, /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) will release its second quarter 2026 earnings on Wednesday, July 29, 2026, before the market opens, followed by an earnings call at 8:00AM ET. The call will be available through a live teleconference and a listen-only webcast.
Direct links to register for the teleconference, access the webcast, and view the accompanying slide presentation will be available in the "Events" section of the Stanley Black & Decker Investors website at www.stanleyblackanddecker.com/investors. A replay will be available in the same location approximately two hours after the call.
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About Stanley Black & Decker
Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 43,500 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.
Stanley Black & Decker faces headwinds in the Tools & Outdoor segment, reflecting broader consumer sentiment and sluggish U.S. housing activity. SWK is prioritizing debt reduction, with recent cash flow improvements as well as the divestiture of consolidated aerospace manufacturing, supporting deleveraging efforts and financial stability. Valuation metrics and insider activity suggest a cautious stance, as the company navigates mixed fundamentals and macroeconomic uncertainty.
Key Takeaways Cisco Systems sees strong AI-driven demand, with AI infrastructure orders projected at $9B in fiscal 2026. Caterpillar is benefiting from rising AI data center power demand and plans to expand output capacity.Visa and Coca-Cola are supported by payment growth, innovation, pricing and margin expansion. On June 16, the Dow achieved a new milestone. The index advanced 0.64% or 328.64 points to close at a record high of 51,999.67. At intraday high, the blue-chip index touched an all-time high of 52,190.29. The index touched the crucial technical barrier of 52,000 for the first time in its history.
Dow’s momentum is likely to continue in the near term. Technically, at its current level of 51,999.67, the Dow is well above its 50-day and 200-day moving averages of 51,275.10 and 50,574.67, respectively.
Historically, it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the asset (in this case, the Dow Index) becomes a strong possibility.
At this stage, it will be prudent to invest in blue-chip stocks with a favorable Zacks Rank. Four such stocks are: Cisco Systems Inc. (CSCO - Free Report) , Caterpillar Inc. (CAT - Free Report) , Visa Inc. (V - Free Report) and The Coca-Cola Co. (KO - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our four picks year to date.
Image Source: Zacks Investment Research
Cisco Systems Inc.Zacks Rank #2 Cisco Systems has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In the last reported quarter, CSCO generated record-high revenues primarily attributable to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems.
CSCO expects total artificial intelligence (AI) infrastructure orders to reach $9 billion in fiscal 2026, an increase of 4.5X from fiscal 2025. Overall product orders grew by a sizable 35% year over year in the third quarter. Of this, data center switching orders grew 40% from the year-ago period supported by massive AI-powered data center buildout.
Cisco has decided to retrench 4,000 manpower as part of a sweeping restructuring effort. Management said that this restructuring has been guided to give more emphasis to areas like AI networking infrastructure, network security, silicon and optics.
Cisco Systems has an expected revenue and earnings growth rate of 7.6% and 10.3%, respectively, for the next year (ending July 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.9% over the last 30 days.
Caterpillar Inc.Zacks Rank #1 Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 60 days.
Visa Inc.Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
The Coca-Cola Co.Zacks Rank #2 Coca-Cola is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.
KO projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts KO’s organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. KO’s robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.
Coca-Cola has an expected revenue and earnings growth rate of 3% and 8.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 60 days.
Shares of Caterpillar (CAT) are 2.1% higher to trade at $966.24, earlier touching a record high of $970.99, now heading for a fifth-straight win. CAT has been a long-term outperformer on the charts, with reliable support stemming from the 80-day moving average. The shares already sport a 68% gain for 2026 and earlier landed a price-target hike to $1,165 from J.P. Morgan Securities. Despite this outperformance, more ascension could be in store, per a flashing historic bull signal.
Daily Chart of CAT Since June 2025 with 80-Day Moving Average
LSEG Workspace
At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Caterpillar stock’s 10-day put/call volume ratio of 1.72 ranks in the 92nd annual percentile. Echoing this is the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.37, which ranks higher than 84% of readings from the past year.
This marks the ninth time in the last three years that the equity’s 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, CAT was higher one month later 100% of the time after these signals with an average 11.3% return. From its current perch, a shift of this magnitude would put Caterpillar stock at $1,080 -- a new record peak.
Analysts remain split toward the equity, with 10 of the 24 covering firms sporting a "hold" recommendation. This leaves ample room for bull notes moving forward, should this bearish sentiment begin to unwind.
Lastly, the stock sports a lofty Schaeffer's Volatility Scorecard (SVS) of 84 out of 100. This suggests the equity has consistently realized higher-than-expected volatility over the past 12 months.
Dow Inc. (DOW - Free Report) closed the most recent trading day at $32.50, moving -1.4% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.22%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.35%.
The materials science's stock has dropped by 12.67% in the past month, falling short of the Basic Materials sector's gain of 3.65% and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. On that day, Dow Inc. is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 309.52%. Meanwhile, the latest consensus estimate predicts the revenue to be $12.16 billion, indicating a 20.36% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.61 per share and revenue of $43.64 billion, indicating changes of +377.66% and +9.19%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Dow Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 past month, the Zacks Consensus EPS estimate has shifted 10.29% upward. Dow Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 12.61. This indicates a discount in contrast to its industry's Forward P/E of 16.29.
We can additionally observe that DOW currently boasts a PEG ratio of 0.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DOW's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Key Takeaways DOW stock has risen 39% YTD, beating its industry and the S&P 500 index.DOW targets $1B in cost cuts and expects remaining savings to be realized by 2026.DOW's Transform to Outperform plan targets $2B EBITDA improvement through productivity gains. Dow Inc.’s (DOW - Free Report) shares have popped 39% year to date, outperforming the Zacks Chemicals Diversified industry’s rise of 23.6%. DOW has also topped the S&P 500’s roughly 10% increase over the same period.
DOW has been gaining from its cost-reduction and productivity improvement efforts, strategic expansion in high-growth markets and feedstock advantages, even as it navigates a challenging macroeconomic environment.
DOW’s YTD Price Performance
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving DOW stock.
DOW Gains on Strategic Growth & Self-help ActionsDOW benefits from its differentiated portfolio and advantaged feedstock positions in the Americas. It remains focused on investing in attractive areas. Its broad portfolio, significant low-cost feedstock positions, global footprint and market reach place it in an advantageous position against competitors. While Dow faces headwinds from heightened macroeconomic and geopolitical uncertainties, it remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions.
Dow is taking action to cut costs by $1 billion to drive margins. It expects to achieve the majority of the cost savings through reductions in direct and labor costs. Dow realized more than $400 million of benefits from these actions in 2025, with the remaining benefits expected by 2026.
DOW has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The company expects EBITDA benefits of roughly $500 million from this program in 2026. It expects to deliver roughly $1.1 billion in benefits from self-help actions this year.
Dow, on its first-quarter call, stated that it is already witnessing strong positive momentum from its recently implemented pricing actions across all businesses and regions, along with supportive improvements in operating rates. The company added that it is leveraging its purpose-built asset base, established supply chain networks and strong operational reliability to continue prioritizing customers while navigating challenges related to the Middle East conflict.
DOW’s Zacks Rank & Key PicksDOW currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space are Nucor Corporation (NUE - Free Report) , L.B. Foster Company (FSTR - Free Report) and Albemarle Corporation (ALB - Free Report) , each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nucor’s current-year earnings stands at $15.71 per share, implying an 103.8% year-over-year increase. NUE’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 8.1%.
The consensus estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. The Zacks Consensus Estimate for FSTR’s current-year earnings has been revised 12.3% higher over the past 60 days.
The Zacks Consensus Estimate for Albemarle’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.
US stocks rebounded on Thursday, with semiconductor shares leading the advance as investors looked past the previous session's Federal Reserve-driven selloff and welcomed easing oil prices and encouraging economic data.
The Dow Jones Industrial Average added 72.15 points, or 0.14%, to end at 51,564.70.
The S&P 500 rose 1.08% to close at 7,500.58, while the Nasdaq Composite climbed 1.91% to 26,517.93.
Chipmakers led Thursday's gains after President Donald Trump said Apple had agreed to work with Intel on designing and manufacturing chips in the United States.
Intel shares surged 10.6%, while Nvidia gained nearly 3% and Micron Technology advanced almost 9%.
The iShares Semiconductor ETF (SOXX) jumped more than 6%, helping drive broader market gains.
The Philadelphia Semiconductor Index significantly outperformed the broader market as investors continued to favor companies tied to artificial intelligence infrastructure and computing demand.
The rebound followed a sharp selloff on Wednesday after the Federal Reserve's first policy meeting under Chair Kevin Warsh raised concerns about the outlook for interest rates.
The Fed's latest "dot plot" showed that nine of 18 policymakers now expect interest rates to rise in 2026.
Warsh also abstained from submitting his own interest-rate forecast and repeatedly emphasized the importance of achieving price stability during his press conference.
Markets continued to price in the possibility of additional policy tightening.
According to CME Group's FedWatch tool, traders were assigning roughly a 50% probability to a 25-basis-point rate increase as soon as September and around a 20% probability of a 50-basis-point increase.
Investor sentiment was further boosted by developments in the Middle East.
Oil prices slid to their lowest levels since early March after the United States and Iran signed an interim agreement extending the April ceasefire by another 60 days to allow additional time for negotiations.
Although President Donald Trump warned that military action could resume if Iran failed to comply with the agreement, shipping traffic through the Strait of Hormuz began resuming after the United States and Iran extended their interim ceasefire, easing disruptions to the transport of oil, natural gas, fertilizer and other cargoes.
Economic data provided additional support. Labor Department figures showed that weekly jobless claims declined, indicating layoffs remained subdued.
Among individual movers, Accenture fell after trimming the upper end of its annual revenue forecast, dragging peers including Cognizant Technology Solutions, Gartner, and IBM lower.
Kroger also declined after reporting lower-than-expected first-quarter profit and maintaining its annual outlook.
Shares of Elon Musk's SpaceX fell for a second consecutive session after rallying strongly following last week's market debut.
Thursday also marked "triple witching," the quarterly expiration of stock options, index options and futures contracts, an event that can increase trading volumes and market volatility.
S&P 500 Forecast: AI Rally Supports Bulls as Yields Rise S&P 500 Bulls Rely on AI Strength as Yields Rise The S&P 500 remains supported by technology, AI infrastructure and large-cap growth stocks. The tariff structure is important here as the fastest growing parts of the economy are not facing the same pressure as older industrial sectors. There is sustained policy support for data centres, AI hardware and digital infrastructure. This can support the S&P 500 to perform well compared to other indexes.
But the clear risk comes from the higher Treasury yields. Growth and tech stocks are weighted heavily in the S&P 500. These stocks are more sensitive to interest rates as their valuations depend on future earnings.
There are also mixed effects on S&P 500 due to tariffs. Businesses have a bit more control over their pricing and might be able to absorb higher import prices. Bigger tech and software stocks might also be under less pressure. But the consumer facing companies, retailers, manufacturers and companies with global supply chains could see margins under pressure.
The key issue for the S&P 500 is whether AI strength can overcome macro pressures. The index can hold if its investors continue to place AI demand, data centres and strong earnings of mega-cap technology stocks in focus. But if the yield continues to rise and inflation keeps the Fed on a hawkish stance, the rally could narrow.
The overall situation is still positive as liquidity is easy and growth stocks are still leading. The S&P 500 outlook is cautiously bullish, but any upside may depend on the ability of tech to take the strain from tariffs, inflation and higher rates.
S&P 500 Keeps 7,000–7,200 as Key Buy Zone From a technical perspective, the S&P 500 remains in a strong and healthy uptrend since the lows in April 2025. The recovery from the April 2025 bottom was a V-shaped recovery which produced the ascending broadening wedge pattern from July 2025 to the recent highs.
The recovery in March 2026 also produced a V-shaped recovery pattern and broke the 7,000 level. The breakout above the 7,000 level in April 2026 indicates that the S&P 500 remains in strong bullish momentum and looks toward the 8,000 level. This target is defined by the target of the ascending broadening wedge pattern.
This constructive price action in the S&P 500 indicates that 7,000 to 7,200 remains the big buy zone.
Dow Jones Forecast: Tariff Risk Tests 50,000 Support Dow Jones Faces Higher Tariffs and Industrial Cost Risks The Dow is more vulnerable to tariff risk and industrial risk than the S&P 500. The index consists of leading industrial, financial, healthcare and consumer firms. A number of these companies are sensitive to input costs, global trade policy and consumer demand. When tariffs increase and cost pressures work their way through the economy, the Dow becomes more vulnerable.
The increment in taxes on steel, copper, lumber, machinery, robotics and medical devices may impact industrial and manufacturing companies. These industries could face reduced profitability and increased expenses. The demand could decline if businesses pass these costs to consumers. If the companies don’t pass these costs to consumers, the earnings will be affected.
Financial stocks can benefit from higher yields to a degree, but when borrowing costs go up, industrials and consumer stocks can suffer. A hawkish Fed also lowers the likelihood of imminent rate cuts which can curb investor demand for cyclical stocks.
But the Dow could benefit if the economy avoids a sharp slowdown. Tricky monetary circumstances and robust nominal growth can prop up company earnings. Demand can remain strong, while inflation remains high, with some Dow companies continuing to see sales growth. The risk is that growth in revenue may come from higher prices rather than increased real demand.
Dow Jones Breakout Above 52,000 Could Open 55,000 Target The Dow Jones Industrial Average also shows strong bullish momentum since the September 2022 lows. The formation of an inverted head-and-shoulders pattern from 2021 to 2023 and then the emergence of an ascending broadening wedge pattern from January 2024 to the recent highs indicate that the breakout above 50,000 has opened the door for a strong move toward 55,000.
The recent drop in the index in February 2026 toward 45,000 and then the recovery from 45,000 to above 50,000 produced a V-shaped recovery. This pattern indicates a sustained move to 55,000 as long as 50,000 holds.
U.S. stocks traded mostly higher this morning, with the Dow Jones index gaining more than 200 points on Monday.
Following the market opening Monday, the Dow traded up 0.41% to 51,775.92 while the NASDAQ fell 0.14% to 26,481.57. The S&P 500 also rose, gaining, 0.21% to 7,516.48.
Leading and Lagging Sectors
Financial shares jumped by 0.9% on Monday.
In trading on Monday, communication services stocks fell by 2.3%.
Top Headline
Outdoor Holding Company (NASDAQ:POWW) shares fell more than 2% on Monday after the company reported results for the fourth quarter.
The company reported quarterly losses of 3 cents per share which missed the analyst consensus estimate of loss of 1 cent per share. The company reported quarterly sales of $13.889 million which beat the analyst consensus estimate of $12.700 million.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 1% to $75.83 while gold traded down 0.7% at $4,218.20.
Silver traded up 0.1% to $66.405 on Monday, while copper fell 0.2% to $6.3730.
Euro zone
European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.3%, while Spain’s IBEX 35 Index rose 0.6%. London’s FTSE 100 rose 0.6%, Germany’s DAX gained 0.1%, while France’s CAC 40 fell 0.5%.
Asia Pacific Markets
Asian markets closed mostly higher on Monday, with Japan’s Nikkei 225 gaining 1.55%, Hong Kong’s Hang Seng Index falling 0.65%, China’s Shanghai Composite jumping 1.78% and India’s BSE Sensex climbing 0.38%.
Economics
No major economic reports are scheduled for released today.
Photo via Shutterstock
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Dow Inc. (DOW - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 14.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why DOW Could Experience a TurnaroundThe RSI reading of 27.54 for DOW is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for DOW has increased 10.3%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, DOW currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Last month, the iconic Dow Jones Industrial Average (^DJI 0.09%) celebrated its 130th birthday. Since its official inception on May 26, 1896, the Dow has undergone more than 50 adjustments. What was a 12-stock, industrial-focused index in the late 19th century is now composed of 30 diverse, multinational businesses.
