Cloud technology giant ServiceNow has notified some of its enterprise customers that a software bug on its platform was allowing anyone on the internet to access their data.
A knowledge base article, which ServiceNow has hidden behind a login wall but has been shared on Reddit, says the company on June 5 patched some customer instances to fix a bug that had allowed unauthenticated users to “gain greater access” to ServiceNow-hosted data than intended.
The bug allowed potentially anyone to access data stored in customer instances without requiring credentials, such as a password.
ServiceNow tells TechCrunch that the security incident was not a hack, but the work of security researchers who were looking for vulnerabilities that they could submit for a bug bounty program.
“Alongside our own investigation, we have been in contact with the security researchers who initially reported this issue and can confirm that evidence of the observed activity came from those security researchers and customer research teams, not bad actors,” said ServiceNow spokesperson Courtney Johnson. “The security researchers have advised their activity was solely for bug bounty submissions and no data was used or retained.”
When asked by TechCrunch, ServiceNow did not immediately name the security researchers, nor say how many ServiceNow customers’ data was accessed.
Given that the security incident appears to stem from a data-exposing bug, it’s unclear if customers could have protected themselves from improper access prior to the incident.
ServiceNow is a cloud computing giant that allows thousands of its enterprise customers to automate their internal business processes. Companies use the tech giant’s platform to build workflows that connect to various apps and databases, such as IT and HR systems, which can be used to automatically handle repeat tasks, like onboarding staff, resolving tech support tickets, and for chatbots.
As such, companies like ServiceNow can be high-value targets for hackers thanks to the amount of sensitive data that they store, such as customer support tickets, which can include passwords, keys, and credentials.
ServiceNow said the issue relates to customer instances running its Australia releases, but several people on Reddit say they have identified evidence of external access to ServiceNow instances running other versions of its software.
Network defenders shared an IP address, 51.159.98.241, said to be an indicator of potential data access if found in a customer’s logs.
Corrected the seventh paragraph to update references to the Australia releases, unrelated to geography. Updated to include comment from ServiceNow.
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Zack Whittaker is the security editor at TechCrunch. He also authors the weekly cybersecurity newsletter, this week in security.
He can be reached via encrypted message at zackwhittaker.1337 on Signal. You can also contact him by email, or to verify outreach, at [email protected].
Investors are still nervous about the software-as-a-service (SaaS) sector and the impact artificial intelligence (AI) will have on it. However, these beaten-down stocks could be the most underrated AI plays in the second half of this year and beyond.
Agentic AI is just starting to take off, and there is a large opportunity for software companies to begin playing a major role in this trend. Let's look at two of the best-positioned SaaS stocks for this right now.
ServiceNow While Nvidia is the backbone of AI infrastructure, ServiceNow (NOW 0.71%) serves as the central nervous system of organizations' IT infrastructure. It monitors its customers' complete software stacks and is deeply integrated with their data and workflows. It's an ingrained, essential system that is highly unlikely to be disrupted by AI and more likely to serve as an integral part of the AI evolution that organizations are starting to embark on.
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The company has seen solid growth from AI, with AI commitments now expected to hit $1.5 billion this year, a 50% increase from its prior guidance, showing the rapid adoption of its AI offerings. Its move to a hybrid pricing model has been paying early dividends, with 50% of its new business now coming from non-seat-based pricing, including from tokens and connectors.
ServiceNow also has a huge opportunity with its AI Control Tower, its new agentic AI orchestration platform. AI agents just can't be unleashed into a company's ecosystem without strict guardrails, governance, and constant monitoring, and it has a system that can provide that. With agentic AI still in the very early innings, the company looks like it has the ingredients to be a big winner on the software side.
Image source: Getty Images.
Salesforce Another SaaS company well positioned for agentic AI is Salesforce (CRM 0.23%). The company has made some smart under-the-radar moves to turn its platform into an ideal environment to launch AI agents. This includes its Data 360 product, which uses zero-copy technology to grab data from data warehouses, like Snowflake, and cloud computing providers without the expense or cost of transferring it. Its acquisition of Informatica, meanwhile, gave it the technology to clean, organize, and govern this data. Combined, this makes its platform an important master of records for AI agents.
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Salesforce has been seeing solid growth from its Agentforce offering, but its overall size is still so small that it's not yet meaningfully moving the needle. However, with agentic AI starting to take off, that should eventually change, and it should become a significant driver down the road.
Geoffrey Seiler has positions in Salesforce and ServiceNow. The Motley Fool has positions in and recommends Nvidia, Salesforce, ServiceNow, and Snowflake. The Motley Fool has a disclosure policy.
SAN DIEGO--(BUSINESS WIRE)--Ondaro, a ServiceNow Elite Partner, today announced Ondaro Lighthouse, an AI-enabled activation plan that closes the AI visibility gap and tells enterprises where to start with ServiceNow’s AI Control Tower and what to turn on first.
Leadership teams across every industry are under pressure to scale AI with confidence. AI Control Tower provides the critical foundation, but the right path depends on what matters most to each organization
Share The launch comes as ServiceNow has made AI Control Tower (AICT) the new normal, embedding AICT capabilities in every AI Native SKU (Foundation, Advanced, and Prime) as of April 2026. New and migrating ServiceNow customers also receive expanded AI Control Tower capabilities at no incremental charge for their first year, including governance for Microsoft Agent 365 and NVIDIA environments and integrations with Veza and Armis.
That free year of AICT is a meaningful runway, but it is also a clock. Enterprises adopting AICT today are in four very different starting positions, and the path to value looks different for each. Without a tailored plan, the runway can pass without measurable progress. Gartner projects that 40 percent of agentic AI projects will fail by the end of 2027, with most failures attributed to governance gaps rather than gaps in capability.
“Leadership teams across every industry are under pressure to scale AI with confidence. AI Control Tower provides the critical foundation, but the right path depends on what matters most to each organization: visibility, compliance, value realization, or agent safety. Lighthouse helps leaders identify that path, prioritize the foundational work, and connect AI investment directly to board-level outcomes,” said Jeff Gregory, CEO of Ondaro.
Lighthouse combines an AI-enabled discovery session with a one-page activation plan delivered within 24 hours. AI pre-populates the session with publicly available context (recent announcements, regulatory profile, current AI footprint) and the plan is refined through conversation with the customer. Each plan includes:
A starting profile: The customer’s mix across the four most common AI Control Tower adoption patterns (Shadow AI, regulator-driven, top-down strategy, agentic-first), with percentages that show where their work needs to land first. A three-stage activation plan: Specific AI Control Tower capabilities mapped to key stages: See It, Understand It, and Govern & Measure it, sequenced by the customer’s profile. Foundation work identified: The data, workflow, and ownership gaps that need to be addressed alongside the rollout, called out so they don’t get missed. Continuous value metrics: The ROI signals (AI assets registered, daily AI actions, top AI systems by value, hours saved, productivity vs prior period) that activate from stage 1 onward and make impact visible to leadership and the board. “ServiceNow’s AI Control Tower includes a broad set of governance, observability, lifecycle, and value-tracking capabilities, and different organizations need different starting points,” added Gregory. “A bank facing a regulatory deadline does not approach the platform the same way a technology company building autonomous agents across multiple platforms does. Without a tailored plan, customers may struggle to put the free year to productive use. Lighthouse is built to make sure that doesn’t happen.”
Enterprises can schedule their Lighthouse session and set their course at https://ondarowave.com/lighthouse-ai-control-tower.
About Ondaro
Ondaro is a ServiceNow Elite Partner that helps organizations realize value from their ServiceNow platform quickly and where it matters most, including putting AI to work with the governance needed to scale it. With deep expertise across IT, HR, customer service, risk, and asset management, Ondaro works with clients in financial services, healthcare, manufacturing, government, and other industries to simplify workflows and build the operational foundation for what comes next. Learn more at ondarowave.com.
Multi-year collaboration helps enterprises modernize legacy systems, unlock their data and apply AI across core business operations
ARMONK, N.Y. & SANTA CLARA, Calif.--(BUSINESS WIRE)--IBM (NYSE: IBM) and ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced an expanded collaboration to address two of the biggest barriers blocking enterprise AI at scale: the AI-ready data problem and the legacy application layer. The partnership combines IBM’s AI, data and automation capabilities with the ServiceNow AI Platform to help enterprises break through outdated systems and put their data to work for AI. IBM and ServiceNow will deliver joint solutions that modernize aging systems, extend ServiceNow Workflow Data Fabric with IBM’s enterprise data capabilities, and enable autonomous IT operations so the world’s largest enterprises can unlock the transformative value of agentic AI.
