

Cybersecurity M&A activity is rising, with AI security emerging as a particularly important area of dealmaking. This suggests that specialized cybersecurity talent and expertise are becoming strategic assets rather than outsourced technology services.

For BAC, the acquisition reinforces management’s commitment to technology, digital banking and operational resilience. Over the longer term, stronger cybersecurity could help protect the bank’s franchise and support continued digital growth as cyber risks become an increasingly important cost and competitive consideration across the banking industry.

Steps Taken by BAC’s Peers in CybersecurityJPMorgan (JPM - Free Report) has been expanding its AI and cybersecurity teams at its Seattle technology center, while building infrastructure designed to run AI securely across its data centers and external providers. JPMorgan invests more than $18 billion annually in technology, including maintaining strong security and AI-ready cyber capabilities.

Likewise, Morgan Stanley (MS - Free Report) is strengthening cybersecurity as it expands AI adoption. Morgan Stanley is working with Mythos Preview to improve its cybersecurity infrastructure, highlighting the need to address security risks associated with frontier AI models. Morgan Stanley has also emphasized that generative AI is increasing both the sophistication and speed of cyber threats, while AI-enabled defenses can improve threat detection and response.

Bank of America’s Price Performance, Valuation & EstimatesIn the past six months, BAC shares have gained 21.8% compared with the industry’s 16.5% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, Bank of America trades at a 12-month trailing price-to-tangible book (P/TB) of 2.25X, below the industry average of 3.14.

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The Zacks Consensus Estimate for BAC’s 2026 and 2027 earnings implies year-over-year growth of 22.8% and 12.7%, respectively. In the past 30 days, earnings estimates for both years have been revised higher.

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

Intel stock INTC surged 4% on Wednesday after its recent $20 billion stock offering.

While Bank of America said the stock offering may dilute earnings in the near term, the analyst sees the move as growing confidence in the chipmarker's long term foundry strategy.

BofA estimates the additional shares issued through the equity raise could dilute Intel's earnings per share (EPS) by roughly 4% to 5%.

Despite the short-term impact, the brokerage maintained its Buy rating on the stock while lowering its price target to $145 from $160.

BofA described the capital raise as a "good leading indicator" of management's increasing conviction in Intel Foundry.

While acknowledging that issuing new shares would pressure near-term EPS, the firm said expanding the foundry business and attracting additional customers could ultimately offset the dilution through stronger revenue growth and operational efficiencies.

The brokerage lowered its price target primarily to reflect the expected EPS dilution from the offering and the recent rerating across AI-compute companies, which has pushed valuation multiples higher throughout the semiconductor sector.

Intel announced earlier this week that it had upsized its planned stock offering from $15 billion to $20 billion, pricing the shares at $95 each.

The company expects net proceeds of approximately $19.7 billion, while underwriters also have a 30-day option to purchase an additional $3 billion worth of shares.

Intel CEO Lip-Bu Tan said investor appetite exceeded expectations, noting in a post on X that the offering was "oversubscribed by more than five times" the company's initial $15 billion target.

The company said customers continue to signal a "strong and sustainable demand environment" driven by unprecedented investment in AI computing.

Intel identified physical AI, purpose-built silicon, advanced packaging and external wafers as key areas of growth, adding that the proceeds would support these investments while preserving a strong balance sheet and maintaining its investment-grade credit rating.

The US government, which held a 9.9% stake before the offering, reportedly did not participate in the transaction.

According to earlier reports, Commerce Secretary Howard Lutnick approved the offering plan after discussions with Intel's chief executive.

Seeking Alpha said the enlarged equity raise strengthens Intel's financial position and provides additional capital to accelerate its manufacturing expansion, describing the timing as favorable despite the share dilution.

The report noted that Intel has steadily increased its share count over the past two years to finance its turnaround, with the latest offering expected to lift the pro forma share count to roughly 5.35 billion shares.

Pro forma cash holdings are projected to increase to about $53 billion, largely offsetting the company's debt burden.

Intel continues to invest heavily in its foundry business, including expanding manufacturing capacity and repurchasing a 49% stake in its Ireland fabrication plant.

The company also reported improving financial performance in the second quarter, with revenue rising to $16.1 billion, supported by strong growth in its data center and foundry operations.

However, Seeking Alpha cautioned that the company's recovery is still in its early stages.

It noted that while profitability has improved and operating leverage has strengthened following workforce reductions, Intel's sales outlook remains modest and the stock now trades at significantly higher valuation multiples than in previous years.

The report concluded that investors have become more optimistic about Intel's turnaround, but execution remains critical.

While the capital raise reinforces confidence in the company's long-term strategy, Intel still faces the challenge of delivering sustained growth and improving margins to justify its higher valuation.

Key Takeaways Travelers benefits from disciplined underwriting, record new business and solid renewal premium change. TRV expects investment income to grow as its portfolio expands and reinvestment yields remain elevated. TRV invests more than $1.5 billion annually in technology, including AI, pricing and digital platforms. Shares of The Travelers Companies, Inc. (TRV - Free Report) have gained 39.5% in the past year, outperforming the industry, the Finance sector and the Zacks S&P 500 composite’s growth of 8.2%, 13.4% and 21.8%, respectively.

The insurer has a market capitalization of $78.34 billion. The average volume of shares traded in the last three months was 1.9 million.

Image Source: Zacks Investment Research

TRV Trading Above 50-Day and 200-Day Moving AveragesShares of Travelers closed at $375.61 on Tuesday and are trading above the 50-day and 200-day simple moving averages (SMA) of $340.08 and $304.19, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

TRV Shares are AffordableIts shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 2.37X is lower than the industry average of 17.2X, the Finance sector’s 4.5X and the Zacks S&P 500 Composite’s 7.34X

The company has a Value Score of B. This style score helps find the most attractive value stocks.

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Shares of other insurers like The Allstate Corporation (ALL - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and The Progressive Corporation (PGR - Free Report) are also trading at a multiple higher than the industry average.

TRV’s Growth Projection EncouragesThe Zacks Consensus Estimate for Travelers’ 2026 earnings per share indicates a year-over-year increase of 22.5%. The consensus estimate for 2027 revenues indicates an increase of 2.9% from the corresponding 2026 estimates. Travelers beat earnings estimates in each of the past four quarters, with an average surprise of 41.68%.

Optimist Analyst Sentiment on TRVEach of the 17 analysts covering the stock has raised estimates for 2026, and 13 of the 16 analysts have raised the same for 2027 over the past 30 days. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings has moved up 19.4% and 5.2%, respectively, in the past 30 days.

Travelers’ Favorable Return on CapitalReturn on equity (ROE) for the trailing 12 months was 25.4%, which compared favorably with the industry’s 7.7%. This reflects its efficiency in utilizing shareholders’ funds. Sustained operational excellence helped generate double-digit core ROE in nine out of the last 10 years. Travelers aims to generate mid-teens core ROE over time.

Also, return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects TRV’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 15.6%, better than the industry average of 5.8%.

Factors Favoring TravelersTravelers is benefiting from strong underwriting discipline and healthy performance in its Business Insurance segment, which remains a key long-term growth driver. Renewal premium change remained solid, while record new business and double-digit pricing in key commercial lines reflect strong execution and market share gains. Strong underwriting profitability, disciplined risk management and improving Personal Insurance margins continue to support earnings growth and margin stability for TRV.

Travelers’ investment results continue to be primarily driven by strong, reliable returns from its growing fixed-income portfolio and higher returns from its non-fixed-income portfolio.  Management continues to expect fixed income net investment income of about $840 million after tax in the third quarter and roughly $870 million in the fourth quarter. It also expects fixed income earnings to grow beyond 2026 as the portfolio expands and reinvestment yields remain above the embedded rate.

Travelers continues to invest heavily in technology to improve underwriting, claims and distribution partner experience. Management indicated that it invests more than $1.5 billion annually in technology, including an AI strategy, while pursuing ongoing upgrades to pricing models and field tools. New product enhancements and digital platforms such as TRAVIS and TCAP are helping drive market share gains and stronger distribution relationships.

Risks for TRVExposure to catastrophe events, primarily from severe wind and hail storms and winter storms across multiple states, remains a recurring source of underwriting variability for property and casualty insurers. Management continues to describe weather-related severity as an ongoing feature of the loss environment, which can drive quarter-over-quarter earnings swings and complicate near-term margin expectations.

Rising reinsurance costs can reduce earnings and constrain underwriting flexibility, particularly after periods of elevated global catastrophe activity.

Higher repair costs and other inflation-linked inputs can lift claims severity in both auto and homeowners lines and challenge pricing and retention.

ConclusionStrong underwriting, healthy premium growth, rising investment income and sustained pricing strength bode well for future earnings growth. However, catastrophe losses, rising reinsurance costs and inflation-driven claims severity remain the key concerns.

TRV has a track record of 22 consecutive years of dividend increases, with a compound annual growth rate of 8% over that period. Its current dividend yield of nearly 2% is much better than the industry average of 0.3%, making it an attractive pick for yield-seeking investors.

Coupled with an impressive dividend history, solid growth projections, favorable return on capital and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways TSMC and Sony will establish a Kumamoto JV focused on smartphone image sensors.TSMC will provide advanced process technology, while Sony leads sensor development and design.TSMC plans to invest 282 billion yen, while Sony will contribute nearly 465 billion yen. Taiwan Semiconductor Manufacturing Company (TSM - Free Report) , or TSMC, and Sony Semiconductor Solutions have executed a legally binding definitive agreement to establish Advanced Vision Semiconductor Manufacturing Corporation, a joint venture (JV) in Kumamoto, Japan. The JV will focus on developing and manufacturing smartphone image sensors, with volume production set to start in 2029.

The latest move follows the non-binding memorandum of understanding (MOU) the companies signed in May to pursue a strategic partnership for next-generation image sensor development and manufacturing. The collaboration also aims to explore emerging opportunities in physical AI, including applications in automotive and robotics.

The deal, however, is still subject to required regulatory approvals and other customary closing conditions. Upon closing, Sony will serve as the JV’s sole controlling shareholder, while the venture is planned to operate as a consolidated subsidiary of Sony Group Corporation. Sony is also expected to appoint its representative director.

Under the strategic partnership, TSMC will provide its advanced process technology and manufacturing expertise to drive development and manufacturing activities required for volume production, while Sony will lead the development of core image sensor technologies, along with product planning and design. The collaboration is expected to help accelerate the commercialization of image sensor products based on customer needs while advancing technological innovation and expanding manufacturing capacity.

As part of the agreement, TSMC plans to invest approximately 282 billion yen in cash into the JV, while Sony plans to contribute nearly 465 billion yen through a combination of cash and asset transfers via a company split. The capital contributions are expected to be made in phases based on market demand and other relevant business conditions. Additional investments required to achieve the JV’s planned production capacity are also under consideration, with support from the Japanese government.

TSM’s Peer UpdatesAMD (AMD - Free Report) announced a definitive agreement to acquire Taalas, a leader in specialized AI inference silicon. Founded in 2023 and headquartered in Toronto, Canada, Taalas’ technology optimizes inference dataflows, significantly reducing compute and memory bottlenecks associated with general-purpose architectures and enabling highly optimized AI inference capabilities. The acquisition comes as AI inference emerges as one of the fastest-growing areas of the AI market and workloads become more specialized, helping bolster AMD’s long-term AI roadmap with specialized inference technology and engineering expertise.

Broadcom Inc. (AVGO - Free Report) announced new updates to VMware vDefend and VMware Avi Load Balancer to deliver rapidly deployed, intelligently operated and high-performance multi-layer cyber defense. These enhancements expand private cloud security capabilities, optimize infrastructure costs and use AI-powered automation to simplify operations for overextended IT teams. With vDefend and Avi Load Balancer, enterprises can build a more cyber-resilient private cloud with VMware Cloud Foundation (VCF) while delivering scale-out workload security, operational efficiency and rapid rollout.

The Zacks Rundown for TSM StockSo far this year, TSMC shares have rallied 38.9% compared with the 37.7% rise of the industry.

Image Source: Zacks Investment Research

TSM currently trades at a forward, 12-month Price/Sales (P/S) of 11.14X compared with its historical median of 11.02X and the industry average of 11.04X.

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Take a look at how TSMC’s earnings projections have been shaping up.

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Taiwan Semiconductor sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways AGNC offers a 13.2% yield and has a record of paying out monthly dividends to investors.AGNC had $7.5B in liquidity and 7.4X leverage as of June 30, 2026.Lower mortgage rates could ease funding pressures, widen spreads and support AGNC's dividend. One of the most closely watched aspects of AGNC Investment Corp.’s (AGNC - Free Report) financial profile is its dividend policy. This publicly traded mortgage real estate investment trust (mREIT) offers attractive long-term returns and a high dividend yield that appeals to income-focused investors.

Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income as dividends.  AGNC has a record of paying out monthly dividends, currently yielding a staggering 13.2%. This is impressive and attracts investors as it represents a steady income stream.

Dividend Yield

Image Source: Zacks Investment Research

Dividends aside, AGNC has a share repurchase plan in place.  In October 2024, the company’s board of directors terminated the existing stock repurchase plan and replaced it with a new plan authorizing it to repurchase up to $1 billion of common stock through Dec. 31, 2026. As of March 31, 2026, the full authorization was available for repurchase. It plans to buy back shares only when the repurchase price is lower than the then-current estimate of tangible net book value per common share. The buyback program will enable it to respond to the volatility in its stock and boost shareholders’ wealth.

The company enjoys a decent financial position. As of June 30, 2026, AGNC Investment’s liquidity, including unencumbered cash and Agency MBS, was $7.5 billion. The company’s leverage rose modestly to 7.4X at the end of the second quarter 2026.

With relatively lower mortgage rates, operational and funding pressures may ease, expanding net interest spreads. This could boost AGNC Investment's profitability and enhance its ability to maintain, or even increase, its dividend in the near term.

How AGNC Competes With NLY & ABR in Terms of DividendsAGNC Investment’s peers, such as Annaly Capital Management, Inc. (NLY - Free Report) and Arbor Realty Trust, Inc. (ABR - Free Report) , have also been focusing on maintaining shareholder returns through consistent dividend payouts.

Annaly’s dividend yield is currently a staggering 13.1%. In the past five years, Annaly has increased its dividends twice. At June 30, 2026, it had $9.6 billion in assets available for financing, including $5.5 billion in cash and unencumbered Agency MBS. A solid liquidity position supports Annaly's capital distribution in the future.

Alternatively, Arbor Realty has a dividend yield of 12.7%. In the past five years, ABR has raised its dividend eight times. As of June 30, 2026, Arbor Realty had cash and cash equivalents of $583 million against long-term debt of $5.2 billion. Such a narrow liquidity cushion raises concerns about the sustainability of its capital distribution in the long term.

AGNC Investment’s Price Performance & Zacks RankOver the past year, AGNC shares have gained 12.8% against the industry’s decline of 2.8%.