On June 29, before trading commences, another major change will be made. Telecom titan Verizon Communications (VZ +3.02%) will be removed from the Dow, with virtual monopoly and trillion-dollar club member Alphabet (GOOGL 0.85%)(GOOG 0.61%) taking its place. Specifically, Alphabet's Class A shares (GOOGL) will join the index.
Image source: Getty Images.
Verizon's two flaws made it expendable Unlike the benchmark S&P 500 (^GSPC 1.44%) and tech-focused Nasdaq Composite (^IXIC 2.21%), which are both market-cap-weighted indexes, the Dow Jones Industrial Average is weighted by share price. For example, even though Nvidia is the largest publicly traded company ($4.85 trillion market cap), it's $200 share price makes it only the 19th most influential component within the Dow.
Verizon's first irrefutable flaw is that it boasted the second-lowest share price in the Dow at $46.73 (as of June 23). Based on the current Dow divisor, Verizon is only responsible for 287.7 Dow points. For reference, the Dow Jones Industrial Average closed at roughly 51,667. It simply didn't have much sway within the index.
Today's Change
(
3.02
%) $
1.37
Current Price
$
46.73
The other issue is that S&P Dow Jones Indices, the committee responsible for making adjustments to this time-tested index, favors companies that are representative of the U.S. economy and are long-term winners.
Since Verizon was added to the Dow on April 8, 2004, its shares have gained only 39.5%, excluding dividends. Verizon has held the Dow back, which will no longer be the case after this week.
Image source: Getty Images.
Virtual monopoly Alphabet joins its trillion-dollar peers in the Dow Even a blind squirrel finds a nut once in a while: the removal of Verizon for Google parent Alphabet is a move I forecasted in January. On Monday, it'll join other trillion-dollar peers in the iconic Dow, including Nvidia, Microsoft, and Amazon.
Alphabet offers a harmonious blend of tech and communications, highlighted by its virtual monopoly in internet search. Google accounts for approximately 90% of global internet search traffic, according to GlobalStats, affording Alphabet exceptional ad pricing power and closely tying the company's fortunes to the U.S. economy. It's also the parent of streaming platform YouTube, the second-most-visited social site on the planet, behind Google.
Google's $GOOGL Cloud Backlog is growing exponentially. It nearly doubled in the most recent quarter and is expected to continue growing at a brisk pace...
Maybe the best segment of the Google empire. pic.twitter.com/QBO2eC0Hf3
-- Just a Dude Who Invests (@DudeWhoInvests) June 21, 2026 However, Alphabet's long-term growth story is dependent on artificial intelligence (AI) applications. Since integrating generative AI and large language model solutions into its prized cloud infrastructure service platform, Google Cloud, sales growth for this high-margin segment has reaccelerated in a big way.
Alphabet also resolves Verizon's low share price and underperformance issues. At $346.13 per share, Alphabet's Class A shares will slot in as the sixth most influential Dow component. It's also rallied by nearly 13,700% since its IPO in August 2004 (about four months after Verizon joined the Dow).
On Monday, June 29, the Dow Jones Industrial Average will change forever, with Google parent Alphabet claiming a much-deserved spot in this time-tested index.
Sean Williams has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Listen below or on the go via Apple Podcasts and Spotify
Alphabet replaces Verizon in Dow Industrials. (0:15) GameStop CEO eschews performance award. (1:14) Cerebras margins overshadow OpenAI deal. (1:51)
The following is an abridged transcript:
The Dow Jones Industrial Average (DJI) is making another pivot toward AI, jettisoning a telecom whose roots trace back to Ma Bell and that has been part of the index in some form since 1916.
Alphabet Class A shares – ticker symbol GOOGL – will replace Verizon (VZ) in the Dow 30 effective June 29.
Once the change takes effect, the Dow will include five of the Magnificent Seven stocks, with Alphabet (GOOGL) (GOOG) joining Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN).
The move could provide a boost to Alphabet shares through buying by index funds and ETFs. It could also help the Dow itself, as Verizon currently represents only about half a percentage point of the index because of its relatively low share price.
Meanwhile, Honeywell International (HON) is expected to complete the spinoff of Honeywell Aerospace (HONAV) on June 29.
Following the separation, the parent company will be renamed Honeywell Technologies and remain a member of the Dow.
Honeywell Aerospace will join the S&P 500 (SP500), replacing Conagra Brands (CAG), which will move to the S&P SmallCap 600 (SP600).
GameStop (GME) CEO Ryan Cohen wants his pursuit of eBay (EBAY) to be his yardstick.
The company's board granted Cohen's request to remove a proposed CEO performance award after he said management should remain focused on operating performance and the proposed eBay acquisition.
In May, GameStop submitted a non-binding proposal to acquire eBay for $125 per share in cash and stock.
Cohen has been aggressively building a position in eBay through derivative-linked option structures, lifting GameStop's stake to 7.8% of the company's outstanding shares.
He plans to take the offer directly to shareholders after eBay's board dismissed the proposal as neither credible nor attractive.
And Cerebras Systems (CBRS) is tumbling as concerns over margins overshadowed the company's new deal with OpenAI (OPENAI).
Looking to Q2, Cerebras expects core gross margins of 36% to 38%, down from 47% in Q1. Revenue is expected to reach $194M, up 88% from a year ago.
The weak guidance overshadowed a new $20B agreement with OpenAI. Under the multi-year deal, OpenAI will deploy 750 megawatts of Cerebras' high-speed inference capacity over the next several years.
Now here's what's trending on Seeking Alpha:
Micron (MU) options imply a move of about 13% after the chipmaker reports earnings postmarket.
Jefferies says Alphabet's AI talent losses are just "noise."
And the iShares Biotechnology ETF (IBB) has hit an all-time high.
In premarket trading, S&P 500 futures (SPX) and Nasdaq 100 futures (US100) are rebounding modestly following the previous session's selloff.
Crude oil (CL1) and gold (XAUUSD) are each down about 1%, while Treasury yields are slightly lower.
Is the market forgetting about historical market trends as equities continue to rally in times they typically don't? That's the question @CharlesSchwab's Joe Mazzola adds his perspective to, explaining that investors "have gotten a little too used to double-digit gains.
Shares of NextEra Energy (NEE +0.37%) currently sit more than 10% below their 52-week high. The utility company's stock price has slumped following the surprising announcement that it agreed to buy Dominion (D +0.60%) in an all-stock deal valued at nearly $67 billion. The merger would create the world's largest regulated electric utility company.
The deal adds near-term risks from regulatory approval uncertainty and potential integration challenges. However, the long-term benefits could far outweigh those risk factors. Here's why I think that investors looking back a decade from now will wish they had capitalized on the sell-off to buy the utility stock.
Image source: The Motley Fool.
Creating a power supermajor NextEra Energy already owns the country's largest electric utility (Florida Power & Light (FPL)). Additionally, it operates one of America's largest energy infrastructure development companies (NextEra Energy Resources). NextEra is a world leader in wind, solar, and battery storage.
The company's merger with Dominion would create a power supermajor. The combined company would be the world's largest regulated electric utility business by market capitalization. It would serve about 10 million utility customer accounts across four fast-growing states and own 110 gigawatts (GW) of power generation capacity. It would be a leader in almost every category, including the world leader in renewables and battery storage, the top U.S. gas-fired power producer, and the second-largest nuclear power operator. That would give it an unmatched global scale, enabling it to buy, build, finance, and operate more efficiently than competitors.
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Accelerating its ability to capitalize on the AI power megatrend NextEra Energy's leading Florida-based utility operations and clean-energy-focused energy resources business already puts it in a strong position to capitalize on surging power demand from AI data centers and other catalysts. The company expected to invest between $295 billion and $325 billion in capital projects through 2032 to support rising power demand. That investment level had NextEra Energy on track to grow its adjusted earnings per share by more than 8% annually through 2032, a rate the company expects to maintain through at least 2035.
The Dominion deal will accelerate its already robust growth plan. Dominion operates in three fast-growing states, including Virginia, a hotbed of data center development. By acquiring Dominion, NextEra can leverage its larger scale to fully capitalize on the data center power opportunity. The company believes it can grow its adjusted earnings per share by more than 9% annually through 2032 and expects to sustain that growth rate through 2035. Further, it can deliver that growth while enhancing its credit profile and lowering its dividend payout ratio.
You'll likely regret missing this opportunity Megamergers aren't without risk, which is why shares of NextEra have tumbled more than 10% since it unveiled its massive Dominion Energy deal. However, it will create a power supermajor and accelerate NextEra's already robust growth profile over the next decade. I think the sell-off will look like an unbelievable buying opportunity with the benefit of a decade of hindsight.
Matt DiLallo has positions in NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
Key Takeaways NextEra is expanding in wind, solar and battery storage to meet rising low-carbon power demand.NextEra projects 76.6-107.6 GW of renewable capacity additions from 2026 to 2032.NEE's ROE tops its industry average, while earnings estimates for 2026 and 2027 are rising. NextEra Energy (NEE - Free Report) holds a strong position in the renewable energy sector, supported by its early and substantial investments in wind, solar and battery storage technologies. As the companies in the Zacks Utility - Electric Power industry shift toward clean power, more utilities are generating electricity from renewable sources. NextEra Energy’s extensive renewable energy infrastructure provides a strong competitive advantage, enabling it to capitalize on the growing demand for low-carbon power solutions.
Growing environmental awareness and increasingly stringent emissions regulations are driving the transition toward clean energy, positioning NextEra Energy to capitalize on rising demand. The company continues to expand its renewable energy footprint. NextEra Energy projects the addition of nearly 76.6-107.6 gigawatts (“GW”) of renewable generation capacity between 2026 and 2032 and currently has a renewable development backlog exceeding 33 GW. supporting long-term growth and revenue visibility.
Renewable energy also offers economic advantages, as wind and solar resources are not subject to fuel price fluctuations. Technological advancements over the past decade have significantly reduced generation costs, enhancing the competitiveness of renewables. Long-term power purchase agreements provide stable and predictable cash flows, while investments in battery storage improve grid reliability and open additional revenue streams.
NextEra Energy’s leadership in renewable energy further strengthens its competitive position. Favorable government policies, including tax incentives and decarbonization initiatives, continue to support industry growth. Through sustained investment in clean energy infrastructure, the company remains well-positioned to benefit from the global energy transition and deliver long-term value to its shareholders.
Other Utilities Expanding Renewable Energy PortfoliosUtilities are expanding their use of clean energy sources, including wind, solar, hydro and nuclear power, while decreasing dependence on fossil fuels. This shift is reducing carbon emissions, supporting environmental goals and helping utilities comply with increasingly stringent regulations.
Duke Energy (DUK - Free Report) and The Southern Company (SO - Free Report) present compelling investment opportunities, supported by their regulated utility businesses and commitment to the clean energy transition. The companies continue to invest in renewable energy projects, nuclear generation, grid upgrades and other low-carbon initiatives aimed at lowering carbon emissions and improving sustainability. These strategic investments are expected to strengthen system reliability and support long-term earnings growth while meeting the rising demand for cleaner sources of electricity.
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.09%.
Image Source: Zacks Investment Research
NEE’s Price PerformanceShares of NextEra Energy have gained 7.8% in the past six months compared with the industry’s rally of 6.6%.
Image Source: Zacks Investment Research
NextEra Energy’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.84%, respectively.
Image Source: Zacks Investment Research
NEE's Zacks RankNextEra currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) ended the recent trading session at $86.75, demonstrating a +1.19% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Coming into today, shares of the parent company of Florida Power & Light Co. had lost 2.88% in the past month. In that same time, the Utilities sector gained 0.52%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company is predicted to post an EPS of $1.13, indicating a 7.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.97 billion, indicating a 18.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.01 per share and a revenue of $31.89 billion, demonstrating changes of +8.09% and +16.34%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Currently, NextEra Energy is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 21.37. This signifies a premium in comparison to the average Forward P/E of 17.86 for its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
NextEra Energy (NYSE:NEE | NEE Price Prediction) is a stock built to be owned for decades, because it pairs the most predictable cash-generating asset in American business (a regulated monopoly utility) with the largest renewable generation platform on the planet, both compounding into a tailwind that does not turn off.
At $86.75 against a 52-week high of $98.03, a trailing P/E of 22, and a beta of 0.671, the entry price is reasonable in a market where defensives have repriced. This is a long-term position.
Pillar 1: Durability The business is structurally protected. Florida Power & Light is the largest regulated electric utility in the United States by retail electricity produced, operating in the world’s 15th largest economy, a state forecast to grow GDP at 4.7% annually through 2040. FPL added nearly 100,000 customers in Q1 2026 alone, and a newly approved four-year rate agreement underwrites $90 billion to $100 billion of infrastructure investment through 2032 at typical residential bill growth of just ~2% annually. Alongside FPL sits NextEra Energy Resources, the world’s largest generator of wind and solar, with a 33 GW backlog and a service area spanning 49 states.
Pillar 2: Income and compounding NEE has paid a dividend every quarter since at least 1999. The quarterly payout has climbed from $0.4675 in 2023 to $0.5665 in 2025, and management guides dividend per share growth of roughly 10% per year through 2026 and 6% per year from year-end 2026 through 2028. The earnings engine behind those checks is 8%+ adjusted EPS CAGR through 2032, with the same rate targeted through 2035, off a $3.71 2025 base. Q1 2026 adjusted EPS rose 10% year over year to $1.09.
Pillar 3: Surviving the cycles Power demand runs through recessions, and it is now accelerating. CEO John Ketchum told investors “demand for electricity in this country is not slowing down. In fact, it’s accelerating.” NEE was selected by the U.S. Department of Commerce to build 9.5 GW of new gas-fired generation under the U.S.-Japan trade deal, is recommissioning the 615 MW Duane Arnold nuclear plant under a 25-year PPA with Google, and is operating over 30 data center hubs. Total assets stand at $221.4 billion with $55.2 billion of equity behind a $43 billion interest rate hedging program.
When it lags NEE underperforms in sharply rising-rate environments. It is capital intensive, with $24.6 billion in FY2025 capex, and Q4 2025 adjusted EPS missed consensus at $0.54 versus $0.92. That volatility is the price of admission. The forever thesis rests on regulated rate base growth, multi-decade contracted renewables, and structural electricity demand, none of which depend on the next Federal Reserve meeting.
For long-term holders, the thesis rests on compounding the dividend rather than tracking the daily quote.
Key Takeaways NextEra Energy shows stronger 2026-2027 EPS growth estimates than Southern Company.NEE has lower debt-to-capital, higher ROIC and a larger capital investment plan through 2030.NextEra Energy's shares gained 22.6% in a year, outperforming SO's 2.6% rise. Stocks operating in the Zacks Utility-Electric Power industry present an attractive investment opportunity, supported by stable cash flows and the predictability of regulated business models. Most utilities benefit from long-term power purchase agreements that provide revenue stability and reduce exposure to economic fluctuations. Growing electricity demand and continued infrastructure investments are enhancing operational efficiency, enabling these companies to generate consistent earnings and sustain dependable dividend payouts.
NextEra Energy Inc. (NEE - Free Report) and The Southern Company (SO - Free Report) are two of the leading U.S. electric utilities that are making significant investments in renewable energy, positioning themselves at the forefront of the transition to cleaner power generation. As decarbonization efforts gain momentum, utilities that embrace renewable and low-carbon technologies stand to benefit from lower fuel-cost volatility, broader market opportunities and stronger long-term growth prospects, making them increasingly attractive to both institutional and retail investors.
NextEra Energy is a leading utility company with strong growth prospects driven by its expanding clean energy portfolio and stable regulated operations. Its Florida Power & Light business generates reliable cash flows under a regulated framework, while NextEra Energy Resources remains a leader in wind, solar and battery storage projects. Backed by disciplined capital allocation and a strong commitment to decarbonization, the company is well positioned to benefit from the ongoing transition to cleaner energy.
Southern Company offers attractive long-term value through its regulated utility operations, diversified generation portfolio and consistent dividend growth. Its investments in nuclear power and renewable energy support a proactive decarbonization strategy, positioning the company to benefit from the ongoing energy transition.
