The headline number for this article is $180, and I want to address it head on before anyone scrolls further.
Our proprietary 24/7 Wall St. price target for PepsiCo (NASDAQ:PEP | PEP Price Prediction) is $170.18 over the next 12 months, with a clear path to $180 in the bull case as the World Cup activation, productivity savings, and convenient foods recovery compound through 2027. With shares at $142.02, that base case implies 19.83% upside.
Metric Value Current Price $142.02 24/7 Wall St. Price Target $170.18 Upside 19.83% Research View Constructive Confidence Level 90% A Defensive Name That Just Went on Sale PEP has fallen 4.42% over the past 30 days and 1.19% in the last week, partly reflecting hawkish Fed commentary that dimmed appetite for dividend stocks. Zooming out, shares are up 14.55% over the past year and Pepsi remains a Consumer Defensive anchor with a beta of 0.359.
Q1 FY2026 delivered core EPS of $1.61 on revenue of $19.44 billion, a 8.5% year-over-year gain. Operating margin expanded 210 basis points to 16.5%, and management reaffirmed full-year organic revenue growth of 2% to 4%. The next earnings catalyst lands on July 9, 2026.
Why Bulls See $180 by Mid-2027 Piper Sandler maintains an Overweight rating with a $178 price target, while TIKR’s longer-term model points to $208 by December 2030. Our bull case scenario lands at $177.28 by June 2027, with the $180 mark within reach if Q2 and Q3 earnings extend the Q1 beat streak.
Growth drivers are tangible. CEO Ramon Laguarta noted that PBNA grew 9% in Q1, and international markets are accelerating around the 2026 World Cup activation. PFNA added 300 million new consumption occasions versus the prior year.
Laguarta stated: “We’ve seen momentum in PBNA, both organic and reported…And sequential growth in PFNA.” Add a $10 billion buyback authorization, the 54th consecutive dividend hike, and active institutional buying, and the bull math works.
The Risks Worth Watching Tariff-driven commodity costs hit PBNA with an 11 percentage point impact in Q4 25, and FY25 operating income fell 19.57% on Rockstar and Be & Cheery impairments totaling $1.993 billion. Volume softness in convenient foods and slower snack consumption tied to GLP-1 adoption could pressure organic growth toward the bottom of the 2% to 4% range. Our bear case scenario stops at $152.27.
The FY25 impairments were one-time charges. Operating cash flow still came in at $12.087 billion, with FCF conversion guided above 80%. Bulls argue the impairments reflect aggressive portfolio cleanup rather than core business deterioration.
PepsiCo Price Prediction 2026-2030 The 24/7 Wall St. price target stands at $170.18 with 90% model confidence. Q1 delivered +8.5% revenue growth and a 210 bp margin expansion, yet shares trade closer to the 52-week low than the high.
The setup looks constructive for a low-beta compounder with a 4% yield and a clear path to $180 by 2027. The thesis weakens if Fed hawkishness continues penalizing dividend payers through the back half of 2026.
Here is where our model projects PEP could trade, assuming current growth trajectories and margin recovery hold.
Year 24/7 Wall St. Price Target 2026 $156 2027 $180 2028 $202 2029 $224 2030 $247 These projections assume PEP continues executing the productivity and innovation strategy Laguarta outlined, with the World Cup activation and poppi integration supporting beverage growth.
Significant upside or downside could result from sustained commodity inflation, faster-than-expected GLP-1 impacts on snack volumes, or larger buyback execution against the new $10 billion authorization.
The S&P 500 (^GSPC +0.21%) has delivered solid gains over the past year, but not every blue chip stock has participated in the rally. Many dividend-paying consumer giants are trading 30% or more below their 52-week highs, setting up smart entry points for income-focused investors.
Three stocks stand out as compelling opportunities right now. You probably interacted with at least one of these companies before breakfast this morning. Maybe you brushed your teeth after a glass of Tropicana orange juice, or grabbed a bag of Doritos for the road, or swung by Walmart for coffee creamer.
These brands are so embedded in our daily lives that it's easy to forget they're publicly traded companies with stock prices that actually move -- and wealth-building dividend policies.
Image source: Getty Images.
As of June 22, spirits titan Diageo (DEO +0.17%), snack-and-beverage leader PepsiCo (PEP +0.48%), and retail behemoth Walmart (WMT +0.35%) are all trading between 13% and 32% below their 52-week highs.
Each company owns a portfolio of brands that have generated cash for decades, and each continues to reward shareholders with growing dividend payments. With all three trading at significant discounts to recent highs, long-term investors have a chance to lock in above-average yields on some of the most durable businesses in the consumer sector.
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Diageo: Premium spirits at a discount If you've ever ordered a Johnnie Walker at an airport bar, toasted with Don Julio at a wedding, or grabbed a Guinness on St. Patrick's Day, you've contributed to Diageo's bottom line. The British spirits giant owns more than 200 brands spanning whiskey, tequila, vodka, gin, and beer. Its products sit behind practically every bar on Earth.
Consumers have been nursing their drinks lately. Net income fell 39% to $2.35 billion in fiscal year 2025, while free cash flow dropped from $4.6 billion to $2.7 billion. Wall Street noticed, and Diageo's stock has dropped 32% from last August's 52-week high.
Diageo doesn't boast the multidecade dividend growth streaks of American consumer staples giants, but the current yield is well covered by free cash flow. The falling stock price results in richer dividend yields, currently 4.2%.
At 12x forward earnings, the market is pricing in a Diageo hangover that won't last indefinitely. Diageo's 60% gross margin and business model built on aging inventory that appreciates over time (literally, in the case of premium whiskey) mean its cash generation should recover as consumer spending normalizes.
People have been raising glasses of Johnnie Walker and Guinness for generations; that's unlikely to change.
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PepsiCo: The Dividend King of snacks PepsiCo is named after a cola but makes most of its money from chips.
The Frito-Lay snack empire (Doritos, Lay's, Cheetos, Tostitos) delivers roughly 60% of the company's operating profit. The beverage side adds household names like Pepsi, Mountain Dew, Gatorade, and Tropicana. Together, these brands stock pantries and vending machines worldwide.
The stock is down 18% from its 52-week high, which seems harsh for a company that just extended its dividend growth streak to 54 consecutive years. PepsiCo is a Dividend King, a rare title reserved for companies with at least 50 years of unbroken annual payout boosts.
The business isn't exactly humming, as consumers around the world are pinching their snack-buying pennies. Still, PepsiCo keeps delivering reasonable growth even in a downturn. Revenue grew 2% last year. Free cash flow rose 7%. The 4.2% yield matches Diageo's and ranks among the highest PepsiCo has ever offered.
To be fair, the payout ratio is tight. PepsiCo sends nearly all its free cash flow to shareholders, leaving little room for more increases powered directly by cash flow. But PepsiCo has a long history of finding extra cash for its dividends in any economy. The 15.5x forward earnings suggest the market is pricing in stagnation. That skepticism looks overdone.
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Walmart: Raising dividends since Nixon Walmart is the world's largest retailer, operating more than 10,500 stores across 19 countries. The company generated $713 billion in revenue last year. That's more than the gross domestic product (GDP) of wealthy countries such as Sweden, Belgium, and Argentina. Revenue grew 5%. Net income rose 13%. Free cash flow jumped 18%. The business is firing on all cylinders, driven by a surprising amount of e-commerce and technical know-how.
The 0.9% dividend yield won't turn heads, but the growth rate might. Walmart has raised its payout for 53 consecutive years, joining PepsiCo in the exclusive Dividend Kings club. Walmart's free cash flow doubles the dividend payout budget.
The stock is down 13% from its 52-week high. For a retailer that has thrived through recessions, the rise of e-commerce, and a global pandemic, that discount looks like an opportunity. For investors willing to trade a lower starting yield for decades of reliable growth, Walmart belongs in the conversation.
Tech capex and geopolitics have dominated the headlines this year, but opportunities emerge elsewhere. Dividend growth investing could be hitting its stride amid shifting macro and micro trends. Novel, forward-looking strategies may help asset allocators find alpha beyond traditional income approaches.
Most retirees treat cruise fares like an occasional splurge funded from cash on hand or a withdrawal from the portfolio. There is another way to frame the same expense: build an income stream that quietly pays for two trips every year, leaving the principal untouched.
Three Budgets, Four Yields The core equation is the same across every scenario. Annual cost divided by yield equals the capital required. Two mainstream cruises for a couple often cost in the neighborhood of $6,000, assuming inside or ocean-view cabins, limited onboard spending, and either driving to the departure port or finding inexpensive airfare. Two premium sailings with balcony cabins, specialty dining, shore excursions, and round-trip flights to the embarkation city often land closer to $12,000. Two luxury itineraries with suite accommodations, extensive excursions, pre-cruise hotel stays, and upgraded airfare can easily reach $20,000 or more annually.
Annual Budget 3.5% Yield 5% Yield 7% Yield 10% Yield $6,000 (mainstream) $171,000 $120,000 $86,000 $60,000 $12,000 (premium) $343,000 $240,000 $171,000 $120,000 $20,000 (luxury) $571,000 $400,000 $286,000 $200,000 A $12,000 premium budget translates to $1,000 per month of needed income. At the conservative end, a couple needs roughly $343,000 working. At the aggressive end, $120,000 is enough, with caveats covered below.
Vacation Income Versus Vacation Savings Saving separately for each cruise means watching a sinking fund, timing the booking around market levels, and second-guessing the trip when the account dips. A portfolio that produces the budget every year removes that anxiety. Bookings come from incoming dividends, not from sold shares. Realty Income (NYSE:O | O Price Prediction), nicknamed the Monthly Dividend Company, has paid 670 consecutive monthly dividends and currently distributes about $0.27 per share each month. Monthly cash maps cleanly to deposit schedules and excursion balances.
Why Slow-Growing Income Often Wins Portfolio A starts at a 3.5% yield with dividend growth around 7% a year, a rate consistent with the long-term experience of many established dividend-growth companies. Portfolio B starts at a 10% yield with no growth. Both fund $12,000 of cruises today. After ten years, Portfolio A throws off about $23,600, enough for two premium cruises plus a third shorter sailing. After twenty years, the same shares pay $46,400. Portfolio B still pays $12,000, only now $12,000 buys less.
Cruise Fares Do Not Stand Still Cruise fares rarely stay flat for long. Port fees rise, airfare fluctuates, and shore excursions tend to get more expensive over time. A retirement that lasts thirty years needs growing income, which is why a lower-yielding company with consistent dividend growth can eventually fund far more travel than a higher-yield investment whose payout never increases.
Names Doing the Work Today Johnson & Johnson (NYSE:JNJ) yields about 2.2% with 64 consecutive years of increases. The growth rate does the heavy lifting here, with the starting yield mattering less over time. PepsiCo (NASDAQ:PEP) yields roughly 3.9% after raising its dividend to $1.48 per quarter in June. Realty Income pays a 5.2% yield in monthly slices, aligning with travel deposits. Altria (NYSE:MO) yields close to 5.9% with a $1.06 quarterly payout, anchoring the higher-yield sleeve. Preferred shares, business development companies, and investment-grade bond funds round out the 6% to 10% sleeve, while the 30-year Treasury near 5% sits below most equity income choices. When Spending Principal Is the Right Call Income preservation is not the universal answer. The goal is not to die with the largest possible portfolio. The goal is to use wealth to create the life you actually want. A couple who keeps postponing desired trips, settling for shorter itineraries, or booking less comfortable cabins despite having more than enough assets may be sacrificing experiences they can never get back. In some cases, spending principal to take the cruise now, upgrade the cabin, or travel while health and mobility are still strong is the rational choice. The same logic applies to retirees whose portfolios are likely to outlast them by a wide margin. Money that is never spent cannot create memories, and the value of travel often declines faster than the account balance.
Three Steps Before Your Next Booking Price the actual two cruises you want to take next year, including airfare and excursions, before sizing the portfolio. Compare a ten-year total return projection for a 3.5% dividend grower against a flat 10% payer using your own brokerage tools. If retirement is within five years, model the tax bite on each income tier at your bracket, since qualified dividends, REIT distributions, and bond interest are taxed differently.
Partnership offers immersive career exploration and mentorship experiences in hotels across six U.S. cities
Hilton’s largest‑ever charitable Points donation of 250 Million Hilton Honors Points will create transformative travel experiences for youth
MCLEAN, Va.--(BUSINESS WIRE)--Hilton has long believed travel can do more than take someone somewhere new: it can expand perspectives, build confidence and open doors to new experiences, opportunities and connections. For many young people, a first trip or new travel experience can change not only how they see the world, but how they see themselves in it. To help create more of those possibilities, Hilton and the Hilton Global Foundation today announced a new nationwide partnership with Big Brothers Big Sisters of America (BBBSA) designed to provide young people access to mentorship, exposure to career paths in hospitality and transformative travel experiences.
