Investors interested in Textile - Apparel stocks are likely familiar with V.F. (VFC - Free Report) and Cintas (CTAS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, V.F. has a Zacks Rank of #1 (Strong Buy), while Cintas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VFC likely has seen a stronger improvement to its earnings outlook than CTAS has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VFC currently has a forward P/E ratio of 15.40, while CTAS has a forward P/E of 33.83. We also note that VFC has a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CTAS currently has a PEG ratio of 2.91.
Another notable valuation metric for VFC is its P/B ratio of 3.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CTAS has a P/B of 13.81.
Based on these metrics and many more, VFC holds a Value grade of B, while CTAS has a Value grade of F.
VFC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VFC is likely the superior value option right now.
On May 18, 2026, Cintas Corp CTAS shares rose 3.7% to $174.51. The stock has experienced a 52-week range of $161.16 to $229.24, indicating significant volatility over the past year.
GF Value™ verdict: Current price is $174.51, which is 15.9% below the GF Value™ estimate of $207.39.GF Score™ of 95/100 suggests a strong overall performance with high potential for long-term returns.Most notable signal: Insider activity shows that insiders sold $0.8M in the last 3 months without any buying. Is CTAS Overvalued or Undervalued? Cintas Corp CTAS is currently trading at $174.51, which is 15.9% below its GF Value™ estimate of $207.39. This valuation indicates that the stock is undervalued, providing a potential opportunity for investors. The GF Valuation label suggests that the stock is modestly undervalued, which means there may be room for price appreciation as the market recognizes its true value. However, it is essential to consider that undervaluation does not guarantee immediate price increases, and market conditions can change rapidly.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current undervaluation indicates a margin of safety for investors, but vigilance is necessary, especially given the recent trend of insider selling.
How Does CTAS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 36.8x 40.1x Forward P/E 32.1x N/A The current P/E (TTM) of 36.8x is 8% below its 5-year median P/E of 40.1x, indicating that the stock is trading below its historical valuation levels. This analysis aligns with the GF Value™ verdict of Cintas being undervalued, suggesting that the current price offers a favorable entry point relative to past valuations.
What Does CTAS's GF Score™ Tell Us? Metric Rating GF Score™ 95 Financial Strength 7/10 Profitability 10/10 Growth 10/10 Valuation 8/10 Momentum 4/10 The GF Score™ of 95/100 reflects Cintas's strong performance across various dimensions, particularly in Profitability and Growth, where it scored a perfect 10/10. However, the Momentum rank of 4/10 suggests some challenges in recent price performance, which may reflect broader market trends. Overall, the strong scores in Profitability and Growth indicate that Cintas has solid fundamentals, but the weaker momentum could be a point of concern for potential investors.
What Are Insiders Doing with CTAS Stock? In the last three months, insiders at Cintas Corp sold $0.8 million worth of shares with no reported buying activity. This pattern of selling may suggest that insiders are taking profits or have concerns regarding the company's short-term performance. While insider selling does not automatically imply negative sentiment about the company's future, it is an important signal for investors to consider when evaluating the stock's potential.
What This Means for Investors Based on the GF Value™ assessment, Cintas Corp CTAS is currently undervalued, trading at $174.51 compared to a GF Value™ of $207.39. This presents a potential opportunity for investors looking for growth at a reasonable price. However, potential investors should remain cautious, particularly in light of the recent insider selling and the stock's performance over the past year.
For the complete analysis, visit the Cintas Corp CTAS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CTAS's GF Score™?
CTAS has a GF Score™ of 95/100, indicating strong performance across key metrics and suggesting high potential for long-term returns.
Is CTAS overvalued or undervalued?
CTAS is currently undervalued, trading 15.9% below its GF Value™ estimate of $207.39, indicating a potential opportunity for investors.
What is CTAS's P/E ratio?
CTAS's P/E (TTM) is 36.8x, which is below its 5-year median P/E of 40.1x, aligning with the GF Value™ verdict of undervaluation.
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].
NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of UniFirst Corporation (NYSE: UNF) to Cintas Corporation (NasdaqGS: CTAS). Under the terms of the proposed transaction, shareholders of UniFirst will receive $155.00 in cash and 0.7720 shares of Cintas stock for each share of UniFirst that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-unf/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of UniFirst Corporation (NYSE: UNF) to Cintas Corporation (NasdaqGS: CTAS). Under the terms of the proposed transaction, shareholders of UniFirst will receive $155.00 in cash and 0.7720 shares of Cintas stock for each share of UniFirst that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-unf/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
On May 28, 2026, we present a detailed DCF analysis for Cintas Corp CTAS . The company has experienced a challenging price performance, with a year-to-date decline of 9.2% and a significant drop of 24.1% over the past year.
DCF Earnings-based intrinsic value of $126.08 vs current price of $169.86 (margin of safety: -34.7%) DCF FCF-based intrinsic value of $137.63 vs current price (second opinion: fair valued with -23.4% margin of safety) GF Score™ of 94/100 indicates high reliability of the DCF inputs What Is CTAS Worth? DCF Earnings-Based Model The DCF earnings-based model utilizes a two-stage growth approach to estimate the intrinsic value of Cintas Corp. The first stage reflects a high growth period, while the second stage accounts for a more stable terminal growth rate. Below are the key assumptions used in the model:
Parameter Value Current EPS (TTM, excl. non-recurring) $4.74 10-Year Growth Rate 17.6% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage (Years 1-10), the earnings per share (EPS) is projected to grow at 17.6% annually, discounted at a rate of 11%. The growth stage value is calculated to be $66.02 per share. In the second stage (Years 11-20), the growth rate slows to a terminal rate of 4%, also discounted at 11%, resulting in a terminal stage value of $60.06 per share. The summary of the calculation is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.6%, discounted at 11% $66.02 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $60.06 Intrinsic Value Growth + Terminal $126.08 Comparing the current price of $169.86 to the intrinsic value of $126.09 indicates that Cintas Corp is modestly overvalued, with a margin of safety of -34.7%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the CTAS DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Cintas Corp is calculated to be $137.63. When compared to the earnings-based intrinsic value of $126.08, the FCF model suggests a more favorable valuation, indicating that the stock is fair valued with a margin of safety of -23.4%. This divergence between the two models highlights the importance of considering multiple valuation perspectives.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Cintas Corp stands at $207.95, suggesting that the stock is 18.3% undervalued based on GuruFocus' proprietary measure. GF Value™ is calculated from historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based model indicates overvaluation, the FCF model suggests fair valuation, and GF Value™ presents a third perspective of undervaluation. This divergence among the models emphasizes the need for a comprehensive analysis. For more details, visit the GF Value™ page.
What Does CTAS's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested from 2006 to 2021). Below is the breakdown of Cintas Corp's GF Score™:
Metric Rating GF Score™ 94/100 Financial Strength 7/10 Profitability 10/10 Growth 10/10 Valuation 8/10 Momentum 4/10 With a predictability rank of 3/5 stars, this indicates that the DCF model is reasonably reliable for Cintas Corp. For more information, visit the CTAS stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not accurately reflect future economic conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that Cintas Corp is currently overvalued based on the earnings-based DCF model, fair valued according to the FCF model, and undervalued from the GF Value™ perspective. Overall, this presents a mixed view, but the predominant signal is that the stock is overvalued.
For the full DCF analysis, visit the CTAS 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 CTAS's intrinsic value based on DCF?
Answer: earnings-based $126.09, FCF-based $137.63
Is CTAS overvalued or undervalued?
Answer: The DCF earnings model suggests overvaluation, while GF Value™ indicates undervaluation.
How reliable is the DCF model for CTAS?
Answer: The predictability rank of 3/5 indicates a moderate level of reliability for the DCF model.
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].
The recognition underscores consistent trust across Cintas’ business
CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) is proud to have earned a spot on Newsweek’s Most Trustworthy Companies in America 2026 list.
“Trust is foundational to how we operate at Cintas and to the relationships we build with our customers, employee‑partners and shareholders,” said Todd Schneider, President and CEO of Cintas. “Being recognized by Newsweek as one of America’s Most Trustworthy Companies is meaningful because it reflects the consistent way our teams show up every day to deliver on our commitments and care for the people and businesses we serve.”
The evaluation took into consideration trust from customers, investors and employee-partners. To compile the list, researchers analyzed surveys from 25,000 U.S. residents who rated companies they were familiar with across three dimensions of trust. Next, researchers conducted a social listening analysis across various media segments to determine companies’ public sentiment.
In the past year, Cintas has received two trust‑focused recognitions from Newsweek, reflecting sustained confidence from customers, employee‑partners and investors. Recent wins include:
Most Trustworthy Companies in America 2025 World’s Most Trustworthy Companies 2025 About Cintas Corporation
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
Cintas Corporation is a high-quality, wide-moat market leader in uniform and facility services, now trading at a fair valuation after a 24% drawdown. The planned UniFirst acquisition will boost CTAS's North American market share to ~50%, unlocking $375M in expected synergies over four years. CTAS continues to deliver exceptional margins (Q3 2026 gross margin: 51%), robust FCF, and strong capital returns, supporting 45 consecutive years of dividend growth.
This is Cintas’ third consecutive year receiving the recognition
CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) is proud to have earned a spot on Forbes America’s Best Employers for New Grads 2026 list for the third consecutive year.
“We’re proud to create an environment where early‑career talent can learn, grow and build meaningful careers alongside committed partners who invest in their success from day one,” said Todd Schneider, President and CEO of Cintas. “This recognition reflects our dedication to developing people, strengthening our culture and ensuring every partner has the opportunity to reach their full potential.”
To determine the ranking, Forbes partnered with Statista to conduct a survey of more than 100,000 U.S. young professionals (employees who have less than 10 years of work experience) working for companies employing at least 1,000 people within the U.S. The final score is based on two types of evaluations: those submitted by employees and those provided by friends and family members, as well as others working in the same industry.
Cintas’ approach to supporting employee-partners early in their careers begins before graduation with a 12-week internship program. After graduation, Cintas’ Management Trainee (MT) Program offers employee-partners hands‑on experience across key areas of the business through structured training, mentorship and exposure to operations, sales and service, preparing them for long‑term career growth at Cintas.
Cintas’ long‑standing support of entry‑level employee‑partners has been recognized through multiple national workplace honors, including:
Newsweek’s America’s Greatest Workplaces for Entry Level 2026 Newsweek’s America’s Greatest Workplaces for Gen Z 2025 About Cintas Corporation
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
If there’s one thing that’s undoubtedly true over the past decade, it’s that technology stocks have been blistering hot.
And it’s been for very understandable reasons. Many of these companies’ products have entirely changed the way the world behaves. People stay solely connected through digital channels such as social media, students are now taking their exams online, and consumers are even utilizing digital apps that allow for grocery delivery.
But while all that sounds fun and exciting, many have overlooked simple businesses that aren’t overly flashy. This includes companies that handle waste management, provide uniforms for staff, and even energy drink providers, to give a few examples.
Many of these companies fall into the Consumer Staples sector, whose businesses face steady demand across many economic conditions. In other words, people will want their trash picked up no matter the state of the economy, and we all obviously enjoy our caffeine buzz.
And perhaps to the surprise of some, these non-technology companies have seen wildly strong performance, with their lower beta nature providing nice shields against volatility.
Cintas Outperforms MicrosoftFor example, Cintas (CTAS - Free Report) , the company responsible for providing staffing uniforms and other relevant materials to employers, has gained nearly 100% over the last five years, which compares to a 80% gain from Magnificent Seven member Microsoft.
Image Source: Zacks Investment Research
While these investments are typically labeled as ‘boring,’ their stability is undeniable.
Simply put, you don’t have to buy tech stocks to see great returns. Lesser-discussed companies like Cintas have built consistent, dependable growth by doing the ‘simple’ things exceptionally well. Of course, they’re likely not to impress investors given their less-flashy nature, but sometimes boring is better.
Continued revenue growth and strong performance contribute to Cintas’ rise in the ranking
CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) has climbed 15 spots on the Fortune 500 list, ranking 412. This is the company’s ninth consecutive year on the list.
To qualify, Fortune Magazine considers U.S.-based companies that submit financial statements to a government agency. Companies are then ranked based on their total revenues for their respective fiscal years as of January 31, 2026.
In Cintas’ most recent fully disclosed fiscal year, FY25, the company recorded $10.34 billion in revenue, a 7.7 percent increase from its FY24 performance of $9.60 billion.
“Moving up on the Fortune 500 list is a meaningful indicator of the progress our employee-partners are driving every day,” said Todd Schneider, President and CEO of Cintas. “We see significant opportunity ahead and remain focused on delivering sustainable growth for our customers and shareholders.”
Cintas concluded its most recent fiscal year, FY26, on May 31, and will report on the full-year results in July 2026. In the first three quarters of disclosed FY26 earnings, Cintas reported revenues of $8.36 billion. This amount exceeded the equivalent FY25 revenues of $7.67 billion by 8.99%.
About Cintas Corporation
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
Cintas Corporation (Nasdaq: CTAS) has climbed 15 spots on the Fortune 500 list, ranking 412. This is the company’s ninth consecutive year on the list.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260603608117/en/
Cintas climbs 15 spots in the Fortune 500 rankings.
To qualify, Fortune Magazine considers U.S.-based companies that submit financial statements to a government agency. Companies are then ranked based on their total revenues for their respective fiscal years as of January 31, 2026.
In Cintas’ most recent fully disclosed fiscal year, FY25, the company recorded $10.34 billion in revenue, a 7.7 percent increase from its FY24 performance of $9.60 billion.
“Moving up on the Fortune 500 list is a meaningful indicator of the progress our employee-partners are driving every day,” said Todd Schneider, President and CEO of Cintas. “We see significant opportunity ahead and remain focused on delivering sustainable growth for our customers and shareholders.”
Cintas concluded its most recent fiscal year, FY26, on May 31, and will report on the full-year results in July 2026. In the first three quarters of disclosed FY26 earnings, Cintas reported revenues of $8.36 billion. This amount exceeded the equivalent FY25 revenues of $7.67 billion by 8.99%.
About Cintas Corporation
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260603608117/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
The narrative was irresistible. AI data centers need power, nuclear is the answer, and the Range Nuclear Renaissance Index ETF (NASDAQ:NUKZ) wears the trade right on the label. Launched in 2024, NUKZ has delivered, riding the restart story to a one-year gain of 53%.
The question is whether NUKZ deserves a spot in your portfolio when peer funds and a single uranium stock offer similar exposure with fewer structural problems.
What you are actually buying NUKZ tracks companies tied to the nuclear ecosystem: utilities running reactors, uranium miners, fuel processors, and engineering firms building next-generation small modular reactors. That is wider than a pure uranium play. The return engine is equity exposure to capital flowing into the restart and buildout cycle. You own operating businesses whose earnings should benefit if the AI power demand thesis holds. The expense ratio runs roughly 0.85%, which sits above cleaner alternatives in this corner of the market.
Compare that to Sprott Uranium Miners ETF (NYSEARCA:URNM), which charges 0.75% and concentrates on miners with Cameco (NYSE:CCJ | CCJ Price Prediction) at 21% of the portfolio and Sprott Physical Uranium Trust at 14%. URNM is a bet on the rock and the people pulling it out of the ground. NUKZ is a bet on everyone downstream too.
URNM vs NUKZ: the gap you should consider Year to date, NUKZ is up 11%, ahead of URNM at 6%. But zoom out one year and URNM gained 63% against NUKZ at 53%, and a direct position in Cameco (NYSE:CCJ) returned 101%. Cameco shares trade around $104 with and they cost you nothing in expense ratio.
Over the past month NUKZ is flat, while URNM dropped 13% and Cameco lost 10%. The diversified wrapper cushioned the drawdown. If you cannot stomach a 20% slide in your nuclear sleeve, the broader basket earned its fee that month.
Why sub-$1 billion AUM is the actual risk NUKZ holds $870 million in assets. That is operationally viable but thin against Global X Uranium ETF (NYSEARCA:URA), which carries about $6.86 billion. Small thematic ETFs trade fine on calm days.
The problem shows up in stress. Bid-ask spreads on smaller themed ETFs typically widen 50% to 200% during market sell-offs, which means the exit door narrows precisely when you most want to use it. Authorized participants who arbitrage NAV to price step back when underlying holdings get volatile, and the retail investor selling into a thin book pays the difference in real dollars.
Three tradeoffs worth weighing before you size a position:
Liquidity asymmetry. The fund prices cleanly today, but a sharp correction in nuclear equities will widen spreads faster in NUKZ than in URA or Cameco itself. If you trade in and out, this is a tax on every round trip. Theme valuation stretch. Nuclear utilities are pricing in continued AI capital expenditure at current run rates. Vanguard’s 2026 outlook flags AI investment buildout stalling as the key risk to U.S. growth. A capex pause hits NUKZ holdings before it hits the S&P 500. Fee drag against a free alternative. The 0.85% expense ratio compounds against zero for direct Cameco ownership and 0.75% for URNM. Over five years on a $10,000 position, that is real money for largely the same factor exposure. Who NUKZ actually fits NUKZ makes sense as a 3% to 5% thematic sleeve for an investor who wants nuclear exposure broader than uranium mining, accepts that the wrapper will lag a single winning stock, and plans to hold through the cycle rather than trade headlines.
Anyone who would sell during a 25% drawdown should buy Cameco or URA instead, where liquidity holds up under pressure. The fund caught the wave. The wave is what you are exposed to, and the boat is smaller than it looks.
Key Takeaways Cameco Q1 2026 adjusted EBITDA rose 44% to CAD 509M, led by uranium and Westinghouse.CCJ's uranium segment EBITDA climbed 48% to CAD 423M on higher volumes and prices despite 9% higher costs.Westinghouse contributed $122M in Q1 share; 2026 guidance calls for $370M-$430M in adjusted EBITDA share. Cameco Corporation’s (CCJ - Free Report) adjusted EBITDA in the first quarter of 2026 rose 44% year over year to CAD 509 million ($372 million), primarily supported by stronger uranium segment performance and higher contributions from Westinghouse.
