Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Take-Two Interactive (TTWO - Free Report) .
Take-Two currently has an average brokerage recommendation (ABR) of 1.27, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.27 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 25 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 83.3% and 6.7% of all recommendations.
Brokerage Recommendation Trends for TTWO
Check price target & stock forecast for Take-Two here>>>
The ABR suggests buying Take-Two, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in TTWO?Looking at the earnings estimate revisions for Take-Two, the Zacks Consensus Estimate for the current year has declined 24.5% over the past month to $6.71.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
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 #4 (Sell) for Take-Two. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Take-Two with a grain of salt.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
XYZ is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. XYZ has a Momentum Style Score of B, and shares are up 5.4% over the past four weeks.
11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.23 to $3.86 per share. XYZ boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XYZ should be on investors' short list.
Block, Inc. (XYZ - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, XYZ's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Shares of XYZ have been moving higher over the past four weeks, up 5.4%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that XYZ could be poised for a breakout.
The bullish case only gets stronger once investors take into account XYZ's positive earnings outlook for the current quarter. There have been 11 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on XYZ for more gains in the near future.
As America’s workforce shifts toward variable income, Cash App and Afterpay complete their most ambitious product integration yet – expanding pay-over-time flexibility to the modern earner
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Cash App today announced the general availability of Afterpay on Cash App Card, bringing Buy Now, Pay Later to eligible Cash App Card customers.1 The launch marks the full commercial realization of a product built for a new kind of American earner: one whose income doesn't arrive on a fixed schedule, whose financial needs extend well beyond a merchant’s checkout, and who has long been underserved by a traditional financial system that wasn't designed with them in mind.
Gig workers, creators, hourly employees, and independent contractors increasingly manage variable income across multiple streams and they need payment flexibility that moves with them. Afterpay on Cash App Card is built for that reality: pay-over-time for everyday spend categories like groceries, gas, restaurants, and utilities, built into the app millions of people already use to manage their money.
“Millions of people already trust Cash App Card for their everyday spending. What Afterpay on Cash App Card does is take that existing trust and extend it, giving eligible customers the flexibility to pay over time for any purchase, not just the ones a merchant has opted into. That’s what the combination of these two platforms makes possible: Afterpay’s best-in-class BNPL product, distributed through a financial ecosystem that tens of millions of people already rely on, for the everyday spend categories that actually matter to their lives,” said Owen Jennings, Executive Officer and Head of Business, Block.
The product pairs Cash App's real-time data underwriting, which evaluates cash flow patterns and financial behaviors rather than backward-looking credit scores, with Afterpay's pay-over-time expertise and transparent fee structure: a flat 7.5% finance fee, six-week repayment terms,1 no revolving debt, no down payment, and no impact to a customer's credit score. The result is a product that expands access to short-term credit for customers who have historically been excluded from it.
Early customer data makes clear that Afterpay on Cash App Card can be a regular cash flow tool, not simply a one-off purchase. More than three in five customers who have made an Afterpay on Cash App Card transaction have used it at least five times.2
The general availability of Afterpay on Cash App Card is the clearest proof point yet of what the convergence of Afterpay and Cash App makes possible. Building on the pilot launch, today's rollout extends Afterpay on Cash App Card to all eligible Cash App Card customers across Cash App's 59 million monthly transacting actives.3
Recent innovations from Cash App and Afterpay shared ecosystem includes expanding its Pay Monthly option — offering longer-term installment options on larger purchases — to merchant checkout for Cash App customers, and introducing the ability for customers to retroactively convert eligible peer-to-peer payments and Cash App Pay transactions into flexible installments. Together with Afterpay on Cash App Card, these capabilities form a comprehensive suite of flexible payment products built to meet customers however and wherever they choose to spend.
About Cash App
Cash App is the money app. Banking* on Cash App is easy: customers can receive paychecks early with direct deposit, spend money where Visa is accepted with a personalized Cash App Card, and grow their money with a separate savings balance - all without hidden fees. Customers can also create a unique $Cashtag to share with anyone to get paid fast, make purchases with Cash App Pay, trade stocks and buy and sell bitcoin**. With Afterpay***, customers can also pay over time in a way that best fits their financial needs through participating merchants or directly in the app. Download Cash App for free at cash.app/download.
*Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. See terms and conditions for the Sutton prepaid card, Sutton debit flex card, and Bancorp debit flex card. See cash.app for more details.
**Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC, subsidiary of Block, Inc. Stablecoin, Bitcoin Map, and Lightning Network are not available to New York residents. Bitcoin services provided by Block, Inc. Bitcoin services are not licensable activity in all U.S. states and territories. Block, Inc. operates in New York as Block of Delaware and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Investing and bitcoin are non-deposit, non-bank products that are not FDIC insured and involve risk, including monetary loss. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures.
***Afterpay is offered and managed through your Cash App account - no Afterpay account needed. Eligibility is based on several factors and is not guaranteed. Afterpay is not available in all states. Afterpay loans issued by First Electronic Bank, serviced by Square Capital, Inc. View state licenses.
1 Afterpay is offered and managed through your Cash App account - no Afterpay account needed. Afterpay loans offered and originated by First Electronic Bank, Member FDIC. Eligibility for Afterpay on Cash App Card is based on various factors and is not guaranteed. Afterpay on Cash App Card is not available in all states and some rates and terms may differ by state. Overdraft Coverage and Rounds Ups are not supported by Afterpay on Cash App Card. A Cash App customer identifies a Cash App Card purchase of $240 and opts to finance the purchase for a term of 42 days, with a finance charge of $18, and 6 weekly payments. The loan has a setup fee of 7.5% for a fixed APR of 65.15%. In this example, the customer will borrow $240 and owe 6 weekly payments of $43, for a total repayment of $258. Loan amounts range from $1 to $1000 and loan terms are 42 days.
2 Block internal data analyzed between February to May 2026 of new Afterpay on Cash App Card users
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
Since being added to the Focus List on March 28, 2017 at $17.25 per share, shares of XYZ have increased 341.16% to $76.1. The stock is currently a #1 (Strong Buy) on the Zacks Rank.
11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.23 to $3.86. XYZ boasts an average earnings surprise of 3.5%.
Additionally, XYZ's earnings are expected to grow 62.9% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
The family-owned Thai Kitchen & Bubble Tea shop utilizes Square Marketing, Square Kiosk, and Neighborhoods on Cash App to deepen its foothold on a tight-knit Oregon community
DISTRIBUTED-WORKFORCE/OAKLAND, Calif.--(BUSINESS WIRE)--Square today announced that Baker St Cafe - Thai Kitchen & Bubble Tea, a family-run restaurant in McMinnville, Oregon, is utilizing Square's unified commerce platform to power its standing as one of the town's most beloved dining destinations. In the two years since its founding, Baker St Cafe has established a strong local reputation enabling it to serve 1 in 7 residents* of McMinnville, and secured the Thai SELECT certification, a distinction awarded by the Royal Thai Government to just nine restaurants in all of Oregon to guarantee authentic Thai taste.
Founded by Fon Khunsamart, a Thai immigrant who grew up cooking alongside her grandmother and professional chef father, Baker St Cafe brings genuine Thai home cooking to a small American town. With Fon’s husband, Thomas Khunsamart, managing the operations and technology, and their three sons learning the business alongside them, the cafe runs as a true family enterprise. The couple relies on Square's unified commerce ecosystem including Square Register, Square Kiosk, and Square Marketing to handle more than 5,700 monthly transactions as they focus on providing the highest quality Thai dining experiences.
Unlocking the neighborhood with Square
Square Marketing has become the engine behind Baker St Cafe's customer attraction and retention strategy. At any given time, the cafe has more than 28 automated campaigns spanning email and SMS running simultaneously, with significant sales contributions directly attributed to their success. Even in a smaller town like McMinnville, the cafe has seen more than 700 campaign promotion redemptions. Rather than manually managing outreach, Baker St Cafe’s approach is to set up automated flows that run in the background, freeing Fon to remain focused on her craft in the kitchen and Thomas to spend more time ensuring smooth operations.
“Square is reliable and always launching new features – not staying stagnant,” said Thomas Khunsamart, Baker St Cafe co-owner. “A lot of companies roll out a product and don't update it for ten years. Square is always evolving, which we love."
Baker St Cafe joined the Neighborhoods on Cash App program in 2026 as an early adopter. The cafe’s growing Neighborhoods followers demonstrate encouraging engagement trends from follow to purchase. Followers also visit more frequently than the cafe's broader customer base. For Thomas, Neighborhoods represents a direct line to the cafe's most loyal diners, with a built-in pipeline of return visitors and a way to reclaim local market share from third-party platforms that would otherwise charge higher processing fees.
"I see a lot of people that live locally ordering on third-party platforms right away rather than trying to order directly with us even though they live locally," said Khunsamart. "Neighborhoods gives us a way to incentivize our local customers to keep coming back. The 1% processing on online orders, repeat customers, being able to communicate directly with those followers who are clearly excited to follow you and see your updates and get deals from you – that's what excites me most."
Data-driven decisions, down to the menu
Thomas uses Square's reporting tools for continuous optimization. Item-level sales reports inform every menu update: low-selling or complex dishes come off, and are replaced by items with better margins or higher customer demand. Kitchen workflow follows the data too. Sales trend history enables the team to anticipate slow days and reduce food prep accordingly, cutting waste and protecting the bottom line.
"I use the sales reports and item sales to see what is not popular," continued Khunsamart. "When I redo the menu I take off items that don't make much money or are harder to make. I use it to optimize kitchen workflow and replace it with a lower cost or higher ROI product that more customers will purchase."
A kiosk that keeps up with a world-class kitchen
Baker St Cafe runs Square Kiosk as a core part of its in-store ordering flow. For Baker St Cafe, the decisive advantage is automation: every menu change made in Square pushes to the kiosk automatically, with no manual updates required. That reliability pays off across a fast-paced counter environment where keeping up with a frequently evolving menu would otherwise be a recurring operational burden.
"We switched to Square Kiosk because I don't ever have to update it. Every time I make a change, it updates automatically," said Khunsamart. "That just made it easier for me as the owner."
"Baker St Cafe is a model example of what we aim to help neighborhood favorites become," said James Schonzeit, Head of Food & Beverage at Square. "A first-generation immigrant family, cooking real food, building a community from scratch in a small town, and doing it with the discipline of operators twice their size. In just two years, they've made themselves a local institution. There’s so much to learn from their success.”
Learn more about how Square powers restaurants at: https://squareup.com/us/en/restaurants
About Baker St Cafe - Thai Kitchen & Bubble Tea
Founded by Fon Khunsamart in McMinnville, Oregon, Baker St Cafe – Thai Kitchen & Bubble Tea is a family-owned restaurant bringing authentic Thai home cooking to the Pacific Northwest. Inspired by the recipes Fon grew up cooking alongside her grandmother and father in Thailand, the cafe is run by Fon, her husband Thomas, and their three sons. Thai SELECT certified by the Royal Thai Government, Baker St Cafe has become a beloved local staple known for its authentic flavors, warm hospitality, and deep roots in the McMinnville community. Learn more at https://www.thebakerstcafe.com/.
About Square
Square helps businesses turn transactions into connections and businesses into neighborhood favorites.
In 2009, Square started with a simple invention — the first mobile card reader, which changed how the entire financial system thinks about small businesses. Square has since grown into a global business platform helping millions of sellers of all sizes participate and thrive in their communities.
Whether independently run or a global chain, Square understands that sellers succeed when they have the freedom to focus on the experiences that keep customers coming back. From point of sale and payments to online commerce, staff management, cash flow tools, and more, Square brings together the tools sellers need to run and grow on one intelligent platform. For more information, visit squareup.com.
*Baker St Cafe has served more than 5,300 unique customers in McMinnville, Oregon, where the population is approximately 35,000 residents
Key Takeaways Block launched Afterpay on Cash App Card, adding BNPL for eligible everyday purchases.Block targets earners with variable incomes via a 7.5% fee and a six-week repayment plan.Block deepens Cash App-Afterpay integration to boost flexible payments and engagement. Block (XYZ - Free Report) recently announced the launch of Afterpay on Cash App Card, bringing eligible Cash App card customers under the sphere of Buy Now, Pay Later (“BNPL”). This arrangement has been designed for American earners with variable incomes and who are underserved by the current financial system.
The new feature enables gig workers, creators, hourly employees and independent contractors to spread the cost of everyday purchases, including groceries, gas, dining and utility bills over time, providing greater short-term financial flexibility.
Leveraging Cash App’s insights into users’ cash flow patterns and financial behavior, Afterpay offers transparent repayment terms, including a flat 7.5% finance fee and a six-week repayment schedule. The service is now available to all Cash App Card customers across Cash App’s 59 million monthly transacting active users.
