Silicon Motion (SIMO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this chip company have returned +86.1% over the past month versus the Zacks S&P 500 composite's +5.6% change. The Zacks Computer - Integrated Systems industry, to which Silicon Motion belongs, has gained 46.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Silicon Motion is expected to post earnings of $1.98 per share, indicating a change of +187% from the year-ago quarter. The Zacks Consensus Estimate has changed +64.3% over the last 30 days.
The consensus earnings estimate of $8.37 for the current fiscal year indicates a year-over-year change of +135.8%. This estimate has changed +46.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.45 indicates a change of +24.8% from what Silicon Motion is expected to report a year ago. Over the past month, the estimate has changed +33.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Silicon Motion.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Silicon Motion, the consensus sales estimate for the current quarter of $401.53 million indicates a year-over-year change of +102.1%. For the current and next fiscal years, $1.56 billion and $1.84 billion estimates indicate +76.3% and +17.5% changes, respectively.
Last Reported Results and Surprise HistorySilicon Motion reported revenues of $342.11 million in the last reported quarter, representing a year-over-year change of +105.5%. EPS of $1.58 for the same period compares with $0.6 a year ago.
Compared to the Zacks Consensus Estimate of $299.49 million, the reported revenues represent a surprise of +14.23%. The EPS surprise was +20.61%.
Over the last four quarters, Silicon Motion surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Silicon Motion is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Silicon Motion. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
TAIPEI, Taiwan & MILPITAS, Calif.--(BUSINESS WIRE)---- $SIMO #ADAS--Silicon Motion Technology Corporation (NasdaqGS: SIMO) ("Silicon Motion"), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced that it has successfully achieved ISO 26262 functional safety process certification for automotive applications. ISO 26262 is the international standard for functional safety in road vehicles, establishing rigorous requirements for the development and valid.
TAIPEI, Taiwan & MILPITAS, Calif.--(BUSINESS WIRE)-- #ADAS--Silicon Motion Technology Corporation (NasdaqGS: SIMO) ("Silicon Motion"), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced that it has successfully achieved ISO 26262 functional safety process certification for automotive applications. ISO 26262 is the international standard for functional safety in road vehicles, establishing rigorous requirements for the development and valid.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Silicon Motion (SIMO - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Silicon Motion currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if SIMO is a promising momentum pick, let's examine some Momentum Style elements to see if this chip company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For SIMO, shares are up 2.52% over the past week while the Zacks Computer - Integrated Systems industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 85.57% compares favorably with the industry's 5.3% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Silicon Motion have risen 101.03%, and are up 304.96% in the last year. In comparison, the S&P 500 has only moved 8.01% and 28.78%, respectively.
Investors should also pay attention to SIMO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. SIMO is currently averaging 1,378,541 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with SIMO.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SIMO's consensus estimate, increasing from $5.79 to $8.37 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that SIMO is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Silicon Motion on your short list.
Some of the best artificial intelligence (AI) stocks have multiplied investors' money in a short amount of time. Sandisk has been the ringleader of this trend, producing more than 3,000% returns over the past year.
However, if you want to find AI stocks that can turn $5,000 into at least $10,000 by 2028, it's best to look for companies that don't receive as much attention. While the first pick on this list is an exception to that rule due to its exciting growth prospects, the other two are relatively obscure.
Image source: Getty Images.
1. Alphabet Alphabet (GOOG 2.23%) (GOOGL 1.95%) has thrust itself into the center of the AI boom. While chipmakers offer the hardware, Alphabet provides software solutions that have attracted consumers and businesses.
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Google ads still bring in most of the revenue and contributed to Google Services sales increasing by 16% year over year in the first quarter. However, Google Cloud was the bigger story. AI enterprise demand resulted in that segment soaring by 63% year over year. That part of the business is a major tailwind that can continue to support revenue acceleration for several quarters.
Alphabet CEO Sundar Pichai told investors that the company's AI investments "are lighting up every part of the business." Gemini is also processing more than 16 tokens per minute, which represents 60% sequential growth. One token is equal to three to four words of input, which does not make it a complete search, but this big uptick indicates rising demand for Alphabet's AI model.
Alphabet has plenty of attractive catalysts in the near term, but it also has Waymo in the background. The autonomous driving segment of Alphabet's corporate profile has expanded and surpassed 500,000 fully autonomous rides per week.
2. Silicon Motion Technology Silicon Motion Technology (SIMO 3.11%) is a memory storage play that has rallied by more than 170% year to date. The company produces NAND flash controllers that are in many memory chips. Micron and Intel are two of the company's largest customers.
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Silicon Motion Technology is posting high sequential revenue growth similar to Micron before its stock took off. The tech company reported 23% sequential revenue growth and 105% year-over-year growth in Q1. High long-term demand for AI and memory chips suggests this cycle will last multiple years. Micron is sold out of advanced memory products through 2027. That's the type of demand driving Silicon Motion Technology's string of solid results.
Silicon Motion Technology posted optimistic guidance for Q2 that implies up to 107% year-over-year revenue growth. It's good to keep in mind that the company crushed its Q1 estimates. Even though Q2 guidance is already good, it's possible Silicon Motion Technology could exceed its targets.
3. Marvell Technology Marvell Technology (MRVL 5.35%) offers data center solutions that act as a key layer in AI infrastructure. The company produces optical components that make it easier to transfer large amounts of data between AI chips. The company also produces its own ASIC chips.
That combination of opportunities helped Marvell Technology generate a record $2.22 billion in revenue for the fiscal 2026 fourth quarter, which ended Jan. 31, 2026. That was a 22% year-over-year growth rate, which paired nicely with net income almost doubling.
Marvell Technology CEO Matt Murphy's remarks in the Q4 press release suggest more of the same moving forward. He told investors to expect accelerated revenue growth for each quarter of fiscal 2027 with bookings "continuing to grow at a record pace."
Marvell hasn't received as much attention as Micron and Alphabet, but the growth stock has more than doubled year to date. Just like Silicon Motion Technology, Marvell Technology seems to be hitting its stride. The company's fiscal 2027 Q1 guidance suggests $2.4 billion in revenue, which represents an 8% sequential improvement.
Many big tech stocks have performed well this year, with Microsoft (MSFT 1.29%) and Meta Platforms (META 2.17%) being the only "Magnificent Seven" stocks down during the past year. Those seven stocks heavily influence the Nasdaq Composite, but finding under-the-radar tech stocks can produce much higher returns.
The three stocks on this list aren't brand names, and most investors aren't paying much attention to them. However, these same growth stocks have outperformed the Nasdaq Composite this year and look poised to continue that trend.
Image source: Getty Images.
1. Iren Iren (IREN 4.63%) is a neocloud provider that produces artificial intelligence (AI) data centers for hyperscalers. Tech companies need AI data centers and energy to scale their AI ambitions, and IREN checks off both boxes. That value proposition helped Iren land a five-year deal with Microsoft for $9.7 billion in exchange for 200 megawatts of capacity.
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Investors had to wait a few months for another deal, but people accumulated Iren shares shortly after the company announced a deal with Nvidia (NVDA 3.39%) for $3.4 billion over five years. This deal includes access to 60 megawatts. Iren recently bought software company Mirantis to help with the deal. This software acquisition should attract more customers and help Iren secure higher margins in the long run.
Megawatts are the name of the game, and since Iren has a 5-gigawatt pipeline, it can generate substantial annual recurring revenue once its sites are energized and ready for business. The company anticipates $3.7 billion in contracted annual recurring revenue by the end of the year, showing that some of the momentum is taking place right now.
Iren recently penetrated European markets with a new AI data center and has also set its sights on the Asia-Pacific (APAC) region.
2. MaxLinear MaxLinear (MXL 0.91%) provides optical interconnect solutions for AI infrastructure. The company's technology helps AI chips communicate with each other and move data seamlessly. It's a better solution than traditional copper wires, which are limited in how much data they can transfer. Data transfer speed is also enhanced with optical interconnects over copper wires.
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This technological advantage is fueling growth for MaxLinear. Its first-quarter results hint at the arrival of sequential growth that helped Micron (MU 3.81%) and Sandisk (SNDK 0.04%) trounce the stock market. I saw this pattern in Silicon Motion Technology (SIMO 3.11%) before it reported Q1 earnings. That stock has tripled year to date.
MaxLinear is exhibiting the same patterns. Although the company's 43% year-over-year revenue growth in Q1 was impressive, that wasn't the most important number. Its infrastructure segment, which is mostly optical interconnects, surged 35% sequentially and jumped 136% year over year.
MaxLinear Chief Executive Officer Kishore Seendripu viewed these results as "the start of a multi-year growth phase" and said that infrastructure has become its "largest end market." He wrapped up his commentary by saying that MaxLinear is positioned for profitability in 2026 and beyond.
That's the same type of language I have heard from multiple AI companies before their shares took off a few months later, including Silicon Motion Technology. MaxLinear's Q2 guidance even offers optimism in this regard, with revenue projected to be $165 million at the midpoint. That's 20% sequential growth if MaxLinear sees its projection through.
MaxLinear is just starting to deliver high sequential growth and it's a key part of the opening the AI bottleneck. It would not shock me if the company exceeds the high end of its forecast in Q2.
3. Innodata Innodata (INOD +1.13%) is a data engineering company that collects and organizes all the data used to train AI models. ChatGPT was the first mainstream AI model in 2022, but several hyperscalers have since released their own AI models.
Innodata works with multiple big tech companies and announced in its Q1 earnings press release that it had secured a new deal with another tech giant. Although the customer wasn't indentified, Innodata said that it could generate as much as $51 million in revenue this year, compared with no revenue from this same customer just one year ago.
That addition is a big deal since Innodata earned $90.1 million in Q1, which was up by 54% year over year. If you spread the $51 million contract over four quarters, it comes to $12.75 million per quarter. Innodata used this contract and its existing customer relationships to raise its forecast. The company now expects 40% revenue growth in 2026.
Innodata's growth is accelerating while diversifying its customer base. The company's CEO, Jack Abuhoff, hinted at this in the Q1 press release.
"For full year 2026, we expect our largest customer to represent a smaller percentage of total revenue even though we expect our absolute dollar revenue with that customer to increase. In Q1, revenue from our other Big Tech customers, in the aggregate, grew 453% year-over-year," Abuhoff said.
TAIPEI, Taiwan--(BUSINESS WIRE)-- #AIStorage--Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced that it will showcase its latest optimized storage innovations for Edge AI, Physical AI, and AI Factory applications at COMPUTEX 2026. As AI architectures rapidly evolve from cloud training to edge inference and autonomous physical AI systems, storage is emerging as a foundat.
TAIPEI, Taiwan--(BUSINESS WIRE)-- #EdgeAI--Silicon Motion Technology Corporation (NasdaqGS: SIMO), a global leader in NAND flash controllers for solid-state storage devices, today announced the SM2524XT, a next-generation PCIe Gen5 DRAMless SSD controller purpose-built for AI inference and KV Cache-intensive workloads. The SM2524XT leverages a new four-processor-core architecture with PCIe Gen5 x4 and NAND interface speeds up to 4,800 MT/s to achieve sequential read speeds up to 14 GB/s and industry-lead.
Delivering Industry-Leading 2.5M IOPS Random Performance for AI Inference and KV Cache Workloads
TAIPEI, Taiwan--(BUSINESS WIRE)--Silicon Motion Technology Corporation (NasdaqGS:SIMO), a global leader in NAND flash controllers for solid-state storage devices, today announced the SM2524XT, a next-generation PCIe Gen5 DRAMless SSD controller purpose-built for AI inference and KV Cache-intensive workloads. The SM2524XT leverages a new four-processor-core architecture with PCIe Gen5 x4 and NAND interface speeds up to 4800 MT/s to achieve sequential read speeds up to 14 GB/s and industry-leading random performance of up to 2.5 million IOPS.
Built on TSMC’s advanced 6nm process technology, the SM2524XT delivers up to 25 percent higher performance per watt compared to the previous generation controller, sustaining peak random I/O throughput even under the most demanding thermal and power constrained conditions. Against the previous generation controller, the SM2524XT improves random performance by up to 25 percent, slashing latency and accelerating response times for the highly fragmented data access patterns that define KV Cache and AI inference workloads.
“KV Cache has become a critical factor in AI inference performance, driving the need for sustained high random read/write throughput and low-latency data access,” said Nelson Duann, Senior VP of Client & Automotive Storage Business at Silicon Motion. “As AI PCs evolve to support increasingly complex Local Agent and on-device LLM workloads, the SM2524XT is designed to deliver the random I/O performance, latency stability, and power efficiency required for next-generation AI storage architectures.”
As on-device AI inference scales in complexity, KV Cache has become the decisive storage bottleneck separating responsive AI PCs from sluggish ones. Unlike conventional consumer SSD workloads, KV Cache generates relentless streams of highly fragmented, latency-sensitive random read/write operations that demand sustained IOPS throughput and rock-solid low-latency performance under continuous load. The SM2524XT was engineered from the ground up to conquer these AI-driven access patterns, maintaining stable random I/O performance even during the most demanding sustained inference sessions.
The SM2524XT integrates Silicon Motion’s Separated Command Address (SCA) technology, advanced FTL scheduling, and NANDXtend LDPC ECC technologies to improve parallel data processing efficiency, reduce latency interruptions, and maintain consistent performance during sustained AI workloads.
For more information, please visit www.siliconmotion.com
About Silicon Motion:
Silicon Motion Technology Corporation (NasdaqGS: SIMO) is the global leader in supplying NAND flash controllers for solid-state storage devices. The company ships more SSD controllers than any other supplier worldwide for servers, PCs, and other edge devices, and is also the leading merchant provider of eMMC and UFS embedded storage controllers used in smartphones, IoT products, and automotive applications.
Silicon Motion delivers customized, high-performance controller solutions for Enterprise SSDs, Edge SSDs, Embedded UFS & eMMC controllers, as well as Enterprise Boot Drives and Ferri solutions for automotive. Its controllers and storage solutions are designed to power the world’s most advanced AI Infrastructure, Edge AI, and Physical AI, combining high performance, low power, and proven reliability.
More News From Silicon Motion Technology Corporation
Silicon Motion (SIMO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this chip company have returned +29.1% over the past month versus the Zacks S&P 500 composite's +6% change. The Zacks Computer - Integrated Systems industry, to which Silicon Motion belongs, has gained 60.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Silicon Motion is expected to post earnings of $1.98 per share, indicating a change of +187% from the year-ago quarter. The Zacks Consensus Estimate has changed +66.7% over the last 30 days.
The consensus earnings estimate of $8.37 for the current fiscal year indicates a year-over-year change of +135.8%. This estimate has changed +44.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.45 indicates a change of +24.8% from what Silicon Motion is expected to report a year ago. Over the past month, the estimate has changed +33.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Silicon Motion is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Silicon Motion, the consensus sales estimate of $401.53 million for the current quarter points to a year-over-year change of +102.1%. The $1.56 billion and $1.84 billion estimates for the current and next fiscal years indicate changes of +76.3% and +17.5%, respectively.
Last Reported Results and Surprise HistorySilicon Motion reported revenues of $342.11 million in the last reported quarter, representing a year-over-year change of +105.5%. EPS of $1.58 for the same period compares with $0.6 a year ago.
Compared to the Zacks Consensus Estimate of $299.49 million, the reported revenues represent a surprise of +14.23%. The EPS surprise was +20.61%.
Over the last four quarters, Silicon Motion surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Silicon Motion is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Silicon Motion. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Key Takeaways Top-ranked stocks ALB, ROAD, STRL, SIMO and MPC show strong earnings-beat potential ahead of results.Positive Earnings ESP, strong surprise history and favorable Zacks Rank boost odds of upside surprises.Consistent earnings outperformance can drive stock gains as investors reward results above expectations. It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
We ran a screener that yielded stocks Albemarle (ALB - Free Report) , Construction Partners (ROAD - Free Report) , Sterling Infrastructure Inc. (STRL - Free Report) , Silicon Motion Technology (SIMO - Free Report) and Marathon Petroleum (MPC - Free Report) as the likely winners on the earnings beat potential.
Why Is a Positive Earnings Surprise So Important?Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading when judging the true health of a company.
On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project the earnings of companies. They, in fact, club their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream, but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release.
The Winning StrategyIn order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that push up the chance of a positive surprise.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.
A handful of criteria has narrowed down the universe from over 7,700 stocks to only 15.
Here are five out of 15 stocks:
Albemarle: The Zacks Rank #1 specialty chemicals company holds leading positions in attractive end markets globally. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of ALB for the past four quarters is 74.50%.
Construction Partners: This is an infrastructure and road construction company. It provides construction products and services to the public and private sectors. The stock has a Zacks Rank #2.
The average earnings surprise of ROAD for the past four quarters is 125.28%.
Sterling Infrastructure:The Zacks Rank #1 company operates through subsidiaries within segments specializing in E-Infrastructure, Building and Transportation Solutions principally in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and the Rocky Mountain States, California and Hawaii.
The average earnings surprise of STRL for the past four quarters is 29.08%.
Silicon Motion Technology: Silicon Motion Technology Corporation is a leading developer of microcontroller ICs for NAND flash storage devices. The stock currently sports a Zacks Rank #1.
The average earnings surprise of SIMO for the past four quarters is 18.61%.
Marathon Petroleum: The company is a leading independent refiner, transporter and marketer of petroleum products.The stock currently has a Zacks Rank #1.