Within the core uranium segment, adjusted EBITDA was CAD423 million ($306 million), indicating a 48% increase year over year. This was attributed to higher volumes and prices, which helped offset a 9% increase in total cost of sales (including depreciation and amortization). Cameco’s share of Westinghouse’s adjusted EBITDA was $122 million compared with $92 million in the first quarter of 2025.
These performances helped offset the 28% decline in the Fuel Services segment’s adjusted EBITDA in the quarter, which was pressured by lower average realized pricing during the quarter.
Over the past few years, Cameco has delivered a sharp expansion in profitability, with adjusted EBITDA rising more than fourfold from CAD 431 million in 2022 to CAD 1.93 billion in 2025. The uranium business has been Cameco’s primary driver, generating CAD 1.26 billion ($0.92 billion) in adjusted EBITDA in 2025, up 6% year over year. This was supported by higher average realized uranium prices in Canadian dollar terms, which offset lower sales volumes and higher total cost of sales.
The fuel services segment had posted robust growth in 2025, with adjusted EBITDA increasing 51% to CAD 219 million ($158 million). This was attributed to higher realized pricing and volumes, which offset the increase in total cost of products and services sold.
Westinghouse was another key contributor, with adjusted EBITDA increasing 61% to CAD 780 million. This reflects the increase in Cameco’s share of Westinghouse’s second-quarter revenues tied to the Dukovany construction project. Management expects continued momentum, with 2026 guidance indicating Cameco’s share of Westinghouse adjusted EBITDA between $370 million and $430 million.
Looking ahead, Cameco’s EBITDA growth is expected to be supported by its contracted volumes and expected increase in uranium prices, underpinned by tight global supply, long-term contracting discipline and rising nuclear energy demand as countries prioritize energy security and decarbonization. The fuel services business is expected to remain a stable contributor, supported by consistent conversion demand and improving pricing dynamics. Finally, Westinghouse represents a key growth lever, with exposure to global nuclear restarts and reactor construction pipelines providing long-term earnings visibility.
CCJ’s Price Performance, Valuation & EstimatesIn the past year, Cameco shares have gained 73.2% compared with the industry’s 30.4% growth. Uranium peers Energy Fuels (UUUU - Free Report) and Centrus Energy (LEU - Free Report) have gained 231.1% and 40.3%, respectively.
Image Source: Zacks Investment Research
CCJ stock is trading at a forward price-to-sales ratio of 18.01 compared with the industry’s 5.33. Energy Fuels is trading higher at 25.60 while Centrus Energy is trading lower at 7.42.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2026 of $1.32 indicates year-over-year growth of 28%. The same for 2027 implies growth of 59.2%.
Image Source: Zacks Investment Research
The consensus estimate for Cameco’s earnings for 2026 has moved down over the past 60 days, while the same for 2027 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All amounts in Canadian dollars unless specified otherwise
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Cameco (TSX: CCO; NYSE: CCJ) today announced that the Key Lake mill and McArthur River mine have returned to full production activities following a disruption caused by flooding in northern Saskatchewan. Our 2026 consolidated production outlook remains unchanged.
On May 10, 2026, Cameco announced that Key Lake had temporarily halted production activities and McArthur River had reduced activities due to the impact of flooding in northern Saskatchewan. While our northern Saskatchewan sites were not directly impacted by flood waters, the Smoothstone River Bridge, which is on the primary route we use to transport supplies to the McArthur River and Key Lake sites, partially collapsed due to flood waters. There were also weight and traffic restrictions on the alternative roadway, which interrupted the delivery of critical operating materials.
We are in regular contact with the Saskatchewan Ministry of Highways, and while the timing to restore access to our primary supply route is still being confirmed, we have now been able to consistently deliver the volume of critical materials required to resume full operations at Key Lake and McArthur River using the secondary route. However, as is the case every spring season, there remains a risk that continued thawing and precipitation events could result in further road restrictions, which could cause delays in future deliveries of critical operating materials to our sites.
Our 2026 production plan for the McArthur River/Key Lake operation has not been impacted by this disruption. Cigar Lake mine was not impacted and continues to operate. Our consolidated 2026 production outlook remains unchanged at 19.5 million to 21.5 million pounds of U3O8 (our share).
Caution about forward-looking information
This news release includes statements and information about expectations for the future, which are referred to as forward-looking information. This forward-looking information is based on current views, which can change significantly, and actual results and events may be significantly different from what is currently expected. Examples of forward-looking information in this news release include: statements regarding our 2026 consolidated production outlook and production plan; the uncertainty of the timing to restore access to our primary supply route; and the possibility of further road restrictions resulting in delays in future deliveries of operating materials. Material risks that could lead to different results in our 2026 production plan and outlook include: the risk of delays in restoring access to our primary supply route; delays in future delivery of operating materials due to spring thawing and precipitation events, or for other reasons; or other factors that prevent us from achieving the expected production plan and outlook. In presenting the forward-looking information, we have made material assumptions which may prove incorrect about our supply routes and our ability to deliver operating materials, and otherwise about our ability to meet our production plan and outlook. Other material risks and assumptions which may impact our 2026 production plan and outlook are described in greater detail in Cameco’s current annual information form and its most recent annual and subsequent quarterly management’s discussion and analysis. Forward-looking information is designed to help you understand management’s current views of our near-term and longer-term prospects, and it may not be appropriate for other purposes. Cameco will not necessarily update this information unless required by securities laws.
Profile
Cameco is one of the largest global providers of the uranium fuel needed to power a secure energy future. Our competitive position is based on our controlling ownership of the world’s largest high-grade reserves and low-cost operations, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan, Canada.
As used in this news release, the terms we, us, our, the Company and Cameco mean Cameco Corporation and its subsidiaries unless otherwise indicated.
Key Takeaways CCJ resumed full production after securing a secondary route for critical supply deliveries.Cameco said 2026 production plans remain intact despite the flood-related interruption.CCJ expects 19.5-21.5 million pounds of attributable uranium production in 2026. Cameco Corporation (CCJ - Free Report) has overcome a major logistics challenge in northern Saskatchewan and reinforced confidence in its annual output targets. Earlier this month, severe flooding in the region caused a partial collapse of the Smoothstone River Bridge, a vital transportation link for delivering supplies to the McArthur River and Key Lake sites. While the sites were not directly affected by floodwaters, Cameco had halted operations due to the impacted delivery of critical operating materials.
Cameco has now established a reliable flow of critical supplies through a secondary transportation route, enabling both operations to return to full production. The company remains in regular contact with Saskatchewan transportation authorities regarding restoration of the primary route.
Management emphasized that its 2026 production plans have not been affected by the interruption but cautioned that continued thawing and precipitation events could result in further road restrictions as seen in every spring season. This could cause delays in future deliveries of critical operating materials to its sites.
This resumption of operation is particularly important given the strategic role of McArthur River and Key Lake within Cameco’s production portfolio. During the company’s first-quarter 2026 earnings release, management projected uranium production of 14.0-16.5 million pounds from the McArthur River and Key Lake operations, with Cameco’s attributable share expected to total 10.0-11.5 million pounds.
Cigar Lake is expected to contribute 9.5-10.0 million pounds attributable to Cameco. The company expects consolidated attributable uranium production of 19.5-21.5 million pounds in 2026.
The successful restart is encouraging as Cameco had faced operational challenges in 2025. Production at McArthur River and Key Lake declined 26% year over year to 20.3 million pounds in 2025 due to development delays in transitioning to new mining areas and an unplanned shutdown at the Key Lake mill.
How Have Cameco’s Peers Fared So Far in 2026? Energy Fuels (UUUU - Free Report) produced 790,000 pounds of finished uranium in the first quarter of 2026 and attained 1 million pounds in April. Energy Fuels expects uranium mining output to reach 2-2.5 million pounds in 2026 compared with the 1.6 million pounds of uranium produced in 2025.
Energy Fuels expects to process 1.5-2.5 finished pounds of uranium this year.
Ur-Energy (URG - Free Report) is currently operating the Lost Creek project in south-central Wyoming, which has an annual capacity of 1.2 million pounds. Ur-Energy captured 110,314 pounds of uranium in the first quarter of 2026, a 48% year-over-year increase, reflecting improved flow rates following plant modifications and repairs. The company dried and packaged 95,599 pounds and shipped 103,956 pounds of uranium in the quarter.
CCJ’s Price Performance, Valuation & EstimatesCameco shares have gained 89.5% in a year compared with the industry’s 30.7% growth.
Image Source: Zacks Investment Research
CCJ stock is trading at a forward price-to-sales ratio of 19.00 compared with the industry’s 5.33.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2026 indicates year-over-year growth of 28.2%. The same for 2027 implies growth of 59.2%.
Image Source: Zacks Investment Research
While the consensus estimate for 2026 earnings has moved down over the past 60 days, the same for 2027 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ready to reload your portfolio with something other than another overpriced AI technology stock? If so, you're not alone. The artificial intelligence opportunity is real, but stepping into its most obvious names here feels... uncomfortable.
Fortunately, there are safer, more affordably priced ways to plug into it. Nuclear power play Cameco (CCJ +2.00%) is one of them.
Image source: Getty Images.
What's Cameco? Simply put, Saskatchewan-based Cameco is one of the world's biggest providers of uranium used to generate nuclear power. It sold 33 million pounds of the stuff last year, preparing it for use after it was retrieved from several mines. The company is also a minority owner of Westinghouse, which builds and services nuclear power plants. Cameco did nearly $3.5 billion worth of business last year, up 11% year over year, turning $590 million of that revenue into net income.
That's a snapshot of the company's recent results, anyway. Why should investors be willing to take a shot on its stock here and now?
1. The nuclear power business is poised for prolonged growth For years, it appeared the nuclear power industry was simply going to fade away, displaced by seemingly safer and more flexible renewable energy options like solar and wind. Those alternatives are still coming into their own. But driven by the artificial intelligence data center industry's insatiable demand for electricity, the world is falling back in love with nuclear power.
An outlook from the International Atomic Energy Agency puts things in perspective. As of early this year, it expects the planet's nuclear power capacity to grow by 160% from 2024 levels by 2050, in line with a forecast from the World Nuclear Association.
For further perspective, the World Nuclear Association reports that 75 reactors are currently under construction and another 120 are planned, versus the 440 that are up and running right now.
2. Cameco is the biggest supplier on this side of the planet Cameco isn't the biggest name in the business. In some respects, however, it's the largest accessible source of enriched uranium used by a huge number of nuclear power facilities. The only supplier that's bigger is Russia's Rosatom, which has access to a massive source of raw uranium in the nearby country of Kazakhstan. This supply is largely locked up by logistical and geopolitical hurdles, however, leaving Cameco to serve as the chief supplier of enriched uranium in this half of the world.
3. The stock is undervalued Finally, buy Cameco stock like there's no tomorrow just because it's undervalued.
Today's Change
(
2.00
%) $
1.98
Current Price
$
100.95
Some investors might disagree with this assessment. Shares of this nuclear name are up nearly 80% over the past 12 months and up almost 300% over the past three years, as investors have gradually realized the immediate and massive power needs of artificial intelligence data centers. The stock's also suspiciously gone nowhere since early this year.
Just know that analysts aren't deterred. Most of them rate this ticker a buy (or better) right now, with a consensus price target of $131.78, which is nearly 20% above the stock's current price.
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Cameco (TSX: CCO; NYSE: CCJ) and Orano Canada Inc. (Orano) have reached agreement with TEPCO Resources Inc. (TEPCO) to acquire TEPCO’s 5% participating interest in the Cigar Lake Joint Venture. Upon closing, Cameco’s ownership stake in the Cigar Lake uranium mine in northern Saskatchewan will increase by 2.871 percentage points to 57.418%, while Orano’s share will rise by 2.129 percentage points to 42.582%.
“Cigar Lake is among the world’s best uranium mines, producing the highest-grade uranium ore from a safe, reliable, and cost-effective operation,” said Cameco’s Chief Executive Officer Tim Gitzel. “Increasing our ownership in this world-class, tier-one asset further demonstrates our commitment to our strategy, with scarce, licensed, permitted assets like Cigar Lake playing an essential role in fueling global ambitions to expand nuclear energy generation. Cigar Lake’s success wouldn’t be possible without supportive neighbouring Indigenous communities, which provide vital workforce and supply chain support through our mutually beneficial partnerships.”
Cameco’s purchase cost to acquire our respective share of TEPCO’s interest in Cigar Lake is approximately $115.75 million, subject to customary closing adjustments. The acquisition is subject to certain regulatory approvals and other standard closing conditions. The transaction is expected to close in the third quarter of 2026.
Cigar Lake’s reserve and resource base includes proven and probable reserves estimated at 172.4 million pounds of U3O8, measured and indicated resources of approximately 26.3 million pounds, and inferred resources of 20.0 million pounds (100% basis, as of December 31, 2025). Since the time it began production in 2014, Cigar Lake has produced approximately 174.5 million packaged pounds (100% basis, as of December 31, 2025).
Our 2026 production outlook for the Cigar Lake mine is between 17.5 million and 18 million pounds of uranium concentrate (U3O8) on a 100% basis. In 2026, we plan to continue production and development activities in the area currently being mined (CLMain), while continuing to advance the development work related to Cigar Lake extension (CLExt) that is required to extend the life of the mine to 2036. Planned capital projects related to CLExt include construction of a freeze pad, freeze distribution, and underground infrastructure, with capital investments at Cigar Lake remaining consistent and aligned with our disciplined contracting, operational and capital allocation strategy.
Cigar Lake proven and probable mineral reserves
PROVEN
PROBABLE
TOTAL MINERAL RESERVES
MINING
GRADE
CONTENT
GRADE
CONTENT
GRADE
CONTENT
METALLURGICAL
PROPERTY
METHOD
TONNES
% U3O8
(LB U3O8)
TONNES
% U3O8
(LB U3O8)
TONNES
% U3O8
(LB U3O8)
RECOVERY (%)
Cigar Lake
UG
263.7
17.06
99.2
215.3
15.43
73.2
479.0
16.33
172.4
98.9
Cigar Lake measured, indicated and inferred mineral resources
MEASURED RESOURCES (M)
INDICATED RESOURCES (I)
TOTAL M+I
INFERRED RESOURCES
GRADE
CONTENT
GRADE
CONTENT
CONTENT
GRADE
CONTENT
PROPERTY
TONNES
% U3O8
(LB U3O8)
TONNES
% U3O8
(LB U3O8)
(LB U3O8)
TONNES
% U3O8
(LB U3O8)
Cigar Lake
82.3
5.00
9.1
153.8
5.07
17.2
26.3
163.4
5.55
20.0
Please see pages 97 and 98 of Cameco’s 2025 annual information form for the key assumptions, parameters and methods used to estimate the Cigar Lake mineral reserves and resources.
Qualified Persons
The technical and scientific information discussed in this document for Cigar Lake was approved by the following individuals who are qualified persons for the purposes of NI 43-101:
Kirk Lamont, general manager, Cigar Lake, Cameco Scott Bishop, director, technical services, Cameco Caution about Forward-Looking Information
This news release includes statements and information about our expectations for the future, which we refer to as forward-looking information. Forward-looking information is based on our current views, which can change significantly, and actual results and events may be significantly different from what we currently expect. Examples of forward-looking information in this news release include: our views regarding the grade of uranium ore produced from Cigar Lake; our views regarding the safety, reliability and cost-effectiveness of Cigar Lake operations; our views regarding Cigar Lake’s ability to support the global ambitions to increase nuclear energy generation; our expectations regarding closing adjustments to Cameco’s purchase price; whether regulatory approvals will be granted and closing conditions will be met within the expected timeframes; our expectations as to the closing date; the 2026 production outlook for Cigar Lake; the present estimate of proven and probable reserves and measured, indicated and inferred resources remaining at Cigar Lake; the continuation of production and development activities in CLMain; our plan to extend the mine life at Cigar Lake to 2036; our planned capital projects related to CLExt including construction of a freeze pad, freeze distribution, and underground infrastructure; and whether capital investments at Cigar Lake will remain consistent and aligned with our disciplined contracting, operational and capital allocation strategy. Material risks that could lead to different results include: failure to obtain regulatory approvals or meet closing conditions within the expected timeframes; unexpected changes in uranium supply, demand, long-term contracting and prices; the risk that we may not be able to implement our planned production and development activities in CLMain, our development work related to CLExt, or our planned capital projects related to CLExt; the risk that we may not be able to extend the life of mine to 2036; the risk that we may not be able to continue to align production decisions with market opportunities and our contract portfolio; the risk that the contracting, operational and capital allocation strategy we are pursuing may prove unsuccessful, or that we may not be able to execute it successfully; the risk of disruption to operations at Cigar Lake or the McClean Lake mill for technical, regulatory or labour reasons; and the risk of disruptions to power, communication services and road access due to floods or wildfires. In presenting the forward-looking information, we have made material assumptions which may prove incorrect about: timeframes to obtain regulatory approvals and meet closing conditions; uranium supply, demand, long-term contracting and prices; the market conditions and other factors upon which we have based our future plans and forecasts; the success of our plans and strategies, including CLExt and planned capital projects; the absence of new and adverse government regulations, policies or decisions; that there will not be any disruption to operations at Cigar Lake or the McClean Lake mill for technical, regulatory or labour reasons; and that there will not be disruptions to power, communication services and road access due to floods or wildfires. Please also review the discussion in our 2025 annual MD&A and most recent annual information form for other material risks that could cause actual results to differ significantly from our current expectations, and other material assumptions we have made. Forward-looking information is designed to help you understand management’s current views of our near-term and longer-term prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.
Profile
Cameco is one of the largest global providers of the uranium fuel needed to power a secure energy future. Our competitive position is based on our controlling ownership of the world’s largest high-grade reserves and low-cost operations, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan, Canada.
