Track market-moving stories before they get noisy

HARDEEVILLE, S.C.--(BUSINESS WIRE)-- #DST--LRT Company, a land acquisition and real estate investment firm that specializes in land entitlements and ground lease financing, and sponsors 1031 exchange offerings, announced today that it has launched LRT Hardeeville Multifamily 1 DST. The all-cash, Delaware statutory trust private placement seeks to raise $21 million in equity. The offering is LRT's fifth Delaware statutory trust of a property ground-leased for development; the company's four prior DST o.

California gubernatorial candidate Steve Hilton joins 'Varney & Co.' to discuss his early lead in the governor's race and why he believes voters are ready for change after years of Democratic control.

HONOLULU--(BUSINESS WIRE)--Hilton Hawaiian Village Waikiki Beach Resort today announced the completion of the highly-anticipated renovation of its legendary Rainbow Tower, marking a major milestone during the resort's 65th anniversary year. An enduring symbol of Waikiki and one of Hawai‘i's most recognizable landmarks, the Rainbow Tower has been reimagined with refreshed guest rooms, locally inspired design, and curated artwork that celebrates the islands' rich culture, offering families and tra.

U.S. PayPal users traveling in China will soon be able to complete payments at tens of millions of Weixin Pay merchants across China by scanning QR codes.

PayPal Holdings, Inc. (PYPL) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

Starting in March 2026, Enrique Lores started his new role as PayPal's President and CEO. He was quick in announcing new rationalization efforts targeting $1.5 billion in annual run-rate savings. Management reiterated its previous guidance released last February, with adjusted free cash flows and share repurchases both expected at around $6.0 billion in 2026. Based on PYPL's current market capitalization of $39.0 billion, this represents a ~15% free cash flow yield, which is the highest in my coverage universe at the moment.

Everyone loves a good rebound stock, especially investors who’ve hung around long enough to benefit from a big bounce-back share price.

Exhibit A is Apple, which saw its stock fall to below $1.00 per share in 1997, mostly due to floundering financials, toxic management, near-bankruptcy, and a huge stock selloff purportedly engineered by co-founder Steve Jobs.

After Jobs reclaimed the big seat and streamlined the company’s product line and laid the groundwork for the iPod, iPhone, and Mac, AAPL’s stock took off on a nearly 30-year resurgence, and it’s trading at $312 today and boasts a $4.57 trillion market cap.

The lesson for investors is clear-cut. Truly elite rebound stocks often share common characteristics: strong brands, loyal customers, solid balance sheets and management teams capable of adapting when markets assume the worst.

Here are three companies that look primed for just that kind of rebound.

Internally, Globant’s C-suite is showing quiet confidence in the company.

Trading at $39 per share in late May, analyst consensus on GLOB is highly bullish at $60 per share, indicating 52.4% upside, which should steer plenty of investors into buy mode on Global SA stock soon enough.

PayPalThat’s evident in the current stock price, which stands at $44.00 per share heading into June. That’s down 23.4% for the year and down 36.4% over the last year. Yet a rally may be brewing with PayPal. Option calls have outpaced puts this month, and implied volatility has slid below its 52-week minimum.

So what does the smart money know about PayPal stock that Main Street investors don’t?

Benzinga has a consensus price target of $65 for the stock, based on a review of 41 Wall Street analysts. RBC Capital analyst Daniel Perlin is on board, issuing a Buy call on the stock and pegging the stock’s price target at $59 per share, noting the company’s restructuring efforts could stabilize operations.

For contrarian investors, the setup resembles other large-cap tech recoveries, where a once-dominant stock is regaining Wall Street’s confidence in mid-2026. For rebound-minded investors looking for a big brand name to buy at a discount, PayPal is making a good case for itself. 

The Next Major Catalyst Hits June 6. Are You Reading the Right Signals?

NikeMore broadly, the stock has fallen sharply again in 2026, down 26% year to date, with some analysts calling the current environment one of the most difficult stretches Nike has faced in decades. Yet several Wall Street firms believe Nike may finally be approaching a bottom, as the stock has returned 5.5% in May alone.

Barclays concurs with that assessment, recently upgrading the stock to “Overweight,” noting Nike likely reached a “fundamental bottom” after the massive selloff. The firm raised its price target to $73, citing operational improvements and more disciplined management execution under CEO Elliott Hill.

Why Rebound Stocks Are Up Off the Mat In 2026No doubt, investor focus has locked in on AI winners and mega-cap momentum trades in 2026. No surprise there, except that environment has left many out-of-favor companies trading at historically cheap valuations.

There’s also a decent case to be made that not every beaten-down stock recovers. Some laggards deserve their steep declines.

Yet companies with durable brands, strong balance sheets and viable long-term growth drivers often become attractive precisely when investor sentiment turns overwhelmingly negative. Sure, Globant, PayPal and Nike each face different risks. Yet all three still control major competitive advantages in large global markets.

If economic conditions stabilize, corporate spending improves, and investor appetite broadens beyond the narrow AI trade we’re seeing right now, this trio of stocks should turn heads as the most intriguing rebound candidates heading into the second half of 2026.

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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PayPal NASDAQ: PYPL President and CEO Enrique Lores outlined a broad operational and technology reset for the payments company at Bernstein's 46th Annual Strategic Decisions Conference, saying the company has substantial opportunities to simplify its structure, modernize its technology platform and reinvest savings into growth.

Paypal (PYPL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this technology platform and digital payments company have returned -10.3%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Financial Transaction Services industry, which Paypal falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Paypal is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.2%.

For the current fiscal year, the consensus earnings estimate of $5.3 points to a change of -0.2% from the prior year. Over the last 30 days, this estimate has changed -0.2%.

For the next fiscal year, the consensus earnings estimate of $5.78 indicates a change of +9.1% from what Paypal is expected to report a year ago. Over the past month, the estimate has changed -0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Paypal.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Paypal, the consensus sales estimate for the current quarter of $8.5 billion indicates a year-over-year change of +2.6%. For the current and next fiscal years, $34.26 billion and $35.71 billion estimates indicate +3.3% and +4.2% changes, respectively.