The average earnings surprise of MPC for the past four quarters is 49.50%.
On June 01, 2026, Silicon Motion Technology Corp SIMO shares fell 3.2% to a current price of $268.05. The stock has shown remarkable performance over the past year, with a staggering increase of 346.0%. However, it has also fluctuated significantly within the past 52 weeks, reaching a high of $294.99 and a low of $60.80.
GF Value™ verdict: Current price is $268.05 vs GF Value™ of $110.44, indicating shares are 142.7% overvalued.GF Score™ of 77/100 suggests the stock is above average in quality.Notable signal: Insiders sold $0.4M in shares over the last three months, indicating potential caution among company executives. Is SIMO Overvalued or Undervalued? Silicon Motion Technology Corp's current price of $268.05 contrasts sharply with its GF Value™ estimate of $110.44, indicating that the stock is significantly overvalued by 142.7%. This valuation places SIMO in a precarious position, suggesting that there may be limited upside for investors looking for price appreciation based on fundamental value. The GF Valuation label categorizes the stock as significantly overvalued, which indicates potential risks for investors considering entry at current levels.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With the current price far exceeding the calculated fair value, the margin of safety for investors appears minimal. This raises concerns about the sustainability of the stock's recent price levels, especially given the current market volatility.
How Does SIMO's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)53.3x22.1x (5-Year Median) Forward P/E30.8xN/A The current P/E ratio of 53.3x is substantially above its 5-year median of 22.1x, representing a 141% increase. Furthermore, the forward P/E of 30.8x suggests that even anticipated future earnings would still keep the stock in a premium valuation territory. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that SIMO is overvalued relative to its historical valuation metrics.
What Does SIMO's GF Score™ Tell Us? MetricRating GF Score™77 Financial Strength10/10 Profitability8/10 Growth8/10 Valuation1/10 Momentum6/10 The GF Score™ of 77/100 indicates that Silicon Motion Technology Corp is above average in overall quality. The strongest areas are its Financial Strength, rated 10/10, and Profitability and Growth, both rated 8/10, suggesting a robust financial position and solid earnings potential. However, the Valuation rank of 1/10 signals significant concern regarding its current market price in relation to intrinsic value, indicating that the stock may not provide favorable returns at its present valuation.
What Are Insiders Doing with SIMO Stock? In the past three months, insiders have sold $0.4 million worth of shares, with no reported purchases. This selling activity may suggest a cautious outlook among company executives regarding the stock's future performance. Generally, insider selling can be perceived as a negative signal, as it may indicate a lack of confidence in the company’s current valuation or future growth prospects.
What This Means for Investors Based on the analysis of GF Value™, Silicon Motion Technology Corp is currently overvalued. The significant disparity between the current price and the GF Value™ estimate indicates potential risks for investors considering entry at this level.
For the complete analysis, visit the Silicon Motion Technology Corp SIMO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SIMO's GF Score™?
SIMO has a GF Score™ of 77/100, indicating that it is above average in quality based on key financial metrics.
Is SIMO overvalued or undervalued?
SIMO is currently overvalued, with shares trading at 142.7% above the GF Value™ estimate of $110.44.
What is SIMO's P/E ratio?
SIMO's current P/E (TTM) is 53.3x, which is significantly above its 5-year median of 22.1x, confirming its overvaluation status.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Silicon Motion introduced SM2524XT, a PCIe Gen5 DRAMless SSD controller for AI PCs.SIMO's SM2524XT hits up to 14 GB/s reads and 2.5M IOPS via PCIe Gen5 x4.Silicon Motion targets KV Cache loads with low latency plus SCA, FTL scheduling and LDPC ECC technology. Silicon Motion Technology Corporation (SIMO - Free Report) has introduced the SM2524XT, an advanced PCIe Gen5 DRAMless SSD controller built specifically for artificial intelligence (AI) PCs and AI inference workloads. The new solution reportedly delivers faster data access, lower latency and improved efficiency, supporting the growing performance requirements of next-generation AI applications.
Silicon Motion’s SM2524XT uses a new four-processor-core architecture, PCIe Gen5 x4 connectivity and high-speed NAND interfaces to deliver read speeds of up to 14 GB/s and random performance of up to 2.5 million IOPS. It is built on TSMC's 6nm process technology, offering up to 25% better performance per watt and up to 25% higher random performance than the previous generation, making it well-suited for demanding AI workloads.
The SSD controller addresses the rising storage demands of AI PCs through its high random I/O performance and low-latency capabilities. These features help efficiently handle KV Cache workloads, which generate large volumes of random data access and can create performance hurdles for traditional SSDs. The solution also incorporates technologies such as Separated Command Address, advanced Flash Translation Layer scheduling, and NANDXtend LDPC ECC to enhance reliability and ensure stable operation under demanding conditions.
As AI adoption continues to grow across consumer and enterprise devices, this latest product is likely to strengthen Silicon Motion's position in the rapidly expanding market for high-performance storage solutions for AI computing.
How Are Competitors Advancing in the Storage Market?Silicon Motion faces competition from Seagate Technology Holdings plc (STX - Free Report) and Micron Technology, Inc. (MU - Free Report) . Seagate continues to expand its SSD portfolio to meet growing storage demand from enterprise and AI applications. The company offers enterprise SSDs for high-performance data center workloads. Seagate launched the LaCie Rugged SSD4, a portable SSD that delivers fast data transfer speeds for professional users.
Micron continues to expand its SSD portfolio to support growing demand from AI, cloud and data center customers. The company has introduced SSDs with higher performance and storage capacity to meet increasing data processing needs. These products help strengthen Micron's position in the growing storage market.
SIMO’s Price Performance, Valuation and EstimatesSilicon Motion shares have skyrocketed 312.4% over the past year compared with the industry’s growth of 278.1%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 29.01 forward earnings, higher than 19.49 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 44.6% to $8.37 over the past 60 days, while those for 2027 have also increased 33.5% to $10.45.
Image Source: Zacks Investment Research
Silicon Motion stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways SIMO is gaining share in NAND controllers, with mass production of PCIe NVMe client SSD chips.SIMO rolled out PCIe Gen5 SM2508 on TSMC 6nm, targeting lower power and better efficiency.SIMO targets AI PCs, smartphones and automotive storage; 2026 EPS estimate rose to $8.37. Silicon Motion Technology Corporation (SIMO - Free Report) has emerged as one of the strongest beneficiaries of secular growth trends across the NAND flash storage market. The company continues to expand organically through market-share gains, new product launches and increasing exposure to high-growth end markets such as AI PCs, smartphones, automotive storage and enterprise data centers.
The company is a leading merchant supplier of client SSD (solid state drive) controllers to module makers, including most market leaders in the United States, Taiwan and China. Silicon Motion believes that it is well-equipped to adapt to industry changes with healthy collaborations with flash vendors for developing proprietary controller technology to overcome the existing weakness of 3D NAND and outshine peers. The company has commenced initial sales of 3D SSD controllers to flash partners. It expects this controller to be a significant driver of SSD controller growth over the next year, as NAND Flash partners’ 3D capacity expands.
SIMO Buoyed by Portfolio StrengthThe company has commenced mass production of PCIe NVMe client SSD controllers for flash partners. Accelerated product sales, along with favorable industry trends, portray bright prospects for Silicon Motion. The company has rolled out the world's first PCIe Gen5 client SSD controller, SM2508, leveraging TSMC's 6nm EUV process. This cutting-edge controller is capable of achieving 50% lower power consumption compared to 12nm counterparts, offering up to 1.7x better power efficiency than PCIe Gen4 SSDs.
Silicon Motion has expanded its SSD controller program engagements with PC OEMs and eMMC/UFS controllers for smartphones, automotive applications and IoT/smart devices. The company is adding to this momentum with the upcoming launch of its next-generation enterprise-class SSD controllers. Silicon Motion’s eMMC is showing strong signals of rebound, thereby adding to the strength of its overall embedded storage market that comprises both SSD controllers and eMMC embedded memory. As market trends suggest the balance is tilting from transitioning of eMMC 4.5 toward that of eMMC 5.0, the company foresees lucrative prospects for eMMC 5.1 controller sales.
SIMO’s Key Growth DriversSilicon Motion operates a fabless business model, focusing on chip design while outsourcing manufacturing to foundries like TSMC. Consequently, the company has a low capital investment requirement as it does not require expensive fabrication plants, enabling it to adopt advanced manufacturing nodes quickly, leading to higher margins compared to integrated manufacturers. This enables the company to focus on innovation and product development rather than manufacturing complexity.
The key growth drivers for SIMO include AI and high-performance computing, cloud data centers, automotive storage, smartphones and mobile devices. Each of these end markets is growing fast and offers lucrative growth potential. We believe an expanding customer base and innovative products will act as tailwinds for the company’s top-line growth, going forward. Over the past 10 years, Silicon Motion has shipped more than 5 billion controllers cumulatively – more than any other company in the world. Silicon Motion ships more than 750 million NAND controllers on average every year.
Image Source: Zacks Investment Research
Price PerformanceThe stock has gained a stellar 231% over the past six months compared with the industry’s growth of 139%. It has also outperformed peers like Advanced Micro Devices, Inc. (AMD - Free Report) and International Business Machines Corporation (IBM - Free Report) . Advanced Micro has gained 141.5% and IBM is up 6.9% over this period.
Six-Month Price Performance of SIMO
Image Source: Zacks Investment Research
Estimate Revision TrendEarnings estimates for Silicon Motion for 2026 have moved up 83.6% to $8.37 over the past year, while the same for 2027 has increased 97.2% to $10.45. The positive estimate revision depicts optimism about the stock’s growth potential.
Image Source: Zacks Investment Research
End NoteWith solid fundamentals and healthy revenue-generating potential, driven by robust demand trends, Silicon Motion appears to be a solid investment proposition. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. An asset-light fabless semiconductor model, solid growth exposure to AI, cloud and automotive markets, with increasing market share in SSD and mobile controllers and continuous innovation in storage technologies are key growth drivers for the company.
The stock has a long-term earnings growth expectation of 53.6% and delivered a trailing four-quarter average earnings surprise of 18.6%. Silicon Motion sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Riding on a robust earnings surprise history and favorable Zacks Rank, Silicon Motion appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.
Key Takeaways SIMO is favored now, beating peers on 2026 growth outlook, past-year gains and a slightly lower P/S.SIMO's 2026 consensus: sales 76.3%, EPS 135.8%; EPS estimates 44.6% in 60 days.QCOM's 2026 consensus: sales -2.8%, EPS -10.3%; EPS estimates down 2.3% in 60 days. Qualcomm Incorporated (QCOM - Free Report) and Silicon Motion Technology Corporation (SIMO - Free Report) are leading semiconductor firms with exposure to key growth markets such as smartphones, automotive electronics, AI-enabled devices and data storage. Qualcomm offers high-performance, low-power chip designs for mobile devices, PCs, XR (Extended Reality), automotive, wearables, robotics, connectivity and AI use cases. Its brands include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems and Qualcomm-branded 4G, 5G and IoT equipment. The company is currently pursuing the integration of on-device generative AI into all of its product lines.
Silicon Motion is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers (OEMs) and other customers.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for QCOMQualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is strengthening its foothold in the mobile chipsets market with innovative product launches. Leveraging processors with multi-core CPUs with cutting-edge features, amazing graphics and worldwide network connectivity, Qualcomm Snapdragon mobile platforms are fast with superb power efficiency. Smartphones and mobile devices built with Snapdragon mobile platforms enable immersive augmented reality and virtual reality experiences, brilliant camera capabilities, superior 4G LTE and 5G connectivity with state-of-the-art security solutions. It is currently foraying deeper into the realm of AI capabilities within the laptop and desktop business with the launch of the Snapdragon X chip for mid-range AI desktops and laptops.
The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The company is gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. With seamless access to Autotalks’ comprehensive V2X expertise, Qualcomm has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as 2-wheelers and roadside infrastructure.
Despite efforts to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Qualcomm is expected to face softness in demand in the near term. OEMs based in the communist nation are largely pulling back on new 4G device orders and managing their inventory in advance for the transition to 5G. Consequently, Qualcomm expects an adverse impact on device shipments as sell-in and sell-through growth rates realign and channel inventory levels are drawn down. Qualcomm’s extensive operations in China are further likely to be significantly affected by the U.S.-China trade hostilities.
The Case for SIMOSilicon Motion has established itself as the leading merchant supplier of client SSD (solid state drive) controllers to module makers, including most market leaders in the United States, Taiwan and China. The company believes that it is well-equipped to adapt to industry changes as it has collaborated with flash vendors for developing proprietary controller technology to overcome the existing weakness of 3D NAND and outshine peers. Silicon Motion has commenced initial sales of 3D SSD controllers to flash partners. It expects this controller to be a significant SSD controller growth driver for the next year, as NAND Flash partners’ 3D capacity expands.
Silicon Motion operates a fabless business model, focusing on chip design while outsourcing manufacturing to foundries like TSMC. Consequently, the company has a low capital investment requirement as it does not require expensive fabrication plants, enabling it to adopt advanced manufacturing nodes quickly, leading to higher margins compared to integrated manufacturers. This, in turn, enables the company to focus on innovation and product development rather than manufacturing complexity. The key growth drivers for SIMO include AI and high-performance computing, cloud data centers, automotive storage, smartphones and mobile devices. Each of these end markets is growing fast and offers lucrative growth potential. Over the past 10 years, the company has shipped more than 5 billion controllers cumulatively, more than any other company in the world. Silicon Motion ships more than 750 million NAND controllers on average every year.
However, sluggishness in the global economy is likely to weigh on the company’s wireless and broader semiconductor market. The demand for PCs and smartphones in the end market continues to be soft as numerous suppliers are focusing on reducing their inventory levels. The near-term price fluctuation in the PC market remains a concern. Silicon Motion continues to acquire a large number of companies. While this improves revenue opportunities, business mix and profitability, it adds to integration risks. Moreover, the semiconductor industry is highly dynamic as it is prone to swift technological changes, stiff competition from evolving industry standards and declining average selling prices.
How Do Zacks Estimates Compare for QCOM & SIMO?The Zacks Consensus Estimate for Qualcomm’s fiscal 2026 sales indicates a year-over-year decline of 2.8%, while that for EPS suggests a decrease of 10.3%. The EPS estimates have been trending southward (down 2.3%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Silicon Motion’s 2026 sales indicates a year-over-year rise of 76.3%, while that for EPS suggests growth of 135.8%. The EPS estimates have been trending northward (up 44.6%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of QCOM & ASTSOver the past year, Qualcomm has gained 38.9% compared with the industry’s growth of 91.8%. SIMO has surged 284.4% over the same period.
Image Source: Zacks Investment Research
Silicon Motion looks slightly more attractive than Qualcomm from a valuation standpoint. Going by the price/sales ratio, Qualcomm’s shares currently trade at 5.27 forward sales, higher than SIMO’s 5.22.
Image Source: Zacks Investment Research
QCOM or SIMO: Which is a Better Pick?Qualcomm currently carries a Zacks Rank #4 (Sell).
Silicon Motion sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
While Silicon Motion expects sales and earnings to improve in 2026, Qualcomm expects both metrics to decline. In terms of price performance, Silicon Motion has outperformed Qualcomm and is trading cheaply compared to the latter. With a superior Zacks Rank and favorable metrics, Silicon Motion seems to hold a competitive edge over Qualcomm and is therefore a better investment option at the moment.
Shift4’s Explosive Growth Comes With High-Stakes RiskFiserv NASDAQ: FISV executives used the company’s 2026 Investor Day to outline a medium-term plan aimed at restoring what CEO Mike Lyons described as Fiserv’s historical identity as a “constant compounder,” while acknowledging recent service, product delivery and client retention challenges.
Lyons said the company completed a comprehensive review last fall that identified “real issues” in client service, product delivery, technology resilience and capital allocation, but also confirmed that “the underlying strength of our franchise was intact.” The company’s response is the “One Fiserv” action plan, which Lyons said is anchored in five pillars: client focus, Clover growth, product delivery and innovation, AI-driven transformation through Project Elevate, and disciplined capital allocation.
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The Quiet Infrastructure Play on Small-Bank SurvivalLyons said Fiserv is tracking to its financial expectations and expects the current quarter to mark “the trough in revenue growth,” with revenue growth accelerating into the mid-single digits over the plan period. He said the company continues to benefit from its role as “intelligent technology infrastructure” for financial institutions and merchants, processing nearly 1 billion transactions per day for clients.
Medium-Term Targets Emphasize Revenue Growth, Margins and Cash Flow CFO Paul Todd said Fiserv reaffirmed its full-year 2026 guidance, calling the year a transition period. He said the company expects adjusted revenue to decline in the low single digits in the first half of 2026, followed by 6% to 8% year-over-year growth in the second half, supporting full-year adjusted revenue growth of 1% to 3%.
3 Different Fintech Giants: Turnaround, Stability, or Risky Bet?For the 2026 through 2029 period, Todd laid out a financial framework that includes:
Compounded adjusted revenue growth of 4% to 6% from a 2026 base. Adjusted operating margin above 37% by 2029. More than $13.5 billion of free cash flow from 2027 through 2029. Adjusted earnings per share of more than $12 in 2029. Free cash flow conversion of approximately 90% of adjusted net income. Todd said baseline operating leverage should contribute roughly 150 basis points of adjusted operating margin expansion over three years, while Project Elevate is expected to add more than 200 basis points by 2029 through net cost reductions of $500 million. He said Fiserv expects to use the majority of excess cash for share repurchases while reducing gross leverage toward the low end of its 2.5 times to 3 times target range.