At Hilton, we know hospitality is a powerful engine for opportunity; a first step on the career ladder helps open doors to meaningful careers, economic mobility and life-changing success.
Share The partnership will include immersive career exploration and mentorship experiences for Big Brothers Big Sisters’ youth participants, or Littles, across Hilton properties in the U.S. In addition, Hilton will be donating its largest-ever charitable Points donation: 250 million Hilton Honors Points to BBBSA. Grounded in the belief that opportunity expands what’s possible, the donation is equivalent to more than 3,000 standard room nights and will go towards creating transformative travel experiences for Big Brothers Big Sisters’ Littles and their families across the country – giving them opportunities to visit iconic Hilton properties, experience new places, gain new perspectives and imagine new possibilities.
“At Hilton, we know hospitality is a powerful engine for opportunity; a first step on the career ladder helps open doors to meaningful careers, economic mobility and life-changing success,” said Katherine Lugar, executive vice president, corporate affairs, Hilton and president, Hilton Global Foundation. “Through this partnership with Big Brothers Big Sisters of America, our team members will help young people see what’s possible through hospitality – connecting them with mentors, real-world career exposure and the tools and travel experiences to build confidence and strengthen their skills – inspiring and expanding their horizons along the way.”
Closing the Opportunity Gap
An estimated 4.3 million young people ages 16-24 in the United States are neither in school nor working*, representing an opportunity gap that can limit their potential and future success. Through this partnership, Hilton and BBBSA aim to help close that gap by combining the power of mentorship with Hilton’s Travel with Purpose commitment to expand access to career growth opportunities. Over the next year, the partnership will create more than 10,000 mentoring moments across six U.S. markets, helping young people build confidence, see new possibilities and imagine opportunities they may not have thought possible. The announcement marks the beginning of a scalable model designed to expand nationwide and deepen impact for young people and communities over time.
Beginning in the 2026–2027 school year, Big Brothers Big Sisters’ participants ages 16-25 will engage in a structured development experience across Hilton properties and corporate locations designed to build mentorship relationships, strengthen professional skills and provide immersive career exposure. Littles from local middle and high schools will be paired with Hilton team members within six markets in the United States, including Anaheim, Calif.; Atlanta, Ga.; Dallas, Texas; Columbus, Ohio; Miami, Fla.; and Washington, D.C. to participate in:
Monthly on-property mentoring with Hilton team members who will provide guidance, encouragement and real-world perspective to Littles Curated skill-building experiences focused on workplace readiness, communication and professional growth “For 120 years, Big Brothers Big Sisters has seen the impact when a positive adult empowers a young person and opens doors they never knew existed,” said Artis Stevens, president and CEO, Big Brothers Big Sisters of America. “Hilton shares our belief that every young person deserves the chance to realize their potential, and through our partnership, we're meeting them where they are and connecting them to meaningful careers by providing career exposure, skills training and onramps to meaningful employment."
Supporting America’s Legacy of Opportunity
America’s legacy has long been defined by the promise that opportunity can lead to progress. Fittingly timed to America’s 250th anniversary, Hilton’s donation of 250 million Hilton Honors Points to BBBSA will encourage young people around the country to explore the potential of hospitality careers.
For many, a first job at Hilton becomes the start of something much bigger: a pathway to growth, leadership and a brighter future. Opportunity comes to life every day at Hilton properties across the country: Nearly two-thirds (63%) of leadership roles are filled by people who started with the company, with U.S. team members stepping into first-time management roles in an average of four years. Reflecting Hilton’s lower-than-industry-average turnover rate, nearly one-third (32%) of U.S. team members have built careers lasting more than a decade. By investing in people, Hilton is strengthening the pathway from an opportunity to a career and is partnering with BBBSA to expand access to opportunities for young people – helping to ensure the American dream remains reachable and growing for the next generation.
Hospitality as a Force for Good Around the World
As the No. 1 World’s Best Workplace, with more than 500,000 team members and 9,200 properties across 144 countries and territories, Hilton is also leveraging its global scale to help bridge the opportunity divide, serving as the ladder of opportunity for thousands. Since 2022, Hilton has created 3.1 million career development opportunities around the world through nonprofit partners focused on hospitality skill-development and access to careers across the industry.
Through the Hilton Global Foundation and Hilton UK Foundation, Hilton partners with dozens of nonprofit organizations around the world that share a belief in the power of mentorship, career exposure and skill-development to create pathways to meaningful careers in hospitality. These partnerships include D.C. Central Kitchen and Big Brothers Big Sisters of America in the United States, STREETS International in Vietnam, and Springboard in the United Kingdom – all working to expand access to opportunity to help people build confidence, achieve economic independence and thrive. Together with these partners, Hilton is advancing its founding purpose to spread the light and warmth of hospitality, opening doors to opportunity and demonstrating how hospitality can be a powerful force for good.
For more information about Big Brothers Big Sisters or to volunteer, visit bbbs.org. To learn more about Hilton’s efforts to open doors of opportunity visit stories.hilton.com/opportunity.
*Source: The American Community Survey (ACS), U.S. Census Bureau
NEW YORK, June 22, 2026 (GLOBE NEWSWIRE) -- RéVive Skincare, a science-driven luxury skincare brand founded by plastic and reconstructive surgeon Dr. Gregory Brown, today announced a new collaboration with Kathy Hilton, who will feature the brand's Fermitif Neck Renewal Cream SPF 15 Sunscreen in sponsored Instagram content on June 17.
The collaboration comes ahead of Amazon Prime Day, where the Fermitif Neck Renewal Cream SPF 15 Sunscreen will be available at 50% off from June 23–26. The timing gives consumers a chance to experience one of RéVive's signature products while exploring the research-driven philosophy behind the brand.
The announcement also follows a collaborative Instagram post with Julianne Moore ahead of the Met Gala, spotlighting RéVive Renewal Rescue Elixir Oil as part of her skin preparation and bringing added attention to another of the brand’s signature products.
"As a plastic surgeon, I know it is possible to recreate a youthful appearance with surgery. However, lasting beauty comes from supporting the skin's natural ability to renew itself," said Dr. Gregory Brown, Founder and Chief Scientist of RéVive. "That philosophy remains at the heart of RéVive's mission to give new life to skin through science-driven innovation."
Known for her longstanding influence in fashion, beauty, and lifestyle, Kathy Hilton has built a reputation for embracing products that combine quality, innovation, and timeless appeal. For her upcoming collaboration with RéVive, Kathy Hilton selected the Fermitif Neck Renewal Cream SPF 15 Sunscreen, one of the brand's signature treatments for the neck and décolleté.
"If you know anything about me, I am a skincare and makeup junkie," said Kathy Hilton. "When it comes to neck cream, this RéVive neck cream, I will tell you that you will see the difference. It is the best neck cream. There is not another one out there like this."
The neck is often one of the first areas to show visible signs of aging, including dryness, loss of firmness, and the appearance of lines. To address these concerns, RéVive developed the Fermitif Neck Renewal Cream using the brand's signature Bio-Renewal Technology, inspired by breakthrough EGF research into how skin naturally renews itself. The formula combines RéVive's signature peptides with botanical ingredients to help skin feel more hydrated and appear firmer, smoother, and better defined over time.
The formula also includes SPF 15 broad-spectrum protection to help defend against everyday UV exposure, an important consideration for an area that is often exposed but frequently neglected in daily sun care routines.
According to brand-sponsored clinical evaluations, participants reported a 77% improvement in skin moisture, a 68% improvement in firmness, and a 56% reduction in the appearance of lines after regular use.
Bringing Skin Renewal to More Consumers This Prime Day
For nearly three decades, RéVive has remained committed to advancing the science of skin renewal while helping consumers take a long-term approach to skincare. The philosophy is reflected in the brand's enduring mission: Give New Life To Skin.
From June 23–26, consumers can enjoy 50% savings on the RéVive Fermitif Neck Renewal Cream SPF 15 Sunscreen through the RéVive Amazon Store. Kathy Hilton also encouraged consumers to take advantage of the event, inviting them to "shop the event from June 23–26 and experience the transformation yourself."
From June 23–26, consumers can take advantage of the 50% Prime Day savings through the RéVive Amazon Store.
ABOUT RÉVIVE SKINCARE
In the 1980s, North American plastic and reconstructive surgeon Dr. Gregory Brown was inspired by Nobel Prize–recognized research on cellular renewal. He became one of the first to apply advanced bioactive ingredients to anti-aging skincare, transforming scientific discovery into a cream designed to support visible skin renewal.
In 1997, RéVive was founded. Rooted in Dr. Brown’s medical background, the brand was built on one principle: skincare should be guided by science. Every formula is developed with disciplined research standards to help skin look healthier, smoother, and more youthful over time.
In 2026, RéVive entered a new era of innovation. By advancing Nobel Prize–inspired ingredients through RVGF Technology, the brand enhanced the precision and stability of the three unique peptides. The result is a targeted skincare approach designed to support Cosmetic Procedure Alternative, Cosmetic Procedure Deferral, and Cosmetic Procedure Synergy—offering refined, science-led solutions for modern skin longevity.
For more information, visit ReViveSkincare.com and the Amazon store.
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Contact Person: Judy Collins
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FAIRFAX, Va. and ANNAPOLIS, Md., June 23, 2026 (GLOBE NEWSWIRE) -- Crestline Hotels & Resorts, LLC, today announced the completion of an extensive refresh and renovation of the Hilton Garden Inn Annapolis. Guests are welcomed into a reimagined lobby complete with new furnishings, wall coverings, carpeting, artwork, and a 65-inch large screen TV. The Garden Grille & Bar has been updated with new furniture perfect for a hot cooked-to-order breakfast or unwinding later in the day with a craft cocktail and locally inspired menu. For a quick grab-and-go snack or sundries, The Shop has been redesigned and is open 24-7.
Each of the hotel’s 126 guestrooms are refitted with new furnishings, including stylish couches, chairs, lighting, carpeting, wall coverings, soft goods, artwork, and microwaves. Bathroom updates include new lighting, vanities, and bathtub refinishing. All corridors and elevators have been recarpeted and updated. The 1,450 square feet of meeting and event space features new 55-inch TVs, blackout drapes, and fresh paint and carpeting. For recreation, the Fitness Center has new equipment, a water station, a 50-inch TV, and towel storage. Outside, guests will find new patio furnishings and lighting, as well as pool updates, including new chaise lounges and amenities.
Hilton Garden Inn Annapolis is located at 305 Harry S. Truman Parkway, Annapolis, MD, just off U.S. Route 50. The hotel is nine miles from the Annapolis Mall and is within walking distance of many area restaurants. It is 30 miles from Washington, D.C., six miles from the United States Naval Academy, a 15-minute drive to historic downtown Annapolis, and 30 minutes from Baltimore/Washington International Airport (BWI). For more information visit the Hilton Garden Inn Annapolis or 410-266-9006.
More About Crestline Hotels & Resorts, LLC
Crestline Hotels & Resorts LLC is one of the nation’s largest independent hospitality management companies. Founded in 2000, the company presently manages 109 hotels, resorts, and conference centers with nearly 15,500 rooms in 23 states and the District of Columbia. Crestline manages properties under such well-regarded brands as Marriott, Hilton, Hyatt, IHG, and Choice as well as independent, private label hotels and conference centers throughout the United States. For more information, visit: www.crestlinehotels.com.
Important Notice:
The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “anticipate,” “believe,” and “intend” indicate a forward-looking statement; however, not all forward-looking statements include these words.
Media Contact:
Gayle MacIntyre
Global Ink Communications [email protected]
404.643.8222
June 24, 2026 09:00 ET | Source: Strata Critical Medical, Inc
Network of experienced transplant surgeons in key markets will immediately become available to all Strata customersAdds significant scale to Transplant Clinical, Strata’s fastest growing business line, with a similar, rapid growth trajectory$21.5 million acquisition completed at mid-single-digit multiple of Adjusted EBITDA, pre-synergy, consistent with Strata’s capital deployment strategy NEW YORK, June 24, 2026 (GLOBE NEWSWIRE) -- Strata Critical Medical, Inc. (Nasdaq: SRTA, “Strata” or the “Company”), today announced that it has completed the acquisition of Heart and Lung Transplant National Recovery Program (“HLT-NRP”), a provider of transplant surgical recovery services in the United States.
“HLT-NRP strengthens our organ recovery platform by significantly increasing our network of experienced transplant surgeons available to complete recoveries across the country adding clinical depth and geographic reach in key markets such as Florida and California,” said Will Heyburn, Co-CEO of Strata.
“This added scale will result in better service to the transplant community through improved surgeon availability closer to the donor hospital, enhancing responsiveness and continuity of care while reducing unnecessary travel and associated costs,” said Melissa Tomkiel, Co-CEO of Strata.