Last Reported Results and Surprise HistoryPaypal reported revenues of $8.35 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.33 a year ago.

Compared to the Zacks Consensus Estimate of $8.11 billion, the reported revenues represent a surprise of +2.96%. The EPS surprise was +5.51%.

Over the last four quarters, Paypal surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Paypal is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Paypal. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Paypal (PYPL) reported earnings 30 days ago. What's next for the stock?

PayPal Holdings, Inc. has shifted from a growth story to a deep value play, with top-line acceleration hopes dashed. Intense competition and market saturation have led to muted revenue and margin growth, but the stock trades at just 7.7x earnings. Management is targeting at least $1.5 billion in cost savings over 2–3 years, leveraging AI and aggressive share repurchases as key catalysts.

PYPL declines 8.6% in three months as weak 2026 guidance, macro headwinds and competition weighed, even as Venmo and AI commerce efforts expand.

Total revenue of $140 million in the first quarter of 2026 Pfizer agreement announced in January for non-exclusive license to utilize Matrix-M® in two infectious disease areas  In April, Novavax signed a new MTA with a top 10 leading pharmaceutical company and leader in oncology to explore Matrix-M in multiple oncology and infectious disease targets In April, Novavax expanded an existing partnership with a new MTA, providing access to Matrix-M for exploration in up to nine additional identified infectious diseases In February, Novavax expanded an existing MTA with a major global pharmaceutical company to explore an additional field and signed a new MTA with an oncology company Sanofi announced positive results from the Phase 4 COMPARE study, a head-to-head study comparing Nuvaxovid™ and Moderna's mNEXSPIKE that reinforces Nuvaxovid's well established and differentiated reactogenicity profile Novavax's C. difficile vaccine candidate prioritized with potential to enter the clinic as early as 2027 Reiterates 2026 Revenue Framework and Combined R&D and SG&A expense guidance , /PRNewswire/ -- Novavax, Inc. (Nasdaq: NVAX) today announced its financial results and operational highlights for the first quarter ended March 31, 2026.

"Novavax continued to make significant progress executing our corporate strategy, which is comprised of partnering our technology, capital-efficient R&D innovation and a lean operating platform. In 2026, we signed a new, Matrix-M license with Pfizer for up to two vaccine candidates and secured four additional MTAs with a growing list of large pharmaceutical and innovative biotech companies," said John C. Jacobs, President and Chief Executive Officer, Novavax. "With these agreements in place, our partners have the right to evaluate Matrix in over 30 unique fields of experimentation targeting more than 50% of the projected over $100 billion market for infectious disease and oncology vaccines and immuno-therapeutics. In addition, Novavax continued to advance our own R&D efforts with the selection of our C. difficile vaccine candidate as our next potential asset to advance to the clinic as early as 2027."

First Quarter 2026 and Recent Highlights

Key Business Highlights

In January 2026, Novavax entered into a license agreement with Pfizer for use of Novavax's Matrix-M adjuvant in vaccine development. Under the terms of the agreement, Pfizer was granted a non-exclusive license for Matrix-M use in two infectious disease areas.  Novavax received an upfront payment of $30 million in the first quarter of 2026 and has the potential for up to $500 million in additional development and sales milestones.  In addition, Novavax is eligible to receive high-mid-single digit percentage royalties on sales from products incorporating Matrix-M.  Pfizer will be solely responsible for the development and commercialization of its products utilizing Matrix-M, and Novavax will be responsible for the supply of Matrix-M.  This partnership has the potential to generate billions of dollars of revenue for Novavax over the life of the agreement.  In 2026, Novavax continued to expand its Matrix-M partnering efforts with global pharmaceutical companies and innovative biopharma companies. In April, Novavax signed a new material transfer agreement (MTA) with a top ten global pharmaceutical company who is also a global leader in oncology to explore Matrix-M in a broad array of oncology targets, as well as antibiotic resistant bacterial infections and other infectious diseases. In April, Novavax signed a new MTA with an existing pharmaceutical partner for evaluation of Matrix-M in nine additional, identified disease areas. In February, Novavax expanded an existing MTA with a major global pharmaceutical company to explore an additional field and signed a new MTA with an innovative oncology company. In total, Novavax now has MTA collaborations and/or license agreements with four of the top ten global pharmaceutical companies and a number of innovative biotech companies who, collectively, have the right to explore Matrix-M in over 30 unique fields of experimentation across both infectious diseases and oncology. The goal of Novavax's MTA collaborations is to enable exploration of Matrix-M with the intent of entering into deeper partnership via formal license agreements, that in turn results in the advancement of a partner's research and development (R&D) clinical work toward the potential commercialization of innovative vaccines. The broad utility of Novavax's technology has resulted in several companies exploring Matrix-M for application in the same high-potential markets, including infectious disease areas such as cytomegalovirus, Epstein-Barr Virus,  pneumococcal and respiratory syncytial virus (RSV); and also includes overlap in oncology areas such as colorectal cancer, head and neck cancer and pancreatic cancer. Existing partners under license and MTA agreements, have the right to address fields of experimentation that cover over 50% of the global market opportunity for infectious disease and oncology vaccines and immuno-therapeutics, which is projected to grow to over $100 billion by the early 2030s. In April, Sanofi announced positive Phase 4 results from the COMPARE study, a head-to-head study showing that Nuvaxovid™ demonstrated statistically significant lower side effects compared to Moderna's mNEXSPIKE across all pre-specified endpoints, reinforcing Nuvaxovid's well-established and differentiated reactogenicity profile ahead of the fall season. Continued to progress Novavax R&D innovation in support of its growth strategy.   Clostridioides difficile colitis (C. difficile) vaccine candidate prioritized as potential next asset to enter the clinic as early as 2027. Preliminary preclinical data generated by Novavax on its varicella-zoster virus (shingles) and RSV early-stage assets were positive and provide path forward for informing the Company's future antigen design and adjuvant work. Ongoing adjuvant research is intended to expand the utility of its technology by creating new adjuvants tailored to foster specific differentiated immune properties for certain diseases that may require unique immune responses. Novavax continued to progress its cost reduction program to create a more lean and agile organization.  Targeting full year Non-GAAP combined R&D and Selling, General and Administrative (SG&A) expenses of $325 million for full year 2026 and $225 million for full year 2027, each period at the midpoint of the guidance range. Improving the 2028 target for full year Non-GAAP combined R&D and SG&A expenses to between $150 million and $200 million. This reflects an anticipated expense reduction of over $200 million and over 50% when compared to full year 2025. First Quarter 2026 Total Revenue

First quarter 2025 Nuvaxovid sales included $603 million of non-cash sales related to the close-out of two Advance Purchase Agreements (APA). 

