Intuit rozšiřuje QuickBooks Online Advanced a Intuit Enterprise Suite pro větší firmy a přidává funkce AI pro reporting, odhalování anomálií i workflow. Cílem je vyšší retence, více cross-sellu a růst tržeb na jednoho zákazníka.
Key Takeaways Intuit is targeting larger businesses with QuickBooks Online Advanced and complex organizations with IES.Intuit Intelligence Chat uses natural language to generate reports, spot anomalies and initiate workflows.AI, payments, forecasting and industry tools could boost retention, revenue per customer and cross-selling.
Intuit Inc. (INTU - Free Report) is significantly expanding its mid-market strategy by positioning QuickBooks Online Advanced for larger, fast-growing businesses and Intuit Enterprise Suite (“IES”) for complex, multi-entity organizations. Its key product push, Intuit Intelligence Chat, allows finance teams to ask questions, generate reports, identify anomalies, analyze budgets and initiate workflows using natural language.
IES is adding capabilities to address complex business needs, including multi-entity accounting, intercompany accounting and consolidation. AI can also help draft intercompany entries based on historical transactions, allowing businesses to automate repetitive accounting tasks while retaining human review.
QuickBooks Online Advanced is broadening beyond core accounting with AI bookkeeping, real-time business intelligence, KPI reporting, forecasting, payments and bill pay. Intuit is also adding industry-specific tools for construction, manufacturing and nonprofits, helping businesses manage more specialized financial and operational requirements.
For Intuit, the broader product suite could support higher customer retention, increased revenue per customer and stronger cross-selling. As businesses become more complex, keeping them within Intuit’s ecosystem could reduce customer losses to competing ERP platforms. Additional AI, payments, bill pay and forecasting services could also create more monetization opportunities, while the move into mid-market customers expands Intuit’s addressable market and strengthens its long-term growth potential.
How Are INTU’s Competitors Pushing AI?Oracle (ORCL - Free Report) is strengthening its AI push by embedding AI agents across its cloud and business applications. In fourth-quarter fiscal 2026, Oracle’s revenues rose 21% year over year to $19.2 billion, while cloud revenues surged 47% to $9.9 billion. Cloud infrastructure revenues jumped 93% to $5.8 billion, highlighting strong AI-driven cloud demand and reinforcing Oracle’s competitive position as Intuit expands its own AI and ERP offerings.
Microsoft (MSFT - Free Report) is pushing AI deeper into Dynamics 365, its ERP and business applications platform. Dynamics 365 revenues grew 19% year over year in second-quarter fiscal 2026, with growth across workloads. Microsoft is adding AI agents and Copilot capabilities to finance, supply chain and other business processes, increasing competitive pressure as Intuit moves further into the mid-market.
INTU’s Price Performance, Valuation and EstimatesShares of Intuit have rallied 18.5% over the past month, underperforming the broader industry but outperforming the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.83X, which is at a discount to the industry average of 6.21X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised downward by a cent to $23.85 over the past month. The consensus estimate for 2026 calls for 18.4% growth year over year.
Image Source: Zacks Investment Research
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech sector has been feast or famine at various points this year. It's been strongly affected by the irresistible rise of artificial intelligence (AI). This is the big story in the industry for many investors, and companies at the heart of technology have attracted great interest from the market.
Flush with cash, many have opened their wallets for generous dividend raises of at least 10%. Here's a closer look at three such recent lifts from well-known AI chipmakers -- Nvidia (NVDA +0.54%), Taiwan Semiconductor Manufacturing (TSM +0.31%), and Broadcom (AVGO +0.43%).
Image source: Getty Images.
1. Nvidia Of our trio, Nvidia takes the crown -- and how -- for the highest-percentage dividend raise. It hiked its payout an eye-watering 2,400%!
The big asterisk next to that figure, however, is that Nvidia started from a very low base. With a 10-for-1 stock split in mid-2024, its quarterly distribution was reset at $0.01 per share. It hiked that to $0.25 starting with the June 2026 disbursement.
That's a lot more spend on the shareholder payout, but no one should worry that Nvidia risks financial ruin. (It also added a cool $80 billion to its share repurchase program, adding to the existing $38.5 billion already under authorization.)
These days, its business is hotter than a greenhouse in August. In the fiscal first quarter of 2027, revenue surged 85% higher year over year to nearly $82 billion, while headline net income more than tripled to over $58 billion.
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Simply put, Nvidia is the go-to chipmaker for the AI revolution. For many clients wanting to build out AI compute, the company's silicon isn't simply the best choice, it's the only choice. To my mind, as long as the AI revolution lasts, Nvidia's going to be right at the front of it.
The company's stock has become awfully expensive on both price and valuation. However, it conveys ownership of a business that's currently changing our world forever. I'd say that's worth a high premium, and I'd be a buyer of the stock regardless.
Nvidia's $0.25 per-share payout currently yields nearly 0.5%.
2. Taiwan Semiconductor Taiwan Semiconductor is the chip factory (or foundry, in industry parlance) to the global tech industry. It's far and away the leading third-party semiconductor maker, creating chips for a dizzyingly large list of clients around the globe -- including, importantly, Nvidia.
This is as successful a business as you'd expect. Reflecting this, in May the company declared a nearly 17% dividend raise, from 6 New Taiwan dollars ($0.19) per share to NT$7 ($0.22). This raise hasn't kicked in yet -- it takes effect with the payout slated to occur Oct. 8, for investors of record as of Sept. 16.
The company's recent growth has been almost Nvidia-like. In July alone, it earned revenue of NT$467.6 billion ($14.5 billion), which was nearly 45% higher year over year.
Last month, it published its Q2 results, revealing a 36% increase in net sales to NT$1.27 trillion ($39.5 billion) and a 77% gain in headline net income to NT$706.5 billion ($21.9 billion). Again, as with Nvidia, Taiwan Semi is a top choice for outsourced chipmaking, and with the explosion of AI, it's reaping the rewards.
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The only factor that would make me hesitant to own the company's stock is the possibility that Taiwan's political situation with China could worsen. Yet I feel there's at least some awareness in those nations that any major conflict could be ruinous to both.
Meanwhile, the stock is cheaper on a valuation basis than Nvidia and will boast a higher dividend yield on each of its U.S.-listed American Depositary Shares, at roughly 1% based on the current exchange rate.
3. Broadcom Broadcom distinguishes itself from its two chip industry peers by specializing in customization. It designs silicon with (and for) clients known as application-specific integrated circuits (ASICs), engineered for their particular needs.
Broadcom's customer lineup has plenty of famous names from the tech world. A leading example is its work with Alphabet's Google to develop that company's Tensor Processing Units (TPUs), which are considered among the most cutting-edge AI processors on the market.
Interestingly, in the often-circular AI industry, the TPUs that Google and Broadcom concoct are manufactured by Taiwan Semiconductor.
Broadcom began its current fiscal year (2026) with raising its quarterly dividend by just over 10% to $0.65 per share. It clearly -- and correctly -- anticipated that its recent double-digit increases in key fundamentals would be more than sufficient to fund the enhanced payout.
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The company's net revenue ballooned by 48% year over year to almost $22.19 billion in fiscal Q2, reported in June. It almost doubled headline net income, to over $9.31 billion from slightly under $4.97 billion.
Broadcom has found quite a large and lucrative niche in which to operate. This has, predictably, attracted competitors, most notably the smaller but very ambitious Marvell Technology. Yet analysts put Broadcom's market share at a commanding 55% to 60%, and in the high-stakes game of AI build-outs, players like to go with a company that's trusted by many to do the work. AI is also a rising tide that will lift all the sturdy boats, so I wouldn't worry if Broadcom's share dips a little.
The company most recently paid the $0.65-per-share dividend at the end of June. It yields 0.6%.
Stryker za tři měsíce vzrostl o 13,6 % díky oživení provozu. Ve 2. čtvrtletí organické tržby stouply o 9 % a upravený EPS vzrostl o 17,9 % na 3,69 USD.
Key Takeaways Stryker shares rose 13.6% in three months as Q2 organic sales grew 9% and adjusted EPS climbed 17.9%.SYK faces production, vascular backlog and cyber-cost pressures as it works to sustain second-half momentum.Stryker trades at 21.6X forward earnings, above the sub-industry's 17.5X but below its five-year median.
Stryker Corporation (SYK - Free Report) shares have risen 13.6% in the past three months, outpacing the Zacks Medical sector’s 12.9% gain and the S&P 500’s 1.7% advance. The move has coincided with a sharper operating recovery after a difficult first quarter.
The investor question is whether improving sales, margins and production can keep supporting the stock, or whether execution demands and a richer relative valuation now make the next leg higher harder to achieve.
Image Source: Zacks Investment Research
Why Stryker’s Three-Month Rally Has SupportStryker’s second-quarter results gave investors firmer operating evidence. Organic sales increased 9%, while adjusted earnings rose 17.9% to $3.69 per share. Management said the company exited the quarter with regained momentum after the March cybersecurity disruption.
Demand remained broad across the portfolio. MedSurg and Neurotechnology organic sales increased 9.2%, while Orthopaedics rose 8.6%. That breadth matters because the recovery is not resting on one product line or a single procedural category.
Stryker’s Q2 Recovery Reset the NarrativeCapital equipment was a major contributor as production came back online, and Stryker ended the quarter with elevated backlog and strong orders. Mako also posted its best-ever second quarter for installations in both the United States and international markets, with utilization continuing to rise.
The competitive backdrop remains active. Zimmer Biomet Holdings, Inc. (ZBH - Free Report) reported 4% organic constant-currency sales growth in its latest quarter and is advancing its ROSA robotic platform. Intuitive Surgical, Inc. (ISRG - Free Report) reported 16% growth in combined da Vinci and Ion procedures and placed 468 da Vinci systems, underscoring continued demand for robotic-assisted care.
SYK Still Faces Execution Tests in the Second HalfThe recovery is not complete. Management still needs to ramp production fast enough to convert a large capital order book, while U.S. Peripheral Vascular back orders are expected to fall to a manageable level by the end of the third quarter.
Costs remain another watch point. Cyber remediation and stabilization spending will continue through the year, while manufacturing and supply-chain costs were roughly a 100-basis-point first-half gross-margin headwind. Those pressures could affect delivery timing and operating leverage if recovery work takes longer than planned.
Valuation Could Cap Stryker’s Next Leg HigherAfter the rally, Stryker trades at 21.6X forward 12-month earnings. That is above the Zacks sub-industry’s 17.5X multiple, suggesting investors are already paying a premium for Stryker’s growth profile and recovery prospects.
The signal is not uniformly expensive, however. SYK remains below its own five-year median of 26X. That leaves valuation in a middle ground: richer than peers, but still below the stock’s longer-term norm.
Image Source: Zacks Investment Research
Wrapping UpStryker’s operating case has improved, but the next phase depends on execution. Production recovery, vascular backlog reduction and continued earnings momentum need to hold up against lingering remediation and manufacturing costs.
Currently, Stryker carries a Zacks Rank #3 (Hold). Likewise, Zimmer Biomet and Intuitive Surgical also carry a Zacks Rank of 2. The investment decision is better anchored to valuation, second-half execution and the durability of earnings growth rather than assuming the recent rally will continue.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Coinbase is expanding beyond spot trading through derivatives, global products and tokenization.COIN's Deribit integration aims to improve execution, liquidity and institutional trading infrastructure.Coinbase's Abu Dhabi tokenization hub could support issuance, custody, trading and settlement.
Coinbase Global’s (COIN - Free Report) growth story is increasingly extending beyond crypto prices and spot trading. The company is positioning itself as a global financial infrastructure platform for the next generation of markets through several strategic initiatives.
The integration of Deribit brings one of the world’s leading crypto derivatives platforms into Coinbase’s ecosystem. Now COIN is rolling out a new high-performance matching engine to enable faster execution, deeper liquidity, and the infrastructure demanded by sophisticated institutional traders. It also moves Coinbase closer to capturing a larger share of global derivatives activity.
Geographic expansion is another key growth driver. Coinbase has launched futures, perpetuals, and options for professional investors in the UK, providing institutional clients with access to a broader range of products. These offerings support the company’s evolution from a primarily crypto-focused exchange into a comprehensive, multi-asset trading venue.
Coinbase has also secured regulatory approval to establish an international tokenization hub in Abu Dhabi. This positions the company to participate in the migration of traditional financial assets onto blockchain infrastructure. Over time, tokenized securities could create substantial opportunities across issuance, custody, trading and settlement.
Together, these initiatives create a compelling growth narrative. Derivatives strengthen Coinbase’s trading engine, international expansion broadens its institutional reach, and tokenization opens a significant long-term market. COIN is steadily emerging as a core financial platform for the onchain economy.
What About Its Peers?Robinhood Markets (HOOD - Free Report) stays focused on accelerating growth through rapid product innovation and global expansion. Robinhood has been engaging in opportunistic acquisitions to deepen its footprint and expand its product reach within the United States and globally. Robinhood also noted that AI features and fast rollouts are increasing engagement, premium monetization and retention, while stronger tools attract both retail and advanced traders.
Interactive Brokers (IBKR - Free Report) continues to explore growth opportunities in the emerging markets of Taiwan, Mexico and India. Given the rapid growth of its European business, Interactive Brokers has substantially expanded its operations there. Interactive Brokers has been undertaking several measures to enhance its global presence.
COIN’s Price PerformanceShares of COIN have lost 33.5% in the year-to-date period, underperforming the industry.
Image Source: Zacks Investment Research
COIN’s Expensive ValuationCOIN trades at a price-to-earnings ratio of 67.86, significantly above the industry average of 17.05.
Image Source: Zacks Investment Research
Estimate Movement for COINThe Zacks Consensus Estimate for COIN’s third-quarter and fourth-quarter 2026 earnings per share (EPS) witnessed southbound movement in the last 30 days. The same holds true for 2026 and 2027.
Image Source: Zacks Investment Research
The consensus estimates for COIN’s 2026 revenues and earnings indicate year-over-year decreases. Nonetheless, the consensus estimates for 2027 revenues and earnings imply year-over-year increases.
COIN stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Paysafe Limited (PSFE) Q2 2026 Earnings Call August 13, 2026 8:30 AM EDT
Company Participants
Kirsten Nielsen - Senior Vice President of Investor Relations
Bruce Lowthers - CEO & Executive Director
John Crawford - Chief Financial Officer
Conference Call Participants
Matthew Nakajima-Inglis - RBC Capital Markets, Research Division
James Friedman - Susquehanna Financial Group, LLLP, Research Division
Timothy Chiodo - UBS Investment Bank, Research Division
Presentation
Operator
Greetings. Welcome to the Paysafe Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Kirsten Nielsen, Head of Investor Relations. Thank you, Kirsten. You may begin.
Kirsten Nielsen
Senior Vice President of Investor Relations
Thank you, and welcome to Paysafe's Earnings Conference Call for the second quarter of 2026. Joining me today are Bruce Lowthers, Chief Executive Officer; and John Crawford, Chief Financial Officer. Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent SEC reports. These statements reflect management's current assumptions and expectations and are subject to factors that may cause actual results to differ materially from those forward-looking statements. You should not place undue reliance on these statements.
Forward-looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them. Today's presentation also contains non-GAAP financial measures. You can find additional information about these measures and reconciliations to the most directly comparable GAAP financial measures in today's press release and in the appendix of this presentation, which are available on the Investor Relations section of our website.
With that, I'll turn the call over to Bruce.
Bruce Lowthers
CEO & Executive Director
Thank you, and good morning, everyone. If you're following
West Pharmaceutical Services zvýšila výhled organického růstu tržeb na rok 2026 na 10 %–11 % a upravený EPS na 8,85–9,05 USD. Tento krok podporuje silnější poptávka po High-Value Product a vyšší marže.
Key Takeaways WST's HVP Components sales rose 19.4%, while HVP Delivery Devices sales increased 29.6%.West raised 2026 organic sales growth guidance to 10%-11% and adjusted EPS to $8.85-$9.05.WST trades at 37.1X forward earnings, more than double its sub-industry's 17.8X multiple.
West Pharmaceutical Services, Inc. (WST - Free Report) shares have gained 17.2% in the past three months, ahead of the Zacks Medical sector's 18.9% rise and the S&P 500's 2% advance. The move reflects improving operating momentum, but valuation leaves less room for execution misses.
The central question is whether High-Value Product demand, margin expansion and a higher 2026 outlook can support further gains after the recent run.
Image Source: Zacks Investment Research
WST's HVP Mix Supports the RallyHigh-Value Product Components remain West's main growth engine. Second-quarter sales reached $424.1 million, up 19.4% year over year and 18.4% organically, representing 49% of total company sales.
Demand benefited from biologics, GLP-1 elastomers and customer upgrades to higher-quality containment solutions, including Annex 1-related conversions. NovaPure and FluroTec products were key contributors, while High-Value Product Delivery Devices sales increased 29.6% to $131.2 million.
Becton, Dickinson and Company (BDX - Free Report) is investing $110 million to expand U.S. production of prefillable syringes for biologic and GLP-1 drug delivery. AptarGroup, Inc. (ATR - Free Report) , another drug-delivery supplier, reported a 4% increase in Pharma sales in the second quarter, underscoring continued activity across injectable and advanced drug-delivery markets.
West's Q2 Beat Adds Fundamental SupportSecond-quarter revenues increased 13.8% to $872.3 million, while organic sales grew 12.7%. Adjusted earnings of $2.37 per share rose 28.8% and beat the Zacks Consensus Estimate by 13.9%.
Proprietary Products revenues climbed 16.6% to $722.6 million. Gross margin expanded 200 basis points to 37.7%, and adjusted operating margin improved 230 basis points to 22.6%, showing the earnings benefit from richer product mix and operating leverage.
WST's Raised Outlook Extends the Growth CaseWest raised its 2026 revenue outlook to $3.345 billion-$3.380 billion from $3.295 billion-$3.350 billion. Organic sales are now expected to increase 10%-11%, up from the prior 7%-9% range.
Adjusted earnings guidance rose to $8.85-$9.05 per share from $8.40-$8.75. Management now expects both GLP-1 and non-GLP-1 High-Value Product Components to grow in the high teens organically for the year, supporting continued mix improvement.
West's Premium Valuation Tests Further UpsideWST trades at 37.1X forward 12-month earnings, more than double the Zacks sub-industry's 17.8X multiple. The stock also trades above the Medical sector's 21.2X and the S&P 500's 20.7X.
The multiple is below WST's five-year median of 39.1X, but it still implies that investors are paying a sizable premium for growth and execution. Further appreciation may therefore require continued earnings delivery and sustained High-Value Product momentum.
Image Source: Zacks Investment Research
WST Risks Could Check the MomentumStandard Products sales increased just 2.4% in the second quarter, while West Vantage revenues rose 2% and only 0.8% organically. West Vantage was also affected by cyber-related production downtime, which pushed some revenues into the second half.
Higher oil and commodity costs remain another pressure point. The July 1 sale of SmartDose 3.5mL also creates a portfolio transition, while the Dublin drug-handling ramp and other operational initiatives add execution risk.
Wrapping UpWST's recent gain is supported by faster High-Value Product growth, wider margins and a stronger 2026 earnings outlook. Against that, the premium valuation and softer performance in Standard Products and West Vantage raise the threshold for additional upside.
Currently, West carries a Zacks Rank #3 (Hold). Likewise, Becton, Dickinson and Company, and AptarGroup also carry a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical Services vykázala ve 2. čtvrtletí organický růst tržeb o 12,7 % a upravený zisk na akcii vzrostl o 28,8 % na 2,37 USD. Akcie se ale obchodují za 37,1násobek forward zisku, výrazně nad odvětvím.
Key Takeaways WST's HVP Components sales rose 18.4% organically, supported by biologics, GLP-1 elastomers and Annex 1.West's adjusted operating margin rose 230 basis points to 22.6% on HVP mix, pricing and leverage.WST trades at 37.1X forward earnings, well above its sub-industry's 18.0X multiple. West Pharmaceutical Services, Inc. (WST - Free Report) is delivering faster High-Value Product (HVP) growth, wider margins and higher 2026 earnings expectations. Second-quarter organic sales rose 12.7%, while adjusted earnings increased 28.8% to $2.37 per share.
The question is whether those gains justify a valuation well above industry levels. WST’s growth drivers remain attractive, but the premium multiple leaves less room for operational missteps.
WST's HVP Growth Supports the Bull CaseHVP Components generated $424.1 million in second-quarter sales, or 49% of total company revenues, and grew 18.4% organically. Biologics, GLP-1 elastomers and customer upgrades tied to Annex 1 requirements supported the increase.
Management expects Annex 1 and broader HVP conversion to add about 200 basis points to 2026 revenue growth. West has just under 800 related projects in hand, up 50% from a year earlier.
Eli Lilly and Company (LLY - Free Report) is advancing retatrutide in late-stage obesity and diabetes development, underscoring continued innovation in metabolic therapies. Novo Nordisk A/S (NVO - Free Report) remains focused on obesity and diabetes, including newer Wegovy formats, reinforcing the breadth of the GLP-1 market.
West's Margins Improve as Mix Shifts HigherSecond-quarter gross margin expanded 200 basis points year over year to 37.7%. Adjusted operating margin increased 230 basis points to 22.6%, helped by favorable HVP mix, pricing and operating leverage.
Management now expects more than 200 basis points of full-year operating-margin expansion compared with 2025. The richer product mix is helping offset inflationary pressure from oil and other commodities.
WST's Valuation Leaves Less Room for ErrorWST trades at 37.1X forward 12-month earnings, versus 18.0X for its Zacks sub-industry and 20.7X for the S&P 500. That is a sizable relative premium.
The multiple is below WST’s five-year median of 39.1X, so the stock is not expensive relative to its own recent history. Still, investors are paying substantially more than peer and market benchmarks for the company’s expected growth.
Image Source: Zacks Investment Research
West Faces Execution and Cost RisksWest Vantage grew just 0.8% organically in the second quarter. Cyber-related production downtime reduced the segment’s gross margin, and management expects the third quarter to mark the trough before improvement later in the year.
Standard Products grew only 0.7% organically. Commodity inflation and the July 1 transfer of SmartDose 3.5mL manufacturing and supply rights add further variables as West works through portfolio and operating changes.
WST's Balance Sheet Adds FlexibilityWest ended June with $435.8 million in cash and cash equivalents against $202.9 million of total debt. That balance sheet provides capacity to support HVP investments while continuing shareholder returns.
The company repurchased 1.8 million shares for $454.3 million in the first half of 2026 under its $1 billion authorization. First-half capital spending declined to $85.9 million from $146.5 million a year earlier, while the quarterly dividend remains 22 cents per share.
Wrapping UpThe operating case is improving, but valuation and execution risk make the entry decision less straightforward. HVP growth, margin expansion and balance sheet flexibility support the long-term thesis, while the premium multiple argues for price discipline.
Currently, West carries a Zacks Rank #3 (Hold). Likewise, Eli Lilly and Novo Nordisk also carry a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akcie JetBlue za tři měsíce vzrostly o 22,2 % díky lepším tržbám a vyšším odhadům zisku. Firma ale dál čeká ztrátu a čelí dražšímu palivu i vysokému dluhu.
Key Takeaways JetBlue shares gained 22.2% in three months as improving revenue trends supported momentum.JetBlue expects 2026 RASM growth of 10-12.5%, while capacity is projected to increase 1.5-3.5%.JBLU faces higher fuel costs, about $8.48 billion in debt and a projected negative 2026 operating margin. JetBlue Airways Corporation (JBLU - Free Report) shares have gained 22.2% in the past three months, putting the durability of the rebound in focus. Better revenue trends and firmer earnings-estimate revisions have improved the near-term setup.
The rally still faces a demanding test. JetBlue remains unprofitable, fuel costs have climbed sharply and leverage is high, leaving further upside dependent on revenue gains translating into a clearer margin recovery.
JBLU’s Three-Month Gain Comes With Better MomentumJBLU’s 12-week price change of 22.2% is backed by a 3.4% gain over the past four weeks. The stock also carries a Momentum Score of A, the strongest of its individual Zacks Style Scores.
The move has occurred while JetBlue’s commercial performance improved. Second-quarter revenue per available seat mile, or RASM, increased 10.9% year over year, while capacity rose 3.2%, showing that unit revenues advanced faster than available seat miles.
JetBlue’s Earnings Revisions Are Moving HigherThe current-fiscal-year earnings estimate increased 7.7% over four weeks and 21.9% over 12 weeks. That direction is relevant because the Zacks Rank is driven by earnings-estimate revisions, giving the recent price momentum a firmer estimate backdrop.
JetBlue also posted a 5.7% earnings surprise in the second quarter. The result was still a loss of 66 cents per share, however, so upward revisions should be viewed as an improvement in expectations rather than proof that profitability has returned.
JBLU’s Revenue Outlook Supports the Bull CaseManagement expects third-quarter RASM to rise 12.5-16.5% year over year on capacity growth of 3-6%. For full-year 2026, JetBlue forecasts RASM growth of 10-12.5% while capacity is expected to increase 1.5-3.5%.
Premium and loyalty demand also matter in the broader airline backdrop. Delta Air Lines (DAL - Free Report) reported 17% growth in second-quarter premium-product ticket revenues, while United Airlines Holdings (UAL - Free Report) reported 14% first-quarter premium revenue growth. JetBlue’s own premium RASM rose about 13% in the second quarter.
JetBlue Still Faces Fuel and Leverage RisksSecond-quarter aircraft fuel expense surged 80.7% year over year to $911 million as the average fuel cost per gallon increased 76.3% to $4.23. Total operating expenses rose 20.8%, contributing to a $141 million operating loss.
Debt and financing costs add another constraint. Total debt was about $8.48 billion at June 30, 2026, while 2026 interest expense is expected to be about $590 million. JetBlue still projects a negative adjusted operating margin of 2-5% for the year.
JBLU’s Mixed Scores Temper the Rally CaseThe rally has better support than it did earlier, but the investment picture remains mixed. Stronger unit-revenue growth, positive estimate revisions and JetForward progress can sustain interest in the shares, while fuel volatility, losses and debt leave little room for execution slippage.