“I’m thrilled to join the Strata team for the long-term as we enter the next phase of accelerating growth for our company,“ said Dr. Samuel Jacob. “Combining with Strata allows us to efficiently expand access to our experienced transplant recovery surgeons while preserving the clinical standards and relationships that have defined HLT-NRP. The combined organization is well positioned to support the increasing complexity of contemporary transplantation and continue delivering value to transplant programs across the country.”
“We are doubling-down on our fastest-growing Transplant Clinical business line, which also drives significant demand for our logistics services,” said Mat Schneider, CFO of Strata’s Clinical business line. “The attractive, mid-single-digit pre-synergy Adjusted EBITDA multiple is consistent with our capital allocation framework and, looking ahead, we expect our combined growth and operational synergies will quickly lower our effective purchase price and maximize returns.”
The transaction value of $21.5 million consists of approximately 80% cash and 20% stock, which will be released from a multi-year lockup based on the Seller’s continued participation in the business. For the full year 2026, HLT-NRP is expected to generate revenue and Adjusted EBITDA(1) of approximately $10.0 million and $3.1 million, respectively.
(1) We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
About Strata Critical Medical, Inc.
Strata is a time-critical logistics and medical services provider to the U.S. healthcare industry. We operate one of the nation’s largest air transport and surgical services networks for transplant hospitals and organ procurement organizations, offering an integrated “one call” solution for donor organ recovery.
Strata’s core services include air and ground logistics, surgical organ recovery, organ placement and normothermic regional perfusion for the transplant industry, as well as perfusion staffing and equipment solutions for cardiovascular surgery centers, offered under the Trinity Medical Solutions and Keystone Perfusion brands.
For more information, visit https://stratacritical.com/.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", “anticipate”, “believe”, “could”, “continue”, “expect", “estimate”, “may”, “plan”, “outlook”, “future”, "target", and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Strata’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning the integration of HLT-NRP and its impact, Strata’s future plans and business strategies, financial and operating performance (including the discussion of HLT-NRP’s performance for 2026 and beyond), results of operations, and industry environment and growth opportunities. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.
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Key Takeaways PayPal expanded Venmo P2P payments to hundreds of millions of users across 90 markets. Venmo TPV rose 14% year over year in Q1 2026, with its share of PayPal TPV increasing to 19%. Pay with Venmo grew 34% year over year as deeper merchant integration supports monetization. PayPal’s (PYPL - Free Report) Venmo is evolving from a peer-to-peer payments app into a meaningful revenue driver for PYPL. While peer-to-peer (P2P) transfers remain a core part of the platform, its future growth is increasingly driven by monetized products such as the Venmo Debit Card and Pay with Venmo. This strengthens Venmo's contribution to PayPal's broader consumer ecosystem.
In March 2026, Venmo announced a major expansion, extending its P2P payment experience to users worldwide. Venmo users can now send and receive money to and from hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.
The results suggest that these initiatives are translating into stronger payment activity. Venmo’s total payment volume (TPV) increased 14% year over year in the first quarter of 2026, marking its sixth consecutive quarter of double-digit growth. Its share of PayPal's TPV expanded to 19% from 18% a year earlier. Pay with Venmo also remained a standout performer, growing 34% year over year and continuing to gain market share against competing payment methods.
For PayPal, Venmo has become more than a consumer engagement platform. The company is integrating Venmo more deeply into its merchant ecosystem. This enables consumers to pay with Venmo across a growing number of merchant checkouts and strengthens PayPal’s two-sided network of consumers and merchants.
If PayPal continues expanding the adoption of Pay with Venmo, the Venmo Debit Card and merchant checkout, Venmo could become a significantly larger revenue driver over time. With sustained double-digit payment growth and improving monetization, the platform appears well-positioned to support PayPal's long-term strategy of profitable, diversified growth.
How Are Block and Apple Faring in the Payments Space?Block (XYZ - Free Report) offers Cash App, a digital wallet, to consumers for P2P payments and investing. Management continues to expand Cash App beyond peer-to-peer transfers through products such as the Cash App Card, direct deposit, borrowing and integrated investing, increasing customer engagement and monetization. In first-quarter 2026, Cash App gross profit grew 38% year over year to $1.91 billion.
Apple (AAPL - Free Report) continues to broaden the utility of its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay, making the iPhone an increasingly important platform for both consumers and merchants. As payment adoption grows, these services help strengthen customer loyalty, support Services revenue growth and reinforce the value of Apple's broader hardware and software ecosystem.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 2.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.91X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 17.28X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions remain unchanged. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30 over the past two months.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Five sources told Fortune that the corporate venture arm, which was founded in 2016, will be winding down operations. A company spokesperson confirmed the news to TechCrunch, albeit with a nuanced statement:
“As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture arm,” the spokesperson said in an email.
PayPal Ventures has made more than 80 investments, including the crypto trading platform Talos Global, fintech infrastructure company Plaid, and the crypto bank Anchorage Digital. It has raised $850 million across three funds.
PayPal Ventures still exists on paper and has a few employees supporting its portfolio of startups. However, it has paused new investment activity — at least for now.
The decision follows the departure of PayPal CEO Alex Chriss, who was replaced by Enrique Lores in February. The board said Chriss had failed to keep pace with industry changes and did not meet its expectations. Ironically, the end of PayPal Ventures could mean the company falls further behind. The venture arm gave PayPal a front-row seat to emerging fintech innovation; without it, the company risks losing visibility into startups shaping the future of financial services and falling behind competitors that maintain strategic venture arms.
Lores took the helm with the mission to restructure things, and he has done so, with more cuts and layoffs expected to continue throughout the next few years, Fortune reported. The outlet also said that PayPal is exploring secondary sales to offload some of its venture holdings and has hired Jefferies to help with that task. Lores said in the company’s first-quarter earnings call last month that it needed to “recommit to the fundamentals,” which included “becoming a technology company again.”
It’s clear the company wants to reposition itself in the ecosystem — particularly around AI — which means this may not be the final chapter for corporate venture investing at PayPal.
The PayPal Venture news also comes after the company reached a settlement in May with the Justice Department over the creation of an investment program back in 2020 that targeted Black and minority-owned businesses. Under the settlement, PayPal agreed to waive processing fees for $1 billion of transactions – a value of about $30 million, according to the DOJ. PayPal was also sued in January 2025 by an investor who claimed she was excluded from the investment program because she was Asian. That case looks to be headed toward trial, according to court documents.
This article has been updated to include more information about the portfolio and to clarify that new investments have been paused.
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Dominic-Madori Davis is a senior venture capital and startup reporter at TechCrunch. She is based in New York City.
You can contact or verify outreach from Dominic by emailing [email protected] or via encrypted message at +1 646 831-7565 on Signal.
PayPal Holdings Inc. (NYSE:PYPL) is closing down PayPal Ventures, its decade-old corporate investing group.
The unit's staffing has dwindled to just two people, down from more than 10 late last year. PayPal has also been weighing secondary-market sales of some venture stakes and brought in Jefferies to advise on possible deals, according to Fortune.
"As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture capital arm, PayPal Ventures,” a PayPal spokesperson told the publication without sharing additional details.
The pullback from corporate venture investing comes after leadership changes earlier this year. Former CEO Alex Chriss left in February, and PayPal named Enrique Lores, previously HP's chief executive, to take over.
The venture portfolio also swung to a positive earnings contribution in late 2025, adding 10 cents to PayPal's $1.53 in fourth-quarter earnings per share after reducing EPS by 4 cents in 2024, Fortune noted.
PayPal also announced broad cost reductions in May and has been targeting staff cuts totaling 20% over the next two to three years.
On a May earnings call, Lores said PayPal needed to speed up "AI adoption" and "recommit to the fundamentals," while another executive said the company is aiming for at least $1.5 billion in savings over the next two to three years.
PayPal Ventures was created in 2016, a year after PayPal separated from eBay, and it has invested directly from the company's balance sheet. Across three funds, it has backed more than 80 startups with total commitments topping $850 million.
Some of the better-known investments include fintech infrastructure company Plaid and crypto bank Anchorage Digital. The company's exits include Bill.com's acquisition of Divvy in 2021.
Photo: Michael Vi / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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PayPal is “exploring strategic options” for its venture capital arm, a company spokesperson told Fortune in a report posted Tuesday (June 16). “As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture capital arm, PayPal Ventures,” the spokesperson said, per the report.
Key Takeaways PayPal's branded checkout TPV grew 2% currency neutral in Q1 2026, up from 1% in the prior quarter.PYPL posted 8% currency-neutral TPV growth and 5% currency-neutral revenue growth in Q1 2026.PayPal is investing in checkout and sees U.S. improvement, while Europe remains softer. PayPal Holdings’ (PYPL - Free Report) branded checkout recovery is becoming one of the most important questions for PYPL investors. In the first quarter of 2026, online branded checkout total payment volume (TPV) grew 2% on a currency-neutral basis, improving from 1% in the prior quarter. While that is not a full turnaround yet, it signals that PayPal’s core checkout business may be stabilizing.
The company’s broader results provide some support for the recovery effort. TPV reached roughly $464 billion, up 8% on a currency-neutral basis, while revenues increased 5% currency neutral. PayPal also reported stronger Venmo and enterprise payment growth, showing that demand across the platform remains healthy even as branded checkout moves more slowly.
Management is trying to reaccelerate checkout through better execution. The new operating model places Checkout Solutions & PayPal under a clearer structure, combining consumer and merchant efforts. PayPal is also investing in checkout experience, merchant presentment, consumer selection, rewards and loyalty, especially around top merchants where conversion can matter most.
The challenge is that the recovery is uneven. Management noted improvement in the United States, but Europe remains softer, with pressure in markets such as the U.K. and slower growth in Germany. Macro softness, travel weakness, local competition and PayPal’s own execution gaps all appear to be weighing on momentum.
Branded TPV can reaccelerate, but likely gradually. PayPal’s trusted brand, large two-sided network, Venmo integration, BNPL strength and merchant reach remain real advantages. However, investors should watch if 2% growth becomes a trend, Europe stabilizes and checkout investments improve selection and repeat usage without creating too much margin pressure.
How Are Block and Adyen Competing?Block (XYZ - Free Report) , through Square and Cash App ecosystems, remains a significant competitor to PayPal in digital payments and merchant services. The company benefits from a large merchant base, integrated commerce solutions and growing consumer engagement. If PayPal’s branded checkout recovery remains gradual, Block could continue strengthening its competitive position among merchants seeking streamlined payment experiences.
Adyen (ADYEY - Free Report) is another key competitor benefiting from its global enterprise payments platform and strong relationships with large merchants. The company continues to expand internationally while emphasizing payment optimization and seamless checkout experiences. If PayPal’s branded checkout softness in Europe persists, Adyen could be well-positioned to capture additional payment volume from enterprise merchants.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 5.2% in the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.69X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 16.90X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions remain unchanged. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30 over the past two months.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoFi (SOFI +4.05%) and PayPal (PYPL +1.37%) are two of the most widely followed fintech stocks in the entire market, and both have been beaten down. SoFi has fallen by more than 45% from its 52-week high, despite reporting revenue growth of more than 40% in the latest quarter. PayPal has declined by 47% from its recent peak and is a staggering 86% below its 2021 all-time high, despite strong profitability.
In this article, I'll take a side-by-side look at both of these beaten-down fintech stocks, discuss why each one has been under pressure and the opportunities ahead, and give my honest take on which is the better investment opportunity right now.
SoFi: Incredible momentum, but Wall Street isn't convinced SoFi's business has been firing on all cylinders for a long time, and it shows no signs of slowing down. In the first quarter, SoFi reported 41% year-over-year revenue growth, 35% growth in members to 14.7 million, and rapidly growing earnings per share.
Image source: Getty Images.
Perhaps most significantly, SoFi's cross-buy rate has steadily increased from 36% to 43% over the past year. This is the percentage of new products (such as checking accounts or credit cards) opened by existing customers, and it is significant for two main reasons. First, it's much cheaper for SoFi to sell a product to an existing customer than to acquire a new one. Second, the more products each of its members has with the bank, the deeper the relationships SoFi has with its customers, creating a "stickier" member base.
In addition, SoFi recently launched the first stablecoin issued by a nationally chartered bank, a development that's definitely worth monitoring.
Of course, SoFi isn't exactly down for no reason. The company kept its full-year guidance steady despite a massive first-quarter earnings beat. Elevated interest rates could hurt demand for loan products. And, the bank completed a dilutive $1.5 billion equity raise earlier this year, despite having no clear need to do so.
SoFi still isn't a cheap stock by most metrics, but it looks far more attractive than it did at the beginning of the year. In fact, with shares trading at 2.04 times book value, SoFi is significantly cheaper than mega-bank JPMorgan Chase (JPM 0.59%), which trades for 2.6 times book -- and certainly isn't growing revenue at a 41% rate.
PayPal is in transition -- again PayPal's stock is beaten down for a pretty clear reason. Its growth has been anemic (1% adjusted EPS growth in the first quarter), and the company recently replaced its CEO after several years of slow progress. The stock trades for less than eight times earnings right now, so it's essentially priced for no growth.
