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

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

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

Q1 2026 and Recent Business Highlights

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

GAAP Financial Results:

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

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

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

Core Non-GAAP Financial Outlook:

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

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

About Cerebras Systems

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

Investor Relations
Sean Dorsey
[email protected]

Corporate Communications
Kriselle Laran
[email protected]

Forward-Looking Statements

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

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

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

Discussion of Non-GAAP Financial Measures

Use of non-GAAP financial measures

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

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

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

Usefulness of non-GAAP financial measures to investors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

META Stock's Performance
Image Source: Zacks Investment Research

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

META's Valuation
Image Source: Zacks Investment Research

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

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

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

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

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

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

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

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

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

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

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

© sarawuth702 / iStock via Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

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

© jetcityimage / iStock Editorial via Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By PYMNTS  |  June 23, 2026

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

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

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

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

Image source: Getty Images.

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

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

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

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

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

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

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

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

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

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

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

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

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

It has also been candid about the pace.

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

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

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

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David M. Denton named incoming Chief Financial Officer

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

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

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

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

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

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

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

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

About NIKE, Inc.

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

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

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

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

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

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

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

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

AT&T declined to comment on the CPUC filings.

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

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

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

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

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Netflix (NFLX 0.30%) stock is down 17% year to date and slipped again on June 16 after reports linked the company to a failed bid for Roku. It's now official that Fox has reached an agreement to acquire the popular streaming platform in a $22 billion deal, which means if the reports about Roku are accurate, Netflix has now missed on two deals this year. Earlier this year, Netflix walked away from Warner Bros. after Paramount Skydance swooped in with a better offer.

Wall Street believes failure to win these deals indicates a weakening growth story, but is that the right interpretation?

Image source: The Motley Fool.

Disciplined capital allocation Management has emphasized that acquiring quality assets would be a luxury, not a necessity, for its growth. It has over 325 million paying members, helping it generate $13 billion in profit on $47 billion of trailing revenue.

Wall Street might think Netflix is running out of opportunities, necessitating acquisitions to drive further growth. This may explain the stock's recent dip. But that doesn't align with the current momentum in the business and where it is investing.

Netflix is set to spend $20 billion this year on content production. The decision to not engage in a bidding war for these deals reflects discipline. Management understands the value of its content spending and the returns it will yield over time. It clearly concluded that the price required to win a bidding war would yield a lower return than investing in its own content. That's the kind of disciplined capital allocation that Warren Buffett loves.

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Why Netflix is still a solid investment Netflix still has a small share of total TV viewing time. It estimates that it has captured only 45% of its addressable market among broadband households. That indicates the potential for as many as 800 million subscribers.

The business looks healthy. Revenue grew 16% year over year in the first quarter. These are solid numbers for a competitive market. Google's YouTube has consistently ranked higher than Netflix in TV viewing share.

Netflix is expanding its content library to include live events and video podcasts, which continue to show solid traction with its members. These are opportunities to gain a larger share of people's viewing time and capture more of their addressable market.

The stock is trading at just 21 times 2026 earnings estimates. This seems too conservative for a strong brand generating over a 30% operating margin and still growing revenue at double-digit rates. Investors have the chance to buy shares in a disciplined company at an attractive price with room to grow.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Netflix’s New StrategyIn recent years, Netflix has placed greater emphasis on live sports content. The theory is that live viewership can help boost advertising for Netflix’s ad-free and ad-supported plans when it comes during sporting events with sports fans used to ads.

The company currently has rights to WWE, MLB and NFL content and it may add more sports content. Instead of bidding on large and costly full-season rights, Netflix has been selective. For the NFL, this includes airing a total of five games for the 2026 season and being the home of the NFL Honors award show the week of the Super Bowl in February 2027. This is up from two Christmas Day games during the 2025 season.

Netflix will stream the following games live:

Netflix now has a four-year partnership through the 2029-2030 season with the NFL that will help provide content multiple months of the year. Last year, the platform set a record, averaging 27.5 million U.S. viewers on Christmas for the Detroit Lions vs. Minnesota Vikings game.

Netflix also has rights to the Home Run Derby, a key event of the MLB All-Star Game break, along with several other one-off MLB events.

Netflix Boxing: Knockout Or Bust?Outside of NFL and MLB, Netflix also has the upcoming Floyd Mayweather and Manny Pacquiao rematch on Sept. 19, but that fight remains in limbo. Boxing promoters CSI Entertainment have filed a lawsuit against Mayweather and is seeking to block Netflix from airing the bout.