As both Southern Company and NextEra Energy are leading utility players, comparing their fundamentals can help determine the more compelling investment opportunity.
NEE & SO’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2026 and 2027 indicates year-over-year growth of 8.09% and 8.84%, respectively. Long-term (three to five years) earnings growth per share is pegged at 8.51%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Southern Company’s earnings per share in 2026 and 2027 indicates year-over-year growth of 6.51% and 7.45%, respectively. Long-term growth per share is pegged at 7.23%.
Image Source: Zacks Investment Research
Debt to CapitalThe Zacks Utilities sector is a capital-intensive one, and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Therefore, utilities borrow from the market and add it to their internal cash generation to fund the long-term investments. The current interest rate of 3.5% and prospects of further decline by the end of this year will be beneficial for the capital-intensive utilities.
NEE’s debt-to-capital currently stands at 61.04% compared with SO’s 64.61%.
Image Source: Zacks Investment Research
Return on Invested CapitalReturn on Equity (“ROIC”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
NEE’s current ROIC is 3.69% compared with SO’s 3.38% and the industry’s 3.68%.
Image Source: Zacks Investment Research
ValuationNextEra Energy currently appears to be trading at a marginal premium compared with Southern Company on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE is currently trading at 20.77X, while SO is trading at 19.64X compared with the industry’s 15.61X.
Image Source: Zacks Investment Research
NEE & SO’s Dividend YieldDividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company’s financial health and stability, often signaling strong cash flow and consistent earnings. Utilities are known for regular dividend payments to their shareholders.
Currently, the dividend yield for NextEra Energy is 2.87%, while the same for Southern Company is 3.27%.
NEE & SO’s Capital InvestmentNextEra Energy plans more than $94.1 billion in capital investment through 2030 to expand clean energy capacity. Southern Company plans to invest $78.1 billion in capital expenditures through 2030 to strengthen its operations.
Both companies are investing in their generation to meet the rising demand, modernize the grid and upgrade the infrastructure to provide reliable round-the-clock electricity to customers.
Price PerformanceSouthern Company’s shares have gained 2.6% in the past year compared with NextEra Energy’s rally of 22.6%.
Image Source: Zacks Investment Research
Rounding UpNextEra Energy and Southern Company are strategically investing in their infrastructure to serve millions of customers more efficiently and reliably.
Per the above discussion, NextEra Energy is having a clear edge over Southern Company, given its better earnings estimates movement, higher ROIC, stronger price performance and elaborate capital expenditure.
Despite the fact that Southern Company is trading at a cheaper valuation than NextEra Energy, our choice is the latter, currently having a Zacks Rank #2 ( Buy), while the former has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OAKLAND, Calif., June 17, 2026 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced a simplified operating structure designed to streamline leadership oversight, align resources to drive the company's strongest growth opportunities, advance portfolio optimization efforts and support faster execution across the enterprise to improve business performance.
Deere (DE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this agricultural equipment manufacturer have returned +11.4%, compared to the Zacks S&P 500 composite's +2% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has gained 5.3%. The key question now is: What could be the stock's future direction?
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 EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Deere is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -6%.
For the current fiscal year, the consensus earnings estimate of $18.13 points to a change of -2% from the prior year. Over the last 30 days, this estimate has changed +0.7%.
For the next fiscal year, the consensus earnings estimate of $22.81 indicates a change of +25.8% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Deere, the consensus sales estimate of $10.83 billion for the current quarter points to a year-over-year change of +4.6%. The $41.41 billion and $44.96 billion estimates for the current and next fiscal years indicate changes of +6.4% and +8.6%, respectively.
Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.
Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded D on this front, indicating that it is trading at a premium to 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 Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Deere (DE - Free Report) ended the recent trading session at $598.59, demonstrating a +1.59% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.37%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 1.33%.
The agricultural equipment manufacturer's stock has climbed by 11.36% in the past month, exceeding the Industrial Products sector's gain of 10.23% and the S&P 500's gain of 2.02%.
The upcoming earnings release of Deere will be of great interest to investors. The company is predicted to post an EPS of $4.82, indicating a 1.47% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.83 billion, indicating a 4.55% growth compared to the corresponding quarter of the prior year.
DE's full-year Zacks Consensus Estimates are calling for earnings of $18.13 per share and revenue of $41.41 billion. These results would represent year-over-year changes of -2% and +6.42%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.67% increase. As of now, Deere holds a Zacks Rank of #3 (Hold).
Looking at valuation, Deere is presently trading at a Forward P/E ratio of 32.5. This valuation marks a premium compared to its industry average Forward P/E of 21.03.
Investors should also note that DE has a PEG ratio of 2.18 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 105, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Oracle Corp. reduced its workforce by a wider scale than previously known, cutting 21,000 employees in the past 12 months. The reductions include jobs that were eliminated by the use of artificial intelligence.
German energy leader standardizes Java environment across 100+ applications and tens of thousands of desktops, eliminating Oracle licensing burden
SUNNYVALE, Calif.--(BUSINESS WIRE)--Azul, the trusted leader in enterprise Java for today’s AI and cloud-first world, today announced that EWE AG, one of Germany’s leading energy and infrastructure companies, has cut its Java licensing costs by 60% by migrating from Oracle Java to Azul Core — standardizing its fragmented Java environment across more than 100 applications and tens of thousands of desktop endpoints in the process.
“Azul’s support was fast, structured, highly competent and very uncomplicated. There was no problem that wasn’t immediately addressed.”
Share EWE AG provides critical infrastructure and energy services to more than two million customers. Java is deeply embedded across its operational and end-user systems, many of which support essential daily processes and cannot be easily replaced. Ensuring stability and consistency across this environment is central to business continuity.
Over time, however, EWE’s Java landscape became increasingly fragmented, with multiple versions and distributions in use across the organization. Legacy systems, including some still dependent on Java 6, which Oracle stopped supporting in December 2018, added further complexity. This environment created additional overhead for packaging, deployment, support and governance, while new Java instances continued to be introduced through incoming applications, increasing the need for standardization.
In addition, EWE, as an operator of critical energy infrastructure serving more than 2 million customers, is subject to the German BSI Act (BSIG) and its KRITIS framework, which requires operators of critical infrastructure to implement and demonstrate appropriate technical and organizational measures to ensure the security and availability of their IT systems.
The situation was further impacted when Oracle changed its Java licensing model in January 2023. What had previously been a manageable cost structure quickly became a significant budget concern.
“When Oracle Java changed the licensing metric, we realized it would become far more expensive for us,” said Sacha Massarra, license manager at EWE AG. “That was the moment we decided to move to an alternative.”
Evaluating options in a highly fragmented environment
As EWE assessed its options, it weighed the trade-offs between unsupported OpenJDK distributions and commercially supported platforms.
While free OpenJDK variants were available, EWE determined they would introduce substantial internal operational burden, particularly around patch management, version control and support escalation across a highly distributed environment. Given the scale and criticality of its systems, the organization required a stable, enterprise-supported Java platform.
“In a corporate environment, switching to a Java platform without support is not really an option,” said Massarra.
EWE selected Azul Core based on its enterprise support model, compatibility across legacy and modern Java environments, and ability to support older versions such as Java 6. The company also cited faster vendor responsiveness and a clearer path toward enterprise-wide standardization.
Phased migration enables controlled rollout across the enterprise
EWE implemented a phased migration approach, beginning with small rollout waves of approximately 50 to 200 devices. This allowed teams to validate application behavior early and identify issues before broader deployment.
As confidence increased, larger migration waves followed until the rollout was completed across the organization in approximately eight to nine months.
“If you reduce twenty different Java packages down to one, the internal support effort drops significantly,” said Gerold Frilling, license manager at EWE AG. “Azul’s support was fast, structured, highly competent and very uncomplicated. There was no problem that wasn’t immediately addressed.”
Results: simplified operations, standardized environment, and reduced cost
For EWE AG, the migration delivered both operational and financial outcomes, simplifying its Java estate while reducing cost and complexity across IT operations. Key results include:
Standardized Java environment across the enterprise, consolidating multiple distributions into a single supported standard across more than 100 applications and tens of thousands of endpoints, reducing complexity for IT operations, packaging, and support teams. 60% reduction in Java licensing costs, compared with the projected multi-million-euro cost of remaining on Oracle Java, achieved under a five-year agreement. Low-risk, phased migration across the organization, with even the most complex application migrations completed in approximately four hours. Improved operational efficiency and support experience, with EWE citing Azul’s responsiveness, technical competence and ease of collaboration throughout the migration process. Reduced environmental and compute overhead, supporting EWE’s broader sustainability objectives as an energy provider focused on efficiency and resource optimization. “Nobody needs Oracle Java anymore. If you need support, the clear answer is: switch to Azul,” said Massarra.
“EWE AG’s transformation demonstrates the operational impact of Java fragmentation at enterprise scale,” said James Johnston, vice president of EMEA at Azul. “By consolidating a highly distributed Java estate under a single supported platform, they significantly reduced complexity across critical systems while also lowering costs and improving operational control. This type of standardization is becoming increasingly important as enterprise Java environments grow more diverse and distributed.”
Learn more about Azul Core here.
FAQs
How much can enterprises save by migrating from Oracle Java to Azul Core?
Savings vary based on environment size and complexity. In EWE AG’s case, Java licensing costs were reduced by 96% after migrating from Oracle Java to Azul Core. The company standardized more than 100 applications across tens of thousands of endpoints, replacing a projected multi-million-euro Oracle cost structure with a predictable five-year agreement.
Can large enterprises migrate from Oracle Java without disrupting operations?
Yes. EWE AG completed its migration in approximately eight to nine months using a phased rollout approach. Initial waves of 50 to 200 devices enabled early validation before scaling across the enterprise. Even complex applications were migrated in approximately four hours.
Why choose a commercially supported OpenJDK distribution over a free alternative?
Free OpenJDK distributions typically lack enterprise support, structured patching and service-level guarantees. EWE AG evaluated these options but determined that managing updates and support internally across a fragmented environment — including legacy Java 6 systems — would create significant operational overhead. Azul Core provides enterprise-grade support and compatibility across both legacy and modern workloads.
About Azul
Azul is the trusted leader in enterprise Java for today’s AI and cloud-first world. Its open source-based Java platform empowers organizations to optimize the entire Java lifecycle to accelerate performance, strengthen security, reduce licensing and cloud costs, and boost developer productivity. Azul powers mission-critical systems for 36% of the Fortune 100, 50% of the Forbes Top 10 World’s Most Valuable Brands, and the world’s top 10 financial trading companies. Learn more at azul.com and follow @azulsystems.
Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) continues to advance its Lion Zone discovery at the Nisk project in Québec, with recent drilling further refining the geometry of the deposit and strengthening confidence ahead of a maiden Mineral Resource Estimate (MRE) expected at the end of July, according to analysts at Hannam & Partners.
The broker highlighted new infill results from the Winter 2026 program as supporting both grade continuity and near-surface mineralization along the western margin of the Lion Zone.
Key intercepts include 13.3 metres at 3.98% copper equivalent from 25 metres below surface (PML-26-115), including 3.8 metres at 9.36%, as well as 5.26 metres at 8.45% copper equivalent (PML-26-105) at approximately 140 metres depth.
Hannam & Partners said the latest drilling adds to a growing body of high-grade shallow intercepts at Lion, reinforcing confidence in the deposit’s continuity and geometry ahead of resource definition.
The firm noted that the results contribute to an improving dataset that supports the potential delineation of an initial starter pit, given the combination of shallow mineralization, strong grades and previously reported metallurgical recoveries.
The analyst also pointed to earlier 2026 drill results that have consistently demonstrated high-grade continuity across the system, including intercepts such as 16.6 metres at 15.11% copper equivalent, 22 metres at 11.5% copper equivalent, and 39 metres at 5.66% copper equivalent over roughly 200 metres of strike. Hannam & Partners said this combination of grade, width and continuity supports the potential for an Indicated resource classification in the upcoming MRE.
In addition, the broker noted deeper mineralization extending to around 600 metres vertical depth, indicating system scale beyond the near-surface high-grade zones.
Near-term catalysts highlighted include remaining Winter 2026 assay results, the expected July MRE, and a preliminary economic assessment (PEA) anticipated in the second half of 2026.
Hannam & Partners maintained its valuation framework for Power Metallic, including a target price of C$2.38 per share, implying 131% upside, based on a provisional resource estimate at Lion and a discounted cash flow assessment of the broader Nisk project.
The firm said further upside could emerge as the company advances through resource definition and economic studies.
OpenAI's ChatGPT has been one of the fastest-adopted consumer products in history. Since its launch in late 2022, weekly active users have reached nearly 1 billion. A March funding round valued the company at $852 billion. It could already be worth $1 trillion on the private market, given high investor demand to own the leading AI companies and ChatGPT's growth.
While you can't buy shares of OpenAI on the public market yet, there are three stocks you can buy today that are directly involved with OpenAI.
Image source: Getty Images.
Microsoft Microsoft (MSFT +1.96%) has invested $13 billion in OpenAI. This investment allows the software giant access to OpenAI's models for use across its own products. This is helping drive demand for Microsoft Azure and its Copilot AI assistant.
As part of their April agreement, Microsoft will remain OpenAI's primary cloud partner, with royalty-free access to OpenAI's frontier models through 2032. So far, this partnership has been a game changer for Microsoft. Its revenue grew 18% year over year in the recent quarter. Its AI business alone reached $37 billion on an annualized basis, more than doubling year over year.
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Microsoft offers multiple models in its Foundry platform (formerly Azure AI Foundry). Anthropic's Claude and ChatGPT are seeing massive adoption in Foundry. Microsoft says the number of customers using these models doubled over the year-ago quarter.
This makes Microsoft a solid stock to benefit from demand for OpenAI's models, particularly on the enterprise side. Microsoft Azure is the second-leading cloud platform behind Amazon. The company's cloud leadership is undervalued at the moment, with the shares trading at an attractive 19 times next year's earnings estimate.
Nvidia In September of 2025, Nvidia (NVDA 3.99%) announced it would deploy at least 10 gigawatts worth of computing systems to help OpenAI train and run its next-generation models to achieve superintelligence. As part of the deal, Nvidia said it intended to invest up to $100 billion in OpenAI as its products are deployed. The first phase of deployment is set for the second half of this year when Nvidia launches its next-generation Vera Rubin chips.
Nvidia's business strategy is to partner with as many AI companies as possible to accelerate the adoption of its graphics processing units (GPUs) and other products. This deal with one of the leading AI companies solidifies Nvidia's standing in the AI infrastructure supply chain.
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Demand for Nvidia's data center GPUs remains incredibly strong. It reported a 85% year-over-year increase in revenue last quarter, reaching a record $82 billion. Nvidia's Blackwell GB300 chips are the benchmark for large AI workloads and have been widely deployed by the leading cloud service providers, including Microsoft.
Its upcoming Vera Rubin chips will be another major leap in performance, designed for advanced reasoning for agentic AI. The new chips are expected to start volume production in the third quarter. Analysts expect Nvidia's earnings to grow at an annualized rate of 45% over the coming years. Despite these catalysts, investors can buy Nvidia stock at a forward earnings multiple of 16 on next year's earnings estimate, which is a steal.
Oracle Oracle (ORCL 5.50%) is winning big deals from leading AI companies, including OpenAI, for cloud infrastructure. It also offers all the leading AI models, including ChatGPT, to its cloud customers, which is boosting demand.
Oracle's latest quarterly results showed a 21% year-over-year increase in revenue, reaching $19.2 billion. The cloud infrastructure business was the standout, with revenue growing 93% year over year to $5.8 billion.
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Oracle has signed large cloud deals with OpenAI, Meta Platforms, xAI, and other AI leaders, creating a massive contracted revenue backlog. Remaining performance obligations hit $638 billion last quarter, up 363% year over year.
This is the riskiest stock of the three, as Oracle has needed to issue debt to finance the build-out of additional data centers to fulfill its backlog. However, its cash from operations is soaring, reaching $32 billion on a trailing-12-month basis. Because of these growing cash flows, management said it won't need to issue any additional debt financing for the remainder of calendar 2026.
