UiPath (PATH - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this enterprise automation software developer have returned +10.1%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Internet - Software industry, which UiPath falls in, has gained 0.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
UiPath is expected to post earnings of $0.15 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed +74.2%.
The consensus earnings estimate of $0.79 for the current fiscal year indicates a year-over-year change of +9.7%. This estimate has changed +18.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.9 indicates a change of +14.3% from what UiPath is expected to report a year ago. Over the past month, the estimate has changed +3.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, UiPath is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For UiPath, the consensus sales estimate for the current quarter of $397.59 million indicates a year-over-year change of +9.9%. For the current and next fiscal years, $1.78 billion and $1.92 billion estimates indicate +10.4% and +8.2% changes, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time 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.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Company Agrees to Nominate Parsa Kiai and Jeff Rose as Director Candidates at 2026 Annual Meeting of Stockholders
BALTIMORE--(BUSINESS WIRE)--Medifast, Inc. (NYSE: MED), the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system, today announced the company's Board of Directors has agreed to nominate Parsa Kiai and Jeff Rose from Steamboat Capital Partners LLC as independent director candidates to stand for election at the company’s 2026 Annual Meeting of Stockholders, which is provisionally scheduled for May 19, 2026. These nominations are pursuant to a Cooperation Agreement entered into between the company and Steamboat Capital, which beneficially owns above 5% of the company’s outstanding shares.
The Board of Directors has determined that Medifast’s directors Jeffrey Brown and Michael Hoer will not stand for reelection. Medifast Chairman & Chief Executive Officer Dan Chard will continue in his current role, and as previously announced, will step down as CEO on June 1, 2026, while remaining Chairman. Nicholas Johnson, President of Medifast, is expected to succeed Dan Chard as CEO following his departure.
"We are pleased to nominate these talented independent leaders for election to our Board of Directors at the upcoming Annual Meeting. Their experience and perspectives would complement the work already underway to support Medifast’s development and strategic priorities as a metabolic health company," said Mr. Chard. "Our team remains focused on returning the company to profitability, growing our business and independent coach network, and maintaining a rigorous commitment to scientific innovation in this space. We have been executing with discipline against this strategy, and we look forward to a productive collaboration with Steamboat Capital as we continue our efforts to build on that progress and accelerate improvements in financial performance to maximize returns for our stockholders."
Mr. Chard continued, “On behalf of the entire Board, we also want to thank Jeffrey Brown and Michael Hoer for their service on the Board and for their many contributions to Medifast.”
"We are pleased to have reached this agreement through a constructive and collaborative dialogue with the Medifast Board and management team," said Parsa Kiai Managing Partner and Chief Investment Officer at Steamboat Capital. "We have a strong appreciation for the progress the company is making and believe the market is significantly undervaluing the company’s substantial financial and intrinsic assets as well as its long-term potential. We welcome the opportunity to work with the Board to support Medifast’s continued evolution as a business. Medifast’s independent coach network and comprehensive metabolic health system represent a differentiated and compelling platform, and we’re looking forward to working together in a spirit of collaboration to build on this foundation, drive sustainable profitability, and unlock long-term value for stockholders."
Pursuant to the Cooperation Agreement, Steamboat Capital and certain of its affiliates have agreed to certain customary standstill and voting provisions through the company's 2027 Annual Meeting of Stockholders. The agreement will be filed on a Form 8-K with the Securities and Exchange Commission.
About Parsa Kiai
Parsa Kiai is the Managing Partner and Chief Investment Officer of Steamboat Capital. Mr. Kiai has 22 years of investing and corporate finance experience with expertise in capital allocation. He is responsible for the overall direction of the business of Steamboat Capital and managing the portfolios of the company's clients. Mr. Kiai graduated from Cornell University in 2003 and worked at Goldman, Sachs & Co. in the investment banking division before starting at Steamboat Capital in 2012.
About Jeff Rose
Jeffrey Rose is Chief Operating Officer and Chief Financial Officer of Steamboat Capital. Mr. Rose has 23 years of financial experience and has been a member of the New York Bar for over 30 years. Mr. Rose practiced corporate law for seven years, was Chief Financial Officer and General Counsel of Conquest Capital, a $1 billion alternative investment manager and served on the Investment Committee of GAM’s multi-billion dollar of funds prior to joining Steamboat Capital in 2014. Mr. Rose graduated from Queens College in 1990, NYU Law School in 1993 and Columbia Business School in 2002.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit www.MedifastInc.com.
Forward Looking Statements
Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the Company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
Medifast Inc (NYSE: MED - Get Free Report) CEO Daniel Chard acquired 17,678 shares of the stock in a transaction on Friday, March 20th. The stock was bought at an average price of $10.11 per share, with a total value of $178,724.58. Following the transaction, the chief executive officer directly owned 17,678 shares in the company,
Key Takeaways MED is expanding beyond weight loss into metabolic health with a new science-based product line.New offerings target visceral fat reduction while preserving lean mass and muscle health.Management expects profitability improvement to begin in the fourth quarter of 2026 and continue into 2027. Medifast, Inc. (MED - Free Report) is shifting from a traditional weight-loss focus toward a broader metabolic health strategy. A national survey cited by the company found that nearly 94% of American adults are concerned about at least one aspect of metabolic health, while 85% believe metabolic dysfunction can be reversed. This points to a large underserved market and supports the company’s clinically proven, coach-led approach.
Medifast is strengthening its leadership in metabolic health through ongoing research and a new product line built around its metabolic science, with the metabolic synchronization method delivering targeted metabolic reset, improving key processes and body composition in meaningful ways. At its fourth-quarter earnings call, management stated that the GLP-1 “off-ramp” is growing, with a recent study indicating that roughly two-thirds of patients come off the drugs after two years. Many of these individuals regain lost weight, and in some cases, exceed their original weight after stopping treatment.
Medifast is leveraging its metabolic synchronization science platform to develop a new product line aimed at reducing harmful visceral fat while improving body composition, metabolic efficiency and overall health. These products use a proprietary formula of clinically studied ingredients and are specifically designed to support and enhance metabolic health.
In a 16-week clinical study, participants on Medifast’s 5-in-1 metabolic plan reduced visceral fat by 14% while retaining 98% of lean mass, with the company also emphasizing muscle protection. As more consumers, particularly those transitioning off GLP-1 treatments, focus on body composition, the company’s upcoming plan, program and system aim to meet these needs. It emphasizes the quality of weight loss, removing harmful visceral fat while maintaining lean mass. This approach is generating strong excitement and confidence across Medifast’s field teams.
Medifast is seeing early results from its strategy, with improved coach productivity and emerging business bright spots. The company expects profitability improvements to begin in the fourth quarter of 2026 after launching its new product line, with continued earnings growth targeted through 2027 and beyond. Overall, Medifast’s science-led product pipeline appears central to the company’s plan to stabilize the business and work back toward growth and profitability.
Zacks Rundown for MEDThis Zacks Rank #3 (Hold) company’s shares have lost 1.5% in the year-to-date period compared with the industry’s decline of 4.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.43, lower than the industry’s average of 0.75.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MED’s current fiscal-year earnings per share implies a year-over-year decline of 143.9%, while the consensus mark for the next fiscal year implies year-over-year growth of 5%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 133.3%, on average.
US Foods Holding Corporation (USFD - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for US Foods’ current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago actuals. USFD delivered a trailing four-quarter earnings surprise of 2.2%, on average.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.
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NEW YORK, April 14, 2026 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Medifast, Inc. (NYSE: MED) on behalf of the company's shareholders. The investigation seeks to determine whether Medifast's directors breached their fiduciary duties in connection with recent corporate actions.
If you are a shareholder of Medifast and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/medifast-inc/
You may also contact Robert H. Lefkowitz, Esq. either via email at [email protected] or by telephone at 212-725-1000. One of our attorneys will personally speak with you about the case at no cost or obligation.
Purcell & Lefkowitz LLP is a law firm exclusively committed to representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty and other types of corporate misconduct. For more information about the firm and its attorneys, please visit https://pjlfirm.com. Attorney advertising. Prior results do not guarantee a similar outcome.
Key Takeaways MED posts Q1 fiscal 2026 results May 4 after close, with revenue consensus at $73.8M.MED's sales likely stayed weak as active earning coaches fell and client acquisition remained challenged.MED reduced marketing and restructured, but lower revenue, deleverage and R&D may slow margins. As Medifast, Inc. (MED - Free Report) prepares to unveil its first-quarter fiscal 2026 earnings on May 04, after market close, investors are eager to see if the company can beat market expectations.
The Zacks Consensus Estimate for revenues is pegged at $73.8 billion, implying a 36.3% decline from the prior year. Meanwhile, the consensus mark for earnings has been unchanged at a loss of 55 cents per share in the past seven days, though it indicates a decline of 400% from the year-ago period’s actual. MED has a trailing four-quarter negative earnings surprise of 676.5%, on average.
Key Factors to Note for MED's Q1 EarningsMedifast’s top line is likely to have remained under pressure due to continued weakness in its active coach base. Declines in active earning coaches have been a primary driver of revenue contraction, alongside ongoing challenges in client acquisition. The operating environment remains difficult, reflecting broader disruption in the weight-loss category, including the rapid adoption of GLP-1 medications and shifting consumer expectations, which continue to weigh on demand for traditional programs.
The company’s ongoing transition toward a broader metabolic health platform may also have contributed to near-term headwinds. While this strategic repositioning expands Medifast’s long-term opportunity, improvements in underlying metrics have not yet translated into a meaningful impact on revenues. The shift in messaging and program focus requires time to gain traction with both coaches and clients, which likely continued to weigh on sales momentum during the quarter.
Bottom-line performance is also expected to have remained under pressure due to the combined effect of lower revenues and operating deleverage. Although Medifast has taken steps to align its cost structure with current demand, including reducing marketing spending and implementing restructuring actions, these measures may not fully offset the impact of weaker sales volumes. In addition, ongoing efforts to support its strategic transformation, including research and product development initiatives, may have limited the pace of margin recovery.
On the positive side, improving coach productivity could have provided some support to performance. At its last earnings call, management highlighted early signs of higher productivity within a more focused coach network, driven in part by the exit of less productive coaches and increased engagement in coach-led activities. While these improvements may not yet be sufficient to drive revenue growth, they suggest some stabilization in underlying trends.
What the Zacks Model Says About MEDOur proven model does not conclusively predict an earnings beat for MED this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
MED has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With Favorable CombinationHere are three companies you may also want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +3.08% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2026 earnings per share is pegged at 50 cents, implying a 19.4% year-over-year decline. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $5.9 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter. KHC has a trailing four-quarter earnings surprise of 7%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +3.81% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2026 earnings per share is pegged at 29 cents, implying a 61.1% year-over-year surge.
The Zacks Consensus Estimate for quarterly revenues is pegged at $755.2 million, which indicates an increase of 129.4% from the figure reported in the prior-year quarter. CELH has a trailing four-quarter earnings surprise of 45.3%, on average.