Decades of deeply interconnected legacy systems are the biggest barrier to moving fast on AI. IBM and ServiceNow are changing that by helping organizations evolve existing systems rather than replace them, run AI on any model they choose, and unlock the full depth of their enterprise data.
“Most enterprises have the ambition to deploy agentic AI, but lack the foundation to run it at scale,” said John Aisien, senior vice president and general manager, central product management, security & risk at ServiceNow. “IBM brings the tooling to modernize the systems and extend ServiceNow’s data capabilities. ServiceNow provides the platform to put that data to work across every workflow in the business. Together, we’re helping enterprises move from AI ambition to real, scalable outcomes.”
“AI adoption at scale requires more than access to models. It requires rethinking the systems, data and workflows that support them,” said Raj Datta, vice president of ISV and AI partnerships at IBM. “Together with ServiceNow, we’re building an open, flexible foundation for AI that can scale across operations and deliver real business value.”
The collaboration integrates IBM’s software solutions with the ServiceNow AI Platform and will create new solutions for customers across three key areas:
Application modernization: Scans and refactors legacy systems using tools like IBM Bob, Enterprise Application runtime (Java) and IBM watsonx.data so enterprises will be able to bring aging applications into the AI era without starting from scratch. Enterprise data governance: Extends ServiceNow Workflow Data Fabric with IBM watsonx.data to unlock key capabilities like Data Quality, Observability, Master Data Management – leveraging ServiceNow Data Catalog so that mutual customers can keep their data AI-ready. Autonomous infrastructure operations: Integrates Red Hat Ansible, IBM Bob, Instana, Hashicorp Terraform, and Hashicorp Vault into ServiceNow IT workflows to detect, remediate, and resolve issues before they affect the business. These joint solutions are expected to be available in the second half of 2026.
Statements regarding IBM's and ServiceNow’s future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
About ServiceNow
ServiceNow (NYSE: NOW) is the AI control tower for business reinvention. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise. By unifying legacy systems, departmental tools, cloud applications, and AI agents, ServiceNow provides a single pane of glass that connects intelligence to execution across every corner of business. With more than 100 billion workflows running on the platform each year, ServiceNow helps organizations turn fragmented operations into coordinated, autonomous workflows that deliver measurable results. Learn how ServiceNow puts AI to work for people at www.servicenow.com.
Forward-looking statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to ServiceNow and IBM’s expanded collaboration. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow’s results could differ materially from the results expressed or implied by the forward-looking statements made. ServiceNow undertakes no obligation, and does not intend, to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. Further information on factors that could affect ServiceNow’s financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time.
By Gerelyn Terzo Updated Jun 11, 1:46PM EDT · Published Jun 11, 9:50AM EDT
Chip stocks are bouncing 3% in premarket after last Friday's brutal 10% semiconductor ETF selloff, even as Trump's threat to strike Iran and $90 crude cap broader gains.
Intel surged 5% premarket on a Bank of America upgrade to Buy, while Oracle plans to raise $40 billion to accelerate its AI infrastructure buildout.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
Live Updates Yesterday
Oracle (NYSE:ORCL | ORCL Price Prediction) is taking a hard hit, shedding more than 11% after laying out plans to raise approximately $40 billion through a combination of debt and equity financing in fiscal year 2027, with no additional debt expected for the remainder of calendar year 2026. The market’s reaction reflects concern that the capital raise signals a level of spending ambition that could weigh on near-term returns even as Oracle’s long-term AI infrastructure thesis remains intact.
Yesterday
SpaceX (NASDAQ:SPCX) is set to begin trading on the Nasdaq Friday at 9:30 AM ET, with Oppenheimer wasting no time, initiating coverage at Outperform with a $190 price target ahead of the opening bell. For those looking to play the other side of the trade, Leverage Shares confirmed that a 2x Short SpaceX ETF will hit the market under the ticker SSPC, giving bearish investors a tool to express their view on what is shaping up to be the most anticipated public debut in market history.
Yesterday
Wholesale prices came in hotter than expected in May, with the producer price index (PPI) climbing 1.1% on the month against a 0.7% estimate, lifting the 12-month rate to 6.5%, the highest since November 2022 and up from April’s 5.7% reading. Nearly 80% of the monthly move traced back to a surge in energy costs, with gasoline prices jumping 23.4% at the wholesale level. The data lands one day after Wednesday’s hot CPI print, keeping the Federal Reserve firmly on hold heading into next week’s rate decision.
This article will be updated throughout the day, so check back often for more daily updates.
The markets are choosing optimism today, brushing aside a wave of uncertainty as investors focus on what’s working rather than what isn’t. Nasdaq 100 futures are pointing 0.6% higher in early trade, S&P 500 futures are up 0.3%, and Dow futures are adding 184 points. Chip stocks are doing the heavy lifting though rising oil prices and an escalating U.S.-Iran confrontation are keeping a lid on how far the optimism can run.
President Trump raised the geopolitical stakes overnight, posting on Truth Social that the U.S. will be striking Iran “VERY HARD TONIGHT” and signaling intentions to seize control of Kharg Island and other Iranian oil infrastructure. WTI crude futures were up nearly 1% to around $90 a barrel, putting energy markets back on high alert.
The chip sector is attempting to find its footing after a brutal stretch that included last Friday’s 10% collapse in the iShares Semiconductor ETF. Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), and Intel (NASDAQ:INTC) are all rebounding in premarket trade, with the semiconductor ETF gaining 3%. Intel is getting an added boost from a Bank of America upgrade to Buy from Underperform, sending shares up 5% before the open and injecting a fresh dose of conviction into a sector that badly needed it.
Here’s a look at where things stand as of pre-morning trading:
Dow Jones Industrial Average: 50,159 Up 0.49%
Nasdaq Composite: 25,250 Up 0.33%
S&P 500: 7,288 Up 0.27%
Market Movers Google (NASDAQ:GOOGL) is considering tapping Samsung to manufacture a key component of one of its most advanced future AI chips, according to The Information, a move that would hand the South Korean chipmaker a meaningful role in Google’s next-generation hardware ambitions.
Oracle (NYSE:ORCL) is planning to raise approximately $40 billion through a mix of debt and equity financing in fiscal year 2027, a capital raise that signals the enterprise software giant is gearing up for a significant acceleration in its AI infrastructure buildout as demand from hyperscale customers continues to outpace its current capacity.
ServiceNow (NYSE:NOW) and IBM (NYSE:IBM) announced an expanded multi-year collaboration aimed at tackling what the companies describe as the two biggest obstacles standing between enterprises and AI at scale: the AI-ready data problem and the legacy application layer. Joint solutions are expected to be available in H2 2026.
About the Author Gerelyn Terzo →
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
Key Takeaways ServiceNow increased its 2026 AI revenue target to $1.5B from $1B amid strong AI adoption.NOW saw deals with three or more Now Assist products grow nearly 70% year over year in Q1 2026.Now Assist adoption boosted demand for AI Control Tower and RaptorDB Pro, supporting AI revenue growth. ServiceNow's (NOW - Free Report) Now Assist is becoming one of the key drivers of its AI business on the back of strong customer adoption. ServiceNow continues to see strong demand for Now Assist, its generative AI product suite across its customer base, where the product continues to exceed the company's expectations.
The company had previously set a target of $1 billion in AI revenue contribution for 2026. In the first quarter of 2026, management raised the target to $1.5 billion. This reflects a 50% increase compared with the prior target. What's driving this surge is the stronger adoption of ServiceNow's AI products such as Now Assist, across its customer base, where customers are deploying AI faster and on a much larger scale.
Customer spending trends remained strong in the first quarter. Deals including three or more Now Assist products grew nearly 70% year over year in the first quarter, suggesting that customers are expanding AI usage across multiple workflows rather than testing a single AI feature. This bodes well for ServiceNow's prospects as customers are increasingly moving from AI pilots to full production deployments across their organizations and are now investing in AI across multiple business functions.
Now Assist is also helping ServiceNow grow other AI products. The company stated that adoption of Now Assist is driving demand for AI Control Tower and RaptorDB Pro. In the first quarter, AI Control Tower average deal sizes more than doubled sequentially, while RaptorDB Pro deal volume increased 80% year over year. The above-mentioned factors show how rising customer adoption and higher AI revenue expectations is positioning Now Assist to become an important driver of ServiceNow's AI growth strategy.
The Zacks Consensus Estimate for ServiceNow's 2026 and 2027 revenues indicates year-over-year growth of 21.9% and 18.1%, respectively.