The launch builds on the growing integration between Cash App and Afterpay. Recent enhancements include the expansion of the Pay Monthly option, which provides longer-term installment plans for larger purchases at merchant checkout. Cash App customers can also convert eligible peer-to-peer payments and Cash App Pay transactions into installment plans after completing a transaction, expanding access to flexible payment solutions.
The rollout of Afterpay on Cash App Card underscores Block’s strategy to deepen customer engagement by broadening access to flexible credit products. By addressing the needs of consumers with variable incomes and integrating BNPL options into everyday spending, Cash App is strengthening its position as a comprehensive financial ecosystem while creating additional opportunities for user growth and monetization.
How Are Cash App’s Competitors Fairing?Affirm (AFRM - Free Report) is a leading competitor to Cash App’s BNPL offering, largely because it is widely used by online and in-store merchants. It gives shoppers flexible installment plans, including short-term pay-in-four options and longer monthly financing. Affirm’s focus on transparent payment schedules and no hidden fees makes it a strong alternative for customers seeking predictable credit at checkout.
Klarna Group plc (KLAR - Free Report) is another major BNPL rival, competing directly with Afterpay/Cash App in retail payments. It offers pay later, pay-in-four and financing options across many merchants. Klarna also emphasizes shopping discovery, rewards and app-based deals, making it more than just a payment provider.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 16.1% over the past year, outperforming the broader industry but underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.22X, which is at a discount to the Zacks Internet Software industry’s 28.82X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward by a cent over the past week to $3.86. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Square expanded its partnership with Baker St Cafe through its unified commerce platform.XYZ's tools help attract customers, boost retention and increase repeat local traffic.Square Kiosk and reporting tools improve efficiency, menu decisions and profitability. Block’s (XYZ - Free Report) merchant-focused business, Square, has expanded its partnership with Baker St Café – Thai Kitchen & Bubble Tea, a family-owned restaurant in McMinnville, OR. Through Square’s unified commerce platform, Baker St Café is leveraging a suite of tools designed to enhance customer engagement, streamline operations and support long-term growth.
Square’s marketing solutions are helping the restaurant attract new customers while strengthening retention efforts. Participation in the Neighborhoods on Cash App program has increased visibility among local consumers, driving higher customer engagement, more followers and greater repeat traffic.
The restaurant is also utilizing Square’s reporting tools to analyze sales trends and menu performance. By identifying low-selling items with thinner margins, Baker St Café can replace them with higher-return, lower-cost alternatives, improving profitability and optimizing kitchen workflows.
Meanwhile, Square Kiosk is simplifying the in-store ordering experience through self-service functionality and automated menu updates. This eliminates the need for manual changes, reduces operational burdens and enhances overall efficiency.
The expanded partnership with Baker St Café underscores Square’s ability to deliver an integrated suite of tools that support both customer growth and operational efficiency. By combining marketing capabilities, data-driven insights and automated ordering solutions, Square is helping small businesses streamline operations, improve profitability and strengthen customer relationships. Such collaborations reinforce Block’s strategy of deepening merchant engagement and expanding the value of its Square ecosystem.
Over the past six months, shares of this Zacks Rank #1 (Strong Buy) company have gained 13.9% against the industry’s decline of 9%.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the internet software sector are BILL Holdings, Inc. (BILL - Free Report) and Atlassian (TEAM - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BILL’s 2026 FFO per share is pegged at $2.59, suggesting 17.2% growth year over year.
The consensus estimate for TEAM’s 2026 FFO per share is pinned at $5.48, implying a significant increase year over year.
The physical payment accessories are linked to the Cash App Visa® Card*, enabling customers to pay without their phone or wallet
Cash App is releasing a limited run of the first model—the Cash App Wand—available starting today while supplies last
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Today, Cash App is launching a new payment form factor that’s changing the shape of money. Cash App Tags are NFC-enabled, physical payment accessories that let customers pay without having to reach for their phone or card.
The first-edition Cash App Tag—the pearlescent Cash App Wand—is now available for Cash App Card holders to purchase in the app, while supplies last. Designed to match the way Gen Z expresses their style and identity, the Cash App Wand is equipped with a keychain so customers can clip, wear, and carry it with ease. Cash App Tags were built for on-the-go payments and also shine in situations where phones aren’t allowed or cumbersome to pull out, from paying for food at a venue that’s phone-free, to ordering merch at a music festival without digging through a bag for a card.
"While digital wallets are invisible and physical cards are often buried in wallets, Cash App Tags are just the opposite," said Thomas Templeton, Hardware Lead at Block. "We see a unique opportunity here to make payments visible and social for the first time. Early testers have told us that they've loved carrying the Wand and showing it off at checkout, so we believe there's a real appetite for this among our customers"
1 in 5 American teens2 already have the customizable Cash App Card—the most popular debit card in the US among this audience3—and use it as a vehicle for self-expression by choosing exclusive styles, stamps, and emojis, and even drawing their own designs. A recent Cash App survey of Gen Z consumers also found that 38% purchase collectibles, accessories, or limited edition items at least monthly, more than any other generation.4 Cash App Tags meet the moment by turning the point of sale into an eye-catching extension of customers’ personal style.
The Cash App Wand is the first of multiple styles Cash App plans to introduce. In the coming weeks, the brand will drop limited runs of new Cash App Tag designs to Cash App Card holders ahead of general availability later this summer.
“We see this as an early starting point for Cash App Tags. The number of form factors we can create is nearly limitless,” added Templeton. “From clothing to jewelry, almost any item can become a way to pay with this technology. We’re looking forward to hearing what our customers want to see next.”
To get started, customers must have an active Cash App Card. They can activate their Tag by opening Cash App on their phone, then linking their Tag to their Cash App Card by following the instructions in the app. Once the Tag is activated, customers can tap to pay in less than a second without holding a phone or card.
Since Cash App Tags operate the same as the Cash App Card, they will work where Visa tap to pay is accepted and there are no minimum balance or activity requirements. Tags also have built-in security features including real-time transaction alerts, 24/7 fraud monitoring, and the ability to instantly lock and unlock the Tag within the app. Customers can also use the app to deactivate a Cash App Tag at any time.
The Wand is available starting today for $25 (plus any applicable sales tax) exclusively through Cash App. Cash App Tags are currently available for eligible customers ages 13 and up.5
To learn more about Cash App Tags, visit cash.app/tags.
About Cash App:
Cash App is the money app. Banking* on Cash App is easy: customers can receive paychecks early with direct deposit, spend money where Visa® is accepted with a personalized Cash App Card, and grow their money with a separate savings balance - all without hidden fees. Customers can also create a unique $Cashtag to share with anyone to get paid fast, make purchases with Cash App Pay, trade stocks and buy and sell bitcoin.** With Afterpay,*** customers can also pay over time in a way that best fits their financial needs through participating merchants or directly in the app. Download Cash App for free at cash.app/download.
*Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, , pursuant to a license from Visa U.S.A. Inc. See terms and conditions for the Sutton prepaid card and Sutton debit flex card. See cash.app for more details.
**Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC, subsidiary of Block, Inc. Stablecoin and Lightning Network are not available to New York residents. Bitcoin services provided by Block, Inc. Bitcoin services are not licensable activity in all U.S. states and territories. Block, Inc. operates in New York as Block of Delaware and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Investing and bitcoin are non-deposit, non-bank products that are not FDIC insured and involve risk, including monetary loss. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures.
***Afterpay is offered and managed through your Cash App account - no Afterpay account needed. Eligibility is based on several factors and is not guaranteed. Afterpay is not available in all states. Afterpay loans issued by First Electronic Bank, serviced by Square Capital, Inc. View state licenses.
Cash App users can now pay by tapping with a wand.
The Cash App Wand is a pearlescent physical payment accessory that is the first example of a new payment form factor called Cash App Tags, the company said in a Thursday (June 4) press release.
The Wand is equipped with a keychain so that it can be clipped, worn and carried with ease; is linked to the user’s Cash App Visa Card; and can be used anywhere Visa tap-to-pay is accepted, according to the release.
Like other Cash App Tags that will be introduced later, the Wand uses NFC technology to enable payments. Customers can use Tags by linking them to their Cash App Card, following the instructions in the app and tapping to pay. When using Tags, there’s no need for a phone or card.
The Cash App Wand was released in a limited run and can be purchased in the app for $25 while supplies last. Cash App plans to introduce several other styles of Cash App Tags in the coming weeks, per the release.
Thomas Templeton, hardware lead at Cash App parent company Block, said in the release that early testers of the Cash App Wand said they enjoy carrying it and showing it off at checkout.
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“We see this as an early starting point for Cash App Tags,” Templeton said. “The number of form factors we can create is nearly limitless. From clothing to jewelry, almost any item can become a way to pay with this technology.”
Templeton said in a Thursday post on X that in an earlier initiative, Cash App transformed payment cards from something boring to something people wanted to show off. The Cash App Card offers cardholders a choice of materials, colors and personalization.
However, the card still gets tucked away in a wallet, out of sight, he said. Cash App Tags, on the other hand, live outside the user’s wallet and in the world.
“The first Tag is a wand, because tapping to pay should feel a little more like magic,” Templeton said. “Not to worry, more forms coming throughout the summer.”
Key Takeaways Block's Cash App launched NFC-enabled Cash App Tags for tap-to-pay purchases without a phone.The first Cash App Wand targets Gen Z, combining payment functionality with personal style.Cash App Tags offer alerts, fraud monitoring, and in-app lock, unlock, or deactivation tools. Block’s (XYZ - Free Report) Cash App, the popular peer-to-peer payment platform, is introducing a new way to pay with the launch of Cash App Tags. These NFC-enabled physical payment accessories allow customers to make purchases with a simple tap, eliminating the need to pull out a phone or payment card. The launch represents another step in Cash App’s efforts to make digital payments faster, more convenient and more personalized.
The first-edition Cash App Tag, called the pearlescent Cash App Wand, is designed with Gen Z consumers in mind. Equipped with a keychain, the Wand can be clipped onto personal items, making it easy to carry and use throughout the day. The product blends payment functionality with personal style, turning everyday transactions into an extension of self-expression.
The launch aligns with strong engagement among younger users. According to Cash App, one in five American teens already has a customizable Cash App Card, which can feature unique styles, stamps, emojis and personal designs. Additionally, a recent Cash App survey found that 38% of Gen Z consumers purchase collectibles, accessories or limited-edition items at least once a month, more than any other generation, highlighting demand for products that combine utility and individuality.
Getting started with a Cash App Tag is simple. Customers with an active Cash App Card can activate their Tag directly by opening Cash App on their phone and linking it to their Cash App Card account. Once the Tag is activated, customers can tap to pay in less than a second anywhere Visa contactless payments are accepted. The Tags are particularly useful in situations where phones may be inconvenient or not-permitted to pull out.
Security remains a key feature of the new payment accessory. Cash App Tags operate through the Cash App Card network, providing users with real-time transaction alerts, 24/7 fraud monitoring and the ability to instantly lock, unlock or deactivate a Tag within the app. The Cash App Wand is currently available for $25, plus applicable tax, to eligible Cash App Card holders ages 13 and older. Cash App says more limited-edition Tag designs will launch in the upcoming months.
ConclusionThe Cash App Tags deepen Cash App’s ecosystem among Gen Z, create new revenue opportunities and brand engagement through collectible accessories, speed up everyday payments and maintain strong security. Together, these factors could help improve customer retention, increase card spending and strengthen Cash App’s cultural relevance.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have gained 6.9% compared with the industry's 3.9% growth.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the Zacks Internet-Software industry are BILL Holdings (BILL - Free Report) and Paycom Software (PAYC - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved 20 cents upward to $2.59 over the past month.
The consensus estimate for PAYC’s 2026 EPS has moved 3 cents northward to $10.66 over the past week.
New brands join Cash App’s commerce merchant network, giving customers more ways to pay this season
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Cash App today announced new retailers have added its commerce payment products — Afterpay and Cash App Pay — to their checkout experience, giving customers more places to shop and pay with the flexibility they want this summer.
New with Afterpay: Dog Friendly Co, GlassesUSA, Herff Jones, Jaxxon, k2o by Kylie Jenner, Kat The Label, Minky Couture, Monday Swimwear, Nanit, Rally House, REDVANLY, Shokz, and WeWoreWhat
New with Cash App Pay: Fubo, Instacart, Lime, and Sweetgreen
New with Afterpay and Cash App Pay: Made-it Pro, Shoe Carnival & Shoe Station, and Squire
"At Monday Swimwear, we're always looking for ways to make shopping more enjoyable for our customers. Adding Afterpay to our checkout gives our community the flexibility to invest in quality swimwear pieces and pay over time in installments. Whether someone is building their capsule swim wardrobe or treating themselves to that special bikini for summer, Afterpay lets them shop with confidence and manage their payments on their own terms. It's all about empowering our customers to feel their best, both in and out of the water,” said Shannon Owens, Head of Marketing, Monday Swimwear.