Freshpet, Inc. (FRPT - Free Report) currently has an Earnings ESP of +25.37% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2027 earnings per share is pegged at 6 cents, implying a 33.3% year-over-year decline.
The Zacks Consensus Estimate for quarterly revenues is pegged at $291 million, which indicates growth of 10.6% from the figure reported in the prior-year quarter. FRPT has a trailing four-quarter earnings surprise of 50%, on average.
BALTIMORE--(BUSINESS WIRE)--Medifast (NYSE: MED), the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system, today reported results for the first quarter ended March 31, 2026.
First Quarter 2026
Revenue of $76.0 million, with revenue per active earning coach of $5,432 Independent active earning coaches of 14,000 Net loss of $2.1 million, or $0.19 per diluted share ("EPS") Cash, Cash Equivalents, and Investment Securities of $168.9 million with no debt "We are encouraged by the continued progress we are seeing as we execute our metabolic health strategy, including a second consecutive quarter of year-over-year coach productivity growth, strong coach leadership advancement, and high field engagement. These are metrics that have historically been leading indicators of future growth. Backed by our differentiated science, coach-led model, and a disciplined approach to managing costs, we believe we are well positioned to drive improved performance through the remainder of 2026 and a return to sustainable, long-term growth in the years ahead,” said Dan Chard, CEO of Medifast.
First Quarter 2026 Results
First quarter 2026 revenue decreased 34.3% to $76.0 million from $115.7 million for the first quarter of 2025 primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 44.9% to 14,000 compared to 25,400 for the first quarter of 2025, primarily driven by continued pressure with client acquisition reflecting broader challenges in the operating environment, including rapid adoption of GLP-1 medications for weight loss. While the company continues its transformation to focus on metabolic health, it expects the number of active earning coaches to continue to decline in 2026. The average revenue per active earning coach was $5,432, compared to $4,556 for the first quarter last year, an increase of 19.2% which was driven by greater alignment of the company's network of coaches, prioritizing productive coaches and efficient coach network structures.
Gross profit decreased 38.6% to $51.8 million from $84.2 million for the first quarter of 2025. The decrease in gross profit was primarily attributable to lower sales volumes. The company's gross profit as a percentage of revenue was 68.1% compared to 72.8% for the first quarter of 2025. The decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs.
Selling, general, and administrative expenses (“SG&A”) decreased 35.6% to $55.1 million compared to $85.5 million for the first quarter of 2025. The decrease in SG&A was primarily due to a $16.2 million decrease in coach compensation on lower volume and fewer active earning coaches, a $5.6 million decrease in company-led marketing related expenses, a one-time $2.2 million gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, and a $2.0 million decrease in employee compensation resulting from the realignment of the employee base to lower revenue levels. As a percentage of revenue, SG&A decreased 150 basis points year-over-year to 72.4% of revenue, as compared to 73.9% for the first quarter of 2025. The decrease in SG&A as a percentage of revenue was primarily due to approximately 470 basis points of decreased company-led marketing related expenses and 240 basis points of one-time gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, partially offset by 620 basis points of loss of leverage on fixed costs due to lower sales volume.
The company's loss from operations for the period was $3.3 million compared to $1.3 million in the prior year period. As a percentage of revenue, loss from operations was 4.3% for the first quarter of 2026 compared to 1.1% in the prior year comparable period due to the factors described above impacting revenue and SG&A expenses.
Other income decreased 24.3% to $1.4 million from $1.8 million for the first quarter of 2025 primarily due to unrealized gains on the company's investment in LifeMD common stock in the prior year period. The company sold its investment in LifeMD during the quarter ended June 30, 2025.
Income tax expense for the period was $0.2 million, an effective rate of negative 9.3%, as compared to $1.3 million for the first quarter of 2025, an effective rate of 246.8%. Due to the existence of a full valuation allowance against its deferred tax assets recorded as of December 31, 2025, the Company calculated income tax expense for the current period based on actual results for the quarter. As a result, the Company’s income tax provision for the quarter reflects discrete items, primarily state income taxes. The decrease in the effective tax rate was primarily driven by the increased loss incurred in the March 31, 2026 period and the valuation allowance on the net deferred tax assets.
In the first quarter of 2026, the company's net loss was $2.1 million, or $0.19 per share, based on approximately 11.0 million shares of common stock outstanding compared to a net loss of $0.8 million, or $0.07 per diluted share, based on approximately 10.9 million shares of common stock outstanding in the prior year period.
Capital Allocation and Balance Sheet
The company’s balance sheet remains strong with cash, cash equivalents and investment securities of $168.9 million and no debt as of March 31, 2026, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025. Working capital as defined as current assets less current liabilities as of March 31, 2026 was $160.4 million, compared to $158.7 million of working capital at December 31, 2025.
Outlook
The company expects second quarter 2026 revenue to be in the range of $60 million to $80 million and second quarter 2026 loss per share to be in the range of $0.50 to $1.00. The company expects full year 2026 revenue to be in the range of $270 million to $300 million and full year 2026 loss per share to range from $1.55 to $2.75.
Conference Call Information
The conference call is scheduled for today, Monday, May 4, 2026 at 4:30 p.m. ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1759153&tp_key=64a2fbe076 and will be archived online and available through August 4, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone.
A telephonic playback will be available from 7:30 p.m. ET, May 4, 2026 through May 11, 2026. Participants can dial (412) 317-6671 and enter passcode 13759893 to hear the playback.
About Medifast®:
Medifast (NYSE: MED) is the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to help address the challenges of metabolic dysfunction, the company’s holistic approach integrates personalized plans, scientifically developed products and a framework for habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through a targeted reset. Research demonstrates the company’s comprehensive system activates strong and targeted fat burn to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making Healthy Lifestyle Second Nature®. For more information, visit Medifastinc.com.
MED-F
Forward Looking Statements
Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the Company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share amounts)
Three months ended March 31,
2026
2025
Revenue
$
76,044
$
115,728
Cost of sales
24,288
31,483
Gross profit
51,756
84,245
Selling, general, and administrative
55,051
85,507
Loss from operations
(3,295
)
(1,262
)
Other income
Interest income
1,379
1,301
Other income (expense)
(25
)
487
1,354
1,788
Income (loss) before provision for income taxes
(1,941
)
526
Provision for income taxes
181
1,298
Net loss
$
(2,122
)
$
(772
)
Loss per share - basic
$
(0.19
)
$
(0.07
)
Loss per share - diluted
$
(0.19
)
$
(0.07
)
Weighted average shares outstanding
Basic
11,006
10,948
Diluted
11,006
10,948
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands, except par value)
March 31,
2026
December 31,
2025
ASSETS
Current Assets
Cash and cash equivalents
$
71,529
$
89,303
Inventories, net
21,403
20,228
Investments
97,417
77,970
Prepaid expenses and other current assets
6,965
9,066
Total current assets
202,630
201,683
Property, plant and equipment, net of accumulated depreciation
29,643
31,230
Right-of-use assets
12,921
7,232
Other assets
6,852
7,828
TOTAL ASSETS
$
252,046
$
247,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
$
38,264
$
38,359
Current lease obligations
3,920
4,603
Total current liabilities
42,184
42,962
Lease obligations, net of current lease obligations
12,181
6,091
Total liabilities
54,365
49,053
Stockholders' Equity
Common stock, par value $.001 per share: 20,000 shares authorized; 11,119 and 10,991 issued and outstanding at March 31, 2026 and December 31, 2025, respectively
Medifast (MED - Free Report) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.55. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +65.46%. A quarter ago, it was expected that this weight-loss company would post a loss of $0.76 per share when it actually produced a loss of $0.55, delivering a surprise of +27.63%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Medifast, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $76.04 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.11%. This compares to year-ago revenues of $115.73 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 earnings expectations will mostly depend on management's commentary on the earnings call.
Medifast shares have added about 2.2% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Medifast?While Medifast has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Medifast 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 -$0.42 on $76.32 million in revenues for the coming quarter and -$2.00 on $281.69 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 16% 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.
Nomad Foods (NOMD - 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 7.
This frozen foods company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -43.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Nomad Foods' revenues are expected to be $796.16 million, down 0.4% from the year-ago quarter.
Key Takeaways MED beats first-quarter revenue and EPS estimates despite declines tied to fewer OPTAVIA coaches.MED's average revenue per active earning coach rose 19.2%, reflecting stronger productivity.Medifast expects profitability improvement starting in the Q4 of 2026 after the new product launch. Medifast, Inc. (MED - Free Report) reported first-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics saw year-over-year declines.
Medifast’s Quarterly Performance: Key InsightsMedifast posted a loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 55 cents. However, the bottom line deteriorated from a loss of 7 cents per share reported in the year-ago quarter.
Net revenues declined 34.3% year over year to $76 million from $115.7 million, primarily due to a significant reduction in the number of active earning OPTAVIA coaches. Despite the decline, net revenues of this Zacks Rank #3 (Hold) company surpassed the Zacks Consensus Estimate of $73.8 million, reflecting a 3.05% positive surprise.
The company continued to face pressure on its coach network, with active earning coaches declining 44.9% year over year to 14,000 from 25,400 in the same period last year. This drop has been attributed to challenges in client acquisition and the growing popularity of GLP-1 weight-loss medications.
Despite the decline in coach count, productivity improved meaningfully. The average revenue per active earning coach increased 19.2% year over year to $5,432 from $4,556 in the prior-year period.
MED’s Margin & Cost DetailsGross profit declined 38.6% year over year to $51.8 million from $84.2 million in the prior-year period, while gross margin contracted to 68.1% from 72.8% in the prior-year period, mainly due to the deleveraging of fixed costs.
Selling, general and administrative (SG&A) expenses decreased 35.6% year over year to $55.1 million, driven by lower coach compensation, lower volume and fewer active earning coaches with reduced marketing expenses. As a percentage of revenue, SG&A declined 150 basis points to 72.4%, primarily due to lower company-led marketing expenses and a one-time gain from the Maryland Distribution Center sale, partially offset by fixed-cost deleverage from lower sales volume.
The company reported an operating loss of $3.3 million, significantly wider than the loss of $1.3 million in the prior-year quarter.
Medifast’s Financial Health SnapshotAs of March 31, 2026, Medifast maintained a strong balance sheet position with $168.9 million in cash, cash equivalents, and investment securities and no debt.
Sneak Peek Into MED’s Future OutlookThe company expects revenues for the second quarter of 2026 between $60 million and $80 million, with loss per share projected to be between 50 cents and $1.00. Management anticipates continued coach productivity growth, both year over year and sequentially, during the second quarter.
For full-year 2026, revenue is expected to be in the range of $270 million to $300 million, while loss per share is projected to be between $1.55 and $2.75.
The company also expects profitability improvements to begin in the fourth quarter of 2026 following the launch of its new product line, with earnings improvement targeted to continue through 2027 and beyond.
Shares of MED have lost 6.4% over the past three months compared with the industry’s decline of 10.9%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 8.3 and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Kimberly-Clark's current fiscal-year sales indicates growth of 7%, and the same for earnings implies a decline of 3.3% from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 30.8%, on average.