The loss of that fight could sting Netflix, which has seen success with boxing and MMA events. A recent May MMA event with MVP Promotions drew an average of 12.4 million viewers and a peak of 17 million viewers, setting new MMA records.

Are Live Sports Enough?Live sports is not the only content that Netflix has to offer subscribers, with the streamer also pumping out original series and movies every month alongside other acquired media.

The problem is that some of the company’s biggest series and movies are in the rearview mirror now.

The company’s two biggest hits, "Squid Game" and "Stranger Things," are now complete, having helped boost overall financials in recent years and delivered strong subscriber figures and low churn.

Without those hits, fans are left with "Bridgerton" and "One Piece," both of which don’t have new content until 2027.

The top 10 movies list includes one film from 2026 ranking ninth all-time, and two films from 2025. The other seven films are two years old or older.

Netflix announced it reached the 250 million monthly active user milestone for its ad-supported plan earlier this year. The company no longer breaks out subscriber figures, which could have investors and analysts zeroed in on other key metrics.

The company reports financial results on July 16, which comes after missing earnings per share estimates from analysts in two of the last three quarters.

A company that was heavily against acquisitions for years now considering buying other media and streaming companies could suggest that its best years of growth are behind.

Netflix Stock Price ActionAt last check, Netflix stock traded at around $72.83 on Tuesday after hitting a new 20-month low of $71.81 on Monday. The stock is down 19.9% year-to-date in 2026 and down 41.9% over the last 52 weeks.

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Key Takeaways Mastercard is positioning for agentic commerce, where AI agents shop and pay for consumers.Agent Pay and Verifiable Intent aim to secure AI-driven purchases and consumer authorization.Tokenization and cybersecurity offerings can address trust challenges in autonomous transactions. Mastercard Incorporated (MA - Free Report) is positioning itself for the rise of agentic commerce — a new form of digital shopping in which AI-powered agents can search, compare and purchase products on behalf of consumers. As AI becomes increasingly integrated into everyday commerce, the payments industry is entering a new phase where transactions may be initiated by software agents rather than people directly. This shift could create a significant new source of digital payment activity.

To support this evolution, Mastercard has introduced Agent Pay, a framework designed to enable secure AI-driven transactions. It has also expanded its collaborations with leading AI firms, including OpenAI, while launching Verifiable Intent, a solution that helps verify and record consumer authorization when an AI agent makes a purchase. Moving beyond pilots, recently, MA and PhotonPay completed a live agentic payment transaction in Hong Kong, demonstrating how an AI agent can autonomously select and execute a purchase using tokenized payment credentials.

Agentic commerce requires trusted identity verification, credential protection, fraud monitoring and dispute management — areas where Mastercard already has strong capabilities. Its tokenization technology and cybersecurity offerings can help address the trust and security challenges associated with autonomous transactions. These strengths complement its Value-Added Services and Solutions business, which posted 18% year-over-year revenue growth on a currency-neutral basis in the first quarter of 2026.

Although still in its early stages, MA is building the infrastructure needed for an AI-driven economy. As AI-powered assistants become more widely used, Mastercard could benefit from higher transaction volumes, broader service adoption and new monetization opportunities across its payments and technology ecosystem.

How Are Competitors Faring?Some of MA’s competitors in the fintech space include Visa Inc. (V - Free Report) and Affirm Holdings, Inc. (AFRM - Free Report) .

Visa is aggressively expanding its AI-driven commerce ecosystem through initiatives like Visa Intelligent Commerce and the Agentic Ready program. V is testing agent-initiated payments, strengthening tokenization and fraud controls, and building infrastructure that allows AI agents to securely shop and transact across global merchant networks.

Affirm is strengthening its position in AI-powered commerce through an expanded partnership with Google. By integrating its BNPL services into Google Search, AI Mode and the Gemini app through Google Pay, AFRM is aiming to make instalment financing more accessible within AI-assisted shopping and checkout experiences.

Mastercard’s Price Performance, Valuation & EstimatesOver the past year, MA’s shares have dropped 6.9% compared with the industry’s fall of 19.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 23.87, above the industry average of 17.28. MA carries a Value Score of C.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 15.2% growth from the year-ago period.

Image Source: Zacks Investment Research

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

Key Takeaways Visa launched an AI-driven cashback program in the UAE with Mashreq and Rezolve AI.V is using rewards, data and AI to boost card usage and deepen issuer and merchant engagement.Data processing revenues rose 17% in Q1 2026, supporting Visa's value-added services strategy. Visa Inc. (V - Free Report) is partnering with Mashreq and Rezolve AI to launch "Everyday Cashback" in the UAE. Powered by Rezolve's Reward platform, the digital-first Card Linked Offers (“CLO”) program delivers personalized, AI-driven rewards to credit and debit cardholders. The offering gives consumers tailored cashback incentives while helping merchants reach shoppers through targeted promotions.