Price Performance

Image Source: Zacks Investment Research

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

Wall Street expects a year-over-year increase in earnings on higher revenues when TJX (TJX - Free Report) reports results for the quarter ended July 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 19. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis parent of T.J. Maxx, Marshalls and other stores is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of +7.3%.

Revenues are expected to be $15.14 billion, up 5.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.91% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for TJX?For TJX, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.31%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that TJX will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that TJX would post earnings of $1.01 per share when it actually produced earnings of $1.19, delivering a surprise of +17.82%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TJX appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Lumentum's Q4 revenues reached $1.01B, topping the $988.60M consensus estimate.Lumentum expects Q1 FY27 to mark its first triple-digit OCS revenue quarter, above $100M.LITE sees tight laser supply as it expands capacity and prepares for NPO and CPO deployments in 2027-28. Lumentum Holdings Inc.’s (LITE - Free Report) president and CEO Michael Hurlston used the fourth quarter of fiscal 2026 earnings call to stress broadening AI-driven optical demand across transceivers, lasers and optical circuit switches. He said newer growth drivers are only beginning to contribute.

The call centered on a faster revenue path and improving margins. Scale-out and scale-up connectivity demand is also rising while supply remains tight in several laser categories.

LITE Brings $1.25 Billion Target ForwardThe CEO said Lumentum expects to reach its $1.25 billion quarterly revenue target early. He put the timing more than one quarter ahead of the schedule outlined at its last OFC update.

CFO Wajid Ali guided revenues for the first quarter of fiscal 2027 to $1.225 billion-$1.275 billion. He set non-GAAP operating margin at 39.5%-40.5% and earnings at $4.05-$4.35 per share.

Lumentum’s fourth-quarter fiscal 2026 revenues of $1.01 billion topped the Zacks Consensus Estimate of $988.60 million. The company reported quarterly earnings of $3.23 per share, surpassing the Zacks Consensus Estimate of $2.99.

Lumentum Sees Laser Demand Staying TightPump laser shipments rose more than 80% year over year and remain effectively sold out. Lumentum still expects a fourfold shipment increase over the next several quarters.

CEO Michael Hurlston said EML supply remains behind customer demand. The company expects more than 50% EML unit growth in the December 2026 quarter from a year earlier while allocating more capacity to CW lasers.

Global Business Units President Wupen Yuen said supply constraints are influencing customer choices between EML and CW solutions. He said technical considerations also matter as 1.6T volumes expand.

LITE Accelerates 1.6T and OCS RampsThe CEO said most cloud transceiver shipments remained at 800G in the fourth quarter of fiscal 2026, while 1.6T shipments began as planned. He expects 1.6T uptake to intensify in first-quarter fiscal 2027 and continue through calendar 2027.

Hurlston said the first quarter of fiscal 2027 should mark Lumentum's first triple-digit OCS revenue quarter. He expects revenues to be meaningfully above $100 million.

In Q&A, a Citi analyst asked about the prior $400 million OCS outlook for the second half of calendar 2026. The CEO said Lumentum is tracking to that target, not ahead of it, after earlier supply-chain constraints.

Lumentum Expands NPO and CPO OpportunityCEO Michael Hurlston said the lead CPO customer's production plans remain on track and its demand signal has increased. Lumentum expects high-volume scale-up laser shipments in the second half of calendar 2027 for 2028 deployments.

Lumentum also received its first ELS module order for delivery in the second half of calendar 2027. Hurlston said the module has a meaningfully higher selling price than the underlying lasers but lower margins than laser chips.

In Q&A, a JPMorgan analyst pressed on NPO timing. The CEO said leading NPO opportunities are in a similar timeframe, with some about a quarter earlier and initially favoring high-power laser architectures.

LITE Sees More Margin and Capacity LeverageCFO Wajid Ali said non-GAAP gross margin reached 50.4% and operating margin reached 36.6% in the fourth quarter of fiscal 2026. He credited mix, manufacturing utilization and selective pricing.

A Mizuho analyst asked how operating leverage could evolve in fiscal 2027. Ali said the prior 38%-42% operating-margin framework at $2 billion of quarterly revenues could move up 100 to 200 basis points as gross margin improves.

A Wolfe Research analyst asked about indium phosphide substrate supply. CEO Michael Hurlston said ultra-high-power laser demand has accelerated, prompting added supply from AXTI and raising the prospect of substrate support if demand keeps rising.

Lumentum Keeps Focus on ExecutionAcross prepared remarks and Q&A, the CEO emphasized that demand is expanding faster than several capacity ramps. He highlighted high-power lasers while saying OCS execution has returned to plan.

Management's priorities remain capacity expansion, 1.6T growth and OCS scaling. The company is preparing for NPO and CPO deployments expected to broaden optical content in 2027 and 2028.

LITE's Zacks Signals Favor Growth and MomentumLITE currently carries a Zacks Rank #2 (Buy), with a Growth Score of A, Momentum Score of B and VGM Score of B. In the Zacks Style Scores framework, A and B grades represent stronger characteristics, while the Value Score of D is weaker. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Rank #2 and favorable Growth, Momentum and VGM scores support a stronger near-term profile within the Zacks methodology. The Zacks Rank can change as analyst earnings estimates are revised after the just-reported results.

Key Takeaways Cheniere's Q2 2026 earnings rose to $1.10 per unit, beating estimates, as LNG volumes increased 12.5% Y/Y.Cheniere's adjusted EBITDA increased 35.4% to $983M as higher LNG margins and lower costs boosted results.Cheniere reaffirmed its 2026 distribution guidance in the range of $3.10-$3.40 per common unit. Cheniere Energy Partners, L.P. (CQP - Free Report) reported second-quarter 2026 earnings per unit of $1.10, beating the Zacks Consensus Estimate of 95 cents by 15.79%. The bottom line increased from 91 cents reported a year earlier.

Following the earnings announcement on Aug. 6, 2026, CQP units are up 5% to $66.58 per unit from $63.33 per unit.

Revenues of $2.6 billion increased 5.2% from $2.5 billion a year ago. The top line missed the consensus mark of $2.7 billion by 3.70%.

The strong quarterly earnings benefited from higher total margins per million British thermal units (MMBtu) of liquefied natural gas (LNG) delivered, primarily due to increased volumes recognized in income.

CQP exported 108 LNG cargoes, up from 98 a year earlier, while exported volumes increased 12.5% to 396 trillion British thermal units (TBtu).

CQP's LNG Volumes Support Revenue GrowthLNG revenues increased 2.4% to $1.90 billion from $1.86 billion. LNG revenues from affiliates rose 14.9% to $631 million from $549 million. Regasification revenues were unchanged at $34 million, while other revenues edged up to $16 million from $15 million.

The partnership loaded and recognized 396 TBtu of LNG during the quarter compared with 351 TBtu in the prior-year period, representing growth of 12.8%. The higher throughput allowed CQP to handle more volume and capture better LNG profit margins.

Cheniere's Profit Gets Derivative LiftNet income increased to $1.16 billion from $553 million in the year-ago quarter. The increase primarily reflected higher LNG margins and approximately $367 million of favorable variances from changes in the fair value of derivative instruments, including long-term Integrated Production Marketing agreements.

Reported basic and net income per common unit rose to $2.14 from 91 cents. Changes in commodity derivative values can create sizable non-cash swings in reported earnings, making operating measures useful for assessing the underlying performance of the LNG business.

CQP's Adjusted EBITDA Rises as Costs EaseAdjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 35.4% to $983 million from $726 million. Management attributed the increase primarily to higher total margins per MMBtu of LNG delivered, driven by greater volumes recognized in income.

Total operating costs and expenses declined to $1.24 billion from $1.74 billion. Cost of sales fell to $765 million from $1.20 billion, while operating and maintenance expense decreased to $230 million from $289 million. Income from operations consequently increased to $1.34 billion from $715 million.

Cheniere Strengthens LiquidityCQP ended June with $443 million in cash and cash equivalents and $23 million in restricted cash. Available commitments under its credit facilities totaled $1.87 billion, giving the partnership total available liquidity of $2.34 billion.

CQP’s Cash Flow & DistributionFor the six months ended June 30, 2026, net cash provided by operating activities increased to $1.61 billion from $1.22 billion a year earlier. Investing activities used $299 million, including $297 million for property, plant and equipment, while financing activities used $1.05 billion.

The partnership declared a second-quarter cash distribution of 82 cents per common unit, comprising a 77.5-cent base amount and a 4.5-cent variable component.

Cheniere Reconfirms Distribution GuidanceCheniere reconfirmed its 2026 distribution guidance in the range of $3.10-$3.40 per common unit, including a base distribution of $3.10.

CQP is advancing the Sabine Pass LNG Expansion Project. In May, Sabine Pass Liquefaction Stage V entered into an engineering, procurement and construction contract with Bechtel for the first phase and authorized early engineering and procurement. The initial phase includes Train 7 and a boil-off gas re-liquefaction unit, with an expected production capacity of more than 6 million tons per annum, including estimated debottlenecking opportunities.

CQP’s Zacks Rank & Key PicksCheniere currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are PBF Energy Inc. (PBF - Free Report) , HF Sinclair Corporation (DINO - Free Report) and Cactus, Inc. (WHD - Free Report) . PBF and DINO sport a Zacks Rank #1 (Strong Buy) each, while WHD carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05 per share.

As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.

HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39 per share.

As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.

Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents per share.

As of June 30, 2026, WHD had cash and cash equivalents of $365 million.

Key Takeaways IQVIA shares gained 41.5% in three months, outpacing its industry and the S&P 500 Composite.R&DS net new bookings rose 19% to $3.2B, while contracted backlog reached $34.2B as of June 30, 2026.IQVIA raised its 2026 revenue and EPS guidance, while 1H share repurchases totaled $950M. IQVIA Holdings Inc. (IQV - Free Report) stock has rallied over the past three months. The company’s shares have jumped 41.5%, outperforming the industry’s 17.2% growth and the Zacks S&P 500 Composite's 3.4% uptick.

3-Month Share Price Performance                                                                 Image Source: Zacks Investment Research

Let us delve into the factors that have contributed to the company’s outperformance.

Record Net Bookings & Solid BacklogsIQVIA’s net new bookings were $3.2 billion for research and development solutions (R&DS) in the second quarter of 2026. It marked 19% year-over-year growth, resulting in a book-to-bill ratio of 1.22X. As the metric surpasses 1, it implies that new order intake exceeds current revenue recognition.

RD&S’s contracted backlog was $34.2 billion as of June 30, 2026. In the second quarter of 2026, the company anticipated $9.2 billion in backlog to convert to top line in the next 12 months, suggesting a 7.5% year-over-year increase.

A high backlog with substantial probability of future revenue provides analysts and investors long-term visibility into top-line growth, lowering earnings uncertainty. Highly predictable and recurring revenues raise investor confidence.

Raised 2026 Outlook Lifts Investor SentimentIn the second quarter of 2026, management uplifted revenue expectations to $17.28-$17.48 billion from the preceding quarter’s view of $17.15-$17.35 billion. The bottom-line prospect was raised to $12.8-$13 per share from $12.65-$12.95 provided during the first quarter of 2026.

A hike in top- and bottom-line guidance raises investors' confidence and prompts analysts to revise their financial models upward, resulting in higher price targets. Currently, based on short-term price targets provided by 19 analysts, the average price target for the stock is $265.26. It offers a 9.6% upside from the last closing price of $241.99.

                                                                 Image Source: Zacks Investment Research

Shareholder-Friendly ActionsIQVIA has demonstrated a strong commitment to returning value to its shareholders through an active share repurchase program. In 2025, IQV repurchased shares worth $1.24 billion. In the first half of 2026, the company’s share repurchases amounted to $950 million. This substantial buyback not only reduces the total outstanding share count, thereby increasing earnings per share, but also signals management's belief in the intrinsic value of the stock. 

Zacks Rank & Stocks to ConsiderIQVIA currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Medical sector are Anika Therapeutics (ANIK - Free Report) and BrightSpring Health Services, Inc. (BTSG - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANIK has a long-term earnings growth expectation of 10%. Anika Therapeutics delivered a trailing four-quarter earnings surprise of 950%, on average.

BTSG has a long-term earnings growth expectation of 46%. BrightSpring delivered a trailing four-quarter earnings surprise of 16.1%, on average.

Super Micro Computer, Inc‘s (NASDAQ:SMCI) AI problem is no longer finding customers. With more than $60 billion in new orders, a record backlog, and fiscal 2027 revenue guidance of $65 billion to $72 billion, demand appears stronger than ever.

But buried in the company’s earnings call was an unexpected message: if business accelerates beyond those already ambitious targets, the next hurdle may be financing that growth—not generating it.

SMCI’s Working Capital Challenge Comes Into FocusThe clearest hint came during the Q&A when CEO Charles Liang was asked whether the company’s recent $5.6 billion fundraising marked the end of its capital needs. His answer suggested that it depends entirely on how fast the business grows.

“Once we keep between $65 billion and $72 billion, I guess our cash flow now is pretty enough. But if there is a chance to grow much higher revenue, then we may need more cash flow—for example, $80 billion or beyond $80 billion,” Liang said.

That’s a notable shift in the conversation around Super Micro. For much of the AI boom, investors debated whether demand would hold up or whether chip shortages would slow growth. Liang’s comments suggest the company is thinking about a different constraint altogether.

The reason is simple. Super Micro must buy expensive processors, memory and networking equipment, build AI servers and ship them before collecting payment from customers. As orders grow, more cash gets tied up in inventory and receivables, increasing the amount of capital needed to keep the business expanding.

That helps explain why CFO David Wiegand said the proceeds from the recent equity offerings would be used “primarily to support increased working capital needed to support our new orders.”

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Wall Street Sees the Same Risk for SMCILiang’s comments didn’t go unnoticed.

JPMorgan raised its price target after the earnings report, citing robust order momentum and stronger-than-expected guidance. However, the bank also flagged working capital as an issue investors should keep watching.

The analysts noted that if Super Micro ultimately delivers revenue well above its current guidance, the company could require additional equity or debt financing to support that expansion. While record orders remain a positive, raising more capital could pressure future earnings through financing costs or shareholder dilution.

That doesn’t diminish the strength of Super Micro’s AI business. If anything, it underscores how quickly the company is scaling. But it does shift the investment debate.

For investors, the next question isn’t whether Super Micro can win more AI orders—the backlog suggests it already has. Instead, the focus may increasingly turn to whether the company can convert that demand into profitable growth without repeatedly tapping capital markets.

As the AI infrastructure race enters its next phase, the balance sheet could become almost as important as the order book.

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Memory and storage stocks surged on Wednesday as fresh results and upbeat forecasts from CoreWeave and Super Micro Computer reassured investors that spending on artificial intelligence infrastructure remains strong.

Micron Technology MU rose more than 6% in early trading, while South Korea's SK Hynix gained about 8%.

SanDisk climbed more than 7%, and Western Digital advanced over 6%.

The gains came as investors digested stronger-than-expected signals from companies at the heart of the AI infrastructure buildout.