Looking ahead to next year, management expects revenue growth to accelerate to over 34% as it fulfills its backlog. This makes the stock's recent dip a compelling buying opportunity. The stock trades at a forward earnings multiple of 17 times next year's earnings estimate, which may undervalue its future growth.
Key Takeaways Oracle expects an AI-enabled Cerner system to lift Oracle Health growth into double digits in fiscal 2027.Oracle Health Clinical AI Agent has saved clinicians 200,000 documentation hours since launch.Oracle aims to turn early healthcare AI adoption into broader deployments across regions and facilities. Oracle (ORCL - Free Report) is deepening its push into healthcare artificial intelligence, positioning Oracle Health as a structural growth driver within its broader applications portfolio. A forthcoming AI-enabled version of Oracle's Cerner patient care management system is expected to lift Oracle Health's growth rate into double-digit territory in fiscal 2027. The company is also expanding its healthcare AI capabilities through AI molecular design tools and an AI clinical trial platform aimed at accelerating regulatory review processes.
Adoption remains a key indicator. Oracle Health Clinical AI Agent, which automates clinical note drafting and order creation through ambient listening, has expanded beyond ambulatory care into inpatient and emergency department workflows and supports over 30 medical specialties. Since launch, the solution has helped clinicians save over 200,000 documentation hours. At one deployment site, it generated more than 80,000 notes across 18 specialties while reducing documentation time per patient by nearly 19%. Expansion into National Health Service trusts in the United Kingdom broadens Oracle's reach beyond the U.S. Department of Veterans Affairs, where deployments continue to scale.
However, large-scale healthcare AI rollouts carry technical and regulatory complexity and compete for capital alongside Oracle's broader infrastructure buildout. As Oracle expands clinical AI across additional care settings and geographies, the company's ability to convert early adoption into broader healthcare deployment will likely determine whether adoption momentum strengthens further.
ORCL Faces Stiff CompetitionOracle faces growing competition in healthcare AI from Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) , both of which are expanding AI capabilities across clinical documentation, healthcare data management and provider workflows.
Microsoft has strengthened its healthcare presence through Nuance's ambient clinical intelligence offerings, now branded Dragon Copilot, while Alphabet continues to invest in healthcare-focused AI models and cloud-based data platforms. As healthcare organizations accelerate digital transformation initiatives, Microsoft and Alphabet remain key competitors in the race to embed AI across clinical workflows. However, Oracle's combination of electronic health records, healthcare applications and cloud infrastructure could help it differentiate its offerings in the evolving healthcare AI market.
ORCL’s Price Performance, Valuation & EstimatesShares of Oracle have lost 10.2% year to date against the Zacks Computer and Technology sector’s return of 20% and the Zacks Computer - Software industry’s decline of 21.6%.
ORCL’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ORCL stock is currently trading at a discount with a forward 12-month Price/Sales ratio of 5.53X, which is lower than the industry average of 6.16X. Oracle carries a Value Score of C.
ORCL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ORCL’s fiscal 2027 earnings is pegged at $8.03 per share, marking an upward revision of 4 cents over the past 30 days. The earnings figure suggests 5.24% growth over the figure reported in fiscal 2026.
ORCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle Corp (NYSE:ORCL, XETRA:ORC) has reduced its workforce by about 21,000 employees over the past year, citing the deployment of artificial intelligence technologies across its operations, according to its annual filing.
The software and cloud company employed approximately 141,000 full-time workers as of May 31, 2026, compared with about 162,000 a year earlier, a decline of nearly 13%.
"The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," Oracle said in the filing.
Oracle reported $1.8 billion in restructuring costs during the fiscal year, including severance payments and other exit expenses, up from $374 million in the prior year.
The company noted that workforce reductions can be disruptive and may lead to lower productivity, shortages of skilled employees in some roles, loss of institutional knowledge, and weaker employee morale and retention.
Oracle had informed employees in March that it planned to eliminate thousands of positions as it faced investor scrutiny over increased borrowing to support its AI infrastructure expansion. In January, the company announced plans to raise $50 billion through debt and equity financing.
Capital expenditures rose 162% in the latest fiscal year to $55.7 billion, while free cash flow was negative $23.7 billion.
Shares of Oracle traded down almost 3% at Tuesday’s opening bell, down about 13% so far this year.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
The global potash industry has long operated within a narrow circle of dominant producers. As demand grows and supply chain vulnerabilities come into sharper focus, the search for reliable new sources is intensifying. Farhad Abasov, chairman and director of Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF, FRA:XOD), makes the case for why Gabon deserves a closer look.
For decades, the global potash sector has been shaped by a small number of producing nations led by Canada, Russia and Belarus, whose resources play a critical role in supporting agricultural production worldwide.
As demand for potash continues to increase and governments place greater emphasis on developing resilient supply chains, new sources of supply from stable regions outside major conflict zones are needed. Of all the emerging jurisdictions seeking to develop their fertilizer industries, Gabon offers a unique combination of promising geological prospects, a strategic location and ongoing infrastructure development.
Positioned along the Atlantic coast of Central Africa, Gabon is an emerging player on the global potash scene. The country possesses many of the characteristics industry insiders look for when evaluating the next generation of potash-producing regions.
As part of its mining sector strategy, President Brice Clotaire Oligui Nguema has made mining a strategic pillar of the country’s economic diversification efforts.
“It is important to highlight that Gabon is endowed with significant mineral resources, including potash. Potash represents a key resource in a global context marked by strong demand for agricultural inputs and the need to secure supply chains,” says Sosthène Nguema Nguema, Gabon’s Minister of Mines and Geological Resources.
The geological opportunity Gabon represents one of the most prospective yet undeveloped potash basins on Earth. While exploration remains relatively limited compared with more established regions, data to date indicate enormous potential for large-scale potash mining.
In a recent Forbes Africa article examining the country’s emerging potash sector, Agricultural Business Chamber of South Africa economist Thapelo Machaba observed that “Gabon’s strength isn’t just what’s been discovered. It’s how little of the land has actually been explored.” She further suggested that the country’s resources could ultimately exceed 10 billion tonnes, highlighting the significant geological potential that remains to be evaluated.
For investors and industry participants, geology alone is never enough. Equally important is the ability to move product efficiently to the right markets. This is where Gabon possesses another significant advantage.
Atlantic access and global markets Unlike many inland potash projects around the world, Gabon’s potash resources are located directly on the Atlantic coast. Geography may ultimately prove to be one of the country’s greatest strengths.
As Forbes Africa noted, “Sail directly west from Gabon’s coastline, and you’ll end up in Brazil.”
With imports estimated at approximately 13 million tonnes annually, Brazil is the world’s largest potash importer. The opportunity to supply one of the world’s largest agricultural markets, along with the United States, another major potash-consuming nation, through direct Atlantic shipping routes provides a natural competitive advantage that few emerging potash jurisdictions can match.
Today, shipping routes are more relevant than ever. Recent global supply chain disruptions have reminded governments and corporations that supply chains can be easily affected by geopolitics, regional conflicts and transportation bottlenecks. Once again, Gabon holds an exceptional position because shipping routes between Gabon and key markets avoid major maritime chokepoints, requiring no passage through canals, narrow straits or foreign territories.
It is no accident that the US International Development Finance Corporation has supported potash development in Gabon, particularly as the US government has recently added potash to its critical minerals list.
As supply chain resilience becomes an increasingly important priority for the global economy, the ability to access major agricultural markets directly offers value beyond transportation costs alone.
Building the infrastructure for growth Another factor supporting Gabon’s rise is its expanding infrastructure base. Across the country, investments in ports, energy and transportation networks are helping create the foundation needed for future industrial development. Successful mining jurisdictions require not only resources but also the infrastructure necessary to bring those resources to market.
Government support also plays an important role. Gabon has demonstrated a strong commitment to promoting investment and economic diversification in recent years. A key component of that strategy is the development of the mining industry, which continues to attract growing interest from foreign investors and resource companies.
“Gabon is committed to supporting serious and responsible mining investors who are engaged for the long term while respecting environmental standards and sustainable development principles,” says Ghislain Moandza Mboma, Director General of Gabon’s National Investment Promotion Agency (ANPI), the government agency responsible for attracting foreign investment, facilitating strategic projects and advancing the country’s economic development agenda.
Gabon offers something increasingly valuable in today’s resource sector: a combination of geological potential and strategic positioning. Many countries possess one or the other. Few possess both.
As the world looks to future potash supplies, resource size and grade will be important, but so too will market access, infrastructure, government support and logistics. Nations that can demonstrate a favourable combination of these factors are likely to attract the greatest investment and long-term development.
Strategic jurisdiction for the future “Gabon is committed to supporting long-term mining investors who operate in compliance with environmental standards and sustainable development principles,” says Minister Nguema Nguema. “Companies such as Millennial Potash are fully aligned with this vision, contributing to strengthening Gabon’s attractiveness as a leading mining destination and positioning the country as a future major player in Africa’s mining sector.”
Global potash supply has been dominated by a handful of major producers for decades, and that is likely to continue for the foreseeable future. Nevertheless, the industry will require new sources of supply to support global agricultural growth and meet rising demand for potash.
Gabon possesses many of the ingredients necessary for significant growth in its potash sector, including potentially world-class geology, access to Atlantic transportation infrastructure and proximity to key agricultural markets. While much work remains to be done, the foundations for a major new potash-producing jurisdiction appear to be steadily falling into place.
JUNE 22, 2026The report said Oracle's workforce now stands at 141,000 full-time employees—down from 162,000 one year ago—and admitted that the AI-centered restructuring "may continue to result in reductions to our workforce."
MAY 25, 2026The technology industry has cut over 123,000 jobs so far this year, Challenger, Gray & Christmas said, and AI is now the leading reason cited for job cuts—responsible for an estimated 38,579 in May and 87,714 year-to-date.
Tech is the “primary industry” citing AI for job cuts, Challenger said, and the 38,242 jobs cut in May is the most in a single month for the sector since August 2024.
MAY 25, 2026Nvidia CEO Jensen Huang called CEOs who blame AI for layoffs "lazy" and said it doesn't make sense from a businesses perspective that companies are already utilizing AI to such an extent people are being replaced: "I really hate that," he said.
MAY 20, 2026Cloudflare CEO Matthew Prince blames artificial intelligence for the decision to cut 20% of its global workforce, or 1,000 people, earlier this month, writing in an op-ed that the company has massively increased AI use in recent months and as a result, not longer needed middle managers, operations experts or parts of its auditing, finance, legal and compliance divisions.
MAY 18, 2026Meta, which will lay off 10% of its workforce Wednesday in a previously announced cut to jobs, tells 7,000 employees they will be reassigned to focus on artificial intelligence initiatives that “will make us more productive and make the work more rewarding,” Janelle Gale, Meta’s head of human resources, said in an internal memo.
MAY 13, 2026Cisco Systems announces it will cut 4,000 jobs and openly admits the layoffs are due to AI adoption at the company.
MAY 11, 2026General Motors lays off between 500 and 600 information technology workers and while the company declined to comment on if AI played a role when asked by CNBC, one unnamed employee said the company plans to replace some of the fired workers with new employees with an AI skill set and another said the company is “going to push AI for everyday work and everything else.”
MAY 6, 2026Armstrong, in an email to Coinbase employees Tuesday, blames a "volatile" crypto market and AI for the roughly 700 job cuts, explaining that some teams will be cut down to singular people expected to do the same job of many with the help of AI agents, directing remaining employees to "leverage AI across every facet of our jobs."
APRIL 23, 2026Meta will layoff 10% of its workforce and won't hire workers for 6,000 open jobs in hopes of offsetting the money it's spending to integrate artificial intelligence into the company. Meta’s announced job cuts, roughly 8,000 scheduled for May 20, are part of a plan initially reported by Reuters to layoff what could amount to more than 20% of the company (which employs roughly 75,000 people) as it invests in AI and plans to utilize AI-assisted workers.
APRIL 15, 2026Billionaire Evan Spiegel tells employees of Snap, the parent company of social media app Snapchat, that 1,000 jobs would be cut because “rapid advancements in artificial intelligence” will allow the same work to be done by a smaller group of people. The move is expected to save the company $500 million by the second half of 2026.
MARCH 31, 2026 Oracle, founded by billionaire Larry Ellison, is cutting 20,000 to 30,000 employees as the company heavily invests in building out AI infrastructure.
MARCH 25, 2026 Meta, led by the world's fifth-richest-person Mark Zuckerberg, lays off 700 people, the New York Times reported, in cuts that "underline how much A.I. has changed the tech industry."
MARCH 19, 2026Crypto.com lays off 12%, or about 180, of its employees as it integrates "enterprise-wide AI," with CEO Kris Marszalek explaining the jobs that were cut were "roles that do not adapt in our new world."
MARCH 11, 2026Software company Atlassian cuts roughly 10% of its workforce—1,600 people—in order to “self-fund further investment in AI,” with co-founder Mike Cannon-Brookes saying he "fundamentally believes people and AI create the best outcomes.”
FEB. 26, 2026Block, billionaire Jack Dorsey's company, cuts more than 4,000 jobs (almost half the company’s staff) in a major restructuring to integrate AI and create smaller, faster teams.
FEB. 25, 2026Software company WiseTech Global says it’s eliminating about one-third of employees (2,000 jobs) over the next two years to restructure around artificial intelligence.
FEB. 9, 2026 It is first reported that Salesforce laid off fewer than 1,000 people in marketing, product management, data analytics and the company's Agentforce AI product at the start of the year, cuts that came about six months after Salesforce CEO and billionaire Marc Benioff blamed AI for axing 4,000 support staff jobs.
JAN. 27, 2026 Social media platform Pinterest says it would cut about 15% of its workforce (about 800 people based on a headcount of 5,200 at the end of 2025) to reallocate money toward AI-focused roles, sending its stock tumbling nearly 10%.
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“In short: AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era,” Armstrong, Coinbase CEO, said. “This is a new way of working, and we need to leverage AI across every facet of our jobs.”
87,714. That’s how many layoffs have been blamed on AI so far this year, according to career services firm Challenger, Gray and Christmas. AI was cited for almost 55,000 cuts in 2025.
Tech CEOs have recently warned middle management and white collar jobs are likely to be the most vulnerable in the AI renaissance. Billionaire Dario Amodei, founder and CEO of AI giant Anthropic, last year said artificial intelligence could wipe out half of all entry-level white-collar jobs and send unemployment soaring. He accused AI companies and government officials of "sugar-coating" the reality that mass job eliminations are likely coming in technology, finance, law and other sectors. Dorsey and former Sequoia managing partner Roelof Botha last month said they think AI can do much of what middle managers, or about 12% of the workforce, do today. Just Capital, a nonprofit that conducts business-related polling, this week said one-third of the public worries about significant layoffs due to AI displacing roles. More than half of corporate leaders polled said they think hiring will slow for entry-level positions in the coming years, and that remaining jobs will require employees to be more skilled than before. Other analysis suggests tech jobs are much more at risk than roles in other sectors. America’s Census Bureau estimates that companies in tech-heavy areas like San Francisco, Boston and Seattle are using AI at a much higher rate than the rest of the country.
The National Association of Colleges and Employers says new grads aren’t having as hard of a time finding entry-level jobs as predicted. The association's annual survey, out in April, shows employers expect to boost new-graduate hires by 5.6% this spring from a year ago. Unemployment among 20- to 24-year-olds with bachelor’s degrees and higher also dropped in March, to 5.3% from 8.9% last fall. Benioff said Salesforce is currently hiring 1,000 new graduates and interns right now to "ride the AI exponential." “They said AI would kill entry-level jobs. Meanwhile these grads & interns are building it — powering Agentforce & Headless360 at Salesforce,” Benioff said. Billionaire OpenAI CEO Sam Altman recently criticized companies for "AI washing" by blaming unrelated layoffs on artificial intelligence.