While the launch is unlikely to materially affect Visa's near-term financial results, it highlights the company's broader strategy to strengthen its payments ecosystem. Beyond processing transactions, Visa is increasingly embedding value-added services into everyday payments. Programs like CLO can boost card usage, deepen customer engagement and create additional value for banks and merchants.

The initiative aligns with trends seen in Visa's first-quarter fiscal 2026 results, which showed continued growth in value-added services, commercial solutions and cross-border volumes. Expanding engagement-driven offerings in fast-growing digital payment markets like the UAE can help Visa reinforce issuer relationships and keep more payment activity on its network.

The rollout is less about immediate revenues and more about strategic execution. It demonstrates how Visa is leveraging data, AI and rewards programs to drive transaction activity and deepen ecosystem participation. The approach could also help offset rising client incentives by supporting higher-margin revenue streams. Data processing revenues rose 17% year over year in the first quarter of 2026. While the Mashreq partnership alone will not move the needle, consistent execution of similar initiatives can strengthen Visa's competitive position and support long-term earnings growth.

How Are Competitors Faring?Industry peers like Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report)  are deploying their own AI-driven networks to capture value beyond basic payment processing.

Mastercard is aiming squarely at the machine-to-machine economy. MA recently expanded its AI capabilities via Agent Pay for Machines, a specialized infrastructure enabling AI agents and connected devices to securely authorize, orchestrate, and settle transactions autonomously.

PayPal is advancing its Agentic Commerce initiative, enabling AI agents to discover products and complete purchases on behalf of consumers. Through these efforts, PYPL is embedding its payment services into next-generation shopping experiences.

Visa’s Price Performance, Valuation & EstimatesOver the past year, shares of Visa have lost 7.2% compared with the industry’s 23.8% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, V trades at a forward price-to-earnings ratio of 22.77, above the industry average of 16.89. V carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.1% jump from the year-ago period’s level.

Image Source: Zacks Investment Research

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

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Acquisition brings Vibe.co’s self-serve, connected TV advertising platform into Walmart Connect’s commerce media platform, making TV advertising more accessible and measurable for small and mid-sized businesses (SMB) and mid-market advertisers.

BENTONVILLE, Ark. & NEW YORK--(BUSINESS WIRE)--Walmart and Vibe.co today announced they have entered into an agreement under which Walmart will acquire Vibe.co, a self-serve, connected TV (CTV) advertising platform designed to simplify advertising for small and mid-sized businesses (SMB) and mid-market brands. The transaction is subject to customary closing conditions, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Terms of the transaction were not disclosed.

The acquisition advances Walmart’s strategy to build more accessible, full-funnel advertising solutions through Walmart Connect, its commerce media business. By combining Vibe.co’s self-serve CTV platform with Walmart’s commerce audiences, closed-loop measurement and growing media ecosystem, including VIZIO, Walmart Connect aims to help more advertisers launch CTV campaigns and better measure their business impact.

“Walmart Connect is focused on making commerce media more accessible, more measurable and easier to activate for advertisers of all sizes,” said Ryan Mayward, GM and Senior Vice President, Walmart Connect U.S. “Vibe.co has created a purpose-built platform that simplifies streaming TV advertising, and together, we can help more businesses connect with customers across streaming environments while measuring the impact of those campaigns through Walmart’s commerce capabilities.”

Vibe.co’s platform offers self-serve campaign activation, direct supply partner integrations, proprietary advertising technology and performance-driven optimization that helps advertisers access premium connected TV inventory more efficiently. The combination is expected to support broader adoption of the CTV ad media among advertisers across Walmart Connect, and the broader connected TV ecosystem, particularly among SMB and mid-market advertisers, including Walmart’s third-party marketplace sellers. The platform can deliver easier campaign activation, greater transparency and stronger measurement between media investment and commerce outcomes.

“Vibe.co was built as the self-serve platform for performance and ecommerce marketers to run streaming TV the way they run paid social: measurable, fast to launch, and optimized for better outcomes,” said Arthur Querou, Co-Founder and CEO, Vibe.co. “Joining Walmart gives us the opportunity to accelerate that mission and bring performance TV advertising to one of the most powerful commerce media ecosystems in the market.”

Advertisers continue to navigate a fragmented media landscape where CTV can deliver reach and impact but often remains complex and costly to buy. Walmart Connect and Vibe.co aim to reduce friction across planning, targeting, ad content creation, activation, measurement and optimization, making CTV more accessible to advertisers without large media teams or specialized resources.