First Quarter

$ in millions

Q1 2026

Q1 2025

Change

%

Nuvaxovid Sales1

$10

$608

($598)

(98 %)

Supply Sales 2

33

14

19

139 %

Product Sales

42

622

(579)

(93 %)

Sanofi3

49

40

9

21 %

Pfizer

Takeda

30

0

30

NM

Serum

7

4

3

65 %

Other Partners 4

11

0

11

NM

Licensing, Royalties and
Other Revenue

97

45

52

116 %

Total Revenue

$140

$667

($527)

(79 %)

Notes 

1.

Nuvaxovid Sales reflects product sales where Novavax is the commercial market lead and records revenue related to the sales and distribution of its COVID-19 vaccine.

2.

Supply Sales includes sales of finished product, adjuvant and other supplies from Novavax to its license partners.

3.

Sanofi includes revenue recognized under the license agreement including upfront payments, milestones, royalties and transition services reimbursement.

4.

Other Partners include upfront payments, royalties and milestone revenue under licensing agreements including Takeda and SK bioscience.

First Quarter 2026 Financial Results

Total revenue for the first quarter of 2026 was $140 million, a 79% decrease compared to $667 million in the same period in 2025. Higher Nuvaxovid product sales for the first quarter of 2025 were primarily due to $603 million of non-cash sales revenue recognized with the close-out of two APAs. Licensing Royalties and Other revenue of $97 million in the first quarter of 2026 included $30 million related to the Pfizer Matrix-M agreement signed in January 2026. Cost of sales for the first quarter of 2026 was $31 million, compared to $14 million in the same period in 2025. R&D expenses for the first quarter of 2026 were $95 million, compared to $89 million in the same period in 2025. The higher R&D costs were primarily associated with COVID-19 postmarketing commitment studies and annual strain change activities. R&D expenses reimbursed by partners in the first quarter of 2026 were $28 million. Non-GAAP R&D expenses, net of partner reimbursement, were $68 million in the first quarter of 2026, a 13% decrease when compared to $78 million in the same period in 2025. The lower Non-GAAP R&D expenses were driven by the ongoing Novavax cost reduction program as it streamlines operations to make targeted R&D investments. SG&A expenses for the first quarter of 2026 were $29 million, a 40% decrease compared to $48 million for the same period in 2025. The decrease was primarily due to the transition of lead commercial activities to Sanofi and the elimination of commercial infrastructure plus the ongoing general administrative cost reduction program. Net Loss for the first quarter of 2026 was $9 million, compared to net income of $519 million in the same period in 2025. First quarter of 2025 net income benefited from $603 million of non-cash sales related to the close-out of two APA agreements.  Cash, cash equivalents, marketable securities and restricted cash (Cash) were $795 million as of March 31, 2026, compared to $751 million as of December 31, 2025. In February 2026, Novavax announced a $330 million credit facility with MidCap Financial, including an initial capital draw of $50 million. The credit facility was put in place to further strengthen Novavax's balance sheet and provide access to non-dilutive capital as Novavax advances its growth strategy. Financial Framework

Reiterates Full Year 2026 Financial Guidance

Novavax reiterates its Full Year 2026 Financial Guidance for Combined R&D and SG&A Expenses and Non-GAAP Combined R&D and SG&A Expenses and expects to achieve the following results:

$ in millions

Full Year 2026

(as of May 6, 2026)

Combined R&D and SG&A Expenses

$380 - $420

Less: R&D Reimbursements

($70 - $80)

Non-GAAP Combined R&D and SG&A Expenses

$310 - $340

Non-GAAP Combined R&D and SG&A Expenses exclude R&D Reimbursements, which are amounts reimbursed by Novavax's license partners. See "Non-GAAP Financial Measures" below. R&D Reimbursements are recorded as revenue under Licensing, Royalties and Other Revenue. 

Reiterates Full Year 2026 Revenue Framework

For 2026, Novavax reiterates its 2026 Revenue Framework and expects to achieve Adjusted Total Revenue4 of between $230 million and $270 million. Novavax transitioned lead commercial responsibility of Nuvaxovid beginning with the 2025-2026 COVID-19 vaccination season to Sanofi for select markets. Since Novavax is reliant on Sanofi's sales forecasts for certain revenue components, these are not included in the Full Year 2026 Revenue Framework.

$ in millions

Full Year 2026

(as of May 6, 2026)

Nuvaxovid Product Sales1

$35 - $45

Adjusted Supply Sales2

$40 - $50

Adjusted Licensing, Royalties and Other Revenue3

$155 - $175

Adjusted Total Revenue4

$230 - $270

Sanofi Supply Sales, Sanofi Royalties and Sanofi Milestones

No guidance

Revenue Category

Revenue Framework Footnotes

Nuvaxovid Product Sales1

$35 million to $45 million in Nuvaxovid Product Sales by Novavax under existing APA and commercial agreements. 

Adjusted Supply Sales2

$40 million to $50 million in Adjusted Supply Sales associated with collaborations with the Serum Institute on R21/Matrix-M and collaboration partners for COVID-19 vaccine, including Serum and Takeda. 