As used in this news release, the terms we, us, our, the Company and Cameco mean Cameco Corporation and its subsidiaries unless otherwise indicated.
Key Takeaways CCJ will buy part of TEPCO's 5% Cigar Lake interest for $115.75M, lifting ownership to 57.418%.Cigar Lake holds 172.4M pounds of proven and probable uranium reserves and produced 19.1M pounds in 2025.Cameco gains more exposure to a key uranium asset as nuclear energy demand and energy security focus grow. Cameco Corporation (CCJ - Free Report) has announced plans to increase its ownership stake in Cigar Lake to 57.418%. Located in northern Saskatchewan, Canada, Cigar Lake is widely recognized for its exceptionally high-grade ore body and long reserve life, making it one of the most valuable uranium mines globally.
Under the agreement, Cameco will acquire a portion of TEPCO’s 5% interest in Cigar Lake for $115.75 million, subject to customary closing adjustments. The transaction is expected to close in the third quarter of 2026, subject to fulfillment of closing conditions. This will take Cameco’s ownership in the mine from the current 54.547% to 57.418%. The remaining TEPCO’s stake will be acquired by Orano, which will then hold the remaining 42.582% in Cigar Lake.
The additional stake will provide Cameco greater exposure to Cigar Lake’s substantial resource base, which currently includes 172.4 million pounds of proven and probable uranium reserves, along with additional measured, indicated and inferred resources. The mine has been in operation since 2014 and has produced approximately 174.5 million pounds of uranium concentrate through the end of 2025.
In 2025, the mine produced 19.1 million pounds on 100% basis, with Cameco’s share at 10.4 million pounds. The mine is expected to produce between 17.5 million and 18 million pounds in 2026, on a 100% basis.
Operationally, the focus in 2026 will remain on mining activities within the current production area, known as CLMain, while advancing development work associated with the Cigar Lake Extension (CLExt) project.
The move comes at a time when the uranium industry is benefiting from renewed global interest in nuclear energy. Governments worldwide are increasingly embracing nuclear power as a reliable source of low-carbon electricity and a critical component of long-term energy security strategies.
As one of the world's largest uranium fuel suppliers, Cameco is well-positioned to capitalize on this trend. Its competitive advantages include ownership in the world's largest high-grade uranium mine and mill (McArthur River mine and Key Lake mill) and world’s highest-grade uranium mine (Cigar Lake) and strategic investments throughout the nuclear fuel cycle. These include interests in Westinghouse Electric Company and Global Laser Enrichment, which broaden the company's exposure beyond uranium mining.
In this environment, increasing ownership of a high-quality, low-cost uranium asset such as Cigar Lake could provide meaningful long-term value as demand for nuclear fuel continues to rise.
Other companies that stand to benefit from the nuclear energy and uranium investment theme include Energy Fuels (UUUU - Free Report) and Centrus Energy (LEU - Free Report) . Energy Fuels has produced nearly two-thirds of all uranium in the United States since 2017. It also produces rare earth oxides and adds new products like titanium, zircon minerals and medical isotopes.
Centrus Energy’s core offering is low-enriched uranium, or LEU, the fissile component used to fuel commercial nuclear reactors. The company also provides advanced uranium enrichment and technical, manufacturing and engineering services. It is pioneering the production of High Assay Low-Enriched Uranium (HALEU), a specialized fuel expected to support the next generation of advanced nuclear reactors and growing global demand for carbon-free power.
CCJ’s Price Performance, Valuation & EstimatesCameco shares have gained 88.6% in a year compared with the industry’s 24.6% growth.
Image Source: Zacks Investment Research
CCJ stock is trading at a forward price-to-sales ratio of 19.31 compared with the industry’s 5.33.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2026 indicates year-over-year growth of 28.2%. The same for 2027 implies growth of 59.2%.
Image Source: Zacks Investment Research
While the consensus estimate for 2026 earnings has moved down over the past 60 days, the same for 2027 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 02, 2026, Cameco Corp CCJ shares surged 7.0%, closing at $120.51. This increase comes amid a 52-week range where the stock has oscillated between $58.18 and $135.24, reflecting significant volatility and investor interest.
GF Value™ verdict: Current price is $120.51, compared to GF Value of $67.68, indicating the stock is 78.1% overvalued.GF Score™: 82/100, classified as Strong, suggesting solid fundamentals and potential for long-term returns.Most notable signal: CCJ has seen no insider transactions in the last 3 months, indicating a lack of insider confidence or a neutral stance from management. Is CCJ Overvalued or Undervalued? The current trading price of Cameco Corp CCJ at $120.51 stands significantly above its GF Value™ of $67.68, suggesting that the stock is overvalued by approximately 78.1%. This high valuation is a concern, as it may indicate that investors are paying a premium for the stock without sufficient justification based on intrinsic value metrics. The GF Valuation label categorizes CCJ as significantly overvalued, which raises the risk of a potential correction if the market adjusts to align with the company's intrinsic value.
A margin of safety is crucial for any investment, and with CCJ's current valuation far exceeding its estimated fair value, investors may need to exercise caution. While the stock's historical performance has been strong, with a year-to-date increase of 31.7% and a remarkable 107.5% rise over the past year, the high valuation presents a risk that could deter long-term investment.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does CCJ's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 111.0x 111.9x Forward P/E 105.4x N/A Currently, CCJ is trading at a P/E (TTM) of 111.0x, which is slightly below its 5-year median P/E of 111.9x. The forward P/E of 105.4x suggests a slightly lower valuation expectation moving forward. This P/E analysis aligns with the GF Value™ verdict of overvaluation, supporting the notion that the stock is trading at a premium compared to its historical valuation metrics.
What Does CCJ's GF Score™ Tell Us? The GF Score™ ranks stocks based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. CCJ's scores are as follows:
Metric Rating GF Score™ 82 Financial Strength 8/10 Profitability 6/10 Growth 9/10 Valuation 3/10 Momentum 9/10 CCJ’s GF Score™ of 82 indicates strong fundamentals, particularly in areas of Financial Strength (8/10) and Growth (9/10). However, the Valuation rank of 3/10 highlights significant concerns regarding the high current price relative to its intrinsic value. The Momentum score of 9/10 suggests that the stock has been performing well in recent trading periods, which may be attracting more attention from investors despite the overvaluation risk.
What Are Insiders Doing with CCJ Stock? In the past three months, there have been no insider transactions reported for Cameco Corp CCJ . This lack of activity can imply several things: it may indicate that insiders are confident in the company's prospects and do not see the need to adjust their holdings, or it could suggest a neutral stance on the stock's future performance. The absence of buying or selling activity from insiders generally provides little guidance for potential investors regarding management's outlook on the stock.
What This Means for Investors Based on the GF Value™ assessment, Cameco Corp CCJ is currently overvalued. While the company shows strong growth potential and solid financial strength, the significant disparity between the stock price and its intrinsic value represents a risk for potential investors.
For the complete analysis, visit the Cameco Corp CCJ stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CCJ's GF Score™?
The GF Score™ for Cameco Corp CCJ is 82/100, indicating strong fundamentals and potential for long-term returns.
Is CCJ overvalued or undervalued?
Cameco Corp CCJ is currently overvalued, with a GF Value™ of $67.68 compared to its trading price of $120.51.
What is CCJ's P/E ratio?
The P/E (TTM) ratio for CCJ is 111.0x, which is slightly below its 5-year median P/E of 111.9x, indicating that the stock is trading close to its historical valuation.
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].
In the latest trading session, Cameco (CCJ - Free Report) closed at $103.44, marking a -9.28% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 2.65%. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 4.18%.
Shares of the uranium producer witnessed a loss of 3.95% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 3.06%, and the S&P 500's gain of 5.47%.
The upcoming earnings release of Cameco will be of great interest to investors. On that day, Cameco is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 29.41%. Simultaneously, our latest consensus estimate expects the revenue to be $534.36 million, showing a 15.69% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.31 per share and revenue of $2.39 billion, indicating changes of +27.18% and -4.07%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cameco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.92% increase. Right now, Cameco possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Cameco is presently trading at a Forward P/E ratio of 86.93. This denotes a premium relative to the industry average Forward P/E of 17.69.
We can also see that CCJ currently has a PEG ratio of 1.93. 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. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 105, this industry ranks in the top 44% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Cameco (CCJ - 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 uranium producer have returned -17.7% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Alternative Energy - Other industry, to which Cameco belongs, has lost 10.3% 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.
Earnings Estimate RevisionsHere 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.
Cameco is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of -29.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
The consensus earnings estimate of $1.31 for the current fiscal year indicates a year-over-year change of +27.2%. This estimate has changed -0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.1 indicates a change of +59.9% from what Cameco is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
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 Cameco.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Cameco, the consensus sales estimate of $534.36 million for the current quarter points to a year-over-year change of -15.7%. The $2.39 billion and $2.69 billion estimates for the current and next fiscal years indicate changes of -4.1% and +12.7%, respectively.
Last Reported Results and Surprise HistoryCameco reported revenues of $616.01 million in the last reported quarter, representing a year-over-year change of +12.1%. EPS of $0.34 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $494.94 million, the reported revenues represent a surprise of +24.46%. The EPS surprise was +17.24%.
Over the last four quarters, Cameco surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cameco is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cameco. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways U.S. consumer sentiment hit a record low amid inflation spikes and Middle East conflict concerns.ATO, ED, NWN, BGS and SFD show earnings estimate upgrades and low-beta defensive appeal.Global oil prices jumped over 30%, while inflation expectations climbed sharply in April. Americans are worried about the economy’s health as uncertainty over an end to the U.S.-Iran conflict and soaring inflation are dampening their sentiment. Consumer sentiment hit an all-time low in April as disruptions in shipping at the Strait of Hormuz saw prices of not only oil rise but also several other commodities surge over the past month.
Also, inflation rose in March to its highest level in nearly a year, dashing hopes of a rate cut by the Federal Reserve anytime soon. We, thus, recommend buying five defensive stocks from the utility and consumer staples sectors, namely, Atmos Energy Corporation (ATO - Free Report) , Consolidated Edison, Inc. (ED - Free Report) , Northwest Natural Holding Company (NWN - Free Report) , B&G Foods, Inc. (BGS - Free Report) and Smithfield Foods, Inc. (SFD - Free Report) .
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consumer Sentiment Plunges to Record LowThe University of Michigan reported that its Consumer Sentiment Index dropped to a final reading of 49.8 in April, plunging to an all-time low. Although the final reading was a slight improvement from the preliminary reading of 47.6, the economic outlook looks grim.
The marginal improvement came after the United States announced a two-week ceasefire in the Iran war. However, the ceasefire has looked fragile, and negotiations have failed, raising concerns over a peace deal anytime soon.
Global oil prices have surged more than 30% since the beginning of the Middle East conflict. Disruptions in ships passing the Strait of Hormuz have also seen a surge in prices of other key commodities, including fertilizers, petrochemicals, semiconductors and aluminum.
Also, the consumer expectations for inflation over the next 12-month period climbed to 4.7% in April from 3.8% in the prior month. Consumers’ long-term expectations for inflation jumped to 3.5% this month from 3.2% reported in March.
Inflation has been a recurring issue for both consumers and the Federal Reserve. The consumer price index (CPI) surged 0.9% sequentially in March from February’s jump of 2.4%, the Commerce Department reported last week. This takes the annual inflation rate to 3.3% and, the highest level since May 2024.
High inflation has posed a major challenge for the Federal Reserve, compelling it to keep interest rates unchanged this year. Investors now fear that there could be no rate cuts this year.
5 Low-Beta Defensive Stocks With Growth PotentialAtmos Energy CorporationAtmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.3 million customers in more than 1,400 communities across eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy operates more than 73,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines.
Atmos Energy has an expected earnings growth rate of 11% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 60 days. ATO currently has a Zacks Rank of 2, a beta of 0.69 and a current dividend yield of 2.16%.
Consolidated EdisonConsolidated Edison, Inc. is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. ED’s regulated businesses operate through its subsidiaries — Consolidated Edison Company of New York, Orange and Rockland Utilities, Con Edison Clean Energy Businesses, Inc., and Con Edison Transmission, Inc.
Consolidated Edison has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 60 days. ED presently has a Zacks Rank #2. Consolidated Edison has a beta of 0.34 and a current dividend yield of 3.26%.
Northwest Natural Holding CompanyNorthwest Natural Holding Company builds and maintains natural gas distribution systems, as well as invests in natural gas pipeline projects through its subsidiaries. NWN serves residential, commercial and industrial customers primarily in the United States, Canada and the Service Territory.
Northwest Natural Holding Company has an expected earnings growth rate of 4.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 60 days. Zacks Rank 2 NWN has a beta of 0.50 and a current dividend yield of 3.69%.
B&G FoodsB&G Foods, Inc. boasts of a diversified portfolio of more than 45 brands, including B&G, B&M, Cream of Wheat, Las Palmas, Mama Mary's, Maple Grove Farms, Mrs. Dash, New York Style, Ortega, Pirate's Booty, Polaner, SnackWell's, Spice Islands and Victoria. Many of these brands hold leading market shares in different regions. BGS frequently engages in acquisitions and innovations to further strengthen its portfolio.
B&G Foods has an expected earnings growth rate of 5.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8% over the last 60 days. Zacks Rank 2 B&G Food has a beta of 0.46 and a current dividend yield of 14.21%.
Smithfield FoodsSmithfield Foods, Inc. is a pork producer and food-processing company. SFD is based in Smithfield, VA.
Smithfield Foods has an expected earnings growth rate of 7.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.8% over the last 60 days. Currently, Smithfield Foods carries a Zacks Rank 1. It has a dividend yield of 4.26%.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Consolidated Edison (ED - Free Report) is headquartered in New York, and is in the Utilities sector. The stock has seen a price change of 9.81% since the start of the year. Currently paying a dividend of $0.89 per share, the company has a dividend yield of 3.26%. In comparison, the Utility - Electric Power industry's yield is 2.74%, while the S&P 500's yield is 1.39%.
Looking at dividend growth, the company's current annualized dividend of $3.55 is up 4.4% from last year. Over the last 5 years, Consolidated Edison has increased its dividend 5 times on a year-over-year basis for an average annual increase of 2.28%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Con Ed's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ED for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.07 per share, which represents a year-over-year growth rate of 6.49%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that ED is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Consolidated Edison (ED - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on May 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis utility is expected to post quarterly earnings of $2.32 per share in its upcoming report, which represents a year-over-year change of +3.1%.
Revenues are expected to be $4.95 billion, up 3.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.51% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Con Ed?For Con Ed, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.82%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Con Ed will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Con Ed would post earnings of $0.84 per share when it actually produced earnings of $0.89, delivering a surprise of +5.95%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Con Ed doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Utility - Electric Power industry, Exelon (EXC - Free Report) , is soon expected to post earnings of $0.89 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -3.3%. This quarter's revenue is expected to be $6.91 billion, up 2.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Exelon has been revised 9.8% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.19%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Exelon will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street analysts forecast that Consolidated Edison (ED - Free Report) will report quarterly earnings of $2.32 per share in its upcoming release, pointing to a year-over-year increase of 3.1%. It is anticipated that revenues will amount to $4.95 billion, exhibiting an increase of 3.1% compared to the year-ago quarter.
Over the last 30 days, there has been an upward revision of 3.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Con Ed metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Operating revenues- O&R' reaching $368.83 million. The estimate points to a change of +3.6% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Operating revenues- CECONY' of $4.57 billion. The estimate suggests a change of +2.8% year over year.
Analysts expect 'Operating Income- O&R' to come in at $67.50 million. Compared to the current estimate, the company reported $62.00 million in the same quarter of the previous year.
Analysts forecast 'Operating Income- CECONY' to reach $1.10 billion. Compared to the present estimate, the company reported $1.07 billion in the same quarter last year.
View all Key Company Metrics for Con Ed here>>>
Con Ed shares have witnessed a change of -4.4% in the past month, in contrast to the Zacks S&P 500 composite's +9.5% move. With a Zacks Rank #3 (Hold), ED is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
, /PRNewswire/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2026 first quarter net income for common stock of $924 million or $2.55 a share compared with $791 million or $2.26 a share in the 2025 first quarter. Adjusted earnings (non-GAAP) were $790 million or $2.18 a share in the 2026 period compared with $792 million or $2.26 a share in the 2025 period. Adjusted earnings and adjusted earnings per share in the 2026 period exclude transaction costs associated with the strategic alternatives review of Con Edison's equity investments in Mountain Valley Pipeline, LLC (MVP) and Honeoye Storage Corporation (Honeoye) and the gain on the sale of Con Edison's equity interest in MVP. Adjusted earnings and adjusted earnings per share in the 2026 and 2025 periods exclude accretion of the basis difference of Con Edison's equity interest in MVP. Adjusted earnings and adjusted earnings per share in the 2025 period exclude the effects of hypothetical liquidation at book value (HLBV) accounting for tax equity investments.
"Our first-quarter results reflect the strength and durability of our regulated businesses, with reaffirmed adjusted earnings per share guidance driven by continued operational excellence and industry-leading reliability," said Tim Cawley, Chairman and CEO of Con Edison. "We deliver essential energy services to the nation's largest and most economically significant market, and the performance of our system underscores the value of disciplined investment.
"Electrification of heating and transportation is accelerating at an unprecedented pace, driven by years of state and local policy that have been reinforced by strong customer preference and sustained economic growth in our region," Cawley added. "We are investing proactively to meet this growth - building new substations, maintaining robust design standards in our networks and fortifying our system against extreme weather - while managing costs and supporting affordability. Our dedicated team, technical expertise, operational efficiency, and investment strategy continue to drive long-term value for our investors, customers and communities."
"As our customers adopt cleaner energy technologies, we remain focused in 2026 on delivering value for customers and shareholders through disciplined execution of our three-year investment plan at Con Edison of New York," said Kirk Andrews, Senior Vice President and CFO. "We are making infrastructure investments across both utilities to ensure our system remains resilient and reliable as demand grows, while we continue to manage costs and deliver projects on budget.