Clover Remains Central to Merchant Growth Plan Takis Georgakopoulos, co-president responsible for Merchant Solutions, said the merchant business processed $4.6 trillion of transactions in 2025 and supports 3.9 million small businesses, including 900,000 Clover merchants. He said Fiserv has been consolidating its merchant infrastructure around Commerce Hub, a cloud-native platform that is live with $200 billion in gross payment volume across 40 markets.
Georgakopoulos said Clover generated $3.3 billion in 2025 revenue across Fiserv’s SMB, processing and enterprise segments. He described the company’s goal as making Clover “the true operating system for small businesses,” supported by hardware updates, vertical software, horizontal value-added services, international expansion and efforts to convert non-Clover SMB clients.
Fiserv expects Clover gross payment volume growth to rise above 10% and reach the upper end of a 10% to 15% medium-term range, Georgakopoulos said. Clover revenue is expected to grow 15% to 20% annually, helped by value-added services, Clover Capital, Clover Savings and conversion of non-Clover clients. Merchant Solutions overall is expected to grow 6% to 8% over the medium term, with enterprise in the mid-single digits and processing roughly flat.
Georgakopoulos also highlighted AI adoption inside the merchant organization, saying 40% of engineers use AI daily and 25% of code is written by AI, with a goal of moving both figures close to 100% by year-end. He said AI is helping Fiserv modernize services, improve speed to market and build products tied to agentic commerce.
Financial Solutions Focuses on Stabilization and Modernization Dhivya Suryadevara, co-president responsible for Financial Solutions, said the segment serves more than 6,000 clients globally across banking, digital payments and issuing. She said the banking business has faced “service and delivery issues,” adding, “We have a service problem, not a technology problem, and it’s very much solvable.”
Suryadevara said Fiserv has committed to no forced core migrations and is moving toward modular, core-agnostic capabilities that clients can adopt on their own timelines. Banking delivers $2.4 billion in revenue and serves more than 3,500 financial institutions, according to Suryadevara, who said Fiserv is number one in U.S. core and digital banking.
In digital payments, Suryadevara said Fiserv generated nearly $4 billion in 2025 revenue and supports payment platforms, consumer payment rails and value-added services. She said 41 of the top 50 U.S. banks use Fiserv’s consumer payment solutions. In issuing, she said the company generated more than $3.3 billion in 2025 revenue and serves 25 of the top 50 U.S. credit issuers and 80% of U.S. private-label issuers.
Financial Solutions is expected to grow adjusted revenue at a 2% to 4% medium-term compound annual rate, Suryadevara said, with banking at or slightly below the low end of the range and payments and issuing toward the higher end.
AI, Embedded Finance and Stablecoin Highlighted as New Growth Areas Executives repeatedly pointed to AI as both a cost-efficiency tool and a product opportunity. Lyons said Fiserv announced a strategic collaboration with OpenAI and is using AI to improve authorization rates, fraud prevention, service, testing and product delivery.
Suryadevara introduced agentOS, a platform in beta that allows financial institutions to deploy AI agents across systems of record with banking-grade controls. She said early pilots include commercial loan onboarding with First Interstate Bank and reporting automation with Boulder Dam Credit Union.
Fiserv also highlighted opportunities at the intersection of Merchant Solutions and Financial Solutions, including embedded finance, a two-sided liquidity network, on-us transactions and data products. Georgakopoulos said Fiserv’s bank- and merchant-friendly stablecoin, FYUSD, is expected to go live this summer and will support use cases such as real-time settlement, cross-border remittances, B2B payouts and programmable money.
As part of its capital allocation review, Fiserv announced plans to sell a majority stake in its ATM servicing and related businesses to Bridgepoint Group for approximately $300 million in after-tax proceeds, while retaining a 49% equity stake in a new joint venture. Todd said the business has an annual revenue run rate of about $200 million, with a flat revenue trajectory and margins similar to Fiserv overall.
About Fiserv NASDAQ: FISVFiserv, Inc, founded in 1984 and headquartered in Brookfield, Wisconsin, is a global provider of financial services technology. The company develops and delivers integrated solutions for payments, processing, risk and compliance, customer and channel management, and business insights and optimization. Serving thousands of clients, Fiserv supports banks, credit unions, securities broker-dealers, leasing and finance companies, and retailers.
Fiserv’s core offerings include account processing systems that automate deposit, lending and transaction processing for financial institutions, as well as digital banking platforms that enable mobile and online banking services.
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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For years, merchant services centered on moving money from cardholder to business. The current earnings season gives proof that business has become far broader, encompassing everything from payments to back-office efficiency.
Across quarterly updates from Block, PayPal, Shopify and Fiserv, executives described merchants grappling with rising operating complexity, fragmented sales channels and pressure to keep customers engaged while managing costs.
The common thread running through the results was that many businesses still want direct relationships and operational support, even as commerce becomes automated and software-driven. The growth revolves around who can become embedded in a merchant’s daily operations.
Small and mid-sized businesses, particularly those managing both physical and digital storefronts, often lack the internal technology resources to stitch together payments, marketing, payroll and financing systems on their own.
Fiserv, for example, used its first-quarter results to emphasize what executives described as a broader operating platform strategy with Clover as a key anchor. Clover gross payment volume rose 12% excluding gateway conversion impacts. Executives also pointed to healthcare and professional services initiatives, along with efforts tied to AI-powered merchant development tools.
During the earnings call, CEO Mike Lyons said businesses want providers that can combine payments, software and workflow management rather than offering isolated products. He also told analysts that Fiserv was “expanding Clover into other verticals such as healthcare and professional services” while deepening capabilities around payroll, accounts payable and software tools for merchants.
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PayPal’s results showed a similar effort to broaden merchant relationships beyond checkout. The company reorganized its business into three segments, including a division focused specifically on payment processing and value-added services.
Executives described merchants as seeking integrated tools that can improve conversion rates, deepen customer relationships and simplify increasingly global commerce operations. PayPal said payment services provider volume growth accelerated to 11%, while enterprise payment volume increased in the mid-teens. The company also pointed to demand for buy now, pay later options and digital wallet adoption among consumers.
Moving Further Into Operations The earnings reports also highlighted a broader change underway in merchant services: Providers are attempting to become operating systems for commerce rather than utilities sitting behind transactions.
Shopify’s quarter illustrated how deeply software, payments and merchant management have become intertwined.
President Harley Finkelstein framed the company’s role as helping merchants manage growing complexity across commerce channels. Executives also repeatedly discussed AI tools designed to assist merchants with automation, marketing and operational management. Shopify said merchants built more than 12,000 custom applications using Sidekick during the quarter.
Block CEO Jack Dorsey described a strategy in which AI tools move from passive assistants to systems that actively help merchants identify operational issues before they worsen. The company’s Managerbot product, aimed at sellers, is designed to identify issues such as rising food costs or staffing inefficiencies.
That dynamic has encouraged providers to bundle more services together.
Fiserv highlighted Clover Capital as one of the growth drivers inside its merchant business.
Shopify’s filings showed the degree to which merchant financing has become embedded in platform economics. The company reported loans and merchant cash advances of $2.1 billion on its balance sheet at the end of the quarter, up from $1.8 billion at year-end 2025. That increase reflected continued expansion of Shopify Capital as merchants seek working capital tied directly to sales activity flowing through the platform.
Executives made clear that lending is becoming part of a broader merchant-retention strategy. Shopify’s Finkelstein said on the earnings call that the company wants to “absorb more of that complexity into our systems and become more valuable to merchants.” In practice, that often includes financing, payments, logistics and operational software delivered through one ecosystem.
Block provided further evidence that merchant lending remains a key offering. In its 10-Q filing, commercial lending tied to Square sellers remains a substantial balance-sheet business. Commercial loans held for investment totaled $456.9 million at the end of the quarter.
Taken together, the earnings reports suggested that merchant lending is no longer being treated as a standalone business line. Providers view credit as part of the broader infrastructure tying merchants to their ecosystems. The more deeply financing becomes embedded into payments flows, payroll management, customer analytics and software operations, the more difficult it becomes for merchants to separate one provider from another.
Ecosystems Become Retention Tools The earnings reports also suggested that merchant ecosystems are becoming central to customer retention strategies.
Rather than scaling transaction by transaction, providers increasingly want merchants operating within closed loops of software, financial products and customer engagement tools. The deeper the integration, the harder it becomes for businesses to leave.
Block’s Neighborhoods initiative illustrated this strategy particularly clearly. The company said sellers representing $320 million in annualized gross payment volume had joined the loyalty and rewards platform by March. The service ties Square sellers directly to Cash App consumers through rewards and local promotions.
PayPal similarly pointed to its “two-sided network” strategy connecting merchants and consumers across checkout, wallets and payment services. Shopify stressed that merchants are relying on the company not just for storefront creation but for logistics, analytics, customer acquisition and operational management.
The broader message is this: Merchant services firms are trying to cement loyalty by becoming indispensable to daily business operations. Payments remain the foundation, but the surrounding services increasingly determine the ecosystem’s expansion.
Global payments and financial services technology provider Fiserv is spinning off its cash-handling operations into a newly formed joint venture with specialist private equity firm Bridgeport Partners.
The transaction will specifically encompass Fiserv’s ATM Managed Services, Cash & Logistics and MoneyPass business lines, according to a Wednesday (May 13) press release. Under the terms of the agreement, which remains subject to customary closing conditions and regulatory approvals, Bridgeport Partners is slated to take over operational control and direct the day-to-day management of these divisions upon closing.
The maneuver aims to pair Fiserv’s client relationships and foundational industry technology with Bridgeport’s track record of scaling financial technology and payments-adjacent platforms, the release said. Bridgeport’s principals bring more than four decades of experience in the banking and payments sector, focusing heavily on “operational excellence” and product innovation within established financial markets.
Moving forward, the two companies will establish a formal governance structure to align on client outcomes and long-term value creation, according to the release. The targeted businesses will remain fully under Fiserv’s operational umbrella until the deal is finalized.
“Fiserv has built strong, durable businesses serving financial institutions, merchants and consumers across the ATM and cash ecosystem,” Fiserv CEo Mike Lyons said in the release. “This agreement reflects our One Fiserv approach, delivering positive client experiences, aligning each business with the operating model and investment best suited to drive growth and client outcomes.”
The move to offload day-to-day management of its ATM and cash logistics divisions follows a challenging financial quarter for Fiserv, which is framing 2026 as a necessary transition period. The payments processor disclosed during an earnings report May 5 that adjusted revenue for the first quarter decreased 2.4% year over year to $4.68 billion, while organic revenue fell by 4%. The company’s financial solutions segment experienced a 6% decline during the quarter.
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During an accompanying earnings call, Lyons pointed to “higher-than-normal” attrition within the core banking segment as a primary hurdle, attributing the client departures to historical customer service issues that the company is working to address.
To stabilize the business and execute its internal One Fiserv strategic plan, the company has recruited external senior executives and is aggressively deploying artificial intelligence to mitigate its banking segment attrition, a strategy that has already reduced the resolution time for client inquiries by 27% compared to the prior year.
By transferring the operational burden of its legacy ATM and cash divisions to Bridgeport Partners, Fiserv seeks to reshape its portfolio to focus resources on resolving its core banking vulnerabilities and expanding high-growth products like its Clover point-of-sale platform.
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MILWAUKEE, May 19, 2026 (GLOBE NEWSWIRE) -- Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology solutions, announced its participation in an upcoming investor conference in June.
Paul Todd, Chief Financial Officer, will represent Fiserv at the RW Baird 2026 Global Consumer, Technology and Services Conference at 3:45 p.m. ET on June 2, 2026.
A live webcast and replay of the presentation will be available on the Investor Relations section of the Fiserv website at investors.fiserv.com.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover®, the world’s smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500® Index and one of TIME Magazine’s Most Influential Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.
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Investor Relations:Stacy DavidsonWalter PritchardChief Communications and Marketing OfficerSenior Vice President, Investor RelationsFiserv, Inc.Fiserv, [email protected]@fiserv.com
Key Takeaways Square is expanding in the restaurant and mid-market segments with POS and commerce tools for sellers.The Hat chose Square's unified commerce platform to support operations across 11 locations and expansion.Square's first-quarter 2026 gross profit rose 9% as payment volume grew 13% amid restaurant momentum. Block’s (XYZ - Free Report) Square is strengthening its presence in the restaurant and mid-market segments through point-of-sale and commerce solutions that help sellers accept payments, manage operations and improve customer engagement. New restaurant-focused offerings, including the early-access Square for Drive-Thru solution, are helping the company gain traction in higher-throughput food and beverage businesses.
A key example is Square’s partnership with The Hat, the restaurant chain known for its pastrami sandwiches. The Hat selected Square as a unified commerce platform to support operations across its 11 locations as it expands beyond California. The company needed real-time operational visibility, standardized workflows and seamless coordination across its restaurant portfolio.
Square for Restaurants addresses these requirements through centralized menu management and unified reporting, enabling leadership to monitor performance across locations and improve operational efficiency. The Hat also uses Square Register, paired with receipt printers and cash drawers, to support high-volume counter service, while Square Marketing helps strengthen customer engagement and loyalty as the brand enters new markets.
Square is seeing similar adoption from other restaurant brands, including Black Seed Bagels, which recently implemented Square’s unified commerce platform across its New York City locations. These product additions and customer wins are contributing to stronger business performance. In first-quarter 2026, Square’s gross profit rose 9% year over year to $982 million, while gross payment volume increased 13% to $61.2 billion, reflecting strong momentum in food and beverage, mid-market and international markets.
How Are Square’s Competitors Fairing?Toast (TOST - Free Report) added two notable enterprise wins: Hungry Howie’s selected Toast for a rollout across roughly 500 locations, using its restaurant technology suite for complex pizza operations, and The Alinea Group chose Toast as its preferred platform across Michelin-starred restaurants and bars, including Alinea, Next, The Aviary and The Office.
Fiserv’s (FISV - Free Report) Clover recently expanded its restaurant offerings with Clover Reserve powered by Tabit, an enterprise-grade POS and hospitality solution for full-service and fine-dining restaurants. The platform adds advanced floor management, tableside service and unified payments, strengthening Clover’s push into complex restaurant operations, similar to Square’s restaurant-focused expansion.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 20.6% over the past year, outperforming the broader industry but underperforming the S&P 500 Index.
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In terms of forward 12-month P/E, XYZ stock is trading at 16.55X, which is at a discount to the Zacks Internet Software industry’s 26.48X.
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Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward 1.1% over the past month. It indicates a significant increase year over year.
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Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block’s Pivot to Profits and AI Is Turning HeadsFiserv NASDAQ: FISV Chief Executive Officer Mike Lyons said the payments and financial technology company is focused on returning to a “constant compounder” profile by sharpening its business mix, improving execution and investing around two major markets: banking and commerce.
Speaking with J.P. Morgan Managing Director and Senior Analyst Tien-Tsin Huang at the firm’s conference, Lyons said Fiserv benefits from providing “mission-critical services” to large markets undergoing structural change, including digital payments, embedded finance, real-time money movement and AI-enabled services.
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Shift4’s Explosive Growth Comes With High-Stakes RiskLyons said the company’s financial model is supported by highly recurring revenue, positive operating leverage, strong free cash flow conversion and a capital allocation approach that remains centered on share repurchases while staying within a 2.5x to 3x leverage range.
He also pointed to recent portfolio actions as examples of Fiserv’s effort to sharpen capital intensity. The company discussed an ATM joint venture with Bridgeport at its Investor Day and sold its education business, a student loan processing operation, which Lyons described as a good business but not strategic to Fiserv’s broader direction.
Fiserv Reaffirms Outlook, Expects Second-Half Acceleration The Quiet Infrastructure Play on Small-Bank SurvivalLyons said the company’s current-year guidance was maintained and acknowledged that it implies faster growth in the second half. He said Fiserv was down “a little” in the first quarter and expected the second quarter to be slightly worse, resulting in a first half down low single digits.
He outlined three drivers of expected second-half improvement: signed contracts coming online, planned activity ramps from existing enterprise clients and product ramps across Clover Capital, Clover Savings, Clover international, XD and CashFlow Central.
Lyons said those factors support a second-half growth range of 6% to 8% and a full-year range of 1% to 3%. He added that excluding approximately two points from new client contract ramps, the second-half rate aligns with the company’s 4% to 6% forward plan.
On the macro environment, Lyons said banks remain in good shape, with sound credit and a focus on improving technology capabilities. On the consumer side, he described the environment as “cautiously optimistic,” noting that consumers are employed and still spending, though Fiserv’s Small Business Index showed spending shifting toward fuel while some discretionary categories declined year over year. Clover data for April remained consistent with the first quarter, with growth of 12% excluding the gateway, he said.
Financial Segment Focuses on Service, Attrition and Product Delivery Lyons said Fiserv’s financial services segment is expected to grow 2% to 4%, with banking at the lower end and issuing and payments at the higher end. He said customer service concerns have been concentrated in the banking segment and centered on three issues: day-to-day service, delayed product delivery and the prior decision to reduce the number of cores from 16 to five.
Fiserv has rebuilt its day-to-day service approach, added resources and re-engaged the consultant community, Lyons said. He also cited the acquisition of Smith Consulting as part of an effort to provide more value-added services to clients.