CoreWeave and Super Micro Computer both jumped sharply, with their shares rising about 18% and 13%, respectively.

The strong results provided another boost to broader markets that were also benefiting from a softer-than-expected US inflation reading.

Coreweave, Super Micro establish that AI infra demand remains strongCoreWeave raised its forecasts for annual revenue, adjusted operating profit and capital expenditure, pointing to sustained demand for its Nvidia-powered AI infrastructure.

The company operates data centres packed with high-end graphics processing units that are used to power generative AI workloads.

Those systems require large quantities of high-bandwidth memory, or HBM, as well as high-capacity DRAM, making memory suppliers such as Micron and SK Hynix important beneficiaries of the AI spending cycle.

Super Micro also offered an upbeat outlook, forecasting 2027 revenue above Wall Street expectations.

The projection underscored continued investment by data-centre operators seeking to expand their capacity to handle increasingly demanding AI workloads.

The company's fourth-quarter gross margin came in at 17.5%, above its preliminary estimate of 15%-17% and well ahead of its initial forecast of 8.2%-8.4%.

Recent comments from Micron have added to optimism surrounding the memory market.

At the KeyBanc Capital Markets Technology Leadership Forum 2026 on Monday, Micron executive vice president and chief business officer Sumit Sadana said AI was reshaping memory demand faster than the industry could add supply.

Sadana described a market characterised by strong pricing, robust customer demand and continuing capacity constraints.

He said Micron had seen stronger demand signals since its latest earnings report and expected 2027 to be even tighter than 2026.

The comments suggest that memory manufacturers could retain pricing power as AI infrastructure investment expands, despite efforts by producers to increase capacity.

Another potential catalyst for memory suppliers is Nvidia's upcoming Rubin Ultra platform.

UBS analyst Timothy Arcuri said Monday that Nvidia appeared to be considering lower-memory versions of the chip, a move that could initially appear negative for HBM suppliers.

The Information reported that Nvidia was testing configurations with lower memory capacity amid concerns over HBM availability.

However, Arcuri argued that using less memory per chip could allow Nvidia to manufacture more chips.

As a result, total HBM consumption could ultimately be higher in 2027 than previously expected.

Arcuri also said memory suppliers were increasing the premium charged for HBM.

He now expects HBM average selling prices to rise about 79% year over year, compared with his previous estimate of 67%.

The improving outlook extends beyond HBM.

Arcuri expects NAND flash contract pricing, which is relevant to suppliers such as SanDisk, to benefit from stronger-than-expected demand for server and storage solid-state drives.

That demand is helping offset weakness in the personal-computer market.

While the analyst expects sequential growth in NAND average selling prices to be less powerful than previously forecast, he said the overall demand backdrop remains constructive.

He raised his forecast for NAND bit demand growth to 23% this year and 26% in 2027.

Together, the developments suggest that the AI infrastructure boom is continuing to support a broad section of the memory industry, with tight supply and strong data-centre demand potentially keeping the market favourable for suppliers well into next year.

Key Takeaways PNC raised its 2026 NII growth outlook to 15-15.5% on strong Q2 momentum.PNC lifted its 2026 average loan growth forecast to 12.5%, led by commercial lending.A better deposit mix and higher-yielding securities are supporting PNC's spread income outlook. The PNC Financial Services Group, Inc.’s (PNC - Free Report) net interest income (NII) outlook for 2026 has strengthened, supported by robust loan growth, an improving deposit mix and continued repricing of fixed-rate assets. Following the solid second-quarter results, management raised its full-year NII growth guidance to 15-15.5% from the earlier mentioned 14.5%, based on the 2025 NII baseline of $14.41 billion.

PNC’s second-quarter performance highlights the momentum behind the improved outlook. NII reached $4.11 billion, increasing 16% year over year. The net interest margin (NIM) also moved up to 2.96% from 2.95% in the preceding quarter and 2.80% a year earlier.

A key driver is strong loan growth, particularly in commercial and industrial lending. Average loans rose 4% sequentially and 13% year over year to $363.2 billion in the second quarter. Management consequently raised its 2026 average loan growth forecast to 12.5% from 11%.

Deposit trends are another tailwind. While total average deposits were essentially stable sequentially, non-interest-bearing deposits increased 4%, while the rate paid on interest-bearing deposits declined five basis points. This favorable shift in funding mix is helping offset pressure from lower loan yields and supporting spread income. PNC should also benefit from fixed-rate asset repricing. During the second quarter, the company sold roughly $4 billion of securities and reinvested the proceeds into securities yielding about 120 basis points more, enhancing the prospective earnings contribution from the investment portfolio.

The FirstBank acquisition has expanded PNC’s loan and deposit base. The transaction added roughly $16 billion in loans and $23 billion in deposits at closing, providing additional scale and opportunities to deepen customer relationships.

Near-term momentum remains encouraging, with management expecting third-quarter NII to increase 3-3.5% sequentially. Overall, robust commercial lending, a healthier funding mix and asset repricing appear well-positioned to keep PNC’s NII trajectory positive through the remainder of 2026, though elevated expenses and funding needs remain factors to watch.

PNC’s Peers 2026 ExpectationsWells Fargo (WFC - Free Report) and Citigroup (C - Free Report) also expect their NII to grow in 2026.

Wells Fargo expects NII to be $50 billion. NII excluding Markets is projected to be $48 billion, driven by balance-sheet growth, a favorable loan and deposit mix and continued fixed-asset repricing, partially offset by the impacts of expected rate cuts. 

Citigroup expects NII (excluding Markets) to increase 5-6% on a year-over-year basis in 2026, supported by stabilizing deposit costs and disciplined balance-sheet management. The outlook reflects the bank’s efforts to benefit from a more favorable rate and funding environment while continuing to reshape its business toward higher-quality growth.

PNC Financial Price Performance & Zacks RankShares of PNC have surged 31.4% over the past year compared with the industry’s growth of 26.3%.

Price Performance

Image Source: Zacks Investment Research

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

Key Takeaways Barrick posted adjusted EPS of 82 cents, up 74% year over year and above estimates. Gold production was flat, but realized gold prices rose 34% to $4,417 per ounce. Barrick cut 2026 capital spending guidance to $3.8-$4.2 billion from $4-$4.45 billion. Barrick Mining Corporation (B - Free Report) recorded profits (on a reported basis) of $1,217 million or 73 cents per share for second-quarter 2026, up 50% from $811 million or 47 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 82 cents. The figure beat the Zacks Consensus Estimate of 81 cents and increased around 74% year over year.

Barrick recorded total sales of $5,292 million, up 44% year over year. The top line surpassed the Zacks Consensus Estimate of $4,487.7 million.

Barrick Mining Corporation Price, Consensus and EPS SurpriseB’s Operational HighlightsTotal gold production was 796,000 ounces in the reported quarter, essentially flat year over year compared with 797,000 ounces. The metric beat the consensus estimate of 764,000 ounces. The average realized price of gold was $4,417 per ounce in the quarter, up around 34%.

The cost of sales increased around 20% year over year to $1,993 per ounce. All-in-sustaining costs (AISC) rose around 11% to $1,866 per ounce in the quarter. 

B’s Financial PositionAt the end of the quarter, Barrick had cash and cash equivalents of $5,927 million, up 23% from the prior-year quarter. The company’s total debt was $4,682 million at the end of the quarter, down around 1% year over year.

The operating cash flow was $1.7 billion for the quarter, up 28% year over year, whereas the free cash flow was $515 million, up 30%.

B’s GuidanceFor 2026, Barrick continues to anticipate attributable gold production in the range of 2.9-3.25 million ounces. The company reduced total attributable capital expenditure guidance to $3.8-$4.2 billion from $4-$4.45 billion previously. 

AISC is projected at $1,760-$1,950 per ounce for 2026. Cash costs per ounce are forecast to be $1,330-$1,470. The company also expects cost of sales of $1,870-$2,070 per ounce.

Barrick expects copper production of 190,000-220,000 tons at AISC of $3.45-$3.75 per pound, C1 cash costs of $2.20-$2.45 per pound and cost of sales of $3.05-$3.35 per pound for 2026.

B’s Price PerformanceBarrick’s shares have gained 68.2% in the past year compared with the 51.1% rise of the industry.

Image Source: Zacks Investment Research

B’s Zacks Rank & Other Mining ReleasesB currently carries a Zacks Rank #4 (Sell).

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

Newmont Corporation (NEM - Free Report) reported second-quarter adjusted earnings of $2.10 per share, up 46.9% from $1.43 reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $2.05. Newmont remains on track to achieve its previously announced 2026 guidance. NEM expects attributable gold production of approximately 5.26 million ounces.  

Kinross Gold Corporation (KGC - Free Report) reported adjusted earnings of 71 cents per share for the second quarter, up 61.4% from 44 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 66 cents by 7.6%. Kinross remains on track to meet its 2026 annual guidance. KGC expects attributable production of 2 million gold-equivalent ounces (+/- 5%). 

Agnico Eagle Mines Limited (AEM - Free Report) reported second-quarter adjusted earnings of $3.05 per share, up 57.2% from $1.94 a year ago. The figure surpassed the Zacks Consensus Estimate of $2.89. For full-year 2026, AEM expects gold production near the lower end of its guidance of 3.3 million to 3.5 million ounces, reflecting the preliminary redesign of the Barnat open pit at Canadian Malartic.

Marvell Technology stock has slumped since June 18 as investors dumped popular semiconductor companies. After peaking at $329, it has now plunged by 35% to the current $217, with its valuation falling from $277 billion to the current $185 billion. This price action may continue in the near term as investors focus on the upcoming earnings on August 27.

MRVL stock has been under pressure in the past few months, mirroring the performance of other top companies in the semiconductor industry. 

For example, the iShares Semiconductor Sector Index Fund (SOXX) has dropped by over 18% from the year-to-date high. The VanEck Semiconductor ETF (SMH) has dropped from a high of $671 to $572. 

The retreat happened as investors booked profits after the industry staged a strong rally amid the ongoing AI boom. This retreat has faded after most companies in the tech industry, including its customers, released strong results and committed to more spending. 

The next main catalyst for the MRVL stock will be its earnings, which are expected to come in on August 27. Its most recent results revealed that its revenue jumped by 28% in the first quarter to $2.4 billion, with its data center segment contributing $1.8 billion. Its communications segment brought in $585 million. 

The management believes that its AI business will drive growth through FY’28, with demand for its solutions continuing seeing strong demand. As a result, the company’s guidance for the upcoming earnings is expected to grow by 35% to $2.7 billion. 

For the year, it expects that its data center revenue will soar by 50%, with its FY’28 revenue being $16.5 billion. This growth explains why Nvidia made a big investment in the company, with Jensen Huang arguing that it will be the next $1 trillion company. 

In addition to Huang, other top analysts are highly bullish on the company. KeyCorp’s John Vinh boosted the target from $385 to $400, while RBC’s Srini Pajjuri hiked his target to $360. The consensus estimate among analysts is that it will hit $245, up by 15% from the current level.

The main concern among analysts is that the company has become highly overvalued, which may affect its upside. It trades at a forward price-to-earnings ratio of 52.41, much higher than the sector median of 23. It is also higher than that of other top companies like Nvidia, Micron, and Western Digital.

MRVL stock chart | Source: TradingView

The daily chart shows that the MRVL stock has rebounded after bottoming at $162.93, its lowest level on June 29. Its lowest level coincided with the 200-day Exponential Moving Average (EMA) and the 61.8% Fibonacci Retracement level.

There are signs that the stock has formed an inverted head-and-shoulders pattern, a common bullish reversal sign. Therefore, the stock will likely continue rising as bulls attempt to fill the fair value gap that formed on June 1. A drop below the support level of $162 will invalidate the bullish view.

Key Takeaways FNB is broadening Family Wealth with investment, estate, tax, succession and fiduciary services.First-half 2026 non-interest income rose 5.1% to $188 million as total revenue reached a record $913 million.FNB maintained its 2026 non-interest income outlook of $370-$390 million despite first-half growth. F.N.B. Corporation (FNB - Free Report) is accelerating its push into higher-margin wealth management businesses as it seeks to expand recurring fee income and deepen relationships with ultra-high-net-worth clients.

The Pittsburgh-based bank has broadened its ‘F.N.B. Private Family Wealth’ platform, introducing enhanced advisory capabilities tailored to affluent families and business owners. The expanded offering integrates traditional and alternative investment management with estate planning, tax optimization, wealth transfer strategies, succession planning and fiduciary services. It also connects clients to FNB’s investment banking, private banking, mortgage and insurance solutions through a unified advisory model designed to increase wallet share.

To support the initiative, F.N.B. Corp. has added senior leadership talent, including Benjamin J. Ciocco as Director of Family Wealth and Fiduciary Services and Frank J. Aloi as Chief Market Strategist for Family Wealth. The pair bring decades of experience across investment strategy, private markets and institutional advisory services, strengthening the bank’s ability to deliver bespoke, “family office-style” solutions.

The expansion aligns with FNB’s broader strategy of diversifying revenue beyond net interest income and scaling fee-generating businesses. While the bank already operates across commercial banking, asset management and insurance, providing a strong cross-selling foundation, recent performance underscores the opportunity. In the first half of 2026, FNB reported non-interest income of $188 million, up 5.1% year over year, alongside record total revenue of $913 million, reflecting steady momentum in its diversified business lines.

Revenue Trend

Image Source: Zacks Investment Research

Despite a solid first-half performance, F.N.B. Corp. reaffirmed its 2026 non-interest income outlook of $370-$390 million, with third-quarter fee income projected at $93-$98 million. Given second-quarter non-interest income of $97 million, the guidance suggests management expects fee revenues will remain relatively stable in the second half.

By expanding its Family Wealth platform, FNB is strengthening its ability to generate recurring advisory revenues, deepen client relationships and capture a larger share of wealth across generations. This could support sustained fee income growth over the long term.

F.N.B. Corp’s Price Performance and Zacks RankOver the past year, shares of FNB have gained 20.5%, outperforming the industry's 13.6% growth.

1 Year Price Performance

Image Source: Zacks Investment Research

At present, F.N.B. Corp. carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks Taking Steps to Bolster Fee IncomeLast week, KeyCorp (KEY - Free Report) completed the acquisition of Clearwater Corporate Finance LLP ("Clearwater UK"), a U.K.-based middle-market investment banking advisory firm. The transaction marks another step in expanding the company's advisory business and establishes its presence in the Western European market.

Building on a collaboration between KeyBanc Capital Markets and Clearwater UK that began in 2020, the acquisition strengthens KeyCorp's middle-market M&A capabilities and enhances opportunities to serve U.S. and European corporate and private equity clients. The acquisition complements KeyCorp's strategy of expanding its investment banking franchise and growing fee-based businesses.

In July, Citigroup (C - Free Report) became a clearing member of London Precious Metals Clearing Limited (LPMCL). The designation enables the bank to provide Loco London settlement services for gold, silver, platinum and palladium, expanding its role in one of the world’s largest over-the-counter bullion markets.