"Based on our results for the quarter and outlook for the remainder of the year we are reaffirming our Adjusted EPS guidance range for 2026," Andrews added. "During the first quarter, we settled a forward sale agreement for 7 million shares of common stock, generating proceeds to support investment in our energy systems. We also completed the sale of our interest in Mountain Valley Pipeline, LLC for total consideration of $357.5 million."
For the year of 2026, Con Edison reaffirmed its adjusted earnings per share (non-GAAP) to be in the range of $6.00 to $6.20 per share. Adjusted earnings per share excludes the gain on the sale of Con Edison's equity interest in MVP ($(0.37) a share after-tax), accretion of the basis difference of Con Edison's equity interest in MVP ($(0.01) a share after-tax), transaction costs associated with the strategic alternatives review of Con Edison's equity investments in MVP and Honeoye and HLBV accounting for tax equity investments, the amount of which will not be determinable until year-end. Accordingly, the company is unable to provide equivalent measures determined in accordance with generally accepted accounting principles in the United States of America (GAAP).
CON EDISON REPORTS 2026 FIRST QUARTER EARNINGS
See Attachment A to this press release for a reconciliation of Con Edison's reported earnings per share to adjusted earnings per share and reported net income for common stock to adjusted earnings for the three months ended March 31, 2026 and 2025. See Attachment B for the estimated effect of major factors resulting in variations in earnings per share and net income for common stock for the three months ended March 31, 2026 compared to the 2025 period.
The company's 2026 First Quarter Form 10-Q is being filed with the Securities and Exchange Commission. A first quarter 2026 earnings release presentation will be available at www.conedison.com. (Select "For Investors" and then select "Press Releases.")
CON EDISON REPORTS 2026 FIRST QUARTER EARNINGS
This press release contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "goal," "consider" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time.
Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports Con Edison has filed with the Securities and Exchange Commission, including that Con Edison's subsidiaries are extensively regulated and may be subject to substantial penalties; its utility subsidiaries' rate plans may not provide a reasonable return; it may be adversely affected by changes to the utility subsidiaries' rate plans; the failure of, or damage to, its subsidiaries' facilities could adversely affect it; a cyber attack could adversely affect it; artificial intelligence is an emerging area of technology that has the potential to impact various aspects of its and its subsidiaries' business operations and customer interactions; the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect it; it is exposed to risks from the environmental consequences of its subsidiaries' operations, including increased costs related to climate change; its ability to pay dividends or interest depends on dividends from its subsidiaries; changes to tax laws could adversely affect it; it requires access to capital markets to satisfy funding requirements; a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect it; it faces risks related to health epidemics and other outbreaks; its strategies may not be effective to address changes in the external business environment; it faces risks related to supply chain disruptions, inflation and the imposition of tariffs (or subsequent changes to tariffs once announced or implemented); and it also faces other risks that are beyond its control. This list of factors is not all-inclusive because it is not possible to predict all factors that could cause actual results or developments to differ from the forward-looking statements. Con Edison assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This press release also contains financial measures, adjusted earnings and adjusted earnings per share, that are not determined in accordance with GAAP. These non-GAAP financial measures should not be considered as an alternative to net income for common stock or net income per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted earnings and adjusted earnings per share exclude from net income for common stock and net income per share, respectively, certain items that Con Edison does not consider indicative of its ongoing financial performance such as the effects of HLBV accounting for tax equity investments and accretion of the basis difference of Con Edison's equity interest in MVP, transaction costs associated with the strategic alternatives review of Con Edison's equity investments in MVP and Honeoye and the gain on the sale of Con Edison's equity interest in MVP. Management uses these non-GAAP financial measures to facilitate the analysis of Con Edison's financial performance as compared to its internal budgets and previous financial results and to communicate to investors and others Con Edison's expectations regarding its future earnings and dividends on its common stock. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of Con Edison's financial performance.
CON EDISON REPORTS 2026 FIRST QUARTER EARNINGS
Consolidated Edison, Inc. is a holding company that provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric service in New York City and New York's Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan; Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile area in southeastern New York State and northern New Jersey; and Con Edison Transmission, Inc., a regulated company primarily under the oversight of the Federal Energy Regulatory Commission, that develops and invests in electric transmission projects and owns interests in both electric and gas assets.
Attachment A
For the Three Months Ended
March 31,
Earnings
per Share
Net Income for
Common Stock
(Millions of Dollars)
2026
2025
2026
2025
Reported earnings per share (basic) and net income for common stock (GAAP basis)
$2.55
$2.26
$924
$791
Accretion of the basis difference of Con Edison's equity investment in
MVP (pre-tax)
(0.01)
(0.01)
(3)
(3)
Income taxes (a)
—
—
1
1
Accretion of the basis difference of Con Edison's equity investment in MVP
(net of tax)
(0.01)
(0.01)
(2)
(2)
Transaction costs associated with the strategic alternatives review of
Con Edison's equity investments in MVP and Honeoye (pre-tax)
0.01
—
3
—
Income taxes (b)
—
—
(1)
—
Transaction costs associated with the strategic alternatives review of Con
Edison's equity investments in MVP and Honeoye (net of tax)
0.01
—
2
—
Gain on the sale of Con Edison's equity interest in MVP (pre-tax)
(0.52)
—
(189)
—
Income taxes (c)
0.15
—
55
—
Gain on the sale of Con Edison's equity interest in MVP (net of tax)
(0.37)
—
(134)
—
HLBV effects (pre-tax)
—
0.01
—
4
Income taxes (d)
—
—
—
(1)
HLBV effects (net of tax)
—
0.01
—
3
Adjusted earnings per share and adjusted earnings (non-GAAP basis)
$2.18
$2.26
$790
$792
(a)
The amount of income taxes was calculated using a combined federal and state income tax rate of 25% for the three months ended March 31, 2026 and 21% for the three months ended March 31, 2025.
(b)
The amount of income taxes was calculated using a combined federal and state income tax rate of 26% for the three months ended March 31, 2026.
(c)
The amount of income taxes was calculated using a combined federal and state income tax rate of 29% for the three months ended March 31, 2026.
(d)
The amount of income taxes was calculated using a combined federal and state income tax rate of 23% for the three months ended March 31, 2025.
Attachment B
Variation for the Three Months Ended March 31, 2026 vs. 2025
Net Income for
Common Stock
(Net of Tax)
(Millions of
Dollars)
Earnings
per Share
CECONY (a)
Higher electric rate base
$15
$0.04
Higher gas rate base
14
0.04
Higher income from allowance for funds used during construction
2
0.01
Higher electric, gas and steam operations and maintenance expense
(28)
(0.08)
Higher interest expense on long-term debt
(9)
(0.03)
Higher corporate expenses
(5)
(0.01)
Dilutive effect of issuance of common shares
—
(0.08)
Other
(1)
—
Total CECONY
(12)
(0.11)
O&R (a)
Electric base rate increase
5
0.01
Gas base rate increase
3
0.01
Higher interest expense on long-term debt
(3)
(0.01)
Other
2
—
Total O&R
7
0.01
Con Edison Transmission
Gain on the sale of Con Edison's equity interest in MVP
134
0.37
Transaction costs associated with the strategic alternatives review of Con Edison's equity
investments in MVP and Honeoye
(2)
(0.01)
Other
1
0.01
Total Con Edison Transmission
133
0.37
Other, including parent company expenses (b)
HLBV effects
3
0.01
Other
2
0.01
Total Other, including parent company expenses
5
0.02
Total Reported (GAAP basis)
$133
$0.29
Gain on the sale of Con Edison's interest in MVP
(134)
(0.37)
HLBV effects
(3)
(0.01)
Transaction costs associated with the strategic alternatives review of Con Edison's equity
investments in MVP and Honeoye
2
0.01
Total Adjusted (Non-GAAP basis)
$(2)
$(0.08)
(a)
Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The Utilities' gas and CECONY's steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison's results of operations.
(b)
Other includes the parent company, Con Edison's tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025.
Electrical transmission towers, poles and lines are shown in the early morning of a hot summer day in Commerce, California, U.S, August 7, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
May 7 (Reuters) - Consolidated Edison (ED.N), opens new tab reported a rise in first-quarter profit on Thursday, helped by robust demand for its electricity, gas and steam services amid freezing temperatures across the U.S.
Electricity demand in the nation is rising at an unprecedented pace, with the U.S. Energy Information Administration forecasting power consumption will reach fresh record highs this year.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
Meanwhile, an Arctic Blast and a winter storm spread a paralyzing mix of heavy snow, sleet and freezing rain across most of the eastern U.S., raising demand for electricity and natural gas, which is used as heating fuel.
Consolidated Edison's service territories are spread across New York, New Jersey and Westchester County.
"Electrification of heating and transportation is accelerating at an unprecedented pace," CEO Tim Cawley said, adding that the company was investing proactively to meet this growth while managing costs and supporting affordability.
The company expects to make capital investments of about $6.59 billion in 2026 and $6.76 billion in 2027.
Consolidated Edison's total operating revenue rose to $5.09 billion during the first quarter, up from $4.79 billion a year earlier, driven primarily by higher gas and steam revenues.
Electric revenues also rose 4.7% to $3.04 billion during the quarter.
The New York-based utility's net income climbed to $924 million for the three months ended March 31, from $791 million a year earlier.
Reporting by Vallari Srivastava in Bengaluru; Editing by Sahal Muhammed
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Consolidated Edison (ED - Free Report) came out with quarterly earnings of $2.17 per share, missing the Zacks Consensus Estimate of $2.32 per share. This compares to earnings of $2.25 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -6.63%. A quarter ago, it was expected that this utility would post earnings of $0.84 per share when it actually produced earnings of $0.89, delivering a surprise of +5.95%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Con Ed, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $5.1 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.98%. This compares to year-ago revenues of $4.8 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Con Ed shares have added about 7.6% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Con Ed?While Con Ed has performed in line with the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Con Ed was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $3.73 billion in revenues for the coming quarter and $6.07 on $17.34 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AES (AES - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This power company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +85.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AES's revenues are expected to be $3.1 billion, up 6% from the year-ago quarter.
For the quarter ended March 2026, Consolidated Edison (ED - Free Report) reported revenue of $5.1 billion, up 6.2% over the same period last year. EPS came in at $2.17, compared to $2.25 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.95 billion, representing a surprise of +2.98%. The company delivered an EPS surprise of -6.63%, with the consensus EPS estimate being $2.32.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Con Ed performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating revenues- O&R: $441 million versus the two-analyst average estimate of $368.83 million. The reported number represents a year-over-year change of +23.9%.Operating revenues- CECONY: $4.65 billion versus $4.57 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.Operating Income- O&R: $76 million versus $67.5 million estimated by two analysts on average.Operating Income- CECONY: $1.11 billion versus $1.1 billion estimated by two analysts on average.View all Key Company Metrics for Con Ed here>>>
Shares of Con Ed have returned -5.9% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways ED Q1 adjusted EPS missed estimates, while revenues rose 6.2% year over year to $5.1 billion.Consolidated Edison completed the sale of its 6.6% stake in MVP for $357.5 million.ED reaffirmed 2026 adjusted EPS guidance of $6.00-$6.20 and plans $38B in investments. Consolidated Edison, Inc. (ED - Free Report) reported first-quarter 2026 adjusted earnings of $2.17 per share, which missed the Zacks Consensus Estimate of $2.32 by 6.6%. The bottom line declined 3.6% from $2.25 recorded in the prior-year quarter.
The company reported GAAP earnings of $2.55 per share, up from $2.26 recorded in the year-ago quarter.
ED’s Total RevenuesIn the reported quarter, Consolidated Edison's total operating revenues of $5.1 billion surpassed the Zacks Consensus Estimate of $4.95 billion by 3%. The top line increased 6.2% from $4.8 billion reported in the year-ago quarter.
ED’s Segmental Details Electric revenues totaled $3.04 billion, which increased 4.8% from the year-ago quarter’s figure of $2.9 billion.
Gas revenues amounted to $1.62 billion, which surged 5.2% from the year-ago quarter’s figure of $1.54 billion.
Steam revenues totaled $432 million, which rose 22% from the year-ago quarter’s figure of $354 million.
Non-utility revenues amounted to $1 million compared to nil revenues in the year-ago quarter.
ED: Highlights of the ReleaseTotal operating expenses in the first quarter increased 6.8% year over year to $3.92 billion.
Purchase power costs rose 4.9%. Other operations and maintenance expenses decreased 1.3%. Depreciation and amortization expenses jumped 1.4%. Taxes, other than income taxes, went up 9.3% year over year. Fuel expenses surged 48.8% year over year and the cost of gas purchased for resale rose 17.7%.
The company’s first-quarter operating income went up 4.6% year over year to $1.18 billion.
During the first quarter, the company completed the sale of its nearly 6.6% interest in Mountain Valley Pipeline, LLC (“MVP”) to the two founding members of MVP for total aggregate consideration of $357.5 million, before certain closing adjustments and expenses.
ED’s FinancialsCash and temporary cash investments as of March 31, 2026, totaled $0.15 billion compared with $1.63 billion as of Dec. 31, 2025.
The company’s long-term debt was $25.554 billion as of March 31, 2026, compared with $25.551 billion as of 2025-end.
Cash from operating activities in the first three months of 2026 amounted to $128 million compared with $763 million in the prior-year period.
ED’s 2026 GuidanceConsolidated Edison has reaffirmed its 2026 guidance. It expects adjusted earnings to be in the range of $6.00-$6.20 per share. The Zacks Consensus Estimate for 2026 earnings is pegged at $6.07 per share, which is lower than the midpoint of the company’s guided range.
The company expects capital investments of $38 billion during the 2026-2030 period.
ED’s Zacks RankConsolidated Edison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility ReleasesDuke Energy Corporation's (DUK - Free Report) first-quarter 2026 earnings of $1.93 per share surpassed the Zacks Consensus Estimate of $1.79 by 7.6%. The bottom line increased 9.7% from $1.76 reported in the year-ago quarter.
DUK’s total operating revenues were $9.18 billion, which beat the Zacks Consensus Estimate of $8.4 billion by 9%. The top line increased 11.3% from $8.25 billion in the year-ago period.
CMS Energy Corporation (CMS - Free Report) reported first-quarter 2026 earnings of $1.13 per share, which beat the Zacks Consensus Estimate of $1.11 by 1.8%. The bottom line also increased 10.8% from $1.02 in the prior-year quarter.
CMS’ operating revenues totaled $2.73 billion, which topped the Zacks Consensus Estimate of $2.53 billion by 8.1%. The top line also increased 11.6% from $2.45 billion in the prior-year quarter.
Edison International (EIX - Free Report) posted quarterly earnings of $1.42 per share, which beat the Zacks Consensus Estimate of $1.32 by 7.6%. The bottom line also increased 3.7% from $1.37 in the year-ago quarter.
Edison International's first-quarter operating revenues totaled $4.1 billion, which beat the Zacks Consensus Estimate of $3.99 billion by 2.8%. The top line increased 7.6% from the year-ago quarter’s figure of $3.81 billion.
, /PRNewswire/ -- Consolidated Edison, Inc. ("Con Edison") (NYSE: ED) today announced a $2 billion ATM equity offering program pursuant to which it may sell its common shares ($.10 par value). Con Edison has entered into an Equity Distribution Agreement (the "Equity Distribution Agreement") with Barclays Capital Inc., BNY Mellon Capital Markets, LLC, BofA Securities, CIBC Capital Markets, Jefferies LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC each in its capacity as agent for Con Edison (each, a "Sales Agent" and collectively, the "Sales Agents") and Barclays Bank PLC, The Bank of New York Mellon, Bank of America, N.A., Canadian Imperial Bank of Commerce, Jefferies LLC, JPMorgan Chase Bank, N.A., KeyBanc Capital Markets Inc., Mizuho Markets Americas LLC, The Bank of Nova Scotia, The Toronto-Dominion Bank and Wells Fargo Bank, National Association or their respective affiliates, each in its capacity as forward purchaser (each, a "Forward Purchaser" and collectively, the "Forward Purchasers").
Pursuant to the terms of the Equity Distribution Agreement, sales of Con Edison's common shares, if any, will be made in negotiated transactions, including block trades, or transactions that are deemed to be "at-the-market" offerings, by means of ordinary brokers' transactions at market prices prevailing at the time of sale, including sales made directly on the New York Stock Exchange LLC, sales made to or through a market maker and sales made through other securities exchanges or electronic communications networks or by any other method permitted by applicable law as otherwise agreed between the applicable Sales Agent and Con Edison.
In addition to the offering and sale of its common shares through the Sales Agents, Con Edison may enter into one or more separate forward sale agreements with the Forward Purchasers. In connection with each forward sale agreement, the relevant Forward Purchaser will, and at Con Edison's request, attempt to borrow from third parties and, through its relevant agent, sell a number of shares of common shares equal to the number of shares that underlie the related forward sale agreement (each of Barclays Capital Inc., BNY Mellon Capital Markets, LLC, BofA Securities, CIBC Capital Markets, Jefferies LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC, in its capacity as agent for the related Forward Purchaser, a "Forward Seller" and collectively, the "Forward Sellers").
Con Edison currently intends to use any proceeds that it receives upon the issuance and sale of its common shares by it to or through the Sales Agents to invest in its subsidiaries for funding of their capital requirements and for its other general corporate purposes. Con Edison will not initially receive any proceeds from the sale of borrowed shares of its common shares by the Forward Sellers, as agents for Forward Purchasers, in connection with any forward sale agreement as a hedge of such forward sale agreement. Con Edison currently intends to use any cash proceeds that it receives upon physical settlement of any forward sale agreement, if physical settlement applies, or upon cash settlement of such forward sale agreement, if Con Edison elects cash settlement, to invest in its subsidiaries for funding of their capital requirements and for its other general corporate purposes.