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However, there are some reasons to be optimistic about it. For one thing, the company is doing a solid job of growing its Venmo platform, where the most untapped monetization opportunities arguably lie. Total payment volume on Venmo grew 14% year-over-year in the first quarter, and features like "Pay With Venmo" gained impressive traction.
Second, it's important to emphasize just how profitable PayPal's business is. The company generates about $7 billion in annual free cash flow, and with new CEO Enrique Lores targeting $1.5 billion in cost savings over the next 2-3 years, it could get even more profitable, even with sluggish revenue growth. Plus, PayPal is buying back its own stock hand-over-fist, indicating that management believes the stock is undervalued.
Finally, if PayPal can successfully return its platform to growth, embrace AI opportunities (a big focus for Lores), and keep PayPal's branded checkout as the leading platform, the current price could end up being ridiculously cheap. But those are all big "ifs."
Which is the better buy now? To be clear, I own both of these stocks in my portfolio, and I think there are compelling reasons to buy both at their current valuations. In my view, SoFi is a misunderstood company actively disrupting a largely outdated industry, while PayPal is a mature payments leader struggling to find its next growth lever.
Both of these stocks could regain their recent highs under the right circumstances. I'd give SoFi the edge when it comes to the better comeback story, mainly because the stock is beaten down for reasons that have little to do with its own business results, but on the other hand, PayPal is certainly a high-quality business to be able to buy for less than eight times earnings.
LONDON, June 23, 2026 (GLOBE NEWSWIRE) -- Commerce (Nasdaq: CMRC), a data-centric provider of an open, AI-driven commerce ecosystem that enables businesses to unlock data, power intelligent discovery and deliver personalised experiences at scale, and PayPal today released new research revealing strong consumer interest in agentic shopping experiences alongside a clear demand for safeguards that keep consumers in control of purchases.
The study, conducted by Logica Research, surveyed 1,000 online shoppers across the United Kingdom, as well as a further 2,000 across the US and Australia, to better understand consumer attitudes toward agentic shopping tools — AI-powered assistants that can research products, compare options and make purchases on a shopper’s behalf. While 64% of UK consumers say they are interested in trying agentic shopping tools, many remain hesitant to give AI full autonomy over purchasing decisions.
The findings suggest that while consumers are increasingly comfortable with AI playing a role in commerce, widespread adoption of agentic shopping will depend on merchants, technology providers and payment companies building experiences that prioritise trust, transparency and security.
Agentic shopping as a gateway to savings and promotions
The research reveals that just 21% of UK shoppers are already using AI tools to help with their online shopping today. However, 70% want AI tools to help with their online shopping in the future. The leading reason is to make it easier to find the retailer with the best price (31%), followed by making it easier to find every promotion and discount (28%) and alerting them if a product has a better price elsewhere (23%).
Of consumers who don’t currently use AI for shopping, 62% say they plan to try AI-powered shopping tools within the next year.
Barriers to the agentic era
While agentic AI tools are being embraced at the discovery and comparison stages, there are concerns about AI purchasing a product without the shopper’s approval (43%), bank account security breaches (39%), purchasing the wrong product (32%) and privacy violations or personal data breaches (29%).
Consumers have high expectations for AI shopping tools, with 83% stating they would expect AI shopping tools to offer payment security that is as good as, or better than, existing methods.
When it comes to who consumers would trust to provide safe agentic shopping tools, trust was balanced between tech companies such Google and Apple, online payment providers such as PayPal, marketplaces such as Amazon and Etsy and traditional payment providers such as Visa and Mastercard.
Accuracy and transparency also arose as concerns UK shoppers have in relation to AI shopping tools. Among non-users of AI shopping tools, one in five question the accuracy of the information the tools provide. Meanwhile, over half (55%) of consumers state it is important that sponsored content and ads are clearly identifiable and 46% believe brands and retailers shouldn’t be able to pay to be given preference by AI shopping tools.
“The report reveals that UK shoppers see the potential for agentic commerce to help them compare products, identify cost savings, and find available discounts,” said Andrew Norman, GM EMEA at Commerce. “Retailers have a prime opportunity, provided they can build trust and transparency into the experience. This means creating shopping journeys that help consumers make informed purchasing decisions while retaining control over the checkout process and ensuring the recommendations they receive are accurate, transparent and reliable. Get those fundamentals right, and agentic commerce can provide significant value for retailers and consumers alike.”
Access the complete report and detailed survey results at: https://www.bigcommerce.co.uk/resources/reports/agentic-ai-shopping-research-cdl-report/.
Methodology
The Agentic AI Shopping Research report is based on an online survey conducted by Logica Research in March and April 2026. The study surveyed 1,000 online shoppers in each of the United States, United Kingdom and Australia, for a total of 3,000 respondents. To qualify, participants had to be 18 years or older and have made at least one online purchase in the previous month.
About Commerce
Commerce (Nasdaq: CMRC) empowers businesses to innovate, grow, and thrive by providing an open, AI-driven commerce ecosystem. As the parent company of BigCommerce, Feedonomics, and Makeswift, Commerce connects the tools and systems that power growth, enabling businesses to unlock the full potential of their data, deliver seamless and personalized experiences across every channel, and adapt swiftly to an ever-changing market. Trusted by leading businesses like Coldwater Creek, Cole Haan, Dell, Harvey Nichols, King Arthur Baking Co., Mizuno, Pacsun, Perry Ellis, Skechers, SportsShoes and Uplift Desk, Commerce delivers the storefront control, optimized data, and AI-ready tools businesses need to grow, serve diverse buyers, and operate with confidence in an increasingly intelligent, multi-surface world. For more information, visit www.commerce.com or follow us on X and LinkedIn.
In the latest close session, Paypal (PYPL - Free Report) was down 1.51% at $41.70. This move lagged the S&P 500's daily loss of 1.44%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%.
The technology platform and digital payments company's stock has dropped by 4.27% in the past month, falling short of the Business Services sector's loss of 2.49% and the S&P 500's gain of 0.08%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is forecasted to report an EPS of $1.28, showcasing a 8.57% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.5 billion, indicating a 2.58% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.3 per share and a revenue of $34.26 billion, indicating changes of -0.19% and +3.29%, respectively, from the former year.
Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Paypal boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 7.99. This indicates a discount in contrast to its industry's Forward P/E of 10.41.
We can also see that PYPL currently has a PEG ratio of 1.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PYPL's industry had an average PEG ratio of 0.74 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Are you looking for the steady compounding of a global payments giant or the potential value turnaround of a digital pioneer? Deciding between Mastercard (MA +0.10%) and PayPal (PYPL +1.37%) depends on your personal strategy.
Mastercard operates the essential infrastructure behind billions of credit and debit transactions, while PayPal provides a popular digital wallet and merchant platform. Both companies dominate their respective corners of the payment world, but face very different growth trajectories. This comparison examines their financial health, risk factors, and current valuations to determine which is the better buy today.
The case for MastercardMastercard operates a global payments network that connects financial institutions, merchants, and consumers in more than 210 countries. Among fintech stocks, the company is shifting toward integrating stablecoin and on-chain settlement capabilities to support regulated digital assets across blockchain networks. It manages extensive relationships with global digital entities and governments while expanding its ecosystem through technology integrations like Mastercard Agent Pay.
Financial performance remains robust as the company benefits from the ongoing shift toward digital payments. In 2025, revenue reached nearly $33 billion, representing approximately 16% growth over the previous year. This revenue supported a net income of nearly $15 billion, resulting in a high net margin of roughly 45%.
The company’s financial position is characterized by significant cash generation. As of Dec. 31, 2025, the debt-to-equity ratio is 2.5x, indicating that total debt exceeds shareholder equity. The current ratio is 1.0x, which measures how well the company can cover short-term obligations with liquid assets. Free cash flow for the year was approximately $17 billion, representing cash from operations minus capital expenditures.
The case for PayPalPayPal serves as a two-sided network for 439 million active accounts, enabling consumers and merchants to manage money across online and in-person channels. The company relies on a broad network of merchants and depends on partnerships with independent financial institutions for its credit and financing business. Currently, the platform is integrating more deeply with third-party digital wallets and building its own stablecoin ecosystem, known as PYUSD.
Revenue growth has been more moderate recently as the company navigates a transition in leadership and operational strategy. In 2025, total revenue reached $33 billion, indicating approximately 4% growth over the prior period. Net income for the year was roughly $5 billion, resulting in a net margin of close to 16%.
As for financial health, the company maintains a conservative capital structure. As of Dec. 31, 2025, the debt-to-equity ratio of 0.5x indicates that total debt is about half the value of shareholder equity. The current ratio is 1.3x, which measures the company's ability to meet its upcoming financial commitments using short-term assets. Free cash flow reached approximately $5.6 billion for the fiscal year, providing capital for reinvestment or share repurchases.
Risk profile comparisonMastercard faces ongoing legal and regulatory scrutiny regarding interchange fees and its no-surcharge rules. Despite preliminary judicial approval of a $38 billion swipe-fee settlement in June 2026, the company continues to defend its business practices against legislative and merchant challenges. It also faces intense competition from traditional networks like Visa and government-backed digital infrastructure. Furthermore, reliance on artificial intelligence (AI) and massive proprietary data sets carries risks of data governance issues and potential regulatory penalties for misuse.
PayPal remains subject to significant market pressure and interest from activist investors following past management transitions. The company faces complex oversight across multiple markets concerning money transmission and the implementation of the GENIUS Act regarding stablecoins. It must compete for wallet share against tech giants like Apple while managing the credit risk of consumer and merchant loans. Any failure of a partner financial institution or service outage could lead to significant financial and reputational damage.
Valuation comparisonPayPal trades at a significant discount relative to Mastercard, based on its price relative to future earnings estimates.
MetricMastercardPayPalSector BenchmarkForward P/E24.9x8.0x17.2xP/S ratio13.2x1.1xSector benchmark uses the SPDR XLF sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Investors may be tempted to buy PayPal for its cheaper valuation, but sometimes you get what you pay for. PayPal has struggled to regain double-digit revenue growth in recent years, and the intensifying competition in the fintech market doesn’t provide investors with a clear growth trajectory.
Mastercard’s higher valuation reflects a more formidable competitive moat. While consumers have multiple digital wallet options, there are only a few dominant credit card brands, and consumers love using their credit cards. The company has maintained consistent double-digit revenue growth, reflecting its brand strength and execution.
If there’s one stat to indicate Mastercard’s strength, it’s this: Over the last five years, the number of locations accepting Mastercard payments has grown nearly 70%. There are hundreds of millions of acceptance locations worldwide.
PayPal’s new CEO, Enrique Lores, faces a great challenge in turning the business around. Management blames years of underinvestment in technology and not doing enough to serve its customers. It won’t be easy to correct this and catch up to competitors that have raced ahead.
Mastercard is the safer choice right now. Its competitive position appears more solid, which is reflected by steadier and higher rates of top-line growth in recent years.
In the latest trading session, Novavax (NVAX - Free Report) closed at $9.13, marking a -3.89% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Prior to today's trading, shares of the vaccine maker had gained 2.48% lagged the Medical sector's gain of 3.16% and outpaced the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of Novavax in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.36, reflecting a 158.06% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $49.81 million, indicating a 79.18% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.19 per share and revenue of $371.85 million, which would represent changes of -107.36% and -66.9%, respectively, from the prior year.
Any recent changes to analyst estimates for Novavax should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.72% increase. Currently, Novavax is carrying a Zacks Rank of #3 (Hold).
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Novavax (NVAX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this vaccine maker have returned -2.3% over the past month versus the Zacks S&P 500 composite's +0.1% change. The Zacks Medical - Biomedical and Genetics industry, to which Novavax belongs, has gained 0.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Novavax is expected to post a loss of $0.36 per share, indicating a change of -158.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of -$0.19 for the current fiscal year indicates a year-over-year change of -107.4%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.26 indicates a change of -40.5% from what Novavax is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Novavax.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Novavax, the consensus sales estimate of $50.04 million for the current quarter points to a year-over-year change of -79.1%. The $371.85 million and $297.74 million estimates for the current and next fiscal years indicate changes of -66.9% and -19.9%, respectively.
Last Reported Results and Surprise HistoryNovavax reported revenues of $139.51 million in the last reported quarter, representing a year-over-year change of -79.1%. EPS of -$0.06 for the same period compares with $2.93 a year ago.
Compared to the Zacks Consensus Estimate of $69.51 million, the reported revenues represent a surprise of +100.7%. The EPS surprise was +76%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Novavax is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Novavax. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
RALEIGH, N.C., June 24, 2026 (GLOBE NEWSWIRE) -- Shah Capital, the largest shareholder of Novavax, today commented on yesterday’s announced voting results from Novavax’s June 18th 2026 Annual Meeting of Stockholders.