Adjusted Licensing, Royalties and Other Revenue3

$70 million to $80 million in R&D Reimbursement. Under the Sanofi co-exclusive licensing agreement (CLA), Novavax is eligible to receive reimbursement for costs incurred related to select R&D and technology transfer activities during the transition performance period.    $50 million to $60 million in Other Partner related revenue including royalties and milestones from Pfizer, Serum on R21/Matrix-M and collaboration partners for COVID-19 vaccine, including Serum and Takeda. Includes a $30 million upfront payment under the Pfizer agreement received in the first quarter of 2026. $35 million amortization related to the $500 million Upfront Payment and the $50 million Database Lock Milestone. Revenue recognition will occur over the transition performance period. Adjusted Total Revenue4

Adjusted Total Revenue is a Non-GAAP Financial Measure. Adjusted Total Revenue is total revenue excluding Sanofi Supply Sales, Sanofi Royalties and Sanofi Milestones. See "Non-GAAP Financial Measures." Components of Revenue excluded from the Full Year 2026 Revenue Framework are described below.

Sanofi Supply Sales

Novavax will sell Nuvaxovid commercial supply to Sanofi for the 2026-2027 COVID-19 vaccination season and the reimbursement for this supply will be recorded as product sales. Sanofi Royalties

Sanofi will lead commercial activities for the 2026-2027 COVID-19 vaccination season in select markets, including the U.S. Novavax is eligible to receive royalties in the high teens to low twenties percent on Sanofi sales. Sanofi Milestones

Novavax is eligible to receive a $75 million milestone payment related to the completion of the technology transfer of the Nuvaxovid manufacturing process to Sanofi. Novavax is eligible to receive up to $350 million in Phase 3 development and commercial launch milestone payments associated with Sanofi influenza-COVID-19 combination products. For each new vaccine using Matrix-M, Novavax is eligible to receive up to $200 million in launch and sales milestones and mid-single digit sales royalties for 20 years. Conference Call
Novavax will host its quarterly conference call today at 8:30 a.m. Eastern Time (ET). To join the call without operator assistance, you may register and enter your phone number at https://registrations.events/easyconnect/1309751/reczqKfVCuLMAhd3l/ to receive an instant automated call back. You may also dial direct to be entered into the call by an operator. The dial-in numbers for the conference call are (888) 880-3330 (Domestic) or (+1) (646) 357-8766 (International). Participants will be prompted to request to join the Novavax, Inc. call. A replay of the conference call will be available starting at 11:30 a.m. ET on May 6, 2026, until 11:59 p.m. ET on May 13, 2026. To access the replay by telephone, dial (800) 770-2030 (Domestic) or (+1) (609) 800-9909 (International) and use passcode 1309751#.

A webcast of the conference call can also be accessed on the Novavax website at ir.novavax.com/events. A replay of the webcast will be available on the Novavax website until June 6, 2026.

About Novavax
Novavax, Inc. (Nasdaq: NVAX) tackles some of the world's most pressing health challenges with its scientific expertise in vaccines and its proven technology platform, including its Matrix-M adjuvant and protein-based nanoparticles. The Company's corporate growth strategy is designed to deliver value via three key strategic pillars: partnering its technology, capital-efficient R&D innovation and a lean and efficient operating model. This includes maximizing impact through partnerships for its marketed products (Nuvaxovid, R21/Matrix-M™), Matrix technology and R&D assets. Please visit novavax.com and LinkedIn for more information.

Non-GAAP Financial Measures
The Company presents the following non-GAAP financial measures in this press release: Non-GAAP Combined R&D and SG&A Expenses, Adjusted Total Revenue and Adjusted Licensing, Royalties and Other Revenue. Non-GAAP financial measures refer to financial information adjusted from financial measures prepared in accordance with accounting principles generally accepted in the United States (GAAP). The Company believes that the presentation of these adjusted financial measures is useful to investors as they provide additional information on comparisons between periods by including certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes and to consider underlying trends of its business. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Our use of non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company is unable to reconcile these revenue forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable effort because the Company is reliant on Sanofi sales forecasts for certain revenue categories, which are not available.

Forward-Looking Statements
This press release contains forward-looking statements relating to the future of Novavax, its mission; its corporate strategy and operating plans, objectives and prospects; its value drivers and strategic priorities; its partnerships, including expectations with respect to potential partner product sales and royalties, milestones and other commercial objectives, and cost reimbursement, Matrix-M's potential utility in partners' vaccine portfolios and plans for additional potential partnering activities; the development of Novavax's clinical and preclinical product candidates and pipeline advancement opportunities the conduct, timing and potential results from clinical trials, conducted by Novavax or its partners, and other preclinical and postmarketing commitment (PMC) studies; expectations as to the timing and outcome of future and pending regulatory filings and actions; full year 2026 financial guidance and revenue framework; and Novavax's future financial or business performance. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, Novavax's ability to successfully and timely obtain and maintain full U.S. FDA licensure or foreign regulatory approvals necessary to manufacture, market, distribute, or deliver its COVID-19 vaccine; the impact of delays in obtaining regulatory approval, including regulatory decisions impacting labeling, approval or authorization, including the scope of the indicated population, product dosage, manufacturing processes, shelf life, safety, for our product candidates; challenges in conducting the PMC study, our ability to obtain adequate additional funding to maintain our current level of operations and fund the further development of our vaccine candidates; challenges related to Novavax's partnership with Sanofi, including collaboration on the Nuvaxovid PMC, and in pursuing additional partnership opportunities; challenges satisfying, alone or together with partners, various safety, efficacy, and product characterization requirements, including those related to process qualification, assay validation and stability testing, necessary to satisfy applicable regulatory authorities; challenges or delays in conducting clinical trials or studies for its product candidates; manufacturing, distribution or export delays or challenges; Novavax's substantial dependence on Serum Institute of India Pvt. Ltd. and Serum Life Sciences Limited for co-formulation and filling Novavax's COVID-19 vaccine and the impact of any delays or disruptions in their operations; the impact of potential legislative, regulatory, or policy changes under the current presidential administration, including any adverse impact funding for vaccine research and development, reimbursement for vaccines and their administration, vaccine mandates and recommendations, and public perception of vaccine importance; uncertainty with respect to pricing, third-party reimbursement and healthcare reform; uncertainty in the regulatory pathway for Novavax's COVID -19 Vaccine; the impact of any new or changes in interpretations of existing trade measures, including tariffs, embargoes, sanctions, import restrictions, and export licensing requirements; difficulty obtaining scarce raw materials and supplies including for its proprietary adjuvant; resource constraints, including human capital and manufacturing capacity; constraints on Novavax's ability to pursue planned regulatory pathways, alone or with partners, in multiple jurisdictions simultaneously, leading to staggering of regulatory filings, and potential regulatory actions; Novavax's ability to timely deliver doses; challenges in obtaining commercial adoption and market acceptance of its COVID-19 vaccine or any COVID-19 variant strain containing formulation, or for its CIC vaccine candidates, stand-alone influenza vaccine candidates or other candidates; challenges meeting contractual requirements under agreements with multiple commercial, governmental, and other entities, including requirements to deliver doses that may require Novavax to refund portions of upfront and other payments previously received or result in reduced future payments pursuant to such agreements; challenges related to the seasonality of vaccinations against COVID-19; challenges related to the demand for vaccinations against COVID-19 or influenza; challenges in identifying and successfully pursuing innovation expansion opportunities; Novavax's expectations as to expenses and cash needs may prove not to be correct for reasons such as changes in plans or actual events being different than its assumptions; and those other risk factors identified in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Novavax's Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission (SEC). We caution investors not to place considerable reliance on forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov and www.novavax.com, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