ServiceNow Faces Stiff CompetitionServiceNow is facing stiff competition from the likes of Salesforce (CRM - Free Report) and Atlassian (TEAM - Free Report) .
Salesforce competes with ServiceNow through its offerings such as Agentforce, Data Cloud and Slack, through which it creates a unified ecosystem and connects customer data with integrated AI across systems, apps and devices. In the first quarter of fiscal 2027, Agentforce’s annual recurring revenues (ARR) surpassed $1 billion, up in triple digits year over year. Salesforce expects this momentum to continue in fiscal 2027, on the back of robust customer demand for its agentic offerings.
Atlassian competes with ServiceNow through its suite of cloud-based software solutions, such as Jira, Rovo and Teamwork Graph, which help organizations collaborate and manage their workforce. In the third quarter of fiscal 2026, Atlassian continued to add millions of monthly active users to Rovo, while strong customer engagement across Jira helped the company's cloud business grow 29% on a year-over-year basis.
NOW’s Share Price Performance, Valuation & EstimatesServiceNow shares have plunged 32.3% year to date compared with the Zacks Computers - IT Services industry’s decline of 21.8%.
NOW’s YTD Price Performance
Image Source: Zacks Investment Research
ServiceNow stock is overvalued, with a forward 12-month price/earnings (P/E) of 23.45X compared with the industry’s 17.57X. NOW has a Value Score of D.
NOW Forward 12 Months (P/E) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ServiceNow’s 2026 earnings is pegged at $4.14 per share, unchanged over the past 30 days. The figure indicates a 17.95% increase year over year.
Image Source: Zacks Investment Research
ServiceNow stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
After rallying from their lows this spring, software-as-a-service (SaaS) stocks once again have sold off in the latest tech pullback. With companies in the sector continuing to demonstrate that they are not getting disrupted by artificial intelligence (AI) and that it is likely more of a growth driver, now could be a good time to buy some top SaaS names on this dip.
Let's look at three SaaS stocks to consider buying right now.
1. Palantir Technologies After years of outperformance, Palantir Technologies (PLTR 2.36%) stock has struggled this year, losing a quarter of its value, and it has once again been caught in the tech downdraft.
Despite its stock performance, its operational performance has been nothing short of spectacular. Palantir's AI platform (AIP) has become like an AI operating system that makes AI more useful in real-world situations. The platform's strength lies in its ability to gather data from disparate sources and structure it into an ontology, linking it to physical assets and actual processes. This significantly reduces AI hallucinations and should become even more important as agentic AI emerges.
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Palantir has been seeing breakneck growth, with revenue accelerating for 11 straight quarters. Last quarter, its revenue surged 85%, once again led by U.S. commercial customer growth of 133%. The company is both rapidly adding new customers and seeing existing customers aggressively expand, with its net revenue retention up an incredible 150% over the past 12 months.
While the stock is still not cheap, the company has the potential to become one of the most important AI companies in the world.
2. Microsoft Not even Microsoft (MSFT +0.11%) has been spared from the SaaS sell-off this year, with its stock down more than 15% in 2026. Like Palantir, it has also been performing well operationally.
Growth has been led by its cloud computing unit, Azure, which saw revenue grow 40% last quarter. It was Azure's 11th straight quarter of 30% or more revenue growth. This strong growth should continue well into the future, with $627 billion in future cloud computing commitments in its backlog.
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Given how ingrained Microsoft's solutions are in enterprises, the risk of AI disruption looks small, and instead, it looks like the company will be a key AI facilitator. In fact, the company's enterprise software business is also performing well, with revenue from Microsoft 365 commercial revenue climbing 19% last quarter. The growth is being driven by increased adoption of Microsoft 365 Copilot, with paid users surging 250% to 20 million.
With its stock now trading at a forward price-to-earnings (P/E) ratio of under 21 based on fiscal 2027 analyst estimates (ending June 2027), it looks cheap given its growth and opportunities ahead. Microsoft also owns 27% of OpenAI.
Image source: Getty Images.
3. ServiceNow With its platform acting as the central nervous system on which IT departments run their entire software stacks, ServiceNow (NOW 0.90%) is not only very unlikely to be disrupted by AI, but also to be a big beneficiary. The company's configuration management database (CMDB) is deeply embedded in its customers' workflow and data and is an irreplaceable system of record. This makes it an ideal platform to launch an agentic AI orchestration platform, which the company recently introduced.
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ServiceNow has been seeing solid growth, with subscription revenue climbing 22% last quarter. Now Assist, its suite of AI solutions, has been seeing strong growth, with revenue up nearly 70% in Q1. However, it is the company's new agentic AI orchestration solution, AI Control Tower, that appears to have the most potential, given that AI agents are still in their early innings and organizations will need a platform to manage them.
Trading at a forward P/E of less than 22 times 2027 estimates, the stock is an attractive pick-up at these levels.
BFA Law is investigating whether Intuit committed securities fraud relating to its representations about TurboTax’s price positioning among DIY tax filers ahead of and during the 2026 tax season.
NEW YORK--(BUSINESS WIRE)--Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.
BFA Law is investigating whether Intuit committed securities fraud relating to its representations about TurboTax’s price positioning among DIY tax filers ahead of and during the 2026 tax season.
ShareIf you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action Investigation:
Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rightsWhy is Intuit Being Investigated for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”
In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit’s Stock Drop?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Jensen Huang has spent the last three years declaring various inflections, factories, and platforms, and the market has spent those same three years front-running every one of them. So when the NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CEO reportedly called Marvell Technology (NASDAQ:MRVL) the next trillion-dollar company, traders treated the comment as gospel.
Marvell shares have now shot up 84% in just the past month. This is an extraordinary move for a company that already carries a market capitalization of roughly $264 billion. The endorsement landed with extra force because NVIDIA had recently put real money behind it. NVIDIA invested $2 billion in Marvell, which turns a CEO compliment into something closer to an industrial alliance. It arrived against a backdrop of Marvell already running hot on its own merits, with bookings, guidance, and acquisitions pointing in the same direction.
The endorsement and the partnership behind it The verifiable substance behind Huang’s comment shows up in NVIDIA’s earnings disclosures, where management cited a “strategic partnership with Marvell via NVLink Fusion and collaboration on silicon photonics technology” as a growth initiative. NVLink Fusion lets third-party silicon plug into NVIDIA’s interconnect fabric, and Marvell is one of the few merchant suppliers credible enough to play in custom XPU work, optical interconnect, and the switching layer that ties hyperscale clusters together.
NVIDIA reported Q1 FY2027 revenue of $81.6 billion, with data center networking up 199% year over year to $14.8 billion. The networking line is where Marvell lives. If NVIDIA’s networking business is compounding at that rate, Huang’s compliment reads as an acknowledgement of dependency.
Marvell’s underlying numbers The fundamentals support the enthusiasm. Marvell’s Q1 FY2027 revenue came in at $2.418 billion, up 27.57% year over year, with non-GAAP EPS of $0.80. The data center segment, now 76% of total revenue at $1.83 billion, grew 11% sequentially. Management guided Q2 to $2.7 billion at the midpoint, implying roughly 35% year-over-year growth.
CEO Matt Murphy framed the setup directly in the 8-K filing, saying “We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028”.
The product list reads like a tour of AI infrastructure plumbing. 800G and 1.6T scale-out optics, 51.2T Ethernet switches, co-packaged optics, custom XPU and XPU-attach solutions all show up. Marvell also closed two tuck-in acquisitions earlier this year, Celestial AI on February 2, 2026 for photonic fabric and XConn Technologies on February 10, 2026 for chiplet connectivity, and raised $2 billion in Series A Convertible Preferred Stock on March 31, 2026.
The valuation is where the trillion-dollar talk gets harder to defend. Marvell trades at a trailing P/E of 98x and a forward P/E of 75x, with shares up 355% over the past year.
The infrastructure trade extends to HPE The same enterprise-AI thesis lifted Hewlett Packard Enterprise (NYSE:HPE) on the same morning. HPE shares climbed 92% in a month after a top and bottom line beat, with server revenue as the standout, and management raised full-year guidance while saying it is tracking two years ahead of its long-term financial plans.
The Juniper Networks acquisition explains most of that growth. Networking revenue hit $2.69 billion, up 148.2% year over year, while server revenue grew 32.7% to $5.45 billion. CEO Antonio Neri raised the FY2026 non-GAAP EPS outlook to $3.35 to $3.45, with free cash flow now expected to hit at least $3.5 billion, a target originally pinned to FY2028.