While the resolutions were ultimately passed, Shah Capital believes the results demonstrate an EXCEPTIONAL level of Shareholder Dissatisfaction with Novavax’s performance and its leadership. Even with external proxy advisors “For Recommendation,” nearly half of votes cast opposed the Company’s executive compensation package, an extraordinary rebuke of a compensation structure that shareholders clearly do not believe is aligned with performance or value creation. Significant opposition was also registered against the re-election of three Board nominees, with approximately 38% to 41% of votes cast against each of the Class I directors standing for re-election – an unprecedented opposition!
Commenting on the AGM results Shah Capital Founder and CIO, Himanshu Shah, has stated: “Today’s vote is truly a WAKE-UP call for Novavax’s leadership. Shareholders are clearly infuriated by a leadership team that has overseen chronic operational shortcomings, weak execution, excessive administrative/consulting costs and the destruction of shareholder value. There is no justification for a top-heavy management structure and an oversized Board at a company that should be focused on consistent profitability and restoring credibility with investors. Novavax has superior vaccine science and extraordinarily valuable pipeline assets, but its leadership must act with urgency to deliver real change.”
Shah Capital believes today’s vote is fully consistent with its repeated warnings and calls for change at Novavax including reduced board size with enhanced accountability, a more pragmatic business strategy including lower cost base and buying back its extremely undervalued shares immediately.
Shah Capital:
Shah Capital is a global investment firm founded in 2005 and headquartered in Raleigh, North Carolina. Led by Founder and Chief Investment Officer, Himanshu Shah, the firm employs a focused investment philosophy and a disciplined approach to investing in public companies with opportunities for growth, turnaround and transformation. Shah Capital seeks to support companies with strong underlying assets and fundamentals where operational, strategic or governance improvements can help unlock long term shareholder value.
The Qualcomm logo is seen on one of its many buildings in San Diego, California, U.S., November 2, 2016. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
CompaniesJune 22 (Reuters) - Qualcomm (QCOM.O), opens new tab is in advanced discussions to acquire Modular Inc in a transaction valuing the AI chip company at about $4 billion, Bloomberg News reported on Monday, citing people familiar with the matter.
If completed, the deal would mark a significant step-up from the $1.6 billion valuation Modular secured in a funding round just nine months ago.
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A global supplier of smartphone chips, Qualcomm has been working to reduce its reliance on the volatile handset market by branching out into fast-growing areas like data center processors and autonomous vehicle chips.
Here are a few details:
A deal could be announced in the coming weeks, though talks could still fall through or the details could change, Bloomberg said.
Qualcomm did not immediately respond when contacted by Reuters, while Modular could not be reached for comment.
Founded in 2022, Modular has raised a total of $380 million to date, including a $250 million in a funding round in September.
In a separate deal, Qualcomm is in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion, The Information reported last week.
Reporting by Juby Babu in Mexico City; Editing by Vijay Kishore
Our Standards: The Thomson Reuters Trust Principles., opens new tab
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $221.49, marking a -2.05% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Heading into today, shares of the chipmaker had lost 5.06% over the past month, lagging the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's earnings per share (EPS) are projected to be $2.21, reflecting a 20.22% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.7 billion, indicating a 6.46% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.77 per share and a revenue of $42.72 billion, representing changes of -10.47% and -3.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Qualcomm currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 21. This valuation marks a discount compared to its industry average Forward P/E of 53.67.
Investors should also note that QCOM has a PEG ratio of 20.79 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Qualcomm Inc (NASDAQ:QCOM) is down 6.9% in premarket trading at $206.63, after Bloomberg reported the semiconductor giant is in advanced talks to acquire AI software infrastructure company Modular in a deal valued at roughly $4 billion. The news arrives amid broad weakness in the chip sector, with technology stocks under pressure as a global selloff in AI-related names weighs on sentiment.
Today's projected drop could pull the stock further away from its May 29 record high of $259.92. The shares have been volatile since that peak, shedding nearly 12% so far this month. Even so, QCOM remains up 29.7% in 2026 and 46.6% higher over the past 12 months.
BofA Global Research doled out a price-target hike to $195 from $165 this morning, but Wall Street remains cautious. Of the 33 analysts in coverage, 20 carry a "hold" rating, compared to just 11 "buy" or "strong buy" recommendations and two sells.
Options traders have been considerably more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), Qualcomm's 50-day call/put volume ratio of 4.04 ranks higher than 91% of readings from the past year.
Qualcomm Inc. QCOM shares moved lower on Tuesday, falling about 6% in trading as a broader technology selloff weighed on sentiment, even as fresh reports pointed to an expansion of its artificial intelligence ambitions.
The decline came despite Bloomberg reporting that Qualcomm is in advanced talks to acquire AI infrastructure software company Modular Inc. in a deal valued at around $4 billion.
A transaction could be announced in the coming weeks, though sources emphasized that a final agreement is not guaranteed and terms could still change.
Qualcomm stock has been one of the stronger performers in the semiconductor space in recent months, rising 72% over the past three months and gaining around 30% year to date.
Investors have been positioning ahead of the company’s investor day on Wednesday, where Qualcomm is expected to provide updates on its next-generation processor strategy and potentially identify a major customer for a custom data-center chip.
Modular Inc., founded in 2022 in Silicon Valley by Chris Lattner and Tim Davis, former Google employees, focuses on building software tools designed to simplify the deployment of artificial intelligence models across different hardware systems and cloud environments.
According to its website, the founders created the company after becoming “frustrated by AI’s fragmented infrastructure.”
The startup has positioned itself in a growing segment of the AI market focused on inferencing and cross-platform deployment, an area increasingly seen as critical as AI workloads expand beyond training into real-world applications.
Modular raised $250 million in a September funding round at a $1.6 billion valuation, bringing total capital raised to $380 million.
The reported acquisition price of roughly $4 billion would represent more than a 2.5-times increase in valuation in less than two years.
The company is backed by investors including DFJ Growth, Factory, General Catalyst, Google Ventures, Greylock Partners and US Innovative Technology Fund.
The Modular discussions are part of a wider acquisition strategy aimed at strengthening Qualcomm’s position in artificial intelligence.
The Information in a seperate report said that the company is in talks to acquire AI chip startup Tenstorrent for between $8 billion and $10 billion.
If completed, the two deals would reflect a dual-track AI expansion strategy: hardware capabilities through Tenstorrent and software infrastructure through Modular.
Qualcomm has previously pursued similar expansion efforts through acquisitions, including its agreement to buy Alphawave IP Group Plc for about $2.4 billion in cash.
Its earlier attempt to acquire NXP Semiconductors NV was ultimately scrapped due to regulatory hurdles.
The company is expected to use its upcoming investor day to provide further details on its AI roadmap, including custom chip development and potential major customer relationships.
Despite the acquisition momentum, Qualcomm shares remain under pressure in the near term amid a broader tech sector downturn.
Bank of America Securities analyst Vivek Arya maintains an Underperform rating on Qualcomm stock and raised the price target from $165 to $195.
The Analyst TakeawaysWith Qualcomm set to unveil new AI efforts at its AI-focused Investor Day, Arya questions if the company is too late to become an entrant in the crowded market.
The analyst expects Qualcomm to share details on its AI opportunity, roadmap and engagements, as well as provide details on diversification efforts away from handsets.
"We expect a near-term ($2 billion-$5 billion by FY27/28E) and a longer-term addressable opportunity," Arya said.
The analyst said the goal of the Investor Day could be to show that Qualcomm can get the majority of its revenue from non-smartphone segments such as data centers, AI, automotive and the internet of things.
"We believe Qualcomm is re-entering a fast-growing but hyper-competitive AI market full of large incumbents."
Arya says that Qualcomm’s recent stock rally also puts pressure on shares with some estimates for data center future success likely already basked into the price.
The analyst estimates $10 billion in data center/AI sales for calendar year 2028, but says this may already be priced in.
"We also expect QCOM to address recent media reports about potential M&A to expand its data center footprint."
Qualcomm Stock Price ActionQualcomm stock is down 8.50% to $203.04 on Tuesday versus a 52-week trading range of $121.99 to $259.92. Qualcomm stock is up 18.1% year-to-date in 2026 and up 33% over the last 52 weeks.
Photo by Michael Vi via Shutterstock
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Qualcomm QCOM is in advanced discussions to acquire AI chip startup Modular Inc. at a valuation of approximately $4 billion, according to Bloomberg, citing people familiar with the matter. The deal would represent a significant step-up from the $1.6 billion valuation Modular secured in a funding round just nine months ago. Neither Qualcomm nor Modular confirmed the discussions. Qualcomm shares fell 5.16% in premarket.
Modular was founded in 2022, and has raised a total of $380 million, including a $250 million round in September 2025. The acquisition would advance Qualcomm's strategy of reducing its dependence on the smartphone chip market by expanding into data center processors and AI infrastructure. Qualcomm is also in talks to acquire AI chip startup Tenstorrent for between $8 billion and $10 billion.
A deal could be announced in the coming weeks, though Bloomberg noted talks could still fall through or terms could change. If both acquisitions close, Qualcomm would add two AI chip startups in rapid succession at a combined valuation of up to $14 billion.
The Technology Letter's Tiernan Ray says investors are finally taking profits on AI memory stocks like Micron (MU), SanDisk (SNDK), Western Digital (WDC), and Seagate (STX) among others after parabolic runs. He doesn't believe the trading action is problematic and instead sees investors rebalancing portfolios to find the next big tech trade.
The semiconductor market is experiencing a tectonic shift, and legacy hardware designers are scrambling to secure a seat at the artificial intelligence table.
Qualcomm Today
$197.03 -7.10 (-3.48%)
As of 09:45 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$121.99▼
$259.92Dividend Yield1.87%
P/E Ratio21.21
Price Target$191.90
Many investors are closely tracking Qualcomm Incorporated NASDAQ: QCOM as the company engineers a massive pivot away from cyclical consumer electronics. For decades, Qualcomm built a global empire on mobile smartphone processors, but an aging upgrade cycle demands a new growth engine.
Qualcomm is combining internal product development with targeted acquisitions to penetrate the hyperscale data center ecosystem. By pursuing alternative neural architectures, the firm is positioning itself as a potential low-power, high-efficiency alternative to current AI inference market leaders.
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The broader market clearly recognizes the value of this pivot, pushing Qualcomm's stock price up around 30% since the start of 2026. The immediate narrative centers on a massive acquisition target that could further accelerate the balance of power in enterprise computing.
Bypassing the Dealer: Qualcomm Could Drop $10B on RISC-VA major catalyst driving institutional interest is that Qualcomm is reportedly in talks to acquire AI processor startup Tenstorrent.
Reportedly valued at a $8 billion to $10 billion, this prospective deal would represent a steep premium over Tenstorrent's previous $3.2 billion valuation, reflecting the extreme scarcity of top-tier silicon architecture talent in today's market.
Tenstorrent is led by Jim Keller, a legendary silicon architect whose track record spans fundamental processor designs at nearly every major technology conglomerate over the past two decades.
More importantly, Tenstorrent builds hardware on RISC-V, an open-standard instruction set architecture. This is a highly strategic distinction that investors need to understand. Historically, mobile processors have relied heavily on proprietary ARM architecture, subjecting manufacturers to rigid licensing fees and strict design constraints. Integrating Tenstorrent's RISC-V technology could give Qualcomm more architectural flexibility and reduce reliance on proprietary CPU licensing in certain future products, though it would not eliminate external dependencies across the broader hardware stack.
This maneuver would build on Qualcomm's under-the-radar December 2025 buyout of Ventana Micro Systems. Combining Ventana's high-performance server chiplets with Tenstorrent's neural accelerators would complete a proprietary, non-ARM hardware stack. Instead of retrofitting low-power mobile chips for heavy enterprise workloads, Qualcomm is developing a purpose-built architecture specifically designed to handle intensive data center operations.
Cashing in the Chips: Dragonfly Enters the Server RoomSecuring the underlying architecture is only half the battle; deploying hardware effectively in enterprise environments requires a dedicated server platform. At the recent COMPUTEX summit, Qualcomm officially unveiled Dragonfly as a dedicated brand for data center artificial intelligence inference chips.
To fully grasp the market opportunity here, investors must differentiate between training and inference. Training requires massive clusters of graphics processing units that consume vast amounts of electricity to build large language models. Inference is the actual daily application of those models, which includes answering user prompts, executing automated tasks, and processing real-time data streams. Crucially, inference runs continuously.
Hyperscale data centers are currently facing severe power envelope and liquid-cooling constraints. Facilities simply cannot draw enough electricity off the local power grid to run power-hungry training hardware for basic inference tasks. Dragonfly targets this exact physical bottleneck. Positioned heavily for agentic workloads, where models autonomously execute complex, multi-step workflows without constant human prompting, Dragonfly prioritizes power efficiency above all else.
By pairing the Dragonfly server platform with Tenstorrent's specialized hardware accelerators, Qualcomm aims to offer hyperscalers a gigawatt-saving alternative. If physical server rack space and local electricity availability become the primary limiting factors for scaling generative networks, low-power inference hardware provides a distinct, highly defensible competitive moat.