The offering is being made pursuant to Con Edison's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). The prospectus supplement and the base prospectus relating to the offering will be available on the SEC's website at http://www.sec.gov. Copies of the prospectus supplement and the base prospectus relating to the offering may be obtained from any Sales Agent participating in the offering: Barclays Capital Inc, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Email: [email protected], Phone: (888) 603-5847; BNY Mellon Capital Markets, LLC, 240 Greenwich Street, New York, New York 10286, Third Floor Equity Capital Markets, Fax No.: (212) 815-6403 with a copy to Attention: ATM Group, [email protected]; BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, Email: [email protected]; CIBC Capital Markets, 300 Madison Avenue, 8th Floor, New York, New York 10017, Phone: (416) 956-6378, Email: [email protected]; Jefferies LLC, 520 Madison Avenue, New York, New York 10022, Attention: Equity Syndicate Prospectus Department, Phone: (877) 821-7388, Email: [email protected]; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Email: [email protected] and [email protected]; KeyBanc Capital Markets Inc., 127 Public Square, 7th Floor, Cleveland, Ohio 44114, Attention: Equity Syndicate, Phone (800) 859-1783; Mizuho Securities USA LLC, 1271 Avenue of the Americas, 3rd Floor, New York, New York 10020, Attention: Equity Capital Markets, Email: [email protected]; Scotia Capital (USA) Inc., 250 Vesey Street, 24th Floor, New York, New York 10281, Attention: US ECM, Email: [email protected]; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Email: [email protected]; Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, Minnesota 55402, Phone: (800) 645-3751 (option #5), Email: [email protected].
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities will be made only by means of the prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the "Securities Act").
This press release contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "goal," "consider" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports Con Edison has filed with the SEC, including, but not limited to: its subsidiaries are extensively regulated and may be subject to substantial penalties; its utility subsidiaries' rate plans may not provide a reasonable return; it may be adversely affected by changes to the utility subsidiaries' rate plans; the failure of, or damage to, its subsidiaries' facilities could adversely affect it; a cyber attack could adversely affect it; artificial intelligence is an emerging area of technology that has the potential to impact various aspects of its and its subsidiaries' business operations and customer interactions; the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect it; it is exposed to risks from the environmental consequences of its subsidiaries' operations, including increased costs related to climate change; its ability to pay dividends or interest depends on dividends from its subsidiaries; changes to tax laws could adversely affect it; it requires access to capital markets to satisfy funding requirements; a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect it; it faces risks related to health epidemics and other outbreaks; its strategies may not be effective to address changes in the external business environment; it faces risks related to supply chain disruptions, inflation and the imposition of tariffs (or subsequent changes to tariffs once announced or implemented); and it also faces other risks that are beyond its control. This list of factors is not all-inclusive because it is not possible to predict all factors that could cause actual results or developments to differ from the forward-looking statements. Con Edison assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,300 square-mile area in southeastern New York State and northern New Jersey; and Con Edison Transmission, Inc., which through its subsidiaries, develops and invests in electric transmission projects and owns interests in both electric and gas assets.
The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Consolidated Edison (ED - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
Consolidated Edison is a member of our Utilities group, which includes 110 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Consolidated Edison is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ED's full-year earnings has moved 1.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ED has returned 6.9% so far this year. Meanwhile, stocks in the Utilities group have gained about 6.4% on average. This shows that Consolidated Edison is outperforming its peers so far this year.
One other Utilities stock that has outperformed the sector so far this year is Otter Tail (OTTR - Free Report) . The stock is up 10.5% year-to-date.
In Otter Tail's case, the consensus EPS estimate for the current year increased 4.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Consolidated Edison belongs to the Utility - Electric Power industry, a group that includes 60 individual stocks and currently sits at #105 in the Zacks Industry Rank. On average, this group has gained an average of 6.4% so far this year, meaning that ED is performing better in terms of year-to-date returns. Otter Tail is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Consolidated Edison and Otter Tail. These stocks will be looking to continue their solid performance.
NEW YORK, May 14, 2026 /PRNewswire/ -- Consolidated Edison, Inc. ( "Con Edison ") (NYSE: ED) executives will meet with investors at various conferences in May and June 2026. A copy of Con Edison's investor presentation for these meetings can be found on the Presentations & Webcasts page of Con Edison's website.
Partnership powered agile, high-throughput customer messaging during back-to-back New York City winter storms
DENVER--(BUSINESS WIRE)--Convey, a leading provider of customer engagement solutions for highly regulated industries, today announced that its partnership with Con Edison has been recognized with the Bronze Award for Excellence in Outage Communications in Chartwell's 2026 Best Practices Awards. The award honors Con Edison's response to two extreme winter storms that struck New York City in early 2026, during which the utility leveraged Convey's platform to deliver rapid, localized, and transparent communications to millions of customers.
"Con Edison's response to these back-to-back storms is a powerful example of what modern outage communications can look like when utilities pair operational expertise with the right digital tools," stated Maulik Datanwala, CEO, Convey.
Share By modernizing emergency communications and customer outreach, Convey helps utilities scale communications during critical events, strengthen resiliency, and build trust with the communities they serve. The Con Edison partnership demonstrates how purpose-built digital tools can transform outage communications from static and reactive to adaptive and responsive, even under the most demanding emergency conditions.
In January and February 2026, New York City experienced two severe weather events within weeks of each other: Winter Storm Fern, followed by a powerful February blizzard that dropped up to 24 inches of snow across the five boroughs and triggered a citywide state of emergency. Together, the storms placed extraordinary pressure on infrastructure, restoration crews, and the pace and transparency of communications with customers, elected officials, and the media.
Using Convey's purpose-built technology solutions for Utilities, Con Edison deployed high-throughput, ad hoc messaging that delivered localized updates to customers in near-real time across SMS, email, and automated voice channels. From January 1 through February 28, the utility delivered almost 400,000 communications to customers, including more than 215,000 estimated restoration time messages, nearly 46,000 ad-hoc emergency communications, and more than 88,000 restoration confirmations. Two pre-storm outreach campaigns delivered an additional 5.3 million text messages to help customers prepare for severe weather and report outages quickly.
The results reflected a meaningful shift in how customers chose to engage. Of the outage reports received during the period, 61% were submitted through self-service platforms such as the website, mobile app, SMS, and IVR, reducing strain on call centers and enabling more targeted communications. During severe weather events, 82% of customers contacting Con Edison about outages used self-service channels, compared with 76% during normal operating conditions. Post-restoration surveys showed 92% overall customer satisfaction, with 78% of respondents reporting they were "very satisfied" despite the difficult conditions.
“This winter’s extreme weather was another great example of the importance of staying connected with our customers. We’re committed to providing timely and accurate information so people can make informed decisions for their families and businesses. Our multi-channel messaging platform helps us keep connected with the communities we serve,” said Di Soares, Section Manager, Con Edison.
"Con Edison's response to these back-to-back storms is a powerful example of what modern outage communications can look like when utilities pair operational expertise with the right digital tools," stated Maulik Datanwala, CEO, Convey. "Serving one of the most densely populated and publicly scrutinized service territories in the country, Con Edison set a new bar for transparency, speed, and stakeholder coordination during extreme weather. We're proud that our platform helped power that effort, and we congratulate the entire Con Edison team on this well-earned recognition from Chartwell."
Con Edison is one of several leading utilities nationwide leveraging Convey's technology to proactively engage customers before, during, and after critical events. By combining intelligent workflows with proven scalability, Convey provides a repeatable playbook that the broader utilities industry can adopt to strengthen resilience and compliance while improving customer experience.
About Con Edison
For more than 200 years, Con Edison has powered the growth of New York City as one of the nation’s most essential energy companies. Today, it operates one of the world’s largest and most complex energy delivery systems, providing electric, gas, and steam service to nearly 10 million people across New York City and Westchester County—supporting a region that helps power the global economy.
About Convey
Convey is the engagement operating system for Utilities and regulated industries, delivering intelligent customer workflows that transform compliance into seamless, human-centered experiences. Purpose-built for complex environments, Convey enables timely, accurate, and personalized communication during critical moments, helping organizations reduce costs, mitigate compliance risk, and strengthen customer trust at scale. Convey is a portfolio company of OceanSound Partners and Energy Impact Partners. For more information, please visit goconvey.com.
About Chartwell
Based in Atlanta, Chartwell Inc. is a specialized information provider for the utility industry. We provide strategic research and facilitate issue-targeted forums for collaboration among industry peers. Our wide range of services ensures that our members have access to the best, most timely information available to make their business decisions. For more information, visit www.chartwellinc.com.
In the dividend world, Dividend Kings are the model example of reliability. Those are the companies that, through thick and thin, have increased their dividend payouts for 50 or more consecutive years.
The energy sector is known for volatility, but there are still companies that can offer the same level of consistency in their payouts. We'll look at three of those energy companies today; one is in fact a Dividend King that has increased its payout consecutively for over 52 years, while the two other companies are on the path to earning that title. Those companies are Consolidated Edison (ED +0.84%), Enbridge (ENB +0.07%), and Enterprise Products Partners (EPD 0.08%).
Image source: Getty Images.
The utility Dividend King Consolidated Edison is a regulated utility operator with a strong anchor in New York that allows it to generate consistent cash flow. Its first of three main business segments, Con Edison of New York, provides gas services to over 1 million customers and electric services to over 3 million customers in New York City and Westchester County. Its Orange & Rockland business serves over 400,000 customers with its electric and gas services, and its Con Edison Transmission business invests in electrical and natural gas transmission projects.
Today's Change
(
0.84
%) $
0.90
Current Price
$
107.74
Consolidated entered the Dividend King club not too long ago, with 52 years of consecutive payout increases. Currently, that payout yields 3.3%, and the company can maintain it thanks to strong income generation.
In 2025, it generated over $2 billion in net income, up from $1.8 billion in 2024. It's off to a strong start this year, reporting net income of $924 million in its 2026 first-quarter earnings report. With regulated utilities, an investing consideration is that companies can't typically rely on price increases for revenue growth, as those increases require approval.
Enbridge uses an "all of the above" strategy As data centers power artificial intelligence (AI) workloads, it puts strain on traditional grids. According to Motley Fool research, to meet those demands, investors should consider how multiple energy sources can be used:
Investors should focus more on total energy demand than on renewables versus fossil fuels in the energy mix. Over the long term, solar, wind, battery energy storage, and nuclear will likely make up a higher proportion of the electricity mix than natural gas and coal. However, natural gas consumption could still be far higher 5 to 10 years from now than today, given AI's outsize energy demands.
Today's Change
(
0.07
%) $
0.04
Current Price
$
56.50
That fits right into Enbridge's approach, which says it believes in an "all-of-the-above energy supply approach that's built for reality." As examples of its range of energy offerings, Meta Platforms signed an agreement to purchase all the renewable energy output from Enbridge's solar project in Texas. It also operates a massive natural gas pipeline, which moves roughly 20% of all the gas consumed in the U.S.
It's building its way up to becoming a Dividend King, with 31 years of consecutive dividend increases, and that dividend currently yields 4.8%. Strong earnings continually support that payout. For 2025 in Canadian dollars, generally accepted accounting principles (GAAP) earnings were CA$7 billion ($5 billion).
The big business of energy transportation and storage Enterprise is a midstream service provider, acting as an intermediary that processes, transports, and stores between extraction and final delivery. It operates over 50,000 miles of pipeline, with over 21,000 miles dedicated to natural gas. The rest is for natural gas liquids, crude oil, refined products, and petrochemicals. That puts Enterprise in a strong position, as the global natural gas market is expected to continue growing from roughly $895 billion in 2025 to more than $1 trillion by 2033, according to Grand View Research.
Today's Change
(
-0.08
%) $
-0.03
Current Price
$
37.25
Enterprise's dividend yield is high at 5.5%, which is within a range that can often worry investors about sustainability, especially in the energy sector. Even with those concerns typical of other companies, Enterprise continues to produce steady net income, enabling dividend increases for 27 consecutive years. In 2024, it reported $5.9 billion in net income and $5.8 billion in 2025.
Key Takeaways Consolidated Edison cites rising electricity demand and grid modernization to support performance. ED plans $6.6B spend in 2026 and nearly $38B for 2026-30, including clean energy and resilience. ED raised its dividend to 88.75 cents, extending 52 years of increases; debt-to-capital is 50.20%. Consolidated Edison (ED - Free Report) benefits from rising electricity demand, grid modernization and maintenance of its electric, gas and steam delivery systems, supporting service reliability and financial performance. The company invests systematically in renewable and storage expansion, boosting its long-term growth.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Projections for ED & Surprise History The Zacks Consensus Estimate for ED’s 2026 and 2027 earnings have moved up 0.33% and 0.47%, respectively, in the past 60 days. The Zacks Consensus Estimate for ED’s 2026 and 2027 sales is pinned at $17.45 billion and $18.38 billion, indicating year-over-year growth of 3.14% and 5.35%, respectively.
ED’s long-term (three to five years) earnings growth rate is 6.47%.
ED surpassed the Zacks Consensus Estimate in three of the last four reported quarters and missed it once, delivering an average positive earnings surprise 2.24%.
ED’s Stable Investments The company undertakes systematic capital investment for renewable expansion while upgrading and modernizing its electric, gas and steam delivery infrastructure. This supports the company’s carbon neutrality plan, improves operational efficiency, enhances service reliability and supports long-term growth.
The company aims to invest $6.6 billion in 2026 and nearly $38 billion for 2026-2030. Consolidated Edison's 10-year investment plan includes $2.9 billion in clean energy generation and $2.6 billion to strengthen climate resilience.
ED’s Shareholder Return ProgramThe company has been rewarding its shareholders with continuous dividend increases for 52 years. It announced a dividend of 88.75 cents, resulting in an annualized dividend of $3.55, reflecting a 4.4% increase from 2025. Consolidated Edison has a dividend yield of 3.42% versus the Zacks S&P 500 composite’s average of 1.45 %.
ED’s Debt Position The debt-to-capital ratio measures the extent to which a company relies on debt financing relative to its total capital, reflecting its financial leverage and long-term solvency. ED’s total debt-to-capital is 50.20%, which is lower than the industry’s 59.94%, indicating stronger financial stability and lower leverage risk.
ED’s time earned ratio (TIE) at the end of the first quarter of 2026 was 3.3. The TIE ratio reflects a company’s ability to meet long-term debt obligations by evaluating how effectively operating earnings cover interest expenses and serves as an indicator of long-term solvency and financial health.
Price Performance of EDIn the past six months, Consolidated Edison shares have risen 9.4% compared with the industry’s 2.3% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider Some other top-ranked stocks from the same industry are Duke Energy (DUK - Free Report) , Companhia Paranaense de Energia - Copel Unsponsored ADR (ELPC - Free Report) and PG&E (PCG - Free Report) , each carries a Zacks Rank #2 at present.
DUK, ELPC and PCG dividend yields are 3.52%, 5.01% and 1.21%, respectively.
The Zacks Consensus Estimate for Duke Energy, ELPC and PG&E 2026 EPS is pegged at $6.71, 74 cents and $1.65, suggesting year-over-year growth of 6.34%,45.10% and 10%, respectively.
Key Takeaways DUK offers 6.3% expected earnings growth, with estimates up 0.1% in the past 60 days.ED combines diversified utility operations with 6.8% expected earnings growth.PCG targets 10% earnings growth, with consensus estimates up 0.6% over 90 days. Consumer price index accelerated further in May, as a surge in oil prices created pressure on the economy, raising concerns of an economic slowdown. Tensions in the Middle East have been contributing to the pain for consumers, with the Federal Reserve struggling to bring down inflation.
Given this scenario, we recommend buying three defensive stocks from the utility sector, namely Duke Energy Corporation (DUK - Free Report) , Consolidated Edison, Inc.(ED - Free Report) and PG&E Corporation (PCG - Free Report) .
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #2 (Buy) at present, and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inflation Jump FurtherThe Consumer Price Index, an important gauge for measuring the prices of goods and services across the economy, jumped 0.5% sequentially in May after rising 0.6% in April, and 4.2% from the year-ago levels, the Commerce Department reported on Thursday. The annual jump was the largest since April 2023.
Although both the monthly and annual rises came in line with economists’ expectations, inflation has been rising at a steep pace over the past three months. CPI rose 3.3% year over year in March and 3.8% in April.
Core CPI, which strips out the volatile food and energy, rose 0.2% sequentially in May and 2.9% from the year-ago levels. The monthly gain was below the consensus estimate of a rise of 0.3%, while the annual figures came in line with expectations.
Inflation rose past the 4% mark for the first time in three years as oil prices surged amid the ongoing Middle East crisis. Hours after the CIP report was released, President Donald Trump suggested that a peace deal had been reached with Iran and that the war would stop.
However, concerns remain as an official announcement is yet to be made. Oil prices have surged nearly 40% since the beginning of the war, which has pushed inflation to a three-year high.
The Federal Reserve, which monitors the CPI to track its 2% target, halted rate cuts last year. Investors were earlier hoping that the central bank could resume its rate cuts in the second half of the year.
However, several Federal Reserve officials now believe that a rate hike would be necessary if inflation continues to stay above 2%. A rate hike means higher borrowing costs, which would further weigh on investors.
3 Low-Beta Utility Stocks with Growth PotentialDuke Energy CorporationDuke Energy Corporation is a diversified energy company with a broad portfolio of domestic and international, natural gas and electric and regulated and unregulated businesses that supply, deliver and process energy in North America and selected international markets. DUK primarily operates through three business segments — Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
Duke Energy Corporation has an expected earnings growth rate of 6.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. Duke Energy has a beta of 0.39 and a current dividend yield of 3.41%.
Consolidated EdisonConsolidated Edison, Inc. is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. ED’s regulated businesses operate through its subsidiaries — Consolidated Edison Company of New York, Orange and Rockland Utilities, Con Edison Clean Energy Businesses, Inc. and Con Edison Transmission, Inc.