A Chinese court recently said companies aren't allowed to replace or demote employees just because artificial intelligence systems are now able to do the same jobs. The ruling is similar to another in the country several months ago that decided AI implementation is not a good enough reason to end an employee contract.
The prevailing views on Oracle (ORCL 5.50%) stock remain relentlessly negative. After the stock's brief spike last September, investors turned on the company because its massive backlog is partially backed by a $300 billion deal with ChatGPT parent OpenAI, and many investors continue to question whether that company can meet the terms of its contract with Oracle.
Although its stock has begun to recover from the 52-week low, Oracle is still down 44% from its peak. Consequently, the question for investors is whether the pullback makes Oracle a buy or whether they should remain negative on the cloud stock.
Image source: The Motley Fool.
Where Oracle's AI stands It has now been more than nine months since Oracle's report for the first quarter of fiscal 2026 (ended Aug. 31, 2025). At the time, its remaining performance obligation (backlog) in fiscal Q1 had risen from $138 billion to $455 billion, a 230% increase in a single quarter.
Most of that gain came from the aforementioned deal with OpenAI. Investors began to question whether OpenAI was in a position financially to live up to the terms of that deal, and all the stock gains driven by it reversed in subsequent weeks.
Admittedly, investors have to consider more than the potential revenue losses. In order to fund its artificial intelligence (AI) build-out, Oracle has taken on almost $130 billion in debt, a staggering sum considering its $43 billion in stockholders' equity. Oracle needed that cash to fund its nearly $56 billion in capital expenditures during fiscal 2026 to help fund its AI expansion.
Amid that debt, Oracle could face considerable pain if its borrowing does not lead to more business. That risk has probably played a role in Oracle's stock price decline.
Still, its backlog has now risen to $638 billion. That growth amounts to 62% of the size of the OpenAI deal in just the past nine months. That points to continued strong backlog growth, so much so that Oracle will likely maintain a solid AI infrastructure business even if the worst fears about OpenAI materialize.
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Moreover, Oracle's P/E ratio is at 32, far below its peak of 76 last September and slightly under the 34 average over the last five years. Considering the growth in AI, one could argue that Oracle stock trades at a reasonable valuation.
Although Oracle stock could continue moving lower, Oracle is likely a buying opportunity -- if you can handle the risk. Indeed, its nearly $130 billion in debt could place Oracle in dire financial straits if the anticipated demand for AI infrastructure does not materialize.
However, the massive growth of Oracle's backlog (even without OpenAI) indicates that companies need more of its AI infrastructure. It could pay in the long term to start acquiring shares at current levels.
4:15pm: AI trade loses momentum Wall Street ended sharply lower on Tuesday as investors pulled back from the artificial intelligence trade, sending technology and semiconductor stocks tumbling and dragging the broader market lower.
The Nasdaq led the declines, falling 580 points, or 2.2%, to 25,587 as heavyweight chipmakers came under pressure ahead of key earnings reports. The S&P 500 dropped 107 points, or 1.4%, to 7,365, while the Dow Jones proved more resilient, slipping just 46 points, or 0.1%, to 51,667.
The selloff was concentrated in the technology sector, where concerns about AI-related spending and lofty valuations weighed on sentiment. Chip stocks were among the hardest hit, with Nvidia falling more than 4%, while Micron Technology plunged more than 13% ahead of its quarterly results due Wednesday. AMD and Intel also posted steep declines as investors reassessed expectations for the sector.
The retreat in semiconductor shares marked a notable cooling of the AI-driven rally that has powered markets higher for much of the year, with traders taking profits and looking for fresh evidence that massive investments in artificial intelligence will continue to translate into strong earnings growth.
Investors will now turn their attention to earnings reports from FedEx and Cerebras after the closing bell, for further clues on corporate spending trends and the outlook for technology and logistics demand.
3:40pm: Proactive news headlines Virtuix Holdings Inc (NASDAQ:VTIX) launched Omni One for Quest, enabling its omnidirectional treadmill to work with Meta Quest 2 and Quest 3 headsets and expanding its reach through Meta’s XR ecosystem. Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) continues to advance its Lion Zone discovery at the Nisk project in Québec, with recent drilling results supporting resource growth and increasing confidence ahead of a maiden mineral resource estimate expected in July. Varon Corp (OTCID:OZSC)'s Ballislife Drink Inc announced that Egypt Dean, the son of Alicia Keys and Swizz Beatz, has made a seven-figure investment in Ballislife HYDRO, becoming a strategic partner in the sports hydration brand’s national expansion. NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF, FRA:FRA: NX5) said demand for its compostable coffee pod platform is accelerating as a distribution partner increases orders, adds brands and expands marketing efforts ahead of the peak sales season. 2:30pm: Market movers SpaceX Corp (NASDAQ:SPCX) shares rebounded 2.5% on Tuesday after a steep post-IPO selloff that erased more than $600 billion in market value, though the stock remains down nearly 16% from its recent debut. Carnival Corp (NYSE:CCL) shares dropped almost 6% after the cruise operator issued weaker-than-expected third-quarter profit guidance, overshadowing a second quarter that delivered record revenue and earnings above analyst forecasts. Oracle Corp (NYSE:ORCL, XETRA:ORC) said it reduced its workforce by about 21,000 employees over the past year, attributing the cuts in part to increased use of artificial intelligence across its business operations. 1:10pm: Oil falls, gold down "The price of oil falls further - to around $73 per barrel - its lowest level in nearly three months, following the US and Iran's signing of an interim peace deal and traffic through the Strait of Hormuz picking up again," IG's Axel Rudolph noted.
"Gold and especially silver - down around 4.5% on the day - are hit by increased US rate hike expectations and the greenback trading in one-year highs."
11:55am: SpaceX moves higher SpaceX Corp (NASDAQ:SPCX) (SpaceX Corp (NASDAQ:SPCX)) shares rose 2.5% on Tuesday, offering a partial reprieve after a brutal two-day selloff that wiped more than $600 billion from the rocket and satellite company's market value and marked one of the most dramatic reversals ever seen in a newly listed mega-cap stock.
The rebound follows a near-16% decline since the company's IPO earlier this month, pushing shares below their first-day opening price of $150 and threatening to pull the Elon Musk-led company's market capitalization below $2 trillion.
"SpaceX shedding more than $600 billion in value and over 30% from its post-IPO peak marks one of the most dramatic reversals ever seen in a newly listed mega-cap stock, dragging the whole technology sector down with it," said Axel Rudolph, chief technical analyst at IG.
Despite the turbulence, SpaceX shares remain roughly 10% above their $135 IPO price.
10:50am: Oracle to lay off more workers Oracle Corp (NYSE:ORCL, XETRA:ORC) has reduced its workforce by about 21,000 employees over the past year, citing the deployment of artificial intelligence technologies across its operations, according to its annual filing.
The software and cloud company employed approximately 141,000 full-time workers at the end of May, compared with about 162,000 a year earlier, a decline of nearly 13%.
Oracle had informed employees in March that it planned to eliminate thousands of positions as it faced investor scrutiny over increased borrowing to support its AI infrastructure expansion. In January, the company announced plans to raise $50 billion through debt and equity financing.
Shares of Oracle traded down almost 3% at Tuesday’s opening bell, down about 13% so far this year.
10am: Nasdaq opens 1.2% lower The Nasdaq has led an opening decline on Wall Street, slipping down 1.2% to add to yesterday's 1.3% drop.
The S&P 500 has slid 0.9% and the Dow Jones dipped just 0.15% so far.
Biggest fallers on the S&P are concentrated in the stocks that have led the AI and semiconductor rally, almost entirely chipmakers, semiconductor equipment suppliers and AI infrastructure names.
SanDisk is down 12.3%, with Micron down 10.5%, Corning falling 10.2%, then Lam Research, Teradyne, Applied Materials, KLA and Seagate all down around 8% or more.
Other major semiconductor names including Qualcomm, ON Semiconductor, Texas Instruments, AMD, Analog Devices, Microchip, NXP, Super Micro and Intel are all down between 5% and 9%.
As for the Dow, Caterpillar fell almost 4%, with Nvidia down 2.45%, followed by Honeywell, Cisco and Goldman Sachs all down at 1% or more, indicating investors are also rotating out of broader cyclical and industrial exposures.
IBM, up 4%, topped the early Dow leaderboard, with Sherwin-Williams, Merck, J&J and Walmart next.
8.30am: Tech sell-off expected to deepen US stocks looked set for a sharply weaker open on Tuesday as a sell-off in technology shares deepens across global markets.
Futures point to losses for the Nasdaq 100 of around 849 points, or 2.8%, while the S&P 500 is set to shed 1.3% and the Dow Jones to drop 0.4%.
The weakness follows a mixed session on Wall Street yesterday, when the Dow rose 148 points, or 0.3%, to 51,713, but the S&P 500 fell 0.4% to 7,473 and the Nasdaq dropped 1.3% to 26,167.
Alphabet dropped more than 5%, Amazon fell around 4% and Meta Platforms lost 2%, while Arm Holdings and Palantir both slid 7%.
The sell-off intensified in Asia, where South Korea's Kospi plunged 10%, Japan's Nikkei fell 3.6% and Hong Kong's Hang Seng lost 1.8%.
European markets also traded lower, with the Stoxx 600 down 0.9%, the DAX off 0.9% and the FTSE 100 falling 0.4%.
Investor sentiment has begun "to turn sour, particularly towards the tech sector", and this has morphed into "a significant selloff," said David Morrison, senior market analyst at Trade Nation.
But Kenny Polcari at Slatestone Wealth said it was "not a disaster, but a bit of pressure. Remember - the market has climbed by nearly 20% off of the April low."
He noted that of the 11 S&P sectors, six were higher and five lower, with communications getting hit the hardest on the back of a negative story about AI talent walking out the door at Google.
Technology actually finished 0.4% higher as investors dumped some of the largest names in the AI ecosystem but were "aggressively buying other parts of the AI trade, suggesting rotation not liquidation", as semiconductors rose and memory names continued to attract fresh money.
Daniela Hathorn, senior market analyst at Capital.com, said the decline in SpaceX has "weighed on broader confidence in high-growth, innovation-led stocks and reignited concerns that investors may have become overly concentrated in a small number of AI and technology themes". On a technical analysis basis, she said the "broader uptrend remains strong".
Oil continued to decline on the back of that potential peace deal with Iran, with WTI trading 40 cents lower at $73.43, down 19% since last week and 26% off May highs.
Oracle (ORCL, Financials) has been shrinking its workforce as it leans harder into AI and looks for ways to run more efficiently.
The company reduced its workforce by about 21,000 employees over the past year, bringing global headcount down to 141,000, according to the report.
The move shows the tradeoff many large tech companies are making right now. They are spending heavily on AI, but they are also looking for places where work can be automated, combined or removed.
For Oracle, the cuts come as its cloud business becomes a bigger part of the story. Demand for AI computing has helped lift interest in the company, but investors still want to see stronger efficiency and better margins.
The risk is that cutting too deeply can slow execution. The upside is that a leaner company may have more room to invest in areas that are growing faster.
Now investors will want to see whether the cuts make Oracle leaner without hurting its push for bigger cloud and AI deals.
Oracle (NYSE:ORCL | ORCL Price Prediction) at $175 looks compelling on the data. The stock has been pulled into the broader software compression trade even as its Q4 report revealed a $638 billion AI backlog that locks in years of forward revenue.
Oracle sells database software, enterprise applications such as Fusion and NetSuite, and Oracle Cloud Infrastructure (OCI), which has emerged as a serious hyperscaler challenger by winning large-scale AI training and inferencing contracts. The stock has compressed from a 52-week high of $343.01, dragged down with peers as investors worry that AI agents will erode traditional software subscriptions and that Oracle’s capital intensity will outrun its earnings power.
The $638 Billion Reason This Pullback Looks Like a Gift Q4 was a watershed. Cloud Infrastructure revenue grew 93% year over year to $5.79 billion, total cloud reached 52% of sales, and Remaining Performance Obligations jumped 363% to $638 billion, with $75 billion backed by customer-supplied or prepaid GPUs that reduce Oracle’s capital burden.
Management confirmed FY2027 revenue at $90 billion and raised non-GAAP EPS guidance to $8.05, with Q1 cloud growth guided to 58% to 64%. Mizuho reiterated Outperform with a $320 price target, calling the FY27 guide conservative.
The Capex Trap Bears Are Pricing In FY26 free cash flow came in at negative $23.69 billion against $55.66 billion of capex, and management plans to raise roughly $40 billion more in debt and equity in FY27 on top of $218.7 billion in total liabilities.
Oracle disclosed a 21,000 employee reduction, about 13% of the workforce, with $1.84 billion in severance costs. Software license revenue fell 2% in Q4, feeding the bear thesis that the legacy book is eroding faster than cloud can offset, with concentration risk in a handful of mega AI contracts.
Why Patient Capital Could Still Wait Here The hold case rests on visibility. Cash flow stays deeply negative through the buildout, and dilution from the planned $40 billion raise is a real overhang. A patient investor could wait for FCF to inflect or for proof that Q1 cloud growth lands inside the 58% to 64% guide before committing fresh capital.
The cost of that patience is missing the re-rating that typically follows when an RPO of this scale starts converting at scale.
What the Stock Actually Shows Shares trade at $175.07 against a consensus 12-month target of $252.64, implying meaningful upside if analysts are right. The breakdown across 43 covering analysts currently sits at:
Strong Buy: 6 Buy: 30 Hold: 6 Sell: 1 Oracle trades at roughly 23x forward earnings with FY27 EPS growth guided near 18%. ORCL is down 13.82% over the past year and 9.63% year to date, while the S&P 500 is up 25.26% and 9.16% over the same periods.
The Setup: Asymmetric Risk/Reward at $175 With a Floor Near $160 At $175, the risk/reward skews favorable. The path to appreciation is mechanical. A $638 billion structural backlog insulates earnings from macro multiple re-rating, and Q1 results landing inside the 27% to 29% revenue guide should force analysts to mark up FY28 estimates as the RPO conversion curve becomes visible.
Risk/reward at this price is asymmetric. With a historical value floor near $160, downside is roughly single digits while the consensus target implies a move back toward $252. Multicloud AI Database grew 404% in Q4, and AWS regions are scaling from eight to 22 by Q4, real evidence the backlog is becoming revenue.
What invalidates the thesis: a slip in cloud growth below the guided range, an unexpectedly dilutive equity raise, or a major AI customer renegotiating commitments. Watch FCF trajectory and Q1 cloud growth quarter by quarter.
Owning Oracle at $175 effectively means owning a hyperscaler-grade backlog at a software multiple while the rest of the market is busy selling the input costs.
4:15pm: AI trade loses momentum Wall Street ended sharply lower on Tuesday as investors pulled back from the artificial intelligence trade, sending technology and semiconductor stocks tumbling and dragging the broader market lower.
The Nasdaq led the declines, falling 580 points, or 2.2%, to 25,587 as heavyweight chipmakers came under pressure ahead of key earnings reports. The S&P 500 dropped 107 points, or 1.4%, to 7,365, while the Dow Jones proved more resilient, slipping just 46 points, or 0.1%, to 51,667.
The selloff was concentrated in the technology sector, where concerns about AI-related spending and lofty valuations weighed on sentiment. Chip stocks were among the hardest hit, with Nvidia falling more than 4%, while Micron Technology plunged more than 13% ahead of its quarterly results due Wednesday. AMD and Intel also posted steep declines as investors reassessed expectations for the sector.
The retreat in semiconductor shares marked a notable cooling of the AI-driven rally that has powered markets higher for much of the year, with traders taking profits and looking for fresh evidence that massive investments in artificial intelligence will continue to translate into strong earnings growth.
Investors will now turn their attention to earnings reports from FedEx and Cerebras after the closing bell, for further clues on corporate spending trends and the outlook for technology and logistics demand.