On product delivery, Lyons said Fiserv has hit every major milestone since its Forum event in September. XD and CashFlow Central are in implementation mode, core enhancements are being completed and Core Advanced remains on time, he said.
Lyons also said Fiserv has stopped forced conversions and is now emphasizing a “journey approach” to core conversions, using a more modular strategy to help clients modernize over time.
Gross attrition in the financial services business has roughly doubled, creating a 75 to 100 basis point headwind, Lyons said. He said Fiserv expects attrition to return to more normalized levels by the end of its medium-term plan in 2029, supported by better service, product delivery and offerings such as StoneCastle, agentOS and data center modernization.
Clover Growth Plan Includes Value-Added Services and International Expansion Lyons said Clover’s 10% to 15% gross payment volume growth framework is built around a 10% organic growth base, with the potential to reach 15% if Fiserv succeeds in converting non-Clover customers to Clover or adding Clover value-added services to those customers.
He said Clover has consistently grown in the 8% to 12% range in recent years and identified several drivers to sustain growth, including horizontal and vertical value-added services, healthcare through PracticePay, professional services, restaurant offerings, international expansion and distribution through ISOs, ISVs, banks and a direct sales force.
Lyons said international markets now account for more than 20% of Clover volume, with Japan expected to come online later this year and into 2027. He also said the company sees room to improve customer retention and the back-end experience.
For non-Clover merchant customers, Lyons said the business has been stable for a long time. He said those customers are generally satisfied Fiserv clients, and the company will take a targeted approach to offering services such as Clover Savings and Clover Capital without forcing major hardware or platform changes.
Merchant Platform, STAR and Business Synergies Lyons said Fiserv is building a unified gateway across enterprise clients, platform clients and Clover. Commerce Hub is live with $200 billion in volume across 40 countries, he said. He also highlighted Fiserv’s enterprise point-of-sale position, Finxact ledger capabilities, backend processing scale and data assets as advantages in competing across e-commerce and omnichannel payments.
Asked about STAR, Lyons described Fiserv’s debit networks, STAR and Accel, as a strong example of synergy between the merchant and financial services businesses. He said the combined networks represent the third-largest player and allow Fiserv to serve issuers while also routing transactions through its acquiring capabilities.
Lyons said STAR has “strategic optionality,” including potential relevance for on-us settlement, global opportunities and future payments use cases tied to demand deposit accounts and merchants.
Lyons also defended keeping Fiserv’s merchant and financial services businesses together following a strategic review. He cited existing synergies in bank distribution of Clover, acquiring networks, biller products and fraud data, as well as future opportunities in stablecoin, embedded finance and on-us settlement.
AI Push Centers on Agent OS Lyons said Fiserv has received strong feedback on agentOS, which he described as an operating system for banks. He said banks want to use AI but face challenges because they operate in highly regulated environments involving compliant and personally identifiable information.
He said agentOS is intended to bridge the needs of banks and AI providers by allowing agents to be deployed in a safer, more controlled way. Lyons said Fiserv sees potential for agentOS to create value for customers and open addressable markets that previously were not on the company’s radar.
About Fiserv NASDAQ: FISVFiserv, Inc, founded in 1984 and headquartered in Brookfield, Wisconsin, is a global provider of financial services technology. The company develops and delivers integrated solutions for payments, processing, risk and compliance, customer and channel management, and business insights and optimization. Serving thousands of clients, Fiserv supports banks, credit unions, securities broker-dealers, leasing and finance companies, and retailers.
Fiserv’s core offerings include account processing systems that automate deposit, lending and transaction processing for financial institutions, as well as digital banking platforms that enable mobile and online banking services.
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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Experian has teamed with Fiserv to help merchants stem the tide of artificial intelligence (AI)-powered fraud.
The collaboration involves the addition of real‑time debit card verification for Experian Link, the company’s payment authentication tool, Experian said in a news release Wednesday (May 27).
“As AI accelerates the speed and sophistication of fraud, merchants need precise, instant verification that confirms the customer behind a payment is truly who they say they are without introducing added friction,” said Kathleen Peters, chief innovation officer, fraud and identity at Experian North America.
“By integrating Fiserv’s proprietary debit card data into Experian Link alongside our robust identity and fraud insights, clients can further reduce false declines, lower fraud rates and confidently approve more legitimate customers,” Peters added.
Experian Link will leverage Fiserv’s VerifyNow Advantage with newly improved verification capabilities that determine bank account and debit card ownership verification in real time.
The release noted that the collaboration is happening at a time when generative artificial intelligence (AI) tools are helping fraudsters expand their attacks and mimic consumer behavior, putting more pressure on merchants to tighten risk controls.
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But these controls can trigger more false declines, unintentionally blocking legitimate customers, a problem that costs merchants billions per year, the release said.
“Merchants need real‑time intelligence they can trust as payment fraud grows more sophisticated and AI further blurs the line between real and synthetic behavior,” said Dennis Becker, senior vice president of fraud, data and analytics solutions at Fiserv. “By combining debit card verification from Fiserv with Experian’s identity insights and analytics, we’re enabling merchants to validate payments faster and with greater accuracy, strengthening fraud defenses without adding friction for customers.”
As PYMNTS wrote earlier this week, the problem of false declines is compounded by the rise of agentic AI, as “the consumer may never directly participate in the checkout process.”
That report gave the example of an AI assistant authorized to reorder household goods, compare airline pricing or put together a shopping basket across merchants.
“If the transaction is declined because the purchase pattern appears unusual, the consumer may never see a checkout screen or receive context around the rejection,” PYMNTS wrote. “The failed authorization becomes invisible friction. Repeated enough times, it weakens trust not only in the merchant or issuer but in the AI workflow itself.”
False declines are also tough to diagnose in an agentic environment because the transaction path itself can change. Traditional disputes often center around a shopper recognizing a failed purchase and trying again.
“Agentic systems may abandon the attempt, substitute another merchant or alter the purchase decision without intervention,” PYMNTS wrote.
NEW YORK and SAN FRANCISCO, May 28, 2026 (GLOBE NEWSWIRE) -- Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial technology, and Cognition, the AI agent lab, today announced a strategic partnership to deploy Cognition’s AI software engineer, Devin, to accelerate the modernization of core banking technology and shorten the time it takes for new capabilities to reach Fiserv financial institution clients. By shortening release cycles and strengthening platform performance, the partnership supports Fiserv’s ability to deliver innovation at speed, while maintaining stability, security, and resilience.
Modernization is among the most significant and historically slowest initiatives in financial services. Devin is uniquely suited to accelerate this work, operating at scale across complex codebases. Fiserv plans to deploy Devin across core platform modernization and other strategic engineering initiatives — executing complex engineering work in parallel and accelerating the pace at which Fiserv ships new capabilities to clients. As part of the deployment, Fiserv is also strengthening governance and security controls for AI-assisted development to help protect the integrity of the software lifecycle.
This partnership builds on Fiserv's broader commitment to embed AI across its technology operations and product development in ways that translate into tangible client value. Devin's ability to take on end-to-end engineering tasks including understanding codebases, writing, and testing code, and iterating autonomously, extends engineering capacity so teams can focus on delivering high-quality improvements that matter most to clients, from shipping enhancements, strengthening quality checks, to improving platform resilience.
The collaboration reflects Fiserv's strategy to bring AI into every part of how it serves financial institutions — from the technology and engineering that power Fiserv platforms, to the operations that support them.
"Speed matters more than ever in banking, and our clients are counting on us to deliver. With Devin, we can accelerate modernization of the platforms our clients run their business on, ship new capabilities faster, and free our teams to focus on the work that matters most," said Dhivya Suryadevara, Co-President of Fiserv.
"Fiserv is exactly the kind of organization where Devin creates compounding value — massive scale and an engineering organization that has ambitious goals for what it needs to build and maintain," said Russell Kaplan, Co-Founder and President, Cognition. "We are proud to partner with Fiserv to help teams deliver measurable improvements, so clients see faster access to new capabilities, more consistent releases, and continued focus on quality and security."
Fiserv is among a growing number of financial services organizations deploying Devin to accelerate product delivery, modernize platforms, expand automated testing, and strengthen governance for AI-assisted development ensuring innovation reaches clients faster and more reliably.
About Cognition
Cognition is the leading AI software engineering company and makers of Devin, the world's first AI software engineer. Devin works end-to-end on complex engineering tasks — planning, coding, testing, and iterating autonomously — enabling teams to scale their engineering capacity without scaling headcount. Cognition is partnered with leading enterprises across financial services, technology, and beyond. Learn more at cognition.ai.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, is a global leader uniting commerce and finance. At the intersection of banking and commerce, the company powers sustained growth and innovation at scale for financial institutions and businesses worldwide across payments, account processing, digital banking, merchant acquiring, network services, e-commerce, and Clover®, the all-in-one business management platform. Fiserv is a member of the S&P 500® Index and one of FORTUNE® America’s Most Innovative Companies. Visit fiserv.com and follow on social media for more information and the latest company news.
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Chase Wallace
Senior Director, Communications
470-481-2555 [email protected]
Payments and financial technology provider Fiserv is teaming with AI agent lab Cognition.
The collaboration will see the companies use artificial intelligence (AI) software engineer, Devin, to modernize core banking technology and shorten the time it takes for new capabilities to reach Fiserv financial institution customers, Fiserv said in a Thursday (May 28) news release.
“Modernization is among the most significant and historically slowest initiatives in financial services,” the release added.
“Devin is uniquely suited to accelerate this work, operating at scale across complex codebases. Fiserv plans to deploy Devin across core platform modernization and other strategic engineering initiatives — executing complex engineering work in parallel and accelerating the pace at which Fiserv ships new capabilities to clients.”
The release said the partnership builds on Fiserv’s broader effort to embed AI into its technology operations and product development to help clients.
Devin’s engineering abilities — such as understanding codebases, writing and testing code, and iterating autonomously — extends engineering capacity so teams can concentrate on things like shipping enhancements, strengthening quality checks, and improving platform resilience, the news release added.
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“Speed matters more than ever in banking, and our clients are counting on us to deliver,” said Dhivya Suryadevara, co-president of Fiserv.
“With Devin, we can accelerate modernization of the platforms our clients run their business on, ship new capabilities faster, and free our teams to focus on the work that matters most.”
The partnership comes one day after Cognition announced it had raised $1 billion in a new funding round, valuing the company at $26 billion. The startup said it would use the new funding to continue expanding Devin.
“We launched Devin two years ago as the first AI software engineer,” Cognition said in its announcement. “Since then, cloud agents have gone from niche to mainstream, and today they are the fastest growing way to create software.”
Meanwhile, Fiserv earlier this month announced an agentic AI operating system designed for banking, as well as a collaboration with OpenAI to put frontier AI to work at financial institutions.
The new operating system, agentOS, was created to help financial institutions deploy, manage and scale AI agents across their workflows.
“Banks have spent years building the data pipes,” PYMNTS wrote soon after. “This week, the industry confronted what happens when AI agents start running through them: who builds the infrastructure, who sets the rules and who captures the value.”
See More In: AI, B2B, B2B Payments, banking, banking technology, Cognition, Fiserv, News, PYMNTS News, What's Hot, What's Hot In B2B
Block’s Pivot to Profits and AI Is Turning HeadsFiserv NASDAQ: FISV President and CEO Mike Lyons said the payments and financial technology company is working to restore what he described as its historically predictable, mid-single-digit revenue growth profile after a difficult year for investors.
Speaking at a Bernstein-hosted discussion with senior analyst Harshita Rawat, Lyons said Fiserv’s review of its franchise last fall found that, excluding post-COVID cyclical benefits, the company’s growth profile looked more like its pre-pandemic pattern. He said the review also identified areas requiring action, including client service, product delivery, technology resilience and capital allocation.
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Shift4’s Explosive Growth Comes With High-Stakes Risk“We know the last year has been difficult for our investors, and we don’t take that lightly,” Lyons said. He added that the review confirmed what management views as the underlying strength of Fiserv’s core businesses, including number one positions in digital banking, core banking, issuer processing and payments, along with leading positions in small business payments and enterprise.
Management Emphasizes “One Fiserv” Plan and AI Lyons said the company launched its “One Fiserv Action Plan,” centered on a client-first mindset and five pillars intended to address operational issues and support growth. He said the effort has included leadership changes, greater accountability, cultural shifts, employee engagement and a broader embrace of artificial intelligence.
The Quiet Infrastructure Play on Small-Bank SurvivalLyons said Fiserv has built a leadership team that is roughly half new and half existing across an expanded group of about 40 to 50 leaders. He highlighted Dhivya Suryadevara, who leads financial services, and Takis Georgakopoulos, who leads merchant services, and said attrition among the company’s best-performing employees is at record low levels based on measurable history.
On AI, Lyons described a three-part approach: generating more revenue, reducing costs and improving client experience. He said AI is helping Fiserv turn its “systems of record” into “systems of greater value” through better data, higher authorization rates, lower fraud rates, data products and more personalized offers. He also cited opportunities in servicing, operations, application development and faster product delivery.
Lyons pointed to Fiserv’s OpenAI partnership announced at its Investor Day and said the company also reached a formal agreement with Cognition to use Devin, its software engineering agent, to help modernize core systems in Fiserv’s financial services business.
AgentOS Positioned as Bridge Between Banks and AI Agents Lyons discussed agentOS, a product introduced at Fiserv’s Investor Day that is designed to help banks safely deploy AI agents and connect agents to bank systems. He said banks have raised concerns about allowing agents into core systems and personally identifiable information, while agent developers often do not want to handle regulated data directly.
Fiserv’s role, Lyons said, is to sit between banks and agents, managing items such as data masking, access controls and “kill switches.” He said agentOS includes an agent marketplace where third parties, banks, Fiserv or even competitors could create agents for bank use cases.
The product was co-developed with six banks, Lyons said, and two beta versions are live. He said Fiserv has received significant inbound interest from both banks and agent developers since Investor Day. Lyons said agentOS is not included in the company’s medium-term guidance but could expand Fiserv’s market opportunity in workflow automation and value-added banking services.
Clover Growth Remains Central to Merchant Strategy In merchant solutions, Lyons said Clover is central to Fiserv’s path toward 6% to 8% revenue growth in the segment. The company has laid out targets of 10% to 15% volume growth and 15% to 20% revenue growth for Clover.
Lyons said the 10% organic volume growth target is based on Clover’s performance since 2022, when quarterly growth has generally ranged from 8% to 12% and averaged about 10%. He said incremental upside could come from converting non-Clover small and midsize business customers to Clover.
Growth drivers include greater horizontal capabilities, vertical expansion, international growth, improved customer experience and broader distribution, Lyons said. He cited Clover Capital, Clover Savings, ADP and Homebase as horizontal opportunities, and said Fiserv recently launched healthcare and professional services offerings. He also highlighted international growth in Canada and Brazil and said Japan is coming online with Visa and SMCC as partners.
Lyons said international volume now represents more than 20% of total Clover volume and is growing faster from a smaller base. He also said Fiserv has extensive distribution through approximately 3,000 independent sales organizations and 1,000 banks.
Fiserv’s non-Clover small business base remains a significant opportunity, Lyons said, with about $4 billion of revenue, 1.8 million SMBs and roughly $700 billion in gross payment volume. He described the base as stable and generally satisfied, saying Fiserv intends to be thoughtful about conversions rather than forcing customers to migrate.
Financial Services Focuses on Core Stabilization and Payments Lyons said Fiserv’s core banking business has faced higher-than-desired attrition tied to past client service issues, missed product deadlines and forced conversions. He said the company has reversed course by supporting all cores, investing in client-facing personnel and technology, adding value-added services, and giving clients more choice in modernization paths.
He said management expects a gradual path from 2026 to 2029 toward more normalized attrition, noting that current results reflect decisions made in prior years because of long-dated contracts.
In digital payments, Lyons described the business as just under $4 billion in revenue and said Fiserv serves 41 of the 50 largest U.S. banks for payments. He said end markets remain healthy, supported by real-time, digital and embedded payment trends. Fiserv is working to unify multiple payment solutions into broader platforms for individual and business payments, with an intelligence layer to help determine the best payment method.
Lyons also discussed issuer processing, a roughly $3.3 billion revenue business, saying Fiserv has 25 of the 50 largest issuers and eight of the top 10 private-label issuers. He said the company is modernizing Optis, its major issuer platform, while developing Vision Next as a modern card core intended for embedded finance, international expansion and new issuing clients.
Emerging Opportunities Include Deposits, Stablecoins and Data Lyons said Fiserv’s acquisition of StoneCastle supports the Fiserv Deposit Network, which connects cash holders with banks seeking deposits through fully FDIC-insured accounts. He said Clover merchants will be able to move idle cash through the Clover Dashboard into StoneCastle’s network to seek competitive rates, while banks can access insured operating deposits.
He also said StoneCastle brought stablecoin and cryptocurrency custody capabilities. Fiserv has created FIUSD, a stablecoin intended to help banks meet future regulatory requirements and offer stablecoin and fiat wallets within a single demand deposit account. Lyons said FIUSD is expected to go live in July, with an initial publicly announced use case in North Dakota involving bank-to-bank money movement through the Roughrider Coin, a white-label version of FIUSD.