Direct participation in the clearing process is expected to improve execution efficiency for institutional clients while reinforcing the bank’s market infrastructure capabilities and deepening client relationships. While the move is not expected to have a meaningful impact on near-term earnings, it supports Citigroup’s broader strategy of expanding capital-light, fee-generating businesses.

Key Takeaways Omnicell shares fell 20.1% in four weeks as booking, margin and refresh-cycle risks weighed on the outlook. OMCL expects $6 million in added memory-chip costs, pressuring product and consolidated gross margins.Omnicell cut recurring-revenue guidance as some consumables opportunities are taking longer to develop. Omnicell, Inc. (OMCL - Free Report) shares have fallen 20.1% in the past four weeks, sharpening the debate over whether the pullback has improved the risk-reward setup or reflects pressures that may persist.

The central tension is clear. Omnicell has raised its 2026 profit outlook, but bookings timing, recurring-revenue growth, component costs and the pace of its product refresh remain less predictable.

OMCL’s Earnings Strength Comes With a CaveatSecond-quarter 2026 adjusted earnings were 94 cents per share, up 108.9% year over year and 95.8% above the Zacks Consensus Estimate. Revenues increased 7.4% to $312.2 million and topped the consensus mark by 0.8%.

Per the Zacks Consensus Estimate, OMCL’s 2026 earnings and revenue is pegged at $2.09 and $1.24 billion, respectively. 

Image Source: Zacks Investment Research

The quarter also benefited from a one-time $15 million tariff refund. Excluding that benefit, non-GAAP EBITDA would have been $52 million, still above the midpoint of prior guidance. Omnicell raised full-year non-GAAP EPS guidance to $2.15-$2.30 and non-GAAP EBITDA guidance to $175-$185 million.

Omnicell Faces New Pressure on Product MarginsMemory-chip supply-demand imbalances are creating a new cost headwind. Omnicell expects about $6 million of incremental memory-chip costs in the second half of 2026, roughly five times the level anticipated at the beginning of the year.

The company expects those costs to reduce full-year consolidated gross margin by about 50 basis points and product gross margin by roughly 80 basis points. With the tariff refund not recurring, continued component inflation or supply constraints could limit further margin expansion.

OMCL’s Booking Visibility Has WeakenedOmnicell widened full-year product-bookings guidance to $425-$560 million as it reassessed the timing of medium-sized and large hospital transactions. Large automation projects can require broad approvals and take multiple quarters or years to close.

Year-end 2026 annual recurring revenue guidance was reduced to $660-$680 million because some consumables opportunities are taking longer to develop. The slower timing matters because recurring revenue is intended to make Omnicell’s business mix more predictable.

Omnicell’s Refresh Cycle Could Take LongerTitan XT remains scheduled to ship in the second half of 2026, but the current XT installed base is younger than the G Series base was during the prior transition. That could reduce replacement urgency even as customers evaluate the new platform.

Competition adds another variable. Becton, Dickinson and Company (BDX) markets BD Pyxis medication-management and automated dispensing systems for health systems, while McKesson Corporation (MCK) offers pharmacy-automation technologies for dispensing, packaging and workflow efficiency. Omnicell is entering a major refresh period while customers are making broad platform comparisons.

OMCL’s Valuation Offers a Potential CounterweightOMCL trades at 1.33X forward 12-month sales, below its five-year median of 1.74X. The multiple is also below the Zacks Medical sector’s 2.24X and the Medical Info Systems sub-industry’s 5.58X.

Image Source: Zacks Investment Research

The discount provides some valuation support, but it does not remove execution risk. A more durable recovery would depend on bookings converting to deployments, recurring revenue improving and the Titan XT refresh translating into revenue over time.

OMCL’s Ratings Still Signal Near-Term CautionThe recent decline has made OMCL less expensive on a sales basis, while the higher 2026 earnings outlook provides an operating offset. Booking uncertainty, memory-chip inflation and refresh-cycle timing still leave the near-term setup unsettled.

OMCL currently carries a Zacks Rank #5 (Strong Sell). Its Growth Score of A, Value Score of B, Momentum Score of B and VGM Score of A indicate favorable characteristics across several investment styles, but the Zacks Rank remains the more important short-term signal because it reflects earnings-estimate revision trends. That combination argues for caution despite the stronger Style Scores.

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

Key Takeaways Murphy USA posted Q2 earnings 53.1% higher year over year, topping estimates by 19.9%.MUSA's fuel margins and nicotine gains strengthen its core model, while same-store fuel volume rose 0.5%.MUSA plans roughly $475-$525 million in 2026 capital spending as it targets more than 50 stores annually. Murphy USA Inc. (MUSA - Free Report) combines strong earnings momentum, favorable fuel economics and a growing store base. The Zacks Consensus Estimate calls for 2026 earnings of $36.53 per share versus $24.10 in 2025, while the estimate has risen 3.9% over the past four weeks.

The trade-off is valuation. MUSA commands a premium to several industry benchmarks as merchandise demand remains uneven, debt is elevated and expansion requires substantial capital.

MUSA’s Earnings Momentum Supports the Bull CaseSecond-quarter 2026 earnings of $11.27 per share topped the Zacks Consensus Estimate of $9.40 by 19.9% and rose 53.1% year over year. Revenues of $6.81 billion also surpassed the consensus mark by 15.3%.

The Zacks Consensus Estimate for 2026 earnings is $36.53 per share and has moved 3.9% higher in the past four weeks, supporting favorable near-term profit expectations.

Fuel and Nicotine Strengthen MUSA’s Core ModelMurphy USA’s high-volume, low-cost model benefits from Walmart-adjacent locations and fuel-supply capabilities that provide a lower-cost source for roughly 50%-60% of retail volume. Second-quarter retail fuel margin increased to 35.1 cents per gallon from 29.2 cents a year earlier, while same-store fuel volumes rose 0.5%.

Image Source: Murphy USA Inc.

Nicotine adds another driver. Same-store nicotine sales and margins increased 2.4% and 4.6%, respectively, while nicotine-pouch unit volume more than doubled. Cigarette market share gained 50 basis points.

MUSA’s Growth Plan Requires Heavy CapitalManagement expects new-store additions to finish closer to 45 in 2026, with 37 stores under construction after June 30. Murphy USA is also pulling forward work on 2027 openings and investing in its land pipeline to support more than 50 stores annually over time.

Capital expenditures are expected near the high end of the $475-$525 million range, while share repurchases remain a major capital-allocation lever. New stores take about three years to reach full ramp, making execution and cash generation central to the growth case.

Valuation Makes the MUSA Trade-Off More ComplexMUSA trades at 9.91X trailing 12-month EV/EBITDA, above the Zacks sub-industry’s 5.32X, the Zacks sector’s 6X and its five-year median of 9.3X. That premium leaves less room for disappointment if fuel margins normalize or growth slows.

Image Source: Zacks Investment Research

Casey’s General Stores, Inc. (CASY - Free Report) operates a large convenience-store network combining fuel with grocery and prepared-food sales, making it a useful industry comparison. Valvoline Inc. (VVV - Free Report) , a retail automotive-services company with more than 2,000 service centers, offers another reference point for capital-driven retail growth.

What Could Change the Case for MUSABetter-than-expected fuel margins, sustained nicotine share gains and successful new-store ramping would strengthen the investment case. Management used a 35-cents-per-gallon all-in fuel-margin assumption for the second half after first-half margins averaged 37.9 cents.

Same-store non-nicotine sales fell 1.4% in the second quarter, and management expects full-year merchandise contribution near the low end of its $890-$900 million range. Long-term debt stood at about $2.17 billion at June 30, while competition continues to pressure volumes in Colorado and Florida.

MUSA’s Factor Scores Favor Quality Over UrgencyMUSA’s operating and estimate trends support a constructive view, but valuation and execution demands argue against chasing the shares. The stock currently carries a Zacks Rank #3 (Hold), a rating that can be appropriate for investors already holding the stock while waiting for a more attractive entry point.

The stock also has a VGM Score of A, Growth Score of A, Momentum Score of A and Value Score of B. These grades indicate favorable growth and momentum characteristics with solid value attributes, but Style Scores complement the Zacks Rank rather than replace it. The combination supports quality without signaling urgency. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MarketBeat Week in Review – 11/4 - 11/8Altimmune NASDAQ: ALT said it has initiated patient enrollment in its global Phase III PERFORMA trial of pemvidutide for metabolic dysfunction-associated steatohepatitis, or MASH, while advancing plans for later-stage development in alcohol use disorder, or AUD.

Chairman and Chief Executive Officer Jerome Durso said 2026 has marked significant progress as the company focuses on serious liver diseases. The company began enrolling patients in PERFORMA about three months after securing funding intended to support the program through its 52-week data readout.

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Phase III MASH Program Underway How Altimmune Could Grab a Big Chunk of the GLP-1 MarketChief Medical Officer Dr. Christophe Arbet-Engels said PERFORMA will be conducted at roughly 300 sites, with approximately one-third in the U.S. and two-thirds outside the U.S. Altimmune is targeting enrollment at the lower end of an estimated 18- to 24-month range for studies of this type.

The company said it has sought to reduce screening failures and pathology variability through the trial design, including use of AIM-MASH AI-assisted pathology. Under the process described on the call, digitized biopsy slides will be assessed by the AI system, which will identify features and propose scores for pathologists to review. Pathologists will remain responsible for final scoring under a consensus-reading process.

This Small Cap Wealth Management Stock Could Provide Big ReturnsAltimmune said patients using GLP-1 therapies at antidiabetic doses may be included in PERFORMA. However, patients using Rezdiffra will not be included because the company does not want to compromise the trial’s 52-week biopsy endpoint. The company also plans to characterize patients who previously did not respond to or could not tolerate GLP-1 therapies or Rezdiffra.

The company expects the PERFORMA 52-week data readout in 2029.

AUD Data Supports Regulatory Planning Altimmune in July reported positive topline results from the Phase II RECLAIM trial in AUD. Arbet-Engels said the 2.4-milligram dose of pemvidutide met the primary endpoint by reducing heavy drinking days by 1.45 per week versus placebo at week 24.

The trial also met secondary endpoints that the company said are recognized by the FDA as potential registrational measures. Roughly two-thirds of pemvidutide-treated patients achieved a two-level reduction in World Health Organization risk drinking levels, compared with about one-third of placebo patients. More than twice as many pemvidutide patients achieved zero heavy drinking days versus placebo, according to the company.

Altimmune also reported statistically significant changes in abstinent drinking days, phosphatidylethanol, or PEth, levels, and body weight. The company said pemvidutide patients had a 9.1% reduction in body weight from baseline versus placebo.

In an exploratory analysis among patients with a baseline FIB-4 score above 1.3, Altimmune said 50% of pemvidutide-treated patients moved below that threshold after 24 weeks, compared with 17% of placebo patients. FIB-4 is a biomarker associated with risk of liver fibrosis.

The company plans to prepare a data package for an end-of-Phase-II meeting with the FDA and also expects to engage European regulators. Arbet-Engels said the company currently expects one global pivotal AUD trial could be sufficient, subject to regulatory discussions.

A potential Phase III AUD program would focus on moderate-to-severe AUD, could include patients with a body mass index below 25, and may evaluate lower-dose options. Altimmune said it would likely use a 24-week primary efficacy endpoint while following patients through 52 weeks for further analyses and safety data. The company has not provided guidance on trial timing.

ALD Enrollment Completed Altimmune said it completed enrollment in the Phase II RESTORE trial in alcohol-associated liver disease, or ALD. The study enrolled about 120 patients with ALD and a history of chronic heavy drinking, and topline data are expected in the second half of 2027.

The company amended the RESTORE protocol so that liver stiffness measurements will be assessed hierarchically at week 48 and then at week 24. Altimmune said the change is intended to better characterize potential liver benefits over one year and support future regulatory discussions.

Management said the protocol change did not alter the study’s population or power assumptions. The company also said a separate hepatic-impairment study enabled it to broaden RESTORE eligibility for patients with higher liver stiffness measurements, after observing no added risk in that population.

Second-Quarter Financial Results and Runway Altimmune reported a second-quarter net loss of $22.8 million, or $0.12 per share, compared with a net loss of $22.1 million, or $0.27 per share, in the prior-year quarter.

Research and development expense was $18.7 million, up from $17.2 million a year earlier. General and administrative expense was $7.6 million, compared with $5.7 million in the prior-year period. R&D spending included $11.6 million in direct pemvidutide-development costs, including $3.8 million for MASH, $5.3 million for Phase II AUD and ALD trials, and $2.5 million for chemistry, manufacturing and controls activities. Chief Financial Officer Greg Weaver said Altimmune raised approximately $310 million year to date, including a $225 million follow-on offering in April. The company had $519 million in cash as of June 30.

Weaver said the cash balance is expected to fund operations through the PERFORMA Phase III MASH 52-week readout in 2029, but does not include funding for a potential Phase III AUD trial. The company said its preference is to use non-dilutive financing for that program, potentially including royalties, debt or strategic partnerships.

About Altimmune (NASDAQ:ALT)Altimmune, Inc is a clinical-stage biopharmaceutical company headquartered in Gaithersburg, Maryland, dedicated to the development of vaccines and immunotherapeutics. The company leverages proprietary technology platforms to create intranasal vaccine candidates and novel therapies targeting liver diseases and metabolic disorders. Altimmune's approach emphasizes the stimulation of both systemic and mucosal immune responses to address unmet medical needs in infectious and chronic conditions.

Among its lead programs, NasoVAX is an investigational intranasal influenza vaccine designed to provide broad, long-lasting protection through a single, non-invasive dose.

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

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

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Shares of Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) are up 18% Wednesday morning to $227.70, extending a remarkable run for the AI cloud upstart. The catalyst is a blowout Q2 2026 report that reinforced the AI infrastructure demand thesis just hours after a similar print from a key rival.

The rally isn’t limited to Nebius. CoreWeave (NASDAQ:CRWV) stock is actually running hotter, with CRWV shares jumping 20% to $108.40 after its own Q2 numbers landed after yesterday’s close. Cloudflare (NYSE:NET) shares are unchanged at $307, and the First Trust Cloud Computing ETF (NASDAQ:SKYY) is up 2% to $164.78.

So the straightforward read on the headline: Nebius is outrunning Cloudflare by a wide margin but trailing CoreWeave on the day. Both AI-native cloud names are ripping on strong results, while the broader cloud sector is largely along for the ride. The market today is rewarding direct AI compute exposure and durable backlog visibility.

Earnings Beat Fuels a Neocloud Rerating Nebius reported Q2 2026 revenue of $582.3 million, up 454% year over year (YoY) and ahead of the $572.75 million consensus. The core AI cloud business, which now drives 98% of the top line, grew more than 500%.

Management also disclosed four landmark AI cloud deals each carrying more than $1 billion in total contract value, with 70% of signed deals including customer prepayments. CEO Arkady Volozh reaffirmed Nebius’s full-year 2026 outlook. Prepayments matter here because they de-risk the aggressive capex build-out that has weighed on the neocloud narrative.