3:40pm: Proactive news headlines Virtuix Holdings Inc (NASDAQ:VTIX) launched Omni One for Quest, enabling its omnidirectional treadmill to work with Meta Quest 2 and Quest 3 headsets and expanding its reach through Meta’s XR ecosystem. Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) continues to advance its Lion Zone discovery at the Nisk project in Québec, with recent drilling results supporting resource growth and increasing confidence ahead of a maiden mineral resource estimate expected in July. Varon Corp (OTCID:OZSC)'s Ballislife Drink Inc announced that Egypt Dean, the son of Alicia Keys and Swizz Beatz, has made a seven-figure investment in Ballislife HYDRO, becoming a strategic partner in the sports hydration brand’s national expansion. NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF, FRA:FRA: NX5) said demand for its compostable coffee pod platform is accelerating as a distribution partner increases orders, adds brands and expands marketing efforts ahead of the peak sales season. 2:30pm: Market movers SpaceX Corp (NASDAQ:SPCX) shares rebounded 2.5% on Tuesday after a steep post-IPO selloff that erased more than $600 billion in market value, though the stock remains down nearly 16% from its recent debut. Carnival Corp (NYSE:CCL) shares dropped almost 6% after the cruise operator issued weaker-than-expected third-quarter profit guidance, overshadowing a second quarter that delivered record revenue and earnings above analyst forecasts. Oracle Corp (NYSE:ORCL, XETRA:ORC) said it reduced its workforce by about 21,000 employees over the past year, attributing the cuts in part to increased use of artificial intelligence across its business operations. 1:10pm: Oil falls, gold down "The price of oil falls further - to around $73 per barrel - its lowest level in nearly three months, following the US and Iran's signing of an interim peace deal and traffic through the Strait of Hormuz picking up again," IG's Axel Rudolph noted.
"Gold and especially silver - down around 4.5% on the day - are hit by increased US rate hike expectations and the greenback trading in one-year highs."
11:55am: SpaceX moves higher SpaceX Corp (NASDAQ:SPCX) (SpaceX Corp (NASDAQ:SPCX)) shares rose 2.5% on Tuesday, offering a partial reprieve after a brutal two-day selloff that wiped more than $600 billion from the rocket and satellite company's market value and marked one of the most dramatic reversals ever seen in a newly listed mega-cap stock.
The rebound follows a near-16% decline since the company's IPO earlier this month, pushing shares below their first-day opening price of $150 and threatening to pull the Elon Musk-led company's market capitalization below $2 trillion.
"SpaceX shedding more than $600 billion in value and over 30% from its post-IPO peak marks one of the most dramatic reversals ever seen in a newly listed mega-cap stock, dragging the whole technology sector down with it," said Axel Rudolph, chief technical analyst at IG.
Despite the turbulence, SpaceX shares remain roughly 10% above their $135 IPO price.
10:50am: Oracle to lay off more workers Oracle Corp (NYSE:ORCL, XETRA:ORC) has reduced its workforce by about 21,000 employees over the past year, citing the deployment of artificial intelligence technologies across its operations, according to its annual filing.
The software and cloud company employed approximately 141,000 full-time workers at the end of May, compared with about 162,000 a year earlier, a decline of nearly 13%.
Oracle had informed employees in March that it planned to eliminate thousands of positions as it faced investor scrutiny over increased borrowing to support its AI infrastructure expansion. In January, the company announced plans to raise $50 billion through debt and equity financing.
Shares of Oracle traded down almost 3% at Tuesday’s opening bell, down about 13% so far this year.
10am: Nasdaq opens 1.2% lower The Nasdaq has led an opening decline on Wall Street, slipping down 1.2% to add to yesterday's 1.3% drop.
The S&P 500 has slid 0.9% and the Dow Jones dipped just 0.15% so far.
Biggest fallers on the S&P are concentrated in the stocks that have led the AI and semiconductor rally, almost entirely chipmakers, semiconductor equipment suppliers and AI infrastructure names.
SanDisk is down 12.3%, with Micron down 10.5%, Corning falling 10.2%, then Lam Research, Teradyne, Applied Materials, KLA and Seagate all down around 8% or more.
Other major semiconductor names including Qualcomm, ON Semiconductor, Texas Instruments, AMD, Analog Devices, Microchip, NXP, Super Micro and Intel are all down between 5% and 9%.
As for the Dow, Caterpillar fell almost 4%, with Nvidia down 2.45%, followed by Honeywell, Cisco and Goldman Sachs all down at 1% or more, indicating investors are also rotating out of broader cyclical and industrial exposures.
IBM, up 4%, topped the early Dow leaderboard, with Sherwin-Williams, Merck, J&J and Walmart next.
8.30am: Tech sell-off expected to deepen US stocks looked set for a sharply weaker open on Tuesday as a sell-off in technology shares deepens across global markets.
Futures point to losses for the Nasdaq 100 of around 849 points, or 2.8%, while the S&P 500 is set to shed 1.3% and the Dow Jones to drop 0.4%.
The weakness follows a mixed session on Wall Street yesterday, when the Dow rose 148 points, or 0.3%, to 51,713, but the S&P 500 fell 0.4% to 7,473 and the Nasdaq dropped 1.3% to 26,167.
Alphabet dropped more than 5%, Amazon fell around 4% and Meta Platforms lost 2%, while Arm Holdings and Palantir both slid 7%.
The sell-off intensified in Asia, where South Korea's Kospi plunged 10%, Japan's Nikkei fell 3.6% and Hong Kong's Hang Seng lost 1.8%.
European markets also traded lower, with the Stoxx 600 down 0.9%, the DAX off 0.9% and the FTSE 100 falling 0.4%.
Investor sentiment has begun "to turn sour, particularly towards the tech sector", and this has morphed into "a significant selloff," said David Morrison, senior market analyst at Trade Nation.
But Kenny Polcari at Slatestone Wealth said it was "not a disaster, but a bit of pressure. Remember - the market has climbed by nearly 20% off of the April low."
He noted that of the 11 S&P sectors, six were higher and five lower, with communications getting hit the hardest on the back of a negative story about AI talent walking out the door at Google.
Technology actually finished 0.4% higher as investors dumped some of the largest names in the AI ecosystem but were "aggressively buying other parts of the AI trade, suggesting rotation not liquidation", as semiconductors rose and memory names continued to attract fresh money.
Daniela Hathorn, senior market analyst at Capital.com, said the decline in SpaceX has "weighed on broader confidence in high-growth, innovation-led stocks and reignited concerns that investors may have become overly concentrated in a small number of AI and technology themes". On a technical analysis basis, she said the "broader uptrend remains strong".
Oil continued to decline on the back of that potential peace deal with Iran, with WTI trading 40 cents lower at $73.43, down 19% since last week and 26% off May highs.
Saturna Capital Chief Investment Officer Scott Klimo joined Steve Darling from Proactive to discuss the Saturna Global Equity ETF, the principles of Shariah-compliant investing, and how the rapid growth of artificial intelligence is reshaping valuations and opportunities across global markets.
Klimo explained that the actively managed ETF applies Islamic investment guidelines that exclude sectors such as conventional banking, insurance, gambling, tobacco, alcohol, and weapons. In addition to those sector screens, the strategy also emphasizes companies with low debt levels, a factor Klimo said can signal strong cash generation, disciplined capital allocation, and durable business models.
The conversation also focused on the impact of AI on technology investing. Klimo noted that major technology companies such as Alphabet, Amazon, and Microsoft are evolving from traditionally asset-light businesses into far more capital-intensive operators as they commit massive sums to AI infrastructure, data centers, and compute capacity.
Beyond the large-cap AI leaders, Klimo highlighted a broader group of companies benefiting from the AI buildout, including ASML, Taiwan Semiconductor, Samsung Electronics, and Japan’s Fujikura, all of which play important roles in chip manufacturing, semiconductor equipment, and data-center connectivity.
The discussion also touched on the pharmaceutical sector, where Klimo sees long-term value despite recent market weakness. He said healthcare companies can provide portfolio balance and defensive characteristics, even as investors continue to weigh regulatory uncertainty and shifting sentiment toward the sector.
Looking at the broader market backdrop, Klimo pointed to continued geopolitical uncertainty, inflation trends, and energy prices as important factors to monitor. At the same time, he said he remains generally constructive on the market outlook, supported by resilient corporate earnings and the long-term productivity gains expected from AI adoption.
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.
Oracle has been my focus this month, and the recent selloff has only sharpened that focus. The stock has dropped 29.45% since June 1, the financial press is hyperventilating about cash burn, and my cost basis keeps falling while my conviction keeps rising. That combination is rare. I am going to use it.
Here is what keeps pulling me back to Oracle (NYSE:ORCL | ORCL Price Prediction). The company sits at the toll booth of enterprise AI infrastructure, and the toll receipts already in hand are staggering. Remaining performance obligations closed Q4 FY2026 at $638 billion, up 363% year over year. That is contracted, signed, future revenue. Of that backlog, $75 billion is tied to prepaid or customer-supplied GPU arrangements, meaning customers are footing part of the capital bill. Co-CEO Clay Magouyrk put the footprint plainly: “Oracle has over 211 live and planned regions worldwide, more than any of our cloud competitors.” When you own the rails, you collect the fare regardless of which model wins.
The data carrying my conviction Three numbers do the heavy lifting. First, Cloud Infrastructure revenue grew 84% in Q3 and accelerated to 93% in Q4, hitting $5.787 billion. The Multicloud AI Database business grew 404% in the quarter. Acceleration at this scale is what I am paying for.
Second, operating cash flow for the full year reached $31.977 billion, up 53%. Net income climbed to $17.087 billion, up 37%. Operating margin sits at 36.3%, return on equity at 53.4%. The business is growing more profitable while it builds the most expensive thing it has ever built.
Third, management raised the FY2027 plan. Revenue is now guided to $90 billion with non-GAAP EPS of $8.05. Against a current price of $175.07, that puts forward earnings at roughly 23 times next year. For a company growing cloud at a 58% to 64% clip into Q1, that multiple looks compressed against the growth rate. The quarterly dividend of $0.50, payable July 24, 2026, is a small bonus while I wait.
The risk I will not pretend away Free cash flow ran to negative $23.686 billion for FY2026 against $55.663 billion in capital expenditures. Total liabilities stand at $218.7 billion, and Oracle plans to raise roughly $40 billion more in FY2027 through debt and equity. If AI demand cools or GPU sourcing seizes up, that capex bill becomes a millstone. I respect the risk.
What keeps me buying anyway is the structure of the spend. Customers prepaid a chunk of it. The $30 billion bond raise earlier this year was substantially oversubscribed. Operating cash flow is growing faster than net income. This is a company building to fill orders already on the books.
Why my buy button stays active The June panic priced Oracle as if the AI buildout were a leap of faith. The $638 billion backlog says it is a delivery schedule. I am buying the delivery schedule at a discount, collecting the dividend on the way, and letting Magouyrk and Mike Sicilia finish the datacenters that customers have already paid to use. When the market recognizes that infrastructure built to fulfill signed contracts represents committed delivery revenue, the rerating could be significant.
Oracle’s NYSE: ORCL stock price sell-off started as an understandable, if overblown, reaction to fears of software-as-a-service (SaaS) disruption and swelling debt—but it has since spiraled into an outright disconnection from reality. While debt is growing, this is not an emerging tech start-up with a questionable growth trajectory, but a blue-chip name central to AI with a backlog to offset its liabilities.
Oracle Today
$165.00 -10.07 (-5.75%)
As of 06/23/2026 03:58 PM Eastern
52-Week Range$134.57▼
$345.72Dividend Yield1.21%
P/E Ratio28.30
Price Target$268.27
Oracle, a proven builder and operator of AI-quality data centers, is an execution story. Its debt grows in 2026, but so too does its back-end backlog, which is on track to hit trillion-dollar levels.
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The biggest risk is construction delays, but those are more a shifting of resources than physical delays. The setback caused by OpenAI's decision to abandon plans to expand its Stargate facilities is already fading, as the anticipated capacity will be acquired by other major hyperscalers, including Meta Platforms NASDAQ: META. Funding and timeline delays are also largely derisked, with Blackstone assisting in securing institutional investment. Critical infrastructure, including power systems, has also been secured. The worst-case scenario is that the initial revenue surge expected from backlogged capacity won’t begin until early 2028.
Oracle Trades for Pennies on the Dollar in 2026Oracle’s earnings quality and outlook provide ample incentive for buy-and-hold investors. Trading at only 22X the current-year earnings outlook, this company is fairly valued relative to the S&P 500 but 50% below where blue-chip tech growth stocks tend to trade. More importantly, the valuation fails to price in the upcoming backlog conversion, leaving the company at rock-bottom pricing relative to longer-term forecasts.
Oracle’s price-to-earnings multiple (P/E) falls to as low as 8X within four years and to 4X by 2035, although the number of available estimates diminishes the further out you look. The takeaway is that the market isn’t pricing in the growth, only the company's debt and near-term headwinds, setting the stage for aggressive share price increases in upcoming years. In this scenario, Oracle’s stock price could rebound by up to 50% in the near term, then continue advancing over subsequent quarters, potentially rising by 500% or more over the next decade as contracted backlog converts into revenue, cash flow, and earnings.
Cash flow and earnings will be central to the stock price action over time. Cash flow is impaired in 2026, preventing buybacks and putting dividends at risk, but is expected to improve over time. Backlog conversion is expected to drive debt reduction, cash flow improvement, free cash flow, and enable aggressive buybacks.
Bullish Analysts Support Oracle’s Market, Summer 2026Analysts’ trends are equally bullish, highlighting the value opportunity. MarketBeat tracks 38, with coverage and sentiment steady in early 2026. By consensus, the group pegs the stock as a Moderate Buy with a 79% Buy-side bias. The operational factor is that price targets are rising, pushing the high end of the range, with consensus forecasting a 60% increase in the stock price over the next 12 months. In this scenario, Oracle’s share price could rebound sharply, potentially catalyzed by the upcoming earnings report.
Oracle is a mid-cycle reporter, expected to release its fiscal Q1 2027 results in early to mid-September, weeks after other leading AI infrastructure names. The likely outcome is that its cloud-based business will continue to outpace its legacy businesses, with infrastructure and AI leading the way. As it stands, Oracle’s cloud business is growing at a hyper pace and is only overshadowed by its backlog. The backlog and guidance will be the market-moving news, expected to reflect continued strength and improving visibility to backlog conversion.
Oracle: A Market in the Midst of a ReversalOracle’s stock price action isn’t inspiring for bulls as of late June 2026. However, despite near-term price weakness, the market remains above a critical support level and is set up for a reversal. The pattern in play is a Head & Shoulders that could be confirmed by month’s end.
The risk is that institutions, which sold on balance late in the quarter, continue to reposition, driving share prices below the long-term 150-week exponential moving average. Oracle’s price could fall as low as $145 in that event, but a fresh low is not expected. The trading data reveal that the group provided ample support when ORCL shares were at their lows in Q1 and early Q2.
The more likely scenario is that ORCL remains range-bound near current levels until catalysts begins to emerge. In terms of catalysts, not only are earnings reports expected to affirm the outlook, but news from other hyperscalers is also expected to be positive, and Oracle’s AI World conference is scheduled for late October. It will feature keynote addresses and new product launches to invigorate investor sentiment.
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AI-powered surgical intelligence solutions will improve documentation accuracy, patient care, and revenue cycle management for surgical procedures
, /PRNewswire/ -- Oracle Health and Theator are working together to provide AI-powered surgical intelligence solutions to Oracle Health customers in the U.S. With Theator's solutions, which capture surgical video footage and use AI to analyze it and cross-reference EHR data, surgical teams can benefit from automated reporting that is more clinically accurate, optimized for billing, and tailored to individual preferences, with no transcription or dictation required. Powered by Oracle Cloud Infrastructure (OCI), Theator's cloud-based surgical solutions can take advantage of OCI's security, scalability, and high-performance to process high-definition surgical videos and run some of the industry's most compute-intensive AI workloads.