Asked what investors may misunderstand about Fiserv, Lyons said the company is not trying to recover from a permanent loss of competitive position after a drop from double-digit growth. Instead, he characterized the post-COVID growth period as the anomaly and said Fiserv is trying to reclaim its historical identity as a mid-single-digit revenue grower that generates cash and double-digit earnings-per-share growth.
He also said investors may underestimate the revenue and cost opportunities from AI and the potential synergies from Fiserv’s mix of banking, issuing, large merchant and small merchant businesses.
About Fiserv NASDAQ: FISVFiserv, Inc, founded in 1984 and headquartered in Brookfield, Wisconsin, is a global provider of financial services technology. The company develops and delivers integrated solutions for payments, processing, risk and compliance, customer and channel management, and business insights and optimization. Serving thousands of clients, Fiserv supports banks, credit unions, securities broker-dealers, leasing and finance companies, and retailers.
Fiserv’s core offerings include account processing systems that automate deposit, lending and transaction processing for financial institutions, as well as digital banking platforms that enable mobile and online banking services.
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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Banks spent years treating core modernization as a lengthy infrastructure project. Dhivya Suryadevara believes artificial intelligence may alter that timetable.
In a conversation with PYMNTS CEO Karen Webster, the Fiserv co-president described AI as a practical tool for rewriting operational workflows, simplifying implementations and modernizing aging banking systems without forcing financial institutions into wholesale platform replacements.
Suryadevara joined Fiserv after senior leadership roles at Stripe, General Motors and UnitedHealth Group. She said the scale of Fiserv’s banking and payments franchise, combined with its access to data and distribution, made the company well positioned for the AI age.
“What struck me right away is just the sheer scale that Fiserv has on the banking side, as well as the merchant side,” Suryadevara said.
The discussion centered on what Suryadevara called the company’s “stabilize, attach and grow” strategy, a framework she said applies primarily to the banking segment of the business. The stabilization effort focuses on servicing, operational resiliency and execution after periods of disruption tied to client support and technology incidents.
Fiserv has committed more than $150 million toward service improvements and technology resiliency initiatives spanning 2025 and 2026.
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The broader objective is modernization without forcing banks into abrupt platform overhauls. Suryadevara said banks increasingly want the ability to modernize individual systems, such as teller functions or digital capabilities, while remaining on existing cores.
That philosophy also extends into payments and issuer processing, two businesses she described as among Fiserv’s strongest franchises. The payments unit includes debit processing, Zelle and account-to-account payment capabilities, while the issuer business remains anchored in credit card processing.
AI now sits at the center of that modernization effort.
Suryadevara said the technology is helping accelerate work that previously consumed years, particularly in areas such as legacy code conversion, implementations and servicing operations. She pointed to advances in rewriting COBOL-based systems and simplifying implementation processes that historically required large amounts of manual work.
“It’s about rewriting entire workflows for the AI era,” she said.
Rather than applying AI incrementally to existing processes, Suryadevara argued banks should reconsider whether entire steps can be removed altogether. She described implementations as one example where AI can materially reduce operational friction and shorten conversion timelines.
The conversation also explored agent-based banking systems, including Fiserv’s Agent OS initiative. Suryadevara described the platform as a governed operating layer that allows banks to deploy AI agents while maintaining policy controls, auditability and regulatory oversight.
The system is designed to support three categories of agents: Fiserv-developed agents, bank-developed agents and third-party agents delivered through a marketplace model.
Those agents are aimed at operational workflows tied to areas such as compliance, fraud management, reporting and deposit servicing. Suryadevara said banks are increasingly interested in using AI to automate repetitive operational work while preserving governance controls required in regulated industries.
The push arrives as banks face mounting pressure to modernize infrastructure while preserving existing customer relationships and operational continuity. Earlier PYMNTS coverage of Fiserv’s issuer business framed that transition as a shift away from treating processing as invisible back-office plumbing and toward viewing it as a strategic layer tied to data, credentials and decisioning.
Suryadevara suggested AI may further raise the stakes because banks increasingly need systems capable of supporting real-time data access, automated workflows and emerging payment models.
“There’s such an opportunity to deploy AI and simplify workflows at scale, but also in a very responsible, compliant way,” she said.
Additional Takeaways
Fiserv notes that banks increasingly want open API ecosystems that allow them to integrate FinTech partners and third-party services without losing control of core infrastructure. Suryadevara said AI is already being used inside servicing operations to resolve client tickets before they reach human agents. The company sees agent marketplaces as a future business opportunity because banks may increasingly purchase workflow-specific AI tools through governed platforms. Dhivya Suryadevara is co-president at Fiserv, where she oversees the company’s financial solutions business.
PYMNTS CEO Karen Webster is one of the world’s leading experts in payments innovation and the digital economy, advising multinational companies and sitting on boards of emerging AI, healthtech and real-time payments firms, including a non-executive director on the Sezzle board, a publicly traded BNPL provider. She founded PYMNTS.com in 2009, a top media platform covering innovation in payments, commerce and the digital economy. Webster is also the author of the NEXT newsletter and a co-founder of Market Platform Dynamics, specializing in driving and monetizing innovation across industries.
NEW YORK, June 02, 2026 (GLOBE NEWSWIRE) -- Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology, today announced at Snowflake Summit 26, that it has been named the 2026 Financial Services Product Partner of the Year by Snowflake, the AI Data Cloud company. The award recognizes the financial services product partner whose application, solution, or offering delivered the strongest industry-specific value on Snowflake through differentiated capabilities, customer relevance, and measurable business impact.
Fiserv earns this recognition for its achievements leveraging Snowflake AI Data Cloud, helping customers eliminate data silos and transform fragmented payments information into actionable business intelligence.
"Data is the lifeblood of the modern economy, but its true value lies in accessibility and action," said Sanjay Saraf, Chief Product Officer, Merchant Solutions, at Fiserv. "Being named Snowflake’s Financial Services Product Partner of the Year validates our commitment to helping clients unlock greater value from their data. By providing more ways for merchants to access and use payments data, Fiserv can transform transactions into strategic assets, empowering informed decisions, accelerate growth, and confidently navigate the evolving landscape of commerce."
By integrating its significant proprietary data ecosystem with Snowflake to deliver Data-as-a-Service, Fiserv enables enterprise merchants to securely share and access payments data in real time. This approach minimizes unnecessary data movement and reduces operational overhead, allowing clients to concentrate on leveraging data for business outcomes rather than managing complex pipelines.
In addition, Fiserv offers thousands of financial institutions streamlined access to their data via the Snowflake platform, helping them gain insights, personalize services, and advance AI use across banking, cards, and payments solutions.
"Fiserv is a great example of how leaders in the financial services industry leverage the Snowflake AI Data Cloud to drive tangible value for the enterprise," said Amy Kodl, SVP, Worldwide Alliances & Channels at Snowflake. "By providing a governed, scalable foundation for payments data, Fiserv allows our joint customers to bypass traditional pipeline bottlenecks and move straight to innovation. Their approach to Data-as-a-Service is a blueprint for how companies can use timely data and AI to stay lean while remaining incredibly competitive."
In addition to Data-as-a-service, Fiserv offers access to payments data through pre-built dashboards, APIs, and BI tools to support a wide range of analytics and reporting needs across the company.
Learn more about Fiserv and Snowflake here. Check out keynotes from Snowflake Summit 2026 live or on-demand here and stay on top of the latest news and announcements from Snowflake on LinkedIn and X.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover®, the world’s smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500® Index and one of TIME Magazine’s Most Influential Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.
Media Relations:
Torrie Miers
Director, Communications - Merchant Solutions
Fiserv, Inc.
+1-470-669-5181 [email protected]
MILWAUKEE, June 03, 2026 (GLOBE NEWSWIRE) -- Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for May 2026, indicating that U.S. small business sales growth in May was driven primarily by higher average ticket sizes amid persistent cost pressures, while consumer foot traffic continued to soften.
The seasonally adjusted Index remained at 144. Small business sales rose (+0.7%) year over year, driven by average tickets that climbed +3.1% compared with 2025. Transactions declined (-2.4%) year over year, marking the seventh consecutive month of declining foot traffic. Compared with April, sales were flat (+0.0%) and transactions declined slightly (-0.2%).
“We saw a continuation of recent trends in May: stable overall sales, rising average tickets, and softer consumer activity as households adjust to increasing costs,” said Prasanna Dhore, Chief Data Officer, Fiserv. “Services remained the strongest contributor to sales growth, full-service restaurants outperformed limited-service and higher fuel costs continued to impact many businesses.”
Key Takeaways
Restaurant sales continue to fight for growth
Sales declined (-0.6%) year over year but accelerated slightly (+0.6%) compared with April. Higher prices continued to shape results, with average tickets up +3.0% year over year. Transactions fell -3.6%, marking a sixth consecutive month of year over year declines. Limited-Service Restaurants led the slowdown, with sales down -3.4% year over year and foot traffic falling -5.4%. Full-Service Restaurants showed relative strength, with sales rising +1.5% year over year, supported by stable foot traffic (+0.2%) and modest average ticket growth (+1.3%).
Elevated gasoline prices continue to impact multiple categories
Gas Station sales grew +22.9% year over year and +1.2% month over month, due entirely to higher average tickets. Rising fuel costs likely contributed to average ticket growth across multiple service segments, including Professional Services, Transportation and Warehousing, and Administrative Support Services.
Retail remained stable overall, with modest divergence between Core and Non-Core
Total retail sales increased +0.1% year over year but declined -0.5% month over month. Transactions were flat year over year and softened -0.6% compared with April. Core Retail sales were soft (-0.1% year over year; -0.5% month over month). Retail transactions did not grow (0.0%) but average tickets rose +0.9%. Much of this reflects trade-offs consumers are making as retail essentials like gasoline have surged in price, driving consumers to find savings in other retail categories, such as Grocery, which fell -3.3% compared with 2025.
Essentials continued to show steady growth
Sales increased +0.9% year over year as average tickets rose +4.3%. Discretionary categories also expanded (+0.6%) year over year, with average tickets up +2.6%. Transactions declined across both segments, though the pattern was consistent, indicating consumers are seeking to mitigate cost pressures wherever they can.
Goods stabilize while Services growth remains price-led
Goods sales edged up +0.1% YoY with stable transactions (0.0%) and modest ticket growth (+0.2%). Services expanded +1.0% year over year, supported by +4.2% average ticket growth, while transactions declined -3.2%, a clear indication that price continues to drive overall sales growth.
To access the full Fiserv Small Business Index, visit fiserv.com/FiservSmallBusinessIndex.
About the Fiserv Small Business Index®
The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across approximately 2 million U.S. small businesses, including hundreds of thousands leveraging the Clover point-of-sale and business management platform.
Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Featuring the most detailed classification available, the Fiserv Small Business Index provides visibility into 56 standardized level-6 national industries across 26 subsectors and 13 sectors, allowing users to track sales trends with precision and understand the diverse dynamics shaping the U.S. small business economy.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, is a global leader uniting commerce and finance. The company powers sustained growth and innovation at scale for financial institutions and businesses worldwide across payments, account processing, digital banking, merchant acquiring, network services, e-commerce, and Clover®, the all-in-one business management platform. Fiserv is a member of the S&P 500® Index and one of FORTUNE® America’s Most Innovative Companies. Visit fiserv.com and follow on social media for more information and the latest company news.
For more information contact:
Media Relations:
Chase Wallace
Director, Communications
+1 470-481-2555 [email protected]
A month has gone by since the last earnings report for Fiserv (FISV - Free Report) . Shares have lost about 1.8% 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 Fiserv due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Fiserv, Inc. before we dive into how investors and analysts have reacted as of late.
Fiserv Beats Q1 Earnings EstimatesFiserv has reported mixed first-quarter 2026 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the same.
FISV’s adjusted earnings of $1.79 per share beat the Zacks Consensus Estimate of $1.57 by 14% but declined 16.4% from the year-ago quarter.
Revenue performance was softer. Adjusted revenues were $4.68 billion, missing the consensus mark of $4.76 billion by 1.7% and decreasing 8.9% year over year. Still, Fiserv pointed to stable underlying account and volume trends, with Clover's annualized gross payment volume (GPV) of $324 billion and 12% growth excluding the previously disclosed gateway conversion.
FISV's Revenue Pressure Tied to Prior-Year ComparablesFiserv’s reported GAAP revenues were $5.03 billion, down 2% from the prior-year period. A key mechanical driver behind the gap between GAAP and adjusted revenues remained postage reimbursements, which reduced revenues by $352 million in the quarter.
On an organic basis, revenues declined 4% year over year. Management noted that year-over-year revenue growth was impacted by prior-period comparables, while describing the broader operating environment as stable across both Merchant Solutions and Financial Solutions.
Fiserv's Merchant Business Holds Ground, Clover Adds MomentumMerchant Solutions revenues were essentially flat year over year at $2.37 billion. Within the segment, Small Business revenues rose 1% to $1.61 billion and Enterprise revenues increased 2% to $512 million, while Processing revenues declined 9% to $252 million.
Clover remained a notable bright spot in activity metrics. The company reported annualized first-quarter Clover GPV of $324 billion, with overall GPV up 12%, excluding the gateway conversion (9% as reported). Value-added services (VAS) penetration was 27% and VAS revenues increased 18%. Management also cited 7% Small Business volume growth and 8% Enterprise transaction growth during the quarter, with April Clover volume trends consistent with first-quarter levels.
Softness in FISV Financial Solutions’ Weighs on Organic ResultsFinancial Solutions revenues fell 5% year over year to $2.30 billion. The pressure was broad-based. Digital Payments revenues decreased 5% to $947 million, Issuing revenues dropped 5% to $769 million and Banking revenues declined 4% to $586 million.
Operational indicators were steadier than revenue trends implied, suggesting a mix-and-timing headwind rather than a sharp deterioration in usage. Fiserv cited low-single-digit growth in debit processing transactions and global accounts on file in Issuing. Zelle transactions grew at a high-teen rate, while Finxact reported more than 70% growth in accounts and positions. CashFlow Central also continued to scale, with 19 wins in the quarter for a total of 174 since launch and 11 live clients.
Fiserv's Margin Compression Reflects Expense Mix & ProgramsProfitability stepped down meaningfully from the prior year. The GAAP operating margin was 18.3% versus 27.2% in the first quarter of 2025, reflecting a higher expense base even as revenues dipped. The segment-level GAAP operating margin also declined to 26.4% in Merchant Solutions from 34.2% a year ago and to 38.1% in Financial Solutions from 47.5%.
On an adjusted basis, the operating margin was 29.7% compared with 37.8% in the year-ago quarter. The quarter included costs tied to the company’s One Fiserv transformation program, severance, merger and integration activity, and acquisition-related intangible amortization, while benefiting from a net gain on the sale of assets tied to a sale-leaseback of certain facilities.
FISV's Cash Flow & Buybacks Stay ActiveFiserv generated $599 million in net cash from operating activities, down from $648 million in the prior-year quarter. The free cash flow was $259 million versus $371 million a year ago, reflecting lower operating cash generation and higher capital investment.
Capital expenditure totaled $458 million in the quarter, which management characterized as in line with expectations. The company also remained in repurchase mode, buying back 3.3 million shares for $200 million during the quarter. In the earnings presentation, management described the balance sheet as strong, with leverage tracking to plan.
Fiserv's 2026 Guidance Unchanged, With EPS Boost From TaxesFiserv reaffirmed its 2026 outlook, expecting organic revenue growth of 1-3% and adjusted earnings per share of $8.00-$8.30. The company also reiterated expectations for an adjusted operating margin of about 34% and a free cash flow conversion of roughly 90% of adjusted net income.
A notable feature of the quarter was a tax-driven lift to profitability. The first quarter included a net $254-million income tax benefit related to the release of various foreign valuation allowances, partially offset by $74 million of other discrete tax items, contributing to a lower effective tax rate.
In the earnings presentation, Fiserv quantified the discrete tax impact as a 17-cent benefit to adjusted earnings per share versus results calculated at the midpoint of its anticipated adjusted annual effective tax rate range.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresCurrently, Fiserv has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Fiserv has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
The debate over stablecoin regulation has always had a deeper question underneath it.
Do blockchain-based payment systems become an extension of the banking sector or remain permanently adjacent to it?
The Federal Deposit Insurance Corp.’s proposed GENIUS Act framework may not answer that question, but it is starting to draw the lines.
The comment period for the FDIC’s proposed implementation of the GENIUS Act closed Tuesday (June 9) after drawing hundreds of pages of responses from banks, FinTechs, industry groups and other stakeholders. The central dispute is whether stablecoin reserves are fundamentally different from other custodial deposits and who bears the consequences if they are not.
The FDIC’s rulemaking will not answer those questions by itself. However, it may establish the framework that determines which institutions are best positioned to answer them.
Read also: Crypto Embraces Regulator-in-the-Loop Strategy as Federal Rules Roll Out
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Drawing a Line Between Stablecoins and Bank Money The GENIUS Act was designed to solve a regulatory challenge that has frustrated policymakers for years. Congress wanted a framework that would permit dollar-backed stablecoins while preventing them from becoming synthetic bank deposits carrying implicit government guarantees.
The FDIC framework establishes reserve, liquidity, custody, redemption and operational standards for FDIC-supervised issuers while clarifying how tokenized deposits fit within the banking system. The framework effectively draws a line between speculative cryptocurrency activity and payment infrastructure. Stablecoin issuers would be limited to a narrow set of activities centered on issuance, redemption, reserve management and custody. They would face strict reserve requirements and limitations on activities that could introduce risk into the system. The message is that stablecoins can become part of the financial mainstream, but only if they start behaving more like utilities than startups.