NOVAVAX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share information)

Three Months Ended March 31,

2026

2025

(unaudited)

Revenue:

Product Sales

42,200

621,678

Licensing, royalties and other

97,314

44,977

Total revenue

139,514

666,655

Expenses

Cost of Sales

30,695

14,115

Research and Development

95,472

88,937

Selling, general, and administrative

28,777

48,090

Total expenses

154,944

151,142

Income (loss) from operations

(15,430)

515,513

Other income (expense):

Interest expense

(4,901)

(5,723)

Other income, net

11,825

10,056

Income (loss) before income tax expense

(8,506)

519,846

Income tax expense

985

1,200

Net income (loss)

(9,491)

518,646

Net income (loss) per share

Basic

(0.06)

3.22

Diluted

(0.06)

2.93

Weighted average number of common shares outstanding

Basic

163,276

161,049

Diluted

163,276

177,625

SELECTED CONSOLIDATED BALANCE SHEET DATA

(in thousands)

March 31, 2026

December 31, 2025

(unaudited)

Cash and cash equivalents

228,363

240,634

Marketable securities

561,969

494,450

Total restricted cash

4,562

15,418

Total current assets

850,816

978,276

Working capital

508,355

518,326

Total assets

1,043,162

1,176,512

Convertible notes payable

291,039

244,213

Total stockholder's deficit

(144,762)

(127,753)

NOVAVAX, INC.

Reconciliation of GAAP to NON-GAAP Financial Results

(unaudited)

($ in millions)

Three Months Ended

March 31,

2026

2025

Total Revenue

139.5

666.7

Adjustments:

Sanofi Supply Sales Adjustment

17.1

1.2

Sanofi Royalties Adjustment

3.5

0

Adjusted Total Revenue

$                   118.9

$                   665.5

R&D Expenses

95.5

88.9

Adjustments:

R&D Reimbursement

27.7

11.3

Non-GAAP R&D Expenses

$                     67.8

$                     77.6

Combined R&D and SG&A Expenses

124.3

137.0

Adjustments:

R&D Reimbursement

27.7

11.3

Non-GAAP Combined R&D and SG&A Expenses

$                     96.6

$                   125.7

Contacts:

Investors
Jim Kelly
844-668-2829
[email protected]

Media
Yvonne Sprow
844-264-8571
[email protected]

SOURCE Novavax, Inc.

Novavax, Inc. (NVAX) Q1 2026 Earnings Call Transcript

Key Takeaways Novavax posted a narrower Q1 loss and revenues beat as Matrix-M licensing gained momentum.NVAX highlighted 30-plus Matrix-M evaluation fields spanning oncology and infectious diseases.Novavax expects operations funded into 2028 with partner reimbursements and new credit access. Novavax (NVAX - Free Report) incurred a loss of 6 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 25 cents. In the year-ago quarter, the company had recorded EPS of $2.93, driven by higher sales.

Quarterly revenues totaled $139.5 million, down 79% year over year. This metric beat the Zacks Consensus Estimate of $69.5 million.

Novavax’s shares were up about 16% yesterday, likely due to the better-than-expected results. The quarter reflected a business mix that is increasingly tied to partners, with management highlighting that partners now have rights to evaluate its proprietary Matrix-M technology in more than 30 fields spanning infectious diseases and oncology.

Shares of Novavax have increased 39% so far this year compared with the industry’s nil growth.

Image Source: Zacks Investment Research

NVAX’s Q1 Earnings in DetailA key theme this quarter was the shifting composition of revenues as NVAX prioritizes monetizing Matrix-M through partners. Product sales were led by supply activity and direct demand for the company’s COVID-19 vaccine, Nuvaxovid, in a smaller set of markets, while partner-related revenues benefited from licensing activity across multiple counterparties.

Novavax recorded $42.2 million in product sales, down 93% year over year. This includes about $10 million from Nuvaxovid, reflecting sales primarily in Germany for the 2025-2026 season and the continued transition of commercial responsibility in Europe to Sanofi (SNY - Free Report) . Supply sales were nearly $33 million, up 136% year over year, supported by higher demand for Matrix-M adjuvant from partners as well as COVID-19 supply to SNY.

Last year, Sanofi acquired exclusive rights to market Nuvaxovid globally, except in certain territories where Novavax maintains existing partnership agreements.