The other side of the AI trade The mirror image of the AI infrastructure rally played out in Intuit (NASDAQ:INTU). Goldman Sachs downgraded the stock to sell from neutral and cut its price target in half, citing mounting competition from AI-driven tax software. Shares fell 10%. Intuit’s actual results are fine. Q3 FY2026 revenue grew 10.37% to $8.56 billion with non-GAAP EPS of $12.80, and management raised full-year guidance.
But the company announced a 17% workforce reduction with $300 million to $340 million in restructuring charges, which confirms the bear case rather than refutes it. Marvell sells the picks and shovels for AI. Intuit sells software that AI might replace. The market is pricing that difference with unusual clarity.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Intuit, Inc. ("Intuit" or the "Company") (NASDAQ: INTU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Intuit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it "did not have the overall tax season we expected" and that it "faced pressure among the most price-sensitive DIY filers." Intuit said that "[w]e [lost] on price," and revealed that the Company needed to evolve its business model by delivering the right lineup and price points to meet simple filers' needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season."
On this news, Intuit's stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.
If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action Investigation:
Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rights
Why is Intuit Being Investigated for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”
In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit’s Stock Drop?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Intuit (INTU) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in Intuit and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.
Click here to participate in the action.
NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) --
What’s Happening?
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Intuit Inc. (“Intuit” or the “Company”) (NASDAQ:INTU) on behalf of Intuit stockholders. Our investigation concerns whether Intuit has violated the federal securities laws and/or engaged in other unlawful business practices. What are the Investigation Details?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it "did not have the overall tax season we expected" and that it "faced pressure among the most price-sensitive DIY filers." Intuit stated that "[w]e [lost] on price," and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers' needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season."This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026. What are my Next Steps?
If you purchased or otherwise acquired Intuit shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities,
derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.
NEW YORK, June 08, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.
If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action Investigation:
Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rights
Why is Intuit Being Investigated for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”
In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit’s Stock Drop?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Intuit upgraded to Strong Buy as operational performance and a fortress balance sheet contrast sharply with a 50% valuation discount. Q3 2026 revenue rose 10.4% to $8.56B, with Global Business Solutions and TurboTax Live driving growth; non-GAAP EPS beat consensus for the 19th time in 20 quarters. Forward 12-month P/E has compressed to 12 versus a 20-year average of 29.8, implying a 50% discount to fair value and a potential 101% total return by April 2027.
NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), is investigating claims on behalf of investors of Intuit Inc. (NasdaqGS: INTU) if they purchased or otherwise acquired the Company’s securities between December 2, 2025 to May 20, 2026. Such investors are advised to contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email ([email protected]), or visit us at https://www.ksfcounsel.com/cases/nasdaqgs-intu/ to learn more.
The investigation concerns whether Intuit and certain of its officers and/or directors have engaged in fraud, negligence or other unlawful business practices.
>>>Click Here to Learn More.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
BFA Law is investigating whether Intuit committed securities fraud relating to its representations about TurboTax's price positioning among DIY tax filers ahead of and during the 2026 tax season.
, /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ: INTU) for potential securities fraud after its significant stock drop.
If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action Investigation:
Investigation Overview: Securities fraud regarding the company's price positioning among DIY tax filers ahead of and during the 2026 tax season Stock Decline: May 20, 2026 – 20% Stock Drop Action: Contact BFA Law to discuss your rights Why is Intuit Being Investigated for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season "a couple of years ago" and that the company understood what worked in 2025, which was "being at the lowest price compared to alternatives." Intuit also stated that the 2026 tax season was "off to a strong start" as the company was poised to deliver the "best price for our customers."
In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit's Stock Drop?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it "did not have the overall tax season we expected" and that it "faced pressure among the most price-sensitive DIY filers." Intuit stated that "[w]e [lost] on price," and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers' needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season."
This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360 and "SuperLawyers" by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Intuit stock price has crashed this year and is now hovering at its lowest level since September 2020. INTU has plunged 62% from its July last year high, making it the top laggard in the Nasdaq 100 Index this year. Its market cap has slumped from over $215 billion to $83 billion today.
INTU stock price has crashed in the past few months as concerns about SaaSpocalypse continued. SaaSpocalypse is a concept where analysts believe that artificial intelligence (AI) tools will disrupt software companies.
Intuit is one of the top SaaS companies that may experience this disruption. For one, it is a giant software company that offers several solutions like TurboTax, CreditKarma, QuickBooks, and Mailchimp.
While some of these solutions may be disrupted by AI tools, the reality is that companies will find it hard to disrupt these platforms. For example, it is hard to imagine an accounting platform that will replace QuickBooks, the most popular software in the industry.
It will also be hard to disrupt companies, some of the other solutions like CreditKarma and TurboTax. Indeed, in some instances, it is likely that AI will help to supercharge some of these businesses and even save it money.
The only struggling company in Intuit’s portfolio is MailChimp, a company it purchased in a $12 billion deal funded by cash and stock. MailChimp, a top player in the email marketing industry, is no longer growing as it used to before.
The most recent results showed that Intuit’s business was still growing. Its revenue rose by 10% to $8.6 billion, with its Global Business rising by 15% and its consumer rising by 8%. The two made $3.3 billion and $5.3 billion, respectively. Excluding MailChimp, its global business’s revenue growth was 17%.
Wall Street analysts believe that Intuit’s business will continue growing this year. The average estimate among 29 analysts tracking the company is that its annual revenue this year will grow by 13% to $21.37 billion. It will then grow by 11% to $23.8 billion next year. An above 10% revenue growth for a software company like Intuit is quite solid.
Intuit has worked to offset its slowing business growth by focusing on capital returns to investors. It returned over $1.6 billion to investors through share buybacks and the management authorized another tranche of $8 billion.
Intuit has also become a bargain company, with its forward price-to-earnings ratio standing at 12, much lower than other software companies. It is also much lower than its historical average of 34. This makes it a good candidate to benefit when dip-buyers step in.
READ MORE: Intuit to cut 3,000 jobs, Reuters reports, as stock falls ahead of earnings
INTU stock chart | Source: TradingView
The daily chart shows that the Intuit share price has been in a strong downward trend in the past few months and is now at its lowest point in years. It has constantly remained below all moving averages, a sign that bears remain in control for now.
The stock has also crashed below the important support level at $350. This is both a psychological level and its lowest point in February and April this year.
Therefore, the most likely scenario is where the INTU stock retreats further in the near term. It will then start going up once investors start buying the dip. In the long0term, there is a likelihood that the stock will retest the key resistance level at $500.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Intuit (INTU - Free Report) Headquartered in Mountain View, CA, Intuit Inc. is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally. The company has offices in the United States, Canada, India and the U.K.
INTU is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. INTU has a Growth Style Score of A, forecasting year-over-year earnings growth of 18.1% for the current fiscal year.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.57 to $23.79 per share. INTU also boasts an average earnings surprise of +6.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, INTU should be on investors' short list.
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Intuit, Inc. (“Intuit” or the “Company”) (NASDAQ: INTU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Intuit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit said that “[w]e [lost] on price,” and revealed that the Company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
On this news, Intuit’s stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, June 10, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.
If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action Investigation:
Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rights Why is Intuit Being Investigated for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”
In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit’s Stock Drop?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
On June 10, 2026, we delve into the DCF analysis for Intuit Inc INTU , a company that has faced significant price performance challenges recently. The stock has experienced a decline of 55.4% year-to-date and 61.2% over the past year, raising questions about its valuation.
DCF Earnings-based intrinsic value of $812.41 vs current price of $293.78 (margin of safety: 59.2%) DCF FCF-based intrinsic value of $785.65 vs current price (second opinion) GF Score™ of 82/100 indicates a high reliability of the DCF inputs What Is INTU Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates the intrinsic value of Intuit Inc by projecting its future earnings growth. For the first ten years, we expect a robust growth rate of 21.8%, followed by a terminal growth phase at a more conservative rate of 4% for the subsequent ten years. The discount rate applied is 11%, which incorporates the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $23.04 10-Year Growth Rate 21.8% 10-Year Treasury Rate 4.53% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage model consists of a growth phase followed by a terminal phase. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 21.8%, discounted at 11% $397.74 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $414.67 Intrinsic Value Growth + Terminal $812.41 With a current price of $293.78 compared to an intrinsic value of $812.41, Intuit Inc appears significantly undervalued, presenting a margin of safety of 59.2%. It is important to note that GuruFocus uses EPS without non-recurring items because research indicates that stock prices correlate more closely with earnings than free cash flow. For further details, visit the INTU DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Intuit Inc is calculated at $785.65. When comparing this with the earnings-based intrinsic value of $812.41, both models indicate that the stock is significantly undervalued, with a margin of safety of 62.6%. This consistency across valuation methods reinforces the reliability of the analysis.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Intuit Inc stands at $805.48, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure, calculated from historical trading multiples, past business growth, and future performance estimates. All three models—the DCF earnings-based, DCF FCF-based, and GF Value™—agree that Intuit Inc is significantly undervalued. For more information, visit the GF Value™ page.