The proposal would clarify that deposits held as reserves backing stablecoins would be insured as deposits of the stablecoin issuer itself rather than insured on a pass-through basis to individual stablecoin holders. That position has triggered opposition from parts of the banking and payments industries.
In its Tuesday comment letter, Fiserv said the FDIC’s approach breaks with longstanding deposit-insurance principles. A “deposit structure-specific framework” would better align with both the GENIUS Act and existing deposit insurance law than a blanket prohibition on pass-through coverage. If regulators reject that approach, they in effect reinforce a bright-line distinction between traditional bank deposits and privately issued digital dollars.
See also: Why Stablecoins Are a Money Story, Not a Consumer Story
The Bigger Story May Be Tokenized Deposits While much of the public debate focuses on stablecoins, the more significant long-term development may be the FDIC’s treatment of tokenized deposits. The proposal explicitly distinguishes payment stablecoins from deposits recorded on distributed ledger technology. That distinction may prove critical because it points toward a future in which banks themselves issue blockchain-based versions of traditional deposits, a future that PYMNTS CEO Karen Webster flagged earlier this January in a piece on tokenized deposits.
For years, stablecoins have flourished largely because existing banking infrastructure was not designed for programmable, internet-native payments. Tokenized deposits offer a different model. They are digital money issued directly by regulated banks while retaining the legal and regulatory characteristics of deposits.
On Thursday (June 4), it was reported that JPMorganChase, Bank of America, Citi, Wells Fargo and other major commercial banks plan to launch a tokenized deposit network in the first half of 2027, operated by The Clearing House, the real-time payments company co-owned by the same banks.
Increasingly, the debate is not whether assets should be tokenized but whether regulators will treat tokenization as a technological upgrade or as a fundamentally different category of financial activity.
Read also: Stablecoins Are Just Wildcat Banking With Better Wi-Fi
Why the Banking Industry Wants Regulators to Slow Down One of the more revealing responses to the proposal came not from crypto companies but from major banking trade associations. In a joint filing, industry groups asked regulators to delay the comment process until the Office of the Comptroller of the Currency finalizes its own GENIUS Act framework. The reason is that the various stablecoin rulemakings are interconnected.
The groups said the pending Treasury, FDIC and anti-money-laundering proposals remain “substantively tethered” to the OCC’s still-unfinished framework. Moving ahead without greater coordination risks creating overlapping or inconsistent standards for institutions operating across multiple regulatory jurisdictions.
If different agencies establish divergent requirements for similar activities, financial institutions will inevitably structure themselves around whichever regulatory framework proves most advantageous. The resulting arbitrage is precisely what lawmakers sought to avoid when creating a federal stablecoin framework in the first place.
See also: A Stablecoin History Lesson: The Messy Origins of the Internet’s ‘Digital Dollar’
The Real Prize Is Control of Payment Infrastructure The PYMNTS Intelligence and Citi report “Chain Reaction: Regulatory Clarity as the Catalyst for Blockchain Adoption” found that blockchain’s next leap will be shaped by regulation. At stake is the future structure of payments, deposits, settlement infrastructure and the boundary between traditional banking and blockchain networks.
For banks, the proposal represents a defensive challenge and a strategic opportunity. For FinTechs, it signals growing federal acceptance of blockchain-based financial infrastructure. For regulators, it marks the beginning of the more difficult task of incorporating programmable money into the financial system without importing the instability that accompanied earlier crypto markets.
Will the future belong to nonbank stablecoin issuers holding reserves inside the banking system? Will banks dominate through tokenized deposits? Or will the two models converge into a hybrid structure where the distinctions become increasingly difficult to see?
The real question, after all, is no longer whether digital dollars will exist. They already do. It is who will issue them.
NASHVILLE, Tenn., March 18, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced that three scientific abstracts highlighting its commercial products VEVYE® (cyclosporine ophthalmic solution) 0.1% and ILEVRO® (nepafenac ophthalmic suspension) 0.3% have been accepted for presentation at the American Society of Cataract and Refractive Surgery (ASCRS) 2026 Annual Meeting, taking place April 10–13 at the Walter E. Washington Convention Center in Washington, D.C.
The accepted research underscores Harrow’s continued commitment to advancing evidence-based treatment options for ophthalmic diseases, including dry eye disease and post-cataract surgery complications.
The abstracts will be presented in the following scientific sessions:
Ocular Surface Disease
Date: Saturday¸ April 11, 2026
Time: 8:00 AM – 9:30 AM
VEVYE: Real-World Treatment Patterns and Clinical Outcomes with Cyclosporine 0.1% in Semifluorinated Alkane for Dry Eye Disease Presenter: A. Epitropoulos, MD VEVYE: Dual-Function Cyclosporine 0.1% in Perfluorobutylpentane as an Alternative to Corticosteroids in Post-Fungal Keratoplasty Presenter: T. Shoshany, MD Medications (Preoperative, Postoperative, Intraoperative)
Date: Sunday, April 12, 2026
Time: 8:00 AM – 9:30 AM
ILEVRO: Post-Hoc Analysis of the Effect of Nepafenac 0.3% on Reducing Clinically Significant Visual Acuity Loss Associated with Cataract Surgery in subjects with Macular Edema Presenter: I. Mac, MD The ASCRS Annual Meeting is one of the world’s premier gatherings for ophthalmic surgeons and ophthalmic professionals, showcasing the latest clinical research, surgical techniques, and therapeutic innovations in ophthalmology.
Additional details regarding the abstracts and supporting data will be available at the time of presentation.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward-looking statements.” Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general, including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing facility in New Jersey; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
Contacts:
Mike Biega
Vice President of Investor Relations and Communications [email protected]
617-913-8890
NASHVILLE, Tenn., March 24, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced that it intends to offer, subject to market and certain other conditions, an additional $50.0 million in aggregate principal amount of its 8.625% senior unsecured notes due 2030 (the "2030 Notes"). The 2030 Notes will be guaranteed on a senior unsecured basis by the Company’s existing and future wholly-owned domestic restricted subsidiaries and any of its other restricted subsidiaries that guarantees or co-issues any of its indebtedness or any indebtedness of any of its subsidiaries that guarantees the 2030 Notes, subject to certain exceptions. The 2030 Notes will be issued as additional notes under the same indenture governing the $250,000,000 aggregate principal amount of 2030 Notes that were issued on September 12, 2025 (the “Existing Notes”), will be treated as a single series with the Existing Notes and will have the same terms as the Existing Notes other than with respect to the date of issuance and the issue price.
Harrow intends to use the net proceeds from this incremental issuance for general corporate purposes, which may include initiatives to accelerate growth (e.g., new product launches), funding upcoming product development activities, future strategic business development opportunities, and related investments.
The 2030 Notes and the related guarantees have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities or blue sky laws. Accordingly, the 2030 Notes and the related guarantees are being offered only to persons reasonably believed to be “qualified institutional buyers,” as that term is defined under Rule 144A of the Securities Act, or outside the United States to non-“U.S. persons” in accordance with Regulation S under the Securities Act.
A confidential offering memorandum for the Offering, dated as of today, is being made available to such eligible persons. The Offering is being conducted in accordance with the terms and subject to the conditions set forth in such confidential offering memorandum.
This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer, or solicitation to buy, if at all, will be made only by means of a confidential offering memorandum.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including, without limitation, statements regarding the Offering and the expected use of proceeds therefrom. These statements are based on currently available operating, financial, economic and other information, and are subject to a number of significant risks and uncertainties. A variety of factors, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: changes in market conditions, negotiation of final transaction documents, changes in operations, business, financial or other conditions relevant to the planned transactions, and other execution risks related to the completion of the transactions described herein, as well as other risks detailed in our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, we may not be able to complete the potential transactions on terms expected or at all, and our actual results may differ significantly from those expected or implied by our forward-looking statements. These and other risks are detailed in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this press release to reflect future events or circumstances, except as required by applicable law. We qualify any and all of our forward-looking statements by these cautionary factors.
Contact:
Mike Biega
Vice President of Investor Relations and Communications [email protected]
617-913-8890
Opaleye Management Inc, a 10% Owner of Harrow (HROW +7.29%), reported the indirect sale of 198,572 shares of common stock in multiple open-market transactions on March 3 and March 4, 2026, for a total value of approximately $7.8 million, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (indirect)198,572Transaction value$7.8 millionPost-transaction shares (indirect)3.7 millionPost-transaction value (indirect ownership)$125.1 millionTransaction value based on SEC Form 4 weighted average prices ($39.15 on March 3; $39.67 on March 4); post-transaction value based on March 4, 2026 market close ($34.00).
Key questionsWas the transaction executed via direct or indirect ownership, and what entities were involved? All shares were disposed of indirectly through Opaleye, L.P. and a separately managed account, with Opaleye Management Inc. acting as investment manager and portfolio manager, respectively. No direct share transactions occurred.Does Opaleye Management Inc. retain a material position in Harrow following this transaction? Yes. Following the sale, Opaleye L.P. holds 3,622,000 shares and the managed account holds 59,428 shares, for a combined indirect position of approximately 3.68 million shares.Company overviewMetricValueMarket capitalization$1.3 billionRevenue (TTM)$272.3 millionNet income (TTM)-$5.1 million1-year price change*19.7%*1-year price change calculated as of March 23, 2026.
Company snapshotHarrow is a leading ophthalmic pharmaceutical company focused on the discovery, development, and commercialization of eye-care products for the North American market. Its portfolio of branded products includes VEVYE for dry eye disease, IHEEZO for ocular anesthesia, and TRIESENCE for ocular inflammation, as well as ImprimisRx, its ophthalmology-focused compounded medications division.
The company generates revenue through the sale of branded and specialty ophthalmic drugs and compounded pharmaceutical products. Primary customers include ophthalmologists, outpatient surgical centers, hospitals, and specialty healthcare providers. Harrow reported full-year 2025 revenue of $272.3 million -- a 36% increase over 2024 -- and guided 2026 revenue to a range of $350-$365 million.
What this transaction means for investorsOn its face, a sale of nearly $8 million worth of stock sounds like a significant vote of no-confidence -- but the context here is more nuanced.
The timing is worth noting. Harrow reported Q4 2025 earnings on March 2 -- the day before Opaleye began selling. The company missed analyst EPS estimates by a wide margin, and the stock dropped sharply. Selling into that kind of post-earnings weakness looks more like opportunistic profit-taking after a strong prior run than a fundamental change in outlook.
More importantly, the sale needs to be weighed against what Opaleye still holds. The fund retains approximately 3.7 million shares across Opaleye L.P. and its managed account -- a position that, based on Harrow's diluted share count as of Q4 2025, still represents close to 10% of the company. That’s a substantial retained stake by any measure, and it is consistent with Opaleye's long-standing role as one of Harrow's most prominent institutional backers.
Opaleye Management is a Boston-based hedge fund focuses on small- and mid-cap healthcare companies. Funds like this sell for a wide variety of reasons -- portfolio rebalancing, redemption pressure, or simply locking in gains after a strong run. The 198,572 shares sold here represent roughly 5% of Opaleye's total pre-sale HROW position, which is a meaningful trim but far from an exit. Opaleye’s substantial remaining position suggests this is far more likely a tactical adjustment than a strategic retreat.
NASHVILLE, Tenn., March 24, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced the pricing of its private offering (the “Offering”) of $50.0 million aggregate principal amount of 8.625% senior unsecured notes due 2030 (the “2030 Notes”). The 2030 Notes will be guaranteed on a senior unsecured basis by the Company’s existing and future wholly-owned domestic restricted subsidiaries and any of its other restricted subsidiaries that guarantees or co-issues any of its indebtedness or any indebtedness of any of its subsidiaries that guarantees the 2030 Notes, subject to certain exceptions. The Offering is expected to close on March 27, 2026, subject to customary closing conditions.
The $50.0 million aggregate principal amount of 2030 Notes will be issued as additional notes under the same indenture governing the $250,000,000 aggregate principal amount of 2030 Notes that were issued on September 12, 2025 (the “Existing Notes”) and will be treated as a single series with the Existing Notes and will have the same terms as the Existing Notes, other than with respect to the date of issuance and the issue price. The 2030 Notes bear interest at a rate of 8.625% per annum and will mature on September 15, 2030. Interest on the 2030 Notes will be payable semi-annually in cash in arrears on March 15 and September 15 of each year. Interest on the 2030 Notes will be deemed to have accrued from March 15, 2026, which was the last interest payment date for the Existing Notes, and will be payable beginning on September 15, 2026. The $50.0 million aggregate principal amount of 2030 Notes will be issued at an offering price of 100.25% of the principal amount thereof plus accrued interest from March 15, 2026.
Harrow intends to use the net proceeds from this incremental issuance for general corporate purposes, which may include initiatives to accelerate growth (e.g., new product launches), funding upcoming product development activities, future strategic business development opportunities, and related investments.
The 2030 Notes and the related guarantees have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities or blue sky laws. Accordingly, the 2030 Notes and the related guarantees are being offered only to persons reasonably believed to be “qualified institutional buyers,” as that term is defined under Rule 144A of the Securities Act, or outside the United States to non-“U.S. persons” in accordance with Regulation S under the Securities Act.
A confidential offering memorandum for the Offering, dated as of today, is being made available to such eligible persons. The Offering is being conducted in accordance with the terms and subject to the conditions set forth in such confidential offering memorandum.
This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer, or solicitation to buy, if at all, will be made only by means of a confidential offering memorandum.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including, without limitation, statements regarding the Offering and the expected use of proceeds of the Offering. These statements are based on currently available operating, financial, economic and other information, and are subject to a number of significant risks and uncertainties. A variety of factors, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: changes in market conditions, negotiation of final transaction documents, changes in operations, business, financial or other conditions relevant to the planned transactions, and other execution risks related to the completion of the transactions described herein, as well as other risks detailed in our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, we may not be able to complete the potential transactions on terms expected or at all, and our actual results may differ significantly from those expected or implied by our forward-looking statements. These and other risks are detailed in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this press release to reflect future events or circumstances, except as required by applicable law. We qualify any and all of our forward-looking statements by these cautionary factors.
Contact:
Mike Biega
Vice President of Investor Relations and Communications [email protected]
617-913-8890
JPMorgan Chase & Co. lowered its position in Harrow, Inc. (NASDAQ:HROW – Free Report) by 53.9% during the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 36,167 shares of the company’s stock after selling 42,246 shares during the quarter. JPMorgan Chase & Co. owned about 0.10% of Harrow worth $1,743,000 at the end of the most recent quarter.
Several other institutional investors have also recently made changes to their positions in the company. Penn Capital Management Company LLC bought a new position in shares of Harrow in the third quarter worth $15,717,000. Verition Fund Management LLC bought a new position in Harrow in the third quarter valued at $296,000. Scientech Research LLC bought a new position in Harrow in the third quarter valued at $731,000. Luxor Capital Group LP bought a new position in Harrow in the third quarter valued at $14,807,000. Finally, Larson Financial Group LLC increased its stake in Harrow by 848.2% in the third quarter. Larson Financial Group LLC now owns 2,162 shares of the company’s stock valued at $104,000 after acquiring an additional 1,934 shares during the last quarter. Institutional investors own 72.76% of the company’s stock.
Harrow Stock Performance NASDAQ HROW opened at $35.43 on Wednesday. The company has a 50-day simple moving average of $41.75 and a two-hundred day simple moving average of $43.05. The company has a quick ratio of 2.06, a current ratio of 2.20 and a debt-to-equity ratio of 4.67. Harrow, Inc. has a 12-month low of $20.85 and a 12-month high of $54.85. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of -208.40 and a beta of 0.31.
Analyst Ratings Changes HROW has been the topic of a number of research analyst reports. Nomura cut Harrow to a “neutral” rating in a research note on Wednesday, March 18th. William Blair reissued an “outperform” rating on shares of Harrow in a research note on Tuesday, March 3rd. B. Riley Financial reissued a “buy” rating and issued a $65.00 target price (down from $74.00) on shares of Harrow in a research note on Tuesday. Cantor Fitzgerald reduced their target price on Harrow from $94.00 to $91.00 and set an “overweight” rating on the stock in a research note on Wednesday, March 4th. Finally, BTIG Research reissued a “buy” rating and issued a $63.00 target price on shares of Harrow in a research note on Wednesday, March 18th. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $69.86.
Read Our Latest Stock Report on Harrow
Harrow Company Profile (Free Report)
Harrow Health, Inc (NASDAQ: HROW) is a U.S.-based commercial-stage biopharmaceutical company specializing in ophthalmic therapeutics and diagnostics. The company focuses on the development, manufacturing and distribution of proprietary, generic and branded eye care products designed to treat a range of ocular conditions, including glaucoma, ocular hypertension, dry eye disease and other anterior segment disorders.
Through its wholly owned affiliate ImprimisRx, Harrow Health offers a direct-to-physician model for customized formulations as well as low-cost generic alternatives.
Read More Five stocks we like better than Harrow Want to see what other hedge funds are holding HROW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Harrow, Inc. (NASDAQ:HROW – Free Report).
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On April 13, 2026, Harrow Inc HROW shares rose 3.3% to a current price of $37.10. This price movement is situated within a 52-week range of $21.12 to $54.85, indicating notable volatility over the past year.