Licensing, royalties and other revenues totaled $97.3 million, including $30 million recognized as an upfront payment received from Pfizer (PFE - Free Report) in connection with a non-exclusive license agreement for Matrix-M signed earlier this year. The metric increased 116% on a year-over-year basis.

NVAX’s Costs Improve While Strengthening Liquidity ProfileResearch and development (R&D) expenses totaled $95.5 million, up 7% year over year, driven by increased costs tied to post-marketing commitments and annual strain change activities. This figure does not include the $28 million of R&D reimbursement from Sanofi.

Selling, general and administrative (SG&A) expenses declined 40% to $29 million. This downside was primarily due to the transition of lead commercial activities to Sanofi and the elimination of Novavax’s commercial infrastructure.

As of March 31, 2026, Novavax had $795 million in cash and cash equivalents compared with $751 million in the previous quarter. Management also highlighted access to additional non-dilutive capital, including a new $330 million credit facility established in the first quarter, with an initial $50 million draw.

Based on quarter-end liquidity and anticipated partner reimbursements, management said it believes the company can fund operations into 2028 before considering any incremental cash flow from future upfront payments, milestones or royalties.

NVAX’s Financial GuidanceFor 2026With Sanofi leading commercialization in key COVID-19 markets, NVAX continues to emphasize an adjusted revenue framework rather than total revenue guidance. For 2026, the company reiterated an adjusted total revenue outlook of $230 million to $270 million, which does not include any amounts receivable from SNY.

Novavax expects full-year combined R&D and SG&A expenses to be in the band of $380-$420 million. This figure excludes $70 million to $80 million in anticipated R&D reimbursements from Sanofi.

Beyond 2026Novavax reiterated that adjusted combined R&D and SG&A expenses, inclusive of R&D reimbursements, are expected to be approximately $225 million in 2027 (at the midpoint).

For 2028, the company refined its target range to $150-$200 million from its prior goal of below $200 million.

NVAX Builds a Wider Funnel for Matrix-M ApplicationsNovavax continues to position Matrix-M as the centerpiece of its partnering strategy. During the quarter, the company emphasized that its non-exclusive model enables multiple companies to explore similar high-potential areas, which can increase the probability of downstream success and broaden potential royalty streams.

Operationally, management noted that it signed four new material transfer agreements in early 2026, including a new oncology-focused collaboration with a top-10 global pharmaceutical company last month. NVAX also pointed to expanding activity with existing counterparties, including a new agreement allowing preclinical work in up to nine additional infectious disease fields.

Novavax Highlights C. Diff as Next In-House Value CatalystBeyond partnering, Novavax is selectively advancing internal R&D to support future deals and generate differentiated proof points. The company prioritized its Clostridium difficile colitis (C. Diff.) vaccine candidate as its next potential program to enter the clinic, targeting entry as early as 2027.

Management framed C. Diff. as a large unmet-need opportunity with no approved vaccine today and indicated the candidate is designed with broader coverage using multiple antigens, along with an emphasis on mucosal immunity, given the gut-based nature of infection. Novavax also stated that it is conducting an IND-enabling repeat-dose toxicity study and expects to pursue pre-IND discussions with the FDA to inform next steps.

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

Bloomberg noted that Moderna said it is conducting early-stage research into vaccines targeting hantaviruses, even as health experts suggest the virus linked to recent cruise ship deaths is unlikely to become a broader public health threat.

The COVID-19 vaccine maker confirmed it has been working with the U.S. Army Medical Research Institute of Infectious Diseases on hantavirus vaccine research.

"These efforts are early-stage and ongoing and reflect Moderna's broader responsibility to develop countermeasures against emerging infectious diseases," the company told Bloomberg.

In September 2024, the Vaccine Innovation Center at Korea University College of Medicine (VIC-K, Director Heejin Cheong) entered into a full-scale collaboration with global pharmaceutical company Moderna to develop an mRNA-based hantavirus vaccine.

Since signing a research agreement, the two institutions have collaborated through Moderna’s global public health initiative, the mRNA Access Program.

WHO Identifies Multiple CasesThe World Health Organization has identified at least six confirmed hantavirus cases and two suspected infections linked to the outbreak. Three additional passengers have died, according to the report.

Hantaviruses are typically spread through contact with infected rodents and can cause severe respiratory illness in humans.

The company reported a relative vaccine efficacy of 26.6% overall, including 29.6% for A/H1N1, 22.2% for A/H3N2, and 29.1% for the B/Victoria lineage, with 27.4% efficacy in participants 65 and older.

Novavax reported quarterly sales of $139.51 million, beating the $78.32 million estimate.

The company reported a net loss of $9 million, compared to net income of $519 million a year ago.

First quarter of 2025 net income benefited from $603 million of non-cash sales related to the close-out of two APA agreements.  

NVAX Price Action: Novavax shares were up 13.16% at $10.44 at the time of publication Friday, according to Benzinga Pro.

Over the past month, NVAX has gained about 8.5% versus a 9.0% rise in the S&P 500 and is up roughly 38% year-to-date compared to the index’s 7.5% gain.

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Shares of Moderna (NASDAQ:MRNA | MRNA Price Prediction) are up roughly 6% in Monday morning trading, changing hands near $57.52 after Friday's close of $54.35.

Novavax, Inc. (NVAX) Presents at Bank of America Global Healthcare Conference 2026 Transcript

GAITHERSBURG, Md., June 1, 2026 /PRNewswire/ -- Novavax, Inc. (Nasdaq: NVAX) today announced it will participate in the 2026 Jefferies Global Healthcare Conference.

A month has gone by since the last earnings report for Novavax (NVAX - Free Report) . Shares have added about 10.4% in that time frame, outperforming the S&P 500.

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

Q1 Earnings & Sales Beat EstimatesNovavax incurred a loss of 6 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 25 cents. In the year-ago quarter, the company had recorded EPS of $2.93, driven by higher sales.

Quarterly revenues totaled $139.5 million, down 79% year over year. This metric beat the Zacks Consensus Estimate of $69.5 million.