“More brands, more flexibility, more ways for customers to pay how they want — that's what this is about. Afterpay and Cash App Pay each serve a distinct customer need, and together they give our merchant partners a powerful set of tools to meet shoppers wherever they are in their purchase journey. We're proud to welcome all these new partners this summer and keep expanding what our commerce suite can offer,” said Tanuj Parikh, Head of Revenue, Afterpay and Cash App.
Afterpay and Cash App Pay are part of Cash App's commerce suite, designed to give customers more choice in how they pay. Afterpay lets shoppers split purchases into four interest-free1 or monthly installments. Cash App Pay lets Cash App customers pay directly from their balance or linked account. Together, they reflect Cash App's commitment to making checkout simpler and more flexible across the brands customers love.
About Cash App
Cash App is the money app. Banking* on Cash App is easy: customers can receive paychecks early with direct deposit, spend money where Visa is accepted with a personalized Cash App Card, and grow their money with a separate savings balance - all without hidden fees. Customers can also create a unique $Cashtag to share with anyone to get paid fast, make purchases with Cash App Pay, trade stocks and buy and sell bitcoin**. With Afterpay***, customers can also pay over time in a way that best fits their financial needs through participating merchants or directly in the app. Download Cash App for free at cash.app/download.
*Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. See terms and conditions for the Sutton prepaid card, Sutton debit flex card, and Bancorp debit flex card. See cash.app for more details.
**Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC, subsidiary of Block, Inc. Stablecoin, Bitcoin Map, and Lightning Network are not available to New York residents .Bitcoin services provided by Block, Inc. Bitcoin services are not licensable activity in all U.S. states and territories. Block, Inc. operates in New York as Block of Delaware and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Investing and bitcoin are non-deposit, non-bank products that are not FDIC insured and involve risk, including monetary loss. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures.
***Afterpay is offered and managed through your Cash App account - no Afterpay account needed. Eligibility is based on several factors and is not guaranteed. Afterpay is not available in all states. Afterpay loans issued by First Electronic Bank, serviced by Square Capital, Inc. View state licenses.
Cash App says several new retailers now offer its payment products at checkout.
The new integrations with Afterpay and Cash App Pay are designed to give shoppers greater flexibility, the Block-owned company announced in a news release Monday (June 8).
“More brands, more flexibility, more ways for customers to pay how they want — that’s what this is about. Afterpay and Cash App Pay each serve a distinct customer need, and together they give our merchant partners a powerful set of tools to meet shoppers wherever they are in their purchase journey,” Tanuj Parikh, head of revenue for Afterpay and Cash App.
“We’re proud to welcome all these new partners this summer and keep expanding what our commerce suite can offer.”
According to the release, merchants now offering Afterpay include Dog Friendly Co, GlassesUSA, Herff Jones, Jaxxon, k2o by Kylie Jenner, Kat The Label, Minky Couture, Monday Swimwear, Nanit, Rally House, REDVANLY, Shokz, and WeWoreWhat.
Instacart, Fubo, Lime and Sweetgreen have begun offering Cash App Pay, while Made-it Pro, Shoe Carnival & Shoe Station, and Squire now offer both options.
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“Adding Afterpay to our checkout gives our community the flexibility to invest in quality swimwear pieces and pay over time in installments,” said Shannon Owens, Monday Swimwear’s head of marketing.
“Whether someone is building their capsule swim wardrobe or treating themselves to that special bikini for summer, Afterpay lets them shop with confidence and manage their payments on their own terms.”
The announcement follows last week’s release of the Cash App Wand, a physical payment accessory that is the first example of a new “payment form factor” called Cash App Tags.
Linked to a user’s Cash App Visa Card, the wand can be used anywhere Visa tap-to-pay is accepted, using NFC technology to enable payments.
Meanwhile, recent research by PYMNTS Intelligence shows that while 53% of Americans are cutting back on spending, that hasn’t translated into greater use of buy now, pay later (BNPL) tools such as Afterpay.
As covered here last month, so-called “reactive consumers” — those whose spending and savings both decline and who responded almost entirely by cutting back — used BNPL at a rate of only 8%.
“By contrast, 48% of consumers who took proactive steps, such as adding income, negotiating bills and reaching for financial tools, used BNPL — six times more. BNPL account ownership tracks the same way: 37% of proactive consumers hold a BNPL account, versus 14% of reactive ones,” PYMNTS wrote.
Key Takeaways XYZ added new merchant partners for Afterpay and Cash App Pay across multiple retail categories.Afterpay offers installment plans, while Cash App Pay enables direct payments from Cash App accounts.XYZ broadens Cash App utility, supporting engagement and transaction-based revenue opportunities. Block’s (XYZ - Free Report) Cash App has expanded the reach of its commerce payment solutions, Afterpay and Cash App Pay, by adding several new merchant partners. The move aims to provide consumers with greater payment flexibility and a more seamless checkout experience across a broader range of retail categories.
Afterpay is now available at Dog Friendly Co, GlassesUSA, Herff Jones, Jaxxon, k2o by Kylie Jenner, Kat The Label, Minky Couture, Monday Swimwear, Nanit, Rally House, REDVANLY, Shokz and WeWoreWhat. Cash App Pay has been added as a payment option at Fubo, Instacart, Lime and Sweetgreen. Both Afterpay and Cash App Pay are now available with Made-it Pro, Shoe Carnival & Shoe Station, and Squire.
While Afterpay enables customers to split purchases into four interest-free installments or choose longer-term monthly payment plans, Cash App Pay allows users to pay directly from their linked Cash App accounts. Together, these solutions help simplify transactions and enhance the overall shopping experience.
The broader merchant acceptance of Afterpay and Cash App Pay enhances Cash App's utility beyond peer-to-peer payments, helping Block deepen customer engagement while creating additional transaction-based revenue opportunities. Increased adoption by merchants also strengthens the company's competitive position in the rapidly evolving digital payments and buy now, pay later (BNPL) markets.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have gained 6.6% against the industry's decline of 0.3%.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and Atlassian (TEAM - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved northward 8.4% to $2.59 over the past two months.
The consensus estimate for TEAM’s 2026 EPS has moved up 17.1% to $5.48 over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Block stands out for aggressive cost-cutting, reducing headcount by 40%, far exceeding peers' workforce reductions. The market's next phase should favor companies like XYZ that leverage AI to drive product innovation and accelerate growth. Confidence in semiconductor-led gains is waning as capex surges appear limited, shifting focus to AI-enabled productivity.
Thoma Bravo's billionaire founder says AI will transform junior workers' roles by eliminating grunt work, despite growing concerns about the technology's impact on entry-level roles.
Orlando Bravo, the founder of software-focused private equity firm Thoma Bravo, discussed how the role of junior associates is changing as the company increasingly utilizes AI, in a conversation with CNBC's Annette Weisbach at the SuperReturn conference in Berlin on Tuesday.
The jobs of junior associates will become greater, and they'll "mature a lot quicker," Bravo said. "They're spending a lot less time doing models or comparables than before...overall, now they really get into investing operations and a much bigger way of thinking about business."
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"I bother them a lot less, because at midnight I can do something really quickly with AI instead of [comparables], instead of calling them to do it in the middle of the night, which improves their life anyway, which is what they want," he added.
The comments come amid growing concerns about youth unemployment, with recent data showing the number of young people not in education, employment or training in the U.K. increased to over a million in the first four months of the year.
Young people are facing an increasingly competitive job market in the U.S. and U.K. as companies lay off thousands of workers and deploy AI, resulting in a shrinking of entry-level jobs.
"For young people, AI is going to be amazing, and I'm very, very upset that some people say that it'll destroy entry-level jobs," Bravo said.
"If you define the role of an associate as just doing a spreadsheet, you don't need that, but our associates are now calling on companies a lot more. They're developing relationships with CEOs, and we need a lot more of them."
Bravo explained that it's the first time in his 30-year career in private equity where he has needed to hire more, as AI creates more work.
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While some like Bravo are more bullish on AI's capacity to create jobs, there have been a slew of AI layoffs in the past year, with the technology behind over 50,000 layoffs in the U.S. in 2025. Major firms like Salesforce, IBM, and Microsoft cited AI as a reason for job cuts.
Meta said in April that it plans to lay off about 10% of its workforce to offset major capex spending on AI infrastructure this year, which the tech giant said could reach up to $135 billion in 2026.
Meanwhile, Jack Dorsey's Block laid off over 4,000 people, or over half of its workforce, saying it can operate more efficiently with a smaller team as AI automates more work.
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As young people struggle to secure jobs, the U.K.'s technology secretary Liz Kendall said the government is focused on upskilling young workers on AI by providing free courses to help boost employment.
Entry-level workers with AI skills can command salaries up to 25% higher, according to the most recent data from the world's largest recruitment firm, Randstad.
"We will help people through the jobs transition, we will give people the skills, we'll redesign those entry-level jobs," Kendall said in a conversation with CNBC's Ritika Gupta on "Squawk Box Europe."
"We've got a goal of upskilling 10 million workers by 2030. That is a third of the workforce, and already we've delivered 1.7 million AI skills courses. The truth is this: you're more likely to get a job and get a better-paid job with AI skills, and that is why we're putting such emphasis," she added.
The specialty coffee brand is leveraging Square’s commerce platform across four Southern California locations, with two additional openings planned for 2026
DISTRIBUTED-WORKFORCE/OAKLAND, Calif.--(BUSINESS WIRE)--Square today announced that Coffee Dose, a specialty coffee brand and dining destination founded in 2018 by Jeni and Oscar Castro, is further expanding with Square as its unified commerce platform. Coffee Dose operates four locations across Southern California and is opening two additional concepts this year: Coffee Dose Brunch Club in Encinitas in June 2026, and a 3,600-square-foot flagship in Palm Springs in the fall. Square’s infrastructure is utilized across live locations and will support the brand’s new venues as it scales.
Founded in 2018 with no coffee industry experience but an ambitious commitment to clean ingredients and irreverent branding, the Castro’s have built a loyal following around their nontraditional approach. Customers seek out Coffee Dose’s distinct menu of therapeutic lattes, house-made syrups, ingredients including charcoal and collagen, and seed oil free, vegan- and keto-friendly food. Since first onboarding Square in 2021, Coffee Dose has scaled from an 88 square foot pop-up occupying the corner of a hair salon into an eight-figure hospitality company, with each location in its growing portfolio possessing a unique identity.
A Commerce Platform Built for Continued Growth
Coffee Dose operates a range of quick-service restaurant (QSR) concepts: a flagship café, a drive-thru called MicroDose, and a walk-up café inside a pink shipping container called Dose in the Box. Across each location, Coffee Dose relies on Square to seamlessly manage operations and maintain a cohesive overview. With two boundary-pushing concepts coming this year, Coffee Dose is further leveraging Square for its ease of use, reporting and analytics capabilities, and partner integrations.
"I don’t see Square as just our point-of-sale system," said Jeni Castro, Co-Founder and CEO of Coffee Dose. "I see it as a partner that helps me scale my business in the most impactful way. The tools are easy for my team to use, the data and reporting help us make informed decisions across locations, and we can bring Square into each new opening without starting from scratch. That matters a lot when you’re growing as quickly as we are and have a thousand details to keep organized."
Coffee Dose’s Square usage spans a blend of hardware and software, including Square Register, Square Handheld, Kitchen Display System (KDS), online ordering for menu items and merchandise, gift cards, and loyalty. This ecosystem gives Coffee Dose operators the tools to run high-volume counter service, manage order flow across channels, and maintain critical customer engagement programs. The Per Diem integration is another key component of Coffee Dose’s technology stack, enabling mobile order-ahead and loyalty rewards for guests. From their café counter to a drive-thru lane to a walk-up shipping container window, Square’s platform supports all of the brand’s formats under a single account structure, giving Coffee Dose centralized visibility into sales, inventory, and customer data regardless of location model.
Supporting a Multi-Format, Multi-Location Operation
As Coffee Dose brings its Encinitas Brunch Club and Palm Springs flagship to life in 2026, both locations will run on Square from day one. The Palm Springs location, at 3,600 square feet on an acre of desert land, will be the brand’s largest destination to date and will include a drive-thru and walk-up window, in addition to full interior service – a multi-channel format that maximizes the flexibility Square was designed to unlock.
"Coffee Dose has built a popular, multi-location business that requires a technology platform able to keep pace across distinct formats: from a diner, to a café, to a drive-thru venue," said James Schonzeit, Head of Food & Beverage at Square. "They came to Square in 2021 and have grown significantly since. With two more openings this year, Square gives them the operational foundation to expand with confidence while preserving their standout brand identity across new concepts."
To learn more about how Square powers coffee and food and beverage (F&B) businesses, visit squareup.com/restaurants.
About Coffee Dose
Coffee Dose is a specialty coffee and dining destination founded in 2018 by Jeni and Oscar Castro in Costa Mesa, California. The brand operates four locations across Orange County, with two additional concepts, in Encinitas and Palm Springs, CA, opening in 2026. Coffee Dose is known for its house-made syrups, Rx Lattes, and proprietary Anti Bitch Blend roast, and serves a menu of seed oil free, vegan- and keto-friendly food alongside its core beverage program. For more information, visit coffeedose.cafe.