JBLU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Momentum Score of A contrasts with a Value Score of D, Growth Score of F and VGM Score of F. The combination favors patience: momentum is favorable, but the broader Style Score profile does not yet provide the kind of all-around confirmation associated with top-ranked stocks.
Lam Research plánuje během pěti let investovat více než 3 miliardy USD do rozšíření globální sítě výzkumných a vývojových laboratoří. Kapacita experimentů má vzrůst o více než 50 %.
, /PRNewswire/ -- Lam Research Corp. (NASDAQ: LRCX) today announced that it intends to invest more than $3 billion over the next five years to expand its global research and development (R&D) lab network. The planned multi-site expansion is expected to add infrastructure and capabilities to increase experiment capacity by more than 50%. Lam's R&D approach combines specialized labs worldwide, each purpose-built to accelerate a distinct step of the innovation cycle, with deep customer collaboration that includes locations near customer facilities. Together, Lam's labs operate as an integrated 24/7 network, enabling innovation in parallel and at scale. With this investment, Lam intends to further compress product development cycles for customers, from pathfinding to fab deployment.
Lam’s global lab network spans the United States, Asia, and Europe, with R&D infrastructure that supports more than one million experiments annually. "In the AI era, the pace of innovation is relentless, requiring chips with new architectures, different materials, and complex features engineered with nanoscale precision. Our ability to increase velocity throughout the R&D process has become a decisive advantage," said Tim Archer, president and chief executive officer of Lam Research. "We are investing with the intention of staying ahead of what our customers need, further strengthening our global innovation engine to deliver the next generation of semiconductor breakthroughs."
Lam's global lab network spans the United States, Asia, and Europe. The combined R&D infrastructure supports more than one million experiments annually. Facilities specialized for foundational research in new chemistries, materials and mechatronics have the capability to compress weeks of experimental work into as little as a few days in many cases. Process development labs carry those advances toward production readiness, with engineering, product development and manufacturing teams working side by side on the same tools. Located in proximity to customers, Lam's technology centers support rapid qualification and validation alongside customers' engineering teams.
The integrated lab network enables tools, data and expertise to be shared across locations and time zones, so a discovery in one lab becomes knowledge every lab can use. In recent customer engagements, this approach has enabled Lam to shorten process development up to 2.5 times.
"Congratulations to Lam on this investment. Micron is proud to work with Lam as we advance memory and storage solutions that power the AI ecosystem," said Scott DeBoer, executive vice president and chief technology and products officer at Micron Technology. "Our longstanding collaboration with Lam continues to drive innovation in leading-edge front-end and advanced packaging technologies, and we look forward to building on this momentum to scale AI across the semiconductor ecosystem."
"Wafer-level semiconductor device processing is the backbone of all semiconductor ecosystems and the enabler of subsequent chip technology advancements," said John West, chief analyst, Semiconductor Equipment at Yole Group. "AI-related investment is lifting demand for deposition and etch intensity. Lam Research's etch, deposition, and advanced packaging wafer fabrication equipment innovations along with new EUV/DUV lithography technologies have helped to enable the production of semiconductor devices with the right combination of power consumption, performance, price, and form factor to unlock the AI revolution. Sustaining this momentum will require the semiconductor ecosystem to innovate faster, compress development cycles, and scale new technologies into manufacturing more quickly."
Lam plans to begin expanding the global lab network this year with the goal of increasing innovation velocity.
Additional Media Resources
Lam Blog, How Deposition and Etch Are Reshaping Chips for the AI Era Visit Lam's Media Center for images and visual assets About Lam Research
Lam Research Corporation (NASDAQ: LRCX) is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research is a FORTUNE 500® company headquartered in Fremont, California, with operations around the globe. Learn more at www.lamresearch.com.
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our intention to invest more than $3 billion in the next five years to expand our R&D lab network across multiple sites, compress product development cycles for customers, and stay ahead of customer needs and strengthen global innovation to deliver the next generation of semiconductor breakthroughs; our expectation to add infrastructure and capabilities to increase experiment capacity by more than 50%; our ability to accelerate the innovation cycle; the requirement in the AI era for chips with new architectures, different materials, and complex features; the advantages associated with our ability to increase velocity throughout the R&D process; the effects of Micron's relationship with Lam; Yole Group's views regarding AI-related investment lifting demand for deposition and etch intensity and that sustaining momentum will require faster innovation, development cycles, and new technology scaling; our plan to begin expanding our lab network with the goal of increasing innovation velocity; and our unwavering commitment to customers. These statements are not a guarantee of future performance and involve a number of risks, uncertainties, and other factors that could cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those expressed or implied in this press release. Such risks, uncertainties, and other factors include: our ability to successfully execute the planned expansion of our global R&D lab network; our ability to achieve the anticipated benefits of our investments in R&D infrastructure; the timing, cost, scope, and anticipated benefits of planned R&D investments may differ from our expectations; business, economic, political and/or regulatory conditions in the consumer electronics industry, including wafer fabrication equipment spending, the semiconductor industry and the overall economy may deteriorate or change; the actions, performance, or investment levels of our customers and competitors may be inconsistent with our expectations; customer and product mix, including across market segments and geographical regions, may change; we may be unable to effectively manage and implement pricing actions, realize the value of our products and technology, successfully commercialize new products and technologies, or execute on perceived opportunities; we may be unable to achieve anticipated operational, manufacturing, supply chain, procurement, and scale efficiencies; customer technology transitions, capacity expansions, and fab construction projects may have different timing or be less successful than we expect; we may be unable to manage operating expenses effectively while continuing to invest in R&D, product innovation, customer support, and future growth opportunities; trade regulations, export controls, tariffs, trade disputes, and other geopolitical developments may inhibit our ability to sell our products; supply chain cost increases, tariffs, and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. You should evaluate all forward-looking statements made in this press release in the context of these risks, uncertainties, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on our, Micron, or Yole Group's current beliefs, expectations, and assumptions about future events. Except as required by law, we undertake no obligation to update the information or statements made in this press release.
Company Contacts
Laura Bakken
Public Relations
(510) 572-9021
[email protected]
Akcie Workday vzrostly téměř o 18 % po zprávě Reuters, že Silver Lake jedná o koupi společnosti. Akcie byly v pozdním obchodování několikrát pozastaveny.
Workday shares popped nearly 18% for their best day since 2016 on a report that private equity firm Silver Lake is in talks to buy the human resources software maker.
Shares were halted multiple times in late afternoon trading and the company's market value closed at nearly $51 billion following the report from Reuters.
The discussions have been ongoing in recent months, Reuters reported, citing sources familiar with the matter.
Workday and Silver Lake did not immediately respond to CNBC's request for comment.
Concerns that artificial intelligence tools will upend software's business model have weighed on Workday's shares in recent months. An acquisition in the space could hint at renewed software appetite despite these fears.
Read more CNBC tech newsAnthropic CFO Krishna Rao is leading early IPO meetings with investors and has not discussed valuation, sources sayAn inside look at SK Hynix $720 billion AI-fueled buildout that's taking over South KoreaDatabricks wraps $5 billion funding round at $190 billion valuationMeta and Nvidia plant 'very firm flag' in open-weight AI race led by Chinese LabsThe stock has rebounded from a recent selloff, but shares are down 7% year over year.
In March, co-founder Aneel Bhusri was renamed CEO after Carl Eschenbach stepped down. Bhusri has held various leadership roles at the company, including a stint as CEO and co-CEO.
"Aneel Bhusri, the CEO, and Egon [Durban] from Silver Lake know each other well through many connections. So we think certainly this could make sense, and I think this goes back to how badly hit software's been," analyst Brent Thill told CNBC's "Power Lunch."
In May, the company posted better-than-expected results and upped its forecast on AI tailwinds.
Applied Materials ve 3. čtvrtletí překonala odhady: tržby dosáhly 9,115 miliardy USD a upravený EPS činil 3,50 USD. Firma zároveň zvýšila výhled na 4. čtvrtletí na tržby 10,25 miliardy USD a upravený EPS 4,02 USD.
Live Coverage Updates appear automatically as they are published.
Live Updates 6 minutes ago
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That wraps up our initial coverage of AMAT’s Q3 results. Thank you for stopping by!
15 minutes ago
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Applied Materials generated a record $3.04 billion in operating cash flow during the quarter and $2.33 billion in non-GAAP free cash flow, up 14% year over year.
This helped the business return $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.
Meanwhile, China declined to 28% of total revenue from 35% a year ago, with sales slipping slightly from $2.55 billion to $2.51 billion.
Growth elsewhere more than offset that weakness: U.S. revenue doubled to $1.37 billion, while European revenue more than tripled to $483 million.
That geographic shift leaves Applied Materials less dependent on China while positioning the company to benefit from the global expansion of semiconductor manufacturing capacity.
17 minutes ago
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Applied Materials’ core Semiconductor Systems segment generated $7.04 billion in Q3 revenue, up 27% from $5.56 billion a year earlier.
Non-GAAP operating income climbed 45% to $2.67 billion, while operating margin expanded from 33.2% to 38.0%.
DRAM increased to 26% of segment revenue from 22% last year, and AMAT also introduced six new systems targeting DRAM and advanced packaging, including technology designed to support 12-layer, 16-layer, and future higher-layer-count HBM designs.
The combination of accelerating revenue growth and expanding profitability reinforces management’s view that Applied Materials can grow faster than the broader semiconductor equipment market.
26 minutes ago
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Applied Materials’ momentum is expected to accelerate into the fourth quarter. Management guided for $10.25 billion in revenue, plus or minus $500 million, and $4.02 in non-GAAP EPS, plus or minus $0.20.
At the midpoint, revenue would rise another 12% sequentially after Applied Materials just delivered the highest sequential revenue growth in its history.
CEO Gary Dickerson also raised the company’s calendar 2026 Semiconductor Systems outlook and said stronger customer visibility points to “another strong growth year” in 2027.
The outlook suggests that spending on AI chips, DRAM, leading-edge foundry logic, and advanced packaging remains firmly in expansion mode. Still, Applied Materials shares are down 2.5% following the Q3 earnings release.
30 minutes ago
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Applied Materials just reported earnings, with shares initially down 4% despite beating expectations on both the top and bottom lines. Here are the key numbers:
Revenue: $9.115 billion vs. $9.00 billion expected Adjusted EPS: $3.50 vs. $3.39 expected Quick Read:
Revenue increased 25% year over year and 15% sequentially, while EPS jumped 41% year over year and 22% from the previous quarter.
The initial selloff suggests investors were looking for more after Applied Materials’ enormous run over the past year.
Attention will now turn to management’s outlook, margins, China exposure, and commentary surrounding AI, high-bandwidth memory, and Gate-All-Around demand.
44 minutes ago
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Across the last five quarters, Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) has beaten every time, yet the immediate reaction has averaged -2.18% day-of.
The largest single-day drop was -14.07% following Q3 FY2025, while Q1 FY2026 delivered the biggest pop at +8.08%. Forward guidance drives direction more than beat size.
Initial reactions rarely hold. Every 30-day window post-report has been positive, ranging from -1.53% to +35.8%. Even the ugly August 2025 sell-off recovered +10.12% within a month.
With shares near $540.99 and a forwardP/E of 36, tonight’s guidance and any China commentary will matter far more than the headline beat itself.
50 minutes ago
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With Applied Materials (NASDAQ:AMAT) set to report Q3 earnings at 4:00 PM ET, here is the preview framework for tonight’s call.
Top 5 Analyst Questions Is the >30% calendar 2026 WFE growth guide sustainable, or front-loaded? China trajectory after falling to 27% of Q2 revenue from 35% a year ago? HBM/DRAM share versus ASML, Lam, and KLA? Free cash flow recovery after Q2 FCF dropped 80.2%? ASMPT NEXX close timing and Gate-All-Around 2nm traction? Key Topics and Buzzwords Listen for: EPIC Center, book-to-bill, capacity digestion, leading-edge logic. Gross margin push beyond the 50.0% Q2 mark. Red Flags Any softer Q4 guide echoing the Q3 FY2025 China-driven guide-down. Fresh export-control commentary following the $253M BIS settlement. Working-capital drag persisting into Q4. 55 minutes ago
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Options positioning suggests traders are bracing for volatility. The August 14 expiration shows put volume exceeding calls by 35%, while the August 21 chain flips call-heavy (2.3x put volume), signaling expected turbulence followed by directional conviction.
Investors will watch the DRAM mix (29% last quarter) as a proxy for HBM demand, plus advanced packaging commentary tied to the 50%+ packaging growth target.
AMAT’s historical pattern warrants caution: across five straight beats, the average earnings-day change is -2.18%, and Q3 FY25 fell 14.07% on soft guidance.
Upside trigger: revenue near the $9.45B high end or Semi Systems topping $7B. Downside trigger: any cut to the 30% equipment growth outlook, fresh China commentary, or a light Q4 guide. 57 minutes ago
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Guidance Is Everything: What Q4 Signal Investors Need Tonight’s headline numbers matter less than the Q4 FY26 outlook. Wall Street is anchored to management’s $8.95 billion revenue and $3.36 EPS guide, plus the more than 30% calendar 2026 equipment growth call.
CEO Gary Dickerson guides conservatively with +/- $500 million ranges, yet has raised the annual outlook twice this year.
Bullish scenario: Q4 revenue above $9.5 billion, EPS above $3.60, growth lifted toward 35%, DRAM/HBM mix expanding, and gross margin beyond 50.0%. Bearish scenario: Guide below $8.5 billion, a maintained (not raised) full-year outlook, weaker China commentary, or any AI capex digestion language echoing the Q3 FY25 China miss. After a 193.05% one-year run, investors are likely looking for guidance to be raised tonight.
59 minutes ago
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Beyond the China overhang, four surprise factors could swing tonight’s reaction.
First, the $253M settlement with the Commerce Department’s Bureau of Industry and Security in Q1 leaves export-license commentary as a live catalyst. Second, options positioning is defensive: tomorrow’s expiration shows put volume of 12,267 versus 9,060 calls, signaling hedged books despite the 94.1% Polymarket beat probability. Third, HBM/DRAM mix now sits at 29% of Semi Systems, up from 27%, making any AI-memory commentary market-moving. Fourth, history warns of asymmetric downside: Q3 FY2025 fell -14.07% day-of despite a 5.09% beat. 1 hour ago
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Applied Materials enters tonight’s Q3 earnings with expectations running high. Management’s guidance calls for $8.95 billion in revenue and $3.36 in non-GAAP EPS, while its 2026 equipment growth outlook has been raised to more than 30%.
AI infrastructure, high-bandwidth memory, and Gate-All-Around transistor demand continue to power the AI-equipment supercycle.
However, free cash flow fell 80.21% last quarter due to working-capital pressure, while China, which is responsible for 27% of revenue, remains a major wildcard.
Polymarket traders assign a 94.1% probability that Applied Materials beats expectations. Yet with the stock soaring 193.05% over the past year, a simple beat is likely not what the market is pricing in. Analysts carry a consensus price target of $633.34, with 32 Buy ratings.
Applied Materials (NASDAQ:AMAT) reports Q3 FY2026 after the market closes today at 4:00 PM ET. With shares up 113.83% year to date, investors are waiting to see the company’s guidance and commentary on China.
Last Quarter’s Backdrop Last quarter, Applied Materials delivered $7.91 billion in revenue, up 11.41% YoY, and non-GAAP EPS of $2.86, a 6.56% beat. The company’s Semiconductor Systems segment margin expanded to 35.1% from 32.8%, and DRAM mix rose to 29% on HBM demand.
However, operating cash flow dropped 46.21% to $845 million. Shares have gained 24.58% since the May 14 filing, outpacing both SPY and QQQ.
Consensus Estimates Metric Q3 FY26 Guide YoY vs Q3 FY25 FY25 Actual FY26 Trajectory Revenue $8.95B vs $7.302B $28.368B Equip. >30% growth EPS (Non-GAAP) $3.36 vs $2.48 $9.42 Accelerating The midpoint implies a step change from the $7.302B that AMAT posted a year ago. Semi Systems is doing the heavy lifting, and the raised calendar-2026 target signals confidence in orders through year-end.
What I’m Watching Tonight: Margins, China, and AI Order Cadence Tonight, I’ll be watching four things. First, Semi Systems’ operating margin. 35.1% set a new bar last quarter, and any give-back would sting given the stock’s current multiple. Second, DRAM and HBM mix. Management flagged HBM as the primary driver behind the DRAM step-up, and SK hynix, Micron, and Samsung are all named EPIC Center partners.
Third, the Gate-All-Around ramp. New tools, including Precision Selective Nitride PECVD and Trillium ALD, are tied to the 2nm transition at TSMC and others. Investors will also focus on order commentary tied to those platforms. Fourth, China. $2.087 billion came from China last quarter, and the $253 million BIS settlement earlier this year underscores export policy.
Free cash flow is another wildcard analysts will be watching. FCF of just $210 million against record revenue drew scrutiny, and Reddit debate on July 29 swung from a bullish score of 72 to bearish 32 within hours. Full-chain put/call sits at 1.02, hedged positioning.
Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q2 FY26 +6.56% -5.28% -1.02% +35.8% Q1 FY26 +7.84% +1.19% +5.25% -1.53% Q4 FY25 +2.36% +1.19% -0.88% +9.85% Q3 FY25 +5.09% +1.09% +0.45% +10.12% On average, shares moved roughly -0.21% one week after earnings over the past year, with recovery within 30 days.
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Zoetis získal od FDA nouzové povolení pro Simparica Trio k léčbě napadení larvami mouchy New World screwworm u psů a štěňat. Přípravek není pro toto použití schválen.
PARSIPPANY, N.J.--(BUSINESS WIRE)--Zoetis Inc. today announced that Simparica Trio has received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for the treatment of infestations caused by New World screwworm (Cochliomyia hominivorax) larvae (myiasis) in dogs and puppies. Larvae of Cochliomyia hominivorax, commonly called New World screwworm (NWS), feed on living tissues, such as open wounds, of animals including livestock, wildlife and pets, and can inflict damage, pain and even death if not treated.
As New World screwworm continues to threaten the U.S.1 -- recently prompting several states to issue formal orders requiring treatment of domestic animals as part of cross-border animal movement from infested areas -- Zoetis is closely monitoring the situation and is committed to helping veterinarians and dog owners be prepared with solutions. Under an EUA, the FDA authorizes the use of a medication in an emergency to treat or prevent life-threatening diseases or conditions when certain criteria are met.
“At Zoetis, our highest priority is protecting the health and well-being of animals,” said Abhay Nayak, EVP and President, U.S. Commercial Operations at Zoetis. “The Emergency Use Authorization for Simparica Trio provides an important new tool in the fight against New World screwworm, a devastating parasite that can cause severe suffering in dogs. With this milestone, Simparica Trio helps simplify parasite protection for dogs with a single monthly chew—supporting both routine control and New World screwworm response needs.”
“We are deeply committed to supporting our customers with trusted, science-driven solutions—especially when rapid response and preparedness on key public health issues are critical. This Emergency Use Authorization for Simparica Trio builds on Zoetis’ expanding, multi-species set of solutions to help address New World screwworm across both companion animals and livestock,” Nayak continued. “Zoetis remains dedicated to advancing animal health and delivering the confidence our customers rely on, backed by Zoetis’ science, quality and manufacturing scale – so more animals can be protected, more consistently.”
Simparica Trio was the first product FDA-approved to provide all-in-one protection for dogs against heartworm disease, ticks and fleas, roundworms, hookworms, and prevents flea tapeworm infections by killing fleas in a single monthly chewable. It is FDA-approved to kill six species of ticks, including the Gulf Coast tick – providing comprehensive tick protection. While found all over the nation, the Gulf Coast tick is native to Southern U.S. states, including Texas.
Pet owners are encouraged to work closely with their veterinarian if they have any concerns about New World screwworm or other parasites. Reports of any suspicious wounds, maggots, or infestations should be made to a local veterinarian, state animal health official or the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS). USDA APHIS animal health contacts can be found at https://www.aphis.usda.gov/contact/animal-health.
As the leading animal health company, Zoetis has long supported a One Health approach to emerging and transboundary infectious diseases and has a strong track record of quickly developing innovative solutions to provide veterinarians and animal owners with the right mix of tools to prevent, control and treat disease in animals.
IMPORTANT SAFETY INFORMATION for Simparica Trio
Use with caution in dogs with a history of seizures. Simparica Trio contains sarolaner, a member of the isoxazoline class which has been associated with neurologic adverse reactions including tremors, ataxia, and seizures in dogs with or without a history of neurologic disorders. The safe use of Simparica Trio has not been evaluated in breeding, pregnant, or lactating dogs. The most frequently reported adverse reactions in clinical trials were vomiting and diarrhea. See Full Prescribing Information at SimparicaTrioPI.com.
Treatment of New World screwworm in Other Species
In addition to the EUA for Simparica Trio, Zoetis offers Dectomax®-CA1 Injectable (doramectin injection), the only nonprescription conditionally approved parasite control product labeled for prevention and treatment of infestations caused by NWS larvae in cattle and for prevention of reinfestation for 21 days. This conditional approval applies to beef cattle, female dairy cattle less than 20 months of age, pregnant beef cows, newborn calves and bulls. Dectomax-CA1 is not for use in calves to be processed for veal. Dectomax-CA1 is not for use in female dairy cattle 20 months of age or older, except under the conditions of the Emergency Use Authorization (EUA) granted on May 19, 2026.
The U.S. Food and Drug Administration has issued an Emergency Use Authorization (EUA) for the use of the approved/conditionally approved products Dectomax/Dectomax-CA1 for the following indications:
The prevention and treatment of infestations caused by Cochliomyia hominivorax larvae (myiasis) in dairy cattle (lactating dairy cows, dry dairy cows, and replacement dairy heifers 20 months of age and older), except for calves to be processed for veal. The prevention of infestations caused by C. hominivorax larvae (myiasis) in swine, sheep except for lactating sheep, and deer. The prevention of infestations caused by C. hominivorax larvae (myiasis) in horses 1 year old and older. Early detection of New World screwworm and rapid response are crucial to protecting the health of companion animals and livestock.
Emergency Use Authorization for Simparica Trio for New World Screwworm
The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the approved product Simparica Trio (sarolaner, moxidectin, and pyrantel chewable tablets) for the treatment of infestations caused by New World screwworm (Cochliomyia hominivorax) larvae (myiasis) in dogs and puppies. Simparica Trio is not approved for this use.
Simparica Trio is approved for other uses in dogs and puppies.
For additional information on the EUA, please refer to the Simparica Trio EUA Fact Sheet.
Limitations of Authorized Use
Simparica Trio (sarolaner, moxidectin, and pyrantel chewable tablets) is authorized for this use only for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of Simparica Trio (sarolaner, moxidectin, and pyrantel chewable tablets) under Section 564(b)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. § 360bbb-3(b)(1), unless the declaration is terminated or the authorization is revoked sooner.
Approved Indications for Simparica Trio
Simparica Trio is indicated for the prevention of heartworm disease caused by Dirofilaria immitis and for the treatment and control of roundworm (immature adult and adult Toxocara canis and adult Toxascaris leonina) and hookworm (L4, immature adult, and adult Ancylostoma caninum and adult Uncinaria stenocephala) infections. Simparica Trio kills adult fleas (Ctenocephalides felis) and is indicated for the treatment and prevention of flea infestations, the prevention of Dipylidium caninum (tapeworm) infections as a direct result of killing Ctenocephalides felis vector fleas on the treated dog, and the treatment and control of tick infestations with Amblyomma americanum (lone star tick), Amblyomma maculatum (Gulf Coast tick), Dermacentor variabilis (American dog tick), Ixodes scapularis (black-legged tick), Rhipicephalus sanguineus (brown dog tick), and Haemaphysalis longicornis (Asian longhorned tick) for one month in dogs and puppies 8 weeks of age and older, and weighing 2.8 pounds or greater. Simparica Trio is indicated for the prevention of Borrelia burgdorferi infections as a direct result of killing Ixodes scapularis vector ticks.
About Zoetis
Zoetis is the world’s leading animal health company, driven by a singular purpose: to nurture our world and humankind by advancing care for animals. With a legacy of nearly 75 years, Zoetis continues to pioneer ways to predict, prevent, detect, and treat animal illness, supporting veterinarians, livestock producers, and pet owners in over 100 countries. We integrate deep scientific expertise, data-driven R&D, advanced manufacturing, and commercial excellence to deliver meaningful innovation across medicines, vaccines, diagnostics, biopharmaceuticals, and digital solutions. Guided by our vision to be the most trusted and valued animal health company, Zoetis is committed to setting new standards for the future of animal care through innovation, customer obsession, and purpose-driven colleagues. To learn more, visit Zoetis.com.
Please refer to the following fact sheets for additional information:
EUA - Simparica Trio Fact Sheet
EUA - Dairy Cattle, Swine, Sheep and Deer Fact Sheet
EUA - Horse Fact Sheet
For more information on NWS, visit FDA Issues Emergency Use Authorization for Drug to Treat New World Screwworm in Dogs and Puppies
Dectomax-CA1 is conditionally approved by FDA pending a full demonstration of effectiveness under NADA 141-616.
Important Information:
Consult your veterinarian for assistance in the diagnosis, treatment, and control of parasitism.
Dectomax-CA1 Injectable (Cattle only), as authorized under the Conditional Approval for use against New World screwworm, has a 35-day pre-slaughter withdrawal period. Do not use in calves to be processed for veal. Do not use in female dairy cattle 20 months of age or older, except under the conditions of the Emergency Use Authorization. Use in dogs may result in fatalities.