Quarter in DetailA key theme this quarter was the shifting composition of revenues as NVAX prioritizes monetizing Matrix-M through partners. Product sales were led by supply activity and direct demand for the company’s COVID-19 vaccine, Nuvaxovid, in a smaller set of markets, while partner-related revenues benefited from licensing activity across multiple counterparties.

Novavax recorded $42.2 million in product sales, down 93% year over year. This includes about $10 million from Nuvaxovid, reflecting sales primarily in Germany for the 2025-2026 season and the continued transition of commercial responsibility in Europe to Sanofi. Supply sales were nearly $33 million, up 136% year over year, supported by higher demand for Matrix-M adjuvant from partners as well as COVID-19 supply to Sanofi.

Last year, Sanofi acquired exclusive rights to market Nuvaxovid globally, except in certain territories where Novavax maintains existing partnership agreements.

Licensing, royalties and other revenues totaled $97.3 million, including $30 million recognized as an upfront payment received from Pfizer in connection with a non-exclusive license agreement for Matrix-M signed earlier this year. The metric increased 116% on a year-over-year basis.

Costs Improve While Strengthening Liquidity ProfileResearch and development (R&D) expenses totaled $95.5 million, up 7% year over year, driven by increased costs tied to post-marketing commitments and annual strain change activities. This figure does not include the $28 million of R&D reimbursement from Sanofi.

Selling, general and administrative (SG&A) expenses declined 40% to $29 million. This downside was primarily due to the transition of lead commercial activities to Sanofi and the elimination of Novavax’s commercial infrastructure.

As of March 31, 2026, Novavax had $795 million in cash and cash equivalents compared with $751 million in the previous quarter. Management also highlighted access to additional non-dilutive capital, including a new $330 million credit facility established in the first quarter, with an initial $50 million draw.

Based on quarter-end liquidity and anticipated partner reimbursements, management said it believes the company can fund operations into 2028 before considering any incremental cash flow from future upfront payments, milestones or royalties.

Financial GuidanceFor 2026

With Sanofi leading commercialization in key COVID-19 markets, Novavax continues to emphasize an adjusted revenue framework rather than total revenue guidance. For 2026, the company reiterated an adjusted total revenue outlook of $230 million to $270 million, which does not include any amounts receivable from Sanofi.

Novavax expects full-year combined R&D and SG&A expenses to be in the band of $380-$420 million. This figure excludes $70 million to $80 million in anticipated R&D reimbursements from Sanofi.

Beyond 2026

Novavax reiterated that adjusted combined R&D and SG&A expenses, inclusive of R&D reimbursements, are expected to be approximately $225 million in 2027 (at the midpoint).

For 2028, the company refined its target range to $150-$200 million from its prior goal of below $200 million.

How Have Estimates Been Moving Since Then?It turns out, estimates revision flatlined during the past month.

The consensus estimate has shifted -9.85% due to these changes.

VGM ScoresCurrently, Novavax has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.

Outlook Novavax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerNovavax belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Moderna (MRNA - Free Report) , has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Moderna reported revenues of $389 million in the last reported quarter, representing a year-over-year change of +260.2%. EPS of -$1.18 for the same period compares with -$2.52 a year ago.

Moderna is expected to post a loss of $2.00 per share for the current quarter, representing a year-over-year change of +6.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.9%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moderna. Also, the stock has a VGM Score of C.

In the latest close session, Novavax (NVAX - Free Report) was down 1.66% at $8.88. The stock trailed the S&P 500, which registered a daily gain of 0.5%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.31%.

The vaccine maker's stock has dropped by 3.42% in the past month, falling short of the Medical sector's gain of 5.49% and the S&P 500's loss of 0.23%.

Analysts and investors alike will be keeping a close eye on the performance of Novavax in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.36, marking a 158.06% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $49.81 million, indicating a 79.18% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.19 per share and a revenue of $371.85 million, indicating changes of -107.36% and -66.9%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Novavax. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.72% upward. Currently, Novavax is carrying a Zacks Rank of #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 40% of all industries, numbering over 250.

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

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Qualcomm (NASDAQ:QCOM) just gave investors two different reads on the AI chip economy.

Shares of Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) are down 8% to $201 in Tuesday morning trading, while Marvell Technology (NASDAQ:MRVL) shares are off 10% to $260. The catalyst centers on news that ByteDance is moving forward with a custom AI silicon (ASIC) deal that touches Qualcomm directly, reshaping the merchant custom-silicon narrative across the sector.

The selling action looks counterintuitive given the strategic upside the ByteDance partnership could deliver for Qualcomm. Yet, sector-wide pressure on custom-silicon names is amplifying the move and dragging Marvell stock down alongside it, raising fresh questions about how investors value merchant ASIC providers in an era of hyperscaler self-design.

ByteDance Deal Stirs a Despite or Because Of Debate The reported ByteDance engagement extends Qualcomm’s reach beyond smartphones and into data center AI silicon. That fits with what Qualcomm CEO Cristiano Amon stated on the company’s Q2 FY2026 call: “We are equally excited by our entry into the data center, where a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.” The corresponding 8-K filing from late April detailed handset weakness offset by record automotive revenue.

The Qualcomm story now extends beyond mobile dependency. Handset revenue was down 13% year over year (YoY) to $6.02 billion in Q2 FY2026, while automotive climbed to a record $1.33 billion, up 38% YoY. Diversification into data center silicon can help reduce concentration in smartphones, where Apple‘s (NASDAQ:AAPL) in-house modem ambitions remain a long-term concern.

Investors appear to be weighing several offsetting concerns on Qualcomm stock. Export regulation risk on advanced AI chips tied to a Chinese customer is a legitimate question, and a classic sell-the-news reaction can hit even strategically positive announcements. Margin and competitive worries in the custom-silicon market are also in play.