About Square
Square helps businesses turn transactions into connections and businesses into neighborhood favorites.
In 2009, Square started with a simple invention – the first mobile card reader, which changed how the entire financial system thinks about small businesses. Square has since grown into a global business platform helping millions of sellers of all sizes participate and thrive in their communities.
Whether independently run or a global chain, Square understands that sellers succeed when they have the freedom to focus on the experiences that keep customers coming back. From point of sale and payments to online commerce, staff management, cash flow tools, and more, Square brings together the tools sellers need to run and grow on one intelligent platform. For more information, visit squareup.com.
Sellers with $10,000 or more in their Square Savings account automatically earn the higher rate with no action required
SALT LAKE CITY--(BUSINESS WIRE)--Square Financial Services, Inc. (SFS), a wholly owned subsidiary of Block, Inc. (NYSE: XYZ), today announced the launch of Square High Yield Savings, a new deposit tier that pays 3.50% APY to Square sellers who maintain a daily balance of $10,000 or more in their Square Savings account. The rate is more than eight times the national average savings account rate1.
The new tier is designed to reward sellers who are building meaningful cash reserves through their Square Savings account. Sellers whose daily balance meets the $10,000 threshold earn 3.50% APY automatically, with no additional action required. The rate applies to the entire balance, is calculated daily and does not require a separate application or account.
Helping Sellers Build Financial Resilience
Square Savings was built on a straightforward premise: sellers who already run their business on Square should be able to put their cash to work in the same place. For nearly five years, Square Savings has given sellers a seamless, automated ability to put funds aside from the same platform they use to accept payments, organize inventory, and manage their staff — resulting in high seller satisfaction while helping SFS build a stable, low-cost deposit base.
The introduction of the 3.50% APY tier reflects SFS's broader strategy to grow core deposits while delivering meaningful value back to sellers. As deposits grow, SFS is uniquely positioned to fund its lending programs at a lower cost of capital — to enable delivering on SFS and Block’s mission of expanding across to financial services for businesses and customers. Square High Yield Savings represents the next step in SFS's strategy to help Square sellers more effectively meet their savings goals while deepening its deposit base and expanding its role as the financial engine behind Block's seller ecosystem.
"Square sellers are business owners first, but they're also savers, planners and investors in their own futures," said Richard Rosenthal, CEO of Square Financial Services. "This rate reflects our confidence in the Square seller base as a source of stable, long-term deposits — and our commitment to returning real value to the small businesses that make that model work.”
How It Works
Square Savings accounts are available to eligible Square sellers through the Square Dashboard. With Square Savings, sellers can automate their savings by configuring a percentage of their daily sales to deposit into their account each day, and organize those funds across custom savings folders for various business needs. The high yield tier activates automatically when a seller's total savings balance is at least $10,000. Key details:
3.50% APY on daily balances of $10,000 or more No minimum deposit to open an account No monthly fees FDIC insurance coverage of up to $2.5 million through the Square Savings deposit sweep program Interest Rate applies to the entire balance and is calculated daily Sellers can schedule automatic transfers from their processing volumes to steadily build toward their financial goals — a feature designed to accelerate deposit growth and deepen daily engagement with the Square platform.
What's Next
Coming soon, Square will release the automated sales tax folder, a new feature within Square Savings that automatically sweeps the sales tax collected on eligible card sales into a dedicated folder. For small business owners who struggle to keep track of sales taxes collected, it helps reduce manual tracking. Tax rates are pulled directly from a seller's existing Square tax settings, so there is no additional configuration required. The feature is designed to work across multiple locations and tax jurisdictions. Additional details on timing and availability will be announced ahead of launch.
Disclosures
Square Savings accounts are provided by Square Financial Services, Inc. Member FDIC. Accrue annual percentage yield (APY) of 1.00% based on your total savings balance (inclusive of all folders and accrued unpaid interest). You may qualify for an increased APY of 3.50% if your total savings balance (inclusive of all folders and accrued unpaid interest) is at least $10,000. See Square Savings Deposit Account Terms and the Interest Rate Chart for more information. APY subject to change, current as of 6/8/2026. No minimum deposit is required to open an account. Accounts will not be charged monthly fees. The Square Savings deposit sweep program distributes your funds among multiple FDIC-insured partner banks, meaning your eligible savings deposits have FDIC insurance coverage of up to $2.5 million. Pending balances are not subject to FDIC insurance.
About Square Financial Services
Square Financial Services, Inc. is a Utah-chartered industrial bank and independently governed subsidiary of Block, Inc., headquartered in Salt Lake City, Utah. SFS provides lending products to Square sellers and Cash App customers and offers FDIC-insured deposit accounts. SFS is regulated by the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions.
About Square
Square helps businesses turn transactions into connections and businesses into neighborhood favorites.
In 2009, Square started with a simple invention — the first mobile card reader, which changed how the entire financial system thinks about small businesses. Square has since grown into a global business platform helping millions of sellers of all sizes participate and thrive in their communities.
Whether independently run or a global chain, Square understands that sellers succeed when they have the freedom to focus on the experiences that keep customers coming back. From point of sale and payments to online commerce, staff management, cash flow tools, and more, Square brings together the tools sellers need to run and grow on one intelligent platform. For more information, visit squareup.com.
About Block
Block, Inc. (NYSE: XYZ) builds technology to increase access to the global economy. Each of its brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send and store money. Afterpay is transforming the way customers manage their spending over time. TIDAL is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, they are helping build a financial system that is open to everyone.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including statements regarding SFS's ability to grow deposits and lower its funding costs. These statements involve risks and uncertainties, and actual results may differ materially. Block undertakes no obligation to update forward-looking statements except as required by law.
Block may suffer a prolonged macroeconomic normalization cadence, with it depressing its intermediate-term stock price/valuation prospects, despite the promising reversal to growth. Otherwise, given the robust FQ1'26 performance metrics, it is unsurprising that the management has raised their FY2026 guidance while narrowing the gap to the prior 2028 growth targets. XYZ's strong cross-selling/engagement from Neighborhoods/new AI tools has driven the accelerating GPV/higher actives growth profile and the richer Financial Solutions margins.
Fifth Third Bancorp demonstrates strong earnings and robust preferred dividend coverage, with net income of $2.52 billion versus $146 million in preferred payouts. The Comerica acquisition adds scale, boosts consolidated earnings, and modestly enhances preferred dividend coverage, though 2026 is seen as a transition year. FITBO preferred shares yield 6.49% at current prices, offering a 250 bps spread over 5-year Treasuries, with low call risk due to their attractive cost of capital.
April 27, 2026 18:40 ET | Source: Perseus Mining Limited
Perth, April 28, 2026 (GLOBE NEWSWIRE) -- First Stoping Operations at CMA Underground in Côte d’Ivoire
Overview
Perth, Western Australia/April 28, 2026/Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce it has successfully completed the first underground production blast at its CMA Underground project. The blast was fired from Blika 1120 Ore Drive South at the Yaouré Gold Mine in Côte d’Ivoire, with excavation of the first production ore commenced immediately. This event is a key milestone for the project and signals the continuation of the project’s ramp up toward steady-state production, scheduled for Q3 FY27.
The CMA Underground mine is both the first mechanised underground mine in Côte d’Ivoire and the first for Perseus. With investment in the CMA Underground project, Perseus continues to be a key partner in assisting to build skills in the Ivorian mining sector. The start of underground ore production represents a significant milestone of the development of broader mining capability in the country.
Perseus’s Managing Director and CEO Craig Jones said:
“The first production blast is a defining moment for Perseus and Côte d’Ivoire, representing the culmination of many months of intensive underground development, drilling and infrastructure installation. This is a testament to the hard work and dedication of our site team and contractors, and we look forward to scaling up operations over the coming months with the higher-grade underground ore providing mill feed.”.
COMPETENT PERSON STATEMENT:
All production targets referred to in this release are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.
The information in this report that relates to the Mineral Resources and Ore Reserve for the Edikan and Sissingué Gold Mines was updated by the Company in a market announcement “Perseus Mining updates Mineral Resources and Ore Reserves” released on 21 August 2025. The information in this report that relates to the Mineral Resources and Ore Reserve for the Nyanzaga Gold Project was updated in a market announcement “Perseus Mining Increases Nyanzaga Gold Project Ore Reserves to 4.0 Moz” released on 20 February 2026.The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in that market release continue to apply and have not materially changed.
The Company confirms that the material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Edikan Gold Mine, Ghana” dated 6 April 2022, “Technical Report — Yaouré Gold Project, Côte d’Ivoire” dated 18 December 2023, “Technical Report — Sissingué Gold Project, Côte d’Ivoire” dated 29 May 2015, and “Technical Report — Nyanzaga Gold Project, Tanzania” dated 10 June 2025 continue to apply.
Caution Regarding Forward Looking Information:
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Yaouré Gold Mine, the Edikan Gold Mine and the Sissingué Gold Mine without any major disruption, development of a mine at Nyanzaga, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
The Competition and Markets Authority's decision to impose a conduct requirement on Google over its use of publisher content in artificial intelligence search marks a meaningful shift in the balance of power between the technology giant and content owners, according to Panmure Liberum.
The broker said it takes a positive view of the ruling, which was announced on 3 June following a consultation process that began in January 2026, after the CMA designated Google as having strategic market status in October 2025.
The conduct requirement has three core elements: giving publishers effective controls to withhold their content from Google's generative AI systems, including for training and grounding purposes.
This requires Google to publish clear metrics on how publisher content is being used in AI search features, and mandates accurate attribution of content so consumers can verify AI-generated responses and publishers can protect their brand value.
Panmure said the ruling provides publishers with a practical basis to negotiate more fairly with Google for the commercial value of their content, noting that Google has already made it technically possible for publishers to switch off access via Search Console.
The broker said news publishers such as Reach PLC (LSE:RCH), which it rates as a 'buy' with a 139p target price, are likely to be among the most immediate commercial beneficiaries given the need for AI search to draw on up-to-date news content, while interest-specific publishers such as Future, also rated buy with a 500p target, should also benefit meaningfully.
Panmure acknowledged criticisms of the ruling, including concerns over the opt-out rather than opt-in basis, a nine-month implementation window for Google, and questions over enforcement, but said these do not override the fundamentally favourable nature of the arrangement, which is designed to be dynamic and capable of evolving alongside the AI market.
The broker also flagged the ongoing lawsuit brought by five major publishers, including Elsevier, part of RELX, against Meta over alleged copyright infringement in training its AI models, describing it as a potentially landmark case for the wider legal protection of intellectual property in the AI era.
Building on innovations introduced at Qlik Connect® 2026, Qlik helps Snowflake customers bring more enterprise data into Snowflake in real time, extend Snowflake and Snowflake Cortex AI workflows with governed enterprise context, and connect analytics to governed action.
Key takeaways:
Bring more enterprise data into Snowflake in real time: Qlik helps customers move data from SAP, mainframe, SaaS, databases, and streaming environments into Snowflake with speed and scale. Extend Snowflake and Snowflake Cortex AI workflows with governed enterprise context: Qlik helps customers connect Snowflake data with governed data products, lineage, quality signals, and business context, including relevant context that may sit outside Snowflake. Connect insight to governed action: Qlik extends Snowflake investments with analytics, open agent interoperability, and workflow activation so teams can move from data to insight to action more effectively. SAN FRANCISCO--(BUSINESS WIRE)--Qlik® today announced expanded ways for Snowflake customers to bring real-time enterprise data, governed business context, and open agentic capabilities into Snowflake-centered AI and analytics initiatives. Timed for Snowflake Summit 26, the announcement builds on innovations introduced at Qlik Connect 2026 and highlights how Qlik complements Snowflake by helping joint customers connect more enterprise data to downstream analytics and AI.
As organizations push beyond AI pilots, many are finding that the bottleneck is not model access. The harder challenge is connecting current enterprise data, preserving business meaning, and governing how AI insights are used across real workflows without adding more lock-in, cost opacity, or operational risk.
Qlik helps address that need by moving enterprise data into Snowflake in real time, shaping reusable governed data products, and extending analytics and AI workflows with governed context from systems and data sources that may sit beyond Snowflake. As a Snowflake Elite Technology Partner, Qlik brings together data integration, data quality, analytics, and open agent interoperability in a way that helps joint customers accelerate AI value while preserving trust and control.
Qlik is also introducing a Snowflake Native App for Qlik Model Context Protocol (MCP) Server, connecting Snowflake Intelligence and Cortex Agents to Qlik Cloud. The app lets Cortex Agents access Qlik-governed data and analytics assets directly from Snowflake workflows, including Qlik apps, KPIs, formulas, chart data and lineage, grounding natural-language exploration in Qlik’s trusted analytics engine.