Reddit sentiment on NBIS registered bullish at 78 around the earnings window, and the composite prediction score for the name sits at 71, tilting bullish with medium confidence. That reads as a market already positioned for a beat.

CoreWeave’s Backlog Steals the Spotlight CoreWeave posted Q2 EPS of -$1.14 against the -$1.41 expected on roughly $2.5 billion in revenue. Adjusted operating income landed at $128 million versus the roughly $66 million consensus.

The bigger number is the revenue backlog, which now sits at $104 billion and excludes another $25 billion-plus of Q3 commitments. CEO Michael Intrator flagged near-term capacity as effectively sold out, which is letting CoreWeave negotiate better commercial terms with the largest AI buyers. The company also raised its full-year outlook.

That backlog is the likely reason CRWV stock is running slightly hotter than NBIS stock today. It gives shareholders a multi-year revenue visibility figure that dwarfs the current run-rate, and it points to durable pricing power in GPU capacity that both neoclouds share. However, Reddit sentiment on CRWV came in bearish at 28, and the composite prediction score sits at 37, tilting bearish with medium confidence, with insider selling and rising debt loads as counterweights to the growth story.

Cloudflare and the Broader Cloud Sector Cloudflare has no company-specific catalyst today, and NET shares are unchanged/flat. The company is an edge and CDN name rather than a GPU landlord, so it isn’t benefiting from the same AI infrastructure demand signal that just lifted Nebius and CoreWeave. That distinction is doing a lot of work in explaining the divergence today.

The First Trust Cloud Computing ETF holds a broad basket of cloud names, and the ETF’s flat print illustrates the sector-concentration caveat. Diversification dilutes any single-name earnings pop. Traders who want direct exposure to the neocloud trade are getting it through NBIS and CRWV shares, not through the ETF.

What to Watch Next Investors can watch for whether NBIS stock holds today’s gains into the close, with the name already up 131% year to date (YTD) heading into this session. Traders may also want to watch for how NVIDIA‘s (NASDAQ:NVDA) next data center commentary shapes sentiment across the whole neocloud complex, since both Nebius and CoreWeave rent NVIDIA GPU capacity to end customers.

The near-term catalyst risk is macro rather than fundamental. Both Nebius and CoreWeave now trade on execution against multi-year commitments, and any softening in AI capex commentary from hyperscalers could compress the rerating premium quickly. For now, though, the neocloud trade is leading the group, Cloudflare is watching from the sidelines, and position-sizing should account for how quickly this crowded trade can unwind.

Contact [email protected] for any questions or corrections.

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SummaryApple Inc. delivered record June quarter results, but margin erosion and a cautious outlook prompted a downgrade from Strong Buy to Hold.AAPL's gross margin, excluding tariff refunds, is declining sharply—projected to fall nearly 3 percentage points in six months as memory costs surge.Supply constraints and rising component prices are set to pressure AAPL's September quarter results, with revenue growth guided below Street expectations.China revenue has rebounded to record levels even before Apple Intelligence launches, but near-term margin and supply headwinds outweigh this positive. Getty Images

Apple Inc. (AAPL) has just posted the best June quarter in the company’s history, with records nearly everywhere you looked and growth in every part of the world where it sells. And yet, the market thanked it with

4.52K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has climbed back into the spotlight after a blockbuster Q4 report, and Wall Street is nearly unanimous on where it goes next. Of 54 analysts covering the stock, 14 rate it Strong Buy, 40 Buy, and just 3 Hold, with zero sell ratings. Our own model agrees, and then some.

The 24/7 Wall St. price target for Microsoft is $604.39, implying 19.96% upside from the current price of $503.81. Our recommendation is buy with high confidence at 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $503.81 24/7 Wall St. Price Target $604.39 Upside 19.96% Recommendation BUY Confidence Level 90% From Post-Earnings Surge to a $100B Azure Milestone Microsoft has run 30.83% over the past month and 2.23% in the past week, though shares are still 2.67% below where they traded a year ago. The stock sits roughly 2% off its 52-week high of $550.24, well above the 52-week low of $349.20.

The July 29 Q4 FY2026 report was the catalyst. Microsoft posted revenue of $90.01 billion, up 17.75% YoY, and non-GAAP EPS of $4.74 versus a $4.24 estimate, an 11.81% beat and the fifth straight quarter of topping expectations.

Azure grew 43% and crossed $100 billion in annual revenue for the first time, while commercial remaining performance obligations vaulted 84% to $678 billion. Copilot paid seats topped 30 million.

The Case for $620 and Higher Bulls point to RPO of $678 billion, meaning Microsoft has locked in years of cloud revenue before it hits the income statement. Azure’s 43% growth is accelerating.

Copilot monetization is scaling faster than projected, and management retains optionality on OpenAI, where Microsoft holds roughly a 27% stake worth an estimated $135 billion. Our bull scenario points to $629.58, or 24.96% upside, if AI monetization continues surprising to the upside.

What Could Go Wrong Capex is the big variable. FY26 capital expenditures reached $115.95 billion, up 109.6%, and Q4 free cash flow fell 23.2% despite record earnings. Bulls counter that this is investment in AI infrastructure fueling that $678 billion RPO backlog, not wasted spend.

Insider selling has picked up, and prediction markets show only a 55% probability of MSFT closing above $500 this week. Our bear case lands at $517.36, essentially flat, if capex returns underwhelm.

How Microsoft Compares to Alphabet and Oracle Google (NASDAQ:GOOGL) is the cleanest hyperscaler comparison. Google Cloud grew 82% in Q2 2026 to $24.77 billion, faster than Azure, yet Alphabet trades at just a 15 P/E. That gap makes Microsoft’s 28 P/E look full, though MSFT commands a premium for margin quality and Copilot’s enterprise lock-in.

Oracle (NYSE:ORCL) is the pure-play AI infrastructure comp. Oracle’s IaaS revenue grew 93% YoY in Q4 FY26, and its RPO stands at $638 billion, comparable to Microsoft’s $678 billion but on a $419 billion market cap. Oracle’s growth rate is higher, but Microsoft delivers 40.3% net margins versus Oracle’s negative free cash flow. The peer set makes our $604.39 target look reasonable.

Company P/E Cloud Growth Microsoft 28 43% (Azure) Alphabet 15 82% (Google Cloud) Oracle n/a 93% (IaaS) Microsoft Price Prediction 2026-2030 The 24/7 Wall St. price target of $604.39 reflects a buy with 90% confidence. Microsoft is sitting on $678 billion of contracted commercial commitments, a backlog that anchors years of forward cloud revenue.

I’d be a buyer if Azure holds a 40%+ growth rate through FY27. I’d stay on the sidelines if capex growth outpaces cloud revenue growth for two straight quarters. The risk-reward favors ownership.

Year 24/7 Wall St. Price Target 2026 $604.39 2027 $605.73 2028 $700.20 2029 $752.66 2030 $837.87 These projections assume Microsoft continues converting its RPO backlog into recognized revenue and holds cloud operating margins in the mid-40s. Significant upside or downside could result from AI monetization surprises or a sharper-than-expected capex cycle.

Contact [email protected] for any questions or corrections.

Home Depot CEO Ted Decker is taking a "temporary medical leave of absence" for the next few months and the company has appointed two top deputies to lead until he returns, the retailer announced on Wednesday. 

Ann-Marie Campbell, Home Depot's senior executive vice president of U.S. stores and operations, will oversee day-to-day operations while finance chief Richard McPhail will run financial management and the Pro business, the company said. 

Lead independent director of the board, Greg Brenneman, will take over as chair of the board during Decker's leave. The board of directors made the appointments but they were "in alignment with Decker's recommendation," the company said. 

"The Home Depot has the best management team in retail. Both Ann-Marie and Richard are strong, seasoned executives who have worked together for more than 20 years," Brenneman said in a news release. "We are confident in Ann-Marie's and Richard's ability to lead the company during this time, and we look forward to Ted's return."

The announcement comes just under a week before the company is set to announce fiscal second quarter earnings on Tuesday. Home Depot didn't provide further details on Decker's condition.

Campbell, 61, has worked for Home Depot since 1985, starting as a cashier before working her way up to EVP of stores and operations. McPhail, 56, has been Home Depot's chief financial officer since September 2019 and joined the company in 2005. 

Both of the executives aren't receiving additional pay for taking on the increased responsibilities, according to a securities filing.

Record annualized recurring revenue, reflecting ongoing execution of the Connect & Scale strategy Record second quarter gross margins Second quarter results exceeded expectations Raising full year 2026 revenue and earnings guidance Board of Directors approves new share repurchase authorization of $1.0 billion , /PRNewswire/ -- Trimble Inc. (Nasdaq: TRMB) today announced financial results for the second quarter of 2026.

Second Quarter 2026 Financial Highlights

Revenue of $972.0 million, up 11 percent on a year-over-year basis, up 10 percent on an organic basis Annualized recurring revenue ("ARR") was $2.51 billion, up 14 percent year-over-year, up 12 percent on an organic basis GAAP operating income was $132.0 million, 13.6 percent of revenue, and non-GAAP operating income was $260.6 million, 26.8 percent of revenue GAAP net loss was $(471.7) million and non-GAAP net income was $200.3 million: the GAAP net loss was driven largely by a $562.0 million impairment of goodwill related to the Transportation and Logistics ("T&L") segment. Diluted loss per share was $(2.02) on a GAAP basis and diluted earnings per share was $0.86 on a non-GAAP basis Adjusted EBITDA was $278.0 million, 28.6 percent of revenue Executive Quote

"We delivered another strong quarter, increasing annualized recurring revenue to a record $2.509 billion, with strong recurring revenue growth across all segments," said Rob Painter, President and CEO of Trimble. "Our Connect and Scale strategy is building momentum with increasingly connected data and workflows across our ecosystem. Trimble is well positioned to accelerate AI-enabled value for customers and shareholders."

New Share Repurchase Authorization

The Board of Directors authorized the repurchase of up to $1.0 billion in shares of the Company's common stock. The stock repurchase authorization does not have an expiration date and replaces the prior authorization of up to $1.0 billion, of which $608.2 million was remaining as of the end of the second quarter of 2026, but is now cancelled.

Under the 2026 stock repurchase program, Trimble may repurchase stock from time to time through accelerated stock repurchase programs, open market transactions, privately negotiated transactions, block purchases, tender offers, or other means. The timing and actual amount of any stock repurchased will depend on a variety of factors, including market conditions, Trimble's stock price, and other available uses of capital, applicable legal requirements, and other factors. This program may be suspended, modified, or discontinued at any time without prior notice.

Forward-Looking Guidance

For the full-year 2026, Trimble expects to report revenue between $3,900 million and $3,950 million, GAAP loss per share of $0.07 to $0.12, and non-GAAP earnings per share of $3.60 to $3.70. GAAP guidance assumes a tax rate of 145.0 percent and non-GAAP guidance assumes a tax rate of 17.3 percent. Both GAAP loss and non-GAAP earnings per share assume approximately 234 million shares outstanding.

For the third quarter of 2026, Trimble expects to report revenue between $953 million and $978 million, GAAP earnings per share of $0.39 to $0.44, and non-GAAP earnings per share of $0.83 to $0.88. GAAP guidance assumes a tax rate of 24.0 percent and non-GAAP guidance assumes a tax rate of 17.3 percent. Both GAAP and non-GAAP earnings per share assume approximately 234 million shares outstanding.

A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on August 12, 2026 at 8:00 a.m. ET to review its second quarter of 2026 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, https://investor.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at https://investor.trimble.com. Investors and participants who wish to dial into the call may do so by first registering at https://events.q4inc.com/analyst/848449078?pwd=RQy4WSHT. Upon registration, dial-in details will be sent via email to the registrant. A replay will also be available on the web at the address above.

About Trimble

Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: https://www.trimble.com.

Safe Harbor

Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational results. These forward-looking statements are subject to change, and actual results may materially differ due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, effectively integrate new acquisitions or consummate divestitures in a timely manner, or get the benefits we are expecting from our joint ventures and partnerships, including with Platform Science. The Company's results could also be negatively impacted due to the general global macroeconomic outlook, including heightened trade tensions and export control restrictions between the U.S. and its trading partners, and associated supply chain disruptions, slowing growth, inflationary pressures, and fluctuations in interest rates, which may affect demand for our products and services, increase our costs and adversely affect our revenues and profitability; the pace at which our dealers work through their inventory; changes in our distribution channels; adverse geopolitical tensions and the ongoing impact of volatility and conflict in the political and economic environment, including the Middle East conflict, and the direct and indirect impact on our business; fluctuations in foreign currency exchange rates; the pace that we transition our business model towards a subscription model; the impact and risks of AI and AI-related developments; the impact of acquisitions or divestitures; the potential that any stock repurchases may not increase the value of our remaining shares, and we may elect not to purchase the full amount allocated under the 2026 stock repurchase program; and our ability to maintain effective internal controls over financial reporting, including our ability to remediate our material weaknesses in our internal controls over financial reporting. Any failure to achieve predicted results could negatively impact the Company's revenue, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the U.S. Securities and Exchange Commission, including our quarterly reports on Form 10-Q and our annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.