What Does INTU's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006-2021.
Metric Rating GF Score™ 82/100 Financial Strength 7/10 Profitability 10/10 Growth 10/10 Valuation 2/10 Momentum 2/10 The predictability rank for Intuit Inc is 3/5 stars, indicating that the DCF model is moderately reliable for this stock. For more detailed information, visit the INTU stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Additionally, stocks with low predictability ratings may yield less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not fully capture future economic conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the clear verdict is that Intuit Inc is significantly undervalued. This presents a potential opportunity for investors looking for undervalued stocks. For the full DCF analysis, visit the INTU DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is INTU's intrinsic value based on DCF?
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].
If you looked at Intuit's (INTU 0.09%) 51% year-to-date drop without any context, it would be easy to assume that the company's fundamentals have deteriorated substantially. Or you might assume that the company's valuation had previously climbed to too lofty a level, and that it had undergone a necessary correction.
However, neither of those things is the case. Intuit is still gaining market share and has high profit margins. And in the wake of its decline, it has an 18.5 price-to-earnings (P/E) ratio. Its valuation hasn't been this low in more than a decade.
Image source: Getty Images.
Focus on fundamentals over stock price movements The stock looks attractive when you combine strengthening fundamentals with a share price that continues to plummet. This mismatch came about because of concerns that AI would inexpensively replace the types of software that Intuit specializes in.
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The theory is that if people are able to use AI models to help them do their taxes and handle bookkeeping matters, there won't be much of a need for TurboTax or QuickBooks. Intuit's decision to cut its workforce by 17% earlier this year added to investors' worries on those fronts, but none of these concerns have yet shown up where it matters: in the company's financial results.
Intuit delivered 10% year-over-year revenue growth in its fiscal 2026 third quarter, which ended April 30. Net income also rose by 9% year over year, resulting in a 35.8% net profit margin.
Intuit's revenue is always a bit lumpy, since most of its sales come during tax season. However, it has consistently maintained double-digit percentage revenue growth rates for several years. For instance, it has a five-year compound annual revenue growth rate of 19.7%. While the fintech company's revenue growth has decelerated in recent years, a 10% growth rate does not justify a 51% year-to-date drop.
Intuit doesn't only rely on TurboTax Revenues from TurboTax are still growing -- they were up by 7% year over year in the company's fiscal Q3 2026. Meanwhile, TurboTax Live is projected to grow by 36% year over year in fiscal 2026, and that makes up more than half of total TurboTax revenue. As this facet of the top line becomes larger, it should accelerate TurboTax's overall growth rate.
Even then, Intuit still has other growth levers. Credit Karma revenue was up by 15% year over year as consumers took out more loans. The global business solutions segment also jumped by 15% year over year.
The global business solutions segment is notable, since it made up almost 40% of Intuit's total revenue. That result prompted Intuit to raise full-year guidance to 16% year-over-year growth for the global business solutions part of the company, which includes QuickBooks and MailChimp.
Intuit's fundamentals tell a different story from its recent stock price movements. As more investors come to recognize that difference, the stock should start to reclaim some of its lost ground.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Intuit, Inc. ("Intuit" or the "Company") (NASDAQ: INTU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Intuit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it "did not have the overall tax season we expected" and that it "faced pressure among the most price-sensitive DIY filers." Intuit said that "[w]e [lost] on price," and revealed that the Company needed to evolve its business model by delivering the right lineup and price points to meet simple filers' needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season."
On this news, Intuit's stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Intuit (INTU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of TurboTax, QuickBooks and other accounting software have returned -23.5% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Computer - Software industry, to which Intuit belongs, has lost 3.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Intuit is expected to post earnings of $3.55 per share, indicating a change of +29.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +31.2% over the last 30 days.
The consensus earnings estimate of $23.79 for the current fiscal year indicates a year-over-year change of +18.1%. This estimate has changed +4.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $27.33 indicates a change of +14.9% from what Intuit is expected to report a year ago. Over the past month, the estimate has changed +2.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Intuit.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Intuit, the consensus sales estimate for the current quarter of $4.27 billion indicates a year-over-year change of +11.6%. For the current and next fiscal years, $21.37 billion and $23.9 billion estimates indicate +13.5% and +11.8% changes, respectively.
Last Reported Results and Surprise HistoryIntuit reported revenues of $8.56 billion in the last reported quarter, representing a year-over-year change of +10.4%. EPS of $12.8 for the same period compares with $11.65 a year ago.
Compared to the Zacks Consensus Estimate of $8.52 billion, the reported revenues represent a surprise of +0.45%. The EPS surprise was +2.56%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Intuit is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Intuit. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
NEW YORK, June 12, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.
If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action Investigation:
Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rights
Why is Intuit Being Investigated for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”
In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit’s Stock Drop?
On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Defense major Lockheed Martin said on Wednesday that it had successfully launched a missile from a shipping container and intercepted a test drone amid rising demand for low-cost counter-drone solutions.
Switzerland's fighter-jet plan is running into a fresh pressure point, and Lockheed Martin LMT investors may want to pay attention. The country is now reviewing whether it should extend the life of its current fighter aircraft after a proposed 6 billion-franc, or $7.6 billion, deal to buy new US aircraft became caught in a pricing dispute.
Lawmakers said Thursday that Switzerland should examine keeping both the F-5 Tiger and F/A-18 in service into the 2030s. The goal would be to avoid a “critical reduction in operational combat aircraft capacity” if deliveries of Lockheed Martin's F-35 fighters are delayed. Earlier this week, the Federal Office for Defence Procurement said work had already been completed on the F/A-18 fleet to keep those aircraft operational into the early 2030s.
Defense Minister Martin Pfister is pushing back. He warned that extending the aging fleet would cost millions of francs, saying the proposal is not in Switzerland's security interest or its financial responsibility to the public. If the motion passes, Switzerland would temporarily suspend the decommissioning of the older fighter jets, potentially adding another complication to the country's already disputed F-35 purchase plan.
Lockheed Martin (LMT - Free Report) ended the recent trading session at $519.05, demonstrating a +1.37% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 1.73%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
The aerospace and defense company's shares have seen a decrease of 0.43% over the last month, not keeping up with the Aerospace sector's gain of 3.61% and the S&P 500's gain of 4.59%.
The upcoming earnings release of Lockheed Martin will be of great interest to investors. On that day, Lockheed Martin is projected to report earnings of $7.09 per share, which would represent a year-over-year decline of 2.74%. Simultaneously, our latest consensus estimate expects the revenue to be $19.41 billion, showing a 6.9% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $29.88 per share and revenue of $79.05 billion, which would represent changes of +29.24% and +5.33%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lockheed Martin. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. As of now, Lockheed Martin holds a Zacks Rank of #3 (Hold).
Investors should also note Lockheed Martin's current valuation metrics, including its Forward P/E ratio of 17.13. This represents a discount compared to its industry average Forward P/E of 22.31.
Meanwhile, LMT's PEG ratio is currently 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
, /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Lockheed Martin Corporation (NYSE: LMT) ("Lockheed" or the "Company").
Beginning in early 2024, the Company publicly represented that it had disciplined bidding practices and adequate oversight of its classified defense contracts. However, in three successive disclosures — October 2024, January 2025, and July 2025 — the Company revealed increasing losses due to significantly underestimated costs on several contracts, with each wave of losses larger than the last, and each time management representing that the situation had been fully assessed and contained, only to be contradicted months later. Further, throughout this period, the board quietly amended executive compensation formulas to shield bonuses from the impact of the anticipated losses, and caused the company to repurchase nearly $5 billion of its own stock at prices allegedly inflated by the misleading statements.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period in violation of federal securities laws, which remains ongoing.
KSF's investigation is focusing on whether Lockheed's officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Lockheed shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nyse-lmt/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
[email protected]
1-877-515-1850
1100 Poydras St., Suite 960
New Orleans, LA 70163
, /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Lockheed Martin Corporation (NYSE: LMT) ("Lockheed" or the "Company").