A Royal Flush: Qualcomm's Bulletproof Balance SheetThe financial metrics firmly support this aggressive expansion phase. Qualcomm shares are currently trading around $220, reflecting a steady year-to-date climb. While Qualcomm recently experienced a 25% technical pullback from peak levels, giving up some decade-high valuation multiples, underlying profitability remains strong. Qualcomm generated $9.20 in trailing 12-month earnings per share (EPS), boasting net margins of 22.31% and an impressive 42.11% return on equity.
Qualcomm Incorporated (QCOM) Price Chart for Wednesday, June, 24, 2026
Legacy markets are undeniably contracting. Core handset revenue declined 13% year over year in the second quarter of fiscal 2026, pressured by inflation in memory components and suppressed production volumes in key Asian markets. The diversification strategy is already bearing fruit, offsetting these headwinds. The company's automotive revenue surged 38% year over year, surpassing a $5 billion annualized run rate.
Wall Street is actively adjusting financial models to account for the shifting revenue base. JPMorgan analysts recently placed Qualcomm on a Positive Catalyst Watch, raising the price target to $265. Their aggressive modeling projects Qualcomm data center revenue scaling rapidly, hitting $3 billion by fiscal 2027 and accelerating to $35 billion by fiscal 2031.
The River Card: Securing Your Stake in QualcommQualcomm is signaling immense balance sheet confidence ahead of these capital-intensive integrations. The board of directors recently raised the quarterly dividend to 92 cents per share.
This dividend hike operates concurrently with a massive $20 billion share repurchase program authorized in March 2026. This buyback program allows Qualcomm to retire up to 14.5% of outstanding stock, providing a strong structural floor during broader market rotations.
Institutional focus is squarely fixed on the upcoming June 24 Investor Day. Markets anticipate detailed roadmaps outlining the potential Tenstorrent integration, the broader Dragonfly rollout, and updated margin guidance.
Transitioning from a cyclical handset supplier to a foundational enterprise infrastructure provider carries execution risks, particularly when challenging entrenched industry incumbents. The strategic pivot aligns perfectly with the most pressing pain point in the global technology sector: the need for affordable, energy-efficient computing power.
Investors seeking exposure to the next phase of the digital infrastructure buildout may want to add Qualcomm to their watchlists as it builds out a new data center footprint and executes an aggressive acquisition strategy.
Should You Invest $1,000 in Qualcomm Right Now?Before you consider Qualcomm, you'll want to hear this.
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Visitors stand at the Qualcomm kiosk at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 18, 2026. REUTERS/Bhawika Chhabra Purchase Licensing Rights, opens new tab
June 24 (Reuters) - Qualcomm (QCOM.O), opens new tab is in talks to provide chip-design services to China's ByteDance, four people familiar with the matter said, as the U.S. company seeks to reduce dependence on the smartphone market, its biggest revenue source.
If successful, the negotiations would make ByteDance, the parent of short-video platform TikTok, an early customer of Qualcomm's chip-design services operation. Qualcomm is the world's largest supplier of smartphone modem chips, which manage cellular communications.
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The talks also show that U.S. tech firms remain keen to do business with China, even as growing friction between Washington and Beijing over AI chips has impacted the likes of Nvidia (NVDA.O), opens new tab, AMD (AMD.O), opens new tab, Applied Materials (AMAT.O), opens new tab and Lam Research (LRCX.O), opens new tab.
Qualcomm is discussing designing custom chips for ByteDance, according to three of the sources. The chips would be based in part on technology owned by AlphaWave Semi, a high-speed connectivity specialist Qualcomm acquired last year, two of the sources said.
While the discussions are underway, the outcome remains uncertain, three sources said. It was not clear whether the talks would lead to a finished chip design and manufacturing, and ByteDance could pursue different partners, they said.
Other details about the chip were not immediately clear. One of the sources said the discussion involves the designing of video processing units (VPUs), with an eye toward starting mass production by the end of the year.
Reuters reported earlier that ByteDance is developing an AI chip for inference tasks and custom central processing units (CPUs).
Qualcomm and ByteDance did not respond to requests for comment. The sources spoke on condition of anonymity because the discussions are private.
A deal with ByteDance would be a significant win for Qualcomm, which has faced uncertainty from smartphone makers this year due to a surge in memory-chip prices. Global smartphone shipments are likely to show the steepest annual contraction on record this year.
Qualcomm is working to break into the booming data center chip market and working with customers on three kinds of chips: CPUs, accelerators for inference, and custom chips called ASICs, a fast-growing market for rivals such as Broadcom (AVGO.O), opens new tab and Marvell (MRVL.O), opens new tab.
Reporting by Max A. Cherney, Fanny Potkin, Wen-Yee Lee and Liam Mo; Editing by Miyoung Kim and David Dolan
Our Standards: The Thomson Reuters Trust Principles., opens new tab
– Modular’s AI-Native Platform to Advance Qualcomm’s Evolution as a Developer-First, AI Solutions Company Delivering Generative and Agentic AI from Edge to Cloud –
– Creation of an Industry-Friendly Open Software Ecosystem to Scale AI Across Diverse Compute Environments –
NEW YORK--(BUSINESS WIRE)--Qualcomm Incorporated (NASDAQ: QCOM):
Highlights:
Combines an AI-native software platform, and the world-class team behind it, with Qualcomm Technologies silicon leadership to accelerate adoption of its edge-to-cloud AI platforms by developers, OEMs, ODMs, cloud service providers and model creators. Further enables Qualcomm Technologies to deliver a silicon-agnostic compute layer across devices, edge and data centers, improving performance-per-watt, increasing hardware flexibility, and expanding an open developer ecosystem so customers can deploy AI more efficiently across heterogeneous platforms globally. Expands data center opportunity and enables optimal day-zero performance on new Qualcomm Technologies AI hardware, positioning the company to drive the global expansion of data center and edge AI compute. Qualcomm Incorporated (NASDAQ: QCOM), a connected computing leader at the center of the AI era, today announced that it has reached an agreement to acquire Modular Inc, strengthening Qualcomm Technologies, Inc.’s software foundation for generative and agentic AI across data center and edge environments.
As AI scales, efficiency, not capability, becomes a constraint. Performance-per-watt drives the cost of inference, and cost determines what scales. Meeting this demand requires more than hardware. Developers need software that connects system-level optimization with heterogeneous, disaggregated compute, turning silicon performance into reliable and efficient AI services across accelerators, environments, and use cases.
Modular provides an open, AI-native software stack that enables AI to run efficiently across hardware architectures. Built by engineers who helped create much of today’s AI infrastructure, Modular’s unified platform runs models with industry-leading performance across CPU, GPU, NPU, and custom ASIC architectures without re-writes for each accelerator. For developers and enterprises, that means building once, deploying across any environment with lower total cost of ownership. Modular is supported by an open, industry-friendly, vendor-neutral developer community committed to improving the portability and efficiency of AI infrastructure.
The acquisition is expected to strengthen Qualcomm Technologies' ability to deliver a more optimized AI compute layer across a broad range of platforms and use cases. It deepens the software foundation for Qualcomm Technologies' data center strategy, supporting more efficient inference, orchestration, and deployment in distributed AI systems, while strengthening relationships with model creators, developers, hyperscalers, and enterprises.
By combining Qualcomm Technologies silicon leadership with Modular’s software expertise, Qualcomm Technologies will be well positioned to help customers move AI into production from device to cloud, with systems that are faster, more efficient, and easier to scale.
“This acquisition marks a pivotal moment not just for Qualcomm, but for the AI industry,” said Cristiano Amon, President and CEO, Qualcomm Incorporated. “As agentic AI scales across data centers and edge environments, the industry is moving toward disaggregated, multi-vendor architectures that demand a more open and modern software foundation. We believe the future belongs to developer-friendly, horizontal platforms that can run across diverse compute environments and give customers real choice in how and where they deploy AI. With Modular, we’re accelerating that shift, combining our scale and energy-efficient data center technologies with an open ecosystem approach to help drive the next chapter of AI.”
“Modular was founded on the belief that AI needs a more open and efficient software foundation that can span diverse hardware and deployment environments,” said Chris Lattner, Co-founder and CEO, Modular. “Joining Qualcomm gives us the scale and platform reach to accelerate that mission. Together, we can make AI development more accessible and performant for developers, strengthen portability across hardware, and help grow an open ecosystem that broadens participation and speeds innovation. We are excited to continue advancing our software platform as part of Qualcomm’s broader strategy from edge to cloud.”
The transaction is expected to close in the second half of 2026, subject to customary closing conditions and applicable regulatory approvals.
About Qualcomm
Qualcomm is a global computing leader at the center of the AI era, enabling intelligence to scale from the most personal devices to large‑scale infrastructure. Building on more than four decades of innovation, we develop platforms and solutions that bring together advanced AI, high‑performance, low power computing and industry‑leading connectivity—powering products and services used around the world. At Qualcomm, we are engineering human progress.
Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering and research and development functions and substantially all of our products and services businesses, including our QCT semiconductor business. Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patents are licensed by Qualcomm Incorporated. Qualcomm, Snapdragon, Qualcomm Dragonwing and Qualcomm Dragonfly are trademarks or registered trademarks of Qualcomm Incorporated.
About Modular
Modular is an AI software infrastructure company building a unified compute platform that makes AI development and deployment more open, efficient, and accessible. Its software tools and modular technologies let developers write once and run anywhere, simplifying how they build, optimize, and run AI across diverse hardware and environments, from data center to edge. That same modularity gives customers independence from any single hardware vendor, helping them adopt AI faster, reduce integration overhead, and scale as their needs evolve, making the platform increasingly relevant in a fast-growing market.
Visitors stand at the Qualcomm kiosk at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 18, 2026. REUTERS/Bhawika Chhabra Purchase Licensing Rights, opens new tab
CompaniesJune 24 (Reuters) - Qualcomm (QCOM.O), opens new tab said on Wednesday it would buy AI startup Modular in an all-stock deal valued at nearly $4 billion, gaining access to software that runs AI models across chips without having to write code for each processor.
Buying Modular pits Qualcomm against CUDA, the software platform that has helped underpin Nvidia's (NVDA.O), opens new tab AI dominance by tying millions of developers to the $5 trillion company's chips.
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As part of the deal, Qualcomm expects to issue up to 19.2 million shares of its common stock to Modular's equity holders.
The transaction is valued at $3.92 billion, according to a Reuters calculation based on Qualcomm's last closing price.
Qualcomm has been seeking a larger foothold in the data-center market as demand for generative AI surges, and is already targeting the market with processors for data centers and other AI chips with shipments planned by the end of the year.
Modular's software is primarily used to run, or "infer", AI models, a market that has emerged as the latest battleground for chipmakers as Nvidia looks to ward off competitors that are selling custom chips developed for in-house use.
The startup has positioned itself as a neutral software layer for AI computing, supporting chips from Nvidia, AMD and other vendors.
"We believe the future belongs to developer-friendly, horizontal platforms that can run across diverse compute environments and give customers real choice in how and where they deploy AI," Qualcomm CEO Cristiano Amon said.
The deal, expected to close in the second half of this year, comes as Qualcomm pushes deeper into AI and data-center markets to reduce its reliance on smartphone chips, which generate the bulk of its revenue.
As part of its efforts to branch out, the smartphone chipmaker is also in talks to buy AI chip startup Tenstorrent for $8 billion to $10 billion, The Information reported last week.
Reporting by Anhata Rooprai and Harshita Mary Varghese in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Qualcomm agreed to acquire the AI software company Modular for about $3.9 billion, in a bid to make artificial intelligence faster and cheaper for its customers.
Stephen Sopko says the market "is priced for perfection" on memory chip stocks due to surging demand, including Micron (MU), which reports earnings after Wednesday's close. He explains how the demand curve plays into how the company and its peers expand historically conservative earnings outlooks.
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Goldman Sachs initiated Twilio (NYSE:TWLO | TWLO Price Prediction) at Buy with a $300 price target, pointing to margin upside as the core of its constructive thesis on the cloud communications platform.
Seaport is holding its ground on a contrarian Sell call for Nvidia (NASDAQ:NVDA), arguing that the financing dynamics underpinning the AI buildout are becoming increasingly strained.
Wells Fargo lifted Invitation Homes (NYSE:INVH) to Overweight from Equal Weight, calling it one of its top residential picks heading into second-quarter earnings and citing a better-than-feared spring leasing season, new investment opportunities from the ROAD to Housing Act, and completed share repurchases that set the stage for a guidance raise.
UBS raised its price target on Advanced Micro Devices (NASDAQ:AMD) to $670 from $470, maintaining its Buy rating and flagging growing traction for standalone CPU racks as a reason for added conviction on the name.