“Snowflake customers do not need more AI experimentation around the edges,” said Josh Good, VP, Tech Ecosystems & Strategy at Qlik. “They need a practical way to get more value from Snowflake by bringing in more enterprise data, preserving business context, and connecting Snowflake and Cortex workflows to governed intelligence across the business. Qlik helps do that with the flexibility and control enterprises expect.”
“Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data,” said Amy Kodl, SVP, Worldwide Alliances and Channels at Snowflake. “Qlik complements that foundation by helping joint customers connect more enterprise data and business context to Snowflake workflows, so teams can move faster from data to insight to action with the governance required at enterprise scale.”
What’s new
Real-time enterprise data into Snowflake: Qlik supports CDC, streaming, batch, and event-driven movement from hundreds of enterprise sources into Snowflake, helping customers reduce latency and accelerate time to analytics. Governed data products and business context: Qlik helps customers create curated, governed, and reusable data products with lineage, quality controls, stewardship, and trust signals that improve confidence in analytics and AI-driven decisions. Context for Snowflake Intelligence and Cortex AI workflows: The Snowflake Native App for Qlik MCP Server connects Snowflake Intelligence and Cortex Agents to Qlik Cloud, helping customers bring Qlik-governed analytics context, including relevant enterprise context that may sit outside Snowflake, into Snowflake workflows. An open fit with existing investments: Qlik is designed to work with the systems customers already use, helping teams extend their Snowflake environment with trusted intelligence rather than adding another stack. Together, Qlik and Snowflake help organizations turn strong data infrastructure into more trusted, explainable, and actionable AI outcomes. That gives joint customers a more practical path to enterprise AI, especially in environments where SAP data, operational systems, documents, and real-time streams all need to work together under governance.
Check out keynotes from Snowflake Summit 26 live or on-demand here and stay on top of the latest news and announcements from Snowflake on LinkedIn and X.
About Qlik
Qlik helps teams get more out of AI with data they can rely on and control. It delivers trusted data products, a powerful analytics engine, and AI agents. This helps teams reduce risk, keep operating costs in check, and scale AI responsibly as needs evolve. Used by 75% of the Fortune 500, Qlik supports customers worldwide. Qlik works with the systems and partners customers already use, so teams can stay flexible without lock-in.
Led by Snowflake, the Open Semantic Interchange creates a universal semantic data framework that helps financial firms use data and AI more effectively.
CHICAGO--(BUSINESS WIRE)--Northern Trust today announced at Snowflake’s annual user conference, Snowflake Summit 26, that it is a founding member of the Financial Services Working Group under Open Semantic Interchange (OSI).
OSI is an open source initiative designed to help organizations work from shared, consistent data definitions. While a universal format provides the structural blueprint, the true value lies in contextualizing data to reflect the unique nuances of specific industries - a movement being led by the financial services sector.
In financial services, similar data - such as accounts, transactions, or market information - is often defined in different ways across firms. Convening financial institutions and technology partners, the OSI Financial Services Working Group will focus on harmonizing this fragmented data through an open, industry-neutral semantic model framework.
“OSI matters because it’s built with our peers, not defined in isolation,” said Jez Davies, Chief Information Architect at Northern Trust. “By co-creating industry standards, we’re laying the foundations for the Agentic future, enabling AI to reason across data in ways that are accurate, auditable and reproducible, while allowing our clients to seamlessly consume the same underlying semantic models.”
This specialized effort ensures that proprietary institutional data and third-party market intelligence share a consistent logical layer, enabling AI agents to navigate with precision, grounding, and scale that is essential for the Agentic Era. Through its participation, Northern Trust is helping advance shared data standards to improve interoperability across the financial ecosystem and support a common understanding among institutions, clients, and technology providers.
“Open architecture is central to how we help clients operate in an increasingly complex data and technology environment,” said Kelley Conway, Chief Data and Analytics Officer at Northern Trust. “By establishing shared industry data standards, we’re making it easier for clients to integrate the tools and technologies they choose, while ensuring their data remains consistent, reliable, and ready to support AI-driven insights.”
“Unlocking the next era of financial services requires moving beyond data access to a foundation of autonomous execution, and the Open Semantic Interchange is the critical link in that evolution,” said John Heisler, Head of AI for Financial Services, Snowflake. “By establishing a vendor-neutral semantic standard with collaborators like Northern Trust, we are ensuring that AI agents across the ecosystem ground on the same foundational meanings. This shared vocabulary is essential for eliminating semantic friction, meeting rigorous global compliance, and enabling the high-conviction, agentic workflows that will define the future of the industry.”
OSI is poised to transform interoperability within the data and AI ecosystem by providing a transparent, community-driven standard. This collaborative effort under the OSI umbrella establishes the grounded context essential for the next frontier on innovation.
To learn more about the Open Semantic Interchange visit Snowflake’s blog here.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2026, Northern Trust had assets under custody/administration of US$18.6 trillion, and assets under management of US$1.8 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.
Baron Global Opportunity Fund declined 4.8% (Institutional Shares) during the first quarter. Top contributors to performance were Space Exploration Technologies Corp., ASML Holding N.V., and Taiwan Semiconductor Manufacturing Company Limited. Top detractors to performance were Shopify Inc., Snowflake Inc., and Bajaj Finance Limited.
The stock market has always rewarded companies that outperform expectations. For decades, the formula was simple: beat earnings estimates, raise guidance, and watch the stock move higher. But the AI boom has changed the rules.
Today, the S&P 500 continues to notch fresh all-time highs, yet much of that strength is concentrated in a relatively small group of AI-related stocks. According to S&P Dow Jones Indices data, the Information Technology sector now represents roughly 37% of the S&P 500’s market capitalization, the highest level ever recorded and nearly double its weighting near the market’s 2020 pandemic low.
Increasingly, it isn’t enough for management teams to report strong results. Investors want to hear three specific words attached to those results:
“Due to AI.”
Earnings Beats Aren’t What They Used to Be For years, Wall Street rewarded operational excellence. A company that exceeded analysts’ estimates and increased future guidance typically saw its stock rise because investors viewed the stronger outlook as evidence of growing demand.
That relationship is weakening. In April. Both ASML (NASDAQ:ASML | ASML Price Prediction) and ServiceNow (NYSE:NOW) delivered what investors traditionally would have called “beat-and-raise” quarters. Revenue exceeded expectations and guidance moved higher, yet both stocks declined following their reports.
The issue wasn’t the numbers. Instead, it was investors increasingly wanting proof that a company’s growth is directly tied to artificial intelligence. Strong performance alone is no longer enough to command premium valuations.
Let’s look at what happened recently when companies explicitly linked their results to AI demand.
Company AI Narrative Stock Reaction Snowflake (NASDAQ:SNOW) AI-driven data platform demand +30% Dell Technologies (NYSE:DELL) AI server orders and infrastructure demand +33% Hewlett Packard Enterprise (NYSE:HPE) AI systems and enterprise AI deployments +19% (but up 32% premarket) Each company reported strong fundamentals. More importantly, each management team credited AI adoption as a major driver of those results. That’s what investors were buying.
In other words, AI isn’t simply creating new products. It’s changing how the market values existing businesses.
Fund flows tell the same story. According to ETF industry data, the iShares Expanded Tech-Software Sector ETF (CBOE:IGV) attracted more than $1.5 billion in net inflows through the end of May, marking its third-largest monthly inflow since November 2025. Investors aren’t merely buying technology stocks anymore. They’re concentrating capital into companies perceived as direct beneficiaries of AI adoption.
That distinction matters because valuation expansion often contributes more to stock performance than earnings growth alone.
Key Takeaway Granted, not every company invoking AI deserves a higher stock price. Wall Street eventually separates genuine AI revenue growth from marketing buzzwords. Meta Platforms (NASDAQ:META) stock is down nearly 11% since earnings, despite a beat-and-raise quarter and the massive amount of capex going toward AI infrastructure.
Still, the market’s message is unmistakable. A company can beat earnings estimates, exceed revenue forecasts, and raise guidance. Yet if management cannot clearly connect that performance to AI demand, investors may view the results as less valuable than they would have just a few years ago.
Meanwhile, companies that can demonstrate AI-driven revenue growth are receiving valuation premiums that would have seemed difficult to justify before the current cycle began.
In short, the most important words during earnings season are no longer “beat estimates.”
Just last week, Anthropic announced that it had raised $65 billion in a Series H funding round that valued the company at $965 billion -- making it the world's most valuable start-up. Now, the company's recent confidential S-1 filing is perhaps the clearest signal yet that participants in the artificial intelligence (AI) gold rush are marching toward the public markets.
SpaceX's initial public offering will take place later this month, and AI chipmaker Cerebras (CBRS 5.54%) listed a couple of weeks ago. With all of this action underway, smart investors need to weigh the extraordinary promises being made against the sobering lessons from how the hottest IPOs have performed in recent years.
Image source: Getty Images.
Why is Anthropic going public? Anthropic's near-trillion-dollar valuation reflects more than optimism about large language models (LLM). The company's backers are pricing in the belief that Anthropic's Claude models and partnerships with cloud hyperscalers -- namely Amazon (AMZN 1.24%) and Alphabet (GOOGL +0.53%) (GOOG +0.44%) -- will allow it to be a dominant force in the next era of enterprise software, scientific research, and consumer applications.
The likely proximity of its IPO to those of SpaceX and Cerebras adds an interesting layer of significance. SpaceX is aiming to be the largest IPO in history, targeting a valuation of $1.75 trillion. Meanwhile, Cerebras' recent debut tested investor appetite for makers of specialized AI chip hardware.
Taken together, I think this trifecta of IPOs marks a maturation point for the AI ecosystem. In other words, the venture capital funds that have invested in these start-ups for years are beginning to seek liquidity. Now, retail and institutional investors no longer need to watch these start-ups from the sidelines. The big question, however, is whether the market can price Anthropic correctly once it hits the public exchange.
Image source: Getty Images.
Analyzing hot tech IPOs from recent history A thorough look at the most hyped technology IPOs in recent years reveals a fairly consistent script. To summarize, such stocks usually surge immediately following their debuts. Their run-ups are fueled by a combination of scarcity, media frenzy, and FOMO-driven participation from retail investors.
Once lock-up periods expire, company insiders, early employees, and venture investors begin to cash out. New supplies of shares flood the market just as the initial bullish narratives begin to come face to face with operational realities. Growth stories must be repeatedly proven with each passing quarter, and lofty valuations leave little room for error.
Palantir Technologies (PLTR 2.32%) provides a textbook example. The company's 2020 direct listing opened with enormous enthusiasm. However, after a couple of quarters of mundane growth, Palantir stock spent the next three years trading broadly sideways.
Snowflake (SNOW 3.31%) followed a similar arc. Shares were initially priced at $120, but more than doubled on the first day of trading back in September 2020. Unfortunately, investors who bought near the peak endured a multiyear grind as Snowflake was unable to justify its high valuation multiples amid lumpy growth.
PLTR data by YCharts.
Fresh off its own listing, Cerebras' stock has already experienced the classic post-IPO compression as the early hype cycle has cooled.
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Is the Anthropic IPO a good buy? Applying the patterns explored above to Anthropic suggests that there is a high-probability outcome from the IPO: an initial pop driven by the novelty of owning stock in the world's most valuable AI start-up, followed by an extended period of valuation consolidation.
Once lock-up agreements expire and the first few quarters of public company scrutiny inevitably arrive, any gaps between management's execution and the market's optimism will almost certainly be magnified. The same dynamics that humbled Palantir and Snowflake will likely manifest for Anthropic, too.
So, is the Anthropic IPO a buy? History says no -- at least not close to its opening day. Investors who chase that euphoria risk learning for themselves a costly lesson that earlier tech IPO buyers learned the hard way. In my view, the smarter approach would be to exercise patience and wait for the post-IPO hype to dissipate. Once early sellers have cleared and the growth narrative has normalized, Anthropic can be better judged on its business fundamentals rather than valuation theater.
Snowflake (SNOW 3.31%) stock was down in the dumps until May 27 this year, but a solid set of results for the first quarter of fiscal 2027 (which ended on April 30) sent it skyrocketing the following day.
Snowflake stock surged a whopping 36% on May 28, as it beat Wall Street's expectations and raised its full-year revenue and earnings guidance. The stock -- which had lost 19% of its value in 2026 before the release of its fiscal Q1 results on May 27 -- seems to have become the new darling of the artificial intelligence (AI) software space.
That's not surprising, as Snowflake's AI business is taking off. The company operates a cloud-based data platform, which helps customers store and analyze both structured and unstructured data. Snowflake's platform also enables customers to share data, derive analytics and insights from their proprietary data, and build applications, among other use cases.
As Snowflake has been offering AI software tools to its customers to get more out of their data, it is easy to see why it is anticipating faster growth. However, is it a good idea to buy this AI stock following its latest results? Or will it meet the same fate as Palantir Technologies (PLTR 2.32%), a stock that has slipped substantially this year despite delivering phenomenal growth?