Surgical teams operate under intense time constraints, balancing packed operating room schedules with pre- and post-operative responsibilities that leave limited time for comprehensive documentation and reflective review. As a result, operative reports are frequently drafted from memory hours or even days after the procedure, often relying on templates that can miss case-specific detail. In fact, peer-reviewed research published in the Journal of the American College of Surgeons shows the reports achieve only 72.8 percent accuracy when written from a surgeon's memory. To address this challenge, Oracle Health and Theator plan to leverage AI to automate the process and help surgeons systematically capture what happened, learn from it, and translate those insights into improvements in quality, safety, and efficiency.
"Clinical documentation has reached almost every setting in medicine, but it has stopped at the door of the operating room," said Seema Verma, executive vice president and general manager, Oracle Health and Life Sciences. "By teaming with Theator, we can help surgeons leverage technology that understands what is actually happening during surgery and use AI to streamline the documentation process to reduce cognitive burden. This is another example of our commitment to working with a broad ecosystem of companies to achieve meaningful transformation by expanding choice for customers, accelerating adoption of new capabilities, and delivering the connected, scalable technology foundation needed for lasting change."
Theator's system analyzes and interprets the surgical video feed itself. The system understands the procedure as it unfolds: it recognizes which step the surgeon is on, whether safety milestones are achieved, the events that occur, and what is clinically meaningful at each moment. Powered by OCI, it produces a structured operative report by the time the surgeon walks out of the room, which allows the surgeon to simply review and sign off inside their normal workflow.
For health systems, this collaboration means surgical reports flow directly into the financial systems and clinical workflows already in place. Theator Surgery-to-Text® is powered by OCI and delivers reports into Oracle Health EHR, where care teams, quality reviewers, and billing staff have access right away. Accurate documentation at the time of surgery means fewer coding gaps and a financial record that actually reflects the complexity of each case. For Oracle Health customers, this all sits inside the architecture they have already invested in, under the same security and compliance controls they have today.
"This partnership changes the architecture of how surgical data enters the health record. Oracle Health is bringing the tremendous value of AI to surgical settings and creating the infrastructure for Surgical Intelligence to reach more patients," said Tamir Wolf, MD, PhD, CEO, Theator. "That is the inflection point. When surgical data flows into the EHR with the same structure and reliability as every other clinical encounter, you unlock capabilities that were never possible before: system-wide quality benchmarking, real-time safety intelligence, standardized surgical care across institutions. The operative report is where it starts. It is not where it ends."
Theator's documentation accuracy has been validated in peer-reviewed research published in the Journal of the American College of Surgeons, showing significantly higher accuracy than reports written from memory (p=0.001). The platform has analyzed more than 600,000 procedures across more than 150 procedure types and is deployed at leading academic medical centers in the U.S. and abroad.
About Theator
Theator is pioneering Surgical Intelligence, a new category that transforms intraoperative surgical video into structured, actionable clinical data. The company's flagship automated documentation platform, Surgery-to-Text®, uses proprietary computer vision and AI to analyze surgical procedures in real time, automatically generating operative reports that are more accurate and complete than those written from memory, supporting better clinical care, surgical quality, and revenue integrity. The platform has analyzed more than 600,000 procedures and is deployed globally at leading health systems. In the United States, these include Mayo Clinic and UHealth Miami. For more information, visit www.theator.io.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.
Surgery-to-Text is a registered trademark of Theator, Inc.
Oracle is spending big on artificial intelligence—to the tune of $70 billion this year alone—in order to build data centers and AI-capable servers. But that AI expansion hasn’t come without a human cost.
In its latest Form 10-K filing with the U.S. Securities and Exchange Commission (SEC), the company revealed that it has cut tens of thousands of jobs over the past year to help fund its AI expansion. Here’s what you need to know.
Oracle has cut 21,000 jobs in the past 12 monthsIn the company’s annual 10-K filing, the software-as-a-service (SaaS) and cloud-based computing giant revealed that as of May 2026, it had 141,000 full-time employees. Of those, 49,000 were employed in the United States, while the other 92,000 were employed internationally.
While those numbers are significant, they represent a dramatic drop in Oracle’s workforce since its annual filing a year earlier. In that previous filing, Oracle stated it had 162,000 employees as of May 2025. That discrepancy—21,000—means that in just one year, Oracle cut around 13% of its workforce.
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And Oracle didn’t mince words regarding the motivating factors behind the layoffs.
“The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company stated.
Oracle is not alone in cutting jobs to fund AIWhile Oracle plainly states that AI technologies have directly impacted its employee numbers, the company is far from the only U.S. tech giant to have cut jobs due to AI.
WFII’s 2026 Midyear Outlook highlights where investors should stay focused and potential opportunities tied to longer‑term economic forces
SAN FRANCISCO--(BUSINESS WIRE)--As 2026 moves into its second half, markets are sending mixed signals — rewarding confidence one moment and punishing it the next. Volatility, shifting economic signals, and geopolitical uncertainty have fueled a steady drumbeat of attention‑grabbing headlines, often tempting investors to react before stepping back and assessing the risk of mistimed portfolio moves.
Wells Fargo Investment Institute (WFII) today released its “2026 Midyear Outlook Report: Keeping Discipline in Noisy Markets,” offering economic and market expectations, market guidance, and actionable portfolio ideas for the second half of the year. WFII’s message: Uncertainty isn’t going away, but investors don’t need certainty to stay disciplined.
“Periods like this can make it feel as though the ground is always moving,” said Darrell Cronk, chief investment officer for Wealth & Investment Management at Wells Fargo. “That push and pull has been clear this year from early AI-driven tech selloffs and pressure in private credit to a rebound in technology leadership, while shifting signals around the Iran conflict drove sharp swings in commodities and broader markets. Reacting to every headline can undermine long-term outcomes, which is why discipline grounded in fundamentals matters most when uncertainty is this loud.”
Beneath the volatility, WFII sees more durable themes gaining traction, particularly the global race for AI leadership and the growing demand for natural resources that power it. The Midyear Outlook highlights potential opportunities where market prices have diverged from fundamentals and where revenues and earnings may prove more resilient, even as input costs remain elevated.
The report offers five investment ideas for the remainder of 2026:
Keep exposure to equities, but be selective. Broaden AI exposure. Reconsider international equity markets. Prioritize income in an uncertain world. Turn volatility into opportunity with discipline. Highlights of WFII’s forecast:
The anticipated U.S. GDP (gross domestic product) growth target for 2026 year-end is 2.2%, and 2.4% for 2027. The target for U.S. Consumer Price Index (CPI) inflation at year-end 2026 is 3.4%, and 2.8% for year-end 2027. The S&P 500 Index price target range is 7,800 – 8,000 for year-end 2026, and 8,600 – 8,800 for 2027. The federal funds rate target is 3.50% – 3.75% for year-end 2026 and year-end 2027. Join the WFII 2026 Midyear Outlook call today, June 17, at 4:15 p.m. Eastern Time. Dial-in: 888-625-1625; Passcode: 97-304-70.
A summary of the WFII 2026 Midyear Outlook is available (PDF).
Please see the full report for detailed information.
Risk Disclosure
Consumer Price Index (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.
S&P 500 Index is a market-capitalization-weighted index composed of 500 widely held common stocks that is generally considered representative of the U.S. stock market. Returns assume reinvestment of dividends and capital-gain distributions.
All targets for 2026 and 2027 are based on forecasts by Wells Fargo Investment Institute as of June 16, 2026, and provide a forecast direction over a tactical horizon through 2027.
Forecasts, targets, and estimates are based on certain assumptions and on our current views of market and economic conditions, which are subject to change. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.
All investing involves risks, including the possible loss of principal. There can be no assurance that any investment strategy will be successful and meet its investment objectives. Investments fluctuate with changes in market and economic conditions and in different environments due to numerous factors, some of which may be unpredictable. Asset allocation and diversification do not guarantee investment returns or eliminate risk of loss.
Stock markets, especially foreign markets, are volatile. A stock’s value may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. International investing has additional risks including those associated with currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging and frontier markets. Investments in fixed-income securities are subject to market, interest rate, credit, liquidity, inflation, prepayment, extension, and other risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in a decline in the bond’s price.
The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. This report is not intended to be a client-specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold, or sell securities. Do not use this report as the primary basis for investment decisions. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs, and investment time horizon.
About Wells Fargo Investment Institute
Wells Fargo Investment Institute, Inc., is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $2.2 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 33 on Fortune’s 2025 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com
Waterloo, Iowa–based family advisory team cites open architecture, flexibility and long-term succession resources in move
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Osaic, Inc. (“Osaic”), one of the nation’s largest providers of wealth management strategies, today announced that Signature Private Wealth Management (“Signature PW”) has joined its growing network of independent advisors. Joining Osaic from Wells Fargo Advisors Financial Network, the Waterloo, Iowa–based firm is led by Robert “Bob” Mundell and oversees more than $300 million in client assets.
Signature PW is a family-led advisory team that includes financial advisors Bob Mundell, Isaiah Mundell, Erica Johnson and Tyler Johnson, as well as Operations Manager Jocelyn Green. Together, the team focuses on delivering a client experience rooted in integrity, professionalism and a deep understanding of each client’s financial goals.
“We’re proud to welcome Bob and the Signature team to Osaic,” said John DiMonda, co-head of the Osaic Independent Channel. “As a family business focused on long-term client relationships, Signature represents the kind of entrepreneurial, values-driven firm that thrives in our community. We look forward to supporting their continued growth and helping them build a lasting legacy for the next generation.”
The Signature PW team evaluated multiple firms before selecting Osaic, citing the firm’s ability to support independent business owners with flexible solutions, resources for succession planning and a collaborative advisor community. Signature PW’s move reflects its commitment to maintaining control over how it serves clients while gaining access to the scale, tools and support of one of the nation’s largest wealth management platforms.
“Our clients are at the center of every decision we make,” said Bob Mundell, founder of Signature PW. “Choosing Osaic was about finding the right long-term home for our firm, our family and the families we serve. Osaic provides the open-architecture platform, flexibility and community we need to continue delivering a high-quality client experience while positioning our business for the next generation.”
At Osaic, independence is supported by a platform designed to help advisors grow, increase efficiency and spend more time serving clients. With access to Osaic’s open architecture, business resources and advisor-focused community, Signature PW is positioned to continue delivering personalized guidance while advancing its long-term vision for the firm.
To learn more about Osaic, please visit Osaic.com.
About Osaic
Osaic, Inc. (“Osaic”), a portfolio company of Reverence Capital Partners, is one of the nation’s largest providers of wealth management strategies, supporting over 10,000 financial professionals. Osaic’s mission is to empower entrepreneurial advisors to create leading wealth management solutions that enhance lives and legacies. Visit www.osaic.com to learn more.
Securities and investment advisory services are offered through the firms: Osaic Wealth, Inc. and Osaic Institutions, Inc., broker-dealers, registered investment advisers, and members of FINRA and SIPC. Securities are offered through Osaic Services, Inc. and Ladenburg Thalmann & Co., broker-dealers and members of FINRA and SIPC. Advisory services are offered through Ladenburg Thalmann Asset Management, Inc., Osaic Advisory Services, LLC, and CW Advisors, LLC, registered investment advisers. Advisory programs offered by Osaic Wealth, Inc. are sponsored by VISION2020 Wealth Management Corp., an affiliated registered investment adviser.
Wells Fargo (WFC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this biggest U.S. mortgage lender have returned +10.6% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Financial - Investment Bank industry, to which Wells Fargo belongs, has gained 13% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Wells Fargo is expected to post earnings of $1.74 per share for the current quarter, representing a year-over-year change of +13%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.
For the current fiscal year, the consensus earnings estimate of $6.87 points to a change of +9.4% from the prior year. Over the last 30 days, this estimate has changed +0.6%.
For the next fiscal year, the consensus earnings estimate of $7.78 indicates a change of +13.3% from what Wells Fargo is expected to report a year ago. Over the past month, the estimate has changed +0.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Wells Fargo is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven 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 Wells Fargo, the consensus sales estimate of $21.78 billion for the current quarter points to a year-over-year change of +4.6%. The $87.83 billion and $92.86 billion estimates for the current and next fiscal years indicate changes of +4.9% and +5.7%, respectively.
Last Reported Results and Surprise HistoryWells Fargo reported revenues of $21.45 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $1.56 for the same period compares with $1.27 a year ago.
Compared to the Zacks Consensus Estimate of $21.73 billion, the reported revenues represent a surprise of -1.3%. The EPS surprise was -1.27%.
Over the last four quarters, Wells Fargo surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
Wells Fargo is graded D on this front, indicating that it is trading at a premium to 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 Wells Fargo. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Jim Cramer used his Mad Money platform this week to make the case that the Magnificent 7’s appetite for capital is sending an unmistakable signal to investors who actually pay attention to corporate plumbing: the big banks are about to print money.
On the June 18, 2026 episode, Cramer argued that Nvidia alone raised $25 billion in the debt market despite one of the best balance sheets in the country, Google is raising nearly $85 billion in capital, and rumors suggest Meta will soon raise billions as well. Every one of those deals routes fees through Wall Street’s underwriting desks.
The Four Drivers Behind Cramer’s Bank Thesis Cramer laid out four structural tailwinds. First, a moderately higher short-term rate environment lifts bank earnings because what banks charge borrowers reprices faster than what they pay depositors. With the 10-year Treasury at 4.43% and the 2s/10s spread at 0.29%, the curve is flatter, but short rates remain high enough to keep net interest margins working.
Second, the consumer is holding. Cramer cited retail sales rising 0.9% month-over-month and 6.9% year-over-year, with credit card delinquencies remaining tame. FRED data confirms the spending side: retail sales hit $763.7B in May 2026, a +0.9% monthly gain, while credit card delinquencies sit at 2.92% as of January 2026, down from 3.04% in April 2025.
Third is the deal machine. Cramer flagged $1.2 trillion in public and private M&A activity in the first five months of the year, plus the Mag7 capital raises. Fourth is deregulation, what Cramer called “Prometheus unbound”, pointing to Banco Santander’s acquisition of Webster Financial as the kind of consolidation he expects to spread.
JPMorgan Chase: The Fee Pipeline Is Already Visible JPMorgan Chase (NYSE:JPM | JPM Price Prediction) is the cleanest read. Q1 2026 EPS came in at $5.94, with Investment Banking fees up 28% to $2.88 billion and advisory fees surging 82% to $1.27 billion. CEO Jamie Dimon described “AI-driven capital investment” as a key tailwind in JPM’s Q1 2026 release.
Other Big Bank Beneficiaries Bank of America (NYSE:BAC) posted Investment Banking fees of $1.84 billion, up 21% year-over-year, with Equities Sales & Trading jumping 30% to $2.84 billion. Wells Fargo (NYSE:WFC) reported Investment Banking revenue of $602 million, up 13%, with Markets revenue up 19%. CEO Charlie Scharf told investors the bank ended the quarter with “a strong investment banking pipeline”.
Why the Mag7 Is Borrowing With Cash Mountains on the Books NVIDIA (NASDAQ:NVDA) generated $253.5B in trailing revenue with a 63% profit margin, yet still tapped debt markets. The reason: $119B in supply-related commitments tied to AI capacity. Alphabet (NASDAQ:GOOGL) issued $31.1 billion in senior unsecured notes in Q1 2026 per its Q1 8-K filing, with capex more than doubling. Meta Platforms raised 2026 capex guidance to $125-145 billion, an enormous funding gap that explains the rumored bond deal Cramer referenced.
The Valuation Setup Bank stocks have already started moving. JPM is up 26.11% over the past year, BAC 31.55%, WFC 18.13%. Yet JPM still trades at a trailing P/E of 16 and forward P/E of 15, hardly stretched. Cramer’s point on Mad Money: “with a relatively cheap bank like JP Morgan or Bank of America or even a Wells Fargo, they can very well go up much more before they’re even considered reasonably priced, let alone fully valued.”
The Mag7 capex cycle is now a multi-year funding event. If Cramer is right that deal flow, NIM tailwinds, a resilient consumer, and looser regulation are stacking simultaneously, the underwriters of the AI buildout deserve a closer look than their multiples currently imply.