GF Value™ verdict: HROW is currently priced at $37.10, which is 18.4% below the GF Value™ estimate of $45.49.GF Score™ is 86/100, which suggests strong potential for long-term returns based on the stock's underlying fundamentals.Most notable signal: Insiders sold $8.1 million in HROW stock over the last three months, indicating a lack of confidence from those closest to the company. Is HROW Overvalued or Undervalued? Evaluating Harrow Inc's current price in relation to its GF Value™, the stock appears to be undervalued by 18.4% based on the GF Value™ estimate of $45.49. This margin of safety presents a potential opportunity for investors seeking stocks with a favorable risk-reward profile. Furthermore, the GF Valuation label classifies HROW as "Modestly Undervalued," which supports the notion that the stock could be priced lower than its intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, investors should be cautious, as the financial strength rating of 4/10 indicates some vulnerability, and the prediction model shows only 1 star for predictability. These factors suggest that, while there is an opportunity for upside, there are also risks involved, particularly if the company faces operational challenges or market fluctuations in the near term.
How Does HROW's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)77.3x30.3x Harrow Inc's current forward P/E of 77.3x is significantly higher than its 5-year median P/E of 30.3x. This suggests that the stock is trading above its historical valuation metrics. The P/E analysis indicates an inconsistency with the GF Value™ verdict, as a higher P/E typically signifies overvaluation in relation to historical performance. Investors may want to consider this discrepancy when assessing the stock's future potential.
What Does HROW's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
MetricRating GF Score™86 Financial Strength4/10 Profitability5/10 Growth10/10 Valuation8/10 Momentum8/10 Harrow Inc’s GF Score™ of 86/100 reflects strong growth potential, with a perfect growth rank of 10/10 and solid valuation rank of 8/10. However, the financial strength score of 4/10 highlights a weakness that may raise concerns about the company's stability. Overall, while HROW exhibits promising growth and valuation metrics, its financial strength could be a limiting factor in its long-term performance.
What Are Insiders Doing with HROW Stock? In the past three months, insiders at Harrow Inc have sold $8.1 million worth of shares without making any purchases. This pattern of selling can often be interpreted as a signal of lack of confidence in the company's future performance, which may warrant caution for potential investors. Insider selling can indicate that those with the most knowledge about the company believe that the stock may not be a favorable investment at current levels.
What This Means for Investors Based on the GF Value™ assessment, Harrow Inc HROW is currently undervalued. However, investors must weigh this opportunity against the potential risks indicated by weak financial strength and significant insider selling. The overall outlook suggests a need for careful monitoring of the company's operational performance and market environment.
For the complete analysis, visit the Harrow Inc HROW stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is HROW's GF Score™?
HROW's GF Score™ is 86/100, which indicates a strong potential for long-term returns based on the stock's fundamentals.
Is HROW overvalued or undervalued?
HROW is considered undervalued, with its current price of $37.10 being 18.4% below the GF Value™ estimate of $45.49.
What is HROW's P/E ratio?
HROW's current forward P/E is 77.3x, which is significantly above its historical 5-year median P/E of 30.3x, indicating it is trading at a higher valuation compared to its past performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Harrow is rated a 'Strong Buy' with a fair value of $73.25, implying 104% upside from current levels (~$35.90). I project robust long-term growth driven by Vevye, Iheezo, and pipeline assets, despite recent short-term guidance disappointment and market volatility. I model a bit conservatively, with peak sales, a 32–45% EBIT margin for 2029–2035, and an 11.3% WACC, giving undervaluation even under some risk scenarios.
, /PRNewswire/ -- LogiCare3PL today announced it has been selected by Harrow, Inc. (Nasdaq: HROW) as a distribution partner for Harrow's portfolio of ophthalmic disease management solutions. Effective February 1, 2026, LogiCare3PL is providing both non-title and 3PL title distribution services, supporting distribution of Harrow's products across the U.S. market.
LogiCare3PL was selected for its high-touch service model, proven ability to execute quickly and efficiently, and commitment to building a long-term partnership. These capabilities were essential in supporting Harrow's need for rapid onboarding and market readiness.
This partnership enables faster, more cost-effective market access for Harrow's products, while maintaining a high level of engagement and support from the LogiCare3PL team. LogiCare3PL successfully onboarded Harrow within just four weeks, meeting Harrow's implementation timeline and ensuring business continuity.
Kevin Kissling, VP/GM 3PL Services for LogiCare3PL, commented: "We are proud to partner with Harrow and support their broad portfolio of ophthalmic disease management solutions. At LogiCare3PL, we are committed to delivering on every promise we make and developing solutions that meet each manufacturer's specific needs. Harrow and LogiCare3PL's shared focus on flexibility, customer-centricity, and rapid execution makes this collaboration especially meaningful."
The agreement, effective February 1, 2026, covers LogiCare3PL's full suite of 3PL services, including non-title logistics support and title distribution for Harrow's products. Both organizations anticipate continued collaboration as Harrow expands its product offerings.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.
About LogiCare3PL
LogiCare3PL, a BioCare company, is a trusted pharmaceutical third‑party logistics partner serving emerging and mid‑sized biopharmaceutical manufacturers. Specializing in specialty, rare, and ultra‑rare disease therapies, LogiCare3PL delivers tailored, end‑to‑end solutions including time‑ and temperature‑sensitive logistics, centralized warehousing, financial services, regulatory compliance and licensing support, advanced data analytics, and comprehensive manufacturer and customer care. Through an integrated, compliant, and reliable approach, LogiCare3PL ensures products move securely from manufacturer to market. With unmatched reliability and expertise, LogiCare3PL sets the standard for precision and trust in pharmaceutical logistics.
Media Contact:
BioCare, Inc.
Barbara Pantazopoulos
VP Marketing & Communications
[email protected]
biocare-us.com
Reimbursement for Office-Based Utilization to Begin in July 2026 April 16, 2026 07:00 ET | Source: Harrow, Inc.
NASHVILLE, Tenn., April 16, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced that IOPIDINE® 1% (apraclonidine hydrochloride ophthalmic solution) has been assigned a permanent J-Code (J2374) by the Centers for Medicare & Medicaid Services (CMS). Effective July 1, 2026, IOPIDINE 1% will be reimbursed when administered in the in-office setting.
J-Codes are CMS billing designations that allow physicians to be reimbursed directly for drugs administered in their offices. The assignment of a permanent J-Code removes a longstanding practical barrier to routine use of IOPIDINE 1% for office-based procedures, making it administratively and economically feasible for physicians to incorporate IOPIDINE 1% into standard glaucoma and ophthalmic laser procedure workflows.
Addressing a Well-Defined Clinical Need
IOPIDINE 1% is the only FDA-approved product indicated to prevent intraocular pressure (IOP) spikes following ophthalmic procedures, including in-office laser procedures such as Yttrium Aluminum Garnet (YAG), Nd capsulotomy, selective laser trabeculoplasty (SLT), argon laser trabeculoplasty (ALT), laser peripheral iridotomy (LPI), and others. With its established efficacy and safety profile, IOPIDINE 1% is positioned to be the front-line standard of care—administered at the time of the procedure – to help mitigate risk before IOP elevations occur.
IOP spikes — sudden, acute elevations in pressure inside the eye — are a recognized complication of these procedures. In patients who experience significant spikes, symptoms can include sudden eye pain, blurred vision, nausea, and, in vulnerable patients, optic nerve damage. Prophylactic use of IOPIDINE 1% has been shown to reduce severe IOP spikes from approximately 23% in untreated patients to approximately 2% — a roughly 91% relative risk reduction.i
Dr. Ben Gaddie, OD, added, “Optometrists are the front-line physicians diagnosing and managing glaucoma in the United States, and increasingly, performing laser procedures such as YAGs, SLTs, and LPIs. I am thrilled to now have reimbursed access to an on-label therapy to best ensure my patients are protected from intraocular pressure spikes. I truly appreciate Harrow’s commitment to helping my patients gain affordable access to sight-preserving products like Iopidine 1%.”
“This is ultimately about removing friction—for physicians and for patients,” said Dr. Jason Bacharach, MD. “As a glaucoma specialist, having a reimbursed, in-office option means I can treat patients in real time as I am counseling my patients about the worrisome potential effects of not controlling their eye pressure. For many patients, especially those patients new to navigating their glaucoma diagnosis, that first experience sets the tone. Making therapy accessible at that moment can have a meaningful impact on adherence, outcomes, and peace of mind.”
With the J-Code now issued and effective as of July 1, 2026, Harrow believes physicians will have both the clinical and economic rationale to make prophylactic IOP management a consistent part of their procedural care.
A Growing Market with Room for Adoption
Aside from the greater than 4 millionii American glaucoma patients who are regularly seen in clinics, in-office laser procedures represent a large and expanding segment of ophthalmic care. More than 1.5 millioniii ophthalmic laser procedures are performed annually in the United States, a figure that continues to grow as the population ages and earlier intervention becomes standard practice.
The J-Code designation establishes the reimbursement infrastructure to support broader and more consistent utilization of IOPIDINE 1% over time. Preventing IOP spikes also has the potential to reduce overall healthcare costs by minimizing the need for additional follow-up visits, urgent interventions, and the risk of complications that may require more complex procedures.
"Every decision we make around the time of a procedure matters,” said Dr. Kyle Linsey, DO, Cataract and Refractive Surgeon. “When I can administer a proven pressure-lowering therapy immediately following a procedure—especially for high-risk patients—it’s a game-changer for my practice protocols. It gives both the physician and the patient confidence that we’re starting from a position of control, not uncertainty. It’s a must-have for high-risk patients after a laser procedure."
“We are excited to deliver this wonderful news on IOPIDINE 1%, the first of the three Specialty products I highlighted earlier this year in my Letter to Stockholders,” said Mark L. Baum, Chief Executive Officer of Harrow. “This permanent J-Code represents an opportunity to ensure more patients in need have access to a medicine that can protect and preserve their vision. IOPIDINE 1% has a long-established and highly differentiated clinical profile, and now, with assured reimbursement from use in the physician’s office, the elimination of longstanding reimbursement friction is expected to drive broader, more consistent adoption—and is a particularly natural complement to IHEEZO® for so many office-based procedures requiring an anesthetic.”
About IOPIDINE® 1% (apraclonidine hydrochloride ophthalmic solution) as base
Indications and Usage
IOPIDINE 1% Ophthalmic Solution is indicated to control or prevent post-surgical elevations in IOP that occur in patients after argon laser trabeculoplasty, argon laser iridotomy or Nd:YAG posterior capsulotomy.
Important Safety information
CONTRAINDICATIONS
IOPIDINE 1% Ophthalmic Solution is contraindicated for patients receiving monoamine oxidase inhibitor therapy and for patients with hypersensitivity to any component of this medication or to clonidine
WARNINGS AND PRECAUTIONS
Since IOPIDINE 1% Ophthalmic Solution is a potent depressor of IOP, patients who develop exaggerated reductions in IOP should be closely monitored. Although the acute administration of two drops of IOPIDINE 1% Ophthalmic Solution has minimal effect on heart rate or blood pressure in clinical studies evaluating patients undergoing anterior segment laser surgery, the preclinical pharmacologic profile of this drug suggests that caution should be observed in treating patients with severe cardiovascular disease including hypertension. IOPIDINE 1% Ophthalmic Solution should also be used with caution in patients with severe coronary insufficiency, recent myocardial infarction, cerebrovascular disease, chronic renal failure, Raynaud’s disease or thromboangiitis obliterans. The possibility of a vasovagal attack occurring during laser surgery should be considered and caution used in patients with history of such episodes. Topical ocular administration of two drops of 0.5%, 1%, and 1.5% IOPIDINE Ophthalmic Solution to New Zealand Albino rabbits three times daily for one month resulted in sporadic and transient instances of minimal corneal cloudiness in the 1.5% group only. No histopathological changes were noted in those eyes. No adverse ocular effects were observed in cynomolgus monkeys treated with two drops of 1.5% IOPIDINE Ophthalmic Solution applied three times daily for three months. No corneal changes were observed in 320 humans given at least one dose of IOPIDINE 1% Ophthalmic Solution.
ADVERSE REACTIONS
The following adverse events, occurring in less than 2% of patients, were reported in association with the use of IOPIDINE 1% Ophthalmic Solution in laser surgery: ocular injection, upper lid elevation, irregular heart rate, nasal decongestion, ocular inflammation, conjunctival blanching, and mydriasis.
DOSAGE AND ADMINISTRATION
Instill one drop of IOPIDINE® 1% in the operative eye one hour before anterior segment laser surgery. Instill a second drop immediately after the procedure. Use a new single-use container for each drop and discard after use.
About IHEEZO (chloroprocaine HCl ophthalmic gel) 3%
Indications and Usage
IHEEZO® (chloroprocaine HCl ophthalmic gel) 3% is indicated for ocular surface anesthesia.
Important Safety information
IHEEZO is contraindicated in patients with a history of hypersensitivity to any component of this preparation.
IHEEZO should not be injected or intraocularly administered.
Patients should not touch the eye for at least 10 to 20 minutes after using anesthetic as accidental injuries can occur due to insensitivity of the eye.
Prolonged use of a topical ocular anesthetic may produce permanent corneal opacification and ulceration with accompanying visual loss.
Do not touch the dropper tip to any surface as this may contaminate the gel.
IHEEZO is indicated for administration under the direct supervision of a healthcare provider. IHEEZO is not intended for patient self-administration.
The most common adverse reactions in studies following IHEEZO administration (incidence greater than or equal to 5%) were mydriasis, conjunctival hyperemia, and eye irritation.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward-looking statements.” Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general, including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing facility in New Jersey; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
Contacts:
Mike Biega
Vice President of Investor Relations and Communications [email protected]
617-913-8890
_______________________
i Iopidine® (apraclonidine HCl ophthalmic solution) 0.5% and 1% Prescribing Information. Harrow, Inc
ii Ehrlich et al. JAMA Ophthalmol 2024
iii CMS Part B laser procedure estimates
Harrow has delivered a decade-long 40% CAGR in revenue, with robust operating leverage and EBITDA margin expansion. Seasonal weakness in Q1 consistently creates compelling entry points, with share prices typically bottoming near the Q1 report date and rebounding sharply later in the year. HROW's 2026 low of $33 suggests a likely move to $100 within the year, reflecting the historical pattern of annual highs being about 3x annual lows.
State of Alaska Department of Revenue lifted its holdings in shares of Harrow, Inc. (NASDAQ:HROW – Free Report) by 807.4% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 15,807 shares of the company’s stock after acquiring an additional 14,065 shares during the quarter. State of Alaska Department of Revenue’s holdings in Harrow were worth $774,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other large investors have also recently modified their holdings of HROW. Penn Capital Management Company LLC bought a new stake in shares of Harrow during the 3rd quarter valued at about $15,717,000. Luxor Capital Group LP bought a new stake in shares of Harrow during the 3rd quarter valued at about $14,807,000. New York State Common Retirement Fund boosted its stake in shares of Harrow by 1,944.7% during the 3rd quarter. New York State Common Retirement Fund now owns 213,789 shares of the company’s stock valued at $10,300,000 after purchasing an additional 203,333 shares in the last quarter. Bank of America Corp DE boosted its stake in shares of Harrow by 266.8% during the 2nd quarter. Bank of America Corp DE now owns 213,448 shares of the company’s stock valued at $6,519,000 after purchasing an additional 155,258 shares in the last quarter. Finally, Invesco Ltd. raised its position in shares of Harrow by 967.6% in the 2nd quarter. Invesco Ltd. now owns 150,948 shares of the company’s stock worth $4,610,000 after acquiring an additional 136,809 shares in the last quarter. Institutional investors own 72.76% of the company’s stock.
Harrow Price Performance Shares of NASDAQ HROW opened at $39.14 on Thursday. Harrow, Inc. has a fifty-two week low of $21.12 and a fifty-two week high of $54.85. The company has a 50 day simple moving average of $40.21 and a two-hundred day simple moving average of $42.40. The company has a market capitalization of $1.46 billion, a price-to-earnings ratio of -230.22 and a beta of 0.31. The company has a debt-to-equity ratio of 4.67, a quick ratio of 2.06 and a current ratio of 2.20.
Analyst Ratings Changes Several brokerages have recently issued reports on HROW. Cantor Fitzgerald decreased their target price on Harrow from $94.00 to $91.00 and set an “overweight” rating for the company in a research report on Wednesday, March 4th. HC Wainwright reissued a “buy” rating and issued a $70.00 target price on shares of Harrow in a research report on Thursday, March 19th. B. Riley Financial reissued a “buy” rating and issued a $65.00 target price (down from $74.00) on shares of Harrow in a research report on Tuesday, April 7th. Zacks Research upgraded shares of Harrow from a “strong sell” rating to a “hold” rating in a report on Friday, April 3rd. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Harrow in a report on Thursday, January 22nd. Eight research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $69.86.
Check Out Our Latest Report on HROW
Harrow Profile (Free Report)
Harrow Health, Inc (NASDAQ: HROW) is a U.S.-based commercial-stage biopharmaceutical company specializing in ophthalmic therapeutics and diagnostics. The company focuses on the development, manufacturing and distribution of proprietary, generic and branded eye care products designed to treat a range of ocular conditions, including glaucoma, ocular hypertension, dry eye disease and other anterior segment disorders.
Through its wholly owned affiliate ImprimisRx, Harrow Health offers a direct-to-physician model for customized formulations as well as low-cost generic alternatives.