Dectomax/Dectomax-CA1 Injectable Emergency Use Authorization, authorized for the duration of the emergency declaration, does not provide full or conditional approval, but the Center for Veterinary Medicine (CVM) at the Food and Drug Administration (FDA) has determined that Dectomax/Dectomax-CA1 may be effective and safe. Dectomax/Dectomax-CA1 Injectable, as authorized under the Emergency Use Authorization for use against New World screwworm, has a 35-day pre-slaughter withdrawal period for lactating dairy cattle, dry dairy cattle, replacement dairy heifers, sheep and deer, and a 24-day pre-slaughter withdrawal period for swine. Treated calves and calves born to treated cows should not be processed for veal. Withhold milk from dairy cattle for 468 hours (19.5 days) after treatment has ended. Not for use in lactating sheep. Not for use in horses less than 1 year of age.
DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements which reflect the current views of Zoetis with respect to regarding products, product approvals or licenses, products under development and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.
All trademarks are the property of Zoetis Services LLC or a related company or a licensor unless otherwise noted.
ZTS-COR
ZTS-IR
ZTS-CA
1 APHIS. Current Status of New World Screwworm | Screwworm.gov Accessed 6/3/26.
Ross Stores čeká ve 2Q růst tržeb i zisku; konsensus počítá s tržbami 6,1 mld. USD a EPS 1,92 USD. Firma zároveň míří na comps 6–7 % a provozní marži 12,8–13 %.
Key Takeaways Ross Stores is expected to benefit from broad-based demand, store growth and merchandise execution.Ross Stores targets 6-7% comps and 12.8-13% operating margin, with merchandise margin supporting results.Tariffs, inflation and trade-policy changes could pressure costs and limit earnings despite strong demand. Ross Stores, Inc. (ROST - Free Report) is likely to post year-over-year top and bottom-line growth when it reports second-quarter fiscal 2026 earnings on Aug. 20, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.1 billion, indicating a rise of 10.7% from the year-ago quarter’s figure.
The consensus estimate for earnings is pegged at $1.92 per share, up 23.1% from the year-earlier period. The consensus mark has risen a penny in the past seven days.
ROST has a trailing four-quarter earnings surprise of 10.2%, on average. In the last reported quarter, the company posted an earnings surprise of 18.8%.
Key Factors Likely to Influence ROST’s Q2 ResultsRoss Stores’ second-quarter fiscal 2026 performance is expected to have been supported by broad-based strength across its merchandise categories, fueled by solid customer response at the banners. Its ability to consistently deliver value-driven bargains continues to resonate with price-conscious consumers amid a cautious discretionary spending backdrop. Consistent execution of store expansion plans is also expected to have supported top-line growth.
Ross Stores is focused on strengthening its off-price business by offering customers compelling value, expanding its store network and improving merchandise execution. The company is working to broaden its merchandise assortments, offer more recognizable brands and improve the speed and timing of product flow. Backed by its proven business model, Ross Stores is poised to have generated increased traffic, stronger same-store sales and improved profitability for the quarter under review.
On the last reported quarter’s earnings call, the company had forecast comparable-store sales (comps) to increase 6-7% and earnings per share of $1.85-$1.93, with operating margin guided to 12.8-13% for second-quarter fiscal 2026. Second-quarter fiscal 2026 guidance assumes merchandise margin improvement and lower distribution costs as the company celebrates the opening of a new Arizona distribution center. Our model anticipates operating margin to rise 12.8% and earnings per share of $1.86 for the second quarter.
However, Ross Stores remains cautious about ongoing macroeconomic and geopolitical uncertainties, persistent inflation and their impact on consumer spending. The company also continues to face tariff-related headwinds, as evolving trade policies and elevated duties put pressure on its cost structure. Changes in ticketing, processing and import costs driven by tariffs are likely to have increased volatility in cost of goods sold and limited earnings.
What the Zacks Model UnveilsOur proven model predicts an earnings beat for Ross Stores this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Ross Stores currently has an Earnings ESP of +4.03% and a Zacks Rank of 3.
ROST’s Price Performance & Valuation PictureFrom a valuation perspective, Ross Stores has a forward 12-month price-to-earnings of 30.48X, slightly lower than the Retail-Discount Stores industry’s average of 31.13X. The stock is also trading slightly below its high level of 31.38X.
Image Source: Zacks Investment Research
The recent market movements show that ROST’s shares have gained 26.8% in the past six months compared with the industry's 0.5% growth.
More Stocks With the Favorable CombinationHere are three more companies, which according to our model, have the right combination of elements to post an earnings beat this season:
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +1.31% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register growth in the bottom and top lines when it reports second-quarter fiscal 2026 results. The consensus mark for TJX’s quarterly revenues is pegged at $15.1 billion, which indicates a 5.1% rise from the figure reported in the prior-year quarter.
The consensus mark for TJX’s quarterly earnings has moved up a penny in the past 30 days to $1.18 per share. The consensus estimate indicates growth of 7.3% from the year-ago quarter’s actual. TJX has a trailing four-quarter earnings surprise of 8.8%, on average.
Williams-Sonoma, Inc. (WSM - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank of 3. WSM is likely to register a top and bottom-line increase when it reports second-quarter fiscal 2026 numbers.
The Zacks Consensus Estimate for quarterly earnings per share of $2.05 suggests an increase of 2.5% from the year-ago fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $1.9 billion, suggesting growth of 4.1% from the prior-year fiscal quarter’s reported figure. WSM has a trailing four-quarter earnings surprise of 7.2%, on average.
Designer Brands Inc. (DBI - Free Report) currently has an Earnings ESP of +0.03% and a Zacks Rank of 3. The company is expected to register a top-line increase when it reports second-quarter fiscal 2026 results.
The consensus mark for revenues is pegged at $743 million, indicating a rise of 0.4% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly earnings per share of 25 cents suggests a drop of 26.5% from the year-ago quarter. DBI has a trailing four-quarter earnings surprise of 112.8%, on average.
Společnost Jefferies Financial Group je vyšetřována kvůli možnému porušení federálních zákonů o cenných papírech v souvislosti s kolapsem First Brands. Vyšetřování se zaměřuje na možná nepravdivá či zavádějící tvrzení a opomenuté informace pro investory.
NEW YORK, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Abraham, Fruchter & Twersky, LLP (www.aftlaw.com), a nationally recognized law firm focusing on protecting investors’ rights, informs shareholders that it is investigating potential violations of federal securities laws by Jefferies Financial Group Inc. (“Jefferies”) (NYSE:JEF), and Jefferies’ directors and officers. The investigation is focused on whether Jefferies or its executives made false or misleading statements or failed to disclose material information to investors.
On September 29, 2025, The Wall Street Journal published an article titled “Auto Supplier First Brands Files for Bankruptcy Amid Accounting Questions; First Brands lenders are looking into possible irregularities stemming from the company’s billions of dollars of off-balance-sheet debt.” That article reported that First Brands’ lenders and directors were probing whether First Brands made misrepresentations in its financial reporting and that “First Brands relied heavily on accounts-receivable-backed financing, supplying automotive products to customers on delayed payment terms and borrowing from outside investors against the billed receivables.”
On October 8, 2025, The Wall Street Journal further reported in an article titled “First Brands Bankruptcy Damage Spreads to Jefferies, UBS; Banks disclose how much of the funds they manage are exposed to collapsed auto-parts supplier” that Jefferies “said funds run by an asset-management unit, Point Bonita Capital, are owed around $715 million from companies that bought First Brands’ parts.”
On October 9, 2025, Reuters disclosed that the U.S. Department of Justice had opened an inquiry into the collapse of First Brands. Reuters reported that the DOJ was probing First Brands and its dealings with creditors.
On October 12, 2025, The Wall Street Journal published an article titled “Behind the Collapse of an Auto-Parts Giant: $2 Billion Hole and Mysterious CEO; Patrick James started out buying small Ohio factories and ended atop a messy conglomerate with piles of hidden debt.” That article reported that the former First Brands CEO “was working on an effort to refinance the nearly $6 billion of corporate loans with the help of Jefferies” and that “[t]he pitch to prospective lenders didn’t mention the billions of dollars of off-balance-sheet debt[.]”
Abraham, Fruchter & Twersky, LLP is investigating possible securities claims relating to these facts. If you have information that could assist in the investigation or if you are a Jefferies investor who suffered a loss and would like to discuss your rights, with no cost or obligation to you, please contact Jack Fruchter ([email protected] or (212) 634-0602) or Michael Klein ([email protected] or (212) 634-0608).
Abraham, Fruchter & Twersky, LLP (www.aftlaw.com) is a law firm that has extensive experience in litigating securities law violations on behalf of investors. Abraham, Fruchter & Twersky, LLP is based in New York and maintains a California office.
Attorney Advertising. Prior results do not guarantee similar outcomes.
Akcie Rocket Lab po výsledcích za 2. čtvrtletí otevřely o 5 % níže, protože investory znepokojil opatrnější komentář k raketě Neutron. Tržby vzrostly o 62 % na 234 milionů USD a ztráta na akcii se zúžila na 0,08 USD.
Rocket Lab (RKLB -1.32%), a developer of reusable orbital rockets and other spacecraft, posted its second-quarter earnings report on Aug. 10. Its revenue rose 62% year over year to $234 million, beating analysts' estimates by $3 million. It narrowed its net loss by five cents to $0.08 per share, matching the consensus forecast.
Image source: Getty Images.
What happened after that report? Rocket Lab's headline numbers looked solid, but its stock opened 5% lower the following day amid some concerns regarding its new higher-capacity rocket, the Neutron. In the past, the company said it could launch its first Neutron rocket by the end of 2026. But this time, CEO Peter Beck merely said it was targeting the Neutron's delivery to the launchpad by the fourth quarter, and that it was still "balancing the timing of our first launch" against its subsequent launches. Some investors likely interpreted that cautious statement as a warning that the first Neutron launch could slip to the beginning of 2027.
Today's Change
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Current Price
$
80.10
Should investors be concerned? Rocket Lab's stock stabilized and rose again over the following days, so it doesn't seem like investors are too worried about a major delay. For now, it still has plenty of irons in the fire. It's already launched its smaller Electron rocket 92 times, and its planned takeover of Iridium (IRDM +0.26%) will significantly increase its exposure to the satellite services market. Its stock isn't cheap at 50 times this year's sales, but analysts still expect it to more than double its annual revenue from 2025 to 2028.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
ADC Therapeutics uvedla za 2. čtvrtletí tržby z produktu ZYNLONTA ve výši 18,6 mil. USD, ale FDA vznesla „podstatné obavy“ k potvrzovací studii LOTIS-5. Firma přesto nečeká dopad na stávající monoterapeutickou indikaci.
ADC Therapeutics NYSE: ADCT reported second-quarter 2026 net product revenue of $18.6 million for ZYNLONTA, up from $18.1 million in the prior-year period, while executives said the treatment’s commercial performance remained broadly consistent with recent quarters.
The company also said it is reassessing the regulatory path for its LOTIS-5 confirmatory study after receiving FDA feedback that raised “substantial concerns” about the benefit-risk profile and verification of the treatment benefit observed in the trial.
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ZYNLONTA is currently approved under the FDA’s accelerated approval pathway as a single-agent treatment for patients with third-line-plus diffuse large B-cell lymphoma, or DLBCL. Chief Executive Officer Ameet Mallik said the company remains confident in the therapy’s role in that setting and does not expect the LOTIS-5 feedback to affect the existing monotherapy indication.
“The discussions with the FDA were related only to the trial,” Mallik said during the company’s earnings call. “There was no feedback at all about the single agent.”
FDA Raises Concerns on LOTIS-5 LOTIS-5 is a Phase III confirmatory trial evaluating ZYNLONTA in combination with rituximab against R-GemOx in patients with second-line DLBCL. The company said the study met its primary endpoint of progression-free survival and announced top-line results in June.
However, following an early-August pre-supplemental biologics license application meeting, Chief Medical Officer Mohamed Zaki said the FDA expressed substantial concerns regarding the benefit-risk assessment and verification of the benefit observed in the study.
ADC Therapeutics said it is assessing whether additional data, risk-management measures, or potential label modifications could address the agency’s concerns. The company did not provide a timeline for an updated regulatory strategy.
In response to analyst questions regarding serious infections in LOTIS-5, Mallik said the primary type of infections involved bacterial infections. He noted that LOTIS-7, a separate study of ZYNLONTA in combination with glofitamab, includes recommendations for prophylaxis and vaccinations covering viral, fungal and bacterial infections, including Pneumocystis jirovecii pneumonia and herpes virus. Those measures were not included in the LOTIS-5 protocol.
ADC Therapeutics submitted full LOTIS-5 data for presentation at the American Society of Hematology meeting and is pursuing publication. The company also expects to seek potential compendia inclusion beginning in 2027.
LOTIS-7 Enrollment Completed; Breakthrough Request Planned The company completed enrollment of 100 patients at the selected ZYNLONTA dose level in LOTIS-7, a Phase Ib study evaluating ZYNLONTA plus glofitamab in second-line-plus DLBCL. ADC Therapeutics submitted an abstract containing data from most of the enrolled population to ASH.
Mallik said the company believes the submitted data show compelling efficacy and safety, while Zaki said the combination has the potential to be a best-in-class regimen. The company did not disclose the updated data during the call.
ADC Therapeutics plans to submit a request for breakthrough therapy designation for the ZYNLONTA-glofitamab combination this year and is evaluating a potential Phase III study. Mallik said the company is still gathering feedback from the medical community and would need to work with the FDA on a final trial design, making it too early to discuss timing or cost.
Management said it does not expect the safety findings from LOTIS-5 to have implications for LOTIS-7 or for potential compendia inclusion of the latter regimen, citing differences in the study regimens and preventive-infection protocols. Mallik referenced the company’s prior December disclosure, which showed approximately 4% grade-five events among 49 patients in the earlier LOTIS-7 dataset.
Beyond DLBCL, the company said updated investigator-initiated trial data in marginal zone lymphoma were submitted to ASH. Updated follicular lymphoma data are anticipated in the second quarter of 2027. ADC Therapeutics also plans to assess regulatory paths in indolent lymphomas and expects to seek breakthrough designation in marginal zone lymphoma.
Costs Decline as Reorganization Takes Effect ADC Therapeutics reported total operating expenses of $44.7 million for the second quarter. On a non-GAAP basis, adjusted operating expenses were $37.2 million, a 22% decline from the prior-year quarter, primarily due to lower research and development expenses.
The company recorded a GAAP net loss of $16.6 million, compared with a net loss of $56.6 million a year earlier. Its non-GAAP adjusted net loss was $16.3 million, compared with $28.7 million in the second quarter of 2025.
In June, ADC Therapeutics announced a strategic reorganization that included a workforce reduction of approximately 17% and additional operational efficiencies. The company expects the actions to generate about $10 million in annualized cost savings while maintaining its commercial footprint for ZYNLONTA in third-line-plus DLBCL.
Cash and cash equivalents totaled $219.1 million at June 30, down from $231 million at March 31, primarily because of cash used in operations. The company said its cash runway is expected to extend at least into 2028.
Since receiving accelerated approval in 2021, ZYNLONTA monotherapy has been used to treat approximately 5,000 patients in the United States, according to Mallik. Management said it expects the therapy’s current commercial performance to remain stable and sees potential growth beginning in 2027 through expansion into earlier DLBCL treatment lines and indolent lymphomas.
About ADC Therapeutics (NYSE:ADCT)ADC Therapeutics SA is a clinical-stage biopharmaceutical company focused on the discovery and development of highly targeted antibody-drug conjugates (ADCs) designed to treat hematological malignancies such as non-Hodgkin lymphoma and acute myeloid leukemia. By marrying the specificity of monoclonal antibodies with potent cytotoxic payloads, the company aims to maximize tumor cell eradication while limiting off-target toxicity.
At the core of ADC Therapeutics' portfolio is loncastuximab tesirine-lpyl, a CD19-directed ADC that received accelerated approval from the U.S.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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cbdMD ve 3. fiskálním čtvrtletí meziročně zvýšila tržby o 20 % na 5,6 milionu USD. Růst podpořily vyšší velkoobchodní prodeje, značka Oasis a první celé čtvrtletí přínosu Bluebird Botanicals.
Accelerating Oasis Beverage Momentum, a Full Quarter of Bluebird Botanical Contribution, and Advancing Federal Hemp Legislation Strengthen the Company's Positioning for Competing under Pending Federal Regulations
, /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most trusted CBD companies and operator of the cbdMD, Bluebird Botanicals, and Paw CBD brands, along with its hemp-derived THC beverage brand Oasis and functional-mushroom brand ATRx Labs, today announced financial results for the third quarter of fiscal year 2026, ended June 30, 2026.
The Company delivered 20% year-over-year revenue growth, driven by a 61% increase in wholesale net sales, increased distribution of its Oasis beverage brand, and the first full quarter of contribution from the recently acquired Bluebird Botanicals.
"The third quarter was another quarter of top-line growth and real strategic progress," said Ronan Kennedy, Chief Executive Officer and Chief Financial Officer of cbdMD. "Revenue was up 20% year-over-year, our Oasis beverage brand sales continued to grow, and Bluebird Botanicals contributed a full quarter of revenue for the first time. We were not satisfied with our bottom line this quarter but the shortfall was largely the result of deliberate choices. We absorbed one-time costs tied to M&A due diligence and other one-time legal costs, continued to invest in product development, and did the work required to resolve supply-chain and address state-level compliance issues. During July we implemented cost reduction initiatives that we expect to result in saving potential up to $150,000 per month, as we are running the business to be leaner, more flexible, and well positioned to succeed in the market following the effectiveness of pending federal regulation."
"The regulatory picture is also moving in a more constructive direction," Kennedy continued. "A Senate-driven extension has given cbdMD and the broader industry additional time ahead of the November effective date of the H.R. 5371 Sec. 781 legislation to ensure company compliance with the pending laws, and the number of bipartisan legislative proposals continues to grow, including the Beverage Regulatory Parity Act introduced this week, which would regulate hemp-derived beverages much like alcohol. We believe momentum is building toward a workable federal framework, and that well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility, such as cbdMD, will be the ones that benefit as clarity emerges."
Highlights for the Third Quarter of Fiscal 2026 and Notable Business Updates
Revenue growth accelerated year-over-year. Net sales increased 20% to $5.6 million in the third quarter of fiscal 2026 from $4.6 million in the prior-year quarter, with wholesale net sales up 61% year-over-year. For the first nine months of fiscal 2026, net sales rose 12% to $16.2 million from $14.5 million in the prior-year period.
Oasis momentum continued to build. The Company added distribution for Oasis in South Carolina and transitioned to a new distribution partner in Texas that more than quadrupled the number of stores with access to the brand, with continued market growth into the fourth quarter. The recently launched Oasis Mixer has been well received and is contributing to brand growth. Distributor depletions grew 25% in the third fiscal quarter. We had record distributor depletions in July up over 34% from the Q3 average and currently at a pace to double in August
Oasis ingredient expansion. As of today, the Company is introducing a zero-proof Kava beverage under its Oasis brand as a follow-on to the successful Oasis Mixer. Kava is a natural euphoric people can feel! Immediate, functional, and free of intoxication and regulatory overhang of THC. This is the first of other natural compounds we anticipate launching before the end of the calendar year.
Bluebird Botanicals delivered its first full quarter of revenue. Bluebird Botanicals ("Bluebird") contributed more than $0.5 million revenue in the third quarter of fiscal 2026. After creating an earnings drag during integration in the initial quarter, we expect Bluebird to contribute to both revenue and earnings in the fourth fiscal quarter.
A federal extension creates procedural time to advance a permanent fix on Section 781. While the additional time helps cbdMD and the broader industry manage near-term compliance, its more important benefit is the procedural runway it creates for Congress to put a durable, industry-wide framework in place. A Senate stopgap appropriations proposal released in early August 2026 would, through December 11, 2026, temporarily exempt naturally occurring cannabinoids from the revised total-THC definition and the 0.4 milligram per-container limit under Section 781 of H.R. 5371, signed into law in November 2025, providing additional time ahead of the November 12, 2026 effective date both to bring products into compliance and, more significantly, to advance a permanent legislative solution for the industry. The continuing resolution, H.R. 6500, now moves to the House of Representatives for a vote by the end of September.
Bipartisan legislative momentum is growing. A growing number of bipartisan bills would repeal, delay, modify, or replace Section 781's restrictions, including the White House-supported Lawful Hemp Protection Act (H.R. 9830) introduced in July 2026. Most recently, on August 10, 2026, Representatives Beth Van Duyne (R-TX) and Greg Landsman (D-OH) introduced the bipartisan Beverage Regulatory Parity Act, which would establish an alcohol-style regulatory framework for hemp-derived beverages, a development directly relevant to the Company's Oasis brand.
Deliberate investments and one-time costs affected the bottom line. Results reflected more than $100,000 in legal and due-diligence expenses on additional M&A opportunities, continued investment in product development and clinical/regulatory initiatives, including our recent self-GRAS at 200mg per day, and incremental supply-chain and state-level compliance costs, including higher inventory reserves. The Company also identified additional supply-chain savings and, beginning in the fourth quarter of fiscal 2026, implemented cost-reduction initiatives targeting $100,000 to $150,000 in monthly savings (approximately $1.2 million to $1.8 million annualized) expected to improve future financial results and position the Company for a post-regulation market.
Financial Highlights from the Third Quarter of Fiscal Year 2026
Net sales totaled $5.6 million in the third quarter of fiscal 2026, an increase of 20% compared to $4.6 million in the third quarter of fiscal 2025. For the nine months ended June 30, 2026, net sales were $16.2 million, an increase of 12% compared to $14.5 million in the prior-year period.
Direct-to-consumer (e-commerce) net sales were $3.9 million, or 70% of total net sales, an increase of approximately 9% from the third quarter of fiscal 2025. The increase was attributed to addition of Bluebird, with some offsets related to increased state level restrictions.
Wholesale net sales were $1.7 million, or 30% of total net sales, an increase of 61% from the third quarter of fiscal 2025, reflecting continued progress with the Oasis brand and core cbdMD initiatives.
Gross profit as a percentage of net sales was 54.7% in the third quarter of fiscal 2026, compared to 61.5% in the prior-year quarter, primarily reflecting a shift in sales mix toward wholesale, incremental warehouse and repacking costs related to changing state-level requirements, and an increase in inventory reserves in anticipation of pending regulatory changes.
Loss from operations was approximately $1.13 million in the third quarter of fiscal 2026, compared to a loss of approximately $0.90 million in the prior-year period, reflecting the one-time and investment items described above.
Non-GAAP Adjusted EBITDA loss was approximately $508,000 in the third quarter of fiscal 2026, an improvement from an Adjusted EBITDA loss of approximately $624,000 in the third quarter of fiscal 2025.
Net loss attributable to common shareholders for the third quarter of fiscal 2026 was approximately $1.2 million, or $0.11 per share, compared to a net loss of approximately $1.2 million, or $0.21 per share, in the prior-year quarter. For the nine months ended June 30, 2026, net loss attributable to common shareholders improved to approximately $2.4 million, or $0.24 per share, from approximately $3.7 million, or $1.56 per share, in the prior-year period.
At June 30, 2026, the Company had working capital of approximately $4.7 million and cash on hand of approximately $2.1 million, compared to working capital of approximately $3.4 million and cash on hand of approximately $2.3 million at September 30, 2025.