Here’s a look at where things stand as of pre-morning trading:
The Nasdaq Composite is attempting to shake off yesterday’s bruising session. Tech stocks are bouncing in early trading with Nasdaq 100 futures tacking on 0.4% as investors look to put some distance between themselves and yesterday’s 2.21% decline. S&P 500 futures are up 0.2% while Dow futures are holding near the flatline.
Memory chips are leading the premarket recovery, with Micron Technology (NASDAQ:MU) climbing around 4% and SanDisk (NASDAQ:SNDK) adding nearly 3%, both clawing back a portion of Tuesday’s 13% collapse. The Roundhill Memory ETF is up 3% after shedding 14% the prior session. Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM) are each recovering more than 1% after losing 6% and 8% respectively on Tuesday.
The session’s defining event arrives after the closing bell, when Micron reports its latest quarterly results.
Here’s how the broader indices are shaping up in pre-market trading:
Dow Jones Futures: 52,063 Down 0.04%
Nasdaq 100 Futures: 29,777 Up 0.36%
S&P 500 Futures: 7,451 0.19%
Market Movers Gold is extending its recent retreat, with spot prices dropping more than 3% to $3,978.79 per ounce, slipping back below the $4,000 threshold as the risk-off trade that briefly drove the metal higher shows signs of unwinding.
OpenAI and Broadcom (NASDAQ:AVGO) unveiled OpenAI’s first custom AI chip Wednesday, a purpose-built inference accelerator for large language models called Jalapeño. Designed from concept to manufacturing tape-out in just nine months, OpenAI believes the development cycle represents the fastest ASIC build ever achieved in high-performance advanced semiconductors, a milestone that signals the ChatGPT maker is serious about reducing its dependence on third-party silicon.
JPMorgan is dialing back its oil price outlook, cutting its Brent crude forecast for the second half of 2026 on weaker inventory draws and softer demand than the bank had previously modeled. JPMorgan now sees Brent averaging $86 per barrel in the third quarter, $80 in the fourth, and finishing 2026 around $78. The bank also flagged the possibility that excess supply could force production cuts in early 2027, adding a cautionary note to an energy market that has already pulled back sharply from its conflict-driven highs.
Qualcomm on Wednesday said it's buying infrastructure startup Modular to boost its artificial intelligence software capabilities amid the data center buildout.
The deal will better position Qualcomm in the inference market and help companies run AI more efficiently.
"We believe the future belongs to developer-friendly, horizontal platforms that can run across diverse compute environments and give customers real choice in how and where they deploy AI," said Qualcomm CEO Cristiano Amon in a release.
The deal is expected to close in the second half of 2026.
Qualcomm didn't provide the financials of the deal. Bloomberg reported early this week that Qualcomm and Modular were in advanced talks for a deal valued at nearly $4 billion.
Reuters calculations valued the acquisition at $3.92 billion.
Businesses are on the hunt for ways to optimize AI use as token costs skyrocket, hampering enterprise budgets.
At the same time, Qualcomm is looking to expand its position in the data center market as AI's skyrocketing growth spikes demand for infrastructure capable of processing large swaths of data.
The company is holding an investor day on Wednesday.
Tune in at 3:30 p.m. ET as Qualcomm CEO Cristiano Amon joins CNBC TV to talk about the acquisition and other news from the company's investor day. Watch in real time on CNBC+ or the CNBC Pro stream.
watch now
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CAMBRIDGE, MA / ACCESS Newswire / June 17, 2026 / Moderna, Inc. (Nasdaq:MRNA) today announced that it will host its Investor Event - Science Day at 9:00am ET on Thursday, June 25, 2026.
The event will feature an overview of Moderna's research and early development programs, highlighting how the Company's mRNA platform, together with advances in AI and robotics, is accelerating innovation and creating opportunities to expand into new therapeutic areas.
A live webcast of the presentation will be available under "Events and Presentations" in the Investors section of the Moderna website at investors.modernatx.com.
A replay of the webcast will be archived on Moderna's website for at least 30 days following the presentation.
About Moderna
Moderna is a pioneer and leader in the field of mRNA medicine. Through the advancement of its technology platform, Moderna is reimagining how medicines are made to transform how we treat and prevent diseases. Since its founding, Moderna's mRNA platform has enabled the development of vaccines and therapeutics across infectious diseases, cancer, rare diseases and more.
With a global team and a unique culture, driven by the company's values and mindsets, Moderna's mission is to deliver the greatest possible impact to people through mRNA medicines. For more information about Moderna, please visit modernatx.com and connect with us on X, Facebook, Instagram, YouTube and LinkedIn.
Investors:
Lavina Talukdar
Senior Vice President & Head of Investor Relations
617-209-5834 [email protected]
FDA Advisory Committee To Review Moderna Flu Vaccine ApplicationThe company submitted an application in December 2025 for mFlusiva (mRNA-1010), an mRNA-based trivalent influenza vaccine.
The VRBPAC panel’s vote will focus on the risk-benefit profile of mFlusiva for influenza prevention in adults aged 50 to 64 years, and in the 65-year-and-older population.
The briefing document released on Tuesday identified no major deficiencies.
The primary efficacy analysis demonstrated that mRNA-1010 (TIV) met all prespecified sequential success criteria—noninferiority, superiority, and super-superiority—relative to the standard-dose (SD) comparator.
Questions Around Comparator Choice And Clinical DataThe VRBPAC members will consider whether the standard-dose flu vaccine used as the control was the most appropriate comparator. High-dose, recombinant, and adjuvanted flu vaccines are generally preferred for adults 65 and older.
FDA Decision Timeline And Proposed Approval StrategyFollowing a Type A meeting, the FDA assigned a Prescription Drug User Fee Act goal date of August 5 for mRNA-1010. It’s for adults aged 50 and older.
Moderna proposed a regulatory pathway based on age, seeking full approval for adults aged 50 to 64 and accelerated approval for adults 65 and older, along with a postmarketing requirement to conduct an additional study in older adults.
Moderna Analyst Sees Opportunity But Flags Some UncertaintiesWilliam Blair noted that the scope of Moderna's postmarketing commitments remains unclear. The company's willingness to fund potentially costly Phase IV studies are important given management's guidance to limit additional spending on its respiratory vaccine franchise.
Analyst Myles Minter said mFluSiva could become a meaningful driver of Moderna's revenue growth in 2027 if approved.
However, Minter maintained a Market Perform rating, citing the need for greater visibility into Phase 3 INTERPATH-001 data for intismeran in adjuvant melanoma, expected in 2026, which he views as a more significant long-term catalyst for the stock.
MRNA Stock Price Activity: Moderna shares rose 1.19% at $56.06 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo: pcruciatti / Shutterstock
Market News and Data brought to you by Benzinga APIs
Moderna (MRNA) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
Key Takeaways MRNA rose over 6% after FDA briefing documents eased concerns about mFlusiva's approval prospects.FDA staff cited supporting data and no major filing deficiencies ahead of the June 18 review.VRBPAC will assess whether immunogenicity data support accelerated approval in older adults. Shares of Moderna (MRNA - Free Report) rose more than 6% on Tuesday after the FDA issued briefing documents ahead of a key advisory committee meeting, easing investor concerns about the approval prospects of the company's influenza vaccine candidate, mFlusiva (mRNA-1010).
The FDA’s Vaccines and Related Biological Products Advisory Committee (“VRBPAC”) is scheduled to meet on June 18, 2026, to assess the benefit-risk profile of the company’s influenza vaccine.
The favorable market reaction was notable because investors had braced for a more difficult regulatory review after the FDA initially declined to review Moderna's filing for the vaccine in February due to concerns related to the study design in adults aged 65 years and older. The agency later reversed course after Moderna revised its regulatory strategy for mFlusiva based on age. The regulatory filing was subsequently modified to seek traditional approval for the vaccine in adults aged 50-64 years and accelerated approval for adults aged 65 years and older.
The briefing documents were broadly constructive and significantly less negative than many investors had anticipated. The FDA staff did not identify any major deficiencies in Moderna's filing and acknowledged data supporting the vaccine.
However, one of the key questions raised by the agency relates to Moderna's proposed accelerated approval pathway for adults aged 65 years and older. The company is seeking approval in this population based on immunogenicity data rather than direct clinical efficacy evidence. The proposed pathway includes a required postmarketing confirmatory study to support full approval. However, the briefing documents specifically ask VRBPAC members to assess whether the available immunogenicity data provide a sufficient basis to predict clinical benefit in older adults.
MRNA Stock PerformanceYear to date, the stock has surged 88% against the industry’s nearly 2% fall.
Image Source: Zacks Investment Research
Why Is the VRBPAC Meeting Important for Moderna?Investors will now turn their attention to tomorrow’s VRBPAC meeting, which could provide additional insight into the FDA's comfort level with Moderna's proposed approval strategy ahead of the Aug. 5, 2026, target action date. While the agency is not obligated to follow the advisory committee's recommendations, it often aligns with its guidance, making the meeting’s outcome an important event for investors.
The outcome carries implications beyond mFlusiva itself. Moderna's long-term growth increasingly depends on expanding its respiratory portfolio beyond COVID-19 vaccines, with mFlusiva expected to serve as a foundational product within that strategy.
A favorable outcome could also provide greater regulatory clarity for mCombriax (mRNA-1083), Moderna's combination vaccine targeting both influenza and COVID-19. Moderna withdrew a filing for the vaccine last year after the FDA requested additional efficacy data related to the influenza component. Since mCombriax incorporates the same influenza component used in mFlusiva, investors will likely view any regulatory progress for the flu vaccine as an encouraging sign for the combination candidate as well. Moderna is currently awaiting further FDA guidance regarding a potential future filing for mCombriax. This combination vaccine recently secured approval in the EU.
MRNA’s Zacks RankModerna currently carries a Zacks Rank #3 (Hold).
Key Picks Among Biotech StocksSome better-ranked stocks from the sector are Immunocore (IMCR - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss per share of 88 cents to earnings of 6 cents. Over the same period, estimates for 2027 EPS have risen from 24 cents to 87 cents. IMCR’s shares have lost nearly 19% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters but missed the mark on one occasion, delivering an average surprise of 46.66%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 EPS have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen from $3.66 to $4.27. INDV’s shares are up nearly 6% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.44%.
The U.S. Food and Drug Administration's advisory panel is set to vote on whether the benefits of Moderna's flu vaccine outweigh its risks in older adults, after regulators reversed course on rejecting the drugmaker's initial application for the shot.
The U.S. Food and Drug Administration's advisers on Thursday backed approval of Moderna's flu vaccine in adults aged 50 and older, saying its benefits outweigh the risks.
FDA Prescription Drug User Fee Act (PDUFA) goal date remains August 5, 2026
CAMBRIDGE, MA / ACCESS Newswire / June 18, 2026 / Moderna, Inc. (NASDAQ:MRNA) today announced that the U.S. Food and Drug Administration's (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted 9-0 that the benefits of mRNA-1010, Moderna's investigational seasonal influenza vaccine, outweigh its risks for the prevention of influenza disease in adults 50 through 64 years of age and voted 9-0 that the benefits of mRNA-1010 outweigh its risks for the prevention of influenza disease in adults 65 years of age and older.
"We appreciate the thoughtful review by the members of VRBPAC and their recognition of the clinical evidence supporting mRNA-1010," said Stéphane Bancel, Chief Executive Officer of Moderna. "Influenza continues to cause substantial illness and hospitalizations among older adults each year. We believe mRNA-1010 has the potential to provide an important new option for seasonal flu prevention and further demonstrate the versatility of our mRNA platform. We look forward to continuing to work with the FDA as it completes its review."
According to the U.S. Centers for Disease Control and Prevention (CDC), seasonal influenza remains a significant public health burden.[1] Older adults account for a disproportionate share of severe influenza outcomes, including hospitalizations and deaths.
The VRBPAC discussion included data from Moderna's Phase 3 clinical program, including the primary analysis results from the pivotal Phase 3 clinical trial (NCT06602024), previously announced in June 2025 and recently published in The New England Journal of Medicine. These data further support the potential of mRNA-1010 to provide a differentiated non-egg-based option for influenza prevention in older adults.
The safety profile of mRNA-1010 observed in the Phase 3 program was consistent with previously reported studies of Moderna's influenza vaccine candidate.
The FDA will consider the recommendations of VRBPAC as part of its ongoing review of Moderna's Biologics License Application (BLA) for mRNA-1010. Advisory committee recommendations are non-binding, and the FDA is responsible for making the final approval decision.
mRNA-1010 has been accepted for regulatory review in the United States, European Union, Canada and Australia. Moderna has received a U.S. FDA Prescription Drug User Fee Act (PDUFA) goal date of August 5, 2026. Regulatory submissions in additional countries are planned during 2026.
About Moderna
Moderna is a pioneer and leader in the field of mRNA medicine. Through the advancement of its technology platform, Moderna is reimagining how medicines are made to transform how we treat and prevent diseases. Since its founding, Moderna's mRNA platform has enabled the development of vaccines and therapeutics across infectious diseases, cancer, rare diseases and more.