Post Holdings, Inc. (POST - Free Report) operates as a consumer packaged goods holding company in the United States and internationally. POST currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Post Holdings' current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago actuals. POST delivered a trailing four-quarter earnings surprise of 19.6%, on average.
Medifast has continued to report concerning financials. A shrinking coach network lowers revenues, and costs remain too high. A turnaround can't be written off quite yet. MED's coach productivity has improved clearly, and a shift to a metabolic health focus from weight loss could work out. Negative enterprise value clearly implies upside potential; I estimate 47% upside to $18.50 if the company's earnings stabilize over the mid-term. Such upside is speculative, though.
Medifast trades below net cash value, with $15 per share in cash versus a $12.60 share price, creating a compelling value floor. Coach productivity surged 19% YoY to $5,432 per coach, signaling early signs of operational turnaround despite a shrinking coach base. Cost-cutting initiatives, asset sales, and a positive operating cash flow position MED for potential profitability by Q4 2026, with a $30 million savings target.
Body composition, specifically visceral fat levels and lean mass, plays a meaningful role in long-term metabolic health (Serra MC, et al., 2019)Structured plans, habit building, and dedicated coach support work together to produce body composition outcomes that reflect the quality of weight loss, not just its quantity (Arterburn LM, et al., 2019)High-quality protein, nutrient density, and scientifically developed nutrition, combined with structured plans and habit building, support visceral fat reduction and lean mass preservation during weight loss Human accountability and coach support can lead to stronger outcomes in sustained behavior change and weight management success (Arterburn LM, et al., 2019) BALTIMORE, MD, May 15, 2026 (GLOBE NEWSWIRE) -- The success of weight loss programs is often evaluated by how much weight a person loses in the first few weeks or months, but that narrow focus may not reflect what clinical research shows about long-term success. OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, is among the programs backed by this growing body of evidence. Peer-reviewed research across multiple clinical settings has found that structured meal replacement programs can produce meaningful body composition outcomes, including visceral fat reduction and lean mass preservation (Arterburn LM, et al., 2019).
Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA, says, “Clinical data reveals clear distinctions between weight loss and quality weight loss. Preserving lean mass while reducing visceral fat is what drives sustainable metabolic improvement.”
KEY FACTS:
OPTAVIA’s clinical approach is supported by 18 randomized controlled trialsOPTAVIA’s research portfolio includes 30+ scientific research studies and analyses, 40+ peer-reviewed scientific journal publications, and 100+ peer-reviewed scientific presentations and publications The Science Behind Structured Programs
Clinical research has examined structured meal replacement programs across multiple settings, with findings that extend beyond scale weight. A randomized controlled trial published in Obesity Science & Practice found that structured commercial meal replacement programs produced greater reductions in body weight, fat mass, and abdominal fat than a self-directed reduced-calorie approach, concluding that evidence-based commercial programs can be a meaningful tool for adults managing overweight and obesity (Arterburn LM, et al., 2019).
A separate multicenter study found that a structured meal replacement plan supported lean mass preservation alongside significant weight reduction, with fat mass representing 80% or more of total weight lost from 12 weeks onward (Coleman CD, et al., 2015). These findings point to body composition, not scale weight alone, as a meaningful measure of what structured programs can produce.
Body Composition Over the Scale
Body composition, specifically visceral fat levels and lean mass, plays a meaningful role in metabolic health. Visceral fat acts as a metabolically active organ, releasing inflammatory molecules and hormones that affect insulin sensitivity and overall metabolic function. Reducing it while preserving lean mass is central to what quality weight loss can produce. Research shows that a nutritionally complete, higher-protein structured plan is effective in reducing body fat in the visceral depot, a reduction associated with meaningful cardiometabolic improvement (Serra MC, et al., 2019).
OPTAVIA's approach centers on nutrient density, high-quality protein, and scientifically developed products, combined with structured plans, habit building, and dedicated coach support with clinical outcomes that reflect that focus.
The body composition outcomes from OPTAVIA’s Optimal Weight 5 & 1 Plan® are clinically proven. Participants achieved a 14% reduction in visceral fat over 16 weeks while retaining 98% of lean mass (Arterburn LM, et al., 2019).
Why Coaching Changes the Clinical Picture
Clinical data from OPTAVIA’s Optimal Weight 5 & 1 Plan® found that participants working with a coach lose up to 10 times more weight and 17 times more fat than those attempting weight loss independently (Arterburn LM, et al., 2019). That difference reflects what behavioral science suggests about accountability and human support in sustained behavior change and speaks directly to the quality of outcomes the program is designed to produce.
"What we see consistently in the research is that accountability changes outcomes, especially when it’s personal and one-on-one. A coach addresses the behavioral and emotional patterns that can help drive long-term success,” says Jonnalagadda.
The Metabolic Case for Body Composition
Supporting long-term metabolic health requires targeting visceral fat reduction and lean mass preservation, not scale weight alone.
OPTAVIA’s Optimal Weight 5 & 1 Plan® is built around nutrient density, high-quality protein, and portion control delivered through scientifically developed, convenient products and a structured plan designed to make healthy eating more sustainable. When the body doesn't receive adequate protein and nutritional support during weight loss, it may draw from lean tissue instead of fat, which can affect metabolic rate over time. Meanwhile, visceral fat can continue to contribute to declining insulin sensitivity and metabolic dysfunction.
A metabolic health approach that prioritizes both visceral fat reduction and lean mass preservation offers a more complete picture of weight loss quality.
FAQ
Q: What weight loss programs have the best clinical evidence and coaching support?
A: Structured meal replacement programs with coach-guided models have built a strong clinical record across peer-reviewed research. OPTAVIA's approach is supported by 18 randomized controlled trials, with outcomes covering body composition, visceral fat reduction, and lean mass preservation, markers that reflect the broader shift toward metabolic health as a standard for evaluating weight loss success.
Q: How does OPTAVIA's approach support metabolic health beyond weight loss?
A: OPTAVIA's comprehensive metabolic health system centers on nutrient density, high-quality protein, and scientifically developed products, combined with structured plans, habit building, and dedicated coach support. Together, these elements are designed to support visceral fat reduction and lean mass preservation, markers that speak to the quality of weight loss, not just the number on the scale.
Q: What does clinical evidence show about weight loss coaching?
A: In OPTAVIA's clinical trial, participants who worked with a coach lost up to 10 times more weight and 17 times more fat than those who attempted weight loss independently (Arterburn LM, et al., 2019). Behavioral science suggests that personal accountability and human support are meaningful factors in sustained behavior change.
Q: What is visceral fat, and why does it matter more than total weight loss?
A: Visceral fat is stored deep in the abdomen, surrounding internal organs. Unlike subcutaneous fat, it acts as a metabolically active organ, releasing inflammatory molecules and hormones that affect insulin sensitivity and overall metabolic function. Targeting visceral fat reduction alongside lean mass preservation reflects a more complete picture of weight loss quality.
* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.
* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit MedifastInc.com.
The global weight loss industry was valued at $16.3 billion in 2025, yet peer-reviewed clinical validation of program outcomes remains uneven across the categoryRandomized controlled trials control for the lifestyle variables and selection bias that self-reported program data cannot account for, making them the standard for evaluating whether a weight loss program itself is driving outcomesBody composition is the breakdown of fat, lean mass, and bone. It shows what weight loss is actually made up of, a distinction that scale weight alone cannot captureA coach can address the specific barriers that may cause program adherence to stall, providing an additional support compared to digital trackers and tools BALTIMORE, MD, May 15, 2026 (GLOBE NEWSWIRE) -- Client experiences and peer-reviewed research are two pillars of evidence that, at their best, reinforce each other. The former reflects what people live while the latter confirms why it works. OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, is built on both a community of clients who share what the program has done for them and a research portfolio spanning 100+ peer-reviewed presentations and publications that validates those outcomes at a clinical level.
"Randomized controlled trials are the standard in clinical research because they control for variables that self-reported data simply cannot. They tell you whether the program itself is driving the outcome, not lifestyle factors or selection bias," said Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA. "That's the level of rigor we've applied across our studies, and it's why the outcomes we report reflect what the science actually shows."
KEY FACTS
OPTAVIA’s clinical approach is supported by 18 randomized controlled trials, 30+ scientific research studies and analyses, 40+ peer-reviewed scientific journal publications and 100+ peer-reviewed scientific presentations and publicationsA 16-week randomized controlled trial found that individuals on the OPTAVIA Optimal Weight 5 & 1 Plan® retained 98% of lean mass (Arterburn LM, et al., 2019). Promises Outlast Evidence
According to Future Market Insights, the global weight loss and management industry was valued at $16.3 billion in 2025, yet peer-reviewed validation of outcomes remains uneven across the category. Randomized controlled trials require independent external review of methodology, sample sizes, and statistical significance before findings are published, a layer of third-party scrutiny that adds clinical credibility to the real-world results programs report.
Submitting program outcomes to peer review means independent researchers assess whether the methodology and results hold up. For health professionals evaluating programs for their patients, and for consumers sorting through a saturated market, the presence or absence of a documented research trail can become a deciding factor.
Metabolic dysfunction sits at the center of this conversation. The Journal of the American College of Cardiology found poor metabolic health affects more than 90% of adults in the United States. Programs that address only scale weight without considering underlying metabolic processes are increasingly scrutinized by researchers and clinicians for leaving the harder problem untreated, according to the Journal of Obesity.
What the Data Shows After 16 Weeks
One outcome that peer-reviewed research examines is body composition, a measure that distinguishes between fat loss and lean mass loss in ways that scale weight alone cannot capture. A randomized controlled trial published in Obesity Science & Practice found that individuals on the OPTAVIA Optimal Weight 5 & 1 Plan® preserved 98% of lean mass at 16 weeks (Arterburn LM, et al., 2019).
The significance of that figure extends beyond aesthetics: lean mass, which includes muscle, organs, and connective tissue, plays a direct role in metabolic function, mobility, and long-term weight management. Research published in Current Developments in Nutrition found that weight loss interventions can reduce skeletal muscle mass, accounting for 20% to 50% of total weight lost. The authors note this loss is comparable to a decade of human aging, underscoring why lean mass preservation is a clinically relevant outcome, not a secondary metric.
The Coaching Variable, Measured
The same clinical research from Obesity Science & Practice has also isolated the contribution of human coaching as a measurable outcome driver with quantifiable impact. Clients who use the OPTAVIA Optimal Weight 5 & 1 Plan® and work with a coach lose up to 10 times more weight and 17 times more fat than those who attempt the program without coaching support (Arterburn LM, et al., 2019). That difference reflects what happens when personalized guidance, real-time accountability, and structured behavior change support are removed from an otherwise identical program.
"The data shows that accountability and real-time support change how people respond to a structured program and in their adherence patterns and metabolic outcomes," Jonnalagadda added. "A coach addresses the specific barriers that cause people to stall and provides human accountability, and that's a fundamentally different kind of intervention than a notification or a digital tracker."