Conference Call Details
The Company will host a conference call at 4:20 pm Eastern Time, on August 13, 2026, to discuss its third quarter fiscal 2026 financial results and business progress.
cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and recognized cannabidiol (CBD) brands, with a comprehensive line of U.S.-produced THC-free1 CBD products and an array of Farm Bill-compliant Delta 9 products. The Company owns and operates the cbdMD, Paw CBD, and Bluebird Botanicals CBD brands, the Oasis line of hemp-derived THC beverages, the Kavari line of Kava products, and the ATRx Labs functional-mushroom brand. To learn more about cbdMD and its other brands, please visit www.cbdmd.com, www.pawcbd.com, www.ATRxLabs.com, www.bluebirdbotanicals.com, or www.herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
1 THC-free is defined as below the level of detection using validated scientific analytical methods.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes," "will," "could," "would," "potential," "continue," "seek," and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our ability to continue as a going concern; our expectations regarding revenue growth and the performance of our core business and Oasis brand; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition and our pursuit of additional acquisitions; the anticipated benefits of our cost-reduction and supply-chain initiatives; our expectations regarding federal and state regulatory developments, including proposed legislation and the effective date of Section 781 of the Act, and their impact on our business; and our liquidity and working capital position. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our ability to continue as a going concern and maintain adequate liquidity; our ability to increase revenues and achieve profitability; our ability to successfully integrate Bluebird Botanicals and realize anticipated synergies and benefits; changes in consumer demand for CBD and hemp-derived products; our ability to maintain compliance with NYSE American continued listing requirements; changes in federal and state laws and regulations governing hemp, CBD, and cannabis products, including the potential impact of Section 781 of the Act and related legislation; our ability to compete effectively in a highly competitive market; our ability to maintain and expand our distribution channels; our ability to develop and successfully launch new products; disruptions in our supply chain or manufacturing operations; our ability to protect our intellectual property; cybersecurity risks and data privacy concerns; our ability to attract and retain key personnel; general economic conditions and their impact on consumer spending; and other risks and uncertainties described under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and our other filings with the Securities and Exchange Commission (the "SEC"). All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements except as required by applicable law. The information which appears on our websites and our social media platforms is not part of this press release.
par value, 1,591,210 and 1,700,000 shares issued and outstanding,
respectively
1,591
1,700
Common stock, authorized 150,000,000 shares, $0.001
par value, 11,118,820 and 8,917,054 shares issued and outstanding,
respectively
11,119
8,917
Additional paid in capital
19,00,34,330
18,66,50,640
Accumulated deficit
(18,18,34,770)
(17,94,35,150)
Total cbdMD, Inc. shareholders' equity
82,12,270
72,26,107
Total liabilities and shareholders' equity
$ 1,28,75,833
$ 1,04,19,950
cbdMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025
(unaudited)
Three months ended June 30,
Nine months ended June 30,
2026
2025
2026
2025
Gross Sales
$ 55,53,738
$ 46,06,796
$ 1,62,10,701
$ 1,44,69,698
Total Net Sales
$ 55,53,738
$ 46,06,796
$ 1,62,10,701
$ 1,44,69,698
Cost of sales
$ 25,16,204
$ 17,75,709
$ 69,14,955
$ 52,78,638
Gross Profit
$ 30,37,534
$ 28,31,087
$ 92,95,746
$ 91,91,060
Operating expenses
$ 41,68,011
$ 37,35,773
$ 1,15,13,299
$ 1,06,67,834
Loss from operations
$ (11,30,477)
$ (9,04,686)
$ (22,17,553)
$ (14,76,774)
Decrease (increase) in fair value of convertible debt
$ -
$ -
$ -
$ 87,380
Interest expense (income)
$ 3,275
$ 9,414
$ 9,238
$ 28,460
Loss before provision for income taxes
$ (11,27,202)
$ (8,95,272)
$ (22,08,315)
$ (13,60,934)
Net (loss) income
$ (11,27,202)
$ (8,95,272)
$ (22,08,315)
$ (13,60,934)
Preferred dividends
$ 71,031
$ 3,33,500
$ 1,91,307
$ 23,34,501
Net Loss attributable to cbdMD, Inc. common
shareholders
$ (11,98,233)
$ (12,28,772)
$ (23,99,622)
$ (36,95,435)
Net Loss per share:
Basic and diluted earnings per share
$ (0.11)
$ (0.21)
$ (0.24)
$ (1.56)
Weighted average number of shares Basic and Diluted:
1,06,16,617
57,83,354
1,00,16,121
23,76,157
cbdMD, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE, 2026 AND 2025
(unaudited)
June 30,
June 30,
2026
2025
Cash flows from operating activities:
Net Loss
$ (22,08,315)
$ (13,60,934)
Adjustments to reconcile net loss to net
cash used by operating activities:
Restricted stock expense
$ 3,62,109
$ 3,693
Issuance of stock for services
$ -
$ 82,250
Intangibles amortization
$ 6,12,751
$ 5,73,801
Depreciation
$ 1,43,210
$ 2,90,275
Decrease in fair value of convertible debt
$ -
$ (87,380)
Amortization of operating lease asset
$ 5,24,525
$ 4,99,309
Changes in operating assets and liabilities:
Accounts receivable
$ (6,90,727)
$ 17,351
Inventory
$ (2,83,110)
$ (4,33,495)
Prepaid inventory
$ 28,032
$ (2,21,034)
Prepaid expenses and other current assets
$ 49,023
$ 37,017
Accounts payable and accrued expenses
$ 77,762
$ (1,94,632)
Operating lease liability
$ (5,77,005)
$ (4,23,855)
Deferred revenue / customer deposits
$ (15,377)
$ 6,008
Cash flows from operating activities
$ (19,77,122)
$ (12,11,626)
Cash flows from investing activities:
Purchase of property and equipment
$ (1,88,615)
$ (1,81,368)
Purchase of Bluebird
$ 56,427
$ -
Cash flows from investing activities
$ (1,32,188)
$ (1,81,368)
Cash flows from financing activities:
Proceeds from ELOC draw
$ 61,990
Proceeds from issuance of preferred stock
$ 20,24,693
Preferred dividends distribution
$ (1,20,276)
$ -
Cash flows from financing activities
$ 19,66,407
$ -
Net increase (decrease) in cash
$ (1,42,903)
$ (13,92,994)
Cash and cash equivalents, beginning of period
$ 22,61,242
$ 24,52,553
Cash and cash equivalents, end of period
$ 21,18,339
$ 10,59,559
Supplemental Disclosures of Cash Flow Information:
2026
2025
Cash Payments for:
Interest expense
$ 19,046
Non-cash financing/investing activities:
Issuance of shares for conversion of debt and accrued interest
$ -
$ 10,79,639
Change in lease asset related to extinguishment of HQ lease and new warehouse lease
$ -
$ (17,23,544)
ROU Assets obtained in exchange for lease liabilities
$ 20,03,708
$ -
All stock purchase of Bluebird
$ 9,36,992
$ -
Conversion of accrued preferred dividends to preferred stock
$ -
$ 66,72,652
Preferred dividends accrued but not paid
$ 71,031
$ 23,34,501
Non-GAAP Financial Measures
This press release includes a financial measure, Adjusted EBITDA, that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. defines Adjusted EBITDA as GAAP loss from operations adjusted to (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) inventory reserve, (iii) regulatory and legal matters, and (iv) mergers and acquisitions and financing transaction expenses for the periods presented. cbdMD, Inc. has included Adjusted EBITDA because management uses this measure to assess operating performance and to highlight trends in the business that may not otherwise be apparent when relying on GAAP measures. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, loss from operations as an indicator of operating performance and, as presented, may not be comparable to similarly titled measures reported by other companies. A reconciliation to the most directly comparable GAAP measure is provided below.
Reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted EBITDA (Unaudited)
cbdMD, Inc.
NON GAAP ADJUSTED EBITDA
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025
(unaudited)
Three months ended June 30,
Nine months ended June 30,
2026
2025
2026
2025
GAAP (loss) from operations
$ (11,30,477)
$ (9,04,686)
$ (22,17,553)
$ (5,72,088)
Adjustments:
Depreciation and Amortization (1)
$ 2,58,969
$ 2,80,172
$ 7,55,962
$ 5,83,903
Employee and director stock compensation (2)
$ 65,159
$ 825
$ 3,66,963
$ 5,016
Inventory Reserve (3)
$ 1,20,000
$ 1,20,000
Regulatory and Legal Mattters (4)
$ 53,000
$ 53,000
Mergers and Acquisitions and financing transaction expense (5)
$ 1,26,000
$ -
$ 1,57,671
$ -
Non-GAAP adjusted EBITDA
$ (5,07,349)
$ (6,23,689)
$ (7,63,957)
$ 16,831
(1) Represents depreciation of property, plant and equipment and amortization of the Company's intangible assets.
(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.
(3) Represents additional inventory reserve in preparation for pending regulatory changes.
(4) Represents regulatory costs associated with pending legislation.
(5) Represents costs associated with the Bluebird acquisition, preferred stock offerings and review of additional potential acquisition opportunities.
Contacts
Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
[email protected]
(704) 445-3064
UFP Industries plánuje novou továrnu v okrese Cherokee v Jižní Karolíně, která rozšíří kapacitu divize Structural Packaging. Projekt má přinést 136 pracovních míst a investici asi 5,31 milionu USD.
, /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI) today announced plans to establish a new UFP Packaging manufacturing facility in Cherokee County, South Carolina, expanding its Structural Packaging capacity and strengthening its ability to serve national industrial customers with custom, value-added packaging solutions.
The project is expected to create 136 new jobs over five years and represents an investment of approximately $5.31 million in real property, machinery and equipment. The facility will manufacture wood packaging products and strengthen UFP Packaging's ability to serve industrial customers, especially those with highly-technical needs, across the Southeast and beyond.
"This project is a strong example of how we are investing in our higher-margin core businesses while expanding the capabilities that differentiate UFP in the market," said Will Schwartz, President and CEO of UFP Industries. "We've discussed the significant progress our Structural Packaging business unit is making with strategic customers across the industrial economy. This investment supports that strategy. It gives us added capacity, expands our geographic reach and enhances our ability to deliver highly customized solutions that help customers solve difficult packaging and logistics challenges. It also gives us the opportunity to build a team the UFP way — by developing people, promoting from within and creating careers that last. South Carolina's strong manufacturing base, skilled workforce and values-driven business environment make it the right fit for our company and our culture."
UFP Packaging serves industrial, manufacturing and logistics customers with a broad portfolio of packaging products and services, including structural packaging, pallet solutions and protective packaging. Its Structural Packaging business designs and manufactures custom wood, steel, foam and mixed-material packaging solutions for customers with demanding shipping, storage and product-protection requirements.
"Structural Packaging is one of the clearest examples of where our scale, technical knowledge and customer relationships come together," said Scott Worthington, President of UFP Packaging. "Our teams are not simply selling boxes or crates. They are working with customers to understand what they make, how it moves, what risks it faces in transit and how we can design a better solution. This facility and the local South Carolinians who run it will help us support large, national customers with the consistency, engineering support and responsiveness they need as their own operations grow."
The planned South Carolina facility will position UFP Packaging closer to important industrial customers and transportation corridors while increasing production flexibility across its national manufacturing network. It also reflects UFP Industries' continued focus on value-added products, operational excellence and disciplined capital deployment.
"This is exactly the type of opportunity we are focused on," Schwartz continued. "It strengthens a core business, supports above-market growth and reinforces our long-term goal of improving margins and returns by providing more value to our customers, who are often among the nation's top innovators. We are grateful for the support of Cherokee County and the State of South Carolina, and we look forward to building a strong team and operation in the region."
The project remains subject to customary approvals and finalization of related agreements.
About UFP Industries, Inc.
UFP Industries, Inc. is a holding company whose operating subsidiaries, UFP Packaging, UFP Construction and UFP Retail Solutions, manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Michigan, with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, visit www.ufpi.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations, estimates and projections and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements include, but are not limited to, statements regarding anticipated investment, job creation, capacity expansion, customer demand, growth opportunities, operational capabilities and strategic benefits. These statements do not guarantee future performance. UFP Industries undertakes no obligation to update forward-looking statements except as required by law.
CEG získala téměř 920 MW nových dlouhodobých jaderných PPA s průměrnou délkou 18,5 roku. Do roku 2032 má být asi 30 % její základní čisté výroby pod dlouhodobými smlouvami.
Key Takeaways CEG secured nearly 920 MW of new long-term nuclear PPAs averaging 18.5 years.CEG expects about 30% of baseload clean generation under long-term agreements by 2032.CEG is advancing license extensions, the Crane restart and about 1,100 MW of nuclear uprates. Constellation Energy’s (CEG - Free Report) nuclear fleet is benefiting from rising demand for reliable, carbon-free electricity. Growing customer interest in long-term nuclear contracts further supports revenue visibility.
In the second quarter of 2026, CEG’s nuclear fleet generated 44,160 gigawatt-hours (GWhs), while its owned nuclear plants, excluding Salem and South Texas Project, achieved a 93% capacity factor. Although the capacity factor declined from 94.8% a year earlier, non-refueling outage days improved to 20 from 22.
The company is also generating more value from its nuclear assets through long-term contracts. During the second quarter of 2026, CEG secured nearly 920 megawatts (MW) of new long-term nuclear PPAs with an average contract duration of 18.5 years. These agreements are expected to place roughly 30% of its baseload clean generation under long-term agreements by 2032, providing greater revenue visibility while serving growing electricity demand. CEG expects more than 20% base earnings per share (EPS) growth through 2029
CEG is further extending the productive life of its nuclear fleet. The company filed license renewal applications for Ginna and Nine Mile Point Unit 1, seeking to extend their operations to 2049. It continues to advance the restart of the Crane Clean Energy Center, with approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. Constellation Energy's fleet is positioned to add about 1,100 MWs of nuclear uprates.
Overall, nuclear fleet reliability, long-term contracts, license extensions and the Crane restart could support CEG’s growth.
Utilities Benefit From Improved Nuclear OperationsUtilities benefit when nuclear plants run more efficiently. Better maintenance and shorter refueling outages keep plants online longer. This improves electricity production and reliability. Higher capacity factors can also support steadier revenues and reduce the need for costly replacement power.
Duke Energy (DUK - Free Report) operates 11 nuclear units across six sites in North and South Carolina, with approximately 10,773 MW of combined nuclear generating capacity. Stronger plant reliability supports steady generation, grid reliability and lower customer costs.
Entergy Corp. (ETR - Free Report) operates and supports five nuclear units across four sites, with approximately 5,376 MW of carbon-free generating capacity. Reliable nuclear operations support electricity supply and financial performance.
The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 26.62% and 9.43%, respectively, year over year.
Image Source: Zacks Investment Research
CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 14.89%, ahead of the industry average of 7.16%.
Image Source: Zacks Investment Research
CEG’s Stock Price PerformanceIn the past month, the company’s shares have risen 9% against the industry’s 1.1% fall.
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CEG’s Zacks RankCEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KLA za měsíc oslabila o 9,3 % kvůli tlaku na marže, problémům v dodávkách a rizikům při rozšiřování kapacit. Firma ale dál těží ze silných investic do AI a očekává růst tržeb.
Key Takeaways KLA shares fell 9.3% in a month amid margin pressure, supply constraints and execution risks.AI spending, HBM and advanced packaging are expected to drive strong KLA growth through 2027.KLA targets about $26 billion in 2030 revenue as process-control intensity and market share rise.
KLA (KLAC - Free Report) shares dropped 9.3% in the past month, underperforming the broader Zacks Computer and Technology sector’s return of 1.4%. The underperformance can be attributed to investor concerns around near-term margins, execution risks and elevated expectations. The company expects higher memory-component costs and tariffs to keep gross margin under pressure, with memory pricing pressure likely to persist through 2027. Shortages in certain long-lead-time components as well as rising execution risk related to KLAC’s capacity expansion initiatives to meet high demand are concerns. KLA also faces significant geopolitical and regulatory uncertainty related to China, tariffs and broader trade restrictions.
The company’s shares have underperformed its peers, including Entegris (ENTG - Free Report) and Lam Research (LRCX - Free Report) , but outperformed MKS (MKSI - Free Report) over the past month. Entegris shares have returned 14.5% over the same time frame while Lam Research and MKS dropped 4.7% and 13.5%, respectively. So, what should investors do with KLAC shares? Let’s find out.
KLAC Stock’s Price Performance
Image Source: Zacks Investment Research
KLA Shares Trade at PremiumKLAC shares are trading at a premium, as suggested by the Value Score of D.
In terms of the forward 12-month price/sales, KLAC is trading at 14.92X, higher than the broader sector’s 6.55X. KLAC shares are trading at a premium compared with MKS, Entegris, and Lam Research, shares of which are trading at 3.77X, 6.41X, and 11.76X, respectively.
KLAC Stock’s Valuation
Image Source: Zacks Investment Research
KLAC’s Prospects Ride on Strong AI DemandKLA’s growth outlook remains strong for the remainder of calendar 2026 and into 2027, supported primarily by accelerating AI infrastructure spending, leading-edge foundry/logic investment, high-bandwidth memory (HBM) adoption and advanced packaging. The company expects second-half calendar 2026 revenues to grow approximately 20% from the first half as additional supply capacity becomes available, while its September-quarter (first-quarter fiscal 2027) revenue guidance of $4 billion (plus or minus $200 million) at the midpoint implies another meaningful sequential increase.
Advanced packaging is emerging as a strong contributor, with KLA forecasting approximately $1.1 billion of process-control systems revenue in calendar 2026, up more than 70% year over year (which increases from prior guidance of high 50% growth). Specialty Process and PCB/Component Inspection businesses are expected to grow more than 25%. Services business is expected to provide another source of momentum as higher system shipments enlarge the installed base. In the fourth quarter of fiscal 2026, Services revenues increased 17% year over year to $820 million. The company also sees broad-based investment across leading-edge logic, DRAM, HBM, NAND and new greenfield fabs supporting significant growth in 2027.
KLA should benefit from structurally rising process-control intensity as semiconductor devices become more complex and valuable. Faster product cycles, more stringent performance specifications, greater design variability, higher-value wafers and masks, increased EUV adoption, HBM and advanced packaging all require more inspection, metrology and yield-management capability.
KLA’s 2030 framework assumes the process-control market will grow faster than overall wafer-fabrication equipment, supported by intensity and market-share gains at the leading edge, advanced packaging and a greater than 150-basis-point increase in KLA’s share of WFE. The company targets revenues of about $26 billion (plus or minus $2.5 billion) by 2030, representing an estimated 13-17% CAGR, while Services is expected to grow 13-15%.
KLAC’s Earnings Estimate Revision Shows Rising TrendThe Zacks Consensus Estimate for first-quarter fiscal 2027 revenues is currently pegged at $4.03 billion, suggesting 25.42% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is currently pegged at $1.17 per share, up four cents over the past 30 days. The figure suggests 32.95% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $17.85 billion, suggesting 31.46% growth from the figure reported in fiscal 2026. The consensus mark for earnings is currently pegged at $5.43 per share, up 7.7% over the past 30 days. The figure suggests 44.41% growth from the figure reported in fiscal 2026.
ConclusionKLA’s recent share-price weakness appears to offer a potentially attractive entry point for investors willing to look beyond near-term margin and supply-chain pressures. The company is benefiting from strong AI-driven semiconductor spending, rising process-control intensity, expanding HBM and advanced-packaging adoption, and a growing services base. Encouragingly, earnings estimates for both the fiscal first quarter and fiscal 2027 have moved higher, reinforcing confidence in the company’s growth trajectory. Although KLAC’s premium valuation warrants some caution, its market leadership, improving demand visibility and ambitious 2030 growth targets support a favorable long-term outlook. Investors may consider using the recent pullback as an opportunity to accumulate the stock for its compelling growth prospects.
KLA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eversource plánuje do roku 2030 investovat téměř 26,5 mld. USD do přenosu, distribuce a modernizace sítě. Firma očekává, že tyto výdaje podpoří dlouhodobý růst EPS o 5–7 %.
Key Takeaways Eversource plans to invest $26.5B through 2030 in transmission, distribution and grid modernization.
Eversource sees transmission spending as a growth driver as New England electricity demand increases.
Grid investments are expected to support 5-7% long-term EPS growth, moving toward the upper half by 2028.
Eversource Energy (ES - Free Report) is strengthening its electric grid through modernization and advanced metering initiatives to enhance operational efficiency. These investments can also improve service quality and support growing customer demand.
Eversource operates an extensive electric network comprising nearly 59,900 distribution miles and 4,500 transmission miles, which allows the company to efficiently meet demand and provide high-quality services to its customers.
The company plans to invest nearly $26.5 billion through 2030, which includes $7.14 billion for transmission and $11.42 billion for the electric distribution network. ES also sees $1.7 billion of potential incremental investments, including $1 billion for Connecticut advanced metering infrastructure and $700 million related to the longer-term transmission planning process.
Transmission spending could become an important growth driver as electricity demand rises across New England. ISO-New England has preliminarily selected Eversource and Avangrid’s $2.2 billion transmission proposal, with ES’ share expected to be about $700 million. The project is intended to increase transmission capacity and reduce congestion costs, although final approval remains pending.
The investment program provides a strong opportunity to expand Eversource’s regulated rate base and generate earnings growth. The company is targeting 5-7% long-term earnings per share growth, with growth expected to move toward the upper half of this range by 2028.
Overall, rising power demand, transmission opportunities and sustained grid spending are expected to strengthen ES’ regulated rate base and support long-term earnings (EPS) growth. These investments also position the company to capitalize on increasing electricity needs.
Strategic Expenditures Drive Grid ModernizationA strategic capital program enhances the grid through targeted investments in transmission, distribution and modernization initiatives. The investments improve grid reliability, replace aging assets, increase system capacity, accommodate growing power demand, expand the regulated rate base and support long-term earnings growth.
FirstEnergy Corp. (FE - Free Report) is advancing grid modernization through its multi-year Energize365 program, aimed at strengthening infrastructure, enhancing customer service and supporting affordability. The company plans to invest $36 billion from 2026 to 2030.
PPL Corporation (PPL - Free Report) aims to invest $23 billion through 2029, which includes grid hardening, smart-grid technology, automation and transmission expansion, supporting reliability and approximately 10.3% annual rate-base growth.
The Zacks Rundown on ESES’ Earnings EstimatesThe Zacks Consensus Estimate for 2026 EPS indicates a year-over-year decrease of 2.52%, while the estimate for 2027 EPS suggests a 6.45% increase.
Image Source: Zacks Investment Research
ES’ Stock Trading at a DiscountES is trading at a discount to the industry, with a forward 12-month price-to-earnings ratio of 14.82X versus the industry average of 15.42X.
Image Source: Zacks Investment Research
ES’ Stock Price PerformanceIn the past three months, the company’s shares have risen 4.8% compared with the industry’s 5.3% growth.
Brown & Brown ve 2. čtvrtletí zvýšila provize a poplatky o 32,4 % na 1,65 miliardy USD, ale úrokové výdaje vyskočily o 96,1 % na 100 milionů USD. Akcie BRO se obchodují s forwardovým P/E 15,04x pod odvětvovým průměrem 16,51x.
Key Takeaways Brown & Brown's commissions and fees surged 32.4% to $1.65 billion in Q2 2026. Accession added about $410 million to Q2 revenues, with $30-$40 million of 2026 synergies expected.Interest expense jumped 96.1% to $100 million as long-term debt reached $7.76 billion. Shares of Brown & Brown, Inc. (BRO - Free Report) are trading at a discount compared with the industry. Its forward 12-month price-to-earnings multiple of 15.04X is lower than the industry average of 16.51X.
Image Source: Zacks Investment Research
The insurer has a market capitalization of $23.96 billion. The average volume of shares traded in the last three months was 2.92 million.
Shares of other insurance brokers like Aon plc (AON - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) are trading at a premium, while Willis Towers Watson Public Limited Company (WTW - Free Report) is trading at a discount.
BRO’s Price PerformanceShares of Brown & Brown have gained 27.4% in the past three months compared with the industry’s 22.4% growth.
Shares of other insurance brokers like AON, AJG and WTW have gained 11.8%, 29.3% and 37.5%, respectively, over the past three months.
3-Month Price Performance - BRO, AON, AJG, WTW & Industry
Image Source: Zacks Investment Research
BRO’s Average Target Price Suggests UpsideBased on short-term price targets offered by 16 analysts, the Zacks average price target is $76.44 per share. The average suggests a potential 7.6% upside from the last closing price.
Image Source: Zacks Investment Research
BRO’s Growth ProjectionThe Zacks Consensus Estimate for Brown & Brown’s 2026 earnings per share (EPS) indicates a year-over-year increase of 5.6%. The consensus estimate for revenues is pegged at $7.04 billion, implying a year-over-year improvement of 19.2%.
The consensus estimate for 2027 EPS and revenues indicates increases of 8.1% and 5.3%, respectively, from the corresponding 2026 estimates.
Earnings have grown 19.2% in the past five years, better than the industry average of 13.9%. The expected long-term earnings growth rate is 4.5%.
Muted Analyst Sentiment on BROThe Zacks Consensus Estimate for 2026 and 2027 earnings moved 0.2% and 0.4% south, respectively, in the last 30 days.
Factors That Benefit BROCommissions and fees, the main component of the top line, benefit from increasing new business, strong retention, improving sales momentum and ongoing rate rises across most lines of coverage, supporting recurring revenues and earnings visibility. Commissions and fees increased 32.4% year over year to $1.65 billion in the second quarter of 2026. Additionally, strong contingent commission income supports earnings growth, with contingent commissions increasing $40 million in the second quarter of 2026, including a $24 million contribution from the Accession acquisition.
Brown & Brown’s strategic acquisitions strengthen its product portfolio, expand its reach and support growth. The company completed six small agency acquisitions during the second quarter, while the Accession acquisition contributed approximately $410 million to second-quarter 2026 revenues. BRO expects $30-$40 million in synergies in 2026, with the integration of approximately 5,500 new employees further strengthening its capabilities and cross-selling opportunities.
The company operates across Retail and Specialty Distribution businesses, providing broad exposure to multiple insurance markets. In the second quarter of 2026, Retail revenues increased 35.9% year over year, while Specialty Distribution revenues rose 28.1%. Management expects organic growth to improve in both segments in the second half, with Retail growth excluding contingents at 1.5-2.5% and Specialty Distribution growth at 2-4%. Favorable casualty pricing and strong demand for risk-management and employee-benefits services should support growth.
Artificial intelligence (AI) and technology investments could provide an additional long-term catalyst. Partnerships with Anthropic, McKinsey and Accenture are expected to accelerate AI adoption across sales, placement, underwriting and support functions.
BRO is also benefiting from strong cash generation and shareholder-friendly capital allocation. Operating cash flow reached approximately $610 million in the first half of 2026, up 13% year over year. The company repurchased approximately $500 million of stock during the first six months. It also plans to continue balancing capital deployment among share repurchases, debt reduction, organic investments and selective acquisitions.
BRO's HeadwindsBrown & Brown has been experiencing rising expenses due to higher employee compensation and benefits, amortization, other operating expenses and interest expense. These factors are creating pressure on margins despite revenue growth.
As of June 30, 2026, long-term debt rose 1.2% to $7.76 billion, while interest expense surged 96.1% to $100 million, weighing on financial flexibility.
BRO's expanding international operations expose it to foreign currency, regulatory and economic risks across global markets.
ConclusionBRO’s commission growth, new business, strong retention, strategic buyouts, diversified brokerage platform and balanced capital deployment position the company well for growth. Its robust capital position, AI and technology investments, favorable estimates and cheap valuation are other positives. However, international expansion risks, rising expenses, muted analyst sentiment and debt levels are the headwinds.
Therefore, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viavi Solutions ve fiskálním roce 2026 zvýšila tržby o 40 % na 1,5 miliardy USD a non-GAAP EPS o 112,8 % na 1,00 USD. Akcie za tři měsíce klesly o 18,2 %.
Key Takeaways Viavi Solutions delivered 40% fiscal 2026 revenue growth and a 112.8% rise in non-GAAP EPS.NSE revenue surged 52.3%, driven by data center demand, aerospace and defense, and Spirent products.Weak wireless demand, variable cash flow and share dilution temper the bullish case despite strong growth.
Shares of Viavi Solutions Inc. (VIAV - Free Report) have declined 18.2% in the past three months despite a sharp improvement in the company's operating performance. Fiscal 2026 revenues rose 40% year over year to $1.5 billion, while non-GAAP earnings per share increased 112.8% to $1.00. Fourth-quarter revenue climbed 52.5% to $443.1 million, and earnings rose 161.5% to 34 cents per share.
The disconnect raises a key question for investors: Can accelerating demand and expanding margins support VIAV after its pullback, or will concerns about wireless testing, cash generation and share dilution continue to weigh on the shares?