The longer-term setup still looks intriguing, though. QCOM stock is up 18% year to date (YTD), and the company’s Investor Day on June 24 will detail its data center and Physical AI roadmap. Qualcomm trades at a forward P/E ratio of 20x, with an analyst consensus price target near $180.48.

Marvell Slides as the Custom-Silicon Trade Unwinds Marvell Technology sits at the heart of the custom-AI-ASIC theme, so any signal of hyperscaler or large customer vertical integration tends to weigh on MRVL stock. The company flags this in its own filings, citing the “Risk that customers develop own solutions or vertically integrate” as a tangible factor for the business.

The fundamental backdrop remains strong, however. Marvell Technology reported Q1 FY2027 revenue of $2.42 billion, up 28% YoY, and CEO Matt Murphy described the data center business as “on fire.” The company guided Q2 FY2027 revenue near $2.7 billion, with custom silicon projected to exceed $10 billion by fiscal 2029.

Marvell Technology’s data center segment generated $1.83 billion in Q1 FY2027 revenue, with that segment representing 76% of total sales. The company has expanded through acquisitions of Celestial AI and XConn Technologies for photonic fabric and chiplet connectivity, building a connectivity and custom-compute platform that also concentrates exposure to hyperscaler decision-making.

MRVL stock has surged 210% YTD, helped by NVIDIA (NASDAQ:NVDA) CEO Jensen Huang publicly calling Marvell Technology the “next trillion-dollar company” and the announcement that Marvell will join the S&P 500 effective June 22. That parabolic run leaves Marvell Technology stock more sensitive to negative custom-silicon headlines than fundamentals alone might suggest.

What Investors Should Watch Next The custom-silicon trade has been one of the most crowded positionings in tech, and big single-day drawdowns can shake out leveraged holders quickly. Semiconductor names may be vulnerable to a synchronized unwind, and this dynamic appears to be playing out across Qualcomm stock, Marvell stock, and peers including Broadcom (NASDAQ:AVGO).

Investors may want to size their positions carefully and watch for whether Qualcomm frames the ByteDance relationship and export-control exposure ahead of its June 24 Investor Day. For Marvell Technology, the next signal on whether AI-ASIC demand is broadening could come from hyperscaler capex commentary and follow-on custom-silicon customer wins.

The bull case rests on Qualcomm building a durable data center franchise and Marvell extending its custom-silicon lead with Amazon‘s (NASDAQ:AMZN) Trainium and Microsoft‘s (NASDAQ:MSFT) Maia programs. The bear case centers on geopolitical risk, customer in-housing, and stretched valuations, with Marvell Technology stock trading at a forward P/E ratio of 65x. Both narratives may be tested in the days to come.

SHENZHEN, CHINA - MAY 28: The Qualcomm logo is displayed on a building on May 28, 2026 in Shenzhen, Guangdong Province, China. Qualcomm is a U.S.-based semiconductor and wireless technology company known for its Snapdragon processors and mobile communications technologies used in smartphones and connected devices worldwide. (Photo by Cheng Xin/Getty Images)

Getty Images

This article was written and reviewed by Doug Nathman and his team at Trefis. For questions, email [email protected]

After years as a market underperformer, what has led investors to finally take notice?

If you weren't paying attention, you might have overlooked it. From March 10, 2026, to June 8, 2026, shares of Qualcomm (QCOM) experienced a significant climb, increasing by 61.7%. To put it in perspective, this far surpassed the S&P 500’s return of 9.5% and left numerous other semiconductor rivals like Broadcom trailing behind.

So, what was the catalyst? For a considerable time, the narrative surrounding this firm was repetitive: smartphone cycles, demand from China, and its complex relationship with Apple. However, during this timeframe, Wall Street shifted its focus to a completely different narrative.

The Engine Finally RoarsThe most substantial indication of a new era came from the automotive sector. The company announced record automotive revenues of $1.3 billion, which marked a 38% increase year-over-year. This was far from negligible, serving as a clear indication that Qualcomm's much-anticipated expansion into the automotive market is gaining momentum. The storyline is evolving from a gamble on future automotive technology to a business that is currently generating real, accelerating growth.

An Unexpected AI Plot TwistThe true catalyst for this surge, however, was the unexpected credibility of its AI objectives. While the mobile device sector managed its inventory challenges, the company was actively making significant moves elsewhere. News of a contract to provide AI chips to ByteDance, the parent company of TikTok, made headlines. Furthermore, during its earnings call, management disclosed that it was “commencing our ramp with a leading hyperscaler” for custom semiconductor manufacturing. What was previously mere speculation has transformed into a new growth narrative with a defined timeline, shifting Qualcomm’s focus from just smartphones to the expansive data centers that fuel cloud computing. This same systematic focus on secular growth drivers is how our HQ Portfolio targets high-conviction opportunities across the broader market

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This transformation is occurring as the company’s total revenue growth is already gaining traction, recording a 5.2% increase over the past year, up from a 3.3% average over three years. The market appreciates a comeback but cherishes a reinvention even more. This 61.7% surge represents a belief that Qualcomm is evolving into something beyond just a mobile phone producer.

Yet, with management still asserting that its China Android revenue is “bottoming out,” has the stock’s valuation outpaced the company’s actual transformation?

In the latest close session, Qualcomm (QCOM - Free Report) was down 6.96% at $191.12. The stock's change was less than the S&P 500's daily loss of 1.62%. Elsewhere, the Dow lost 1.87%, while the tech-heavy Nasdaq lost 1.98%.

Coming into today, shares of the chipmaker had lost 2.33% in the past month. In that same time, the Computer and Technology sector lost 0.74%, while the S&P 500 lost 0.03%.

Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company is predicted to post an EPS of $2.26, indicating a 18.41% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.7 billion, reflecting a 6.46% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.8 per share and a revenue of $42.73 billion, representing changes of -10.22% and -3.2%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Qualcomm is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 19.02. This valuation marks a discount compared to its industry average Forward P/E of 48.66.

It is also worth noting that QCOM currently has a PEG ratio of 18.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry had an average PEG ratio of 1.94 as trading concluded yesterday.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.