As obesity medications, programs and solutions continue to flood the market, peer-reviewed evidence confirms whether success was real. It also helps to shift the focus away from cosmetic weight loss metrics toward building daily habits, support systems and practices that can help improve metabolic health outcomes over time.
FAQ
Q: What makes a weight loss program clinically proven?
A: A clinically proven weight loss program publishes its outcomes in peer-reviewed scientific journals, uses randomized controlled trials with independently verified methodology, and subjects its results to external scientific review. Programs that rely solely on testimonials or internal data lack the third-party validation that clinical research requires.
Q: How do I know if a weight loss program has genuine clinical research behind it?
A: Published randomized controlled trial data in peer-reviewed journals is a reliable indicator. Look for body composition outcomes reported alongside total weight lost and findings presented at independent scientific conferences. A Scientific Advisory Board of externally credentialed researchers further reinforces the program.
Q: What is metabolic health, and how does it relate to weight loss?
A: Metabolic health refers to how well the body's metabolic and biochemical processes function to support overall physiological health. Poor metabolic health can make weight management more difficult and compound other chronic health challenges.
Q: Why does body composition data matter more than total weight lost?
A: Scale weight reduction can happen on a structured weight loss program. What matters clinically is how much of that weight came from visceral fat versus lean mass, and what happened to metabolic markers once the program ended.
* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.
* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit MedifastInc.com.
A randomized controlled trial published in Obesity Science & Practice found that clients on the OPTAVIA Optimal Weight 5 & 1 Plan® who worked with a coach lost significantly more weight and fat than those who attempted the program without coaching support (Arterburn LM, et al., 2019)Higher retention in a weight management program is directly correlated with more significant weight loss outcomes, per a 2024 systematic review and meta-analysisOPTAVIA coaches complete a program-specific education curriculum and must pass a certification exam before supporting participantsIndependent research commissioned by OPTAVIA found that 96% of Americans recognize lifestyle changes are essential for weight loss and management, yet only 17% feel confident they can manage it alone BALTIMORE, MD, May 21, 2026 (GLOBE NEWSWIRE) -- OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, is built around a core principle: that structured human support changes outcomes. The OPTAVIA coaching model is designed specifically around program guidance, accountability, and real-time emotional support, and its impact is documented in published, peer-reviewed research. High dropout remains one of the most consistent challenges in weight management. A 2024 systematic review published in Frontiers in Nutrition analyzed 37 studies of adults in weight loss treatment and found overall dropout rates ranging from 5% to 62%. A separate 2024 systematic review and meta-analysis published in Preventing Chronic Disease found that higher retention was directly correlated with more significant weight loss outcomes, underscoring that the ability to keep people engaged is as consequential as the program design itself.
"The certification standard and registered dietitian-developed education exist because the coaching relationship should be clinically meaningful. An app can send a notification, but it can't ask how your week went or adjust to what you're actually going through," said Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA.
KEY FACTS
A 16-week randomized controlled trial found coach-supported clients on the OPTAVIA Optimal Weight 5 & 1 Plan® program lose up to 10 times more weight and 17 times more fat compared to the self-directed control group (Arterburn LM, et al., 2019)There was an average weight loss of 12 pounds on the Optimal Weight 5 & 1 Plan® over an average of 12 weeks, according to the same study (Arterburn LM, et al., 2019) What OPTAVIA Coaches Do
OPTAVIA coaches are accountability partners, real people who guide participants through the program with emotional support and personalized encouragement via texting and phone calls. They are not healthcare professionals and do not provide healthcare advice or clinical guidance. They provide a coaching relationship: helping participants stay on track, work through setbacks, and build the consistency that the program is designed to support.
OPTAVIA coaches complete a program-specific education curriculum developed internally by a team of registered dietitian nutritionists and behavior change experts, focused on how to guide participants through the OPTAVIA program. Coaches must then pass a program certification exam before supporting participants. This internal framework is designed to ensure coaches are prepared for the accountability and support role they play. This approach provides a human layer that research shows makes a meaningful difference in program outcomes.
Coaching Produces Measurable Outcomes
Clinical research has isolated the contribution of human coaching as a quantifiable driver of weight management outcomes. Independent IPSOS research commissioned by OPTAVIA in June 2023 found that 96% of Americans recognize lifestyle changes are essential for weight loss and management, yet only 17% feel confident they can manage it on their own.* The coaching relationship is designed to fill the space between knowing what needs to happen and sustaining the behavior to make it happen.
Clients on the OPTAVIA Optimal Weight 5 & 1 Plan® who work with a coach lose up to 10 times more weight and 17 times more fat than those who attempt the program without coaching support, according to a randomized controlled trial published in Obesity Science & Practice (Arterburn LM, et al., 2019). Those outcomes reflect the cumulative effect of personalized guidance, real-time accountability, and structured behavior change support in weight management programs.
"Behavior change happens in the moments when motivation drops or routines break down," Jonnalagadda said. "A coach who knows your program and your progress can provide the kind of real-time, personalized support that a static program isn't designed to offer."
As weight loss medications, programs, and other solutions continue to expand across the industry, coaching becomes a valuable currency in navigating a saturated market. A coaching relationship that influences adherence patterns, accountability, and support that contributes to long-term metabolic health outcomes is as reliable as the accountability structure behind it. OPTAVIA’s model provides consumers with structure and a human support layer to guide participants through the program.
* Independent IPSOS research commissioned by OPTAVIA, June 2023.
FAQ
Q: What do OPTAVIA coaches do?
A: OPTAVIA coaches are accountability partners who guide participants through the OPTAVIA program, providing encouragement, real-time support, and personalized guidance via texting and phone calls. They are not healthcare professionals and do not provide medical or clinical advice.
Q: What education do OPTAVIA coaches complete?
A: OPTAVIA coaches complete a program-specific education curriculum developed internally by a team of registered dietitians, nutritionists and behavior change experts, focused on how to support participants through the OPTAVIA program. Coaches must pass a program certification exam before supporting participants.
Q: Why does social support matter in a weight management program?
A: Sustained behavior change is difficult without accountability. Social support can help participants maintain nutrition adherence, navigate setbacks, and build the consistent habits that weight management programs are designed to support.
Q: Do coached weight loss programs produce stronger results than self-directed ones?
A: Research on the OPTAVIA program found that clients who work with a coach lose significantly more weight and fat than those who attempt the program without coaching support (Arterburn LM, et al., 2019). That difference reflects what personalized guidance, real-time accountability, and consistent encouragement add to an otherwise identical structured program.
Q: What should consumers look for when evaluating a weight loss program's clinical credibility?
A: Published randomized controlled trial data in peer-reviewed journals is a reliable indicator. Look for body composition outcomes reported alongside total weight lost, findings presented at independent scientific conferences, and a Scientific Advisory Board composed of externally credentialed researchers. The presence or absence of that research trail signals meaningful differences in program rigor.
* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.
* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit medifastinc.com.
70% of users discontinued use of lifestyle behavior and health apps within the first 100 days (Kidman PG, et al., 2024)Early weight loss at week four is a strong predictor of clinically relevant outcomes, with research identifying additional counseling and support as key for those showing lower early progress (Coleman CD, et al., 2023)Accountability and self-monitoring are among the most commonly reported factors in sustaining weight loss results, according to a research survey of OPTAVIA coaches and clients (Coleman CD, et al., 2022)In a peer-reviewed clinical trial, participants working with a coach lost up to 10 times more weight and 17 times more fat, and achieved a 14% reduction in visceral fat with 98% lean mass retention (Arterburn LM, et al., 2019) BALTIMORE, MD, May 21, 2026 (GLOBE NEWSWIRE) -- OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system supported by 18 randomized controlled trials and more than 100 peer-reviewed scientific presentations and publications, meets a higher clinical standard than app-only programs. Published clinical data shows that individuals who work with a coach lose up to 10 times more weight and 17 times more fat than those who attempt weight loss on their own (Arterburn LM, et al., 2019). As of 2025, 313 million people used health apps to track fitness and nutrition, and research documents meaningful challenges in sustained engagement with those platforms, a pattern that points to the role human support plays in weight management success (Curry, 2026).
Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA, explains the difference between the two categories and says, “The question of whether technology can replace human support in weight management has been answered by the data. What the research shows, consistently, is that personal accountability and ongoing human connection change outcomes in ways that an app alone simply can’t.”
KEY FACTS:
OPTAVIA’s clinical approach is supported by 18 randomized controlled trialsOPTAVIA’s research portfolio includes 30+ research studies and analyses, 40+ peer-reviewed scientific journal publications, and 100+ peer-reviewed scientific presentations and publications The Connection Between Coaching, Adherence, and Outcomes
Adherence is a consistent challenge in weight management. One study from the Journal of Medical Internet Research found that 70% of users discontinued use of lifestyle behavior and health apps within the first 100 days (Kidman PG, et al., 2024). Research suggests that when setbacks occur without a support mechanism in place, sustained engagement in health and wellness practices becomes difficult.
OPTAVIA's own clinical data documents the role of structured support in adherence. A secondary data analysis published in Obesity Science & Practice found that early weight loss, specifically at week four, was a strong predictor of clinically relevant outcomes, and that individuals showing lower early progress were identified as candidates for additional counseling and support (Coleman CD, et al., 2023).
A separate research survey of OPTAVIA coaches and clients who had maintained weight loss for a year or more found that accountability and self-monitoring were among the most commonly reported factors in sustaining results (Coleman CD, et al., 2022). In OPTAVIA's clinical trial, participants working with a coach lost up to 10 times more weight and 17 times more fat than those who attempted weight loss independently (Arterburn LM, et al., 2019).
What the Evidence Shows About Weight Loss Outcomes
Scale weight is the metric many programs report because it is the easiest one to show. An individual who loses eight pounds in two weeks might share that number as a testimonial or review on a website. What it does not capture is whether that weight came from fat or lean mass, what happened to visceral fat, or whether the loss was sustained six months later.
In OPTAVIA's clinical trial, participants achieved a 14% reduction in visceral fat over 16 weeks while retaining 98% of lean mass, outcomes that offer a more complete picture of weight loss quality than scale weight alone (Arterburn LM, et al., 2019). Programs that document these outcomes in peer-reviewed research provide individuals with concrete data to evaluate beyond scale weight alone.
How to Evaluate Any Program’s Evidence Base
Evaluating a weight loss program on clinical evidence comes down to a few practical questions, such as:
Does the weight loss program provide data from randomized controlled trials? Are the outcomes reported on body composition or just total weight lost? Is the support model built around a real person or an automated system? The answers vary considerably across programs. Programs that publish their outcomes in peer-reviewed journals provide individuals with concrete data to evaluate, rather than relying solely on marketing claims.
FAQ
Q: What does the research show about weight loss coaching?
A: Studies show personal accountability and ongoing human support may lead to stronger outcomes in sustained behavior change. In weight management specifically, coach-guided programs have documented meaningful differences in weight loss and body composition outcomes compared to self-directed efforts, with adherence and early progress identified as key predictors of long-term success (Arterburn LM, et al., 2019).