Image Source: Zacks Investment Research
VIAV's 3-Month Decline Tests the Growth StoryViavi's fiscal 2026 results provide a strong fundamental backdrop despite the recent decline. Fourth-quarter revenues, non-GAAP operating margin and earnings exceeded the high end of management's guidance. Non-GAAP operating margin reached 24%, up 960 basis points year over year, while earnings of 34 cents per share were 13.3% above the Zacks Consensus Estimate.
The improvement extended through the full year. Fiscal 2026 non-GAAP operating income increased 101.6% to $312.9 million, while the non-GAAP operating margin expanded to 20.6% from 14.3% a year earlier. Higher revenue and favorable product mix drove the improvement.
VIAV's recent price performance also needs context. The stock is down 18.2% over the past three months but has gained 290.8% over the past year. Over the same three-month period, the Zacks sub-industry has declined 13.9%, while the Zacks Computer and Technology sector gained 2.6%.
Viavi Solutions Still Benefits From AI InfrastructureData center and AI infrastructure demand remain important growth drivers for Viavi. The company said fiscal 2026 growth was driven mainly by demand for lab, production and field products tied to the data center ecosystem, along with aerospace and defense products. Acquisitions of certain Spirent product lines and Inertial Labs also contributed to growth.
The Network and Service Enablement (NSE) segment has become the company's main growth engine. NSE revenues increased 52.3% in fiscal 2026 to $1.18 billion and accounted for 77.9% of total revenue. Fourth-quarter NSE revenue jumped 69.2% year over year to $353.9 million, driven by demand for lab, production and field products, aerospace and defense products and acquired Spirent product lines.
Viavi is also expanding its testing portfolio for AI infrastructure. Recent product launches include an Ultra Ethernet Transport validation platform and the CyberFlood CF1000, a 400G security and application performance testing platform designed for AI data center infrastructures. These offerings broaden the company's exposure to high-speed networking and AI-related testing requirements.
VIAV's Earnings Momentum Supports the Bull CaseThe pace of NSE growth is central to the bullish case. Fourth-quarter NSE revenues of $353.9 million exceeded the company's $340-$348 million guidance range. NSE gross margin increased 190 basis points year over year to 64.1%, while operating margin reached 20%.
Management expects the momentum to continue into fiscal 2027. Viavi expects first-quarter revenues of $450-$460 million and non-GAAP EPS of 40-42 cents. The company also expects OSP revenue of $90-$92 million and operating margin of 43.2% for the quarter.
The Zacks Consensus Estimate projects fiscal 2027 revenues of $1.874 billion and EPS of $1.22 compared with $1.518 billion and $1, respectively, in fiscal 2026.
Among industry peers, Knowles Corporation (KN - Free Report) carries an Outperform recommendation, while ADTRAN Holdings, Inc. (ADTN - Free Report) has an Underperform recommendation, providing additional context for investors evaluating VIAV's position within the Communication - Components industry.
Viavi Solutions Faces Wireless and Cash Flow RisksThe growth story has several offsets. Management has indicated that wireless test demand remains weak, with no near-term recovery expected. Fiscal fourth-quarter growth was driven primarily by data center, aerospace and defense demand, leaving the traditional wireless market with limited visibility.
Cash generation also warrants attention. Viavi generated $113.9 million in operating cash flow and $82.8 million in free cash flow in fiscal 2026. Fourth-quarter operating cash flow improved to $66.7 million from negative $26.3 million in the prior quarter, but the sharp sequential swing highlights the sensitivity of cash conversion to working capital and other cash requirements.
Capital allocation creates another trade-off. Viavi raised $575 million through a follow-on equity offering in fiscal fourth-quarter 2026 and issued approximately 12.78 million shares at $45 per share. The company used $450 million of the proceeds to repay Term Loan B. While the debt reduction strengthens the balance sheet, the larger share base spreads future earnings across more shares. Basic shares used in fourth-quarter EPS calculations rose 7.2% year over year, while diluted shares increased 15%.
OSP profitability is another variable to monitor. OSP revenue increased 9% in fiscal 2026, but its gross margin declined to 52.2% from 53.2% a year earlier, indicating that product mix can affect profitability even when revenue is growing.
VIAV's Rank Signals Caution Despite GrowthVIAV currently carries a Zacks Rank #3 (Hold) and a Neutral long-term Zacks Recommendation. Its Zacks Style Scores are a Value Score of D, Growth Score of D, Momentum Score of D and VGM Score of F.
The Zacks Rank is designed to reflect trends in earnings estimate revisions over a one- to three-month horizon, while Zacks Style Scores serve as complementary indicators covering value, growth and momentum characteristics. The VGM Score combines the three individual Style Scores.
For a Zacks Rank #3 stock, the Style Score hierarchy still matters. The Style Score framework favors higher grades, with A and B scores offering the most favorable profile. VIAV's D scores and F VGM Score therefore temper the bullish fundamental case. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VIAV's three-month decline does not by itself establish a buying opportunity. Fiscal 2026 results show accelerating revenue, strong NSE growth and expanding margins, while fiscal 2027 guidance points to further earnings growth. However, weak wireless demand, variable cash generation, share dilution and the stock's Zacks Rank #3 argue for a measured view as investors weigh the improving fundamentals against the risks.
Viavi Solutions očekává ve fiskálním roce 2027 tržby ve výši 1,874 miliardy USD, což představuje meziroční růst o 23,5 %. Ocenění akcií je ale nad pětiletým mediánem.
Key Takeaways Viavi Solutions expects fiscal 2027 revenue to rise 23.5% to $1.874 billion.NSE revenue jumped 52.3% in fiscal 2026, with margins expanding sharply on higher volume and mix.VIAV trades above its five-year median multiple, limiting the upside case if growth or margins slow. Viavi Solutions Inc. (VIAV - Free Report) enters fiscal 2027 with a sharp improvement in revenue, earnings and operating margins. Fiscal 2026 revenues rose 40% year over year to $1.5 billion, while earnings increased 112.8% to $1 per share. The Zacks Consensus Estimate calls for fiscal 2027 revenues of $1.874 billion, implying 23.5% growth, while earnings are projected to rise to $1.22 per share.
The growth outlook is supported by data center and AI infrastructure demand, broader testing capabilities and the integration of Spirent assets. However, VIAV's valuation remains above its five-year median, while its Zacks Rank and Style Scores point to a less favorable quantitative setup.
VIAV's Growth Profile Is AcceleratingViavi's fiscal 2026 results show a meaningful change in the company's growth profile. Revenues reached $1.518 billion, up 40% from fiscal 2025, with Network and Service Enablement (NSE) revenues rising 52.3% to $1.183 billion. NSE accounted for 77.9% of total fiscal 2026 revenues.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects fiscal 2027 revenues of $1.874 billion, up 23.5% from fiscal 2026. The consensus EPS estimate is $1.22, compared with $1.00 in fiscal 2026. Estimates for fiscal 2028 call for revenues of $2.082 billion and EPS of $1.50, indicating that analysts expect the growth trajectory to extend beyond the current fiscal year.
The near-term outlook is also supported by management's fiscal first-quarter 2027 guidance. Viavi expects revenues of $450-$460 million and non-GAAP EPS of 40-42 cents. Management expects NSE revenues of $360-$368 million, compared with $353.9 million in the fiscal fourth quarter.
Viavi Solutions Shows Strong Earnings MomentumThe fiscal fourth quarter provided further evidence of operating leverage. Viavi reported revenues of $443.1 million, up 52.5% year over year, while non-GAAP EPS of 34 cents exceeded the Zacks Consensus Estimate of 30 cents by 13.3%. Revenue also topped the consensus mark by 2.3%.
Non-GAAP operating margin expanded to 24.0% from 14.4% a year earlier, a 960-basis-point improvement. Non-GAAP operating income more than doubled to $106.4 million. Higher revenues, increased volume and favorable product mix helped improve profitability.
NSE provided much of the operating leverage. Fourth-quarter NSE revenue increased 69.2% year over year to $353.9 million, while its gross margin rose 190 basis points to 64.1%. NSE operating margin reached 20%, up 1,540 basis points year over year.
VIAV's Valuation Limits the Upside CaseThe earnings outlook is improving, but the stock already reflects part of that growth. VIAV trades at 34.4X forward 12-month earnings, above its five-year median of 27.5X. The shares have traded between 12.3X and 65.9X over the past five years, placing the current multiple above the historical midpoint.
Image Source: Zacks Investment Research
The valuation premium becomes more relevant when compared with broader benchmarks. VIAV's forward earnings multiple is below the 40.2X average for the Zacks sub-industry but above the 21.5X sector multiple and 20.7X multiple for the S&P 500.
Among its industry peers, VIAV's quantitative profile is mixed. Knowles Corporation (KN - Free Report) carries a Zacks Rank #2 (Buy) and an Outperform recommendation, while ADTRAN Holdings (ADTN - Free Report) carries a Zacks Rank #4 (Sell) and an Underperform recommendation. VIAV's Zacks Rank #3 (Hold) therefore places it between these two peers on the Zacks short-term ranking scale. The comparison highlights that the industry's growth opportunities do not translate into equally favorable quantitative setups across individual stocks.
The valuation data also show a price-to-book multiple of about 7.0X. That leaves less room for execution setbacks if revenue growth or margin expansion slows. The Zacks price target of $47 reflects 8.9X forward 12-month earnings, substantially below the stock's current forward multiple.
Viavi Solutions Gains From Spirent IntegrationThe integration of acquired Spirent product lines has broadened Viavi's testing portfolio. The company cited contributions from certain Spirent product lines as one of the drivers of fourth-quarter NSE growth, alongside demand from the data center ecosystem and aerospace and defense markets.
The acquired high-speed Ethernet and network security testing assets also expand Viavi's addressable market across enterprise and data center applications. New offerings, including Observer Threat Forensics and the CyberFlood product family, extend the portfolio into network validation, security testing and performance assurance.
The opportunity is tied closely to rising network complexity. Viavi has added capabilities such as PCIe 7.0 analysis, the CyberFlood CF1000 and its Ultra Ethernet Transport validation platform to address AI infrastructure, encrypted traffic and next-generation networking requirements. These products expand the company's potential market, although the financial contribution from newer offerings and acquired assets will depend on customer adoption and execution.
VIAV's Rank and Style Scores Favor a Cautious ViewVIAV currently carries a Zacks Rank #3 (Hold). Its Zacks Style Scores include a Value Score of D, Growth Score of D, Momentum Score of D and VGM Score of F. The stock also has a Neutral Zacks Recommendation for the six- to 12-month horizon.
The Zacks Rank focuses on earnings estimate revision trends over the one- to three-month horizon, while the Zacks Style Scores provide complementary measures of value, growth and momentum. The VGM Score combines the weighted individual Style Scores.
The peer comparison further reinforces the cautious view. KN's Zacks Rank #2 (Buy) and Outperform recommendation contrast with ADTN's Zacks Rank #4 and Underperform recommendation, while VIAV sits in the middle with a Hold ranking. This suggests investors should evaluate VIAV not only on its strong operating growth but also on how its valuation and quantitative characteristics compare with other communication-components stocks.
The weak Style Scores are notable because the framework favors higher grades, with A and B scores providing the more favorable profiles. For a Zacks Rank #3 stock, the D scores and F VGM Score suggest that the company's improving fundamentals have not translated into an across-the-board favorable quantitative setup.
VIAV therefore presents a growth-versus-valuation decision rather than a straightforward buy case. Revenue and EPS are expected to grow at a healthy pace, margins are expanding and Spirent-related capabilities broaden the company's exposure to data center and cybersecurity testing. At the same time, the forward valuation sits above its five-year median, while the Zacks Rank #3 and weak Style Scores argue for waiting for a more favorable valuation or clearer improvement in the stock's quantitative profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viavi Solutions ve 4. čtvrtletí zvýšila tržby o 52,5 % na 443,1 mil. USD díky poptávce po AI infrastruktuře a datových centrech. Non-GAAP provozní marže vzrostla na 24,0 % z 14,4 %.
Key Takeaways Viavi Solutions' Q4 revenues jumped 52.5% as AI, data centers, aerospace and defense drove demand.VIAV expects fiscal Q1 2027 revenues of $450-$460 million and non-GAAP EPS of 40-42 cents.Margins expanded sharply, while new AI testing platforms broaden Viavi's network validation capabilities. Viavi Solutions Inc. (VIAV - Free Report) is benefiting from rising AI infrastructure investment as demand for data center networking, testing and cybersecurity solutions drives growth. Fourth-quarter fiscal 2026 revenues rose 52.5% year over year to $443.1 million, while non-GAAP EPS reached 34 cents. Data center demand, aerospace and defense activity and contributions from acquired Spirent product lines supported the results.
VIAV's Q4 Results Confirm Strong AI ExposureNetwork and Service Enablement (NSE) revenues increased 69.2% year over year to $353.9 million. Growth was driven by demand for products serving the data center ecosystem, aerospace and defense demand and contributions from Spirent product lines. Management continues to cite AI infrastructure, high-performance computing, optical networking and hyperscale data centers as key demand drivers.
Viavi Solutions Guides for Another Strong QuarterViavi expects first-quarter fiscal 2027 revenues of $450-$460 million and non-GAAP EPS of 40-42 cents. NSE revenue is projected at $360-$368 million, while OSP revenue is expected at $90-$92 million.
The Zacks Consensus Estimate calls for fiscal 2027 revenues of $1.874 billion, up 23.5% from fiscal 2026, with EPS expected to rise to $1.22 from $1.
VIAV's Margins Expand on Scale and MixFourth-quarter non-GAAP operating margin increased to 24.0% from 14.4% a year earlier, a 960-basis-point expansion. NSE operating margin reached 20.0%, up 1,540 basis points year over year.
Management expects consolidated non-GAAP operating margin of 27.1% in first-quarter fiscal 2027, including a 100-basis-point benefit from tariff refunds.
Viavi Solutions Adds New AI Testing CapabilitiesViavi launched its Ultra Ethernet Transport validation platform in June 2026 to support next-generation AI networks. In May, it introduced the CyberFlood CF1000, a 400G security and application performance testing platform designed for AI data center infrastructure.
The launches expand Viavi's capabilities in AI network validation, encrypted traffic testing and cybersecurity while complementing the acquired Spirent portfolio. Their contribution will depend on customer adoption and execution.
VIAV's Rank Supports a Balanced Event ViewVIAV carries a Zacks Rank #3 (Hold), with a Value Score of D, Growth Score of D, Momentum Score of D and VGM Score of F. The Zacks Style Scores complement the Zacks Rank by evaluating value, growth and momentum characteristics.
Viavi's AI exposure and margin expansion support the growth case, although its Zacks Rank #3 and weak Style Scores warrant caution. Within the same industry, Knowles Corporation (KN - Free Report) has an Outperform recommendation, while ADTRAN Holdings, Inc. (ADTN - Free Report) carries an Underperform recommendation, offering some context on the differing outlooks across peers.
Viavi's AI exposure and margin expansion support the growth case, but the Zacks Rank #3 and weak Style Scores provide a cautionary counterweight to the strong quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Calix rozšiřuje platformu One o řešení pro monitoring sítě, které má energetickým družstvům a utility providerům pomoci bezpečně sledovat kritickou infrastrukturu přes optickou síť. Součástí je nový GigaPro GPR1011XH ONT a šifrování AES.
Advancing and facilitating trusted partnerships with 100+ electric cooperatives and utility providers, Calix introduces secure grid monitoring capabilities—supported by the newly launched GigaPro ONT—to improve the reliability and resiliency of communications infrastructure while protecting critical assets
SAN JOSE, Calif.--(BUSINESS WIRE)--Calix, Inc. (NYSE: CALX) today announced a grid monitoring solution on the AI-native Calix One™ platform. Extending platform capabilities to utility providers, the solution combines the newly launched GigaPro® GPR1011XH optical network terminal (ONT), AXOS®-powered E-Series access appliances, and network operations tools on a standards-based passive optical network (PON) architecture. Building on insights from utility industry leaders Conexon and Irby Utilities, Calix is expanding trusted partnerships with more than 100 electric cooperatives, municipalities, and utility providers through grid monitoring capabilities that enable secure, cost-effective management of critical grid assets over resilient, intelligent communications infrastructure.
“By leveraging the Calix One platform, now enhanced with its grid monitoring solution, providers can leverage fiber infrastructure to modernize critical communications,” said Patrick Reams, vice president of technology and communications at Irby Utilities.
Share As utilities invest billions to modernize the electric grid, mission-critical grid operations increasingly depend on highly resilient, reliable communications networks as much as power infrastructure. Electric cooperatives, which own and maintain nearly 42 percent of U.S. electric distribution lines, are at the center of this transformation. Drawing on decades of experience helping electric cooperatives operate and scale their broadband networks, Calix has enabled exceptional business outcomes, including reducing OSS/BSS integration from 18 months to just 10 weeks, turning up subscribers 83 percent faster, reducing mean time to repair 75 percent, and lowering operating costs up to 50 percent.
Providers can now expand their Calix partnerships and better serve their utility markets with a solution that delivers:
A purpose-built ONT appliance for utility environments. The compact, hardened GigaPro GPR1011XH fits into existing field cabinets for indoor and outdoor deployments, enabling utility providers to deploy reliable, low-latency fiber communications deeper into their network while avoiding costly upgrades. Secure, modernized utility communications networks. The GigaPro ONT is DC-powered and attaches to XGS-PON to deliver 10GE LAN connectivity, helping utility providers replace fragmented legacy architectures with a scalable, secure fiber-based solution that provides integrated Advanced Encryption Standard (AES) data encryption. Centralized operations across distributed infrastructure. The Calix One platform will deliver agentic capabilities for utilities to increase visibility of grid assets and communications networks, helping them proactively monitor, manage, and troubleshoot critical infrastructure. Greater value from existing fiber investments. Ecosystem integrations with partners like Conexon and Irby Utilities extend grid monitoring capabilities over existing fiber infrastructure—reducing deployment complexity and accelerating modernization initiatives. Flexible deployment options for utility providers. Calix E-series access appliances—powered by AXOS—extend secure, reliable, fiber-based connectivity to substations, remote sites, and other critical infrastructure locations, supporting a scalable foundation for grid modernization. Carl Meyerhoefer, senior vice president of business development at Conexon, said: “We built our fiber network to provide every electric cooperative partner with a fiber foundation for smart grid connectivity—enabling both grid monitoring and broader modernization initiatives. Many early adopters are already putting these capabilities to work. With the new GigaPro ONT appliance, Calix is delivering a purpose-built solution that will help our member cooperatives accelerate deployment and expand the value of smart grid and electric membership cooperative services across their networks.”
Patrick Reams, vice president of technology and communications at Irby Utilities, said: “Working with utility providers across the country, we see firsthand how rapidly communications requirements are changing as grid modernization initiatives accelerate. Electric cooperatives and utility providers are looking for secure, resilient networks that can support future innovations—including real-time HD video surveillance. By leveraging the Calix One platform, now enhanced with its grid monitoring solution, providers can leverage fiber infrastructure to modernize critical communications, improve operational visibility, simplify operations, and establish a long-term foundation for grid transformation.”
Shane Eleniak, chief product officer at Calix, said: “The future of the grid depends on the same element that transformed rural communities: trusted communications infrastructure. Drawing on our longstanding partnerships with fiber providers, many of which stretch back decades, we are excited to extend the Calix One platform to connect grid monitoring appliances to utility network operations centers. As communications and energy converge, providers now have a single, intelligent, and secure platform that helps them operate critical infrastructure, automate work with AI, and deliver differentiated experiences that strengthen the communities they serve.”
Learn how Calix is enabling utility providers to modernize grid communications with secure, scalable fiber infrastructure.
About Calix
Calix, Inc. (NYSE: CALX) is an AI platform company that enables service providers to transform their operations and accelerate delivery of differentiated experiences—so they can compete and win in the markets and communities they serve.
Through the AI-native Calix One platform, service providers can securely and privately activate agentic AI alongside their human teams to acquire new subscribers, grow existing subscriber revenue, and build loyalty across residential, business, municipal, and MDU markets. More than 1,200 customers of all sizes leverage the Calix One platform, which has evolved over 15 years at an investment of more than $2 billion.
Calix innovation cycles are underpinned by a strong financial balance sheet and a people‑first culture that routinely earns broad industry recognition—winning 81 culture and innovation awards since 2025 alone, as well as Fortune’s 100 Best Companies to Work For® in 2026.
This press release contains forward-looking statements that are based upon management’s current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release, and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release, except as required by law. Actual results and the timing of events could differ materially from current expectations based on risks and uncertainties affecting Calix’s business. The reader is cautioned not to rely on the forward-looking statements contained in this press release. Additional information on potential factors that could affect Calix’s results and other risks and uncertainties are detailed in its quarterly reports on Form 10-Q and Annual Report on Form 10-K filed with the SEC and available at www.sec.gov.
Calix and the Calix logo are trademarks or registered trademarks of Calix and/or its affiliates in the U.S. and other countries. A listing of Calix’s trademarks can be found at https://www.calix.com/legal/trademarks.html. Third-party trademarks mentioned are the property of their respective owners.
Vulcan Materials ve 2. čtvrtletí překonal odhady díky EPS 2,59 USD a tržbám 2,16 miliardy USD. Zároveň potvrdil výhled upraveného EBITDA na rok 2026 na 2,4–2,6 miliardy USD navzdory vyšším nákladům na energii.
Key Takeaways Vulcan's Q2 adjusted EPS beat estimates as aggregates shipments rose 1% and pricing improved 5%.VMC maintained its $2.4-$2.6B 2026 EBITDA outlook despite almost $40M of energy inflation.Public infrastructure and large projects support demand, but weather and diesel costs remain headwinds. Vulcan Materials Company (VMC - Free Report) reported second-quarter adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.50 by 3.6%. Revenues rose 2.5% year over year to $2.16 billion and edged past the consensus mark.
Management also maintained its 2026 adjusted EBITDA outlook of $2.4-$2.6 billion despite weather disruption and almost $40 million of energy-related inflation.
VMC's Q2 Beat Shows Resilient Aggregates EconomicsAggregates remained Vulcan's main earnings engine. Segment sales increased 6.9% year over year to $1.76 billion, while gross profit rose to $567.3 million from $559.5 million.
Shipments increased 1% to 59.9 million tons. Cash gross profit per ton advanced to $12.02 from $11.88, showing that pricing and operating execution supported unit profitability despite higher costs.
VMC Pricing Helps Absorb Energy InflationMix-adjusted aggregate pricing increased 5% in the second quarter, while freight-adjusted unit cash cost of sales rose 7%. Higher diesel prices were the primary source of the increase.
Management cited a $26 million diesel headwind and almost $40 million of total energy-related inflation. Excluding diesel, aggregate unit cash cost increased 3%.
Vulcan Holds Its 2026 EBITDA OutlookVulcan reaffirmed full-year adjusted EBITDA guidance of $2.4-$2.6 billion even though second-quarter adjusted EBITDA slipped 0.9% year over year to $654 million.
Management continues to target 4%-6% aggregate price growth for 2026 and expects pricing to finish near the high end of that range. Cost growth is expected to decelerate later in the year.
Vulcan's Backlog Supports Second-Half DemandPublic construction and large projects remain key volume supports. Trailing 12-month highway awards in Vulcan markets were up double digits, while other public infrastructure awards increased 20%. Roughly 60% of Infrastructure Investment and Jobs Act funds still need to be spent.
The demand pattern extends across peers. Martin Marietta Materials, Inc. (MLM - Free Report) reported 2.3% organic aggregate shipment growth in the second quarter, driven by infrastructure and heavy nonresidential demand. CRH plc (CRH - Free Report) cited favorable underlying demand and continued data-center, water and energy infrastructure activity.
VMC Still Faces Weather and Margin Timing RisksHeavy rainfall in Texas and parts of the Southeast constrained second-quarter shipments, particularly in May and June. Management said unusual weather continued into July.
Diesel prices are expected to remain near second-quarter levels in the second half. Vulcan expects pricing to accelerate and costs to decelerate, but third-quarter gross margins may remain below the prior-year level before improving in the fourth quarter.
Vulcan's Portfolio Moves Keep Aggregates CentralVulcan sold its California ready-mixed concrete operations and its aggregates and ready-mixed concrete operations in the U.S. Virgin Islands for combined proceeds of $722.1 million.
The company also acquired a southern Colorado quarry and a Dallas-Fort Worth rail yard from Brannan Sand & Gravel for $75 million. Management expects additional aggregates-focused transactions to close in the second half of 2026.
VMC's Ratings Keep the Earnings Beat in PerspectiveThe quarter reinforces Vulcan's ability to protect aggregates unit profitability while maintaining its full-year outlook. Energy costs and weather still create near-term uncertainty, while a 27.9X forward 12-month earnings multiple leaves valuation as another consideration.
VMC currently carries a Zacks Rank #3 (Hold), a VGM Score of D and a Value Score of D. Its Growth Score of C and Momentum Score of C are midrange readings. The Rank supports a measured near-term stance, while the Style Scores do not provide the stronger confirmation associated with A or B grades. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vulcan Materials ve 2. čtvrtletí zvýšila mix-adjusted ceny kameniva o 5 % a hotovostní hrubý zisk na tunu na 12,02 USD. Poptávku táhly veřejná infrastruktura a datová centra, ale valuace zůstává prémiová.
Key Takeaways Vulcan's mix-adjusted aggregates pricing rose 5%, lifting cash gross profit per ton to $12.02.VMC sees public infrastructure and data center projects supporting demand despite weak housing activity.Vulcan faces diesel inflation, weather disruptions and a premium valuation that raises the execution hurdle.
Vulcan Materials Company (VMC - Free Report) continues to improve aggregates unit economics. Second-quarter pricing rose, cash gross profit per ton increased and public infrastructure plus large private projects supported demand despite elevated diesel costs.
The investor question is whether that execution offsets a premium valuation. Residential weakness, weather disruption and energy inflation keep the near-term setup mixed, even as management expects pricing and cost trends to improve.