FTRMB

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2026

2025

2026

2025

Revenue:

Product

$          331.4

$          292.8

$          642.6

$          564.4

Subscription and services

640.6

582.9

1,269.3

1,151.9

Total revenue

972.0

875.7

1,911.9

1,716.3

Cost of sales:

Product

160.1

144.4

318.3

288.1

Subscription and services

120.1

117.3

239.4

237.0

Amortization of purchased intangible assets

16.9

16.1

33.0

32.5

Total cost of sales

297.1

277.8

590.7

557.6

Gross margin

674.9

597.9

1,321.2

1,158.7

Gross margin (%)

69.4 %

68.3 %

69.1 %

67.5 %

Operating expense:

Research and development

177.1

163.3

346.6

321.8

Sales and marketing

176.3

158.4

352.4

311.6

General and administrative

149.7

117.6

276.4

239.1

Restructuring

12.6

4.0

15.5

8.5

Amortization of purchased intangible assets

27.2

26.8

54.3

52.4

Total operating expense

542.9

470.1

1,045.2

933.4

Operating income

132.0

127.8

276.0

225.3

Non-operating (expense) income, net:

Goodwill impairment

(562.0)

—

(562.0)

—

Interest expense, net

(20.9)

(19.4)

(40.4)

(35.0)

Income from equity method investments, net

2.6

2.3

3.4

3.3

Other income, net

3.5

2.6

9.5

6.1

Total non-operating expense, net

(576.8)

(14.5)

(589.5)

(25.6)

(Loss) income before taxes

(444.8)

113.3

(313.5)

199.7

Income tax provision

26.9

24.1

59.3

43.8

Net (loss) income

$        (471.7)

$            89.2

$        (372.8)

$          155.9

Loss (earnings) per share:

Basic

$          (2.02)

$            0.37

$          (1.60)

$            0.65

Diluted

$          (2.02)

$            0.37

$          (1.60)

$            0.64

Shares used in calculating (loss) earnings per share:

Basic

233.0

238.1

233.7

240.7

Diluted

233.0

239.6

233.7

242.9

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

As of

Second Quarter of

Year End

2026

2025

Assets

Current assets:

Cash and cash equivalents

$                               214.4

$                                253.4

Accounts receivable, net

598.1

856.0

Inventories

185.3

186.3

Prepaid expenses

115.3

102.7

Other current assets

231.8

233.5

Total current assets

1,344.9

1,631.9

Property and equipment, net

183.2

182.8

Goodwill

4,826.6

5,239.7

Other purchased intangible assets, net

850.4

924.1

Deferred income tax assets

253.8

260.0

Equity investments

617.4

610.8

Other non-current assets

464.5

462.7

Total assets

$                            8,540.8

$                             9,312.0

Liabilities and Stockholders' Equity

Current liabilities:

Short-term debt

$                                 16.4

$                                     —

Accounts payable

195.3

168.3

Accrued compensation and benefits

166.5

211.7

Deferred revenue

833.9

894.0

Income taxes payable

6.6

17.7

Other current liabilities

191.5

211.7

Total current liabilities

1,410.2

1,503.4

Long-term debt

1,442.9

1,392.2

Deferred revenue, non-current

113.2

104.7

Deferred income tax liabilities

180.9

190.5

Other non-current liabilities

282.8

285.0

Total liabilities

3,430.0

3,475.8

Stockholders' equity:

Common stock

0.2

0.2

Additional paid-in-capital

2,489.9

2,437.9

Retained earnings

2,702.3

3,387.6

Accumulated other comprehensive (loss) income

(81.6)

10.5

Total stockholders' equity

5,110.8

5,836.2

Total liabilities and stockholders' equity

$                            8,540.8

$                             9,312.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

First Two Quarters of

2026

2025

Cash flow from operating activities:

Net (loss) income

$                             (372.8)

$                               155.9

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

Depreciation and amortization

101.0

98.8

Goodwill impairment

562.0

—

Deferred income taxes

5.3

(19.5)

Stock-based compensation

85.1

76.3

Other, net

(6.8)

36.6

(Increase) decrease in assets:

Accounts receivable, net

250.4

202.7

Inventories

5.5

12.6

Other current and non-current assets

(23.4)

(6.4)

Increase (decrease) in liabilities:

Accounts payable

26.8

(12.5)

Accrued compensation and benefits

(43.3)

(65.5)

Deferred revenue

(54.4)

(31.8)

Income taxes payable

(11.0)

(308.5)

Other current and non-current liabilities

(9.4)

(36.6)

Net cash provided by operating activities

515.0

102.1

Cash flow from investing activities:

Divestitures of businesses, net of cash divested

(2.0)

(7.3)

Acquisitions of businesses, net of cash acquired

(230.5)

(4.4)

Purchases of property and equipment

(13.2)

(12.5)

Other, net

0.4

(3.0)

Net cash used in investing activities

(245.3)

(27.2)

Cash flow from financing activities:

Issuance of common stock, net of tax withholdings

(32.5)

(23.1)

Repurchases of common stock

(329.0)

(677.4)

Proceeds from debt and revolving credit lines

795.8

348.3

Payments on debt and revolving credit lines

(729.5)

(227.3)

Other, net

(7.2)

(3.1)

Net cash used in financing activities

(302.4)

(582.6)

Effect of exchange rate changes on cash and cash equivalents

(6.3)

25.8

Net decrease in cash and cash equivalents

(39.0)

(481.9)

Cash and cash equivalents - beginning of period (1)

253.4

747.8

Cash and cash equivalents - end of period

$                               214.4

$                               265.9

(1) Includes $9.0 million of cash and cash equivalents classified as held for sale as of January 3, 2025.

REPORTING SEGMENTS

(In millions)

(Unaudited)

Reportable Segments

AECO

Field Systems

T&L

Second Quarter of 2026

Segment revenue

$                   388.5

$                   442.5

$                   141.0

Cost of sales

61.2

177.3

34.1

Operating expense

208.3

119.4

73.0

Operating income

$                   119.0

$                   145.8

$                     33.9

Operating income %

30.6 %

32.9 %

24.0 %

Second Quarter of 2025

Segment revenue

$                   350.3

$                   392.7

$                   132.7

Cost of sales

59.7

161.9

33.6

Operating expense

184.2

109.8

70.5

Operating income

$                   106.4

$                   121.0

$                     28.6

Operating income %

30.4 %

30.8 %

21.6 %

Reportable Segments

AECO

Field Systems

T&L

First Two Quarters of 2026

Segment revenue

$                   779.6

$                   851.7

$                   280.6

Cost of sales

123.9

352.3

68.5

Operating expense

413.6

235.6

144.4

Operating income

$                   242.1

$                   263.8

$                     67.7

Operating income %

31.1 %

31.0 %

24.1 %

First Two Quarters of 2025

Segment revenue

$                   685.7

$                   751.9

$                   278.7

Cost of sales

118.6

316.1

78.2

Operating expense

369.1

208.2

145.8

Operating income

$                   198.0

$                   227.6

$                     54.7

Operating income %

28.9 %

30.3 %

19.6 %

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2026

2025

2026

2025

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

REVENUE:

GAAP revenue:

$    972.0

$    875.7

$  1,911.9

$  1,716.3

GROSS MARGIN:

GAAP gross margin:

$    674.9

69.4 %

$    597.9

68.3 %

$  1,321.2

69.1 %

$  1,158.7

67.5 %

Amortization of purchased intangible
assets

(A)

16.9

16.1

33.0

32.5

Stock-based compensation / deferred
compensation

(C)

3.8

4.2

8.0

8.5

Restructuring and other costs

(D)

2.5

0.4

2.8

0.6

Non-GAAP gross margin:

$    698.1

71.8 %

$    618.6

70.6 %

$  1,365.0

71.4 %

$  1,200.3

69.9 %

OPERATING EXPENSES:

GAAP operating expenses:

$    542.9

55.9 %

$    470.1

53.7 %

$  1,045.2

54.7 %

$    933.4

54.4 %

Amortization of purchased intangible assets

(A)

(27.2)

(26.8)

(54.3)

(52.4)

Acquisition / divestiture items

(B)

(23.9)

(2.7)

(29.8)

(11.6)

Stock-based compensation / deferred compensation

(C)

(40.5)

(36.6)

(80.0)

(69.8)

Restructuring and other costs

(D)

(13.8)

(8.0)

(19.9)

(20.1)

Non-GAAP operating expenses:

$    437.5

45.0 %

$    396.0

45.2 %

$    861.2

45.0 %

$    779.5

45.4 %

OPERATING INCOME:

GAAP operating income:

$    132.0

13.6 %

$    127.8

14.6 %

$    276.0

14.4 %

$    225.3

13.1 %

Amortization of purchased intangible assets

(A)

44.1

42.9

87.3

84.9

Acquisition / divestiture items

(B)

23.9

2.7

29.8

11.6

Stock-based compensation / deferred compensation

(C)

44.3

40.8

88.0

78.3

Restructuring and other costs

(D)

16.3

8.4

22.7

20.7

Non-GAAP operating income:

$    260.6

26.8 %

$    222.6

25.4 %

$    503.8

26.4 %

$    420.8

24.5 %

NON-OPERATING EXPENSE, NET:

GAAP non-operating expense, net:

$   (576.8)

$    (14.5)

$   (589.5)

$    (25.6)

Acquisition / divestiture items

(B)

(5.5)

(2.6)

(9.6)

(7.9)

Deferred compensation

(C)

(0.9)

(2.9)

(2.9)

(2.0)

Restructuring and other costs

(D)

2.8

2.8

4.7

2.9

Goodwill impairment

(E)

562.0

—

562.0

—

Non-GAAP non-operating expense, net:

$    (18.4)

$    (17.2)

$    (35.3)

$    (32.6)

Tax Rate %

Tax Rate %

Tax Rate %

Tax Rate %

(G)

(G)

(G)

(G)

INCOME TAX PROVISION:

GAAP income tax provision:

$      26.9

(6.0) %

$      24.1

21.3 %

$      59.3

(18.9) %

$      43.8

21.9 %

Non-GAAP items tax effected

(F)

15.0

11.9

22.0

23.6

Non-GAAP income tax provision:

$      41.9

17.3 %

$      36.0

17.5 %

$      81.3

17.4 %

$      67.4

17.4 %

NET (LOSS) INCOME:

GAAP net (loss) income:

$   (471.7)

$      89.2

$   (372.8)

$    155.9

Amortization of purchased intangible assets

(A)

44.1

42.9

87.3

84.9

Acquisition / divestiture items

(B)

18.4

0.1

20.2

3.7

Stock-based compensation

(C)

43.4

37.9

85.1

76.3

Restructuring and other costs

(D)

19.1

11.2

27.4

23.6

Goodwill impairment

(E)

562.0

—

562.0

—

Non-GAAP tax adjustments

(F)

(15.0)

(11.9)

(22.0)

(23.6)

Non-GAAP net income:

$    200.3

$    169.4

$    387.2

$    320.8

DILUTED NET (LOSS) INCOME PER SHARE:

GAAP diluted net (loss) income per share:

$    (2.02)

$      0.37

$    (1.60)

$      0.64

Amortization of purchased intangible assets

(A)

0.19

0.18

0.37

0.35

Acquisition / divestiture items

(B)

0.08

—

0.09

0.02

Stock-based compensation

(C)

0.19

0.16

0.36

0.31

Restructuring and other costs

(D)

0.08

0.05

0.12

0.10

Goodwill impairment

(E)

2.40

—

2.40

—

Non-GAAP tax adjustments

(F)

(0.06)

(0.05)

(0.09)

(0.10)

Non-GAAP diluted net income per share:

$      0.86

$      0.71

$      1.65

$      1.32

ADJUSTED EBITDA:

GAAP operating income:

$    132.0

13.6 %

$    127.8

14.6 %

$    276.0

14.4 %

$    225.3

13.1 %

Amortization of purchased intangible assets

(A)

44.1

42.9

87.3

84.9

Acquisition / divestiture items

(B)

23.9

2.7

29.8

11.6

Stock-based compensation / deferred compensation

(C)

44.3

40.8

88.0

78.3

Restructuring and other costs

(D)

16.3

8.4

22.7

20.7

Non-GAAP operating income:

260.6

26.8 %

222.6

25.4 %

503.8

26.4 %

420.8

24.5 %

Depreciation expense and cloud computing amortization

12.0

12.3

23.8

24.3

Income from equity method investments, net

5.4

5.0

8.1

6.9

Adjusted EBITDA:

$    278.0

28.6 %

$    239.9

27.4 %

$    535.7

28.0 %

$    452.0

26.3 %

First Two Quarters of

2026

2025

FREE CASH FLOW:

Net cash provided by operating
activities

$                     515.0

$                     102.1

Capital expenditures

13.2

12.5

Free cash flow

$                     501.8

$                       89.6

Third Quarter of 2026

Year 2026

Low End

High End

Low End

High End

FORECASTED DILUTED NET INCOME (LOSS) PER SHARE:

Forecasted GAAP diluted net income (loss) per share:

$      0.39

$   0.44

$    (0.07)

$  (0.12)

Amortization of purchased intangible assets

(A)

0.19

0.19

0.74

0.74

Acquisition / divestiture items

(B)

0.06

0.06

0.16

0.16

Stock-based compensation

(C)

0.15

0.15

0.67

0.67

Restructuring and other costs

(D)

0.08

0.08

0.23

0.23

Goodwill impairment

(E)

—

—

2.40

2.40

Non-GAAP tax adjustments

(F)

(0.04)

(0.04)

(0.53)

(0.38)

Forecasted non-GAAP diluted net income per share:

$      0.83

$   0.88

$      3.60

$   3.70

FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION

This press release includes GAAP financial measures as well as non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP measures. We believe non-GAAP financial measures provide useful information to investors and others in understanding our "core operating performance", which excludes (i) the effect of non-cash items and certain variable charges not expected to recur and (ii) transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. Lastly, we believe that our core operating performance offers a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors.

The non-GAAP definitions and explanations to the adjustments to comparable GAAP measures are included below:

Non-GAAP Definitions

Non-GAAP gross margin

We define Non-GAAP gross margin as GAAP gross margin, excluding the effects of amortization of purchased intangible assets, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions, and manufacturing costs influence our business.

Non-GAAP operating expenses

We define Non-GAAP operating expenses as GAAP operating expenses, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue.

Non-GAAP operating income

We define Non-GAAP operating income as GAAP operating income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and spending.

Non-GAAP non-operating expense, net

We define Non-GAAP non-operating expense, net as GAAP non-operating expense, net, excluding goodwill impairment, acquisition/divestiture items, deferred compensation, and restructuring and other costs. We believe this measure helps investors evaluate our non-operating expense trends.

Non-GAAP income tax provision

We define non-GAAP income tax provision as the GAAP income tax provision adjusted for the tax effects of the non-GAAP pre-tax adjustments (A) through (E), excluding certain tax charges and benefits such as net deferred tax impacts resulting from tax amortization related to a non-U.S. intercompany transfer of intellectual property and certain acquisitions, deferred tax impacts from net controlled foreign corporation tested income ("net CFC tested income", formerly referred to as global intangible low-taxed income or "GILTI"), significant reserve releases upon the expiration of statute of limitations and audit closures, and tax law changes. We believe this measure helps investors because it provides for consistent treatment of excluded items in our non-GAAP presentation.

Non-GAAP net income

We define Non-GAAP net income as GAAP net (loss) income, excluding the effects of goodwill impairment, amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. This measure provides a supplemental view of net income trends, which are driven by non-GAAP income before taxes and our non-GAAP tax rate.

Non-GAAP diluted net income per share

We define Non-GAAP diluted net income per share as GAAP diluted net (loss) income per share, excluding the effects of goodwill impairment, amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the Company.

Adjusted EBITDA

We define Adjusted EBITDA as non-GAAP operating income plus depreciation expense, cloud computing amortization, and income from equity method investments, net, which excludes our proportionate share of items such as amortization of purchased intangibles, stock-based compensation, and restructuring costs. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is a performance measure that we believe offers a useful view of the overall operations of our business because it facilitates operating performance comparisons by removing potential differences caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes, depreciation, amortization of purchased intangibles and cloud computing costs, and income from equity method investments, net.

Free cash flow

We define free cash flow as cash flow from operating activities minus capital expenditures. We believe this measure is important to investors evaluating our generation of cash flow.

Explanations of Non-GAAP adjustments

(A)

Amortization of purchased intangible assets. Non-GAAP gross margin and operating expenses exclude the amortization
of purchased intangible assets, which primarily represents technology and/or customer relationships already developed.