Beginning in early 2024, the Company publicly represented that it had disciplined bidding practices and adequate oversight of its classified defense contracts. However, in three successive disclosures — October 2024, January 2025, and July 2025 — the Company revealed increasing losses due to significantly underestimated costs on several contracts, with each wave of losses larger than the last, and each time management representing that the situation had been fully assessed and contained, only to be contradicted months later. Further, throughout this period, the board quietly amended executive compensation formulas to shield bonuses from the impact of the anticipated losses, and caused the company to repurchase nearly $5 billion of its own stock at prices allegedly inflated by the misleading statements.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period in violation of federal securities laws, which remains ongoing.
KSF's investigation is focusing on whether Lockheed's officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Lockheed shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nyse-lmt/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner [email protected]
1-877-515-1850
1100 Poydras St., Suite 960
New Orleans, LA 70163
View original content to download multimedia:https://www.prnewswire.com/news-releases/lockheed-martin-investigation-initiated-kahn-swick--foti-llc-investigates-the-officers-and-directors-of-lockheed-martin-corporation---lmt-302793154.html
Lockheed Martin and Boeing have not participated in the recent space stock rally despite their space exposure. ULA's lack of cost innovation and limited market fit diminish its competitiveness versus SpaceX, limiting BA and LMT's rerating potential. Space segments represent a minority of revenues and profits for both LMT and BA, reducing their sensitivity to space sector momentum.
The AAM S&P 500 High Dividend Value ETF (NYSEARCA:SPDV) screens the S&P 500 for stocks combining the highest yields with the strongest value characteristics, then caps sector exposure to prevent concentration in utilities and REITs. For income investors, the question is whether that rules-based screen surfaces companies that can sustain payouts, or whether yield chasing pulls in names with deteriorating fundamentals. The data on SPDV’s current holdings suggests the methodology works, with some caveats worth understanding.
How SPDV builds its income stream SPDV ranks S&P 500 stocks by dividend yield and value metrics, applying sector diversification caps to limit concentration risk. The fund has returned 14% year to date through June 8, 2026, and 27% over the past year. Income comes entirely from dividends paid by underlying companies, so safety analysis means examining whether the largest contributors can sustain distributions through a credit-tightening cycle. With the 10-year Treasury near 4.6% and sitting in the 97th percentile of its 12-month range, dividend payers face stiffer competition from risk-free yield than a year ago.
The blue-chip core looks durable Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) is the safety anchor. The board raised the quarterly payout to $1.34, its 64th consecutive annual increase, and JNJ carries one of only two AAA corporate credit ratings in the U.S. Q1 net income fell 52% on litigation charges and STELARA biosimilar erosion, but management raised full-year guidance to adjusted EPS of $11.45 to $11.65, which comfortably covers the roughly $5.20 annualized dividend.
Microsoft (NASDAQ:MSFT) and Visa (NYSE:V) are the low-yield, high-coverage names. Microsoft pays $0.91 quarterly against $16.79 in trailing EPS, a payout ratio so light the dividend would survive a deep earnings recession. Visa’s $0.67 quarterly dividend is backed by a 67% operating margin and Q1 operating cash flow of $6.78 billion, up 26% year over year. Both contribute the dividend growth that protects SPDV’s distribution over time.
Broadcom (NASDAQ:AVGO) is the growth engine. Free cash flow hit $10.26 billion in Q2 FY26, 46% of revenue, and the dividend climbed from $0.59 to $0.65 quarterly in late 2025. AI semiconductor revenue is guided to $16 billion in Q3, up more than 200% year over year. Leverage from past acquisitions exists, but free cash flow comfortably covers the dividend.
The one name that bears watching Lockheed Martin (NYSE:LMT) is where SPDV holders should focus. Q1 operating cash flow collapsed to $220 million, down 84% year over year, while the company paid $816 million in dividends. Free cash flow was negative $291 million after charges on F-16, C-130, CH-53K, and Seahawk programs. Q1 is seasonally the weakest quarter for LMT, and management reaffirmed full-year free cash flow guidance of $6.5 billion to $6.8 billion against an annualized dividend bill near $3.3 billion. The payout covers, but the cushion is thinner than it appears.
Total return and the verdict SPDV’s five-year price gain of 48% trails broad-market growth funds, the trade investors make when choosing a value-tilt income screen. The methodology delivers on its core promise: top holdings are dominated by dividend growers with real free cash flow rather than stretched payers reaching for yield. JNJ’s Dividend King status, Microsoft and Visa’s low payout ratios, and Broadcom’s expanding AI cash flow give the fund a durable income foundation. Lockheed’s Q1 stumble reminds investors that even quality names hit air pockets, but the broader portfolio’s diversification absorbs that risk. For investors wanting dividend income screened for value rather than maximum yield, SPDV’s distribution looks sustainable heading into the back half of 2026.
Key Takeaways LMT completed a PrSM Increment 4 propulsion test, shifting from booster to ramjet.Lockheed Martin says ramjet PrSM Increment 4 should exceed 1,000 km and stay HIMARS/M270 compatible.LMT invested $300M in additive manufacturing and automation to speed PrSM production and deployment. Lockheed Martin (LMT - Free Report) is strengthening its long-range missile capabilities through new technology, testing milestones and production investments. As demand for advanced missile systems rises, the company is developing longer-range weapons for the U.S. Army and allied nations.
On June 3, 2026, Lockheed Martin, along with L3Harris Technologies (LHX - Free Report) and the U.S. Army, completed a key propulsion test for its Precision Strike Missile (PrSM) Increment 4 program. The missile successfully transitioned from a booster engine to a ramjet engine, validating a critical propulsion system milestone and keeping the program on track for flight testing later this year.
The ramjet-powered PrSM Increment 4 is expected to extend the missile’s range beyond 620 miles (1,000 kilometers) while remaining compatible with existing HIMARS and M270 launchers, enabling easier integration without new launch systems. The missile is also designed for higher speed, maneuverability and improved targeting against moving maritime and relocatable land targets.
To support production, Lockheed Martin and L3Harris have invested more than $300 million in additive manufacturing and automation. Overall, through propulsion advancements, production investments and platform compatibility, Lockheed Martin is strengthening its long-range precision-strike portfolio.
Other Stocks to Keep on the WatchlistOther aerospace companies that are expanding their missile production are discussed below:
L3Harris is a key supplier of advanced propulsion systems, missile warning technologies and defense electronics used across various missile and tactical weapon programs. The company also supports next-generation strike capabilities through its expertise in rocket motors, propulsion technologies and integrated mission systems, strengthening its position in the growing missile defense market.
RTX Corporation (RTX - Free Report) : It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.
The Zacks Rundown for LMTShares of LMT have risen 9% in the past year compared with the industry’s 0.2% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.83X compared with its industry’s average of 31.85X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
LMT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aerospace giant Lockheed Martin Corp (NYSE:LMT) is trading 3.8% higher at $544.81 this afternoon, maintaining its 12% year-to-date gain, but struggling to make any longer-term progress. Although LMT remains 21.3% below its March 2 record high of $692.00, a historically bullish signal is now flashing, which could suggest more gains are to come for the struggling defense stock.
According to Schaeffer's Senior Quantitative Analyst Rocky White, LMT is trading within 0.75 times the 260-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline.
This setup has appeared nine times during the last decade, after which the stock was higher one month later 78% of the time, averaging an impressive 3.8% gain. A comparable rally from current levels would put Lockheed Martin stock at just $565.
Currently, 16 of the 24 brokerages in coverage sport a "hold" or worse recommendation. This leaves ample room for more bulls to move in, should this bearish attention begin to unwind.
Lockheed stock's Schaeffer's Volatility Scorecard (SVS) comes in at 99 out of 100. In other words, the security has consistently realized higher volatility than its options have priced in over the past 12 months.
Aerospace giant Lockheed Martin Corp (NYSE:LMT) is trading 3.8% higher at $544.81 this afternoon, maintaining its 12% year-to-date gain, but struggling to make any longer-term progress. Although LMT remains 21.3% below its March 2 record high of $692.00, a historically bullish signal is now flashing, which could suggest more gains are to come for the struggling defense stock.
According to Schaeffer's Senior Quantitative Analyst Rocky White, LMT is trading within 0.75 times the 260-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline.
This setup has appeared nine times during the last decade, after which the stock was higher one month later 78% of the time, averaging an impressive 3.8% gain. A comparable rally from current levels would put Lockheed Martin stock at just $565.