VMC Pricing Keeps Unit Profitability Moving HigherMix-adjusted aggregates pricing increased 5% in the second quarter, while cash gross profit per ton rose to $12.02 from $11.88. Unit cash costs increased 7%, with diesel a major contributor.
Vulcan targets 4-6% aggregate price growth for 2026 and expects to finish near the high end of the range. Management also expects cost growth to decelerate, supporting further unit-profitability gains.
Vulcan's Public Backlog Supports Volume VisibilityAggregates shipments increased 1% in the second quarter and 3% in the first half despite disruptive weather. Trailing 12-month highway awards in Vulcan markets remained up double digits, while other public infrastructure awards increased 20%.
Management expects work already in the pipeline to support public shipments for several years. That visibility is meaningful because publicly funded construction has historically represented about 40-55% of aggregates shipments. Martin Marietta Materials, Inc. (MLM - Free Report) , another U.S. aggregates supplier, said its second-quarter organic shipment growth was driven by infrastructure and heavy nonresidential demand.
VMC's Large Projects Broaden Private DemandData centers remain the leading private non-residential catalyst. Power generation, transmission, liquefied natural gas and manufacturing projects are appearing in quoting and booking activity, while warehouse activity remains broadly flat.
Lighter construction tied to housing remains weak. CRH plc (CRH - Free Report) agreed in June to acquire Arcosa, a deal CRH said would reinforce its U.S. aggregates position and infrastructure exposure.
Vulcan's Premium Valuation Raises the HurdleVMC trades at a forward 12-month price-to-earnings ratio of 27.86, compared with 20.91 for its Zacks sub-industry, 20.28 for the Zacks sector and 20.69 for the S&P 500.
The ratio is slightly below Vulcan's five-year median of 28.68, so it is not unusually high by the company's history. Still, the premium to broader benchmarks raises the execution hurdle.
VMC Still Faces Housing, Weather and Energy RisksSingle-family and broader residential construction remain weak because of affordability constraints. Weather also can disrupt quarry production, transportation and customer schedules, creating uneven shipment and margin comparisons.
Diesel produced a $26 million second-quarter headwind, part of almost $40 million of energy-related inflation. Management said third-quarter gross margins may remain below the prior-year level before improving in the fourth quarter.
Vulcan's Balance Sheet Preserves Strategic FlexibilityTotal debt to trailing-12-month adjusted EBITDA stood at 1.9 times, below management's 2-2.5-times target range. Vulcan also had $1.58 billion of available capacity under its unsecured credit line.
That flexibility supports aggregates-focused acquisitions, internal investment and shareholder returns without requiring a more aggressive leverage profile. The acquisition pipeline remains active as Vulcan balances reinvestment with capital returns.
VMC's Mixed Scores Support a Patient StanceVMC's operating fundamentals remain constructive, but the valuation and near-term risks favor patience over urgency. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VMC has a Value Score of D and a VGM Score of D, alongside a Growth Score of C and a Momentum Score of C. Since higher Style Score grades are more favorable, these readings do not strengthen an aggressive buy case.
Key Takeaways LSTR raised its quarterly dividend to 44 cents per share, payable on Sept. 9 to shareholders as of Aug. 18.LSTR's efforts to develop its heavy haul services and cross-border transportation with Mexico are commendable.Dividend-paying stocks are less susceptible to market swings and act as a hedge against economic uncertainty. Last month (concurrent with its second-quarter 2026 earnings release), Landstar System, Inc. (LSTR - Free Report) stated that its board of directors had announced an increase in its quarterly dividend payout, reflectingthe company’s commitment to boosting shareholder value, apart from underlining confidence in its business.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario.
Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell Landstar stock now? A more in-depth analysis is needed to make that determination. Before diving into Landstar’s investment prospects, let’s take a glance at its financial numbers.
Landstar’s Recent Dividend Increase of 10%In a shareholder-friendly move, Landstar’s board of directors approved a dividend hike of 10%, thereby raising its quarterly cash dividend to 44 cents per share ($1.76 annualized) from 40 cents ($1.60 annualized). The raised dividend will be paid on Sept. 9, 2026, to shareholders of record at the close of business on Aug. 18. The move reflects LSTR’s intention to utilize free cash to enhance its shareholders’ returns.
Landstar did not purchase shares in the second quarter of 2026. However, during the first half of 2026, Landstar purchased 150,923 shares of its common stock for $22.6 million. The company is currently authorized to purchase up to an additional 1,115,195 shares under its longstanding share purchase program.
Overall, Landstar returned nearly $120 million to shareholders through dividends ($95.3 million) and share repurchases ($24.1 million) during the first half of 2026.
Landstar’s bottom line has been benefiting from its consistent efforts to reward its shareholders through dividends and share buybacks. As a reflection of its shareholder-friendly stance, in 2022, 2023, 2024 and 2025, LSTR paid dividends of $115.6 million, $117.1 million, $120.5 million and $124.7 million, respectively. Dividend-paying stocks like LSTR are generally safe bets for creating wealth, as these payouts act as a hedge against economic uncertainty, which characterizes current times.
Landstar is also active on the buyback front. LSTR repurchased shares worth $285.9 million in 2022, $53.9 million in 2023, $81.4 million in 2024 and $179.8 million in 2025. During the first quarter of 2026, Landstar purchased 150,923 shares for $22.6 million. Landstar is currently authorized to purchase up to an additional 1,115,195 shares under its longstanding share purchase program. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock.
Apart from being shareholder-friendly, Landstar's efforts to develop its heavy haul services in addition to the cross-border transportation with Mexico are commendable. Cross-border transportation offers significant growth opportunities to LSTR as companies are increasingly sourcing products from Mexico because it moves production lines close to the United States, not only saving production costs but also making the supply chain more secure. Development of the company's heavy haul services should also boost profitability. By bolstering its heavy haul capabilities, LSTR will be able to deliver goods between different sectors (mining, construction and manufacturing) that need transportation of large machinery and equipment.
Landstar’s strong balance sheet increases financial flexibility. The company ended first-quarter 2026 with cash and cash equivalents (and short-term investments) of $353.25 million, much higher than the current debt level of $26.1 million. This implies that the company has sufficient cash to meet its current debt obligations. Meanwhile, long-term debt has decreased to $43.14 million at the end of first-quarter 2026 from $48.5 million at fourth-quarter 2025-end.
What Do Earnings Estimates Say for Landstar?The positive sentiment surrounding Landstar stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and fourth-quarter 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected northward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Image Source: Zacks Investment Research
LSTR Stock’s Price PerformanceShares of Landstar have gained 30.6% over the past six months, outperforming the transportation-truck industry’s 12.5% surge, as well as that of other industry players, J.B. Hunt Transport Services (JBHT - Free Report) and Werner Enterprises, Inc. (WERN - Free Report) within the same time frame.
LSTR Stock’s Six-month Price Comparison Image Source: Zacks Investment Research
Attractive Valuation Picture for Landstar StockLandstar looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), LSTR is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 1.09X compared with 2.46X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive.
LSTR P/S Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research
Time to Buy LSTR StockApart from being attractively valued, Landstar's efforts to develop its heavy haul services are commendable and should boost profitability. Cross-border transportation with Mexico also offers significant growth opportunities. A solid balance sheet allows the company to continue paying dividends and buying back shares, reflecting its pro-shareholder stance.
We believe that the positives surrounding the stock (as highlighted through the write-up) outweigh the concerns regarding reduced demand for freight services and increased truck capacity, low shipment volumes and rates due to demand weakness and driver shortage issues. We, therefore, suggest investors should add LSTR stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HubSpot ve 2. čtvrtletí zvýšil tržby o 20 % na 911,7 milionu USD a non-GAAP EPS o 49 % na 3,26 USD. Firma ale čeká pomalejší přibývání zákazníků a tlak na upgrade sazby v roce 2026.
Key Takeaways HubSpot delivered 20% revenue growth as customers rose 14% and non-GAAP EPS jumped 49%.Enterprise deals above $120,000 in ARR grew 38%, while multi-hub adoption also advanced.AI usage surged, but HubSpot expects slower customer additions and pressured upgrade rates in 2026.
HubSpot, Inc. (HUBS - Free Report) has come under pressure even as its second-quarter results showed continued revenue growth, customer expansion and rising AI adoption. The stock’s decline puts greater focus on whether the company can convert its AI investments and enterprise momentum into durable growth.
The near-term picture is less clear. Management expects slower customer additions, pressure on net upgrade rates and longer buying cycles through the rest of 2026, while pricing changes are designed to lower barriers to AI adoption.
HUBS Faces Slower Buying DecisionsHubSpot said larger buying committees, more C-suite and Board approvals and longer sales cycles weighed on second-quarter demand. Customers are also optimizing budgets as they assess the cost and value of AI, increasing downgrade pressure and limiting near-term visibility.
Management expects net upgrade rates to remain pressured in the second half of 2026 because of customer budget optimization. It also expects net new annual recurring revenue growth to trail constant-currency revenue growth for the year. These trends could temper the pace of expansion even as the company continues investing in AI.
HubSpot Still Delivers Strong GrowthHubSpot reported second-quarter revenue of $911.7 million, up 20% year over year, while subscription revenue rose 20%. Non-GAAP operating income increased 44% to $185.3 million, and non-GAAP earnings reached $3.26 per share, up 49% year over year.
The customer base reached 306,446, up 14% year over year, while average subscription revenue per customer rose 4% to $11,800. HubSpot also generated $222.8 million in operating cash flow and $167.9 million in non-GAAP free cash flow, giving it room to fund product development and capital returns.
HUBS Builds Its Enterprise OpportunityEnterprise adoption remains a key part of the longer-term growth case. Deals above $120,000 in annual recurring revenue increased 38% year over year in the second quarter, showing continued demand from larger customers for a unified AI-powered customer platform.
Multi-hub adoption also advanced. About 64% of new Pro+ customers landed with multiple hubs, up 3 percentage points year over year. Salesforce, Inc. (CRM - Free Report) is similarly emphasizing agentic capabilities across its enterprise customer platform, underscoring the broader shift toward AI-enabled software consolidation.
HubSpot Expands AI MonetizationAI usage continued to build despite the pricing transition. Data Agent had more than 16,000 activated customers, up 80% sequentially, while Prospecting Agent had almost 17,000 and Customer Agent exceeded 10,000. In addition, 32% of Marketing Hub Pro+ customers activated AEO, and nearly 16,000 customers started a standalone AEO trial.
The key question is whether adoption becomes recurring revenue. HubSpot said credit consumption grew in the second quarter despite pricing changes, while management expects AI seats and credit usage to become incremental long-term revenue drivers. Microsoft Corporation (MSFT - Free Report) is also scaling AI through its cloud and productivity businesses, illustrating the broader industry focus on turning AI usage into monetized products.
HUBS Rank Signals a Mixed SetupHubSpot currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The Rank reflects the near-term balance between growth opportunities and pressure on customer buying behavior. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score framework treats Style Scores as complements to the Zacks Rank. The A Growth Score reflects favorable growth characteristics, while the A Momentum Score points to favorable price-timing characteristics under the methodology. The C Value Score indicates weaker value characteristics, and the A VGM Score reflects the combined value, growth and momentum profile. With a #3 Rank, the overall setup remains mixed rather than a clear signal that the decline alone changes the investment case.
Nebius uvedl, že první aukce kapacity pro AI dosáhla ceny o 15 % vyšší než dosavadní maximum. Firma to bere jako signál silné poptávky po GPU Blackwell.
• Nebius Group stock is showing weakness. Why is NBIS stock retreating?
While one auction does not establish a long-term pricing trend, the results suggest premium AI computing capacity remains scarce enough for customers to accept substantially higher prices.
AI Compute Pricing Surpasses Nebius’ Previous HighUnlike traditional cloud services, where providers publish fixed prices, Nebius experimented with letting customers compete for a limited pool of AI computing capacity.
Founder and CEO Arkady Volozh said the company’s first attempt exceeded expectations.
“This quarter we launched our first capacity auction. It was very successful and cleared at the highest price we have seen for the Blackwell generation of chips, 15% above the highest price we ever charged before.”
The significance extends beyond the 15% figure itself. Rather than simply announcing a price increase, the auction allowed Nebius to measure customers’ willingness to pay for one of the industry’s most sought-after AI resources — access to Nvidia’s latest Blackwell GPUs.
The outcome suggests demand remains sufficiently strong for customers to pay materially more than Nebius had previously charged.
Nebius Sees the Auction as a Pricing SignalManagement indicated the auction was not merely a one-off sales exercise, but a way to better understand the market.
As Volozh explained, “This gives us a strong signal on the value of this capacity in the market in real time.”
That distinction is important. The auction does not mean all of Nebius’ contracts will immediately be repriced, nor does it guarantee higher profit margins. It does, however, provide evidence that customers are willing to pay more for scarce AI computing capacity than the company’s previous pricing suggested.
For investors, that could prove meaningful. If Nebius incorporates those market signals into future contracts as additional capacity comes online, higher realized prices could support stronger revenue generation from the same underlying infrastructure.
Pricing Power Could Shape the Next Phase of AI InfrastructureThe AI infrastructure race has so far been dominated by discussions around GPUs, data centers and capital expenditure. Nebius’ earnings suggest pricing may become an equally important differentiator.
Companies that can consistently demonstrate pricing power stand to generate more revenue from each unit of computing capacity without necessarily expanding infrastructure at the same pace. While it remains too early to conclude that Nebius has established a lasting pricing advantage, its first capacity auction indicates customers continue to place a premium on access to cutting-edge AI hardware.
If that dynamic persists, investors may begin evaluating AI infrastructure providers not only on how much capacity they build, but also on how effectively they monetize it.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Rigetti Computing má tržní valuaci kolem 5,9 miliardy USD, ale za posledních 12 měsíců utržila jen 13,4 milionu USD a vykázala čistou ztrátu asi 239 milionů USD. Firma má v hotovosti a investicích 541 milionů USD.
Rigetti Computing (RGTI +1.47%) is valued at about $5.9 billion as of this writing. The revenue behind that price: $13.4 million over the past 12 months, alongside a net loss of about $239 million.
The gap tells you what buyers of the quantum computing specialist's stock are actually purchasing. It isn't today's business. Even at 30 times sales, a multiple reserved for the fastest-growing software companies, Rigetti's price implies about $200 million of annual revenue -- about 15 times what it booked over the past year.
So what has the company committed to, and when?
Image source: Motley Fool.
The disclosures and their dates
Rigetti's second-quarter report last week showed fast growth on a tiny base. Revenue nearly tripled year over year to $5.1 million (a base small enough that a single system sale can swing the rate), while the operating loss came in at $28.1 million.
The balance sheet is the sturdiest part of the story. Rigetti held $541 million in cash and investments at quarter's end, enough to fund years of losses at the current pace.
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The technology is making measurable progress. The company's flagship system, Cepheus-1-108Q, carries 108 qubits and currently runs at about 99.1% median two-qubit gate fidelity. Fidelity measures how often a quantum operation runs without error, and it is arguably the main thing standing between today's machines and commercially useful ones. Rigetti also holds a recently announced letter of intent with the U.S. Department of Commerce for up to $100 million in potential funding, which the company says could help it accelerate its superconducting quantum computing work.
A fidelity milestone, though, is an engineering achievement, and a letter of intent is potential funding. Neither puts commercial revenue anywhere near $200 million on a calendar.
Quantum computing could well produce that business eventually, and Rigetti's cash gives it years to try. But the company's own updates describe a research-stage operation on a research-stage timeline. What the $5.9 billion pays for comes after that, and none of the disclosures says when.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Akcie Cisco i přes rekordní tržby 17,3 miliardy USD, rekordní upravený zisk 1,22 USD na akcii a asi 4 miliardy USD v AI objednávkách klesly o 9 %. Důvodem byly nižší hrubé marže kvůli dražším paměťovým čipům.
Record revenue, record earnings, $4 billion in AI orders, and the stock fell 9%. Cisco Systems (CSCO -9.39%) had quite a morning.
The result is a split morning session on Wall Street. The Nasdaq Composite (^IXIC +0.81%) index gained 0.53% as of 12:32 p.m. ET and the S&P 500 (^GSPC +0.62%) is up by 0.41%, while the Dow Jones Industrial Average (^DJI +0.07%) is down 0.17%. All three looked much better two hours earlier, peaking around 10:30 a.m. ET with the Nasdaq flirting with a 1% jump.
^IXIC data by YCharts
What's driving the gap between the Dow and the Nasdaq
Let's start with Cisco. The network gear veteran fell 9.3% despite reporting record fourth-quarter revenue of $17.3 billion, up 18% year over year, and record adjusted earnings of $1.22 per share. The company also saw roughly $4 billion in quarterly AI orders from hyperscale customers. But Cisco's gross margins shrank due to soaring memory costs and a less lucrative hardware sales mix. As a result, Cisco subtracted about 68 points from the Dow and roughly $41 billion in market value.
You've heard the "expensive memory chips" story before, and those chipmakers benefit from Cisco's margin issues. SK Hynix (SKHY +8.04%) rose 7.8%, adding about $95 billion in market value and 0.17 percentage points to the Nasdaq Composite, the largest single contribution to that index. On top of Cisco's market signals, the Korean government is spending billions on the local chip-making infrastructure, sending both Hynix and Samsung (SSNLF +0.00%) stocks skyward today.
Image source: Getty Images.
Micron Technology (MU +6.11%) gained 5.1% and SanDisk (SNDK +15.55%) surged 13.5% with an ambitious investor day presentation, reversing part of a brutal slide that had cut the stock in half from its June high.
Memory makers get to charge more; everybody buying those chips gets to pay more. Cisco is simply one of the first big companies to show the memory bill in an earnings report.
The Dow found a rescuer in Goldman Sachs (GS +0.95%), up 1.1% for about 68 points, which almost precisely offsets Cisco's damage. The financial giant announced a fairly small buyout in the options-based income space yesterday. Today, investors are embracing the unexpected deal after sleeping on it.
Space Exploration Technologies (SPCX -2.56%) fell 3.4%, giving back part of Wednesday's gain and subtracting 0.12 percentage points from the Nasdaq. On the macro side, July producer prices were unchanged for the month, with core PPI up 0.2%.
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The real costs of a chip shortage
The Cisco story deserves more attention than Thursday's macro data. A company can post record revenue, record earnings, and $4 billion in AI orders and still fall 9%. Not because the stock was expensive before this report, but because component costs are rising faster than the revenue line.
Chip shortages are usually covered as good news, because the companies making the chips are the ones giving interviews about them. As a longtime Micron shareholder, I appreciate the wealth-building power of the AI-driven chip shortage. Buyers may raise concerns about component costs in advance, but Wall Street won't listen until margins are shrinking.
There will be more of those bellwether reports, and knowing which side of that trade a company sits on is worth more than knowing what the Dow did on a rather ordinary Thursday.
Celestica těží ze silné poptávky po 800G přepínačích; tržby segmentu Communications ve 2. čtvrtletí vzrostly o 62 %. Přechod na 1.6T má začít v masové výrobě ve 3. čtvrtletí 2026.
Key Takeaways Celestica is seeing strong demand for 800G switches as hyperscalers upgrade their networks.Arista is expanding its AI networking portfolio as workloads become larger and more distributed.Both companies are broadening their portfolio offerings tied to the AI infrastructure market.
The rapid expansion of AI infrastructure has created a strong opportunity for the companies that supply computing and networking systems required to develop AI models. Arista Networks, Inc. (ANET - Free Report) offers Ethernet switches, routing platforms and EOS software engineered for high bandwidth, low latency and traffic-management requirements of AI data centers. Celestica, Inc. (CLS - Free Report) focuses on providing design, engineering, manufacturing and systems capabilities for AI infrastructure.
Per a report from Precedence Research, the AI infrastructure market, which was valued at $72.2 billion in 2025, is projected to reach $518.26 billion by 2035 with a market CAGR of 21.82%. Celestica and Arista operate in different domains of the broader AI infrastructure space. Let’s delve deeper to analyze which company is better positioned to capitalize on this emerging market trend.
The Case for AristaAI workloads are placing substantially greater demands on data-center networks. As clusters become larger, moving data efficiently between accelerators becomes increasingly important. This ensures efficient overall system resource utilization. Owing to this, higher-speed Ethernet standards such as 800G have become a critical component in next-generation AI infrastructure.
Moreover, growth opportunity is not limited to moving data in a single AI cluster. AI infrastructure is becoming increasingly distributed due to constraints related to power and physical capacity. This is creating strong demand for networking equipment capable of moving vast data volumes across the distributed data center network. Arista, with its comprehensive portfolio of AI networking solutions, is benefiting from this trend. The company has expanded its Etherlink AI-fabric customer base to more than 100 cumulative customers, compared with only four to five customers in 2024.
The company now offers switching platforms spanning traditional Ethernet deployments through emerging 1.6-terabit AI fabrics while expanding liquid-cooled networking solutions for next-generation data centers. Arista expands its software platform beyond cloud data centers through automation, campus networking, routing and AI networking capabilities. The company's unified EOS architecture enables programmable networking across client, campus, cloud and AI environments while supporting advanced routing, observability and operational automation.
To address the power, physical space and compute-related constraints, customers are looking to distribute AI workloads across campuses and data centers. Arista's 7800 platform is designed for these distributed environments, supporting traffic management, routing, security and load balancing across locations.
However, Arista faces strong competition from other major players in the industry such as Cisco Systems, Inc. (CSCO - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Cisco historically dominated networking and is rapidly expanding into the AI networking space. Cisco currently has $9.3 billion worth of AI infrastructure-related orders. The company continues to expand AI data center offerings, including Nexus innovations to capture greater market share.
HPE is benefiting from a robust demand environment for its edge-to-cloud platform, GreenLake, backed by growing digital transformation initiatives. With the acquisition of Juniper Networks, HPE has significantly strengthened its networking domain in AI, cloud and hybrid solutions. Rising competition can impact Arista’s growth prospects.
The Case for CelesticaCelestica is benefiting from the rapid upgrade of hyperscale data-center networks. Demand for its 800G Ethernet switches remains strong. The company’s Communications revenues grew 62% in the second quarter, primarily because of 800G switch programs. The transition to 1.6T networking is creating the next growth wave for the company. Celestica expects mass production of 1.6T programs with two hyperscalers to begin in the third quarter of 2026.
It is to be noted that a major distinction between Arista and Celestica is that Celestica's AI opportunity extends beyond networking. Celestica is seeing increasing demand for AI/ML compute infrastructure from hyperscalers. Enterprise revenues jumped 167% in the second quarter, driven primarily by the accelerated ramp of an AI/ML compute program.
Celestica’s partnership with OpenAI provides an important long-term growth opportunity. The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Advanced Micro Devices (AMD - Free Report) is expanding its AI infrastructure portfolio with the upcoming Helios platform to strengthen its position in the hyperscale AI market. Celestica is a key manufacturing and design partner in this initiative. Celestica is providing a scale-up networking switch that serves as the backbone of AMD’s Helios rack architecture. Management stated that the OpenAI and AMD collaborations can bring multi-billion-dollar opportunities in 2027.
Celestica’s diverse portfolio offering is a major advantage. The company is witnessing solid demand across its healthtech and industrial businesses. Stronger demand for wafer fabrication equipment is a positive.
How Do Zacks Estimates Compare for CLS & ANET?The Zacks Consensus Estimate for CLS’ full-year sales implies year-over-year growth of 64.27%, while that of EPS suggests growth of 78.51%. The EPS estimates have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ANET’s 2026 sales and EPS implies year-over-year growth of 37.66% and 35.57%, respectively. The EPS estimates have increased over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of CLS & ANETOver the past year, Celestica has gained 72.6%, while ANET has gained 54.2% over the same period.
Image Source: Zacks Investment Research
CLS looks more attractive than Arista from a valuation standpoint. Going by the price/earnings ratio, Celestica’s shares currently trade at 22.88 forward earnings, lower than 49.98 for Arista.
Image Source: Zacks Investment Research
CLS or ANET: Which is a Better Pick?
Celestica and Arista sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Celestica and Arista are expanding their portfolio offerings and placing strong focus on innovation to gain from the expanding AI market. Arista has already placed itself as a major provider of AI networking solutions. But its growth trajectory could be hindered by other strong players in the market. Consequently, Celestica plays a larger role in the AI infrastructure space. Its exposure spans 800G and 1.6T networking, AI/ML compute, custom racks and hyperscaler infrastructure. Celestica’s focus on product diversification and increasing its presence in high-value markets is positive. Owing to these factors and a better valuation, Celestica seems to be a better investment option at present.
Uber Japan spustí v Tokiu pilot robotaxi s Hinomaru Kotsu na konci roku 2026. Hinomaru Kotsu bude řídit provoz flotily, Uber zajistí párování jízd a provozní nástroje.
Key Takeaways Uber's Tokyo robotaxi pilot with Hinomaru Kotsu is scheduled to launch in late 2026.
Hinomaru Kotsu will manage fleet operations, while Uber provides ride matching and operational tools.
The pilot lets Uber test robotaxis in Tokyo and prepare for fully driverless services, subject to approval.
Uber Technologies (UBER - Free Report) announced that Uber Japan has entered into an operational partnership with taxi operator Hinomaru Kotsu Co., Ltd. Hinomaru Kotsu will manage daily fleet operations for Uber’s autonomous-vehicle pilot in Tokyo, which is scheduled to launch in late 2026. Its responsibilities will include depot management, vehicle cleaning, maintenance, inspections, charging and ensuring vehicle availability. Uber will make the rides accessible through its global ride-hailing app.
The initiative follows the robotaxi partnership Memorandum of Understanding signed on March 12, 2026, by Uber, Wayve and Nissan Motor. The pilot will use Nissan LEAF vehicles equipped with Wayve’s AI Driver technology, enabling riders to experience advanced robotaxi services as an everyday transportation option.
Japanese law requires authorized taxi companies to operate passenger transportation services. The initiative will comply fully with all domestic laws, regulations and licensing requirements. Uber will provide its ride-matching platform and operational support tools, while Hinomaru Kotsu will act as the authorized operator and manage the fleet.