(B)

Acquisition / divestiture items. Non-GAAP gross margin and operating expenses exclude costs consisting of external
and incremental costs resulting directly from acquisitions, divestitures, and strategic investment activities such as legal,
due diligence, integration, and other costs, including the acceleration of acquisition stock awards and adjustments to the
fair value of earn-out liabilities. Non-GAAP non-operating expense, net, excludes one-time acquisition/divestiture
charges, including foreign currency exchange rate gains/losses related to an acquisition, divestiture gains/losses, and
strategic investment gains/losses. These are one-time costs that vary significantly in amount and timing and are not
indicative of our core operating performance.

(C)

Stock-based compensation / deferred compensation. Non-GAAP gross margin and operating expenses exclude stock-
based compensation and income or expense associated with movement in our non-qualified deferred compensation plan
liabilities. Changes in non-qualified deferred compensation plan assets, included in non-operating expense, net, offset the
income or expense in the plan liabilities.

(D)

Restructuring and other costs. Non-GAAP gross margin and operating expenses exclude restructuring costs composed
of termination benefits related to reductions in employee headcount and other cost-saving initiatives, closure or exit of
facilities, and cancellation of certain contracts, and other costs composed of one-time incremental expenses resulting
from the re-audit and related remediation of control deficiencies. Non-GAAP non-operating expense net, excludes our
proportionate share of items recorded in income from equity method investment items, such as goodwill impairment,
amortization of purchased intangibles, stock-based compensation, and restructuring costs.

(E)

Goodwill Impairment. Non-GAAP non-operating expense, net excludes the goodwill impairment charge related to our
T&L segment. The impairment was triggered by a sustained decline in market capitalization and stock price reflecting
heightened macroeconomic uncertainty and lower market multiples for software businesses. 

(F)

Non-GAAP items tax effected. This amount represents the income tax effect of non-GAAP pre-tax adjustments,
excluding certain tax charges and benefits, which reconcile the GAAP income tax provision to the non-GAAP income
tax provision. 

(G)

Tax rate percentages. These percentages are defined as GAAP income tax provision as a percentage of GAAP income
before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes. 

OTHER KEY METRICS

Annualized Recurring Revenue
In addition to providing non-GAAP financial measures, Trimble provides an ARR performance measure in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. ARR represents the estimated annualized value of recurring revenue. ARR is calculated by taking our subscription and maintenance and support revenue for the current quarter and adding the portion of the contract value of all our term licenses attributable to the current quarter, then dividing that sum by the number of days in the quarter and then multiplying that quotient by 365. ARR should be viewed independently of revenue and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items.

Organic Annualized Recurring Revenue
Organic annualized recurring revenue refers to annualized recurring revenue excluding the impacts of (i) foreign currency translation and (ii) acquisitions and divestitures that closed in the prior 12 months.

Organic Revenue
Organic revenue refers to revenue excluding the impacts of (i) foreign currency translation and (ii) acquisitions and divestitures that closed in the prior 12 months.

SOURCE Trimble

INGREZZA is the only vesicular monoamine transporter 2 inhibitor with clinical trial data demonstrating improvements in quality of life and functionality in people living with tardive dyskinesia across multiple validated patient-reported outcomes Mean improvements in the patient-reported impacts of tardive dyskinesia and clinician-rated movement severity exceeded established thresholds for clinically meaningful change at Week 24, with improvements observed regardless of underlying psychiatric diagnosis or baseline movement severity Approximately 58% of patients met the threshold for tardive dyskinesia symptomatic remission at Week 24, based on clinician assessment of movement severity Findings reinforce that even patients with mild tardive dyskinesia movements are impacted and can experience meaningful improvements in movement severity, quality of life and functionality with INGREZZA treatment , /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced publication of the KINECT-PRO™ Phase 4 open-label study results demonstrating that treatment with once-daily INGREZZA® (valbenazine) capsules resulted in substantial and sustained improvements in patient-reported quality of life and functionality, alongside improvements in clinician-rated tardive dyskinesia (TD) movement severity. Improvements were observed regardless of underlying psychiatric diagnosis or baseline TD movement severity, including among participants with clinician-rated mild TD movements. The manuscript appears in CNS Spectrums.

KINECT-PRO is currently the only study to assess the effects of a vesicular monoamine transporter 2 (VMAT2) inhibitor (INGREZZA) on quality of life and functionality using multiple validated patient-reported outcomes (PROs), including the Tardive Dyskinesia Impact Scale (TDIS™). TDIS, developed by Neurocrine Biosciences in partnership with thought leaders in neurology and psychiatry, is a unique, psychometrically validated tool that measures the impact and burden of TD from a patient's perspective. Together with clinician-rated assessments, these findings provide a more comprehensive understanding of how treatment may affect both TD movements and the impact of the disease on patients' daily lives.

"The KINECT-PRO clinical study incorporated validated patient-reported measures, including the Tardive Dyskinesia Impact Scale, to better understand the effects of treating tardive dyskinesia with INGREZZA on patient-reported quality of life and functioning," said Sanjay Keswani, M.D., Chief Medical Officer, Neurocrine Biosciences. "These findings add to the extensive body of evidence supporting the meaningful improvements INGREZZA has on movement severity and quality of life and functionality."

"Quality of life and day-to-day functioning are important considerations when evaluating the impact of tardive dyskinesia and treatment goals," said Christoph U. Correll, M.D., Professor of Psychiatry, The Zucker Hillside Hospital and primary author of the manuscript. "These findings showed improvements with INGREZZA in both clinician-rated movement severity and patient-reported daily impact and reinforced the potential for meaningful benefit across a broad range of patients regardless of baseline movement severity or underlying psychiatric diagnosis."

KINECT-PRO evaluated improvements in outcomes that matter to patients

The primary endpoints of KINECT-PRO were changes from baseline to Week 24 in three validated patient-reported measures of quality of life and functionality, including:

TDIS: Measures the physical, social and emotional impacts of TD. EuroQoL Visual Analogue Scale (EQ-VAS): Measures patients' self-rated overall health status. The Sheehan Disability Scale (SDS): Measures patient-reported functional impairment in work/school, social life and family/home life.  Secondary endpoints evaluated clinician- and patient-reported changes in TD severity using the Abnormal Involuntary Movement Scale (AIMS), the Patient Global Impression of Change (PGI-C) and the Clinical Global Impression of Severity-TD (CGI-TD-S). Fifty-nine patients were enrolled in the KINECT-PRO study and received once-daily INGREZZA (40 mg, 60 mg or 80 mg) for up to 24 weeks. At baseline, approximately 41% of patients (24/59) had clinician-rated mild TD movement severity, while approximately 59% (35/59) had clinician-rated moderate or severe TD movement severity. Approximately 46% of patients (27/59) had schizophrenia or schizoaffective disorder, and approximately 54% (32/59) had major depressive disorder or bipolar disorder. Fifty-two patients completed the Week 24 visit.

Patients experienced improvements in quality of life, functionality and movement severity

KINECT-PRO participants experienced substantial improvements across the three validated patient-reported measures of quality of life (TDIS, SDS and EQ-VAS), as well as improvements in clinician-reported TD severity.

Mean improvements in TD impact (TDIS) and movement severity (AIMS) exceeded established minimal clinically important difference (MCID) thresholds as early as Week 8 and Week 4, respectively, and were sustained to Week 24. Improvements were observed regardless of underlying psychiatric condition or TD movement severity at baseline. Even patients with milder clinician-rated TD movement severity were impacted by TD at baseline and experienced clinically meaningful improvements by Week 24, including a -6.8 mean change from baseline in TDIS and a -5.6 mean change from baseline in AIMS. Approximately 58% of patients (26/45) met the threshold for TD symptomatic remission at Week 24, defined as a movement severity score of 0 ("none") or 1 ("minimal") in each of the seven body regions assessed by AIMS. Safety and tolerability of treatment were consistent with the known profile of INGREZZA, with no new concerns identified.
Mean Change from Baseline at Week 24

TDIS†

(MCID -4)

SDS -

Social Life†

SDS -

Family Life†

EQ-VAS‡

AIMS Total
Score†

(MCID -2)

Overall Population

(n=45)*

-8.0

-2.3

-1.6

+13.1

-6.8

Mild TD Subgroup

(n=20)

-6.8

-1.8

-1.3

+12.8

-5.6

Moderate/Severe
TD Subgroup

(n=25)

-8.9

-2.8

-1.8

+13.3

-7.8

*52/59 (88%) completed the Week 24 visit; 45 were included for efficacy analyses.

†A decrease in score indicated improvement.

‡An increase in score indicated improvement.

About the KINECT-PRO™ Phase 4 Study
The KINECT-PRO™ Phase 4, open-label study was designed to evaluate patient-reported outcomes on the use of INGREZZA® (valbenazine) capsules in a tardive dyskinesia (TD) patient population reflective of real-world clinical practice. Participants had at least mild TD, were aware of and experiencing at least mild distress from their abnormal, involuntary movements and had a clinical diagnosis of schizophrenia, schizoaffective disorder, bipolar disorder or major depression. The KINECT-PRO study included a four-week screening period, a 24-week treatment period during which participants received 40 mg of INGREZZA once-daily for the first four weeks, followed by flexible dosing of 40 mg, 60 mg or 80 mg once-daily based on individual treatment needs and a two-week safety follow-up period. Baseline socio-demographic and clinical characteristics of the participants were broadly similar to those of the KINECT® 3 and KINECT® 4 studies.

KINECT-PRO is the first and only study to specifically evaluate and demonstrate patient-reported improvement with vesicular monoamine transporter 2 inhibitor treatment on TD using multiple clinically validated scales, including the Tardive Dyskinesia Impact Scale (TDIS™). The TDIS is the only patient-reported outcome instrument designed for and psychometrically validated in tardive dyskinesia patients that measures the physical, social and emotional impact of the involuntary movements of the condition.

About the Tardive Dyskinesia Impact Scale
The Tardive Dyskinesia Impact Scale (TDIS™) is the only patient-reported outcome instrument designed for and validated in tardive dyskinesia patients that measures the physical, social and emotional impact of the involuntary movements of the condition. It was developed by Neurocrine Biosciences in partnership with thought leaders in neurology and psychiatry from qualitative studies and Phase 3 trials of INGREZZA for the treatment of TD (KINECT® 3 and KINECT® 4) as a comprehensive measure of impact and burden of TD from a patient's perspective. The TDIS consists of 11 questions evaluating physical and socio-emotional impact. Six scales are assessed: mouth/throat, dexterity, mobility, pain, social and emotional. The TDIS allows people with TD to rate how their symptoms affect daily activities and how their uncontrollable movements make them feel. The questionnaire captures relevant information about the impact of TD to provide a more holistic assessment of the condition. Validation of this scale was published in the Journal of Patient-Reported Outcomes.

About the EQ Visual Analogue Scale and the Sheehan Disability Scale 
The EQ Visual Analogue Scale (EQ-VAS) is the second component of the 5-level EQ 5D (EQ-5D-5L). The EQ-VAS is a visual scale ranging from 0 "the worst health you can imagine" to 100 "the best health you can imagine" that assesses a patient's self-rated health, with higher scores indicating better health status.

The Sheehan Disability Scale (SDS) is a five-item, patient-reported outcome measure which includes social, family and occupational life domains. Three items assess impairment in terms of work/school, social life and family life/home responsibilities and are scored independently (0 [not impaired] to 10 [extremely impaired]) or combined for a total score (0 to 30). Two items assess number of days lost or underproductive. A decrease in score indicates improvement.

About Tardive Dyskinesia
Tardive dyskinesia (TD) is a movement disorder that is characterized by uncontrolled, abnormal and repetitive movements of the face, torso and/or other body parts, which may be disruptive and negatively impact patients. The condition is associated with taking certain kinds of mental health medicines (antipsychotics) that help control dopamine receptors in the brain. Taking antipsychotics commonly prescribed to treat mental illnesses such as major depressive disorder, bipolar disorder, schizophrenia and schizoaffective disorder and other prescription medicines (metoclopramide and prochlorperazine) used to treat gastrointestinal disorders are associated with TD. In patients with TD, these treatments are thought to result in irregular dopamine signaling in a region of the brain that controls movement. The symptoms of TD can be mild to severe and are often persistent and irreversible. TD is estimated to affect at least 800,000 adults in the U.S.

About INGREZZA® (valbenazine) Capsules and INGREZZA® SPRINKLE (valbenazine) Capsules 
INGREZZA is a selective vesicular monoamine transporter 2 (VMAT2) inhibitor approved by the U.S. Food and Drug Administration for the treatment of adults with tardive dyskinesia and the treatment of chorea associated with Huntington's disease (HD). Only INGREZZA offers a therapeutic dose from day one with no required titration.

INGREZZA, developed by Neurocrine Biosciences, selectively inhibits VMAT2 with no appreciable binding affinity for VMAT1, dopaminergic (including D2), serotonergic, adrenergic, histaminergic or muscarinic receptors. While the specific way INGREZZA works to treat TD and HD chorea is not fully understood, INGREZZA is unique in that it selectively and specifically targets VMAT2 to inhibit the release of dopamine, a chemical in the brain that helps control movement. INGREZZA is believed to reduce extra dopamine signaling, which may lead to fewer uncontrollable movements.

INGREZZA is studied across the widest range of patients. It is always one capsule, once daily and can be taken together with most stable mental health regimens such as antipsychotics or antidepressants. Only INGREZZA offers the benefit of a sprinkle formulation, INGREZZA SPRINKLE, for those who experience dysphagia, have difficulty swallowing or prefer not to swallow a pill. INGREZZA and INGREZZA SPRINKLE dosages approved for use are 40 mg, 60 mg and 80 mg capsules.

Important Information

Approved Uses 
INGREZZA® (valbenazine) capsules or INGREZZA® SPRINKLE (valbenazine) capsules are prescription medicines used to treat adults with:

movements in the face, tongue, or other body parts that cannot be controlled (tardive dyskinesia).  involuntary movements (chorea) of Huntington's disease. INGREZZA or INGREZZA SPRINKLE do not cure the cause of involuntary movements, and do not treat other symptoms of Huntington's disease, such as problems with thinking or emotions.  It is not known if INGREZZA or INGREZZA SPRINKLE is safe and effective in children. 

IMPORTANT SAFETY INFORMATION 

INGREZZA or INGREZZA SPRINKLE can cause serious side effects in people with Huntington's disease, including: depression, suicidal thoughts, or suicidal actions. Tell your healthcare provider before you start taking INGREZZA or INGREZZA SPRINKLE if you have Huntington's disease and are depressed (have untreated depression or depression that is not well controlled by medicine) or have suicidal thoughts. Pay close attention to any changes, especially sudden changes, in mood, behaviors, thoughts, or feelings. This is especially important when INGREZZA or INGREZZA SPRINKLE is started and when the dose is changed. Call your healthcare provider right away if you become depressed, have unusual changes in mood or behavior, or have thoughts of hurting yourself. 