Wells Fargo Series L preferred shares offer a compelling 6.4% yield with minimal call risk due to high conversion thresholds. WFC's Q1 net income of $5.25B and a preferred dividend payout ratio near 5% ensure strong coverage for preferred shareholders. The Series L preferreds are perpetual, non-cumulative, and only convertible if WFC common triples, making them attractive for long-term fixed income allocation.
Bank of America has predicted that the Federal Reserve will be forced to raise interest rates by 75 basis points this year, with the first 25-basis-point hike in September. They also see additional 25-basis-point hikes in October and December. The energy shock from the war with Iran drove inflation higher, with the CPI rising in May to 3.8%, the sharpest increase in three years and well above the Fed’s 2% target. This, in turn, has prompted lenders to demand higher rates to protect returns. Meanwhile, investors sold bonds amid rising inflation and concerns about U.S. debt, which lifted Treasury yields. Since mortgage rates are based on the 10-year Treasury yield plus a risk premium, they rose in tandem. On the fiscal side, federal interest payments now exceed spending on Medicaid, national defense, and all nondefense discretionary programs combined, adding further upward pressure on long-term borrowing costs.
The team at Bank of America frames the rate increase argument on the hand that new Fed Chair Kevin Warsh was dealt, noting the following when discussing the potential for rate hikes this year:
We now expect three 25-basis-point Fed hikes this year, in September, October, and December. This would take the policy rate to 4.25-4.5%. We were skeptical of the need for cuts in 2025. Both the data and our updated read of the Fed’s reaction function suggest it will reverse those cuts in short order. We think the Fed will stay on hold next year. Inflation is likely to remain sticky, keeping the real policy rate from becoming overly restrictive. Meanwhile, the Fed’s inflation problem has gotten unambiguously worse. Core PCE could reach 3.5% in May, nearly 70bp higher than it was a year ago. The pickup has been partly due to tariffs and other one-offs. The Fed was willing to look through the tariffs, but it is losing patience after the latest round of supply shocks. Also, housing-driven disinflation has now mostly run its course, while other core services remain very sticky.
Typically, when interest rates go higher, these four sectors tend to win:
Financials Energy Healthcare Consumer Staples We screened our 24/7 Wall St. dividend stocks database for quality companies that pay big, dependable dividends and generate reliable passive income. We found four companies, one in each sector, that are solid bets if the upward trend in interest rates remains and Bank of America is correct in three rate hikes. All are rated Buy by the top Wall Street firms we cover.
Financials: Wells Fargo Financials are the biggest winner. Banks earn a wider spread between what they pay depositors and what they charge borrowers. Insurers earn more on their investment portfolios. The sector almost mechanically benefits from rising rates, as net interest income rises.
Wells Fargo (NYSE: WFC | WFC Price Prediction) operates in 35 countries and serves over 70 million customers worldwide. This money-center giant makes sense, given its 2.09% dividend, as many of the issues that plagued the company over the past five years appear to have been resolved. This financial services company offers a diverse range of banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally.
The company operates through four segments. The Consumer Banking and Lending segment offers a diverse range of financial products and services tailored to meet the needs of consumers and small businesses. These include checking and savings accounts, credit and debit cards, as well as home, auto, personal, and small business lending services.
The Commercial Banking segment provides financial solutions to private, family-owned, and specific public companies. Its products and services include banking and credit products across various industry sectors and municipalities, as well as secured lending and lease products, and treasury management services.
The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services, such as:
Corporate banking Investment banking Treasury management Commercial real estate lending and servicing Equity and fixed-income solutions Sales, trading, and research services to corporate, commercial real estate, government, and institutional clients The Wealth and Investment Management segment provides wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net-worth, and ultra-high-net-worth clients. It also operates through financial advisors in brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade and Intuitive Investor.
Barclays has an Overweight rating and a $108 target price.
Energy: Chevron Energy benefits because rate hikes typically coincide with inflation, and oil and gas prices are a primary driver of inflation. Higher commodity prices equal higher revenues. It’s the inflation hedge play, and it has been the strongest-performing S&P sector so far in 2026.
Chevron (NYSE: CVX) is an American multinational energy company that primarily focuses on oil and gas. It is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial 3.84% dividend, which was raised by 5% earlier this year. The company operates integrated energy and chemicals businesses worldwide.
Chevron operates in two segments. The Upstream segment is involved in:
Exploration, development, production, and transportation of crude oil and natural gas Processing, liquefaction, transportation, and regasification associated with liquefied natural gas Transportation of crude oil through pipelines, and transportation, storage Marketing of natural gas, as well as operating a gas-to-liquids plant The Downstream segment engages in:
Refining crude oil into petroleum products Marketing crude oil, refined products, and lubricants Manufacturing and marketing renewable fuels Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
Mizuho has an Outperform rating and a $230 target price.
Healthcare: Merck Pricing power and steady demand insulate the top healthcare names. They don’t directly benefit from higher rates, but they tend to hold up well because their earnings do not erode as much as those of interest-sensitive sectors.
Merck (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. It is not just a healthcare company but a global force in the industry, paying a solid 2.84% dividend.
Merck operates through two segments. The Pharmaceutical segment offers human health pharmaceutical products in:
Oncology Hospital acute care Immunology Neuroscience Virology Cardiovascular Diabetes Vaccine products, such as preventive pediatric, adolescent, and adult vaccines The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, and digitally connected identification, traceability, and monitoring products.
Merck serves:
Drug wholesalers Retailers Hospitals Government agencies Managed healthcare providers, such as health maintenance organizations Pharmacy benefit managers and other institutions Physicians Physician distributors Veterinarians Animal producers Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting HIV treatments, demonstrating a commitment to innovation and growth.
UBS has a Buy rating with a $145 target price.
Consumer Staples: Altria Although consumer staples do not directly benefit from interest rates, they still emerge as relative winners. By delivering essential products, they maintain stable revenues regardless of the broader economic cycle, making them attractive to investors seeking a reliable safe haven.
Altria (NYSE: MO) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This stock offers value investors a great entry point. Altria manufactures and sells smokable and oral tobacco products in the United States and is the undisputed yield leader among consumer staples Dividend Kings. Its annual dividend of $4.24 per share currently yields 6.1%.
The company primarily sells cigarettes under the Marlboro brand, as well as:
Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands on! Oral nicotine pouches e-vapor products under the NJOY ACE brand It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. In 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
NEW YORK--(BUSINESS WIRE)--For many pet parents, saying goodbye to a beloved dog or cat is one of life’s most difficult experiences. MetLife Pet Insurance is introducing a new Memorial Tree Program to help honor that bond, alongside grief counseling services that support pet parents through end-of-life decisions and the months that follow.
MetLife Pet Insurance is introducing a new Memorial Tree Program to help honor pets, alongside grief counseling services that support pet parents through end-of-life decisions.
Share MetLife Pet Insurance research underscores the depth of that bond: 95% of Americans consider their pet to be family, and 50% say they have grieved a pet’s death more deeply than a human loved one, underscoring the need for support that addresses both the emotional and practical aspects of loss.
Through a collaboration with the National Forest Foundation, MetLife Pet Insurance will honor every insured pet that passes away by supporting the planting of a tree in a U.S. National Forest. Policyholders who cancel coverage due to the death of a pet will receive a sympathy card noting that a memorial tree will be planted in their pet’s honor.
The program builds on MetLife Pet Insurance’s existing grief counseling services, provided by TELUS Health, which connect eligible policyholders with trained counselors for guidance during end-of-life decisions and in the months that follow.
“Pets are family, and the loss of a pet can be one of the most emotional experiences a person can face,” said Brian Jorgensen, head of MetLife Pet Insurance. “We’re focused on showing up for pet parents during that time, not only by helping them honor their pets, but by offering support when they need it most.”
The initiative reflects a broader focus on emotional well-being across MetLife’s offerings. Through its group life offerings, MetLife also provides grief counseling and emotional wellness services through TELUS Health as part of the MetLife Advantages program, reinforcing a consistent approach to care across life and pet insurance.
The National Forest Foundation leads one of the largest reforestation efforts in the United States, restoring forests impacted by wildfire, disease and other environmental challenges.
The Memorial Tree Program is expected to launch in June 2026.
About MetLife Pet Insurance Solutions, LLC
MetLife Pet coverage is issued by Metropolitan General Insurance Company, a Rhode Island insurance company headquartered at 700 Quaker Lane, Warwick, RI 02886. MetLife Pet Insurance Solutions LLC is the policy administrator. It may operate under an alternate or fictitious name in certain jurisdictions, including MetLife Pet Insurance Services LLC (New York and Minnesota) and MetLife Pet Insurance Solutions Agency LLC (Illinois). For more information, visit https://www.metlifepetinsurance.com.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.
For many pet parents, saying goodbye to a beloved dog or cat is one of life’s most difficult experiences. MetLife Pet Insurance is introducing a new Memorial Tree Program to help honor that bond, alongside grief counseling services that support pet parents through end-of-life decisions and the months that follow.
MetLife Pet Insurance research underscores the depth of that bond: 95% of Americans consider their pet to be family, and 50% say they have grieved a pet’s death more deeply than a human loved one, underscoring the need for support that addresses both the emotional and practical aspects of loss.
Through a collaboration with the National Forest Foundation, MetLife Pet Insurance will honor every insured pet that passes away by supporting the planting of a tree in a U.S. National Forest. Policyholders who cancel coverage due to the death of a pet will receive a sympathy card noting that a memorial tree will be planted in their pet’s honor.
The program builds on MetLife Pet Insurance’s existing grief counseling services, provided by TELUS Health, which connect eligible policyholders with trained counselors for guidance during end-of-life decisions and in the months that follow.
“Pets are family, and the loss of a pet can be one of the most emotional experiences a person can face,” said Brian Jorgensen, head of MetLife Pet Insurance. “We’re focused on showing up for pet parents during that time, not only by helping them honor their pets, but by offering support when they need it most.”
The initiative reflects a broader focus on emotional well-being across MetLife’s offerings. Through its group life offerings, MetLife also provides grief counseling and emotional wellness services through TELUS Health as part of the MetLife Advantages program, reinforcing a consistent approach to care across life and pet insurance.
The National Forest Foundation leads one of the largest reforestation efforts in the United States, restoring forests impacted by wildfire, disease and other environmental challenges.
The Memorial Tree Program is expected to launch in June 2026.
About MetLife Pet Insurance Solutions, LLC
MetLife Pet coverage is issued by Metropolitan General Insurance Company, a Rhode Island insurance company headquartered at 700 Quaker Lane, Warwick, RI 02886. MetLife Pet Insurance Solutions LLC is the policy administrator. It may operate under an alternate or fictitious name in certain jurisdictions, including MetLife Pet Insurance Services LLC (New York and Minnesota) and MetLife Pet Insurance Solutions Agency LLC (Illinois). For more information, visit https://www.metlifepetinsurance.com.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260622568912/en/
AUSTIN, Texas, June 17, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, today announced the availability of ServiceFabric® Model Context Protocol (MCP), an emerging open protocol that helps make infrastructure programmable for Private AI environments. ServiceFabric MCP extends Digital Realty's global interconnection platform with programmable controls designed for enterprise AI deployments. The launch reflects Digital Realty’s view that the next era of enterprise AI will be defined by physical infrastructure—power density, advanced cooling, and sovereign placement—made programmable through open, AI-native control.
AI Private Exchange (AIPx), the underlying architecture behind ServiceFabric MCP, includes patented policy and orchestration technology for programmable AI infrastructure. This announcement builds on Digital Realty’s broader Foundation for AI strategy focused on enabling enterprise AI at global scale.
Model Context Protocol (MCP) is an emerging open standard that can enable AI systems and agents to securely interact with infrastructure, applications, and enterprise services through standardized interfaces. These capabilities help enterprises securely connect AI workloads, data, and infrastructure across distributed environments. Across more than 800 Digital Realty and third-party data centers, ServiceFabric MCP extends Digital Realty’s global platform into a programmable foundation for deploying and managing enterprise AI infrastructure at scale.
“Our strategy is simple: provide the foundational infrastructure enterprises need for sustained AI workloads, while enabling flexible scale as demand grows. ServiceFabric MCP extends the foundation of AIPx with programmable controls and agent-ready interfaces, and our patent position reflects the long-term investment we’ve made in this architecture,” said Chris Sharp, Chief Technology Officer, Digital Realty.
Validated Across Digital Realty's Platform and Ecosystem
ServiceFabric MCP and AIPx, Digital Realty's private interconnection fabric for AI workloads, are being validated across internal deployments, enterprise AI environments, and partner ecosystem implementations.
“Enterprise adoption of Private AI infrastructure has reached an inflection point. Production AI workloads now demand control over data movement, policy enforcement, and partner integration that public cloud APIs alone cannot deliver. Providers combining global footprint with programmable, agent-ready interconnection are well positioned to support this next wave of enterprise AI investment,” said Mary Johnston Turner, Research VP, IDC.
Digital Realty has launched AI solutions with partners including ePlus, Lenovo, and Dell, built on infrastructure powered by technologies from NVIDIA and AMD. Additional providers are in active development.
Proven Internally, Validated by Customers
Digital Realty operates ServiceFabric MCP and related AIPx across its own infrastructure environments, using internal AI workloads and operational deployments. These deployments help Digital Realty validate and orchestrate its own AI infrastructure. Insights from these internal deployments are now helping inform customer AI infrastructure implementations.
“At See All AI, we are developing advanced medical imaging AI systems that demand both massive compute performance and highly scalable data infrastructure. Digital Realty's Borton campus and ServiceFabric provide the high-bandwidth, low-latency connectivity required to support our NVIDIA DGX B200 environment, enabling secure movement of large imaging datasets, dynamic connectivity to cloud resources, and the operational resiliency needed for production healthcare AI,” said T. Michael Thornton, Chief Executive Officer, See All AI.
What ServiceFabric MCP Delivers
ServiceFabric MCP provides an AI-native control surface across four capability areas:
Design and provisioning: enabling intent-based connectivity design, provisioning, and API access through MCP.Discovery and telemetry: allowing real-time capacity, topology, and inventory discovery, plus live network telemetry signals covering throughput, latency, and link health.Identity and security: enabling identity and access control via OAuth 2, with programmable controls over network connectivity.Operations integration: allowing agent-assisted diagnostics and troubleshooting, with integration hooks for Slack, Microsoft Teams, Splunk, and Datadog. Open by Design
ServiceFabric MCP is built for how enterprises deploy AI – across public cloud, network service providers, bare metal platforms, and other colocation environments – supporting commercial, open-source, and future AI models. Connections remain private, operating at Layer 2 and Layer 3 with strong authentication and access controls. Enterprises are not required to operate exclusively in Digital Realty facilities, and they are not required to commit to a single AI model.
The First Programmable Surface of a Foundation for AI Architecture
ServiceFabric MCP is designed as the first programmable surface of Digital Realty’s broader Foundation for AI architecture. Over time, that architecture is expected to extend beyond programmable networking into space, power, inventory, partner ecosystems, and sovereign deployment patterns. Digital Realty sees ServiceFabric MCP as a key part of its broader private AI infrastructure strategy.
Availability
By exposing programmable controls and agent-ready interfaces across the global platform, ServiceFabric MCP is designed to help shorten enterprise time-to-deployment for Private AI workloads and support a broader ecosystem of customers and partners building AI infrastructure on Digital Realty's platform. ServiceFabric MCP is available today.
Enterprises designing or operating Private AI environments can engage Digital Realty to explore capacity, interconnection, and integration options across the company's global platform. Learn more at https://www.digitalrealty.com/platform-digital/connectivity/service-fabric.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
For Additional Information
Media Contacts
Helen Bleasdale
Digital Realty
+1 (737) 267-6822 [email protected]
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 (737) 281-0101 [email protected]
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the company’s strategy, expectations, anticipated benefits of ServiceFabric MCP and related technologies, availability and participation of partners, emerging technologies including AI, expected growth in digital transformation, customer demand for company’s products and services and growth, and adoption of private AI infrastructure. For a list and description of risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