Safety will remain the highest priority during the pilot’s initial phase. Experienced Hinomaru Kotsu drivers will sit behind the wheel as safety operators to monitor the vehicles and support reliable operations. This phased approach will precede any future introduction of fully driverless services, which will remain subject to regulatory approval.
If the partnership materializes as planned, Uber will benefit by expanding its autonomous-mobility presence in Japan without directly assuming the responsibilities reserved for licensed taxi operators. The arrangement will combine Uber’s customer reach, matching technology and operational tools with Hinomaru Kotsu’s local fleet expertise and regulatory authorization. This move will also allow Uber to test robotaxi operations in Tokyo’s complex driving environment, strengthen its collaboration with Nissan and Wayve, gather valuable operational experience and prepare for a potential transition to fully driverless services.
Taking a Look at Some Other AV Deals of UberIn June, Uber, in collaboration with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid.
The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office (“FEDRO”), pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.
Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion. In November 2024, WeRide obtained a driverless permit from FEDRO, allowing autonomous vehicle operations on public roads in Zurich’s Furttal region.
Earlier in the year, Uber entered into a strategic partnership with Amazon’s (AMZN - Free Report) Zoox to deploy its purpose-built robotaxis on the former’s platform. The Amazon unit’s robotaxis differ from many other autonomous vehicles currently in development because they are not modified versions of traditional passenger cars. Instead, the vehicles are purpose-built specifically for ride-hailing services and designed to enhance rider comfort and social interaction. The Amazon unit and Uber indicated that Zoox rides are expected to be available in Los Angeles next year.
UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have declined in single digits (% wise) so far this year. Due to the downbeat performance, UBER’s shares have underperformed the Zacks Internet-Services industry over the same time frame.
YTD Price ComparisonImage Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.41X. UBER is inexpensive compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Uber’s Zacks RankUber currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Berkshire Hathaway v 1. čtvrtletí ukončila 16 pozic a byla čistým kupcem akcií, což naznačuje další nové pozice pod Gregem Abelem. Nejvíc se čeká na možné změny u Constellation Brands a Jefferies Financial.
New Stock PositionsBerkshire Hathaway made major changes to their investment portfolio in Q1, the first without legendary investor Warren Buffett as CEO.
For the first time in a while, the conglomerate was a net buyer of equities, buying more than it sold. This signals that more new positions could be on the horizon.
The last three stocks bought, and first under Abel as CEO, covered airlines, tech and retail. Based on those purchases and Abel’s limited public buying history, it’s hard to determine which stocks or sectors the company looked at for the second quarter.
These are only loose predictions based on Abel’s recent buying history and investors will have to wait until Friday to find out if there are indeed new positions.
Exited PositionsBerkshire Hathaway exited 16 positions in Q1. While Q2 isn’t expected to bring another wave of major exits, Abel could still make significant adjustments to reshape the portfolio.
“Our investment in Kraft Heinz has been disappointing,” Abel previously said. “Even after considering the preferred equity component in our original Heinz investment, our return has been well short of adequate.”
Another position likely due for a complete exit is alcoholic beverage company Constellation Brands (NYSE:STZ). Abel cut the position by 95% in Q1, not leaving many shares left to sell.
Jefferies Financial (NYSE:JEF) was among the smallest positions in the first quarter and Abel could look to exit the small stake.
“Apple, American Express, Coca-Cola, and Moody’s — businesses we understand well, have a high regard for their leaders, and expect will compound over decades,” Abel previously wrote.
That leaves remaining holdings vulnerable to further cuts or full liquidations this quarter.
Changes to PortfolioIn Q1, Abel increased four stakes and reduced six. Multiple positions are likely to see activity in the second quarter as Abel reshapes the portfolio.
Outside of Apple, American Express, Coca-Cola, and Moody’s, all holdings are on watch for potential trims or exits.
Following recent additions, the Alphabet position has grown and is expected to rank among Berkshire’s top holdings by the end of Q2.
Bank of America (NYSE:BAC) has been a core holding for years, though the position was trimmed slightly in Q1. Given Abel’s exits across other financial stocks earlier this year, he could look to trim the Bank of America stake further.
Another position that could see a boost is The New York Times (NYSE:NYT). As one of the final buys initiated under Buffett, Abel may have taken advantage of Q2 stock pullbacks to build the position in honor of his mentor.
After 16 exits, two new additions, and several adjustments in the first quarter, Q2 may feature fewer moving pieces—offering a clearer picture of which sectors Abel favors for the long haul.
Image via Shutterstock
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Netflix ve 2. čtvrtletí zvýšil tržby na 12,6 miliardy USD, meziročně o 13 %, a výhled provozní marže pro rok 2026 zůstává na 31,5 %. Firma zároveň odkoupila rekordních 4,7 miliardy USD vlastních akcií.
Key Takeaways Netflix delivered $12.6B in Q2 revenues, up 13%, while 2026 margin guidance remains at 31.5%.Netflix generated $1.5B in Q2 free cash flow and repurchased a record $4.7B of stock.Advertising revenues are tracking toward 43B in 2026, while live sports and content extend into 2027.
Netflix (NFLX - Free Report) shares have plunged 20.9% year to date, a decline steep enough to test the patience of long-term holders. Shares of Netflix have underperformed the broader Zacks Consumer Discretionary sector's decline of 7.5%
Yet a close reading of the company's own second-quarter 2026 disclosures suggests the pullback has more to do with sentiment and rich starting valuation than with any breakdown in the underlying business.
Revenues, margins, cash generation and the forward content calendar all point in a steady, upward direction, which is why the more defensible near-term stance is to hold existing positions or wait for a better entry point rather than exit the name altogether
NFLX Underperforms Industry, Sector YTD
Image Source: Zacks Investment Research
Headwinds remain worth noting. Content amortization growth has pressured near-term margins, and competition for viewer attention from short-form video continues to intensify. Given this combination of accelerating ad monetization, a diversified and still-growing content and live-sports slate extending into 2027, and aggressive capital returns backed by strong free cash flow, the fundamental growth story remains largely intact even as the shares have underperformed year to date.
Fundamentals Still Support a Hold StanceThe first reason to stay invested is straightforward top-line durability. Netflix generated second-quarter revenues of $12.6 billion, up 13% year over year on a reported basis and 12% on an F/X-neutral basis, with double-digit growth recorded in every operating region.
For the full year, the company has narrowed its guidance to $51-$51.4 billion in revenues, implying 13-14% reported growth, alongside a maintained operating margin target of 31.5% for 2026 versus 29.5% in 2025. That margin trajectory implies operating income growth of more than 20% for the year, a rate that outpaces revenue growth and signals continued operating leverage rather than margin erosion.
Regional performance reinforces this picture. EMEA revenues surpassed the $4 billion quarterly mark for the first time, while LATAM and APAC each crossed $1.5 billion, with UCAN revenue growth of 10% reflecting only a partial-quarter impact from the latest U.S. price change.
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.59 per share. This indicates a 41.9% increase from the previous year.
The second reason is cash generation and capital discipline. Free cash flow came in at $1.5 billion for the quarter, and management continues to guide toward approximately $12.5 billion for full-year 2026. That cash flow has funded an aggressive buyback program. Netflix repurchased $4.7 billion of stock in the second quarter alone, its largest quarterly repurchase on record, after its board authorized an additional $25 billion in April on top of remaining prior capacity. The company still had $27.1 billion of buyback authorization left at quarter-end, a cushion that can support the share price through periods of multiple compression even if near-term sentiment stays soft.
The third reason is diversified monetization. Advertising revenues are tracking toward roughly $3 billion for 2026, about double the prior year, with U.S. upfront negotiations described as being in advanced stages as of the July letter. Engagement also remains constructive, with first-half 2026 view hours up 2% year over year despite competition from the Winter Olympics and the World Cup, and non-English-language content again driving more than a third of total viewing. Newer formats, including video podcasts, cloud TV games and creator partnerships, are still small in absolute terms but are scaling quickly and add optionality beyond the core subscription and advertising streams. Technology investment is compounding these efforts: GenAI workflows were used across roughly 300 titles in 2026 for production tasks such as complex visual sequences, while AI-powered planning and reporting tools are being extended to programmatic ad buyers, steps management frames as groundwork for the next phase of advertising growth.
Content Pipeline Extends Into 2026 and 2027Netflix's forward slate underpins these targets. The company has an expanded NFL agreement covering a week-one game, a Thanksgiving Eve matchup, a Christmas Gameday broadcast and a contest in first-quarter 2027, alongside the Tyson Fury versus Anthony Joshua fight and two Major League Baseball events this year. On the entertainment side, upcoming titles include The Whisper Man, The Last House, the final season of Outer Banks, Ryan Murphy's Monster: The Lizzie Borden Story, and international originals inlcuding South Korea's The East Palace, Poland's The Doll, Mexico's Lovesick, and the UK's The Gentlemen S2. Netflix is also premiering an exclusive extended look at Grand Theft Auto VI in August ahead of its industry launch, and recently signed a global streaming licensing agreement with AMC for the entire Walking Dead universe, broadening the near-term catalog while 2027 slate items continue to be layered in through ongoing local-language production deals.
Valuation and Competitive LandscapeFrom a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-sales ratio of 5.63X, notably higher than the Zacks Broadcast Radio and Television industry's 3.17X, and it carries a Value Score of D, signaling shares are pricier than industry peers relative to underlying sales growth trends.
NFLX’s Valuation
Image Source: Zacks Investment Research
Competition remains intense. Disney (DIS - Free Report) keeps expanding its streaming service alongside parks strength, Apple (AAPL - Free Report) funds original programming despite a smaller subscriber base, and Amazon (AMZN - Free Report) bundles Prime Video with its e-commerce ecosystem to retain viewers. Disney, Apple and Amazon all compete for the same premium content budgets and advertiser dollars Netflix is targeting. Even so, Netflix's global scale, ad-tier momentum and expanding live-sports rights give it a durable edge over rivals like Disney, Apple and Amazon that arguably justifies some premium, so investors may still prefer holding the stock or waiting for a better pullback entry point rather than chasing shares at current levels.
ConclusionWith revenue guidance intact, margin expansion on track, ads scaling toward $3 billion, and a content and live-sports calendar extending through 2027, Netflix's fundamentals remain sound despite the year-to-date decline. Investors already holding shares have reason to stay put, while those on the sidelines may find further weakness a more attractive entry point than chasing strength. NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix vzrostl ve čtvrtek o více než 4 % poté, co Bill Ackman prostřednictvím Pershing Square oznámil nový 4,9% podíl. Fond věří v dlouhodobý růst firmy.
Netflix NFLX stock rose more than 4% on Thursday after billionaire investor Bill Ackman's Pershing Square Capital Management disclosed a new stake in the streaming giant, marking a return to the company more than four years after exiting its previous investment at a loss.
In its second-quarter shareholder letter, Pershing Square revealed it had acquired a 4.9% portfolio stake in Netflix.
The hedge fund, known for running a concentrated portfolio of fewer than a dozen holdings, said it believes the streaming company is well-positioned for long-term growth despite the stock's sharp decline from last year's peak.
The renewed investment comes as Netflix continues expanding its advertising business and live sports offerings while investors reassess the company's valuation following a prolonged share-price correction.
Pershing Square said its investment thesis has changed significantly since it exited Netflix in early 2022 after losing more than $400 million on the position.
"When we first invested in early 2022, investors feared an escalating content arms race among a crowded field of streaming entrants," Bill Ackman and Pershing Square Chief Investment Officer Ryan Israel wrote in the shareholder letter.
The executives argued that those concerns have largely faded, adding that "Netflix has since effectively won the streaming wars."
They pointed to the company's dominant subscriber base, saying its scale has become self-reinforcing and allows Netflix to outspend rivals on content while converting roughly 90% of its earnings into free cash flow.
Pershing also said it expects Netflix "to compound revenue at a double-digit growth rate, with content costs growing more slowly than revenue, driving continued margin expansion," while describing the stock's valuation as "a substantial discount" and "highly attractive in terms of business quality and prospective earnings growth."
Pershing's renewed confidence comes as Netflix continues adding new revenue streams beyond its traditional subscription business.
The company has expanded into live sporting events to attract additional viewers while growing its lower-priced, ad-supported subscription tier.
According to the reports, Netflix expects its advertising business to generate approximately $3 billion in revenue this year, while its 2026 US Upfront advertising commitments have nearly doubled from a year earlier.
Pershing also argued that concerns over competition from short-form video platforms have proven overstated.
The firm believes Netflix has sufficient financial resources to absorb higher computing costs associated with artificial intelligence and expects AI to improve both content recommendations and advertising targeting over time.
Netflix shares remain well below their previous highs after concerns surrounding engagement, failed acquisition rumors, and the company's abandoned attempt to acquire Warner Bros. Discovery weighed on investor sentiment.
The stock has fallen roughly 42% from last year's peak and was trading at around 24 times earnings, well below its three-year average valuation multiple of 43.
Pershing said the broader market's focus on artificial intelligence infrastructure investments has created opportunities in other sectors.
Ackman and Israel wrote that the environment has enabled the firm to deploy nearly $5 billion since Pershing Square's initial public offering earlier this year.
JPMorgan za poslední měsíc přidal asi 5,3 % a po silných výsledcích ve 2. čtvrtletí 2026 zvýšil výhled na rok 2026. Upravený zisk na akcii 6,14 USD překonal odhad 5,59 USD.
A month has gone by since the last earnings report for JPMorgan Chase & Co. (JPM - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is JPMorgan Chase & Co. 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 JPMorgan Chase & Co. before we dive into how investors and analysts have reacted as of late.
JPMorgan’s Q2 Earnings Beat on Trading & IB, Loan Growth Supports NIIJPMorgan’s second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago.
Reported net revenues of $57.35 billion rose 27.7% year over year and topped the consensus mark of $49.14 billion. Strong Markets and IB activity powered core growth, while NII got support from decent loan demand.
The quarter included a $4.55 billion pretax gain related to Visa shares, which added $1.27 to earnings per share. JPM also recorded $1.03 billion of gains on certain equity investments, adding 29 cents per share. Including these significant items, net income jumped 41% year over year to $21.16 billion.
Markets and Fee Income Momentum Boosts GrowthMarkets revenues advanced 35% to $12.08 billion on elevated client activity, strong trading performance and continued financing demand in Equities. Fixed Income Markets revenues rose 6% to $6.05 billion, while Equity Markets revenue surged 86% to $6.03 billion.
IB revenues increased 45% to $3.90 billion. IB fees rose 30% to $3.28 billion on higher fees across products, led by equity underwriting. Payments revenues grew 12% to $5.30 billion, while Securities Services revenues gained 17% to $1.66 billion.
NII Benefits From Balance Sheet ExpansionReported NII increased 9.9% to $25.51 billion. NII excluding Markets was $23.68 billion, up 4%, supported by higher deposit balances, greater revolving Card Services balances and wholesale loan growth. Lower rates partly offset those benefits.
Average loans expanded 10% to $1.52 trillion, while average deposits grew 7% to $2.69 trillion. The net yield on interest-earning assets was 2.40%, down from 2.43% a year earlier, showing rate pressure despite balance sheet growth.
Expenses Temper GainsNon-interest expenses rose 15% year over year to $27.32 billion. Higher compensation, brokerage and distribution fees, marketing, technology and occupancy costs drove the increase. Still, the reported overhead ratio improved to 48% from 53% in the prior-year quarter.
Credit Trends Offer SupportThe provision for credit losses was $2.52 billion, down 12%. Net charge-offs (NCOs) were $2.4 billion, down $44 million, and the company recorded a $149 million net reserve build, primarily in Wholesale. Consumer & Community Banking accounted for $2.16 billion of the provision.
Segment Performance ImprovesCommercial & Investment Bank revenues climbed 27% from the prior-year quarter to $24.85 billion, while net income soared 46% to $9.68 billion.
Consumer & Community Banking revenues grew 8% to $20.27 billion, led by higher Card Services NII, auto operating lease income and wealth-management fees. Segment net income rose 3% to $5.31 billion. Debit and credit card sales volume rose 10% to $535.8 billion, while active mobile customers increased 6% to 63.7 million.
Asset & Wealth Management revenues climbed 19% to $6.85 billion. Assets under management reached $5.1 trillion, up 18%, aided by $50 billion of long-term net inflows.
Corporate net income was $4.21 billion compared with $1.7 billion a year ago, influenced by net gain related to Visa shares and gains on certain equity investments.
Capital ReturnsJPMorgan’s capital position remained strong, even as ratios eased versus year-ago levels. The standardized common equity Tier 1 capital ratio was 14.1% as of June 30, 2026, compared with 15.1% a year earlier. Tangible book value per share rose 10% to $113.35.
Shareholder returns stayed elevated. The bank paid a common dividend of $4 billion, or $1.50 per share, and reported $6.2 billion of common stock net repurchases during the quarter.
Outlook for 2026Management expects 2026 NII of roughly $105.5 billion and NII excluding Markets of about $96.5 billion. Both metrics show increases from the prior targets.
Adjusted expenses are projected at around $107.5 billion, with the increase from the prior outlook of $106 billion reflecting higher volume- and revenue-related costs.
The Card Services NCO rate is now expected to be approximately 3.2%, down from the previous target of 3.4%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 6.04% due to these changes.
VGM ScoresCurrently, JPMorgan Chase & Co. has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise JPMorgan Chase & Co. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Wall Street’s love affair with Amazon (NASDAQ:AMZN | AMZN Price Prediction) has rarely looked this one-sided. Out of 62 analysts covering the stock, zero rate it a Sell. Our proprietary model agrees.
The 24/7 Wall St. price target for Amazon is $353.44, implying 32.24% upside from Wednesday’s close of $267.28. Our recommendation is buy, with confidence at 90%.
24/7 Wall St. Price Target Summary
Metric
Value
Current Price
$267.28
24/7 Wall St. Price Target
$353.44
Upside
32.24%
Recommendation
BUY
Confidence Level
90%
AWS Just Posted Its Fastest Growth in 18 Quarters
Amazon shares are up 15.8% year to date and 20.68% over the past year. The stock has cooled 1.97% in the past week and sits 13% below its 52-week high of $287.20. The pullback comes despite a Q2 report on July 30, 2026, when revenue hit $200.61 billion, up 19.6% year over year.
Cloud revenue reached $42.23 billion at a 36.7% growth rate, the fastest in 18 quarters, at a 39.4% operating margin. CEO Andy Jassy told investors AWS could ultimately become “a trillion-dollar annual revenue business for us in time.” Advertising grew 26% to $19.81 billion, and AI and custom chips each cleared $25 billion in annualized run rate.
The Case for $405 and Beyond
AWS backlog sits at $496 billion, growing triple digits year over year, with multi-gigawatt Trainium commitments from Anthropic and OpenAI. Management plans to double power capacity by end of 2027, and the lion’s share of 2027 capacity is already reserved.
Advertising is a $70 billion-plus TTM engine growing at 26%. Optionality from Zoox robotaxis, Amazon Leo satellites, and the Kiro coding agent is essentially free. Our bull scenario projects $405.60 within 12 months, a 51.75% total return.
The Risks Worth Watching
Q2 consumed $54.21 billion in capital spending, 2026 guidance was raised to roughly $220 billion, and trailing free cash flow has flipped negative at -$7.6 billion. If AI monetization slips, return on invested capital compresses fast.
Q3 guidance implies deceleration to 9-12% revenue growth with an 80 basis point FX headwind. Our bear case lands at $300.33, still a 12.36% gain. Bulls argue the spending buys durable capacity; AWS margins expanded 650 basis points year over year.
How Amazon Compares to Microsoft and Alphabet
Microsoft (NASDAQ:MSFT) competes head-to-head with AWS via Azure. MSFT shares have gained 2.28% year to date and are down 6.21% over the past year, versus Amazon’s 20.68% gain. AWS growing at 36.7% off a $169 billion run rate makes Amazon’s forward multiple look reasonable.
Alphabet (NASDAQ:GOOGL) overlaps in cloud, ads, and AI. GOOGL has gained 69.43% over the past year on Gemini momentum, outpacing AMZN. That relative outperformance suggests Amazon is playing catch-up in AI mindshare. Closing the gap is exactly what our 24/7 Wall St. price target assumes. The peer set makes $353.44 look reasonable.
Amazon Price Projection 2026 and 2030
The 24/7 Wall St. price target of $353.44 and buy rating rest on one thesis: AWS is accelerating into the largest AI capex cycle in history, and the Street is underwriting the top line without fully crediting the margin story.
The bull case strengthens if AWS holds a growth rate above 30% into 2027. The setup weakens if free cash flow remains negative through year-end without a clear inflection. With zero Sell ratings among 62 analysts, the risk/reward tilts positive.
Year
24/7 Wall St. Price Target
2026
$353.44
2030
$592.51
These projections assume Amazon continues executing on AWS reacceleration and advertising expansion. Significant upside could come from Trainium third-party sales, while downside risk centers on a prolonged AI capex digestion phase.
Contact [email protected] for any questions or corrections.
Key Takeaways Delta will launch daily nonstop Seattle-Tokyo Narita service on March 27, 2027, expanding Japan access. Delta's dual Tokyo-airport service should add flexibility, capacity and broader Seattle connectivity. Delta's new Narita route could support cargo demand and strengthen its trans-Pacific growth strategy. Delta Air Lines’ (DAL - Free Report) launch of daily nonstop service between Seattle and Tokyo-Narita, beginning March 27, 2027, is expected to strengthen its position in the Pacific Northwest and expand connectivity between the United States and Japan. By serving both Tokyo-Narita and Tokyo-Haneda from Seattle, Delta will provide customers with greater flexibility, additional capacity and more convenient options for accessing Tokyo and other destinations across Japan.
The new route is likely to support Delta’s broader international growth strategy by strengthening Seattle as a key Pacific gateway. Delta already operates more than 160 peak-day departures from Seattle to more than 62 destinations, including international service to Europe and Asia. Adding Narita to its existing Haneda service should enhance the appeal of its Seattle network, allowing the airline to capture more business and leisure travel demand while offering connections from markets across its broader U.S. network.
The service could also provide a boost to Delta’s cargo operations by adding dedicated belly capacity between Japan and the U.S. West Coast. Narita’s established cargo infrastructure and its role as an important commercial gateway could help Delta serve freight demand more effectively. It could also connect Japanese businesses with markets across the United States and the Americas. In addition, Delta’s joint venture partnership with Korean Air provides customers with further connectivity to destinations across Japan and Asia through Seoul.
Overall, the Seattle-Narita launch represents a positive development for Delta as the airline expands its trans-Pacific presence and strengthens its Seattle hub. Increased capacity and dual-airport access to Tokyo should support passenger demand, improve network connectivity and reinforce Delta’s competitive position in the United States-Japan market. The additional cargo capacity and broader connectivity could provide further support to the airline’s international revenue opportunities.
DAL’s Share Price PerformanceDAL’s shares have gained 52.6% over the past year compared with the Transportation - Airline industry’s 12.5% growth.
Image Source: Zacks Investment Research
DAL’s Zacks RankDAL currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and LATAM Airlines (LTM - Free Report) as well.
Expeditors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EXPD has an expected earnings growth rate of 28.6% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
LATAM Airlines currently sports a Zacks Rank #1.
LTM has an expected earnings growth rate of 10.3% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 97.9%.
Ford uvedl, že přestavba továrny za 2 miliardy USD postupuje podle plánu a v roce 2027 má zahájit výrobu elektrického pick-upu Fathom za méně než 30 000 USD. Ford očekává, že první prototypy Fathomu začne vyrábět v 1. čtvrtletí 2027.
Ford made a $2 billion bet two years ago when it closed its Louisville Assembly Plant in Kentucky and scrapped the assembly line system it had used for more than a century. Its goal was to transform the factory into one capable of making a new generation of affordable EVs.
The auto giant provided an update on Thursday, stating that its factory overhaul is on track and in 2027 will be ready to start producing the Fathom, an all-electric midsize truck that costs less than $30,000 and is the first EV built on its new universal platform.
Ford said it expects to begin prototype builds of the Fathom in the first quarter of 2027, with customer vehicles to follow later in the year. The U.S. automaker is already testing production-level tooling ahead of the prototypes.
The stakes for Ford are high. The company’s previous EV efforts were a drag on its profitability, while Chinese competitors and Tesla leapt ahead with vehicles that sell at volume and with a profit margin.
To catch up, Ford ditched the moving assembly line system that its founder Henry Ford launched and turned to a system developed by its skunkworks team led by former Tesla executive Alan Clarke.
This “universal production system,” as Ford calls it, uses a three-branched assembly tree. Ford will use large single-piece aluminum unicastings that use far fewer parts — a technique that Tesla has popularized — and that will allow the front and rear of the vehicle to be assembled separately on two of the branches. The third branch is where the structural battery will be assembled with seats, consoles, and carpeting. The three components will come together at the end of the line to form the vehicle.
As part of the factory rebuild, Ford has also nearly tripled the Wi-Fi coverage density in the factory to 1,080 access points to the kind of high-bandwidth, low-latency connectivity required for software quality checks.
Ford said it will be able to assemble the Fathom a net 15% faster than the former vehicles that were built at the Louisville plant.
The company said some employees have already spent months training on the new system at its New Models Program Development Center in Allen Park, Michigan.
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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.
GE Aerospace ve 2. čtvrtletí zvýšila tržby divize Defense & Propulsion Technologies o 16 % meziročně, provozní zisk vzrostl o 18 % na 475 milionů USD. Firma čeká pro rok 2026 růst tržeb této divize v nízkých dvouciferných číslech.
Key Takeaways GE Aerospace's Defense & Propulsion revenues rose 16% in Q2 after growing 19% in the first quarter.GE secured key defense contracts while segment orders climbed 12% and operating profit rose 18%.GE expects Defense & Propulsion revenues to grow in the low-double-digit range in 2026. GE Aerospace (GE - Free Report) is witnessing strong momentum in its Defense & Propulsion Technologies segment. After experiencing growth of 19% in first-quarter 2026, revenues from the segment increased 16% year over year in the second quarter. The surge in revenues was driven by the growing popularity of GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector.