Let's find out.
Image source: The Motley Fool.
AI is going to supercharge Snowflake's growth Snowflake's fiscal Q1 revenue increased 33% year over year to $1.39 billion. Its non-GAAP earnings per share increased by an impressive 62.5% year over year to $0.39. Snowflake management noted on the latest earnings call that its overall customer count increased by 38% year over year to almost 14,000.
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Snowflake notes that the adoption of its AI tools is increasing rapidly. It is worth noting that 13,600 customer accounts were using its AI solutions last quarter, up from 5,200 in the year-ago period. Even better, Snowflake's robust customer growth is accompanied by increased spending by existing customers.
This is evident from the company's net revenue retention rate of 126%. This metric, which is calculated by dividing the product revenue generated by Snowflake's customers in a period by the spending by those same customers in the year-ago period, expanded by a couple of percentage points year over year. A net revenue retention rate of more than 100% means that Snowflake's existing customers are spending more money on its offerings.
Given that Snowflake continues to add new customers at a nice clip, it won't be surprising to see its revenue pipeline getting better in the future. In fact, Snowflake's remaining performance obligations (RPO), which is the value of contracts yet to be fulfilled at the end of a quarter, increased by 38% year over year in fiscal Q1 to $9.2 billion.
That was higher than the company's revenue growth, suggesting its future growth is likely to accelerate. This is precisely why Snowflake management now expects 31% growth in its product revenue in fiscal 2027, higher than the 27% growth it had expected earlier.
Analysts are expecting its earnings per share to increase by 54% in the current fiscal year to $1.93, and they have hiked their growth expectations for the next couple of years as well.
Data by YCharts
Ideally, the potential acceleration in Snowflake's bottom-line growth should be rewarded with more upside. However, there is one factor that may limit its upside potential, and that's precisely why I think that Snowflake could get the Palantir treatment on the stock market.
An expensive valuation could weigh on the stock, just like what Palantir investors have been experiencing Palantir stock is down by 15% so far in 2026. That's despite the company's impressive growth. Palantir's Q1 revenue increased by 85% year over year to $1.63 billion. Its adjusted earnings per share increased by 2.5x to $0.33 per share. What's more, Palantir raised its full-year guidance, but that hasn't boosted investor confidence in the stock.
Just like Snowflake, even Palantir is building a solid revenue pipeline. Its remaining deal value, which is the total value of contracts yet to be fulfilled at the end of a quarter, nearly doubled year-over-year in Q1 to $11.8 billion. This explains why consensus estimates are projecting a 95% spike in Palantir's earnings this year, followed by impressive growth over the next couple of years.
Data by YCharts
However, the stock trades at an expensive 161 times earnings. Its forward earnings multiple of 97 isn't cheap either. However,, Palantir's forward earnings multiple is lower than Snowflake's.
Data by YCharts
Additionally, Palantir is growing at a much stronger pace, and its future growth is likely to be better than Snowflake's, as per the charts above. So, the post-earnings pop in Snowflake stock doesn't necessarily guarantee that it will go on a sustained bull run from here. Palantir investors are already experiencing this pain in 2026.
That's why investors would do well to assess their risk profile before buying Snowflake stock, as its expensive valuation could weigh on its performance in the future.
Snowflake Inc (NYSE:SNOW)’s artificial intelligence strategy is showing increasing signs of commercial traction, according to Jefferies analysts, who reiterated their ‘Buy’ rating and $300 price target on the cloud data platform company following its user conference and investor day in San Francisco.
This price target implies upside from current levels of about $245.
The analysts wrote that they came away with greater conviction in Snowflake's AI monetization opportunity, particularly through CoCo, the company's coding agent, which they believe is beginning to drive customer expansions alongside its core data warehousing business.
According to Jefferies, conversations with partners and customers suggested that CoCo has become significantly more reliable since April and performs particularly well on Snowflake-specific data workflows. The firm wrote that the tool can outperform third-party coding agents in areas such as text-to-SQL generation because it leverages Snowflake's existing data governance and enterprise context.
The analysts noted that the current benefits from AI adoption appear to be centered on improving productivity and accelerating migrations rather than generating entirely new workloads. They wrote that customers are seeing returns primarily through faster execution and reduced implementation times.
Jefferies also highlighted what it described as improving go-to-market dynamics. The firm wrote that AI tools are helping shorten sales cycles, speed up customer adoption and increase the pace of migrations onto the Snowflake platform, although it noted that successfully embedding AI into the company's sales strategy remains an important execution focus.
At Snowflake's investor day, management emphasized that CoCo is helping existing users complete workflows more efficiently, with the analysts writing that the product's key advantage lies in its native integration with Snowflake's data and governance infrastructure rather than the underlying AI models themselves.
The firm also pointed to the longer-term potential of Snowflake CoWork, a personal AI agent designed for enterprise use cases, though it noted that adoption remains in its early stages and may require additional customer education.
From a financial perspective, Jefferies modestly raised its earnings estimates while leaving revenue projections largely unchanged. The analysts wrote that Snowflake's valuation of roughly 12 times calendar 2027 revenue appears reasonable for a company they expect to deliver more than 30% growth, while trading at a discount to some cloud software peers.
Jefferies also wrote that Snowflake could achieve GAAP profitability by the fourth quarter of fiscal 2028, driven by expanding operating margins and a declining level of stock-based compensation as a percentage of revenue.
Elon Musk’s SpaceX is days away from what may be the biggest IPO ever, but Morningstar is telling investors to sit out the listing and wait for a cheaper entry.
“People will have an opportunity to get a better margin of safety than they’re likely to see on the day of the IPO, or even in the weeks right after,” Owens said.
Why Morningstar Sees Better Entry Points AheadOwens told viewers the firm’s $1.9 trillion upside case, which prices SpaceX at $154 per share, hinges on Starship reusability scaling and the commercialization of orbital AI data centers. He assigns that “priced for perfection” outcome a roughly 7% probability.
SpaceX is also debuting with what Owens called a “minuscule” 4% float, fast-tracked index inclusion and a locked-in price, factors that may juice opening demand before supply catches up.
The Lockup Calendar Is The CatalystOver 60% of SpaceX’s outstanding stock, including the shares held by Musk, will be under an extended lockup period that runs beyond the typical 180-day window, according to the company’s amended prospectus.
The structure mirrors Snowflake Inc. (NYSE:SNOW), which used a similar staggered release ahead of its 2020 debut and still finished its first year with a drawdown of more than 50%.
Prediction market traders have not yet embraced the bearish case. The Polymarket book on SpaceX’s IPO closing market cap currently shows the $2.0 trillion to $2.5 trillion range leading at around 46% across more than $2.3 million in volume.
Image: Shutterstock
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Snowflake Inc (NYSE:SNOW)’s artificial intelligence strategy is showing increasing signs of commercial traction, according to Jefferies analysts, who reiterated their ‘Buy’ rating and $300 price target on the cloud data platform company following its user conference and investor day in San Francisco.
This price target implies upside from current levels of about $245.
The analysts wrote that they came away with greater conviction in Snowflake's AI monetization opportunity, particularly through CoCo, the company's coding agent, which they believe is beginning to drive customer expansions alongside its core data warehousing business.
According to Jefferies, conversations with partners and customers suggested that CoCo has become significantly more reliable since April and performs particularly well on Snowflake-specific data workflows. The firm wrote that the tool can outperform third-party coding agents in areas such as text-to-SQL generation because it leverages Snowflake's existing data governance and enterprise context.
The analysts noted that the current benefits from AI adoption appear to be centered on improving productivity and accelerating migrations rather than generating entirely new workloads. They wrote that customers are seeing returns primarily through faster execution and reduced implementation times.
Jefferies also highlighted what it described as improving go-to-market dynamics. The firm wrote that AI tools are helping shorten sales cycles, speed up customer adoption and increase the pace of migrations onto the Snowflake platform, although it noted that successfully embedding AI into the company's sales strategy remains an important execution focus.
At Snowflake's investor day, management emphasized that CoCo is helping existing users complete workflows more efficiently, with the analysts writing that the product's key advantage lies in its native integration with Snowflake's data and governance infrastructure rather than the underlying AI models themselves.
The firm also pointed to the longer-term potential of Snowflake CoWork, a personal AI agent designed for enterprise use cases, though it noted that adoption remains in its early stages and may require additional customer education.
From a financial perspective, Jefferies modestly raised its earnings estimates while leaving revenue projections largely unchanged. The analysts wrote that Snowflake's valuation of roughly 12 times calendar 2027 revenue appears reasonable for a company they expect to deliver more than 30% growth, while trading at a discount to some cloud software peers.
Jefferies also wrote that Snowflake could achieve GAAP profitability by the fourth quarter of fiscal 2028, driven by expanding operating margins and a declining level of stock-based compensation as a percentage of revenue.
For the better part of two years, the question trailing Snowflake into every earnings call was the same one: when does the growth come back? May 27 delivered an answer, and the answer arrived with enough force that analysts who had spent recent months quietly trimming their price targets found themselves writing upgrade notes faster than they had written the cuts.
Product revenue for the first quarter of fiscal 2027 reached $1.33 billion, up 34% from the prior year period and the largest sequential dollar increase the company has ever recorded in a single quarter. Total revenue came in at $1.39 billion, up 33% year over year.
Adjusted earnings per share landed at $0.39 against a Street consensus of $0.32. The beat on revenue against expectations stretched to roughly $69 million, a margin too wide to explain away with conservative guidance mechanics. Something real accelerated inside this business between February and April, and the market spent the following week trying to figure out exactly how durable that acceleration is.
CEO Sridhar Ramaswamy described the quarter as an inflection point. Given the numbers behind the statement, calling it that felt like an accurate description rather than executive optimism. Full-year product revenue guidance moved to $5.84 billion from $5.66 billion, implying 31% growth across the fiscal year.
Remaining performance obligations grew 38% year over year to reach $9.21 billion, a contracted backlog that tells you customers are not just spending more today but committing to spend more tomorrow.
What the Analyst Community Did Next
Goldman Sachs lifted its price target to $278 and raised full-year fiscal 2027 revenue estimates to $6.09 billion, applying a higher multiple justified by a reset growth trajectory. The bank moved fiscal 2028 and 2029 numbers proportionally upward, treating the quarter not as a one-time beat but as evidence that the growth curve has genuinely shifted.
Forty-five analysts carry buy or strong buy ratings on the stock. Zero carry sells. The consensus price target sits around $229. Given where Snowflake was trading before the quarter landed, that wall of conviction reflects a genuine reassessment of what this business can become rather than momentum-chasing after a good session.
Two Announcements That Extended the Story
Strong quarterly numbers alone would have moved the stock. What made the session more significant were two strategic developments sitting alongside the results that pushed the investment thesis into new territory.
The Metrics Underneath the Headline
Net revenue retention came in at 126%, meaning the existing customer base collectively spent meaningfully more over the past twelve months than the twelve before it. New customer additions reached 616 for the quarter, up 38% year over year and the highest single-quarter total in company history.
Among accounts generating more than $1 million in trailing product revenue, the count grew to 779, up 29% annually. Forty-six customers crossed that threshold during the quarter alone, against 26 in the same period a year earlier. Growth at both ends of the customer spectrum arriving simultaneously describes a business pulling in multiple directions at once, and all of them upward.
Where the Risk Conversation Has to Go
One strong quarter changes a narrative. It does not relieve the concerns that built during the preceding decline. Snowflake fell from a peak above $257 in late 2025 to a low near $144 in April 2026, reflecting real anxieties about growth sustainability, persistent losses on a GAAP basis, and the inherent unpredictability of a consumption-based revenue model where customers pay for what they use rather than committing to fixed contracts.
Those concerns have been answered with evidence, not just reassurance. But the premium the stock now carries leaves a thin margin for anything short of continued execution.
The bar for the second quarter is now set at product revenue between $1.415 billion and $1.42 billion, and a company that just beat expectations by $69 million does not get the benefit of the doubt if it comes up short next time.
The quarter earned the confidence now surrounding the stock. What comes next determines whether that confidence was warranted or simply premature.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Snowflake stock gains 16% in a year as AI products and customer growth accelerated, but margin pressure, competition and a premium valuation cloud the outlook.
Snowflake Cortex Agents support in Boomi Agentstudio enables joint customers to govern all their agents in a single, vendor-agnostic control tower
CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Boomi, the data activation company for AI and an Elite Snowflake partner, today announced the launch of Snowflake Cortex Agents support for Agentstudio. This new integration, powered by Snowflake, enables organizations to monitor, manage, and govern every Cortex Agent that is part of their agentic workforce.
"Customers are scaling AI agents into production, and partners are bringing new solutions to market at record speed, both powered by Boomi Agentstudio,” said Steve Lucas, Chairman and CEO at Boomi. “This dual momentum reflects the unique strength of the Boomi Enterprise Platform, empowering innovation while ensuring governance, trust, and enterprise-grade scale. Together with our customers and partners, we’re building the future of agentic transformation.”