Q: How does coaching support adherence in a weight loss program?
A: Research shows that early progress is a meaningful predictor of long-term outcomes and that individuals showing lower early weight loss benefit from additional counseling and support (Coleman CD, et al., 2023).
Q: What body composition outcomes should I look for in a weight loss program?
A: Visceral fat reduction and lean mass preservation are meaningful markers of weight loss quality that go beyond what scale weight captures. Programs that document these outcomes in peer-reviewed research give individuals concrete data to evaluate, specifically whether weight loss reflects fat reduction or loss of lean tissue.
Q: What should I look for when evaluating a weight loss program's evidence base?
A: Peer-reviewed publications from randomized controlled trials, outcomes reported on body composition rather than scale weight alone, and documented data on the role of coaching or support in clinical results are meaningful standards. Programs that publish this data give individuals concrete evidence to evaluate rather than relying on marketing claims.
* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.
* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit medifastinc.com.
BALTIMORE--(BUSINESS WIRE)--Medifast, Inc. (NYSE: MED) today announced that its Board of Directors has formally appointed Nicholas Johnson as Chief Executive Officer, effective June 1, 2026. Johnson will succeed Dan Chard as CEO, who will continue to serve as Chairman of the Board. The appointment follows the leadership transition plan that the company disclosed in January and reflects the Board's confidence in Johnson's leadership and the company's strategic direction. Chard will remain active.
For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Medifast (MED - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.
Medifast is one of 173 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Medifast is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for MED's full-year earnings has moved 8.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, MED has returned 18.9% so far this year. In comparison, Consumer Staples companies have returned an average of 4.7%. This shows that Medifast is outperforming its peers so far this year.
New York Times Co. (NYT - Free Report) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 9.8%.
In New York Times Co.'s case, the consensus EPS estimate for the current year increased 5.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Medifast is a member of the Food - Miscellaneous industry, which includes 40 individual companies and currently sits at #197 in the Zacks Industry Rank. This group has lost an average of 6.5% so far this year, so MED is performing better in this area.
On the other hand, New York Times Co. belongs to the Publishing - Newspapers industry. This 1-stock industry is currently ranked #7. The industry has moved +1.8% year to date.
Investors with an interest in Consumer Staples stocks should continue to track Medifast and New York Times Co.. These stocks will be looking to continue their solid performance.
A month has gone by since the last earnings report for Medifast (MED - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Medifast due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for MEDIFAST INC before we dive into how investors and analysts have reacted as of late.
Medifast’s Q1 Loss Narrower Than Expected, Revenues Decline Y/YMedifast reported first-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics saw year-over-year declines.
Medifast’s Quarterly Performance: Key InsightsMedifast posted a loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 55 cents. However, the bottom line deteriorated from a loss of 7 cents per share reported in the year-ago quarter.
Net revenues declined 34.3% year over year to $76 million from $115.7 million, primarily due to a significant reduction in the number of active earning OPTAVIA coaches. Despite the decline, net revenues of the company surpassed the Zacks Consensus Estimate of $73.8 million, reflecting a 3.05% positive surprise.
The company continued to face pressure on its coach network, with active earning coaches declining 44.9% year over year to 14,000 from 25,400 in the same period last year. This drop has been attributed to challenges in client acquisition and the growing popularity of GLP-1 weight-loss medications.
Despite the decline in coach count, productivity improved meaningfully. The average revenue per active earning coach increased 19.2% year over year to $5,432 from $4,556 in the prior-year period.
MED’s Margin & Cost DetailsGross profit declined 38.6% year over year to $51.8 million from $84.2 million in the prior-year period, while gross margin contracted to 68.1% from 72.8% in the prior-year period, mainly due to the deleveraging of fixed costs.
Selling, general and administrative (SG&A) expenses decreased 35.6% year over year to $55.1 million, driven by lower coach compensation, lower volume and fewer active earning coaches with reduced marketing expenses. As a percentage of revenue, SG&A declined 150 basis points to 72.4%, primarily due to lower company-led marketing expenses and a one-time gain from the Maryland Distribution Center sale, partially offset by fixed-cost deleverage from lower sales volume.
The company reported an operating loss of $3.3 million, significantly wider than the loss of $1.3 million in the prior-year quarter.
Medifast’s Financial Health SnapshotAs of March 31, 2026, Medifast maintained a strong balance sheet position with $168.9 million in cash, cash equivalents, and investment securities and no debt.
Sneak Peek Into MED’s Future OutlookThe company expects revenues for the second quarter of 2026 between $60 million and $80 million, with loss per share projected to be between 50 cents and $1.00. Management anticipates continued coach productivity growth, both year over year and sequentially, during the second quarter.
For full-year 2026, revenue is expected to be in the range of $270 million to $300 million, while loss per share is projected to be between $1.55 and $2.75.
The company also expects profitability improvements to begin in the fourth quarter of 2026 following the launch of its new product line, with earnings improvement targeted to continue through 2027 and beyond.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -61.91% due to these changes.
VGM ScoresAt this time, Medifast has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Medifast has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerMedifast belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, Sysco (SYY - Free Report) , has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Sysco reported revenues of $20.52 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.94 for the same period compares with $0.96 a year ago.
Sysco is expected to post earnings of $1.51 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Sysco has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Declining estrogen during perimenopause accelerates visceral fat accumulation and lean muscle loss, two outcomes that standard weight management programs are not designed to address together (Szeliga A, et al., 2026)Women in midlife who focus on scale weight alone may be measuring the wrong thing: visceral fat and lean mass retention are the markers that reflect metabolic progressSleep disruption, elevated stress, and hormonal variability during midlife create conditions where self-directed programs stallThe coaching gap in weight loss outcomes becomes more significant during hormonal transition, when behavioral disruptions make self-directed programs harder to sustain BALTIMORE, MD, June 11, 2026 (GLOBE NEWSWIRE) -- Women entering perimenopause often report that weight management stops working the way it used to. As estrogen levels decline, fat migrates towards the abdomen, insulin sensitivity decreases, lean muscle is lost, and metabolic dysfunction accelerates. Advice from programs that prioritize scale weight may lead to accelerated lean mass loss alongside fat. Clinically supported metabolic health programs like OPTAVIA are designed to target visceral fat while preserving lean mass.
“Midlife weight gain is not a discipline problem,” Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA, says. “It’s a metabolic shift that accelerates visceral fat accumulation and lean mass loss. The majority of the programs available to women going through perimenopause and menopause weren’t exactly designed to address either of those things directly.”
KEY FACTS:
OPTAVIA's Optimal Weight 5 & 1 Plan® produces a 14% reduction in visceral fat in 16 weeks, according to peer-reviewed research (Arterburn LM, et al., 2019)The same study found participants who work with a coach lose up to 10 times more weight and 17 times more fat when compared to independent efforts and the Optimal Weight 5 & 1 Plan® enables participants to retain 98% of lean mass during weight loss (Arterburn LM, et al., 2019)OPTAVIA’s clinical approach is supported by 18 randomized controlled trialsOPTAVIA’s research portfolio includes 30+ research studies and analyses, 40+ peer-reviewed scientific journal publications, and 100+ peer-reviewed scientific presentations and publications What Happens to Metabolism After 40
The metabolic changes associated with perimenopause begin in most women between their early 40s and mid-50s, years before the final menstrual period (Patel P, et al., 2025). The eating habits that kept weight stable for years stop producing the same results, and fat starts accumulating around the midsection. Visceral fat acts as a metabolically active organ, releasing inflammatory molecules and hormones that affect insulin sensitivity and overall metabolic function, making it a meaningful marker of metabolic health during any period of physiological change.
Without the intake of adequate protein and resistance exercise, lean muscle mass can also decline during this period (Szeliga A, et al., 2026). Muscle drives resting metabolic rate, so losing it compounds the metabolic slowdown that hormonal changes are already causing.
Why Body Composition Matters More than Scale Weight After 40
The number on the scale is an unreliable detector of progress for women going through hormonal transitions. A woman can lose scale weight while simultaneously losing lean mass and not addressing visceral fat. It is a metabolic outcome that may look like success when it actually represents a less favorable metabolic outcome.
The metrics that actually track meaningful progress include the following:
Visceral fat levelsLean mass retentionMuscle healthInsulin sensitivity For women in midlife, understanding these metrics can provide a clearer picture to help maintain a healthy lifestyle during this period.
The Role of Coaching During Hormonal Transition
Perimenopause and menopause bring behavioral challenges alongside the physiological ones. Sleep disruption, stress, mood variability, and the general demands of midlife create conditions where self-directed programs tend to stall. During high-stress life periods, behavioral science explains that human support and accountability produce better outcomes. Published clinical data shows participants working with a coach lose up to 10 times more weight and 17 times more fat than those going it alone (Arterburn LM, et al., 2019).
Jonnalagadda says, "Adding a coaching relationship to support your nutrition and exercise routines matters more during such transitions. When sleep is disrupted and stress is elevated, having a real person in your corner changes outcomes in ways that an app or a meal plan alone cannot.”
What a Metabolically Appropriate Program Looks Like
For women navigating perimenopause and menopause, the program criteria that matter are distinct from standard weight loss benchmarks. A program should focus on protecting lean mass through adequate protein and structured nutrition. It needs to target visceral fat specifically rather than treating all weight loss as equivalent. It also requires a human support layer capable of accountability and engagement through the behavioral variability that hormonal transition creates.
OPTAVIA's comprehensive metabolic health system is grounded in Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through a targeted reset, addressing visceral fat reduction and lean mass preservation together. For women navigating midlife metabolic changes, that combination directly addresses body composition markers relevant to this period.
OPTAVIA recommends that all individuals contact their healthcare provider before starting and throughout their weight loss journey, particularly women managing hormonal changes or related health conditions.
FAQ
Q: What is the best weight loss program for women dealing with menopause weight gain?
A: Programs that address visceral fat reduction and lean mass preservation may target the metabolic changes menopause causes.
Q: Why is weight loss harder during perimenopause and menopause?
A: Declining estrogen is associated with shifts in fat distribution toward the abdomen and changes in lean muscle and insulin sensitivity. During this period, adequate protein intake and structured nutrition support become particularly relevant for maintaining lean mass and metabolic function.
Q: What weight loss program is most effective for reducing belly fat after menopause?
A: Visceral fat is stored deep in the abdomen, surrounding internal organs, where it acts as a metabolically active organ affecting insulin sensitivity and overall metabolic function. Programs built around nutrient density, high-quality protein, and scientifically developed products are designed to support visceral fat reduction and lean mass preservation together (Arterburn LM, et al., 2019).
Q: Can a weight loss program help preserve muscle mass during menopause?
A: Programs with adequate protein and structured nutrition support lean mass retention during weight loss. Preserving lean mass matters because muscle drives resting metabolic rate, and losing it can make it more challenging to sustain results once the program ends.
Q: What role does coaching play in weight loss for women over 40?
A: The behavioral challenges of midlife, including changes in sleep, stress, and daily routines, can make sustained engagement with a weight management program more difficult. A dedicated coach can provide accountability and support through the habit-building process, helping individuals stay engaged with their nutrition and lifestyle goals.
* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.
* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit www.MedifastInc.com.
The weight loss and weight management market was valued at $31.07 billion in 2025 A program can describe its results as clinically meaningful without specifying what was measured, how it was measured, or whether the measurement tool was capable of capturing the outcome being claimedDXA scanning distinguishes fat mass, lean mass, and bone mineral content with greater precision than BMI calculations and just weight number on a scaleStudy completion rates carry significant weight in how research findings should be interpreted BALTIMORE, MD, June 11, 2026 (GLOBE NEWSWIRE) -- Subscription health programs compete on outcome language as much as they compete on results. Terms like "clinically studied," "science-backed," "proven," and "evidence-based" appear across a wide spectrum of programs, from programs with published randomized controlled trials to those with ingredient-level pilot data. However, many of those terms are used without specifying what was measured, by whom, or with what tools. The difference between those two categories is substantial, and it only becomes visible when consumers know what to look for. OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, has built its research portfolio on peer-reviewed randomized controlled trials with findings verified through clinical gold-standard body composition measurement.
"The clinical evidence behind our program is substantial because it documents real outcomes in real participants," said Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA. "When people can find that research easily, it builds trust and credibility while also changing the conversation about what a science-backed program actually looks like."
KEY FACTS
98% lean mass retained by individuals on the OPTAVIA Optimal Weight 5 & 1 Plan® at 16 weeks, per a randomized controlled trial (Arterburn LM, et al., 2019)10 times more weight and 17 times more fat lost by coach-supported clients vs. the self-directed control group in the same study (Arterburn LM, et al., 2019) Claims Made in a $31 Billion Industry
According to Research and Markets, the weight loss and diet management market was valued at $31.07 billion in 2025 and is expected to surpass $45 billion by 2030. As the market expands, so do its claims. Weight loss programs operate in a market regulated by both the FTC and the FDA, but within that framework, marketing terms like 'clinically studied,' 'science-backed,' and 'evidence-based' do not carry standardized evidentiary definitions. A program can apply those terms to a full randomized controlled trial or to a single ingredient-level pilot study, and both uses may be technically permissible depending on how the claim is structured. The terms don't require specifics on what was measured, how it was measured, or if the measurement tool could capture the claimed outcome.
Scale weight is one of the most common reporting metrics for weight loss programs because it is easy to collect, but it does not distinguish between fat lost and muscle lost, and it does not capture what is happening to visceral fat stored around organs. Two programs can report identical pounds lost while producing meaningfully different effects on the body's metabolic composition. The difference only becomes visible when measurement goes deeper than a scale.
Dual-energy X-ray absorptiometry (DXA) scanning is the clinical gold standard for body composition assessment. This is because DXA scanning distinguishes fat mass, lean mass, and bone mineral content with greater precision than BMI calculations and just weight number on a scale. A 16-week randomized controlled OPTAVIA trial published in Obesity Science & Practice used DXA throughout to track body composition changes in 198 participants (Arterburn LM, et al., 2019). This methodological choice makes the reported outcomes verifiable in a way that self-reported data is not.
What a 92.3% Completion Rate Actually Signals
Study completion rates carry significant weight in how research findings should be interpreted. In weight loss research, high completion rates add credibility to published outcomes because they indicate the study reflects a broad range of participant experiences.
The trial published in Obesity Science & Practice reported a 92.3% completion rate across 198 enrolled participants over 16 weeks (Arterburn LM, et al., 2019). The published outcomes of this study included 98% lean mass retained and a 14% reduction in visceral fat. High completion rates like the one in this study indicate results reflect a broad range of participant experiences, not only those most likely to succeed.
Subscription health programs will continue to proliferate, and so will the outcome language that accompanies them. Trials with high completion rates, DXA-verified body composition outcomes, and correlation between coaching engagement and results represent a documentable standard of evidence, one that scale weight reporting and self-reported data cannot replicate. For consumers evaluating programs on those terms, the methodological record provides a reliable signal.
FAQ
Q: What does "clinically studied" actually mean on a weight loss program's marketing?
A: It can apply to anything from a full randomized controlled trial to a single ingredient tested in isolation.
Q: How do I find a weight loss program with genuine peer-reviewed research behind it?
A: Look for programs that publish findings in peer-reviewed journals using randomized controlled trials, not observational data or ingredient-level studies. Check whether body composition outcomes are reported alongside total weight lost, what measurement tools were used, and what the study completion rate was. A Scientific Advisory Board composed of externally credentialed researchers is a further indicator of independent scientific oversight.
Q: Why does body composition measurement matter more than scale weight in weight loss research?
A: Scale weight does not distinguish between fat loss and lean mass loss, and it does not capture changes in visceral fat stored around organs. Programs that use DXA scanning throughout a study are measuring outcomes that scale weight alone can't verify.
Q: What does a high study completion rate indicate about a weight loss program's research?
A: High completion rates add credibility to published outcomes because they indicate results that reflect a broad range of participant experiences, not only those most likely to succeed regardless of the intervention.
* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.
* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit www.MedifastInc.com.
Trimble Inc. (NASDAQ:TRMB – Get Free Report) CEO Robert Painter sold 7,500 shares of the firm’s stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $66.94, for a total value of $502,050.00. Following the transaction, the chief executive officer directly owned 11,897 shares of the company’s stock, valued at approximately $796,385.18. This represents a 38.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Trimble Stock Up 2.4% Shares of NASDAQ:TRMB opened at $69.29 on Friday. The firm has a market cap of $16.08 billion, a P/E ratio of 39.59, a P/E/G ratio of 2.26 and a beta of 1.53. The company has a quick ratio of 0.96, a current ratio of 1.09 and a debt-to-equity ratio of 0.24. Trimble Inc. has a 12-month low of $55.55 and a 12-month high of $87.50. The business has a fifty day simple moving average of $66.68 and a 200 day simple moving average of $73.96.
Trimble (NASDAQ:TRMB – Get Free Report) last announced its earnings results on Tuesday, February 10th. The scientific and technical instruments company reported $1.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.04. The business had revenue of $969.80 million during the quarter, compared to analyst estimates of $949.97 million. Trimble had a return on equity of 11.18% and a net margin of 11.82%.Trimble’s revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period last year, the company earned $0.89 EPS. Trimble has set its FY 2026 guidance at 3.420-3.620 EPS and its Q1 2026 guidance at 0.690-0.740 EPS. Analysts predict that Trimble Inc. will post 2.37 earnings per share for the current year.
Institutional Inflows and Outflows Several hedge funds have recently made changes to their positions in TRMB. SG Americas Securities LLC increased its position in Trimble by 30.9% in the 3rd quarter. SG Americas Securities LLC now owns 96,052 shares of the scientific and technical instruments company’s stock valued at $7,843,000 after buying an additional 22,650 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd increased its position in Trimble by 31.5% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 146,283 shares of the scientific and technical instruments company’s stock valued at $11,944,000 after buying an additional 35,015 shares in the last quarter. Essex Investment Management Co. LLC increased its position in Trimble by 168.8% in the 3rd quarter. Essex Investment Management Co. LLC now owns 45,669 shares of the scientific and technical instruments company’s stock valued at $3,729,000 after buying an additional 28,676 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its position in Trimble by 123.4% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 237,294 shares of the scientific and technical instruments company’s stock valued at $19,375,000 after buying an additional 131,056 shares in the last quarter. Finally, Barclays PLC increased its position in Trimble by 17.5% in the 3rd quarter. Barclays PLC now owns 839,625 shares of the scientific and technical instruments company’s stock valued at $68,555,000 after buying an additional 124,772 shares in the last quarter. 93.21% of the stock is owned by institutional investors.
Analysts Set New Price Targets Several research firms have recently weighed in on TRMB. Zacks Research lowered Trimble from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 13th. Robert W. Baird lowered their price objective on Trimble from $90.00 to $85.00 and set an “outperform” rating for the company in a research report on Monday, March 30th. Wall Street Zen lowered Trimble from a “buy” rating to a “hold” rating in a research report on Saturday, April 4th. Weiss Ratings reissued a “hold (c)” rating on shares of Trimble in a research report on Wednesday, January 21st. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Trimble in a research report on Wednesday, February 11th. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $92.78.
Get Our Latest Stock Analysis on TRMB
Trimble Company Profile (Get Free Report)
Trimble Inc (NASDAQ: TRMB) is a technology company that develops hardware, software and services to improve the productivity and connectivity of customers across the construction, agriculture, geospatial, transportation and logistics, and natural resources sectors. The company’s offerings center on advanced positioning technologies — including GNSS/GPS receivers, inertial sensors and laser scanning — integrated with application-specific software and cloud services to enable precise measurement, modeling, machine control and workflow automation for field and office operations.
Trimble’s product portfolio spans surveying and geospatial instruments (total stations, mobile mapping and terrestrial laser scanners), construction solutions (machine control systems, site positioning and estimating), agriculture systems (auto-steer, guidance and application-control platforms), and fleet and transportation telematics.
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WESTMINSTER, Colo., April 22, 2026 /PRNewswire/ -- Trimble (Nasdaq: TRMB) will hold a conference call on Wednesday, May 6, 2026 at 8 a.m. ET to review its first quarter 2026 results. The call will be broadcast live on the web at https://events.q4inc.com/attendee/544327873. Analysts who wish to dial into the call may do so by first registering at https://events.q4inc.com/analyst/544327873?pwd=s5ilhwSm. Upon registration, dial-in details will be sent via email to the registrant.
About Trimble
Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it is helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: www.trimble.com.
CHICAGO--(BUSINESS WIRE)--AArete, a leading global management and technology consulting firm, announced today that founder and CEO Loren Trimble has been named a recipient of a Lifetime Achievement award from Consulting Magazine as part of its Top Consultants 2026 awards. The award will honor Trimble’s four-decade career in consulting and 18 years leading AArete.
"Excellence is a core value he lives out every single day. He built this firm on a foundation of genuine care for clients and colleagues alike, and our culture flows directly from his leadership," said Maulik Bhagat, executive vice president at AArete.
Share Trimble will receive the award during a June 25 ceremony at the Marriott Marquis in New York City. Consulting Magazine’s Top Consultants 2026 awards spotlight the consulting profession’s most influential senior leaders, whose work produces measurable client impact, advances firm capabilities and shapes the industry.
“On behalf of all of us at AArete, I want to congratulate Loren on this well-deserved honor,” said Maulik Bhagat, executive vice president and senior managing director at AArete. “Anyone who has worked with him knows that excellence is a core value he lives out every single day. He built this firm on a foundation of genuine care for clients and colleagues alike, and our culture flows directly from his leadership. Loren has made an enduring mark on this industry and on his clients, and Consulting Magazine could not have chosen a more worthy recipient.”
A recognized leader in the consulting sector and a previous recipient of leadership awards from Consulting Magazine and Consulting.us, Trimble has impacted countless clients over his career. He began his career with Arthur Andersen in 1986, becoming a partner and establishing the company’s Strategic Sourcing Services division during his 16 years at the firm. In 2002, he joined Huron Consulting Group as managing director and strategic sourcing practice lead.