With a global team and a unique culture, driven by the company's values and mindsets, Moderna's mission is to deliver the greatest possible impact to people through mRNA medicines. For more information about Moderna, please visit modernatx.com and connect with us on X, Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding: the benefit-risk profile of mRNA-1010; the FDA's ongoing review of the BLA for mRNA-1010 and the FDA's final approval decision; the PDUFA goal date; mRNA-1010's safety profile; ongoing regulatory reviews of mRNA-1010 in additional countries; and additional planned regulatory submissions for mRNA-1010. In some cases, forward-looking statements can be identified by terminology such as "will," "may," "should," "could," "expects," "intends," "plans," "aims," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Moderna's control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include, among others, those risks and uncertainties described under the heading "Risk Factors" in Moderna's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC), and in subsequent filings made by Moderna with the SEC, which are available on the SEC's website at www.sec.gov. Except as required by law, Moderna disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Moderna's current expectations and speak only as of the date of this press release.
###
Moderna Contacts
Media:
Chris Ridley
Vice President, Global Head of Communications
+1 617-800-3651 [email protected]
Investors:
Lavina Talukdar
Senior Vice President & Head of Investor Relations
+1 617-209-5834 [email protected]
Moderna said the FDA's Vaccines and Related Biological Products Advisory Committee voted unanimously that the benefits of the vaccine, mRNA-1010, exceed the risks for the prevention of flu in adults 50 through 64 years old, and in adults 65 years of age and older.
Key Takeaways MRNA gained 3.5% after FDA advisers unanimously backed mFlusiva for older adult flu prevention.A 9-0 VRBPAC vote boosted confidence ahead of the FDA's Aug. 5, 2026, BLA decision on mFlusiva.MRNA sees mFlusiva as key to expanding beyond COVID-19 and supporting its respiratory vaccine franchise. Moderna (MRNA - Free Report) shares gained 3.5% on Thursday after the company cleared a key regulatory hurdle for its investigational seasonal influenza vaccine, mFlusiva (mRNA-1010). The positive move followed a unanimous endorsement from the FDA's Vaccines and Related Biological Products Advisory Committee (VRBPAC), which voted 9-0 that the vaccine's benefits outweigh its risks for the prevention of influenza disease in adults aged 50-64 and in those aged 65 and older.
This outcome was expected since the briefing documents for the committee meeting were issued by the FDA earlier this week. Several investors had construed these documents to be broadly constructive and significantly less negative than anticipated. The FDA staff did not identify any major deficiencies in Moderna's biologics license application (BLA) for mFlusiva in influenza and acknowledged the data supporting the vaccine.
The investors had earlier braced for a more difficult regulatory review after the FDA initially declined to review Moderna's mFlusiva BLA in February due to concerns related to the study design in adults aged 65 years and older. The agency later reversed course after Moderna revised its regulatory strategy for the vaccine based on age. The BLA was subsequently modified to seek traditional approval of mFlusiva in adults aged 50-64 years and accelerated approval for adults aged 65 years and older.
Year to date, MRNA stock has skyrocketed 116.9% against the industry’s 1% decline.
Image Source: Zacks Investment Research
The advisory committee's backing is viewed as an important step toward potential approval, significantly improving investor confidence ahead of the FDA's Aug. 5, 2026, decision date for Moderna's mFlusiva BLA for influenza. While the FDA is not obligated to follow advisory committee recommendations, a unanimous endorsement from VRBPAC is widely viewed as a positive signal that strengthens the vaccine's prospects for approval and reduces regulatory uncertainty.
The panel's review was based on data from Moderna's phase III influenza vaccine program, including results from its pivotal late-stage study that demonstrated the vaccine's potential as a non-egg-based alternative for seasonal flu prevention in older adults. The safety findings discussed during the meeting were consistent with previously reported studies, further supporting the vaccine's regulatory case.
With regulatory reviews already underway in the United States, the EU, Canada and Australia, the unanimous VRBPAC vote strengthens expectations that mFlusiva could become Moderna's next commercially important vaccine product. Regulatory submissions in additional countries are also planned during 2026.
Why Is the VRBPAC Meeting Outcome Important for Moderna?The unanimous VRBPAC vote carries significance beyond the potential approval of mFlusiva. Moderna's long-term growth strategy increasingly depends on expanding its respiratory vaccine franchise beyond COVID-19, and a successful flu vaccine launch would provide the company with an important new commercial product in a large seasonal market. It would also further validate the versatility of Moderna's mRNA platform in infectious diseases.
The opportunity is particularly important given the substantial burden of seasonal influenza among older adults, a population that accounts for a disproportionate share of flu-related hospitalizations and deaths. If approved, mFlusiva could strengthen Moderna's position in respiratory vaccines while reducing the company's reliance on its COVID-19 franchise.
Investors are also focused on the broader pipeline implications. Regulatory progress for mFlusiva could provide greater clarity for mCombriax (mRNA-1083), Moderna's combination influenza/COVID vaccine. Moderna withdrew a filing for the vaccine last year after the FDA requested additional efficacy data related to the influenza component. Since mCombriax incorporates the same influenza component used in mFlusiva, a favorable regulatory path for the flu vaccine is viewed as an encouraging signal for the combination vaccine’s prospects. Moderna is currently awaiting further FDA guidance regarding a potential future filing for mCombriax. This combination vaccine recently secured approval in the EU.
MRNA’s Zacks Rank & Stocks to ConsiderModerna currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) , Indivior Pharmaceuticals (INDV - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Liquidia Corporation’s 2026 EPS have increased from $1.50 to $2.97. Over the same period, EPS estimates for 2027 have also increased from $2.91 to $4.81. LQDA shares have rallied 106.1% year to date.
Liquidia Corporation’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen to $4.27 from $3.66. INDV shares have gained 6.7% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.
The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents. In the past 60 days, the estimates for its 2027 EPS have increased from 24 cents to 87 cents. IMCR shares have lost 17.6% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.
Shares of Moderna (MRNA 0.67%) jumped during the COVID-19 pandemic, but when its COVID-19 vaccine revenue dried up, the stock slumped. However, the company has recently shown it isn't a one-trick pony by using its messenger ribonucleic acid (mRNA) platform to expand its business. Investors have noticed, and the pharmaceutical stock is up more than 100% so far this year.
Because Moderna is trading at a premium price-to-sales ratio relative to its current revenue, buying the stock now is essentially a bet that its upcoming clinical data and Food and Drug Administration (FDA) approvals will successfully unlock the commercial viability of its broader mRNA pipeline.
Here are three reasons to buy Moderna stock.
Image source: Getty Images.
1. Moderna has near-term portfolio diversification Moderna is aggressively trying to replace lost COVID-19 vaccine revenue by moving into multivalent and seasonal respiratory markets. The immediate catalyst is mFlusiva, Moderna's investigational mRNA-based seasonal influenza vaccine, which fared well in a phase 3 trial.
The FDA's target action date for the stand-alone flu vaccine is Aug. 5, following highly positive briefing documents submitted to its advisory committee. If approved, the vaccine could be available for the 2026–2027 flu season. It's not a slam dunk, as an advisory committee recently cast doubt on the methodology used in the study, though it also said it found no major deficiencies in the vaccine's efficacy.
There's also optimism regarding Moderna's flu-plus-COVID-19 combination vaccine after the vaccine, in a phase 3 trial, did better than the current stand-alone vaccines for both viruses.
Last month, the European Commission approved the vaccine, called mCOMBRIAX, which aims to simplify immunization for adults aged 50 and older by combining protection against influenza and COVID-19.
Bundling the vaccines removes a massive logistical friction point. Patients who are already sitting in a pharmacy or doctor's office chair for their annual flu shot can check both boxes at once, boosting compliance with the COVID-19 booster without requiring extra public outreach.
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2. Moderna is developing personalized cancer vaccines The most transformative upside for Moderna isn't in respiratory viruses; it's if its mRNA platform can be used to treat cancer. Moderna, in partnership with Merck, is developing intismeran autogene (mRNA-4157), an individualized cancer vaccine. The therapy uses mRNA to instruct a patient's own immune system to target specific mutations found only on their tumor cells.
In January, Moderna presented stellar five-year phase 2 data in patients with high-risk melanoma, showing sustained efficacy when combined with Keytruda. Crucially, pivotal phase 3 data readouts are expected later this year, which could pave the way for its first oncology product launch and completely redefine the company's valuation.
3. Moderna has a massive commercial expansion and runway Moderna is actively transforming its internal structure to prepare for up to three new product launches between 2027 and 2028, spanning infectious diseases (including a novel norovirus vaccine), intismeran, and rare diseases (such as its therapeutic for propionic acidemia). To manage this, it recently overhauled leadership, appointing a new veteran chief commercial officer to execute global launches.
There are some obvious risks for Moderna. In the first quarter, it reported revenue of $389 million, up 260%, year over year. However, it also reported an earnings per share (EPS) loss of $3.40, compared with $2.52 in the first quarter of 2025.
The quarter was impacted by a one-time $878 million litigation loss. Excluding that item, the company's adjusted EPS was a loss of $1.18, compared to a loss of $0.88 in the same quarter a year ago.
Moderna is obviously still burning cash on its research and development efforts, but it has $7.5 billion in cash and little debt, giving it a comfortable multiyear runway to achieve its stated goal of a companywide breakeven by 2028.
Moderna (MRNA 0.67%) stock skyrocketed in early pandemic days -- and the company became a household name -- as it launched its coronavirus vaccine. This first product, and one using the new messenger RNA technology, brought in billions of dollars in revenue and proved the efficacy of mRNA.
But in recent years, as demand for the vaccine declined, Moderna's earnings followed. The company suffered various setbacks, such as the failure of its cytomegalovirus (CMV) vaccine candidate in late-stage trials, and investors no longer rushed to get in on this biotech stock.
Things may be turning around for Moderna, though: The stock has soared more than 100% since the start of the year. And just recently, the company announced positive news -- to be confirmed on or before Aug. 5. Should you buy Moderna stock before that date? Let's find out.
Image source: Getty Images.
Moderna's mRNA technology So first, let's take a quick look at the Moderna story and strategy. As mentioned, the company took center stage during early pandemic days, thanks to its coronavirus vaccine. Moderna uses mRNA in this product and throughout its pipeline, and it works by teaching the body to make proteins to fight off a particular virus or disease.
The coronavirus approval offered Moderna the opportunity to prove that this technique works -- and Moderna went on to win approval for a respiratory syncytial virus (RSV) vaccine and a second coronavirus vaccine.
Meanwhile, the company continued shepherding other candidates through the pipeline -- from respiratory and latent virus vaccine candidates to investigational oncology and rare disease therapeutics. Moderna suffered setbacks in recent years, from RSV vaccine sales coming in lower than expected to the failure of its CMV candidate -- one that was expected to become a blockbuster -- in a phase 3 trial.
But setbacks are part of the story for all biotech and pharma companies and don't necessarily alter the long-term growth story. In this case, the failures don't call into question Moderna's mRNA technology, and the company's pipeline is strong, with many promising candidates. All of this is positive.
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Three potential product launches In fact, Moderna is gearing up for potential product launches in the coming years. The biotech aims to release three, including a combination flu and coronavirus vaccine, and seasonal flu and norovirus vaccines, over 2027 and 2028. The company says late-stage data from rare disease and oncology trials may also lead to launches in those areas just ahead. So Moderna may be at a key transition point right now, and investors have recognized this, as we can see through the stock price performance since the start of the year.
Now, let's consider what's about to unfold on or just before Aug. 5. It has to do with the company's investigational flu vaccine candidate, mRNA-1010. A U.S. Food and Drug Administration advisory panel voted unanimously in favor of the candidate, a vote that the benefits outweigh the risks. The independent committee voted in favor for the 50 to 64 age group and the 65-and-older age group.
An Aug. 5 deadline Now, the FDA has a deadline of Aug. 5 to issue a decision regarding the vaccine. Though the regulatory agency doesn't have to follow the recommendation of the committee, it generally does -- so there is reason for investors to be optimistic about what might unfold. And this puts Moderna's flu candidate on track to launch for the 2026-2027 flu season.
Does all of this make Moderna a buy today? Moderna clearly has reached a key turning point, with many potential revenue drivers ahead, and that makes now a great time to be a shareholder. It's important to keep in mind that some risk is involved. Even if Moderna wins approval of its flu vaccine, soaring sales may not happen overnight. Still, this would be a critical step forward for the company as it builds out its presence as a multi-product commercial-stage biotech.
Moderna stock has climbed quite a bit this year, so a lot of the good news could be priced in at today's levels. A potential flu vaccine approval may result in a pop for the stock price, but I don't think gains will continue on uninterrupted. There may be opportunities in the near future and after Aug. 5 to buy Moderna on the dip -- and that's when growth investors should make the move.