By leveraging the Snowflake AI Data Cloud, Boomi is joining Snowflake to help organizations take the next step in agentic transformation. By fueling Cortex Agents with real-time ELT pipelines and managing them through Agentstudio’s Agent Control Tower, organizations can transform scattered agents into a governed, high-performing agentic workforce. Instead of chat assistants operating in isolation, organizations gain orchestrated workflows built on Cortex that activate business outcomes at scale.
“Boomi’s commitment to helping Snowflake’s customers innovate faster and get more value from data is clear through its support for Cortex Agents in Agentstudio,” says Remy Thellier, Head of AI/ML Partners at Snowflake. “We look forward to delivering deeper value within the AI Data Cloud through our collaboration with Boomi — enabling enterprise-ready agentic workflows through Snowflake’s fully-managed, unified platform.”
By providing Snowflake Cortex Agent support for Agentstudio, Boomi enables joint customers to unlock business insights, process automation, and further innovation.
Industry leading applications are powered by Snowflake. By building tools, applications and solutions on Snowflake, product and engineering teams are able to develop, scale, and operate without operational burden, delivering differentiated products to their customers. Snowflake AI Data Cloud Product Partners help customers maximize Snowflake’s flexibility, performance, and ease of use to deliver more meaningful insights. AI Data Cloud Services Partners provide industry experience, technical expertise, and strategic best practices to help customers mitigate risk and drive business value with Snowflake throughout their entire data and AI journey. To learn more about becoming an AI Data Cloud partner, click here.
About Boomi
Boomi, the data activation company for AI, powers the agentic enterprise by bringing data to life across the business. The Boomi Enterprise Platform is the active data foundation that delivers essential agentic infrastructure to drive agentic transformation. By unifying agent design and governance, API and MCP management, integration and automation, and data management into a single platform, Boomi enables organizations to harness the power of AI with secure, scalable connectivity. Trusted by over 30,000 customers and supported by a network of 800+ partners, Boomi helps organizations of all sizes achieve agility, efficiency, and innovation at scale. Discover more at boomi.com.
REDWOOD CITY, Calif.--(BUSINESS WIRE)--ExecAtlas, powered by Equilar, today announced at Snowflake's annual user conference, Snowflake Summit 26, that it is a founding member of the Financial Services Working Group under Open Semantic Interchange (OSI). This open source initiative establishes a universal specification for all financial services organizations to standardize their fragmented data definitions with an open, industry-neutral semantic model specification. By standardizing foundationa.
Key Takeaways Snowflake posted fiscal Q1 2027 revenues of $1.39B, up 33%, with product revenue rising 34%. Snowflake Intelligence and CoCo saw rapid adoption, with CoCo used by more than 7,100 accounts. SNOW expects fiscal Q2 2027 product revenues of $1.415B-$1.420B, implying 30% growth. Snowflake (SNOW - Free Report) is benefiting from the rapid expansion of its AI portfolio, which is fueling significant revenue growth and positioning the company for further upside. In the first quarter of fiscal 2027, revenues were $1.39 billion, up 33% year over year. Product revenues reached $1.334 billion, marking a 34% year-over-year increase.
A key driver of this momentum is the introduction and rapid adoption of Snowflake Intelligence and Cortex Code (CoCo). In the fiscal first quarter, Snowflake delivered more than 20% more product capabilities than last year. This includes new features in CoCo and Snowflake Intelligence. These products are seeing the fastest uptake in Snowflake’s history, with CoCo already in use by more than 7,100 accounts and Snowflake Intelligence more than doubling quarter over quarter.
SNOW’s expanding portfolio has been noteworthy. The company recently unveiled a new open framework designed to make enterprise data and AI systems more interoperable. Announced at Snowflake Summit 2026, the framework enables organizations to access, govern, share and use data across platforms without duplicating or moving it.
Key additions include support for Apache Iceberg v3, Snowflake Storage for Apache Iceberg Tables and Horizon Catalog powered by Apache Polaris, providing centralized governance and cross-platform compatibility. The company says the framework helps businesses build AI applications on a single, trusted data foundation while reducing vendor lock-in. Customers such as Affirm, Indeed, NTT DOCOMO and Samsung Ads are already leveraging these capabilities.
Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth.
SNOW Suffers From Stiff CompetitionSnowflake is facing stiff competition from major players such as Alphabet (GOOGL - Free Report) and Oracle (ORCL - Free Report) . Both Alphabet and Oracle are expanding their footprint in the AI space.
In April 2026, Alphabet announced that Anthropic had expanded its collaboration with Google Cloud by deepening its use of Google’s custom Tensor Processing Units (TPUs) to train and deploy advanced AI models. The move highlights growing demand for specialized AI infrastructure, with Google positioning its TPUs as a key alternative to GPUs for large-scale model development and inference workloads.
Oracle’s expanding AI portfolio has been noteworthy. In April 2026, Oracle expanded AI capabilities in Oracle AI Database@Google Cloud, introducing Gemini-powered agents for natural language data access, enhancing enterprise insights, productivity and multicloud data innovation.
SNOW’s Share Price Performance, Valuation, and EstimatesSnowflake shares have gained 9.4% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s increase of 15.9%. However, it has underperformed the Internet Software industry which has declined 12.5% in the same time frame.
SNOW Stock Performance
Image Source: Zacks Investment Research
Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 12.6X compared with the Internet Software industry’s 3.71X. SNOW has a Value score of F.
SNOW Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.93 per share, which has increased 6.62% over the past 30 days. The figure indicates a 54.4% year-over-year increase.
Snowflake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Federal Realty Investment Trust (FRT) Q1 2026 Earnings Call Highlights: Strong FFO Growth and Record Leasing Activity Federal Realty Investment Trust (FRT) reports a 10.6% increase in FFO per share and raises guidance amid robust leasing and capital recycling efforts. Summary
FFO per Share: $1.88, a 10.6% increase from the previous year.Lease Termination Fees: Increased by $2.8 million compared to the previous year.Capital Recycling Proceeds: $159 million from sales at a combined cap rate below 5%.Portfolio Leased Rate: 96.1% leased, 93.8% occupied.Leasing Volume: Over 100 leases and 649,000 square feet at 13% cash rollover.Comparable POI Growth: 4.7% for the quarter.Cash Basis Comparable Growth: 5.1% for the quarter.Cash Basis Minimum Rent Increase: 3.6% for the quarter.Revolving Credit Facility: Increased to $1.4 billion, extended to April 2030.Net Debt to EBITDA: 5.5x, expected to improve over the year.Fixed Charge Coverage: 3.9x, expected to exceed 4x in 2026.Guidance for Core FFO: Raised to $7.46 to $7.55 per share.Expected Incremental POI for Redevelopment: $14 million to $15 million.Expected Term Fees: $8 million to $9 million.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Federal Realty Investment Trust FRT reported a strong FFO per share of $1.88, reflecting a 10.6% increase from the previous year.The company achieved record leasing activity with over 100 leases and 649,000 square feet of comparable deals done in the quarter.FRT's overall portfolio is 96.1% leased and 93.8% occupied, indicating strong demand for its properties.The company successfully executed capital recycling, closing sales of $159 million at a cap rate well inside 5% and acquiring new properties with a 7% stabilized yield.FRT raised its guidance for the year, reflecting confidence in continued operational strength and growth prospects. Negative Points Higher snow removal and related energy expenses due to an unusually rough winter impacted costs by over $2 million.The company faces refinancing headwinds, with a 175 basis point increase in interest rates affecting its financial outlook.Occupancy is expected to remain in the mid- to upper 93% range for most of the year, which may limit immediate growth potential.The company is cautious about starting new ground-up office developments without pre-leasing commitments, reflecting market uncertainties.FRT's asset recycling strategy is dependent on finding suitable acquisition opportunities, which may not always align with market conditions. Q & A Highlights Q: How does the K-shaped economy impact Federal Realty's strategy and performance compared to peers?
A: Donald Wood, CEO, explained that Federal Realty's focus on high-quality real estate in affluent areas provides a cushion against economic changes. The company's properties are located in areas with high purchasing power, which supports strong performance even in a K-shaped economy where consumer spending is more selective.
Q: What is the current status and future outlook of Federal Realty's capital recycling program?
A: Donald Wood, CEO, emphasized that capital recycling is a continuous process aimed at reinvesting in opportunities that offer higher returns. Daniel Guglielmone, CFO, added that acquisitions and redevelopment contributed significantly to FFO growth, and the company expects this trend to continue.
Q: Can you provide an update on the multifamily disposition pipeline and expected cap rates?
A: Donald Wood, CEO, stated that while there are no specific residential properties on the market currently, the company is considering monetizing assets through joint ventures. The decision to sell will depend on acquisition opportunities, aiming to shelter tax gains through 1031 exchanges.
Q: What is the outlook for same-store NOI growth and occupancy rates?
A: Daniel Guglielmone, CFO, indicated that occupancy is expected to remain stable in the mid-93% range before increasing in the fourth quarter. Comparable growth will dip in the second and third quarters but is expected to rise in the fourth quarter, driven by leases with rent commencement dates.
Q: Are there plans for new ground-up office developments at Santana Row or other locations?
A: Donald Wood, CEO, mentioned that new office developments at Santana Row would only occur with a build-to-suit arrangement, not on a speculative basis. The current focus is on maintaining high occupancy and leveraging existing assets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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].
Wall Street is focused on the geopolitical conflict unfolding in the Middle East and its impact on energy prices. Before that, there was the war in Ukraine. In the future, there will be some other newsworthy event, perhaps the bursting of what some believe is an artificial intelligence bubble, that will unnerve investors and lead to stock market volatility.
The big picture is that the market is volatile and it always will be. If you are an investor, one way to deal with market uncertainty is to focus on reliable dividend-paying stocks. Three to consider today are Enterprise Products Partners (EPD 0.08%), Federal Realty (FRT +0.82%), and International Business Machines (IBM 1.13%).
Image source: Getty Images.
Enterprise avoids commodity risk Master limited partnership (MLP) Enterprise Products Partners operates one of the largest midstream businesses in North America. It generates reliable cash flows by charging customers fees for the use of its energy infrastructure assets. The volume of oil and natural gas moving through its system is more important to the MLP's results than the prices of the products it moves. Energy is vital to the modern world, so volumes tend to remain robust even during energy industry downturns.
Enterprise has a lofty 5.7% distribution yield. The distribution has been increased annually for 27 consecutive years, which is basically as long as the MLP has been publicly traded. The MLP's yield will likely make up the lion's share of your return over time, but this resilient energy business is a way to add energy exposure to your portfolio without the commodity risk that is so prevalent in the energy sector today.
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Federal Realty is a Dividend King landlord Federal Realty is a real estate investment trust (REIT) that owns strip malls and mixed-use assets. It only owns around 100 properties, so it is kind of small. And yet it has done something that no other REIT has: Federal Realty's dividend has been increased annually for 58 consecutive years. That's the longest streak in the REIT sector, which has enabled the REIT to become a Dividend King. Federal Realty is the only Dividend King REIT. The dividend yield is well above the market at 4%.
Federal Realty's success is attributable to two factors. First, it focuses on quality over quantity. Its properties have higher average incomes and population densities around them than its peers, which means it owns properties in which retailers want to be located. Second, Federal Realty is an active portfolio manager, always buying, selling, and investing to upgrade its portfolio. In this way, it ensures that its portfolio of properties remains industry-leading. The proof of the REIT's success is its incredible dividend streak.
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Buying a few boring, reliable dividend stocks is a great way to deal with market uncertainty. Federal Realty is the epitome of boring and reliable.
International Business Machines knows how to adjust Technology giant IBM has increased its dividend for decades. The dividend yield is 2.9%, which is well above the technology sector average of 0.4%. But the real attraction with IBM is its history of changing along with the needs of its business customers.
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Today, IBM is focused on cloud computing, artificial intelligence, and quantum computing. These are all hot technology trends right now. It started life over 100 years ago, producing items such as scales. This is not some start-up; it is an industry survivor. That's important because IBM's business customers know that they can count on the company to support their most important technology processes and functions across the business cycle and through technology cycles. Long-term dividend investors can comfortably own it for the same reasons.
Dividends make it easier to live with volatility Risk is just part of the investment equation. While you will never be able to avoid volatility, you can adjust your investment approach to make that volatility easier to deal with. A good option is dividend stocks that have proven they can pay you well despite the market's inherent risk. At the end of the day, focusing on the dividends you are collecting from reliable payers like Enterprise, Federal Realty, and IBM lets you avoid focusing on the inevitable ups and downs of the market.