Consolidated Edison has an expected earnings growth rate of 6.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. Consolidated Edison has a beta of 0.27 and a current dividend yield of 3.30%.
PG&E CorporationPG&E Corporation is the parent holding company of California’s largest regulated electric and gas utility, Pacific Gas and Electric Company. PCG generates revenues mainly through the sale and delivery of electricity and natural gas to customers.
PG&E Corporation has an expected earnings growth rate of 10% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 90 days. PG&E Corporation has a beta of 0.27 and a current dividend yield of 1.20%.
Home prices remain elevated and mortgage rates hover near 6%, so many would-be sellers list their houses only to watch them sit. When offers fall short of expectations, a growing number simply pull the listing and rent the property instead. Zillow (NYSE:Z | Z Price Prediction) released a report last month showing this “accidental landlord” trend has climbed to the second-highest level on record.
According to Zillow Research, 2.3% of homes listed for rent on its platform in October had previously been listed for sale. Only once in Zillow’s nearly six-year tracking has the share been higher. The current figure matches the October 2022 high and trails only the November 2022 peak of 2.4%.
The shift appears strongest in buyer-friendly Sun Belt and Western markets. Denver leads at 4.9%, followed by Houston at 4.2%, Austin at 4.1%, San Antonio at 3.9%, Tampa at 3.7%, and Miami at 3.5%. Seven of the top 10 metros sit in Texas or Florida. Detached single-family homes make up the bulk, with 3.4% of single-family rental listings now coming from accidental landlords.
Zillow senior economist Kara Ng called the trend “choice-driven rather than shock-driven.” Sellers rarely face forced sales, and just 4.1% of homes carry values below their last sale price. Many homeowners simply refuse to accept lower offers after rates more than doubled from pandemic lows. As it happens, Redfin and FHFA data confirm that 21.2% of outstanding mortgages now carry rates of 6% or higher as of Q3 2025, slightly ahead of the 20% still locked in below 3%.
That lock-in effect, combined with longer listing times and more price cuts in certain markets, keeps inventory tight for buyers while adding single-family homes to the rental pool. Single-family rents rose just 2.6% year-over-year recently, the slowest pace in Zillow’s records. It’s going to get worse. Zillow forecasts growth will slow further to 1.8% for the year — among the slowest rates on record.’
Two stocks sit on opposite sides of this dynamic. Let’s see why Invitation Homes (NYSE:INVH) can profit from the accidental landlord trend and why investors should avoid Opendoor Technologies (NASDAQ:OPEN).
Invitation Homes (INVH) Real estate investment trust (REIT) Invitation Homes owns and operates one of the largest portfolios of single-family rental homes in the country. The company focuses on suburban properties in high-demand Sun Belt markets — many of the same areas seeing elevated accidental-landlord activity.
More rental supply from individual homeowners can create short-term competition and help cool rent growth. Yet Invitation Homes benefits from scale, professional management, and the ability to maintain high occupancy even when individual landlords struggle with maintenance or tenant issues. The REIT’s portfolio generates steady cash flow that supports a reliable dividend.
Today, Invitation Homes trades at a P/E ratio of 28 ,with trailing earnings of $0.96 per share. The annual dividend stands at $1.20 per share — up 3.4% from the year before — delivering a yield of approximately 4.4%. Revenue for the trailing 12 months reached $2.72 billion
Compared with smaller or less diversified rental operators, Invitation Homes offers institutional-grade operations that appeal to investors seeking housing exposure without direct landlord headaches. When all is said and done, persistent affordability challenges keep many Americans renting longer, and Invitation Homes holds a strong position to capture that demand.
Opendoor Technologies (OPEN) Opendoor Technologies operates an iBuying model. It makes instant cash offers on homes, completes light renovations, and resells them quickly. The business depends on steady transaction volume and motivated sellers willing to trade speed for convenience.
The rise in accidental landlords directly reduces that seller pool. Homeowners who once might have accepted an Opendoor offer now choose to rent instead, keeping properties off the for-sale market. This dynamic worsens an already low inventory environment and slows overall home sales activity.
Opendoor reported trailing 12-month revenue of $4.37 billion, down from $5.15 billion the prior year. The company posted a net loss of roughly $1.3 billion for the period, with earnings deeply negative at approximately $1.70 per share.
Granted, Opendoor has tightened operations and focused on higher-quality markets, but the core challenge remains: fewer homes coming to market hurts acquisition volume. In short, anything that encourages sellers to hold and rent rather than transact creates a structural headwind for the iBuyer approach.
Cwm LLC raised its stake in Invitation Home (NYSE:INVH – Free Report) by 40.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 159,413 shares of the company’s stock after purchasing an additional 45,749 shares during the quarter. Cwm LLC’s holdings in Invitation Home were worth $4,430,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently modified their holdings of INVH. Hantz Financial Services Inc. raised its holdings in shares of Invitation Home by 1,695.2% during the 3rd quarter. Hantz Financial Services Inc. now owns 1,131 shares of the company’s stock valued at $33,000 after buying an additional 1,068 shares during the period. Smartleaf Asset Management LLC boosted its holdings in Invitation Home by 59.1% in the 3rd quarter. Smartleaf Asset Management LLC now owns 1,255 shares of the company’s stock worth $36,000 after acquiring an additional 466 shares during the period. Cromwell Holdings LLC grew its position in Invitation Home by 2,463.5% in the fourth quarter. Cromwell Holdings LLC now owns 1,333 shares of the company’s stock valued at $37,000 after acquiring an additional 1,281 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its position in Invitation Home by 136,000.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 1,361 shares of the company’s stock valued at $40,000 after acquiring an additional 1,360 shares in the last quarter. Finally, Mather Group LLC. purchased a new stake in shares of Invitation Home during the third quarter valued at approximately $42,000. Institutional investors and hedge funds own 96.79% of the company’s stock.
Invitation Home Stock Performance Invitation Home stock opened at $26.67 on Thursday. Invitation Home has a 52 week low of $24.25 and a 52 week high of $35.80. The company has a current ratio of 0.03, a quick ratio of 0.03 and a debt-to-equity ratio of 0.44. The stock has a market cap of $15.98 billion, a P/E ratio of 27.78, a price-to-earnings-growth ratio of 3.87 and a beta of 0.82. The stock has a 50 day moving average of $25.81 and a 200-day moving average of $26.95.
Invitation Home (NYSE:INVH – Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.21). The company had revenue of $685.25 million during the quarter, compared to the consensus estimate of $683.00 million. Invitation Home had a return on equity of 6.24% and a net margin of 21.53%.The firm’s quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.47 EPS. Invitation Home has set its FY 2026 guidance at 1.900-1.980 EPS. On average, analysts expect that Invitation Home will post 1.88 EPS for the current fiscal year.
Invitation Home Announces Dividend The business also recently announced a quarterly dividend, which was paid on Friday, April 17th. Stockholders of record on Thursday, March 26th were given a $0.30 dividend. The ex-dividend date of this dividend was Thursday, March 26th. This represents a $1.20 annualized dividend and a dividend yield of 4.5%. Invitation Home’s payout ratio is presently 125.00%.
Analyst Ratings Changes A number of research analysts have recently commented on INVH shares. Mizuho reduced their target price on shares of Invitation Home from $27.00 to $26.00 and set a “neutral” rating on the stock in a research report on Friday, March 13th. Barclays dropped their price target on shares of Invitation Home from $33.00 to $31.00 and set an “overweight” rating on the stock in a research note on Friday, March 6th. Wall Street Zen lowered shares of Invitation Home from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Raymond James Financial reissued a “market perform” rating on shares of Invitation Home in a research report on Friday, February 27th. Finally, Keefe, Bruyette & Woods lowered their target price on Invitation Home from $31.00 to $28.00 and set a “market perform” rating for the company in a research note on Wednesday, February 25th. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $32.88.
Check Out Our Latest Report on INVH
Invitation Home Profile (Free Report)
Invitation Homes (NYSE: INVH) is a real estate investment trust that specializes in the ownership, operation and leasing of single-family rental homes across the United States. The company focuses on acquiring suburban and urban-adjacent single-family residences and managing them as rental properties for households seeking professionally managed, long-term housing alternatives to traditional homeownership or multifamily rentals.
Operationally, Invitation Homes is involved in the full lifecycle of the single-family rental business: sourcing and acquiring homes, performing renovations and ongoing maintenance, marketing and leasing properties, and providing property management and resident services.
Further Reading Five stocks we like better than Invitation Home Want to see what other hedge funds are holding INVH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Invitation Home (NYSE:INVH – Free Report).
Receive News & Ratings for Invitation Home Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Invitation Home and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINECwm LLC Sells 101,822 Shares of Ares Capital Corporation $ARCC
NEXT HEADLINE »Cwm LLC Has $4.43 Million Position in DuPont de Nemours, Inc. $DD
Key Takeaways INVH is set to report Q1 2026 results with higher revenues but flat FFO per share year over year.Invitation Homes may benefit from stronger rental demand and steady occupancy supporting NOI growth.INVH faces pressure from elevated supply and concessions impacting lease rates and rent growth. Invitation Homes (INVH - Free Report) is slated to report first-quarter 2026 results on April 29, after market close. The company’s quarterly results are likely to display a year-over-year increase in revenues and no change in funds from operations (FFO) per share.
In the last reported quarter, this residential real estate investment trust (REIT) posted a core FFO per share of 48 cents, meeting the Zacks Consensus Estimate. Results reflected higher same-store net operating income (NOI) and same-store blended rent. However, lower occupancy marred the performance to an extent.
Over the preceding four quarters, INVH’s core FFO per share met the Zacks Consensus Estimate thrice and surpassed it in the remaining period, with the average beat being 0.53%. The graph below depicts this surprise history:
In this article, we will dive deep into the U.S. apartment market environment and the company's fundamentals and analyze the factors that may have contributed to its first-quarter 2026 performance.
US Apartment Market in Q1The U.S. apartment market entered 2026 in better shape than many investors feared, though not yet in a clean pricing recovery. RealPage reported that first-quarter demand rebounded, with absorption of nearly 93,300 units, making it one of the strongest first quarters of the past decade. The snapback helped reverse the late-2025 move-out weakness, but annual demand still ran only a little above 303,000 units, below the roughly 340,000-unit decade average.
The good news is that the new supply is finally rolling over. Roughly 367,000 units were completed in the year-ending first quarter of 2026, including about 75,200 units in the quarter itself. This is still elevated in absolute terms, but it is a major comedown from the late-2024 peak of more than 589,000 unit annual deliveries and now sits near the 10-year average annual completion volume.
National occupancy stood at 94.9% in the first quarter of 2026, up 10 basis points sequentially but 20 basis points below the prior year. Rents rose 0.4% in the quarter after two consecutive quarterly declines but remained down 0.5% year over year. Concessions continue to do much of the heavy lifting: 25.5% of apartments were offering concessions, with the average incentive at 7.2%.
The weakest rent trends remain in high-supply Sun Belt markets. Austin, Denver and Phoenix posted some of the deepest annual rent cuts, while San Antonio, TX, Tampa, FL, Nashville, TN, and Las Vegas also lost momentum. In contrast, San Francisco, San Jose, CA, and New York showed rent growth, helped by easing supply pressure and better demand. Several Midwest markets, including Chicago, St. Louis and Cleveland, also posted steady gains because new supply has been more limited.
Factors at Play and Projections for Invitation HomesIn this environment, Invitation Homes’ performance is likely to have benefited from improving rental demand, supported by a rebound in absorption and steady occupancy levels. Affordability challenges in homeownership and limited large-unit apartment supply continue to drive demand for single-family rentals, aiding leasing and renewals.
The company’s diversified portfolio in high-growth markets and strong renewal mix are likely to have supported stable revenues, while operational efficiencies and technology initiatives may have aided NOI growth.
For the first quarter, the Zacks Consensus Estimate for INVH’s rental revenues currently stands at $668.2 million, up from $585.2 million reported in the prior-year period. The Zacks Consensus Estimate for first-quarter total revenues is pegged at $689.4 million, indicating a rise of 2.2% from the year-ago reported number.
However, elevated supply and increased concessions in key Sun Belt markets are expected to have pressured new lease rates and overall rent growth.
Invitation Homes’ activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 48 cents over the past two months. However, the figure suggests no change year over year.
What Our Quantitative Model Predicts for Invitation HomesOur proven model does not conclusively predict a surprise in terms of FFO per share for INVH this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Invitation Homes currently has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a LookHere are two stocks from the broader REIT sector — Ventas (VTR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Ventas, scheduled to report quarterly numbers on April 27, has an Earnings ESP of +0.62% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties, slated to release quarterly numbers on April 29, has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
DALLAS--(BUSINESS WIRE)--Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes,” “we,” “our,” and “us”), the nation’s premier single-family home leasing and management company, today announced our First Quarter (“Q1”) 2026 financial and operating results.
Q1 2026 Highlights
Year over year, total revenues increased 8.8% to $734 million, property operating and maintenance costs increased 5.8% to $251 million, and net income available to common stockholders decreased 3.5% to $160 million, or $0.26 per diluted common share. Core FFO per share remained generally flat at $0.48, while AFFO per share declined 2.6% to $0.41, consistent with expectations and primarily timing related. Same Store NOI decreased 0.3% year over year, reflecting 1.6% Same Store Core Revenues growth and 5.7% Same Store Core Operating Expenses growth; these results were impacted by the expected moderation in Same Store Average Occupancy from 97.2% to 96.3% year over year and timing of expenses. Same Store renewal rent growth of 3.7% and Same Store new lease rent growth of (3.0)% resulted in Same Store blended rent growth of 1.6%; looking ahead, preliminary April Same Store blended rent growth is approximately 2.3%, including a return to positive new lease rent growth for the month. We were a net seller of 222 wholly owned homes — many to families purchasing for their own use — generating net proceeds of approximately $116 million. Wholly owned dispositions are tracking well ahead of expectations, totaling $206 million, with an average sales price of approximately $427,000 per home. We acquired 17,101,046 shares of our common stock for approximately $439 million under our share repurchase program. Together with repurchases completed in the fourth quarter of 2025, we repurchased a total of 19,333,731 shares at an average price of $25.86 per share for an aggregate of approximately $500 million, fully utilizing the authorization approved by our board of directors on October 28, 2025. On April 27, 2026, our board of directors authorized a new $500 million share repurchase program. At quarter end, we had $1,304 million in available liquidity through a combination of unrestricted cash and undrawn capacity on our revolving credit facility, with net debt / TTM adjusted EBITDAre of 5.6x, within our targeted range of 5.5x to 6.0x. As previously announced, on January 14, 2026, we acquired ResiBuilt Homes, LLC (“ResiBuilt”), an in-house development general contractor for new build-to-rent communities that is expected to be modestly accretive to our 2026 AFFO per share. During Q1 2026, ResiBuilt delivered over 300 newly constructed homes to third party customers. We are maintaining our previously disclosed full year 2026 outlook as detailed further below. Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States (“GAAP”). These measures are defined herein and, as applicable, reconciled to the most comparable GAAP measures.
Comments from Chief Executive Officer Dallas Tanner
“Our teams delivered a solid first quarter in line with our expectations, providing good momentum heading into peak leasing season. Occupancy is climbing, new lease rent growth turned positive in April, and our residents continue to stay longer. In our markets, leasing one of our homes saves a family nearly a thousand dollars a month on average compared to owning. In addition, we put $500 million to work through repurchases of our stock, and our board of directors has just approved a new $500 million stock repurchase authorization — reflecting our continued confidence in the intrinsic value of our business. We are executing on our priorities, maintaining our full-year outlook, and I remain optimistic about the long-term positioning of this business.”
Financial Results
Net Income, FFO, Core FFO, and AFFO Per Share — Diluted
Q1 2026
Q1 2025
Net income
$
0.26
$
0.27
FFO
0.43
0.45
Core FFO
0.48
0.48
AFFO
0.41
0.42
Net Income
Year over year, net income per common share — diluted for Q1 2026 decreased 2.3% to $0.26, primarily due to an increase in total expenses.
Core FFO
Year over year, Core FFO per share for Q1 2026 remained generally flat at $0.48.
AFFO
Year over year, AFFO per share for Q1 2026 declined 2.6% to $0.41, consistent with expectations and primarily timing related.
Operating Results
Same Store Operating Results Snapshot
Number of Homes, period-end
Q1 2026
Total Portfolio
85,970
Number of homes in Same Store Portfolio:
78,141
Same Store % of Total
90.9
%
Q1 2026
Q1 2025
Core Revenues growth (year over year)
1.6
%
Core Operating Expenses growth (year over year)
5.7
%
NOI growth (year over year)
(0.3
)%
Average Occupancy
96.3
%
97.2
%
Bad Debt % of gross rental revenue
0.6
%
0.6
%
Turnover Rate
5.3
%
5.0
%
Rental Rate Growth (lease-over-lease):
Renewals
3.7
%
5.2
%
New leases
(3.0
)%
(0.1
)%
Blended (1)
1.6
%
3.6
%
Other property income growth, net (year over year) (2):
10.3
%
(1) Preliminary April 2026 leasing indicates blended Rental Rate Growth for the month of 2.3%, including positive Rental Rate Growth for new leases.
(2) Represents value add service income and lease fees, net of resident recoveries, that are included within Core Revenues growth, but not included within Rental Rate Growth. Same Store NOI
For the Same Store Portfolio of 78,141 homes, Same Store NOI for Q1 2026 decreased 0.3% year over year on Same Store Core Revenues growth of 1.6% and Same Store Core Operating Expenses growth of 5.7%.
Same Store Core Revenues
Q1 2026 Same Store Core Revenues growth of 1.6% year over year was primarily driven by a 2.2% increase in Average Monthly Rent and a 10.3% increase in other income, net of resident recoveries, partially offset by an anticipated 90 basis point year over year decline in Average Occupancy.