Do not take INGREZZA or INGREZZA SPRINKLE if you: 

are allergic to valbenazine, or any of the ingredients in INGREZZA or INGREZZA SPRINKLE.  INGREZZA or INGREZZA SPRINKLE can cause serious side effects, including: 

Allergic reactions. Allergic reactions, including an allergic reaction that causes sudden swelling called angioedema, can happen after taking the first dose or after many doses of INGREZZA or INGREZZA SPRINKLE. Signs and symptoms of allergic reactions and angioedema include: trouble breathing or shortness of breath, swelling of your face, lips, eyelids, tongue, or throat, or other areas of your skin, trouble with swallowing, or rash, including raised, itchy red areas on your skin (hives). Swelling in the throat can be life-threatening and can lead to death. Stop taking INGREZZA or INGREZZA SPRINKLE and go to the nearest emergency room right away if you develop these signs and symptoms of allergic reactions and angioedema.  Sleepiness and tiredness that could cause slow reaction times (somnolence and sedation). Do not drive a car or operate dangerous machinery until you know how INGREZZA or INGREZZA SPRINKLE affects you. Drinking alcohol and taking other medicines may also cause sleepiness during treatment with INGREZZA or INGREZZA SPRINKLE.  Heart rhythm problems (QT prolongation). INGREZZA or INGREZZA SPRINKLE may cause a heart rhythm problem known as QT prolongation. You have a higher chance of getting QT prolongation if you also take certain other medicines during treatment with INGREZZA or INGREZZA SPRINKLE. Tell your healthcare provider right away if you develop any signs or symptoms of QT prolongation, including: fast, slow, or irregular heartbeat (heart palpitations), shortness of breath, dizziness or lightheadedness, or fainting or feeling like you are going to faint.  Neuroleptic Malignant Syndrome (NMS). NMS is a serious condition that can lead to death. Call a healthcare provider right away or go to the nearest emergency room if you develop these symptoms and they do not have another obvious cause: high fever, stiff muscles, problems thinking, irregular pulse or blood pressure, increased sweating, or very fast or uneven heartbeat.  Parkinson-like symptoms. Symptoms include: body stiffness, drooling, trouble moving or walking, trouble keeping your balance, shaking (tremors), or falls.  Before taking INGREZZA or INGREZZA SPRINKLE, tell your healthcare provider about all of your medical conditions including if you: have liver or heart problems, are pregnant or plan to become pregnant, or are breastfeeding or plan to breastfeed.

Tell your healthcare provider about all the medicines you take, including prescription and over-the-counter medicines, vitamins, and herbal supplements. Make sure you tell all of your healthcare providers that you are taking INGREZZA or INGREZZA SPRINKLE. Taking INGREZZA or INGREZZA SPRINKLE with certain other medicines may cause serious side effects. Especially tell your healthcare provider if you: take digoxin or take or have taken a monoamine oxidase inhibitor (MAOI) medicine. You should not take INGREZZA or INGREZZA SPRINKLE if you are taking, or have stopped taking, a MAOI within the last 14 days. 

The most common side effects of INGREZZA or INGREZZA SPRINKLE in people with tardive dyskinesia are sleepiness and tiredness.

The most common side effects of INGREZZA or INGREZZA SPRINKLE in people with chorea associated with Huntington's disease include sleepiness and tiredness, raised itchy red areas on your skin (hives), rash, and trouble getting to sleep or staying asleep. 

These are not all of the possible side effects of INGREZZA or INGREZZA SPRINKLE. Call your doctor for medical advice about side effects. You are encouraged to report negative side effects of prescription drugs to the FDA. Visit MedWatch at www.fda.gov/medwatch or call 1-800-FDA-1088. 

Dosage Forms and Strengths: INGREZZA and INGREZZA SPRINKLE are available in 40 mg, 60 mg, and 80 mg capsules. 

Please see full Prescribing Information, including Boxed Warning, and Medication Guide. 

About Neurocrine Biosciences, Inc. 
Neurocrine Biosciences is a leading biopharmaceutical company with a simple purpose: to relieve suffering for people with great needs. We are dedicated to discovering, developing and commercializing life-changing treatments for patients with under-addressed neurological, psychiatric, endocrine and immunological disorders. The company's diverse portfolio includes FDA-approved treatments for tardive dyskinesia, chorea associated with Huntington's disease, classic congenital adrenal hyperplasia, hyperphagia in Prader-Willi syndrome, endometriosis* and uterine fibroids*, as well as a robust pipeline including multiple compounds in mid- to late-phase clinical development across our core therapeutic areas. For more than three decades, we have applied our unique insight into neuroscience and the interconnections between brain and body systems to treat complex conditions. We relentlessly pursue medicines to ease the burden of debilitating diseases and disorders, because you deserve brave science. For more information, visit neurocrine.com, and follow the company on LinkedIn, X, Facebook and YouTube. (*in collaboration with AbbVie)

The NEUROCRINE BIOSCIENCES Logo, NEUROCRINE, YOU DESERVE BRAVE SCIENCE, KINECT and INGREZZA are registered trademarks of Neurocrine Biosciences, Inc. KINECT-PRO and TDIS are trademarks of Neurocrine Biosciences, Inc.

Forward-Looking Statements
In addition to historical facts, this press release contains forward-looking statements that involve a number of risks and uncertainties. These statements include, but are not limited to, statements regarding the potential benefits to be derived from INGREZZA, the interpretation and potential relevance of the data described in this press release, including statements regarding clinically meaningful improvements in patient-reported quality of life and functional capacity and clinician-rated movement severity among patients with tardive dyskinesia, and the value INGREZZA may bring to patients. Factors that could cause actual results to differ materially from those stated or implied in the forward-looking statements include, but are not limited to, the following: risks and uncertainties as to whether the data described in this press release will be replicated in additional studies or will be predictive of efficacy or other clinical outcomes in subsequent clinical studies or real-world use of INGREZZA; risks and uncertainties associated with Neurocrine Biosciences' business and finances in general, as well as risks and uncertainties associated with the commercialization of INGREZZA; whether INGREZZA receives adequate reimbursement from third-party payors; risks and uncertainties relating to competitive products and technological changes that may limit demand for INGREZZA; risks associated with the Company's dependence on third parties for development and manufacturing activities related to INGREZZA, and the ability of the Company to manage these third parties; risks that additional regulatory submissions for INGREZZA or other product candidates may not occur or be submitted in a timely manner; risks that the FDA or other regulatory authorities may make adverse decisions regarding INGREZZA; risks that post-approval INGREZZA commitments or requirements may be delayed; risks that INGREZZA may be precluded from commercialization by the proprietary or regulatory rights of third parties, or have unintended side effects, adverse reactions or incidents of misuse; and other risks described in the Company's periodic reports filed with the Securities and Exchange Commission, including without limitation the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2026. Neurocrine Biosciences disclaims any obligation to update the statements contained in this press release after the date hereof other than required by law.

© 2026 Neurocrine Biosciences, Inc. All Rights Reserved. CAP-VBZ-US-0106 08/2026 

SOURCE Neurocrine Biosciences, Inc.

ISS Joins Glass Lewis to Recommend Stockholders Vote "FOR" the Transaction Ahead of August 20 Meeting

ISS Highlights Thorough Sales Process, Sound Strategic Rationale, and Opportunity to Participate in Combined Company's Potential Upside

, /PRNewswire/ -- LivePerson (NASDAQ: LPSN) ("LivePerson" or "the Company"), a leading provider of predictable conversational AI, today announced that leading independent proxy advisory firm Institutional Shareholder Services ("ISS") has recommended that LivePerson stockholders vote "FOR" the Company's proposed transaction with SoundHound AI, Inc. (NASDAQ: SOUN) and related proposals ahead of the upcoming Special Meeting of Stockholders on August 20, 2026. ISS joins Glass Lewis, which recommended in favor of the proposed transaction and all related proposals on August 7, 2026.

In its independent analysis, ISS noted, "The sales process appears to have been thorough, the strategic rationale seems sound, and the stock form of consideration gives shareholders the opportunity to participate in the potential upside of a larger entity. In addition, there has been no public opposition to the transaction, and the company has specifically warned of delisting and substantial indebtedness leading to bankruptcy, should the company continue as a standalone entity."

John Sabino, CEO of SoundHound, said, "We are pleased that ISS joined Glass Lewis in recognizing the compelling merits of this transaction. This second major endorsement from a highly respected, independent proxy advisory firm reinforces what our Board has determined throughout this process: joining forces with SoundHound AI represents the most secure, value-maximizing path for our stockholders. ISS's findings make it clear that the transaction provides our investors with potential future upside in a combined, debt-free company, while avoiding the severe risks of remaining a standalone entity."

LivePerson strongly encourages all LivePerson stockholders to follow ISS and Glass Lewis' guidance and vote FOR the proposal ahead of our August 20 Special Meeting. For additional information on the transaction and how to vote, visit VoteLivePerson.com. 

VOTE TODAY

Your vote is very important. The Special Meeting is scheduled for August 20, 2026.

Approval of the merger proposal requires the affirmative vote of a majority of all outstanding shares of LivePerson common stock. Not voting has the same effect as voting against the transaction.

Vote today by proxy card, online or by phone. For more information and additional materials visit VoteLivePerson.com, or contact LivePerson's proxy solicitor, MacKenzie Partners, Inc., toll-free at (800) 322-2885 or by e-mail at [email protected].

MacKenzie Partners, Inc.
7 Penn Plaza
 New York, NY 10001
Call Toll-Free: (800) 322-2885
 Email: [email protected] 

Tel Aviv Stock Exchange Voting Information

LivePerson stockholders who hold shares listed on the Tel Aviv Stock Exchange (TASE) and intend to vote their shares must deliver to LivePerson's Israeli counsel, Arnon, Tadmor-Levy, c/o Moshe Pasker, Azrieli Center (Square Tower), Tel Aviv, Israel, 6702101 (email: [email protected]), an ownership certificate confirming their ownership on July 6, 2026. The form of proxy card for stockholders who hold shares listed on the TASE can be found here: https://mayafiles.tase.co.il/rpdf/1759001-1760000/P1759388-00.pdf.

About LivePerson

LivePerson (NASDAQ: LPSN) is an enterprise leader in predictable conversational AI. The world's leading brands use our award-winning Conversational Cloud and Syntrix platforms to connect with millions of customers. We power nearly a billion messages every month, providing uniquely rich data analytics, agent training, and AI evaluation tools to unlock the power of conversational AI for better business outcomes. Learn more at liveperson.com.

Media Contact:

Riah Lawry
[email protected] 

Or

Jim Golden / Dylan O'Keefe
Collected Strategies
[email protected] 

Investor Relations Contact:

[email protected] 

Forward-Looking Statements

This document contains "forward-looking statements" within the meaning of the U.S. federal securities laws about the expectations, beliefs, plans, intentions, prospects, financial results and strategies relating to SoundHound AI's proposed acquisition of LivePerson. Such forward-looking statements include, among others, statements regarding the timing of filing the definitive proxy/prospectus and timing of LivePerson's special meeting, obtaining regulatory approvals, the timing of closing of the proposed acquisition, and the parties' expectations, intentions, strategies, assumptions or beliefs about future events, results of operations or performance or that do not solely relate to historical or current facts. Forward-looking statements are predictions, projections and other statements about future events or conditions that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including: (1) the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between LivePerson and SoundHound; (2) the possibility that the transaction does not close when expected or at all due to the failure to satisfy all of the conditions to closing on a timely basis or at all, including the failure to obtain the required shareholder approvals or to consummate the notes restructuring transactions contemplated by the Notes Restructuring Agreement; (3) the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which LivePerson and SoundHound operate; (4) any failure to promptly and effectively integrate the businesses of LivePerson and SoundHound; (5) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (6) reputational risk and potential adverse reactions of LivePerson's or SoundHound's customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the transaction; (7) the diversion of management's attention and time to the transaction from ongoing business operations and opportunities; and (8) the outcome of any legal proceedings that may be instituted against LivePerson or SoundHound or in connection with the transaction. Further information on factors that could affect the forward-looking statements and expectations above are contained in the filings that LivePerson and/or SoundHound AI have filed, or that will be filed, with the U.S. Securities and Exchange Commission (the "SEC"), including as set forth in the Form S-4 and the proxy statement/prospectus contained therein, as well as the documents incorporated by reference therein.

All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and LivePerson does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law.

No Offer or Solicitation

This communication is not intended to be, and shall not constitute, an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.

Additional Information and Where to Find It

In connection with the proposed transaction, SoundHound AI has filed with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 (the "Form S-4") that includes a definitive proxy statement of LivePerson and that constitutes a prospectus of SoundHound AI with respect to the shares of the SoundHound AI common stock to be issued in the proposed transaction, dated July 9, 2026 (the "proxy statement/prospectus"). The proxy statement/prospectus was filed with the SEC on July 9, 2026 by LivePerson, and the mailing of the proxy statement/prospectus began to LivePerson's stockholders on or about the same date. Each of SoundHound AI and LivePerson may also file other relevant documents with the SEC regarding the proposed transaction.

This communication is not a substitute for the Form S-4, the proxy statement/prospectus or any other document that SoundHound AI or LivePerson has filed, or may file, with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF SOUNDHOUND AI AND LIVEPERSON ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain copies of these documents (if and when available), as well as other filings containing information about SoundHound AI and LivePerson, free of charge on the SEC's website at www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by the Company will be available free of charge on SoundHound AI's website at https://investors.soundhound.com/financial-information/sec-filings. Copies of the documents filed with, or furnished to, the SEC by LivePerson will be available free of charge on LivePerson's website at https://ir.liveperson.com/financial-information/sec-filings. The information included on, or accessible through, SoundHound AI's or LivePerson's website is not incorporated by reference into this communication.

Participants in the Solicitation

SoundHound, LivePerson and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies with respect to the proposed transaction under the rules of the SEC. Information about the directors and executive officers of SoundHound, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in SoundHound's definitive proxy statement for its 2026 annual meeting of stockholders under the heading "Proposal 1 – Election of Directors", which was filed with the SEC on April 9, 2026 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001840856/000121390026041978/ea0285618-01.htm. Information about the directors and executive officers of LivePerson and their ownership of LivePerson equity interests can be found in the section entitled "Interests of LivePerson Directors and Executive Officers in the Mergers" and "Owners and Management of LivePerson" included in the proxy/prospectus, which was filed with the SEC on July 9, 2026 and is available at https://www.sec.gov/Archives/edgar/data/1102993/000121390026076759/ea0297465-01.htm. Further information about the directors and executive officers of LivePerson may be found in its amendment to its Annual Report on Form 10-K for the year ended December 31, 2025 under the headings "Directors, Executive Officers and Corporate Governance," "Executive Compensation," "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" and is available at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001102993/000110299326000020/lpsn-20251231.htm; in the Form 3 and Form 4 statements of beneficial ownership and statements of changes in beneficial ownership filed with the SEC by LivePerson's directors and executive officers; and is in other documents filed by LivePerson with the SEC. Additional information regarding the interests of the participants in the solicitation of proxies will be included in other relevant materials to be filed with the SEC if and when they become available. You should read the Form S-4 and the proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents using the sources indicated above.

SOURCE LivePerson, Inc.