Trimble established AArete in 2008 with the goal of building a consulting firm that nurtures long-term client partnerships, choosing the firm’s name after a Greek word that embodies excellence, goodness and virtue. Over the past 18 years, AArete has grown into a global management and technology consulting firm that is more than 500 team members strong. In 2025, AArete entered a strategic partnership with Parthenon Capital to accelerate solution innovation for clients and position the firm for transformational growth.
“Loren’s leadership sets the standard for who we are at AArete,” said Duane Harrington, executive vice president and senior managing director at AArete. “He brings our vision and mission to life every day through his decisions, his integrity and his unwavering commitment to our people and clients. We are grateful for the example he sets and the culture of purpose and excellence he continues to build.”
Over the past 18 years, AArete has built deep expertise serving U.S. health plans of all sizes, including Medicaid, Medicare, ACA Marketplace and commercial plans. AArete is a trusted total cost of care advisor to payers who are working to reduce trend and improve affordability without compromising quality or the member experience.
The firm’s AI-enabled proprietary solutions include provider contract, policy and benefit intelligence, powered by the patented Doczy.ai™, and AArete Payment Intelligence®, which goes beyond traditional payment integrity solutions by identifying and fixing root causes across the entire payment ecosystem to unlock value and deliver a clear ROI.
Under Loren’s leadership, AArete has been named a Forbes World’s Best Consulting Firm four years in a row in the categories of Healthcare, Digital Transformation, Data Analytics and Big Data. AArete was also recognized as a Top Workplace in 2026 by USA Today, based upon an independent employee survey.
“I am humbled and honored to be recognized by Consulting Magazine among such accomplished industry leaders,” Trimble said. “I’ve had the privilege of working alongside exceptional colleagues and clients who have challenged and inspired me every step of the way. Building AArete from the ground up, and watching it grow into a global firm known not only for delivering results but for its culture of care, is what I’m most proud of. Excellence in client delivery has always been my North Star, and to have that commitment recognized in this way is very meaningful to me.”
About AArete
AArete is a global management and technology consulting firm specializing in driving profitability improvement, digital transformation, and strategy & change for clients. AArete’s solutions are powered by a digital-first mindset, market intelligence and data-driven approach to deliver purposeful change, actionable insights and guaranteed results. AArete humanizes data by translating numbers into actionable insights, helping clients make better decisions and standing by their side to foster change with confidence, empathy and purpose. For more information, visit aarete.com.
Trusted, intuitive AI enhances design workflows, making it easier to move from creative concepts to 3D models
, /PRNewswire/ -- Trimble (Nasdaq: TRMB) today announced a specialized integration with Claude, the large language model and AI assistant from Anthropic, that makes it easier for Trimble® SketchUp® software users to create 3D models directly from conversational text or speech prompts.
Trimble Links SketchUp with Anthropic’s Claude, Bringing New Conversational AI-powered Capabilities to 3D Modeling The powerful new capabilities are enabled by a SketchUp Connector model context protocol (MCP) service that allows Claude to interact directly with SketchUp (.skp) files. The connectivity enhances existing design workflows and expands access to 3D modeling for people at any skill level.
Trimble SketchUp is a professional-grade 3D modeling software used widely in architecture, design, construction and other fields. This is the first Connector created by Trimble that connects the SketchUp design environment with other tools via the MCP framework.
Conversational 3D modeling
The SketchUp Connector integration with Claude lets users create 3D geometry, such as building massing models, landscapes or furniture by simply describing what they want. Plain-language inputs alongside reference images, sketches, photos, floor plans and dimensions that users upload can give Claude the context needed to understand the design goal. Claude builds the geometry in a cloud SketchUp session, verifying dimensions iteratively.
"The learning curve and time it takes for professionals to transfer a vision to a digital model has traditionally been the biggest barrier to 3D modeling," said Chris Cronin, vice president and general manager of architecture and design solutions at Trimble. "Natural language prompts and the power of AI make it easy for anyone to get started and excel, including inexperienced and non-traditional 3D design users, bringing us closer to our '3D for everyone' goal."
The specialized Claude integration for SketchUp is consistent with Trimble-wide initiatives to democratize advanced technology and make them available and accessible to a wider range of users, according to Cronin.
Additional 3D modeling advantages
In addition to allowing natural language prompts, the SketchUp Claude Connector tracks version history within a single chat, enabling users to rapidly navigate, troubleshoot and refine their 3D models. If a design is not quite accurate, users can describe necessary changes or paste screenshots from SketchUp directly into the chat to point out specific angles, proportions or elements that need adjustment.
When a model is completed, the Connector creates a 2D preview thumbnail and provides a direct download link to the .skp file. Users can instantly download, open and edit the file in any SketchUp modeler.
Users can also design and train Claude on core skills and unique workflows to complete repetitive tasks more quickly and efficiently.
Availability
Users can get started today by enabling Trimble SketchUp in Claude's MCP directory connector settings. Accessing the Connector requires a Claude account and a Trimble ID for authentication. Users receive a free SketchUp entitlement that allows them to save up to 30 SketchUp models; after that, a paid entitlement is required. Resulting files can be opened in SketchUp for Web, Desktop, iPad or iPhone.
About Trimble
Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: www.trimble.com.
Looking for bargain artificial intelligence (AI) stocks? You aren't the only one.
In fact, given how fast the AI market has been growing, it's even getting hard to find reasonably priced AI stocks. Take Micron Technology (MU 1.02%), for example. Its share price is up more than 550% in the past year.
Today's Change
(
-1.02
%) $
-10.15
Current Price
$
985.72
But that doesn't mean there aren't some hidden gems out there if you know where to look. And one such hidden gem is Trimble (TRMB +0.84%). Here's why this under-the-radar stock could be your ticket to millionaire status.
A surprise opportunity Trimble didn't start out as an AI company. It was founded in 1978, providing radio navigation and GPS devices to the construction and defense industries. In 1999, the company added surveying software to its product lineup and, since then, has added 3D scanning and imaging technology, as well as AI-powered geospatial mapping technology, to its arsenal.
Image source: Getty Images.
Geospatial mapping technology wasn't seen as a major growth industry until the twin crazes of self-driving vehicles and autonomous robotics took the market by storm. Trimble's leading position in this niche has helped its software and services revenue skyrocket. In fact, 72% of the company's revenue now comes from software and services.
Trimble has been aggressively expanding its AI offerings, including through a new partnership between its SketchUp 3D modeling software and Anthropic's Claude. With Trimble's stock trading more than 20% off its one-year highs, major AI investors like Cathie Wood have been picking up shares.
Investors looking for a reasonably valued AI stock with big growth potential as their ticket to millionaire status should take a closer look at Trimble.
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(
0.84
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0.42
Current Price
$
50.42
John Bromels has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Trimble. The Motley Fool has a disclosure policy.
Record annualized recurring revenue, reflecting ongoing execution of the Connect & Scale strategy Record first quarter gross margins and operating income margins First quarter results exceeded expectations Share repurchases of $317 million Raising full year 2026 guidance , /PRNewswire/ -- Trimble Inc. (Nasdaq: TRMB) today announced financial results for the first quarter of 2026.
First Quarter 2026 Financial Highlights
Revenue of $939.9 million, up 12 percent on a year-over-year basis, up 12 percent on an organic basis Annualized recurring revenue ("ARR") was $2.43 billion, up 12 percent year-over-year, up 12 percent on an organic basis GAAP operating income was $144.0 million, 15.3 percent of revenue, and non-GAAP operating income was $243.2 million, 25.9 percent of revenue GAAP net income was $98.9 million and non-GAAP net income was $186.9 million Diluted earnings per share ("EPS") was $0.42 on a GAAP basis and $0.79 on a non-GAAP basis Adjusted EBITDA was $257.7 million, 27.4 percent of revenue During the first quarter, Trimble repurchased approximately 4.7 million shares for $316.9 million Executive Quote
"We began the year with strong momentum, delivering record annualized recurring revenue of $2.435 billion in the first quarter, and surpassing expectations on both top and bottom lines," said Rob Painter, president and CEO of Trimble. "Our Connect & Scale strategy connects people, data, workflow and ecosystems. In an AI-forward world, Trimble is the intelligence and execution layer that reconciles the digital model with physical reality."
Forward-Looking Guidance
For the full-year 2026, Trimble expects to report revenue between $3,835 million and $3,915 million, GAAP earnings per share of $2.05 to $2.21, and non-GAAP earnings per share of $3.47 to $3.64. GAAP guidance assumes a tax rate of 21.0 percent and non-GAAP guidance assumes a tax rate of 17.5 percent. Both GAAP and non-GAAP earnings per share assume approximately 235 million shares outstanding.
For the second quarter of 2026, Trimble expects to report revenue between $938 million and $963 million, GAAP earnings per share of $0.38 to $0.42, and non-GAAP earnings per share of $0.78 to $0.82. GAAP guidance assumes a tax rate of 23.0 percent and non-GAAP guidance assumes a tax rate of 17.5 percent. Both GAAP and non-GAAP earnings per share assume approximately 234 million shares outstanding.
A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on May 6, 2026 at 8:00 a.m. ET to review its first quarter of 2026 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, https://investor.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at https://investor.trimble.com. Investors and participants who wish to dial into the call may do so by first registering at https://events.q4inc.com/analyst/544327873?pwd=s5ilhwSm. Upon registration, dial-in details will be sent via email to the registrant. A replay will also be available on the web at the address above.
About Trimble
Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: https://www.trimble.com.
Safe Harbor
Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational results. These forward-looking statements are subject to change, and actual results may materially differ due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, effectively integrate new acquisitions or consummate divestitures in a timely manner, or get the benefits we are expecting from our joint ventures and partnerships, including with Platform Science. The Company's results could also be negatively impacted due to the general global macroeconomic outlook, including heightened trade tensions and related uncertainty of tariffs (including certain tariff refunds) and export control restrictions between the U.S. and its trading partners, and associated supply chain disruptions, slowing growth, inflationary pressures, and fluctuations in interest rates, which may affect demand for our products and services, increase our costs and adversely affect our revenues and profitability; the pace at which our dealers work through their inventory; changes in our distribution channels; adverse geopolitical tensions and the ongoing impact of volatility and conflict in the political and economic environment, including the Middle East conflict, and the direct and indirect impact on our business; fluctuations in foreign currency exchange rates; the pace that we transition our business model towards a subscription model; the impact and risks of AI and AI-related developments; the impact of acquisitions or divestitures; and our ability to maintain effective internal controls over financial reporting, including our ability to remediate our material weaknesses in our internal controls over financial reporting. Any failure to achieve predicted results could negatively impact the Company's revenue, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including our quarterly reports on Form 10-Q and our annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.