This transaction builds on Walmart Connect’s existing solutions and continued investments to make commerce media easier to access and manage, including recent partnerships with Magnite, Yahoo DSP, and Google DV360. Combined with Walmart’s acquisition of VIZIO, Vibe.co strengthens Walmart Connect’s ability to deliver simplified activation, enhanced targeting and measurable outcomes across its growing CTV ecosystem.

Walmart Connect and Vibe.co remain committed to operating within an open and collaborative advertising ecosystem, working with broadcasters, publishers, supply-side platforms (SSPs), measurement providers and technology partners across the industry. Existing partner relationships remain an important part of Walmart Connect’s advertising strategy. The acquisition is intended to expand advertiser choice and accessibility, not limit how advertisers or partners engage with Walmart Connect’s media ecosystem.

Following the close of the transaction, Vibe.co CEO and Co-Founder Arthur Querou, CTO and Co-Founder Franck Tetzlaff, and the broader Vibe.co team are expected to join Walmart Connect to help maintain business momentum, support a seamless integration and continue serving Vibe’s advertisers, publishers and technology partners. Their expertise in connected TV, self-serve activation and performance advertising will serve as valuable additions to the Walmart team.

The parties expect the transaction to close by the end of fiscal year 2027. Walmart does not expect the transaction to have any impact to FY27 sales and operating income growth guidance, as previously provided.

About Walmart

Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 280 million customers and members visit more than 10,900 stores and numerous eCommerce websites in 19 countries. With fiscal year 2026 revenue of $713 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.

About Vibe.co

Vibe.co is a self-serve, connected TV advertising platform designed to make streaming TV advertising more accessible, efficient and performance-driven for ecommerce brands, growth-stage businesses and SMBs. With more than 10,000 advertisers, advanced targeting, AI optimization and measurement capabilities, Vibe.co makes streaming TV advertising as accessible and accountable as digital.

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Key Takeaways Walmart launched a nationwide effort to help Medicare users understand prescription drug coverage.The program offers pharmacist consultations, digital tools and links to healthcare resources. Walmart's pharmacy scale and health focus could drive engagement and loyalty over time. Walmart Inc. (WMT - Free Report) and Sam’s Club have launched a nationwide initiative to help Medicare beneficiaries better understand prescription drug coverage options for weight management and other chronic conditions. While the program is primarily educational, it could strengthen Walmart’s healthcare presence by increasing pharmacy engagement and deepening customer loyalty while potentially supporting prescription volumes over time.

The initiative will provide educational materials, pharmacist consultations, digital navigation tools and assistance connecting customers with healthcare resources. With nearly 5,000 pharmacy locations, including stores in rural and underserved communities, Walmart is well-positioned to help seniors navigate evolving Medicare coverage requirements.

The move aligns with Walmart’s broader focus on weight management and chronic care. The company has been expanding support for customers using or exploring GLP-1 therapies through its Better Care Services platform, complemented by nutrition resources, wellness products and pharmacy services.

Walmart’s first-quarter fiscal 2027 earnings call highlighted the growing importance of its health and wellness business. The company reported continued prescription volume growth, pharmacy market share gains, investments in digital healthcare capabilities and faster pharmacy delivery options, underscoring its efforts to improve healthcare accessibility and convenience.

While the initiative is not expected to have a significant impact on earnings in the near term, it could benefit Walmart over time by bringing more customers to its pharmacies, creating opportunities for additional health and wellness purchases and strengthening its reputation as a trusted healthcare destination. Overall, the move fits Walmart’s strategy of leveraging its physical scale, digital tools and pharmacy network to build stronger customer relationships beyond traditional retail.

WMT Stock Price Performance, Valuation & EstimatesWalmart currently carries a Zacks Rank #3 (Hold). Shares of the company have risen 19.6% over the past year compared with the industry’s growth of 16.7%.

WMT Price Performance Versus Industry
Image Source: Zacks Investment Research

From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 38.6, higher than the industry’s average of 35.02.

WMT Valuation Compared to Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WMT’s current and next fiscal-year earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively.

Stocks to ConsiderRoss Stores, Inc. (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.

Dollar Tree, Inc. (DLTR - Free Report) , a leading discount retailer, currently carries a Zacks Rank #2 (Buy). DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.

The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and earnings implies growth of 6.5% and 21.4%, respectively, from the year-ago figures.