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Company to Host Conference Call to Discuss Results at 8:00 a.m. Eastern Time on May 12, 2026 April 27, 2026 07:00 ET | Source: Harrow, Inc.
NASHVILLE, Tenn., April 27, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced that it will report its financial results for the first quarter ended March 31, 2026, on Monday, May 11, 2026, after the market close. The Company will also post its first quarter Letter to Stockholders to the “Investors” section of its website, harrow.com. Harrow will host a conference call and live webcast at 8:00 a.m. Eastern Time on Tuesday, May 12, 2026, to discuss the results and provide a business update.
Conference Call Information
Participants can access the live webcast of Harrow’s presentation on the “Investors” page of Harrow’s website. A replay of the webcast will be available on the Company’s website for one year.
To participate via telephone, please register in advance using this link. Upon registration, all telephone participants will receive a confirmation email with detailed instructions, including a unique dial-in number and PIN, for accessing the call.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.
Contact:
Mike Biega
VP of Investor Relations & Communications [email protected]
617-913-8890
Wall Street expects a year-over-year decline in earnings on higher revenues when Harrow (HROW - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 11. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis pharmaceutical and drug compounding company is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of -13.2%.
Revenues are expected to be $50.33 million, up 5.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 89.66% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Harrow?For Harrow, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -62.35%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Harrow will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Harrow would post earnings of $0.4 per share when it actually produced earnings of $0.26, delivering a surprise of -35.00%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Harrow doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerStevanato Group (STVN - Free Report) , another stock in the Zacks Medical - Drugs industry, is expected to report earnings per share of $0.12 for the quarter ended March 2026. This estimate points to a year-over-year change of +9.1%. Revenues for the quarter are expected to be $311.41 million, up 15.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Stevanato has remained unchanged. Nevertheless, the company now has an Earnings ESP of -1.64%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Stevanato will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
VEVYE® delivered record new and total prescription performance (despite an approximate 18% decline in the overall branded dry eye category)VEVYE demand growth on track to deliver 2026 revenue of over $100 millionQuarterly revenue of $44.2 million, including a non-recurring gross-to-net revenue adjustment connected to new VEVYE commercial coverage, which lowered Q1 revenue by approximately $8 millionIHEEZO® unit demand increased 18% year-over-year, with 82% of units from retina accountsTRIESENCE® unit demand more than doubled year-over-year, the sixth consecutive quarter of growthSecond Quarter revenue expected between $71 million and $81 millionFull-year 2026 revenue guidance reaffirmed at $350 million to $365 millionCash and cash equivalents of $94.6 million as of March 31, 2026 A Media Snippet accompanying this announcement is available by clicking on this link.
NASHVILLE, Tenn., May 11, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, announced results for the first quarter ended March 31, 2026. The Company also posted its first-quarter Letter to Stockholders and corporate presentation to the “Investors” section of its website at harrow.com. The Company encourages Harrow stockholders to review these documents, which provide additional details concerning the historical results and future expectations for the business.
“The demand for Harrow’s key products has never been stronger, and our visibility into our demand trajectory – across our portfolio – keeps us entirely on track to reach our forecasted financial goals for the year,” said Mark L. Baum, Chief Executive Officer of Harrow. “Although our first-quarter reported revenue reflects an estimated $8 million gross-to-net reduction associated with our new commercial coverage for VEVYE, this adjustment does not reflect the profitable, recurring, and significant patient base established during the quarter. Harrow is now positioned to realize the full financial benefits of this coverage relationship beginning in Q2 2026.”
Baum continued, “Prior to the quarter, we established business rules with specific assumptions regarding these new VEVYE commercial patients. As the period unfolded, the surge in demand among patients with high-deductible plans significantly outpaced our initial models. This created temporary gross-to-net pressure, which was resolved through business rules adjustments. With these rules now in place, we are now positioned to realize the expected financial benefit of our expanded commercial access, and we are already seeing highly encouraging net pricing indicators early in the second quarter.”
“Our core commercial engine is accelerating. VEVYE delivered record prescription performance and has officially surpassed XIIDRA on a monthly total prescription basis. Across our key growth drivers - VEVYE, IHEEZO, and TRIESENCE - we are seeing robust prescriber adoption, expanding market share, and durable momentum. With our expanded commercial organization now fully deployed, we remain highly confident in our ability to deliver on our 2026 revenue guidance of $350 million to $365 million.”
Key First Quarter Demand Indicators:
VEVYE:
Prescription growth of approximately 170% sequentially within our new national pharmacy benefit manager’s Tier 1 accountsRecord quarterly prescription performance, with NRx up 25% and TRx up 11% quarter-over-quarter, despite a decline in the overall branded dry eye marketSurpassed XIIDRA on a monthly TRx basis, achieving approximately 14% market share as of the end of March 2026 IHEEZO:
Unit demand increased 18% year-over-year, with March 2026 up 34% versus the prior-year periodRetina accounts represented approximately 82% of total volume, reflecting continued strength in the core marketOrdering accounts continued to expand, driven by growing adoption across both retina and in-office procedural settings TRIESENCE:
Unit demand more than doubled year-over-year, increasing 136% versus the prior-year periodSixth consecutive quarter of growth, supported by continued expansion of the customer base, including 195 new accounts in the quarter, representing approximately 28% of total ordering accounts First Quarter 2026 Financial Results:
For the Three Months Ended
March 31, 2026
2025
Total revenues$ 44,203,000 $ 47,831,000 Gross margin 61% 68%Net loss (27,602,000) (17,780,000)Adjusted EBITDA(1) (12,659,000) (1,985,000)Net loss per share, basic and diluted (0.74) (0.50) (1) Adjusted EBITDA is a non-GAAP measure. For additional information, including a reconciliation of Adjusted EBITDA to the most directly comparable measure presented in accordance with GAAP, see the explanation of non-GAAP measures and reconciliation tables at the end of this release.
Conference Call and Webcast
Harrow will host a conference call to discuss the results at 8:00 a.m. ET on Tuesday, May 12, 2026. Participants can access the live webcast of Harrow’s presentation on the “Investors” page of Harrow’s website. A replay of the webcast will be available on the Company’s website for one year.
To participate via telephone, please register in advance using this link. Upon registration, all telephone participants will receive a confirmation email with detailed instructions, including a unique dial-in number and PIN, to access the call.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma, and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward--looking statements.” Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general, including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing facility in New Jersey; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue reliance should not be placed on forward-looking- statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking- statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
Contact:
Mike Biega, VP of Investor Relations and Communications [email protected]
617-913-8890
HARROW, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,
2026 December 31,
2025 ASSETSCash and cash equivalents$94,644,000 $72,927,000All other current assets 131,740,000 138,823,000Total current assets 226,384,000 211,750,000All other assets 193,159,000 187,732,000TOTAL ASSETS$419,543,000 $399,482,000 LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities$91,439,000 $96,302,000Loans payable, net of unamortized debt discount 292,087,000 243,184,000All other liabilities 7,666,000 7,905,000TOTAL LIABILITIES 391,192,000 347,391,000TOTAL STOCKHOLDERS' EQUITY 28,351,000 52,091,000TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$419,543,000 $399,482,000 HARROW, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31, 2026
2025
Total revenues$44,203,000 $47,831,000 Cost of sales (17,158,000) (15,524,000)Gross profit 27,045,000 32,307,000 Selling, general and administrative 43,230,000 40,513,000 Research and development 5,895,000 3,026,000 Total operating expenses 49,125,000 43,539,000 Loss from operations (22,080,000) (11,232,000)Interest expense, net (5,497,000) (6,548,000)Income tax expense (25,000) - Net loss$(27,602,000) $(17,780,000)Net loss per share: Basic and diluted$(0.74) $(0.50) HARROW, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,2026
2025
Net cash provided by (used in): Operating activities$ (8,992,000) $ 19,668,000 Investing activities (18,203,000) (212,000)Financing activities 48,912,000 23,000 Net change in cash and cash equivalents 21,717,000 19,479,000 Cash and cash equivalents at beginning of the period 72,927,000 47,247,000 Cash and cash equivalents at end of the period$ 94,644,000 $ 66,726,000 Non-GAAP Financial Measures
In addition to the Company’s results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP), which are presented and discussed above, management also utilizes Adjusted EBITDA, an unaudited financial measure that is not calculated in accordance with GAAP, to evaluate the Company’s financial results and performance and to plan and forecast future periods. Adjusted EBITDA is considered a “non-GAAP” financial measure within the meaning of Regulation G promulgated by the SEC. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results, provides a more complete understanding of the Company’s results of operations and the factors and trends affecting its business. Management believes Adjusted EBITDA provides meaningful supplemental information regarding the Company’s performance because (i) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making; (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company’s core operating performance and that may obscure trends in the Company’s core operating performance; and (iii) it is used by institutional investors and the analyst community to help analyze the Company’s results. However, Adjusted EBITDA, and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the way they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company’s competitors.
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income (loss), excluding the effects of stock-based compensation and expenses, impairment of intangible assets, interest, taxes, depreciation, amortization, investment loss, net, and, if any and when specified, other non-recurring income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net income (loss). Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net income (loss) as a measure of operating performance or to net cash provided by (used in) operating, investing, or financing activities as a measure of ability to meet cash needs.
The following is a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most comparable GAAP measure, net income (loss), for the three months ended March 31, 2026 and for the same period in 2025:
HARROW, INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
For the Three Months Ended
March 31, 2026
2025
GAAP net loss$(27,602,000) $(17,780,000)Stock-based compensation and expenses 3,837,000 4,556,000 Interest expense, net 5,497,000 6,548,000 Income tax expense 25,000 - Depreciation 455,000 465,000 Amortization of intangible assets 5,129,000 4,226,000 Adjusted EBITDA$(12,659,000) $(1,985,000)
Harrow (HROW - Free Report) came out with a quarterly loss of $0.63 per share versus the Zacks Consensus Estimate of a loss of $0.43. This compares to a loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -48.24%. A quarter ago, it was expected that this pharmaceutical and drug compounding company would post earnings of $0.4 per share when it actually produced earnings of $0.26, delivering a surprise of -35%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Harrow, which belongs to the Zacks Medical - Drugs industry, posted revenues of $44.2 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 12.17%. This compares to year-ago revenues of $47.83 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Harrow shares have lost about 22% since the beginning of the year versus the S&P 500's gain of 8.1%.
What's Next for Harrow?While Harrow has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Harrow was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $81.91 million in revenues for the coming quarter and $0.48 on $351.26 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Merck KGaA (MKKGY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -23.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Merck KGaA's revenues are expected to be $5.78 billion, up 4.1% from the year-ago quarter.
Harrow NASDAQ: HROW executives said the company’s first-quarter results were weighed down by a discrete revenue issue tied to VEVYE coverage and high-deductible patients, but management repeatedly emphasized that underlying demand for its core ophthalmic products is accelerating.
On the company’s first-quarter 2026 earnings call, CEO Mark L. Baum said the quarter’s headline revenue figure reflected “a specific isolated dynamic” rather than a deterioration in demand. Harrow reported consolidated revenue of $44.2 million and adjusted EBITDA of negative $12.7 million for the quarter, according to President and Chief Financial Officer Andrew Boll.
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“The underlying fundamentals of Harrow have never been stronger,” Baum said, adding that demand for the company’s key growth drivers is “at or above” internal expectations.
VEVYE Revenue Hit by Gross-to-Net Issue Management said VEVYE generated approximately $20.9 million in first-quarter revenue, but that reported revenue was reduced by about $8 million due to a gross-to-net modeling issue related to expanded commercial coverage that began Jan. 1.
Boll said Harrow’s initial business rules assumed a certain patient mix and level of out-of-pocket support. While January results tracked with expectations, the company later saw a significantly higher proportion of high-deductible patients filling prescriptions through pharmacy benefits, increasing average out-of-pocket buydowns and pressuring net revenue per unit.
“Due to the standard industry lag in claims reporting, the full magnitude of this mix shift was confirmed in mid-April,” Boll said. He said Harrow then implemented targeted changes, including strict caps on co-pay buydowns and other refinements intended to protect net pricing.
In response to an analyst question, Boll said CVS-covered patients were coming in about 40% higher on out-of-pocket buydown amounts than other covered patients. He said the business rule changes should move those patients from being, on average, “negative revenue” to “much more positive” contributors going forward.
Baum said the changes have shown “negligible impact” on new prescription demand. He said recent VEVYE prescription data showed “higher highs and higher lows,” which he attributed in part to the company’s expanded sales force beginning to affect field activity.
Company Reaffirms 2026 Guidance Despite the first-quarter adjustment, Harrow reaffirmed full-year 2026 revenue guidance of $350 million to $365 million. Boll said the company expects second-quarter revenue of $71 million to $81 million, with VEVYE showing sequential growth.
Management also reiterated its expectation that VEVYE will exceed $100 million in revenue for the year. Boll said April trends suggested net pricing is “much better aligned” with internal expectations and should be notably higher than in the first quarter. In response to a question on average selling prices, Boll said assuming the current setup, a roughly 30% increase was a reasonable assumption.
Baum said Harrow’s commercial investments, including the hiring of more than 90 new sales professionals, are now complete. The company doubled its VEVYE dry eye sales force, expanded its surgical and retina-related teams, and added resources for Access+ and specialty products.
Pat Sullivan, Harrow’s chief commercial officer, said VEVYE new prescriptions grew approximately 25% sequentially in the quarter, while total prescriptions grew about 11%. He said the prescriber base expanded another 12% sequentially, and the product exited March with roughly 14% branded share, surpassing Xiidra on a monthly total prescription basis.
IHEEZO, TRIESENCE and Other Products IHEEZO contributed $1.9 million in first-quarter revenue, which Boll said was in line with expectations as channel inventory was absorbed. Sullivan said IHEEZO unit demand grew 18% year over year, new ordering accounts increased by 21 during the quarter, and total accounts were up nearly 50% from last year. Retina procedures represented more than 80% of volume.
Harrow expects IHEEZO revenue to begin rebounding in the second quarter but remain below prior-year levels due to channel dynamics, Boll said. He said results should move toward a more normalized level in the third and fourth quarters, helped by a new multi-unit package launching in July and an expected 20% to 25% improvement in net pricing beginning in the second half.
Baum said the ambulatory surgery center business for IHEEZO is expected to “go to zero” following the loss of pass-through reimbursement, but he said the company expects to replace prior ASC unit volumes with in-office use cases by the end of the year. He described in-office coverage as “nearly pervasive,” with better than 95% coverage and a prior authorization rate below 5%.
TRIESENCE delivered $7.8 million in first-quarter revenue. Sullivan said the product posted 136% year-over-year unit volume growth, with March up 113% from a year earlier. He said TRIESENCE has now recorded six consecutive quarters of demand growth, with unit demand up roughly 250% over that period. Harrow also said its label expansion study in cataract surgery and pain is underway.
Access+ revenue was $13.5 million. Baum and Sullivan said Harrow had worked through prior inventory constraints in the cash-pay business and rebuilt inventory for key products.
Second-Half Catalysts and New Launches Boll said the company expects a stronger second half supported by several catalysts, including full deployment of the expanded VEVYE sales force, better VEVYE net pricing, the July 1 commercial launch of BYOOVIZ, and the July 1 effective date of a permanent J-code for IOPIDINE 1%.
Sullivan said IOPIDINE is the only FDA-approved therapy to prevent intraocular pressure spikes following various in-office procedures. He said the permanent J-code, reimbursed at ASP plus 6%, changes the economics for physicians and could unlock an addressable market of more than 1.5 million annual laser procedure use cases. Baum said IOPIDINE is expected to be an incremental contributor in the second half of 2026, with a larger impact expected in 2027.
Baum also said BYQLOVI samples are already being distributed to select customers, while the trade launch, meaning revenue-generating sales, is expected to begin in the third quarter. He said Harrow’s full-year guidance includes BYQLOVI, though the company is not providing product-specific revenue expectations for BYQLOVI or BYOOVIZ.
MELT-300 Development Remains on Track Chief Scientific Officer Amir Shojaei discussed MELT-300, Harrow’s IV- and opioid-free procedural sedation candidate acquired from Melt Pharmaceuticals. He said the company has initiated required pharmacokinetic and non-clinical toxicology studies. The non-clinical study is in the reporting phase, and the first pharmacokinetic study has been completed and is in clinical study report drafting.
Shojaei said renal and hepatic impairment studies are underway, with final reports anticipated in the fourth quarter of 2026. He also said a major manufacturing campaign scheduled for later in the quarter is expected to support the data package required for an NDA submission. Baum later said investors should think about a first-quarter 2027 submission, though he said Harrow would provide more information on the next quarterly call.
In closing, Baum said the first-quarter issue was resolved and did not change the company’s long-term trajectory. “We’re now entering a period where the foundation translates into sustained revenue growth and increasing profitability,” he said.
About Harrow NASDAQ: HROWHarrow Health, Inc NASDAQ: HROW is a U.S.-based commercial-stage biopharmaceutical company specializing in ophthalmic therapeutics and diagnostics. The company focuses on the development, manufacturing and distribution of proprietary, generic and branded eye care products designed to treat a range of ocular conditions, including glaucoma, ocular hypertension, dry eye disease and other anterior segment disorders.
Through its wholly owned affiliate ImprimisRx, Harrow Health offers a direct-to-physician model for customized formulations as well as low-cost generic alternatives.
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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