Same Store Core Operating Expenses
Q1 2026 Same Store Core Operating Expenses increased 5.7% year over year, which was in line with expectations and attributable to a 12.1% increase in controllable expenses and a 2.8% increase in fixed expenses. The year over year increase in controllable expenses was primarily attributable to favorable timing of certain expense items in the prior year.
Investment, Property Management, and Homebuilding Activity
During Q1 2026, we were a net seller of 222 wholly owned homes — many to families purchasing for their own use — generating net proceeds of approximately $116 million. Wholly owned dispositions are tracking well ahead of expectations, totaling $206 million, with an average sales price of approximately $427,000 per home. In addition, during Q1 2026, our joint ventures acquired 20 homes for $7 million and sold 10 homes for $5 million.
A summary of our owned and/or managed homes is included in the following table:
Summary of Homes Owned and/or Managed as of March 31, 2026
Number of
Homes Owned
and/or
Managed as of
12/31/2025
Acquired or
Added In
Q1 2026
Disposed or
Subtracted In
Q1 2026
Number of
Homes Owned
and/or
Managed as of
3/31/2026
Wholly owned homes
86,192
261
(483
)
85,970
Joint venture owned homes
8,006
20
(10
)
8,016
Managed-only homes
15,866
—
(107
)
15,759
Total homes owned and/or managed
110,064
281
(600
)
109,745
As previously announced, on January 14, 2026, we acquired ResiBuilt Homes, LLC (“ResiBuilt”), an in-house development general contractor for new build-to-rent communities that is expected to be modestly accretive to our 2026 AFFO per share. During Q1 2026, ResiBuilt delivered over 300 newly constructed homes to third party customers.
Balance Sheet and Capital Markets Activity
As of March 31, 2026, we had $1,304 million in available liquidity through a combination of unrestricted cash and undrawn capacity on our revolving credit facility. In addition, our total indebtedness of $8,873 million consisted of 84.3% unsecured debt and 15.7% secured debt; 89.5% of our total debt was fixed rate or swapped to fixed rate; approximately 90% of our wholly owned homes were unencumbered; and our Net debt / TTM adjusted EBITDAre was 5.6x, within our targeted range of 5.5x to 6.0x. We have no debt reaching final maturity before June 2027.
We acquired 17,101,046 shares of our common stock for approximately $439 million under our share repurchase program. Together with repurchases completed in the fourth quarter of 2025, we repurchased a total of 19,333,731 shares at an average price of $25.86 per share for an aggregate of approximately $500 million, fully utilizing the authorization approved by our board of directors on October 28, 2025. On April 27, 2026, our board of directors authorized a new $500 million share repurchase program. Repurchases, if any, will be made at our discretion and are not required or guaranteed. The timing and actual number of shares repurchased will depend on a variety of factors, including price, corporate and regulatory requirements, market conditions, and other liquidity needs and priorities.
FY 2026 Guidance
Set forth below are our current expectations, which are generally unchanged from initial guidance provided in February 2026, in addition to our underlying assumptions. In accordance with SEC rules, we do not provide guidance for the most comparable GAAP financial measures of net income (loss) per share, total revenues, and property operating and maintenance expense. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because we are unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of our ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, net casualty losses and reserves, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on our GAAP results for the guidance period.
FY 2026 Guidance Summary
FY 2026
Guidance Range
FY 2026
Guidance Midpoint
Core FFO per share — diluted
$1.90 - $1.98
$1.94
AFFO per share — diluted
$1.60 - $1.68
$1.64
Same Store Core Revenues growth (1)
1.3% - 2.5%
1.9%
Same Store Core Operating Expenses growth (2)
3.0% - 4.0%
3.5%
Same Store NOI growth
0.3% - 2.0%
1.15%
Wholly owned acquisitions (3)
$150 - $350 million
$250 million
JV acquisitions (3)
$50 - $150 million
$100 million
Wholly owned dispositions
$450 - $650 million
$550 million
(1) Same Store Core Revenues growth guidance assumes FY 2026 (i) Average Occupancy in a range of 96.0% to 96.6% and (ii) average Bad Debt in a range of 60 to 80 basis points. (2) Same Store Core Operating Expenses growth guidance assumes a year over year increase in FY 2026 (i) property taxes in a range of 4% to 5%; (ii) insurance expenses in a range of 5% to 7%; and (iii) all other expenses in a range of approximately 1% to 2%. (3) Excludes our acquisition of ResiBuilt in January 2026. Earnings Conference Call Information
We have scheduled a conference call at 11:00 a.m. Eastern Time on April 30, 2026, to review Q1 2026 results, discuss recent events, and conduct a question-and-answer session. The domestic dial-in number is 1-888-330-2384, and the international dial-in number is 1-240-789-2701. The conference ID is 7714113.
Listen-only participants are encouraged to join the conference call via a live audio webcast, which is available online from our investor relations website at www.invh.com. Following the conclusion of the earnings call, we will post a replay of the webcast to our website for one year.
Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on our Investor Relations website at www.invh.com.
About Invitation Homes
Invitation Homes, an S&P 500 company, is the nation’s premier single-family home leasing and management company, helping to expand housing through new development and strategic partnerships. Our purpose, Unlock the Power of Home™, reflects our commitment to address America’s housing needs by delivering high-quality living solutions and Genuine CARE™ to those who choose the flexibility and value of leasing.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties that may impact our financial condition, results of operations, cash flows, business, associates, and residents, including, among others, risks inherent to the single-family rental industry and our business model, macroeconomic factors beyond our control, federal, state, and local laws, regulations, executive actions, and policy initiatives, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) fees and insurance costs, poor resident selection and defaults and non-renewals by our residents, our dependence on third parties for key services, risks related to the evaluation of properties, performance of our information technology systems, development and use of artificial intelligence, risks related to our indebtedness, risks related to the potential negative impact of fluctuating global and United States economic conditions (including inflation and imposition or increase of tariffs and trade restrictions by the United States and foreign countries), uncertainty in financial markets (including as a result of events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”), as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in our other periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
Consolidated Balance Sheets
($ in thousands, except shares and per share data)
March 31, 2026
December 31, 2025
(unaudited)
Assets:
Investments in single-family residential properties, net
$
17,114,862
$
17,274,622
Cash and cash equivalents
114,129
129,971
Restricted cash
258,850
224,894
Goodwill
314,154
258,207
Investments in unconsolidated joint ventures
250,572
254,561
Other assets, net
648,574
538,035
Total assets
$
18,701,141
$
18,680,290
Liabilities:
Secured debt, net
$
1,384,686
$
1,384,114
Unsecured notes, net
4,400,877
4,398,921
Term loan facilities, net
2,456,807
2,451,985
Revolving facility
560,000
145,000
Accounts payable and accrued expenses
257,455
230,350
Resident security deposits
187,066
184,536
Other liabilities
325,587
317,492
Total liabilities
9,572,478
9,112,398
Equity:
Stockholders’ equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of March 31, 2026 and December 31, 2025
—
—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 593,981,591 and 610,788,732 outstanding as of March 31, 2026 and December 31, 2025, respectively
5,940
6,108
Additional paid-in capital
10,696,063
11,128,590
Accumulated deficit
(1,629,420
)
(1,610,981
)
Accumulated other comprehensive income
18,451
6,415
Total stockholders’ equity
9,091,034
9,530,132
Non-controlling interests
37,629
37,760
Total equity
9,128,663
9,567,892
Total liabilities and equity
$
18,701,141
$
18,680,290
Consolidated Statements of Operations
($ in thousands, except shares and per share amounts)
Q1 2026
Q1 2025
Revenues:
(unaudited)
(unaudited)
Rental revenues
$
597,697
$
585,193
Other property income
72,818
67,878
Management fee revenues
19,852
21,408
Homebuilding revenues
43,745
—
Total revenues
734,112
674,479
Expenses:
Property operating and maintenance
251,134
237,449
Property management expense
39,325
36,739
Homebuilding cost of sales
39,134
—
General and administrative
32,319
29,518
Interest expense
95,313
84,254
Depreciation and amortization
193,142
183,146
Casualty losses, impairment, and other
4,345
4,683
Total expenses
654,712
575,789
Gain on sale of property, net of tax
87,094
71,666
Losses from investments in unconsolidated joint ventures
(3,085
)
(5,218
)
Other, net
(2,344
)
1,144
Net income
161,065
166,282
Net income attributable to non-controlling interests
(557
)
(537
)
Net income attributable to common stockholders
160,508
165,745
Net income available to participating securities
(708
)
(228
)
Net income available to common stockholders — basic and diluted
$
159,800
$
165,517
Weighted average common shares outstanding — basic
605,997,344
612,777,606
Weighted average common shares outstanding — diluted
606,233,573
613,361,880
Net income per common share — basic
$
0.26
$
0.27
Net income per common share — diluted
$
0.26
$
0.27
Dividends declared per common share
$
0.30
$
0.29
Glossary and Reconciliations
Average Monthly Rent
Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease.
Average Occupancy
Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period.
Bad Debt
Bad debt represents our reserves for residents’ accounts receivables balances that are aged greater than 30 days, under the rationale that a resident’s security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident’s security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both Total Portfolio and Same Store Portfolio presentations, are reflected net of bad debt.
Core Operating Expenses
Core operating expenses for an identified population of homes reflect property operating and maintenance expenses, excluding any expenses recovered from residents.
Core Revenues
Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries.
EBITDA, EBITDAre, and Adjusted EBITDAre
EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts (“Nareit”) recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. We define EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax, impairment on depreciated real estate investments, and adjustments for unconsolidated joint ventures. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; business reorganization costs; casualty (gains) losses and reserves, net; amortization of intangible assets; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of our financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. See “Reconciliation of Net Income to Adjusted EBITDAre” for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures. We define Core FFO as FFO adjusted for the following: non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives; share-based compensation expense; legal settlements; business reorganization costs; casualty (gains) losses and reserves, net; amortization of intangible assets; and (gains) losses on investments in equity and other securities, net, as applicable. We define Adjusted FFO as Core FFO less Recurring Capital Expenditures that are necessary to help preserve the value and maintain the functionality of our homes. Where appropriate, FFO, Core FFO, and Adjusted FFO are adjusted for our share of investments in unconsolidated joint ventures.
We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss. We believe that Core FFO and Adjusted FFO are also meaningful supplemental measures of our operating performance for the same reasons as FFO and are further helpful to investors as they provide a more consistent measurement of our performance across reporting periods by removing the impact of certain items that are not comparable from period to period.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. FFO, Core FFO, and Adjusted FFO are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our FFO, Core FFO, and Adjusted FFO may not be comparable to the FFO, Core FFO, and Adjusted FFO of other companies due to the fact that not all companies use the same definition of FFO, Core FFO, and Adjusted FFO. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. See “Reconciliation of FFO, Core FFO, and Adjusted FFO” for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.
Net Operating Income (NOI)
NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs, and marketing expense). NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; impairment and other; gain on sale of property, net of tax; (gains) losses on investments in equity securities, net; other income and expenses; management fee revenues; and (income) losses from investments in unconsolidated joint ventures.
The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies.
We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store Portfolio. See “Reconciliation of Net Income to Same Store NOI” for a reconciliation of GAAP net income to NOI for our total portfolio and NOI for our Same Store Portfolio.
Recurring Capital Expenditures or Recurring CapEx
Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and our systems as a single-family rental.
Rental Rate Growth
Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and amortized contractual rent increases. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home.
Same Store / Same Store Portfolio
Same Store or Same Store portfolio includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as our existing Same Store portfolio, and homes in markets that we have announced an intent to exit where we no longer operate a significant number of homes.
Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as our existing Same Store portfolio may be considered stabilized at the time of acquisition.
Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established.
We believe presenting information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and our prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods and about trends in our organic business.
Total Homes / Total Portfolio
Total homes or total portfolio refers to the total number of homes owned, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless otherwise indicated, total homes or total portfolio refers to the wholly owned homes and excludes homes owned in joint ventures.
Turnover Rate
Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population.
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
FFO Reconciliation
Q1 2026
Q1 2025
Net income available to common stockholders
$
159,800
$
165,517
Net income available to participating securities
708
228
Non-controlling interests
557
537
Depreciation and amortization of real estate assets
184,923
179,063
Impairment on depreciated real estate investments
469
63
Net gain on sale of previously depreciated investments in real estate
(87,094
)
(71,666
)
Depreciation and net gain on sale of investments in unconsolidated joint ventures
3,042
3,498
FFO
$
262,405
$
277,240
Core FFO Reconciliation
Q1 2026
Q1 2025
FFO
$
262,405
$
277,240
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1)
10,629
3,634
Share-based compensation expense
10,700
10,157
Amortization of intangible assets
2,413
—
Business reorganization costs
1,501
2,385
Casualty losses and reserves, net (1)
3,935
4,683
Losses on investments in equity and other securities, net
213
221
Core FFO
$
291,796
$
298,320
AFFO Reconciliation
Q1 2026
Q1 2025
Core FFO
$
291,796
$
298,320
Recurring Capital Expenditures (1)
(40,473
)
(37,347
)
AFFO
$
251,323
$
260,973
Net income available to common stockholders
Weighted average common shares outstanding — diluted
606,233,573
613,361,880
Net income per common share — diluted
$
0.26
$
0.27
FFO, Core FFO, and AFFO
Weighted average common shares and OP Units outstanding — diluted
608,795,153
615,645,848
FFO per share — diluted
$
0.43
$
0.45
Core FFO per share — diluted
$
0.48
$
0.48
AFFO per share — diluted
$
0.41
$
0.42
(1) Includes our share from unconsolidated joint ventures. Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Total revenues (Total Portfolio)
$
734,112
$
685,250
$
688,166
$
681,401
$
674,479
Management fee revenues
(19,852
)
(21,662
)
(21,975
)
(22,294
)
(21,408
)
Homebuilding revenues
(43,745
)
—
—
—
—
Total portfolio resident recoveries
(46,072
)
(45,389
)
(46,885
)
(40,944
)
(44,118
)
Total Core Revenues (Total Portfolio)
624,443
618,199
619,306
618,163
608,953
Non-Same Store Core Revenues
(45,447
)
(44,578
)
(44,429
)
(42,399
)
(38,808
)
Same Store Core Revenues
$
578,996
$
573,621
$
574,877
$
575,764
$
570,145
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Property operating and maintenance expenses (Total Portfolio)
$
251,134
$
244,823
$
259,037
$
244,278
$
237,449
Total Portfolio resident recoveries
(46,072
)
(45,389
)
(46,885
)
(40,944
)
(44,118
)
Core Operating Expenses (Total Portfolio)
205,062
199,434
212,152
203,334
193,331
Non-Same Store Core Operating Expenses
(19,778
)
(18,592
)
(21,833
)
(19,453
)
(18,096
)
Same Store Core Operating Expenses
$
185,284
$
180,842
$
190,319
$
183,881
$
175,235
Reconciliation of Net Income to Same Store NOI, Quarterly
(in thousands) (unaudited)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Net income available to common stockholders
$
159,800
$
144,308
$
136,474
$
140,665
$
165,517
Net income available to participating securities
708
246
264
222
228
Non-controlling interests
557
496
472
480
537
Management fee revenues
(19,852
)
(21,662
)
(21,975
)
(22,294
)
(21,408
)
Homebuilding revenues
(43,745
)
—
—
—
—
Property management expense
39,325
39,485
37,073
35,833
36,739
Homebuilding cost of sales
39,134
—
—
—
—
General and administrative
32,319
23,697
18,444
23,591
29,518
Interest expense
95,313
90,878
90,781
87,414
84,254
Depreciation and amortization
193,142
189,875
188,457
185,455
183,146
Casualty losses, impairment, and other
4,345
311
3,420
3,029
4,683
Gain on sale of property, net of tax
(87,094
)
(54,463
)
(45,515
)
(46,591
)
(71,666
)
(Income) losses from investments in unconsolidated joint ventures
3,085
3,717
(2,130
)
4,802
5,218
Other, net (1)
2,344
1,877
1,389
2,223
(1,144
)
NOI (Total Portfolio)
419,381
418,765
407,154
414,829
415,622
Non-Same Store NOI
(25,669
)
(25,986
)
(22,596
)
(22,946
)
(20,712
)
Same Store NOI
$
393,712
$
392,779
$
384,558
$
391,883
$
394,910
(1) Includes interest income, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses. Reconciliation of Net Income to Adjusted EBITDAre
(in thousands, unaudited)
Trailing Twelve Months (TTM) Ended
Q1 2026
Q1 2025
March 31, 2026
December 31, 2025
Net income available to common stockholders
$
159,800
$
165,517
$
581,247
$
586,964
Net income available to participating securities
708
228
1,440
960
Non-controlling interests
557
537
2,005
1,985
Interest expense
95,313
84,254
364,386
353,327
Interest expense in unconsolidated joint ventures
6,127
5,626
25,813
25,312
Depreciation and amortization
193,142
183,146
756,929
746,933
Depreciation and amortization of investments in unconsolidated joint ventures
4,468
3,662
17,167
16,361
EBITDA
460,115
442,970
1,748,987
1,731,842
Gain on sale of property, net of tax
(87,094
)
(71,666
)
(233,663
)
(218,235
)
Impairment on depreciated real estate investments
469
63
1,063
657
Net gain on sale of investments in unconsolidated joint ventures
(1,421
)
(145
)
(9,737
)
(8,461
)
EBITDAre
372,069
371,222
1,506,650
1,505,803
Share-based compensation expense
10,700
10,157
28,373
27,830
Business reorganization costs
1,501
2,385
1,888
2,772
Casualty losses and reserves, net (1)
3,935
4,683
10,176
10,924
Other, net (2)
2,344
(1,144
)
7,833
4,345
Adjusted EBITDAre
$
390,549
$
387,303
$
1,554,920
$
1,551,674
(1) Includes our share from unconsolidated joint ventures. (2) Includes interest income, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses. Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)
As of
As of
March 31, 2026
December 31, 2025
Secured debt, net
$
1,384,686
$
1,384,114
Unsecured notes, net
4,400,877
4,398,921
Term loan facility, net
2,456,807
2,451,985
Revolving facility
560,000
145,000
Total Debt per Balance Sheet
8,802,370
8,380,020
Retained and repurchased certificates
(55,499
)
(55,499
)
Cash, ex-security deposits and letters of credit (1)
(182,985
)
(167,472
)
Deferred financing costs, net
47,758
54,208
Unamortized discounts on notes payable
23,271
24,171
Net Debt (A)
$
8,634,915
$
8,235,428
For the TTM Ended
For the TTM Ended
March 31, 2026
December 31, 2025
Adjusted EBITDAre (B)
$
1,554,920
$
1,551,674
Net Debt / TTM Adjusted EBITDAre (A / B)
5.6x
5.3x
(1) Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit. More News From Invitation Homes Inc.