Currently, 16 of the 24 brokerages in coverage sport a "hold" or worse recommendation. This leaves ample room for more bulls to move in, should this bearish attention begin to unwind.
Lockheed stock's Schaeffer's Volatility Scorecard (SVS) comes in at 99 out of 100. In other words, the security has consistently realized higher volatility than its options have priced in over the past 12 months.
Lockheed Martin (LMT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this aerospace and defense company have returned +5.4% over the past month versus the Zacks S&P 500 composite's -0.2% change. The Zacks Aerospace - Defense industry, to which Lockheed belongs, has gained 2.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Lockheed is expected to post earnings of $7.09 per share for the current quarter, representing a year-over-year change of -2.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $29.88 points to a change of +29.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $32.2 indicates a change of +7.8% from what Lockheed is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Lockheed is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Lockheed, the consensus sales estimate for the current quarter of $19.41 billion indicates a year-over-year change of +6.9%. For the current and next fiscal years, $79.05 billion and $82.47 billion estimates indicate +5.3% and +4.3% changes, respectively.
Last Reported Results and Surprise HistoryLockheed reported revenues of $18.02 billion in the last reported quarter, representing a year-over-year change of +0.3%. EPS of $6.44 for the same period compares with $7.28 a year ago.
Compared to the Zacks Consensus Estimate of $18.12 billion, the reported revenues represent a surprise of -0.57%. The EPS surprise was -3.45%.
Over the last four quarters, Lockheed surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Lockheed is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lockheed. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Estée Lauder shares are powering higher. Why are EL shares rallying? The companies said discussions regarding a potential business combination had ended. On March 23, the companies confirmed they were in discussions regarding a potential transaction, although no agreement had been signed.
Stéphane de La Faverie, president and CEO of The Estée Lauder Companies, said the company remains focused on executing its "Beauty Reimagined" strategy.
"Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company," de La Faverie said.
The company said its Beauty Reimagined strategy and "One ELC" operating model are aimed at building a faster and more agile organization focused on innovation, execution and global growth opportunities.
Estée Lauder also said it will continue evaluating its portfolio for potential acquisitions and divestitures while remaining focused on sustainable sales growth, profitability expansion and delivering a double-digit adjusted operating margin over time.
Estée Lauder Shares AdvanceEL Price Action: At the time of publication, Estée Lauder shares are trading 10.34% higher at $87.07, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Estee Lauder Companies Inc (NYSE:EL, XETRA:ELAA) shares rose about 10% on Wednesday after the company confirmed it has ended discussions with Puig regarding a potential business combination, removing uncertainty around a deal that had been under consideration since March.
In a statement, Estée Lauder said both parties have terminated talks on the proposed transaction, noting there is no agreement in place.
The company said that it will continue to operate independently and focus on executing its “Beauty Reimagined” strategy.
“We are grateful for the conversations we have had with Puig,” Estée Lauder CEO Stéphane de La Faverie said in a statement.
He reiterated confidence in Estée Lauder’s brand portfolio and its ability to generate long-term value as a standalone business.
The company highlighted ongoing progress under its strategic overhaul, including its “One ELC” operating model aimed at improving agility, accelerating innovation, and strengthening global execution across its prestige beauty brands.
Estée Lauder said it will continue to assess portfolio opportunities, including both acquisitions and divestitures, as part of its broader growth strategy. Management also reaffirmed its focus on driving sustainable revenue growth and expanding profitability over time.
Shares of Spain-listed Puig (BME:PUIG) fell about 14% on the update.
Estée Lauder EL shares jumped about 10% on Friday after the company said it and Spanish beauty group Puig ended discussions over a possible merger.
The move lifted Estée Lauder as investors appeared to welcome the company staying independent.
Estée Lauder said the talks were terminated and that it remains focused on its Beauty Reimagined turnaround plan. The strategy centers on premium product launches and a leaner supply chain, two areas the company says should help support a recovery.
Estée Lauder President and Chief Executive Stéphane de La Faverie said the company remains confident in its brands and its ability to create long-term value on its own. Shares were up 11% shortly after the opening bell.
Estée Lauder has also said it expects a $100 million hit to full-year profit from tariffs. Its restructuring plan, which could cost $1.2 billion to $1.6 billion, includes thousands of job cuts as the company looks to save about $1.2 billion.
Item 1 of 2 An Estee Lauder cosmetics counter is seen in Los Angeles, California, U.S., August 19, 2019. REUTERS/Lucy Nicholson/File Photo
[1/2]An Estee Lauder cosmetics counter is seen in Los Angeles, California, U.S., August 19, 2019. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesCharlotte Tilbury stake proved a stumbling block, sources sayEstée Lauder shares rise after deal collapses, Puig fallsTalks had continued for months and agreed on some issuesLONDON/NEW YORK, May 22 (Reuters) - U.S. cosmetics maker Estée Lauder (EL.N), opens new tab and Spanish perfume group Puig (PUIGb.MC), opens new tab had been finalising the details of a deal when talks fell apart late on Thursday, preventing a merger that would have created a $40 billion luxury beauty giant.
The merged company would have put together brands such as Tom Ford, Clinique and MAC with Carolina Herrera and Charlotte Tilbury, popular with TikTok influencers and affluent millennials.
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But leaks, disagreements between the powerful controlling families, and demands, including from make-up magnate Charlotte Tilbury, led the talks to collapse, five people with direct knowledge of the deal told Reuters.
On Thursday evening in Barcelona, and morning in New York, Puig grandee Marc Puig got on the phone with Estée Lauder chairman William Lauder to assess the deteriorating situation, one of the sources said.
Shortly afterwards, advisers on both sides began exchanging messages, according to a second source with knowledge of the discussions. One of the messages included a skull emoji meaning the deal was dead.
Spokespeople at Puig and Estée Lauder declined to comment.
CHARLOTTE TILBURY'S MINORITY STAKEThe latest stumbling block had been demands linked to Charlotte Tilbury, the founder of the eponymous beauty brand majority-owned by Puig, regarding the terms of her minority stake, all five sources said.
Charlotte Tilbury's firm declined to comment.
The five sources, close to both sides of the talks, spoke on condition of anonymity because the process was confidential.
Three of the people said the two groups had repeatedly been about to announce a merger.
Estée Lauder had assembled a team of advisers who worked through last weekend on a valuation of Puig, requested by Spain's stock market regulator as part of the proposed transaction, according to one of the sources.
MONTHS OF NEGOTIATIONS ACROSS CONTINENTSDiscussions between the two sides began late last year, one of the sources said.
When they became public knowledge in March, investors viewed the prospect of a deal as better for Puig than Estée Lauder. Puig's shares spiked and the U.S. company's shares fell.
The reverse happened after the talks collapsed as Estée Lauder rose around 10% on Friday, while Puig fell 13%.
Estee Lauder and Puig sharesEstée Lauder investors' dislike of the deal was another factor that hindered the talks, according to three sources.
The company's return to stronger earnings growth in its most recent quarter meanwhile increased its confidence in remaining independent, the three sources added.
The months of negotiations included meetings in Paris, New York and Barcelona, and achieved apparent agreement in principle on issues such as the governance of the new entity.
Other points discussed included a possible dual listing in New York and Madrid, retaining Barcelona as the headquarters for the combined fragrances business, and details on how to reach the synergies of the combined company, two of the people said.
Both founding families, Lauder and Puig, wanted to keep a say in the new group, according to two sources with knowledge.
The companies also struggled to resolve how to structure assets such as Charlotte Tilbury and sun care brand Isdin - two of Puig's main profit-drivers, in which the group does not hold full ownership, two of the sources said.
Reporting by Andres Gonzalez and Abigail Summerville; Editing by Adam Jourdan, Anousha Sakoui and Barbara Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Andres Gonzalez covers M&A for Reuters, based in London. With over 12 years of experience as a correspondent in Spain, he has reported on diverse sectors, including banking, TMT, energy, infrastructure and real estate. Andres has also reported on significant breaking news events, such as the Barcelona attacks and several general elections, showcasing his versatility and ability to handle critical and time-sensitive stories Andres' journalism career began at Reuters in Spain, where he honed his expertise in financial reporting. Seeking new challenges, he ventured into the world of Public Relations, working for Banco Santander with a particular focus on Wealth Management and Investment Banking divisions. His experience in both journalism and PR has provided him with a well-rounded perspective on the financial industry.
Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.
US cosmetics maker Estée Lauder and Spanish perfume group Puig had been finalizing the details of a deal when talks fell apart late on Thursday, preventing a merger that would have created a $40 billion luxury beauty giant.