Some of the notable contracts secured by the company include a contract from Turkish Aerospace Industries to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. It also clinched a deal from Boeing Defence UK for the extension of support services for T700-GE-T701D engines. GE will be responsible for providing logistics management, repair, maintenance and technical support services for these turboshaft engines. Apart from this, it entered into a multi-year partnership with Palantir Technologies Inc. (PLTR) to improve the fleet management and operational readiness of the U.S. Air Force’s military aircraft.
The strong pipeline of projects boosted the Defense & Propulsion Technologies segment’s orders, which increased 12% in the second quarter on a year-over-year basis. The segment’s operating profit grew 18% to $475 million.
Backed by favorable geopolitical developments and consistent government support, the company’s Defense & Propulsion Technologies segment is well-placed for growth in the quarters ahead. For 2026, GE expects revenues from the Defense & Propulsion Technologies segment to increase in the low-double-digit range.
GE's Peers in the Defense MarketHowmet Aerospace Inc. (HWM - Free Report) is benefiting from strong momentum in its defense aerospace market. After experiencing growth of 10% in first-quarter 2026, revenues from the defense aerospace market increased 11% year over year in the second quarter. The surge in revenues was driven by the solid demand for engine spares, particularly related to the F-35 program, and an increase in orders for legacy fighter jet spares.
Northrop Grumman’s (NOC - Free Report) defense market is playing an important role in driving its overall growth. In second-quarter 2026, revenues from Northrop’s Defense Systems segment climbed 5.1% year over year to $2.09 billion. This improvement was driven by the continued ramp-up of the Sentinel program, as well as the higher volume of tactical solid rocket motor programs and the Integrated Battle Command System portfolio.
GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have gained 25.3% in the past three months compared with the industry’s 11.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 42.68X, above the industry’s average of 34.39X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has increased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Goldman Sachs za 2. čtvrtletí překonal odhady, když EPS dosáhl 20,98 USD a tržby vzrostly o 39 % na 20,34 miliardy USD. Akcie ale za zhruba měsíc od poslední výsledkové zprávy klesly asi o 10 %.
It has been about a month since the last earnings report for Goldman Sachs (GS - Free Report) . Shares have lost about 10% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Goldman due for a breakout? 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 The Goldman Sachs Group, Inc. before we dive into how investors and analysts have reacted as of late.
Goldman Q2 Earnings Beat on Solid Trading & IB RevenuesGoldman reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago.
Driven by robust client activity, Goldman posted record net revenues in Equities of $7.42 billion, which jumped 72% year over year, while fixed income, currencies and commodities (FICC) revenues climbed 32% to $4.59 billion. Strong dealmaking activity lifted investment banking (IB) fees 55% to $3.40 billion, supported by solid growth in advisory, equity underwriting and record debt underwriting revenues.
Goldman’s overall results benefited from strong revenue growth in the Global Banking & Markets and Asset & Wealth Management businesses, while profitability was highlighted by an annualized return on equity of 23.5%. However, higher operating expenses created a headwind. Shares of the company rose in the pre-market trading following the earnings release.
Net earnings attributable to common shareholders were $6.40 billion, up 84% year over year.
Revenues & Expenses Increase
Net revenues were $20.34 billion, rising 39% year over year and comfortably surpassing the Zacks Consensus Estimate of $16.49 billion by 23.3%.
On the cost side, operating expenses were $11.67 billion, up 26% from the prior-year quarter. Management attributed the increase primarily to significantly higher compensation and benefits expenses, reflecting improved operating performance, along with substantially higher transaction-based expenses.
Even with higher costs, Goldman’s efficiency ratio declined 6 basis points to 57.4% for the quarter, reflecting continued operating leverage.
Provision for credit losses was $102 million, down sharply from $384 million in the year-ago quarter, primarily reflecting impairments related to wholesale loans.
Quarterly Segmental Performance
Asset & Wealth Management generated net revenues of $4.60 billion, up 20% year over year. The increase primarily reflected record management and other fees, driven by higher average assets under supervision and significantly higher investment gains from private equity investments, partially offset by weaker private banking and lending revenues. The franchise continued to scale meaningfully. Total assets under supervision increased to a record $4.04 trillion, reflecting $230 billion in total net inflows and $91 billion in long-term net inflows during the quarter.
Global Banking & Markets generated record net revenues of $15.52 billion, up 53% year over year. Growth was driven by record Equities revenues, stronger FICC performance and significantly higher investment banking fees across advisory, equity underwriting and debt underwriting.
Platform Solutions reported net revenues of $221 million, down 64% from the year-ago quarter. The decline primarily reflected net markdowns related to the Apple Card loan portfolio, which had previously been transferred to held for sale.
Balance Sheet & Capital Position
Goldman ended the second quarter with total assets of $2.13 trillion, up from $2.06 trillion at the end of the first quarter, while deposits were $558 billion compared with $561 billion in the previous quarter. Total loans increased sequentially to $261 billion from $253 billion.
Capital ratios strengthened sequentially. The standardized CET1 capital ratio improved to 12.9% from 12.5%, while the advanced CET1 ratio rose to 13.7% from 13.3%. The supplementary leverage ratio was 4.3% compared with 4.7% in the prior quarter.
During the quarter, Goldman returned $5.36 billion to its shareholders, including $4 billion in common share repurchases and $1.36 billion in common stock dividends.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 11.11% due to these changes.
VGM ScoresCurrently, Goldman has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Goldman has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Cerebras klesá v poledním obchodování o zhruba 13 % po výsledcích za fiskální Q2 2026. Tržby 180,11 mil. USD sice meziročně vzrostly o 74 %, ale zaostaly za odhadem.
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Shares of Cerebras Systems (NASDAQ:CBRS) are down roughly 13% in midday trading on Thursday, changing hands near $225 after closing Wednesday at $262. The move stands out because most of the AI hardware complex is higher, with the sector outperforming the broader market average.
Raise and Beat on Core, Miss on the Headline
Cerebras reported fiscal Q2 2026 results after the close Wednesday. GAAP revenue came in at $180.11 million, up 74% year over year but missing consensus of $193.55 million by 7%. GAAP EPS of -$2.98 looks catastrophic against a -$0.18 estimate, but the headline is heavily distorted by $377.0 million of stock-based compensation and $44.3 million of customer warrant amortization. Strip those out and core revenue was $209.87 million, up 103%, with core gross margin of 40.6% and cloud revenue up 281% to $125.99 million.
Management also raised full-year 2026 core revenue guidance to $880 to $890 million from a prior $855 to $865 million, guided Q3 to $214 to $216 million, and disclosed remaining performance obligations of $25.4 billion with plans to more than triple revenue in 2027. CEO Andrew Feldman said, “This was an outstanding quarter for Cerebras. Core revenue more than doubled to $210 million, and our cloud business nearly quadrupled year-over-year.” The market is punishing the consensus revenue miss, the GAAP optics, and a valuation that had run hot into the report. Cerebras IPO’d in May 2026 at $185 and had ripped higher since.
The Rest of the AI Complex Is Bid
Everything else in the AI logic and infrastructure trade is higher. Intel (NASDAQ:INTC | INTC Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) are riding broad enthusiasm for the AI trade rather than any single company catalyst today.
In company-specific news, AMD is preparing a $5 billion debt offering while Intel received positive analyst commentary. UBS issued a note on Intel’s $20 billion equity raise that framed it as “removing an overhang.”
There’s also positive read-through from server companies. Yesterday Super Micro Computer (NASDAQ:SMCI) lit up the sector after guiding fiscal 2027 revenue to $65 billion to $72 billion versus Street expectations of $53.3 billion. Lenovo added fuel this morning, reporting April to June revenue of $26.94 billion, up 43% year over year, with an AI server pipeline that surged to $54 billion, up 157% sequentially.
The read-through is spreading across memory, semiconductor equipment, interconnect, and AI server names, with Micron bid on memory pricing strength, Applied Materials participating on equipment demand, Marvell Technology one of the day’s leaders on interconnect, and Dell Technologies catching an AI server tailwind after Morgan Stanley upgraded its US IT hardware view to In-Line from Cautious.
Today’s Move vs. Year to Date
Ticker
Today
Year to Date
CBRS
-14%
N/A (IPO May 2026)
INTC
+6%
+174%
AMD
+2%
+126%
MRVL
+5%
+156%
SMCI
+11%
+28%
MU
+6%
+219%
DELL
+4%
+288%
AMAT
+2%
+114%
Across the broader technology and AI infrastructure space, stocks are broadly rallying today witht he exception of Cerebras. SanDisk hosted its investor day today and forecast non-GAAP gross margins at 80% between 2028 and 2030. That’s extremely bullish for memory companies, although its an unwelcome prediction for companies like Apple bearing the brunt of memory costs.
Contact [email protected] for any questions or corrections.
Cisco Systems říká, že další vlna firemní AI se nemusí přesouvat do cloudu, ale do vlastních datových center. Firma čeká rostoucí poptávku po on-premise AI infrastruktuře.
For much of the AI boom, the assumption has been straightforward: as companies adopt artificial intelligence, more computing workloads will move to the public cloud.
Cisco Systems Inc. (NASDAQ:CSCO) is now making a different bet.
The networking giant used its fiscal fourth quarter earnings call to argue that the next phase of enterprise AI will not be defined by cloud migration alone, but by companies bringing more AI infrastructure into their own data centers.
The shift, Cisco argues, is being driven by economics as much as technology. As enterprises move beyond experimenting with AI and begin deploying it at scale, they are looking more closely at where AI workloads should run to balance cost, performance and security.
• Cisco Systems shares are retreating from recent levels. Why is CSCO stock dropping?
On-Premise AI Infrastructure Is Becoming a Strategic Enterprise ChoiceCisco made its position clear during the earnings call.
“We believe on-premise AI infrastructure will become an important option for enterprise customers as they look to optimize both the business value and cost of AI,” Chairman and CEO Chuck Robbins said.
The statement marks a notable departure from the long-held narrative that enterprise AI would increasingly reside inside hyperscale cloud platforms. Instead, Cisco sees businesses adopting a more flexible approach, deploying workloads wherever they make the most operational and financial sense.
That strategy, the company believes, will require significant investments in enterprise infrastructure rather than cloud capacity alone.
Enterprise AI Deployments Are Expanding Beyond the Public CloudCisco said companies deploying AI increasingly need infrastructure capable of supporting AI applications close to where their data is generated and stored.
As Robbins explained, “Enterprises need GPU clusters on premise and at the edge with low-latency, high-bandwidth networking and built-in security, observability and automation, all of which Cisco Systems can provide in a co-designed, vertically integrated stack.”
For businesses handling sensitive information or applications requiring fast response times, keeping AI workloads on premises can reduce delays, improve control over data and potentially lower operating costs. Those requirements, in turn, create demand for networking equipment capable of connecting increasingly complex AI infrastructure.
Cisco Sees Opportunity Regardless of Where AI RunsRather than framing public cloud and private infrastructure as competing models, Cisco believes enterprises will adopt a combination of deployment options.
“Regardless of how or where customers choose to deploy AI — whether in the public cloud, through neo or sovereign clouds, on premise, or at the edge — we believe Cisco Systems will benefit because of the unmatched depth and breadth of our portfolio and our expertise in each scenario,” Robbins said.
Cisco’s outlook reflects a broader evolution in enterprise AI adoption. The first wave of investment centered on cloud providers building massive AI infrastructure. The next may be shaped by enterprises building AI capabilities of their own, creating fresh opportunities for networking vendors as corporate data centers once again become a focal point of technology spending.
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IBM uzavřel víceletou smlouvu s Together AI za 240 milionů USD na nasazení systémů NVIDIA HGX B300 v rámci IBM Cloud. Dohoda má podpořit AI inferenci a levnější provoz velkých pracovních zátěží.
Key Takeaways IBM will deploy NVIDIA HGX B300 systems on its cloud under a $240 million Together AI deal.The agreement supports high-performance AI inference and more cost-effective large-scale workloads.IBM and NVIDIA are expanding work across analytics, hybrid cloud infrastructure and AI software.
International Business Machines Corporation (IBM - Free Report) has entered into a multi-year, $240 million agreement with Together AI to support the growing demand for enterprise artificial intelligence (AI) inference. The partnership will enable IBM to expand its cloud infrastructure offerings for open-source AI workloads and strengthen its position in the rapidly growing AI infrastructure market.
Under the agreement, the company plans to deploy a large cluster of NVIDIA Corporation’s (NVDA - Free Report) HGX B300 systems on IBM Cloud and provide Together AI with enterprise-grade cloud infrastructure powered by NVIDIA’s advanced computing and Spectrum-X Ethernet networking technologies. The deployment is designed to support high-performance AI inference and make large-scale workloads more cost-effective.
The collaboration also expands IBM’s broader relationship with NVIDIA across AI infrastructure and software. The companies are advancing solutions in GPU-accelerated data analytics, unstructured data processing, hybrid cloud infrastructure and consulting services. These capabilities are expected to help enterprises deploy AI workloads across cloud and on-premises environments with greater performance, flexibility and scalability.
Increasing investment in next-generation AI infrastructure is likely to create new opportunities for IBM as enterprises expand their AI spending. The deal could help the company expand its customer base and generate long-term revenues.
How Are Competitors Advancing?IBM faces competition from Microsoft Corporation (MSFT - Free Report) and Amazon.com, Inc. (AMZN - Free Report) . Microsoft is expanding its AI capabilities with new features in Copilot. The company is preparing its next-generation Maia 300 AI chip to strengthen its AI infrastructure and reduce reliance on other chip suppliers. Microsoft continues to invest in AI across Windows, Microsoft 365 and Azure to help businesses and developers work more efficiently.
Amazon is strengthening its AI services through Amazon Web Services with new models, chips and cloud tools. The company is helping businesses build AI applications faster with services such as Bedrock and SageMaker. Amazon is investing heavily in data centers and AI infrastructure to meet growing demand.
IBM’s Price Performance, Valuation & EstimatesIBM shares have lost 0.5% over the past year against the industry’s growth of 190.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.07, below the industry average of 5.32.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined 0.2% to $12.33 over the past 60 days, while the same for 2027 have decreased 1.4% to $13.23.
Image Source: Zacks Investment Research
IBM 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 MGM received $546M from Northfield, lifting cash to $2.55B at June 30, 2026.MGM cut annual cash rent by $53M, adding recurring flexibility as it funds growth projects.MGM had $1.4B left under its buyback authorization while continuing major Osaka investments. MGM Resorts International (MGM - Free Report) completed the sale of MGM Northfield Park's operations for $546 million in April 2026, adding liquidity while removing a recurring lease burden. The transaction gives the company more flexibility as it balances share repurchases with sizable development spending.
That flexibility is useful, but it does not eliminate competing capital demands. MGM is still funding Osaka, maintaining its domestic portfolio and investing in digital operations, so the Northfield proceeds are best viewed as added capacity rather than pure excess cash.
MGM Turns Northfield Into $546M of Fresh LiquidityThe Northfield transaction converted a regional operating asset into $546 million of cash proceeds. MGM's cash and cash equivalents stood at $2.55 billion at June 30, 2026, up from $2.06 billion at the end of 2025, leaving the balance sheet with greater near-term liquidity.
The sale also simplifies the Regional Operations comparison because Northfield closed on April 21. MGM reported second-quarter same-store regional revenues of $904 million, up 3% year over year, showing that the remaining portfolio continued to produce revenue growth after adjusting for the disposition.
MGM Cuts $53M of Annual Cash RentExiting Northfield also reduced MGM's annual cash rent by $53 million. That recurring savings extends the economic benefit beyond the one-time sale proceeds and lowers a fixed cash obligation as management directs funds toward growth projects and shareholder returns.
MGM currently expects 2026 cash rent and ground lease payments of about $1.8 billion, with that forecast reflecting the Northfield closing. The rent reduction does not transform MGM's cost structure, but it improves recurring cash flexibility at the margin.
MGM Has More Room to Reaccelerate BuybacksMGM repurchased about 4 million shares for $164 million during the second quarter and had roughly $1.4 billion remaining under its repurchase authorization at June 30. The company has reduced its share count by nearly 50% over the past five years, making buybacks a central use of discretionary capital.
Capital-return choices differ across casino operators. Caesars Entertainment, Inc. (CZR - Free Report) had $221 million of repurchase authorization remaining at June 30 but said no repurchases were expected at that time because of its proposed merger. Wynn Resorts, Limited (WYNN - Free Report) repurchased $75 million of shares in the second quarter, showing that buybacks remain an active capital-allocation tool for major gaming peers.
MGM Still Has Major Osaka Funding NeedsNorthfield's proceeds arrive while MGM Osaka continues to absorb substantial capital. MGM expects approximately $350-$400 million of 2026 investment in unconsolidated affiliates for Osaka, while second-half funding is projected at $125-$175 million. Management also expects to deploy about $1 billion in each of 2027 and 2028.
Wynn provides a useful development comparison. Wynn had contributed $1.06 billion of cash life to date to its 40%-owned Wynn Al Marjan Island venture by June 30 and expects that resort to open in September 2027. MGM's own Osaka project remains targeted for a 2030 opening, keeping development funding a multiyear capital priority.
MGM's Style Scores Back Selective Capital ReturnNorthfield improves MGM's financial flexibility, but the transaction does not remove the need for disciplined capital allocation. The company still has major development commitments, while buybacks compete with investment in Las Vegas, digital operations and other growth initiatives.
MGM currently carries a Zacks Rank #3 (Hold), with a Value Score of A, Momentum Score of A, Growth Score of D and VGM Score of B. The favorable Value and Momentum Scores indicate stronger value and momentum characteristics, while the weaker Growth Score keeps the setup mixed. The Hold rank reinforces a balanced stance rather than a clear near-term buy signal. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
MGM Resorts International za tři měsíce vzrostla o 22,5 %, ale investoři řeší, zda růst unese slabší ziskovost. Ve 2. čtvrtletí upravená EBITDA klesla na 610 milionů USD při 1% růstu tržeb.
Key Takeaways MGM's Las Vegas revenue rose 3%, supported by record convention rates and banquet revenue.MGM China held 16.4% market share, but Segment Adjusted EBITDAR fell 15% amid higher fee expense.MGM's Adjusted EBITDA fell to $610 million as earnings declined despite 1% revenue growth. MGM Resorts International's (MGM - Free Report) shares have gained 22.5% over the past three months, putting the durability of that advance in focus. Second-quarter results offered support from Las Vegas group demand and continued digital revenue growth, while Macau held a mid-teens market share.
The counterweight is profitability. Softer value-oriented leisure demand, lower hotel metrics and weaker adjusted earnings leave investors weighing whether operating momentum can keep pace with the stock's recent move.
MGM's Convention Mix Supports Las Vegas DemandLas Vegas Strip Resorts revenues rose 3% year over year to $2.17 billion in the second quarter, while Segment Adjusted EBITDAR increased 3% to $735 million. Group and convention business represented 20% of room mix and produced record second-quarter convention average daily rates and catering and banquet revenues.
That performance stands out against an uneven Strip backdrop. Caesars Entertainment, Inc. (CZR - Free Report) reported a 3.5% decline in second-quarter Las Vegas revenues. MGM's event calendar, group base and upgraded room inventory helped offset softer leisure trends, although revenue per available room fell 4%.
MGM China Adds Premium-Mass MomentumMGM China held 16.4% market share in the second quarter, up one percentage point sequentially. Recent suite conversions and 50,000 square feet of high-end gaming space at MGM Cotai supported its premium-mass positioning, while management said July volumes rebounded after World Cup-related softness in June.
Profitability was less favorable. MGM China revenues were roughly flat at $1.10 billion, but Segment Adjusted EBITDAR fell 15% to $257 million as intercompany branding license fee expense increased by $21 million. Wynn Resorts, Limited (WYNN - Free Report) also reported higher second-quarter operating revenues at Wynn Palace, pointing to active premium demand in Macau.
MGM Digital Narrows Losses as Revenue ScalesOn a first-half basis, MGM Digital revenues increased nearly 30% to $379 million, while its Segment Adjusted EBITDAR loss narrowed to about $56 million from $60 million. The core LeoVegas and BetMGM-branded European businesses are expected to provide better operating leverage in 2027 and help fund growth investments in Brazil.
The quarterly picture was more mixed. Second-quarter MGM Digital revenues rose 20% to $196 million, but the loss widened to $31 million from $26 million. BetMGM North America generated $711 million of quarterly net revenue, up 3%, while Adjusted EBITDA fell 15% to $74 million.
MGM Still Faces Value and Cost PressureThe lower end of MGM's Las Vegas portfolio remains a pressure point. Luxor and Excalibur continued to face softer demand, even as the all-inclusive package helped stabilize occupancy and bookings. Strip room revenues declined 2% and average daily rate fell 4% in the second quarter.
Those trends matter because consolidated Adjusted EBITDA declined to $610 million from $648 million despite 1% revenue growth. Adjusted earnings per share fell to 59 cents from 79 cents, leaving less room for execution misses as MGM continues investing in luxury upgrades, digital expansion and Osaka.
MGM's Momentum Strength Meets Growth CautionMGM's 22.5% three-month advance is backed by better Las Vegas revenues, a resilient convention mix and continued digital scaling. Still, weaker adjusted earnings, Macau margin pressure and softness among value-conscious leisure customers argue for a measured view on how much of the recovery is already reflected in the shares.
The stock currently carries a Zacks Rank #3 (Hold), with a Value Score of A, Momentum Score of A, Growth Score of D and VGM Score of B. The favorable value and momentum grades support the recent setup, but the weaker growth score tempers the picture. For a #3 Ranked stock, the combination is more consistent with holding than treating the rally as a clear new-buy signal. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
It has been about a month since the last earnings report for Wells Fargo (WFC - Free Report) . Shares have added about 1.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wells Fargo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Wells Fargo Q2 Earnings Beat on NII & Fee Income GrowthWells Fargo reported second-quarter 2026 adjusted earnings per share of $1.96, which surpassed the Zacks Consensus Estimate of $1.73. In the prior-year quarter, the company reported earnings per share of $1.54.
Results benefited from an improvement in net interest income, higher non-interest income, and lower provisions. Higher loan balances and improved deposits were other positives. However, increased non-interest expenses remained a headwind.
Results included 4 cents per share of discrete tax benefits related to the resolution of prior-period matters. After considering this, net income (GAAP basis) was $6.41 billion, representing a 16.6% increase from the prior-year quarter.
Revenues Improve, Expenses Rise
Total revenues were $22.62 billion, surpassing the Zacks Consensus Estimate of $21.80 billion. Also, the top line increased 8.6% from the year-ago quarter.
NII was $12.32 billion, up 5.2% year over year. The increase was driven by lower deposit costs, higher loan and investment securities balances, balance sheet growth in the Markets business and higher interest-bearing commercial deposits, partially offset by the impact of lower interest rates on floating-rate assets and a modest decline in noninterest-bearing deposits.
The net interest margin (on a taxable-equivalent basis) contracted 25 basis points year over year to 2.43%.
Non-interest income grew 13.1% year over year to $10.31 billion. The increase was driven by strong performance from venture capital investments, higher investment advisory fees on improved market valuations, higher investment banking fees and increases in most other fee categories, partially offset by lower lease income related to the sale of the railcar leasing business.
Non-interest expenses of $13.66 billion increased 2.1% year over year. The increase was due to higher revenue-related and incentive compensation, increased technology and equipment expense and higher advertising expense, partly offset by lower lease expense and continued efficiency initiatives, including a 7% reduction in headcount.
Wells Fargo's efficiency ratio of 60% was lower than 64% in the year-ago quarter. A decline in the efficiency ratio indicates improvement in profitability.
Loan Balance & Deposits Improve
As of June 30, 2026, total average loans were $1.03 trillion, which increased 3.1% on a sequential basis. Total average deposits were $1.47 trillion, up 3.6% on a sequential basis.
Credit Quality Improves
The provision for credit losses was $914 million, down 9.1% from the year-ago quarter.
Net loan charge-offs were 0.34% of average loans in the reported quarter, down from 0.44% in the year-ago quarter. Non-performing assets declined marginally year over year to $7.94 billion.
Capital Ratios Decline
As of June 30, 2026, the Common Equity Tier 1 ratio under the Standardized Approach was 10.3%, down from 11.1% in the prior-year quarter.
Profitability Ratios Improve
Return on assets was 1.15% compared with 1.14% in the prior-year quarter. Return on equity was 15.0%, up from 12.8% a year ago.
OutlookThird Quarter 2026
The company expects modest NIM compression, broadly in line with the 4-basis-point sequential decline recorded in the second quarter. Deposit costs are projected to increase slightly due to continued growth in interest-bearing commercial and institutional deposits.
Fourth Quarter 2026
Wells Fargo expects NIM to stabilize following the anticipated third-quarter compression. The stabilization is expected to be supported by slower Markets balance-sheet growth, earning-asset expansion and continued repricing of the securities portfolio.
Average loan growth is expected to exceed the mid-single-digit increase projected earlier, reflecting stronger commercial, auto and credit card lending.
2026
Wells Fargo expects NII to be approximately $50 billion. NII excluding Markets is projected to be around $48 billion, driven by balance-sheet growth, a favorable loan and deposit mix, and continued fixed-asset repricing, partially offset by the impact of expected rate cuts.
Markets NII is expected to be around $2 billion, reflecting client-driven balance-sheet growth in lower-risk, lower-margin assets, compared with earlier expectations of an increase driven by lower short-term funding costs and client financings. The company continues to expect stronger NII growth in the second half of 2026 than in the first half.
Average loans are expected to increase mid-single digits, primarily driven by growth in commercial, auto, and credit card lending.
Average deposits are expected to increase by mid-single digits across all operating segments.
Non-interest expenses are projected to be around $55.7 billion. This is due to higher revenue-related compensation along with increased FDIC assessments, and continued investments in technology and other strategic initiatives.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
VGM ScoresCurrently, Wells Fargo has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
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 upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wells Fargo has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