Invitation Home (INVH - Free Report) came out with quarterly funds from operations (FFO) of $0.48 per share, in line with the Zacks Consensus Estimate . This compares to FFO of $0.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of -0.35%. A quarter ago, it was expected that this real estate investment trust focused on single-family rentals would post FFO of $0.48 per share when it actually produced FFO of $0.48, delivering no surprise.
Over the last four quarters, the company has not been able to surpass consensus FFO estimates.
Invitation Home, which belongs to the Zacks REIT and Equity Trust - Residential industry, posted revenues of $734.11 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.58%. This compares to year-ago revenues of $674.48 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Invitation Home shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Invitation Home?While Invitation Home has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Invitation Home was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.48 on $692.48 million in revenues for the coming quarter and $1.94 on $2.78 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Residential is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
American Homes 4 Rent (AMH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This real estate company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +4.4%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.
American Homes 4 Rent's revenues are expected to be $467.48 million, up 1.8% from the year-ago quarter.
For the quarter ended March 2026, Invitation Home (INVH - Free Report) reported revenue of $734.11 million, up 8.8% over the same period last year. EPS came in at $0.48, compared to $0.27 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $688.82 million, representing a surprise of +6.58%. The company delivered an EPS surprise of -0.35%, with the consensus EPS estimate being $0.48.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Invitation Home performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Homes Owned and/or Managed - Wholly owned homes: 85,970 versus 86,094 estimated by three analysts on average.Same Store Average Occupancy: 96.3% compared to the 96.4% average estimate based on three analysts.Same Store Total / Average - Number of Homes: 78,141 compared to the 76,819 average estimate based on three analysts.Revenues- Management fee revenues: $19.85 million compared to the $21.35 million average estimate based on four analysts. The reported number represents a change of -7.3% year over year.Revenues- Rental revenues: $597.7 million compared to the $668.17 million average estimate based on four analysts. The reported number represents a change of +2.1% year over year.Net Earnings Per Share (Diluted): $0.26 versus the four-analyst average estimate of $0.20.View all Key Company Metrics for Invitation Home here>>>
Shares of Invitation Home have returned +13.2% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Invitation Homes Inc (INVH) Q1 2026 Earnings Call Highlights: Navigating Market Challenges with Strategic Moves Despite facing revenue growth challenges, Invitation Homes Inc (INVH) maintains strong occupancy and liquidity while executing strategic share repurchases and home sales. Summary
Same-Store Core Revenue Growth: 1.6% year-over-year.Core Operating Expenses Growth: 5.7% year-over-year.Same-Store NOI: Down 0.3% year-over-year.Renewal Rent Growth: 3.7%.New Lease Rent Growth: Negative 3.0%.Blended Rent Growth: 1.6%.Same-Store Occupancy: Averaged 96.3% for the quarter.Core FFO Per Share: Generally flat year-over-year.AFFO Per Share: Down 2.6% year-over-year.Share Repurchases: Approximately 17 million shares for $439 million in Q1.Disposition of Homes: Sold 483 homes for $206 million.Available Liquidity: $1.3 billion through unrestricted cash and undrawn revolver capacity.Total Indebtedness: Approximately $8.9 billion.Net Debt to Adjusted EBITDA Ratio: 5.6 times.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Invitation Homes Inc INVH achieved a high average occupancy rate of 96.3% for the first quarter, with occupancy improving to 97.1% in April.The company completed a $500 million share repurchase authorization, buying back 17 million shares, and has approved a new $500 million repurchase authorization.INVH's construction lending business has grown to $279 million in commitments, generating attractive returns.The ResiBuilt acquisition has been successfully integrated, delivering over 300 homes to third-party buyers during the quarter.INVH maintains a strong balance sheet with $1.3 billion in available liquidity and a net debt to adjusted EBITDA ratio of 5.6 times. Negative Points Same-store NOI was down 0.3% year-over-year, reflecting challenges in revenue growth and elevated operating expenses.New lease rent growth was negative 3.0% for the quarter, impacted by elevated supply conditions in several markets.Core FFO per share was flat year-over-year, and AFFO per share decreased by 2.6%, indicating pressure on profitability.The company faces legislative uncertainty, which could impact future growth and operations, particularly in the single-family rental sector.INVH's forward pipeline for third-party homebuilder partnerships has been reduced by roughly two-thirds from a year ago, indicating a slowdown in new housing supply initiatives. Q & A Highlights Q: Congrats on the nice start to the year. Just a question on the renewals, where you're sending them out for kind of spring and summer, and what kind of strategy you're using there during this leasing season?
A: Timothy Lobner, Chief Operating Officer, mentioned that they generally don't provide details on renewal rates but are seeing a strong market. They expect May to look similar to April, with renewal rate growth in the mid-3% to mid-4% range throughout the year. The fundamentals are strong, and they are on track with their expectations.
Q: There's a pretty meaningful spread between your renewal rate growth and your new lease rate growth in some of the heavier construction markets. Can you talk about whether you think that narrows over time?
A: Timothy Lobner explained that spreads generally narrow as they progress through peak season. Renewal rates tend to stay flat, while new lease growth trends upward, closing the gap. They are seeing moderation in supply, particularly in build-to-rent deliveries, and expect continued absorption of product across markets.
Q: Given the activity you've had on the disposition program, is that something you would consider ramping? What are the tax implications around that?
A: Dallas Tanner, CEO, stated that they have been good sellers historically and will continue to use dispositions as a measured lever. Jonathan Olsen, CFO, added that while tax rules impose some limitations, they are not a major constraint. The focus is on selling homes to end-users and using proceeds for share repurchases.
Q: Have you seen any change in demand for your third-party management platform or for development funding opportunities given some uncertainty for SFRs within the ROAD to Housing Act?
A: Dallas Tanner noted that while there are inquiries about management opportunities, they are selective. Legislative discussions could create opportunities, but it's too early to predict. They aim to maintain consistent operations and explore opportunities as they arise.
Q: With turnover ticking slightly higher over the last couple of quarters, are you seeing any changes in reasons for move-out that could be driving this?
A: Dallas Tanner mentioned that move-outs related to home purchases have been consistent at 16%-17%, and about 25% are due to life transitions. These numbers have remained stable over the last four quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Invitation Homes remains a 'Strong Buy,' with political headwinds easing and forced divestitures now off the table. INVH's growth will slow due to acquisition restrictions, but capital returns are set to increase, with a 4.2% yield and further buybacks. Rental fundamentals are resilient; blended rental growth is expected at 2%+ for 2026, and tenant stickiness remains high due to affordability gaps.
Key Takeaways INVH shares rose 11.4% in three months, outperforming an industry decline of 2.2% on firm momentum.Invitation Homes is expanding via builder ties, ResiBuilt and construction lending in infill markets.INVH kept its 2026 core FFO outlook at $1.90-$1.98, backed by liquidity, buybacks and dividend growth. Invitation Homes Inc. (INVH - Free Report) shares have risen 11.4% over the past three months against the industry's fall of 2.2%.
The company should benefit from its scaled single-family rental portfolio in infill markets across the Western United States, the Sunbelt and Florida, supported by steady resident demand and improving leasing trends.INVH’s builder relationships and growing construction lending program broaden its capital-light growth options. Technology and value-added services remain an incremental net operating income (NOI) lever. A disciplined capital allocation strategy supports future growth endeavors.
Last month, Invitation Homes reported first-quarter 2026 core funds from operations (FFO) per share of $0.48, in line with the Zacks Consensus Estimate. The quarter reflected firm operating momentum, with higher blended rentals.
Analysts seem bullish on this Zacks Rank #2 (Buy) company, with the Zacks Consensus Estimate for its 2026 FFO per share revised northward by a cent over the past month to $1.95.
Image Source: Zacks Investment Research
Factors Behind INVH's Stock Price Surge: Will This Trend Last?Invitation Homes targets infill locations in high-growth markets with desirable neighborhoods and limited land for new supply. The company continues to lean on an asset-light approach by partnering with homebuilders for build-to-rent deliveries and by using its ResiBuilt platform as an in-house development general contractor. INVH is also reducing its forward purchase commitments and shifting part of its growth toolkit toward construction lending. As of March 31, 2026, the company has binding purchase agreements with certain homebuilders to acquire around 556 newly constructed single-family homes over the next few years, with remaining commitments of around $370 million.
Invitation Homes continues to invest in technology and process enhancements to improve the resident experience and support margins. In first-quarter 2026, other property income increased 10.3% year over year, helping same-store core revenues rise 1.6% despite lower occupancy.
Management remains focused on an investment-grade balance sheet and returning capital when pricing is attractive. As of March 31, 2026, Invitation Homes had $1.304 billion of available liquidity and net debt/TTM adjusted EBITDAre of 5.6X. The company repurchased 17.1 million shares for about $439 in the first quarter and received a new $500 million authorization in late April 2026. With long-term credit ratings of BBB (Stable outlook) from Standard & Poor’s Ratings Services, BBB+ (Stable outlook) from Fitch Ratings and Baa2 (Stable outlook) from Moody’s, Invitation Homes enjoys access to debt at favorable rates. The company is well-positioned to bank on growth scopes.
Solid dividend payouts are arguably the biggest enticement for REIT investors, and INVH remains committed to that. The company has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate was 12.76%, which is encouraging. Invitation Homes maintained its full-year 2026 core FFO outlook of $1.90-$1.98. This level of earnings visibility supports dividend coverage as the company balances repurchases, dispositions and selective investment.
Key Risks for INVHElevated supply and housing alternatives limit pricing power for Invitation Homes. Expense growth and leverage can restrain margins and flexibility over time.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are American Tower (AMT - Free Report) and Cousins Properties (CUZ - Free Report) , carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $10.95, which indicates year-over-year growth of 1.8%.
The consensus estimate for CUZ’s full-year FFO per share is pinned at $2.93, which calls for a 3.2% increase from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Key Takeaways INVH's Q1 2026 core FFO was $0.48 per share, with blended rent growth and better April leasing.INVH operates 109,745 homes in 16 core markets, concentrated in the West, Sunbelt and Florida.INVH has $1.304B liquidity, net debt/EBITDAre 5.6X, plus $439M buybacks and a new $500M auth. Invitation Homes Inc. (INVH - Free Report) sits in a practical corner of real estate — single-family rental homes. This makes the company tied to a simple trend. Many households still want the space and feel of a house, but buying one remains difficult because of high prices, mortgage costs and limited supply in attractive areas. INVH gives investors exposure to that demand through a large, professionally managed rental platform.
Last month, Invitation Homes reported first-quarter 2026 core funds from operations (FFO) per share of 48 cents, in line with the Zacks Consensus Estimate. The quarter reflected firm operating momentum, with higher blended rentals and leasing trends improving in April.
INVH shares have rallied 11.2% over the past three months against the industry’s decline of 0.9%. Analysts also seem bullish on this Zacks Rank #2 (Buy) company, with the Zacks Consensus Estimate for its 2026 and 2027 FFO per share both revised northward by a cent over the past month to $1.95 and $2.02, respectively. Despite the recent run, there seems additional room for further growth of INVH stock.
Image Source: Zacks Investment Research
Factors That Make Invitation Homes Stock a Solid PickStrong Position in High-Demand Housing Markets: Invitation Homes owns and manages a large single-family rental platform, with most of its portfolio located in the Western United States, the Sunbelt and Florida. These are markets where population growth, job opportunities and limited housing supply can support long-term rental demand. As of March 31, 2026, the company’s platform covered 109,745 homes across 16 core markets, giving it meaningful scale.
Builder Partnerships Add Growth Options: INVH is not relying only on buying existing homes. Its relationships with homebuilders, the ResiBuilt platform and the construction lending program give the company more ways to grow without taking on the full cost of traditional expansion. It had agreements to acquire about 556 newly built homes over the next few years, backed by roughly $370 million in remaining commitments.
Technology Is Helping Revenues: Invitation Homes continues to invest in technology and process enhancements to improve the resident experience and support margins. The ProCare application and value-added services such as Smart Home, internet bundle and the HVAC filter program are helping lift other property income. In the first quarter of 2026, other property income rose 10.3% year over year, supporting same-store revenue growth.
Balance Sheet Remains Strong: Management remains focused on an investment-grade balance sheet. As of March 31, 2026, Invitation Homes had $1.304 billion of available liquidity and net debt/TTM adjusted EBITDAre of 5.6X, within its targeted 5.5X-6.0X range. About 90% of its wholly owned homes were unencumbered, supporting refinancing flexibility.
Dividend Support and Buybacks Remain Appealing: Solid dividend payouts are arguably the biggest enticement for REIT investors, and the company remains committed to that. The company has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate was 12.76%, which is encouraging. With full-year 2026 core FFO guidance maintained at $1.90-$1.98 per share, the payout looks supported by the company’s cash flow outlook. Invitation Homes has also been active with buybacks. In the first quarter, it repurchased 17.1 million shares for about $439 million, and it later received a new $500 million authorization. Fewer shares can improve per-share results over time, especially when buybacks are done at attractive prices.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are American Homes 4 Rent (AMH - Free Report) and Prologis, Inc. (PLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus mark for American Homes 4 Rent’s 2026 FFO per share has been revised a cent upward to $1.93 over the past month.
The Zacks Consensus Estimate for Prologis’ 2026 FFO per share suggests a 6.20% increase year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
A month has gone by since the last earnings report for Invitation Home (INVH - Free Report) . Shares have added about 2.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Invitation Home due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Invitation Home before we dive into how investors and analysts have reacted as of late.
Invitation Homes’Q1 FFO Meets Estimates as Revenues Top on HomebuildingInvitation Homes reported first-quarter 2026 core FFO per share of $0.48, in line with the Zacks Consensus Estimate. Core FFO was unchanged from the year-ago quarter.
Total revenues climbed 8.8% year over year to $734.11 million and beat the consensus mark by 6.58%. The quarter reflected firm operating momentum, with higher blended rentals and leasing trends improving in April.
Invitation Homes’ Revenue Beat Comes From a Broader MixThe top-line outperformance was aided by growth in core property revenues and incremental contributions from homebuilding activities. Rental revenues increased to $597.70 million from $585.19 million a year ago, while other property income rose to $72.82 million from $67.88 million.
A notable change in the revenue mix was the addition of $43.75 million in homebuilding revenues, which was absent in the prior-year quarter. Management fee revenues declined year over year to $19.85 million from $21.41 million, but the combination of rental, other income and homebuilding supported overall revenue strength.
Invitation Homes Witnesses a Rise in ExpensesOn the cost side, property operating and maintenance expenses increased 5.8% year over year to $251.13 million. The company also reported a higher interest expense of $95.31 million, up 13.1% from the prior-year quarter, reflecting a heavier financing cost backdrop.
Invitation Homes’ Same-Store Results Show Rent ResilienceOperationally, the Same-Store portfolio posted a 1.6% year-over-year increase in core revenues, aided by a 2.2% rise in the average monthly rent and a 10.3% jump in other income, net of resident recoveries. Those gains were partially offset by a moderation in occupancy versus the year-ago period. Same-store occupancy declined to 96.3% from 97.2% in the prior year period.
Leasing spreads remained mixed. Same-Store renewal rent growth was 3.7%, while Same-Store new lease rent growth was (3%), resulting in blended rent growth of 1.6%. Management noted preliminary April Same-Store blended rent growth of about 2.3%, including a return to positive new lease rent growth for the month.
Invitation Homes Accelerates Capital Returns and SalesCapital allocation was active in the quarter. Invitation Homes repurchased 17.1 million shares for approximately $439 million under its share repurchase program.
The company also leaned into home sales. It was a net seller of 222 wholly owned homes, generating net proceeds of about $116 million.
Invitation Homes’ Balance SheetInvitation Homes exited the first quarter of 2026 with total liquidity of $1.3 billion, including unrestricted cash and undrawn capacity on its revolving credit facility.
Secured and unsecured debt aggregated $8.87 billion as of March 31, 2026, and its Net Debt/TTM adjusted EBITDAre was 5.6X.
Invitation Homes Maintains Its 2026 Outlook and Key AssumptionsInvitation Homes maintained its previously disclosed full-year 2026 outlook. It continues to expect core FFO per share of $1.90-$1.98.
Underlying assumptions call for Same-Store core revenues growth of 1.3%-2.5% alongside Same-Store core operating expenses growth of 3%-4%, implying Same-Store NOI growth of 0.3%-2%. The framework also includes planned capital recycling, with wholly owned dispositions projected at $450-$650 million and wholly owned acquisitions at $150-$350 million.
How Have Estimates Been Moving Since Then?Fresh estimates followed a upward path over the past two months.
VGM ScoresCurrently, Invitation Home has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Invitation Home has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerInvitation Home belongs to the Zacks REIT and Equity Trust - Residential industry. Another stock from the same industry, Equity Residential (EQR - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Equity Residential reported revenues of $779.85 million in the last reported quarter, representing a year-over-year change of +2.5%. EPS of $0.24 for the same period compares with $0.95 a year ago.
Equity Residential is expected to post earnings of $1.01 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
Equity Residential has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