The TJX Companies, Inc. (TJX - Free Report) , a major off-price apparel and home fashions retailer, currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year sales calls for growth of 5.9%, and estimates for earnings suggest a 9.3% increase from the year-ago figure. TJX delivered a trailing four-quarter earnings surprise of 8.8%, on average.

Anthropic logo, a keyboard and a robotic hand in this illustration created on June 5, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

June 18 (Reuters) - JPMorgan Chase (JPM.N), opens new tab has stopped its staff in Hong Kong from accessing Anthropic's AI models, in a sign ​of intense scrutiny on the technology's use outside the U.S., the ‌Financial Times reported on Thursday, citing three people familiar with the matter.

The wording of Anthropic's usage terms in its licensing agreement with JPMorgan prompted the bank ​to remove Claude models from an internal drop-down list ​of approved large language models available to employees ⁠in the Asian financial hub, the report said.

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The move follows ​a similar decision by Goldman Sachs (GS.N), opens new tab, which in April removed Claude from ​a list of approved tools available to its Hong Kong-based bankers.

JPMorgan and Anthropic did not respond to Reuters' requests for comment outside business hours. ​Reuters could not immediately verify the report.

The restrictions by ​the two Wall Street banks come amid rising U.S.-China tensions over AI technology, ‌data ⁠security and access to advanced computing tools.

While AI models built by U.S. firms are not available in mainland China, Hong Kong has largely remained a market where some models operate, ​with usage limits ​set by U.S. ⁠companies.

Earlier this week, U.S. Commerce Secretary Howard Lutnick, in a letter to Anthropic CEO Dario Amodei, ​ordered the company to suspend exports of its ​Mythos ⁠and Fable AI models to destinations worldwide and all foreign nationals, citing concerns they could be used by military intelligence users in ⁠China, ​Russia and other countries of concern.

U.S. ​President Donald Trump said on Wednesday that negotiations with Anthropic are "going fine."

Reporting by ​Devika Nair in Bengaluru; Editing by Sonia Cheema and Harikrishnan Nair

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

© Mark Wilson / Getty Images News via Getty Images

JPMorgan Chase (NYSE:JPM | JPM Price Prediction) reported Q1 2026 net income of $16.5 billion, with EPS of $5.94, up 17% from a year earlier. Revenue hit $49.836 billion. Markets revenue set a record at $11.6 billion, up 20% year over year. Investment banking fees jumped 28%, with advisory fees up 82%. The stock has climbed 26% over the past year.

The Cockroach Quote CEO Jamie Dimon delivered the defining line: “When there’s a credit cycle, losses will be worse than people expect. I shouldn’t say this, but when you see one cockroach, there’s probably more.”

He elaborated on the mechanics. “A credit cycle will occur eventually, and I believe when it does, the losses will be worse than anticipated,” Dimon said, while declining to call a recession. “However, I don’t see it as systemic given the scale relative to other things.”

The historical pattern worries him. “Typically, there’s always an industry that surprises observers. For instance, in 2000, utilities and telecoms caught people off guard, while in 2008, it was media firms and newspapers. This time, there’s speculation surrounding software, but we’ll have to wait and see,” Dimon told analysts.

What He’s Watching Dimon flagged stagflation and refinancing risk as pressure points. “If stagflation occurs, along with prolonged higher interest rates and widening credit spreads, it will create significant stress for companies with leverage as they refinance,” he said. He sized the leveraged finance ecosystem at roughly $1.7 trillion in private credit, $1.7 trillion in high-yield bonds, and $1.7 trillion in bank syndicated leveraged loans.

JPMorgan is leaning into discipline rather than growth. “If our loan book were to decrease by 10% next year, we would be perfectly fine with that if it meant avoiding irresponsible loans,” Dimon said. The bank is sitting on $291 billion in CET1 capital, $572 billion in total loss-absorbing capacity, and $1.5 trillion in cash and marketable securities.

The Tension The consumer still looks fine on the surface. CFO Jeremy Barnum said “consumers and small businesses remain resilient with consumer spending growth continuing above last year’s pace.” Card net charge-offs ran at 3%, and the provision for credit losses fell to $2.51 billion, down 24% year over year.

Yet nonperforming exposure climbed 11% YoY to $11.0 billion, and nonaccrual loans in Asset & Wealth Management rose 53%. Bank of America (NYSE:BAC) CEO Brian Moynihan called it “a resilient American economy” with stable asset quality.

Dimon’s framing was unambiguous. “If a credit cycle occurs, it may be more severe than anticipated given the circumstances,” he said. “Asset prices will decline, and credit spreads will narrow.” Record quarter, record warning. Investors decide which signal to weigh more.