The merged company would have put together brands such as Tom Ford, Clinique and MAC with Carolina Herrera and Charlotte Tilbury, popular with TikTok influencers and affluent millennials.
But leaks, disagreements between the powerful controlling families, and demands, including from make-up magnate Charlotte Tilbury, led the talks to collapse, five people with direct knowledge of the deal told Reuters.
The latest stumbling block had been demands linked to Charlotte Tilbury, the founder of the eponymous beauty brand majority-owned by Puig. Getty Images On Thursday evening in Barcelona, and morning in New York, Puig grandee Marc Puig got on the phone with Estée Lauder chairman William Lauder to assess the deteriorating situation, one of the sources said.
Shortly afterwards, advisers on both sides began exchanging messages, according to a second source with knowledge of the discussions. One of the messages included a skull emoji meaning the deal was dead.
Spokespeople at Puig and Estée Lauder declined to comment.
Charlotte Tilbury’s minority stake The latest stumbling block had been demands linked to Charlotte Tilbury, the founder of the eponymous beauty brand majority-owned by Puig, regarding the terms of her minority stake, all five sources said.
There were disagreements between the powerful controlling families. Estee lauder ChairmAN William Lauder with Elizabeth Hurley. Stephen Lovekin/Shutterstock Charlotte Tilbury’s firm declined to comment.
The five sources, close to both sides of the talks, spoke on condition of anonymity because the process was confidential.
Three of the people said the two groups had repeatedly been about to announce a merger.
Estée Lauder had assembled a team of advisers who worked through last weekend on a valuation of Puig, requested by Spain’s stock market regulator as part of the proposed transaction, according to one of the sources.
Estée Lauder investors’ dislike of the deal was another factor that hindered the talks, sources said. REUTERS Months of negotiations across continents Discussions between the two sides began late last year, one of the sources said.
When they became public knowledge in March, investors viewed the prospect of a deal as better for Puig than Estée Lauder. Puig’s shares spiked and the US company’s shares fell.
The reverse happened after the talks collapsed as Estée Lauder rose around 10% on Friday, while Puig fell 13%.
Estée Lauder investors’ dislike of the deal was another factor that hindered the talks, according to three sources.
Marc Puig and Anna Wintour in 2014. Getty Images The company’s return to stronger earnings growth in its most recent quarter meanwhile increased its confidence in remaining independent, the three sources added.
The months of negotiations included meetings in Paris, New York and Barcelona, and achieved apparent agreement in principle on issues such as the governance of the new entity.
Other points discussed included a possible dual listing in New York and Madrid, retaining Barcelona as the headquarters for the combined fragrances business, and details on how to reach the synergies of the combined company, two of the people said.
Tilbury and King Charles in New York last month. via REUTERS Both founding families, Lauder and Puig, wanted to keep a say in the new group, according to two sources with knowledge.
The companies also struggled to resolve how to structure assets such as Charlotte Tilbury and sun care brand Isdin – two of Puig’s main profit-drivers, in which the group does not hold full ownership, two of the sources said.
Estee Lauder (EL - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, EL broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
EL has rallied 13.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests EL could be on the verge of another move higher.
Looking at EL's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 10 revisions higher for the current fiscal year compared to none lower, and the 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 EL for more gains in the near future.
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.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes 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.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Estee Lauder (EL - Free Report) New York-based The Estee Lauder Companies Inc. is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products. The company’s products are sold through department stores, mass retailers, company-owned retail stores, hair salons and travel-related establishments.
EL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Staples stock. EL has a Momentum Style Score of B, and shares are up 13.5% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $2.41 per share. EL boasts an average earnings surprise of +39.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EL should be on investors' short list.
On Friday, AbbVie announced a positive CHMP opinion for Maviret to treat acute hepatitis C infection.
On Thursday, GE Vernova signed an agreement to acquire Robotech Automation, a specialized robotics and automation company based near Montreal, Quebec.
Archer-Daniels-Midland reported better-than-expected first-quarter financial results on May 5 and raised its FY26 adjusted EPS guidance, with the midpoint above estimates.
Don't forget to check out our premarket coverage here
Jenny Van Leeuwen Harrington, chief executive officer of Gilman Hill Asset Management, LLC, said Millrose Properties, Inc. (NYSE:MRP) has an 11% dividend yield.
On the earnings front, Millrose Properties reported worse-than-expected first-quarter financial results on May 6.
Stephanie Link, chief investment strategist, head of investment solutions, and portfolio manager at Hightower Advisors, recommended The Estée Lauder Companies Inc. (NYSE:EL).
Estée Lauder shares jumped on Friday after the company announced it terminated discussions regarding a potential business combination with Puig.
Price Action AbbVie shares gained 0.6% to close at $215.70 on Friday. GE Vernova fell 0.5% to settle at $1,038.74 during the session. Archer-Daniels-Midland shares gained 05% to close at $77.52 on Friday. Millrose Properties shares rose 0.3% to close at $27.63. Estée Lauder shares jumped 11.9% to settle at $88.32 on Friday. Photo via Shutterstock
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NEW YORK--(BUSINESS WIRE)--Stéphane de La Faverie, President and Chief Executive Officer, and Roberto Canevari, Executive Vice President, Chief Value Chain Officer, of The Estée Lauder Companies Inc. (NYSE: EL) will participate in the dbAccess Global Consumer Conference 2026 in Paris on Tuesday, June 2, 2026, at 09:15 a.m. CEST.
Interested parties can access the live webcast of the fireside chat on Tuesday, June 2nd from 09:15 a.m. – 09:55 a.m. CEST at http://www.elcompanies.com/investors. The webcast will be archived on the site.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products, and is a steward of luxury and prestige brands globally. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, the DECIEM family of brands, including The Ordinary and NIOD, and BALMAIN Beauty.
Key Takeaways EL posted 2% organic sales growth and 360-bps adjusted operating margin expansion in Q3.Estee Lauder saw double-digit online sales growth from Amazon, TikTok Shop and Sephora in Q3.EL is simplifying operations and reducing non-consumer-facing costs under its Profit Recovery and Growth Plan. The Estee Lauder Companies Inc.’s (EL - Free Report) Beauty Reimagined strategy is showing early traction, with management positioning fiscal 2026 as a pivotal year for restoring growth and expanding margins. In the third quarter of fiscal 2026, Estee Lauder delivered 2% organic sales growth alongside a 360-basis-point expansion in adjusted operating margin, reflecting early success from its broad transformation efforts.
At the center of the strategy is Estee Lauder’s effort to modernize consumer reach and improve execution across channels, innovation and operations. The company has accelerated expansion on platforms like Amazon Premium Beauty, TikTok Shop and Douyin while increasing specialty-multi exposure through M·A·C’s U.S. Sephora rollout. These initiatives helped drive double-digit online organic sales growth in the fiscal third quarter.
Innovation has also become a more focused growth lever under Beauty Reimagined. Strong momentum in fragrance, which grew double digits in the quarter, was fueled by launches from Le Labo, TOM FORD, KILIAN PARIS and BALMAIN Beauty. Meanwhile, Estee Lauder’s revamped Double Wear foundation and La Mer’s eye-care innovation supported share gains in key markets such as Mainland China and the United States.
Importantly, the strategy is not solely growth-oriented. Estee Lauder is restructuring its operating model to improve efficiency and fund reinvestment in high-return areas. Through its Profit Recovery and Growth Plan, the company is reducing non-consumer-facing expenses, simplifying operations and increasing digital capabilities through partnerships with Shopify, Accenture and WPP.
Management now expects fiscal 2026 to be a pivotal year for the company, marked by the restoration of organic sales growth and its first operating-margin expansion in four years. While macroeconomic and geopolitical risks remain, Beauty Reimagined appears to be creating a more agile, digitally focused and consumer-centric operating model for Estee Lauder.
Estee Lauder’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #1 (Strong Buy) company have gained 20.1% in the past month compared with the broader Consumer Staples sector and the industry’s growth of 4.7% and 15.3%, respectively. EL has also outperformed the S&P 500 index’s growth of 5.8% during the same period.
EL Stock's Past Month Performance
Image Source: Zacks Investment Research
Is Estee Lauder a Value Play Stock?EL currently trades at a forward 12-month P/E ratio of 29.21 compared with the industry average of 23.24. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
EL P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 8.3% and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for Vita Coco’s 2026 sales and earnings indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank #2 (Buy). TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.5% and 0.5%, respectively, from the year-ago reported numbers.