Federal Realty Investment Trust (FRT - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Federal Realty Investment Trust basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Federal Realty Investment Trust imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Federal Realty Investment TrustThis real estate investment trust is expected to earn $7.48 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Federal Realty Investment Trust. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Federal Realty Investment Trust to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
, /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today announced it will webcast its 2026 Investor Day Presentation on Thursday, May 21st, 2026. The presentation, scheduled to begin at 1:25 PM ET, will be followed by a live Q&A session with members of Federal Realty's executive management team. In addition, written materials and other resources made available by Federal Realty both before and during the Investor Day Presentation will be shared on the webcast site throughout the day.
When: 1:25 PM ET, Thursday, May 21, 2026
Federal Realty | Investor Day '26 Live Webcast: Federal Realty Investor Day 2026 or ir.federalrealty.com
Webcast Archive: Webcast and supporting materials will be available for 30 days following the event on the Investor Day site and on the company's Investor Relations website under Webcasts and Events
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions that we believe have strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose, and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 104 properties include approximately 3,800 tenants in 29.0 million commercial square feet, and approximately 2,500 residential units.
Federal Realty has increased its quarterly dividend to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Despite the S&P 500 index (^GSPC +0.50%) trading near record highs, you can still find good investment ideas in the financial sector. For those who like growth stocks, particularly dividend growth stocks, Visa (V +0.93%) could be a good choice. For yield-seeking investors, Dividend King Federal Realty (FRT +0.82%) should be strongly considered.
But dividend lovers shouldn't get so enamored of AGNC Investment's (AGNC +0.10%) 13%+ dividend that they overlook this crucial fact about the company. It is well run, but it may not be the investment you expect based on that lofty yield.
Image source: Getty Images.
Visa's valuation looks reasonable Payment processor Visa has a long history of growth. Its business has expanded alongside the shift from cash to card payments. To put a number on that, in 2015 the company handled 71 billion transactions, up 9% year over year. In 2025, it handled 257.5 billion transactions, up 10% in a year. Visa's growth is not slowing down, which helps explain why it is normally afforded a premium in the market.
However, the company's price-to-sales and price-to-earnings ratios are both below their five-year averages right now. That hints that the stock is reasonably priced, if not a little cheap. The yield is fairly low at 0.8%, but the dividend has grown at an annualized rate of 17% over the past decade. If you are a growth investor or a dividend growth investor, you'll probably want to dig into Visa's story.
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Federal Realty is the "King" of REITs Federal Realty is an income stock, noting its attractive 3.9% dividend yield. That said, the real draw with this strip mall and mixed-use property landlord is consistency. Federal Realty is the only real estate investment trust (REIT) that is also a Dividend King, having increased its dividend annually for over five decades.
The REIT is focused on quality over quantity, with a portfolio of only around 100 properties. It takes a very active management approach, frequently buying, selling, and redeveloping assets. The end result is a portfolio with higher average population densities and higher average incomes than any of Federal Realty's closest peers.
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Federal Realty isn't an exciting business. It tends to be a slow-and-steady grower. But if you are looking for a reliable dividend stock, this REIT is hard to beat.
AGNC Investment isn't a dividend stock That said, don't get so enamored of dividends that you overlook key dividend risks. For example, AGNC Investment has a huge 13%+ dividend yield, but it isn't a particularly reliable dividend stock. As the chart below shows, the dividend has not only been volatile over time but has also been declining for more than a decade. The stock price has tracked the dividend both up and down.
AGNC data by YCharts
What's interesting is that AGNC Investment is not a bad investment or a troubled company. It is a fairly well-respected mortgage REIT. The dividend and price volatility are pretty normal for a mortgage REIT. And, if you reinvested the dividends over time, your total return would be roughly similar to that of the S&P 500 index. That's a pretty impressive total return story, even if the stock is a less-than-desirable dividend story. AGNC Investment could be attractive to investors looking to diversify their portfolios.
Three finance options; two are reliable dividend stocks Visa is a solid dividend growth stock that is still growing its business. Federal Realty is a slow-and-steady, high-yield stock with a proven business model. And AGNC Investment has a huge yield, but investors need to tread with caution because it's really a total return investment. In the end, that's three potential finance options. Just tread carefully with AGNC Investment, since it may not be what it seems at first glance.
Federal Realty Investment Trust is upgraded to a strong buy, outperforming peers and the S&P 500 with robust fundamentals. FRT demonstrates strong leasing momentum, 5-year revenue and EBITDA margin growth, and a proven dividend growth record with ample coverage. Balance sheet risk is attractive, supported by investment-grade credit ratings and low tenant concentration, though valuation is somewhat rich with only modest upside.
Federal Realty Investment Trust offers a rare blend of quality, dividend growth, and attractive valuation among REITs. FRT's Q1 2026 results showed 10.3% revenue growth, 10.6% core FFO per share growth, and robust leasing spreads, validating its Class A property strategy. Trading at a 16% discount to fair value with a 3.9% yield, FRT is positioned for 4.5% annual FFO growth and continued dividend increases.
Key Takeaways FRT gained 12.3% in three months as investors warmed to its earnings outlook and leasing momentum.Federal Realty posted Q1 2026 Nareit FFO of $1.88, up 10.6%, and signed a record 101 comparable leases.FRT ended the quarter 93.8% occupied, 96.1% leased, while recycling capital into centers in MD and VA. Federal Realty Investment Trust (FRT - Free Report) stock has gained 12.3% over the past three months, outperforming its industry’s 3.2% increase, drawing fresh attention from investors looking at retail REITs. The move reflects improving confidence in the company’s earnings outlook, leasing momentum and capital recycling strategy.
After a long period in which higher interest rates weighed on REIT valuations, FRT’s recent performance suggests that investors are again focusing on its steady operating growth and high-quality property base.
Federal Realty owns and operates open-air shopping centers and mixed-use retail properties in strong coastal and select high-income markets. Its portfolio includes well-known assets such as Santana Row, Pike & Rose and Assembly Row. The broader retail real estate industry has been helped by limited new supply, resilient demand for well-located shopping centers and stronger tenant interest in properties that serve affluent customers.
Image Source: Zacks Investment Research
Factors Behind FRT Stock Price Rise: Will This Trend Continue?One major reason behind the stock’s rise is Federal Realty’s strong first-quarter 2026 performance. The company reported Nareit FFO of $1.88 per share, up 10.6% from the prior-year quarter. That is a healthy increase for a mature REIT and shows that rent growth, occupancy and redevelopment contributions are beginning to show up in results.
Leasing activity was a bright spot. Federal Realty signed 101 comparable retail leases covering 649,078 square feet, a first-quarter record for the company. These leases came with rent growth of 13% on a cash basis and 23% on a straight-line basis. Strong leasing spreads matter because they point to pricing power, especially in a retail market where high-quality space remains limited.
The company’s portfolio also remains well occupied. Overall occupancy was 93.8%, while the leased rate stood at 96.1% at the end of the quarter. This spread between leased and occupied space suggests that already-signed leases could still add rent as tenants open. Management also pointed to an active pipeline and expected rent contribution from signed but not yet occupied space, which could support results into 2027.
Another factor helping sentiment is Federal Realty’s capital recycling plan. The company sold mature assets, including residential and retail properties, and used capital to buy assets such as Congressional North Shopping Center in Montgomery County, MD, and an additional retail parcel at Kingstowne Towne Center in Alexandria, VA. This strategy can improve growth if the company sells lower-yielding assets and reinvests in properties with better long-term return potential.
Still, the rally may not move in a straight line from here. REITs remain sensitive to interest rates, refinancing costs and investor appetite for income stocks. Federal Realty also faces usual retail real estate risks, including tenant bankruptcies, operating cost pressure and possible delays in redevelopment projects. The company’s own guidance points to growth, but not without headwinds from financing costs.
View on FRT StockFederal Realty’s recent stock rise looks backed by real operating progress, including higher FFO, strong leasing spreads and better guidance. Its focus on affluent markets and mixed-use assets gives it a solid position in the retail REIT space. However, after a 12.3% three-month gain, some of the good news may already be reflected in the share price. For now, the outlook appears balanced: the business trend is positive, but investors may want to watch valuation, rates and execution before expecting the rally to continue at the same pace.
Currently, FRT carries a Zacks Rank #3 (Hold).
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Curbline Properties Corp. (CURB - Free Report) and Philips Edison & Company (PECO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CURB’s 2026 FFO per share is pinned at $1.21. This indicates year-over-year growth of 14.15%.
The Zacks Consensus Estimate for PECO’s 2026 FFO per share is pegged at $2.76. This implies year-over-year growth of 6.15%.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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, /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) will announce its second quarter 2026 earnings results before market open on Friday, July 31, 2026. The Company will host a conference call on Friday, July 31 at 9:00 AM ET.
Event: Federal Realty Investment Trust's Second Quarter 2026 Earnings Conference Call
When: 9:00 AM ET, Friday, July 31, 2026
Live Webcast: FRT Second Quarter 2026 Earnings Conference Call or www.federalrealty.com
Dial #: 1-833-821-4548 or 1-412-652-1258
A replay of the webcast will be available 30 minutes after the conclusion of the call on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through August 14, 2026 by dialing 1-844-512-2921 or 1-412-317-6671; Passcode: 10209822
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions that we believe have strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose, and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 104 properties include approximately 3,800 tenants in 29.0 million commercial square feet, and approximately 2,500 residential units.
Federal Realty has increased its quarterly dividend to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
AUSTIN, Texas--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE American: HYLN), a developer of modular power plant technology, today announced it will host a conference call and accompanying webcast at 10:00 a.m. CT / 11:00 a.m. ET on Wednesday, May 13, 2026 to discuss its financial results, the company's business, and outlook. Hyliion plans to report its Q1 2026 financial results after the market close on Tuesday, May 12, 2026.
Hyliion’s Q1 2026 Conference Call
Date: Wednesday, May 13, 2026
Time: 10:00 a.m. CT / 11:00 a.m. ET
Conference Call Online Registration for the Q&A:
https://events.q4inc.com/analyst/954135636?pwd=U3P78Fhs
Access the Webcast:
https://events.q4inc.com/attendee/954135636
An archived webcast of the conference call will be accessible on the Investor Relations section of the Hyliion website.
About Hyliion
Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide modular power plant technology that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable KARNO™ Power Module that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.
AUSTIN, Texas--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE American: HYLN), a developer of modular power plant technology, today announced the successful demonstration of an uninterrupted multi-fuel transition in its next-generation KARNO™ reactor design, capable of handling liquid and gaseous fuels seamlessly. Operating without any hardware changes, the system transitioned through natural gas, hydrogen, diesel, and back to natural gas in a continuous sequence.
The demonstration validates Hyliion’s integrated reactor architecture, in which gaseous and liquid fuel pathways are unified within one system rather than across specialized hardware configurations. Earlier KARNO milestones validated each fuel category on reactor designs optimized for that fuel type. This unified design, which adds to Hyliion’s extensive intellectual property portfolio, is the platform through which the Company is realizing its long-standing vision of true fuel-agnostic capability.
The demonstration, performed in Hyliion’s lab using an optical reactor configuration, enables direct visual observation of fuel behavior and provides engineering teams with real-time insight into reaction characteristics across fuel types. This capability supports continued refinement of the controls software that automatically detects fuel composition and adjusts operating parameters during transitions.
“True fuel agnostic capability is not a feature added to a Power Module. It has to be designed into the product architecture from the foundation,” said Thomas Healy, Founder and CEO of Hyliion. “When we acquired the KARNO technology, the long-term plan has always been to achieve a single architecture capable of operating across the full fuel spectrum. This demonstration confirms we are on the right path.”
The transition sequence executed during the demonstration covered fundamentally different oxidation regimes within a single reactor:
Natural gas: the most widely available pipeline fuel and the baseline for distributed power applications Hydrogen: operated as a discrete fuel rather than as a blend Diesel: a liquid hydrocarbon, validating the integrated reactor’s ability to operate across phase boundaries Return to natural gas: confirming the architecture supports bidirectional transitions without recalibration Stable operation during fuel transition across this sequence on the same hardware demonstrates that the controls system, internal architecture, and thermal management approach work consistently across fuel categories that conventional generators handle through separate product lines or hardware variants.
The implications across Hyliion’s priority markets are substantial. For data centers, a single KARNO Power Module can operate on pipeline natural gas under normal conditions and transition to alternative fuels during gas curtailments or supply disruptions, eliminating the need for separate backup generator systems.
In the case of defense applications, fuel flexibility translates directly to mission resilience. A fuel-agnostic generator reduces the need for fuel-specific variants in forward-deployed environments and can operate on whatever fuel the supply chain delivers.
“Unifying liquid and gaseous fuel pathways in a single reactor is an engineering problem we have been working on to truly unlock Stirling engine benefits,” said Josh Mook, Chief Technology Officer of Hyliion. “This demonstration confirms the architecture is sound, and that the KARNO technology can deliver flexible, on-site, on-demand power using various fuels the customer may choose.”
About Hyliion
Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide modular power plant technology that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable KARNO Power Module that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine vessels. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.
Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.
Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage Company with a history of losses; our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business, and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2026 for the year ended December 31, 2025. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.