FTRMB
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
First Quarter of
2026
2025
Revenue:
Product
$ 311.2
$ 271.6
Subscription and services
628.7
569.0
Total revenue
939.9
840.6
Cost of sales:
Product
158.2
143.7
Subscription and services
119.3
119.7
Amortization of purchased intangible assets
16.1
16.4
Total cost of sales
293.6
279.8
Gross margin
646.3
560.8
Gross margin (%)
68.8 %
66.7 %
Operating expense:
Research and development
169.5
158.5
Sales and marketing
176.1
153.2
General and administrative
126.7
121.5
Restructuring
2.9
4.5
Amortization of purchased intangible assets
27.1
25.6
Total operating expense
502.3
463.3
Operating income
144.0
97.5
Non-operating (expense) income, net:
Interest expense, net
(19.5)
(15.6)
Income from equity method investments, net
0.8
1.0
Other income, net
6.0
3.5
Total non-operating expense, net
(12.7)
(11.1)
Income before taxes
131.3
86.4
Income tax provision
32.4
19.7
Net income
$ 98.9
$ 66.7
Earnings per share:
Basic
$ 0.42
$ 0.27
Diluted
$ 0.42
$ 0.27
Shares used in calculating earnings per share:
Basic
234.5
243.3
Diluted
236.9
246.2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
As of
First Quarter of
Year End
2026
2025
Assets
Current assets:
Cash and cash equivalents
$ 234.1
$ 253.4
Accounts receivable, net
617.5
856.0
Inventories
188.0
186.3
Prepaid expenses
122.8
102.7
Other current assets
230.3
233.5
Total current assets
1,392.7
1,631.9
Property and equipment, net
180.8
182.8
Goodwill
5,213.6
5,239.7
Other purchased intangible assets, net
872.1
924.1
Deferred income tax assets
256.4
260.0
Equity investments
616.8
610.8
Other non-current assets
458.6
462.7
Total assets
$ 8,991.0
$ 9,312.0
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt
$ 10.3
$ —
Accounts payable
175.7
168.3
Accrued compensation and benefits
125.4
211.7
Deferred revenue
863.2
894.0
Income taxes payable
15.5
17.7
Other current liabilities
183.6
211.7
Total current liabilities
1,373.7
1,503.4
Long-term debt
1,402.5
1,392.2
Deferred revenue, non-current
107.5
104.7
Deferred income tax liabilities
189.1
190.5
Other non-current liabilities
281.0
285.0
Total liabilities
3,353.8
3,475.8
Stockholders' equity:
Common stock
0.2
0.2
Additional paid-in-capital
2,448.6
2,437.9
Retained earnings
3,217.2
3,387.6
Accumulated other comprehensive (loss) income
(28.8)
10.5
Total stockholders' equity
5,637.2
5,836.2
Total liabilities and stockholders' equity
$ 8,991.0
$ 9,312.0
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
First Quarter of
2026
2025
Cash flow from operating activities:
Net income
$ 98.9
$ 66.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
49.9
48.9
Deferred income taxes
4.3
(26.7)
Stock-based compensation
41.8
38.4
Other, net
(2.3)
4.0
(Increase) decrease in assets:
Accounts receivable, net
234.1
206.1
Inventories
(0.8)
3.4
Other current and non-current assets
(17.0)
35.8
Increase (decrease) in liabilities:
Accounts payable
8.4
(1.4)
Accrued compensation and benefits
(85.4)
(120.1)
Deferred revenue
(26.2)
(13.5)
Income taxes payable
(2.3)
(50.2)
Other current and non-current liabilities
(28.7)
(35.8)
Net cash provided by operating activities
274.7
155.6
Cash flow from investing activities:
Divestitures of businesses, net of cash divested
—
(7.3)
Purchases of property and equipment
(6.1)
(6.6)
Other, net
1.0
(0.6)
Net cash used in investing activities
(5.1)
(14.5)
Cash flow from financing activities:
Issuance of common stock, net of tax withholdings
16.7
16.3
Repurchases of common stock
(322.8)
(627.4)
Proceeds from debt and revolving credit lines
167.2
114.7
Payments on debt and revolving credit lines
(147.0)
(114.7)
Net cash used in financing activities
(285.9)
(611.1)
Effect of exchange rate changes on cash and cash equivalents
(3.0)
12.2
Net decrease in cash and cash equivalents
(19.3)
(457.8)
Cash and cash equivalents - beginning of period (1)
253.4
747.8
Cash and cash equivalents - end of period
$ 234.1
$ 290.0
Supplemental cash flow disclosure:
Cash paid for income taxes, net
$ 11.4
$ 48.3
(1) Includes $9.0 million of cash and cash equivalents classified as held for sale as of January 3, 2025.
REPORTING SEGMENTS
(In millions)
(Unaudited)
Reportable Segments
AECO
Field Systems
T&L
First Quarter of 2026
Segment revenue
$ 391.1
$ 409.2
$ 139.6
Cost of sales
62.7
175.0
34.4
Operating expense
205.3
116.2
71.4
Operating income
$ 123.1
$ 118.0
$ 33.8
Operating income %
31.5 %
28.8 %
24.2 %
First Quarter of 2025
Segment revenue
$ 335.4
$ 359.2
$ 146.0
Cost of sales
58.9
154.2
44.6
Operating expense
184.9
98.4
75.3
Operating income
$ 91.6
$ 106.6
$ 26.1
Operating income %
27.3 %
29.7 %
17.9 %
GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)
First Quarter of
2026
2025
Dollar
Amount
% of
Revenue
Dollar
Amount
% of
Revenue
REVENUE:
GAAP revenue:
$ 939.9
$ 840.6
GROSS MARGIN:
GAAP gross margin:
$ 646.3
68.8 %
$ 560.8
66.7 %
Amortization of purchased intangible assets
(A)
16.1
16.4
Stock-based compensation / deferred compensation
(C)
4.2
4.3
Restructuring and other costs
(D)
0.3
0.2
Non-GAAP gross margin:
$ 666.9
71.0 %
$ 581.7
69.2 %
OPERATING EXPENSES:
GAAP operating expenses:
$ 502.3
53.4 %
$ 463.3
55.1 %
Amortization of purchased intangible assets
(A)
(27.1)
(25.6)
Acquisition / divestiture items
(B)
(5.9)
(8.9)
Stock-based compensation / deferred compensation
(C)
(39.5)
(33.2)
Restructuring and other costs
(D)
(6.1)
(12.1)
Non-GAAP operating expenses:
$ 423.7
45.1 %
$ 383.5
45.6 %
OPERATING INCOME:
GAAP operating income:
$ 144.0
15.3 %
$ 97.5
11.6 %
Amortization of purchased intangible assets
(A)
43.2
42.0
Acquisition / divestiture items
(B)
5.9
8.9
Stock-based compensation / deferred compensation
(C)
43.7
37.5
Restructuring and other costs
(D)
6.4
12.3
Non-GAAP operating income:
$ 243.2
25.9 %
$ 198.2
23.6 %
NON-OPERATING EXPENSE, NET:
GAAP non-operating expense, net:
$ (12.7)
$ (11.1)
Acquisition / divestiture items
(B)
(4.1)
(5.3)
Deferred compensation
(C)
(2.0)
0.9
Restructuring and other costs
(D)
1.9
0.1
Non-GAAP non-operating expense, net:
$ (16.9)
$ (15.4)
Tax Rate %
Tax Rate %
(F)
(F)
INCOME TAX PROVISION:
GAAP income tax provision:
$ 32.4
24.7 %
$ 19.7
22.8 %
Non-GAAP items tax effected
(E)
7.0
11.7
Non-GAAP income tax provision:
$ 39.4
17.4 %
$ 31.4
17.2 %
NET INCOME:
GAAP net income:
$ 98.9
$ 66.7
Amortization of purchased intangible assets
(A)
43.2
42.0
Acquisition / divestiture items
(B)
1.8
3.6
Stock-based compensation
(C)
41.7
38.4
Restructuring and other costs
(D)
8.3
12.4
Non-GAAP tax adjustments
(E)
(7.0)
(11.7)
Non-GAAP net income:
$ 186.9
$ 151.4
DILUTED NET INCOME PER SHARE:
GAAP diluted net income per share:
$ 0.42
$ 0.27
Amortization of purchased intangible assets
(A)
0.18
0.17
Acquisition / divestiture items
(B)
0.01
0.01
Stock-based compensation
(C)
0.18
0.16
Restructuring and other costs
(D)
0.03
0.05
Non-GAAP tax adjustments
(E)
(0.03)
(0.05)
Non-GAAP diluted net income per share:
$ 0.79
$ 0.61
ADJUSTED EBITDA:
GAAP operating income:
$ 144.0
15.3 %
$ 97.5
11.6 %
Amortization of purchased intangible assets
(A)
43.2
42.0
Acquisition / divestiture items
(B)
5.9
8.9
Stock-based compensation / deferred compensation
(C)
43.7
37.5
Restructuring and other costs
(D)
6.4
12.3
Non-GAAP operating income:
243.2
25.9 %
198.2
23.6 %
Depreciation expense and cloud computing amortization
11.8
12.0
Income from equity method investments, net
2.7
1.9
Adjusted EBITDA:
$ 257.7
27.4 %
$ 212.1
25.2 %
First Quarter of
2026
2025
FREE CASH FLOW:
Net cash provided by operating activities
$ 274.7
$ 155.6
Capital expenditures
6.1
6.6
Free cash flow
$ 268.6
$ 149.0
Second Quarter of 2026
Year 2026
Low End
High End
Low End
High End
FORECASTED DILUTED NET INCOME PER SHARE:
Forecasted GAAP diluted net income per share:
$ 0.38
$ 0.42
$ 2.05
$ 2.21
Amortization of purchased intangible assets
(A)
0.18
0.18
0.72
0.72
Acquisition / divestiture items
(B)
0.06
0.06
0.09
0.09
Stock-based compensation
(C)
0.18
0.18
0.67
0.67
Restructuring and other costs
(D)
0.03
0.03
0.13
0.13
Non-GAAP tax adjustments
(E)
(0.05)
(0.05)
(0.19)
(0.18)
Forecasted non-GAAP diluted net income per share:
$ 0.78
$ 0.82
$ 3.47
$ 3.64
FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION
This press release includes GAAP financial measures as well as non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP measures. We believe non-GAAP financial measures provide useful information to investors and others in understanding our "core operating performance", which excludes (i) the effect of non-cash items and certain variable charges not expected to recur and (ii) transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. Lastly, we believe that our core operating performance offers a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors.
The non-GAAP definitions and explanations to the adjustments to comparable GAAP measures are included below:
Non-GAAP Definitions
Non-GAAP gross margin
We define Non-GAAP gross margin as GAAP gross margin, excluding the effects of amortization of purchased intangible assets, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions, and manufacturing costs influence our business.
Non-GAAP operating expenses
We define Non-GAAP operating expenses as GAAP operating expenses, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue.
Non-GAAP operating income
We define Non-GAAP operating income as GAAP operating income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and spending.
Non-GAAP non-operating expense, net
We define Non-GAAP non-operating expense, net as GAAP non-operating (expense) income, net, excluding acquisition/divestiture items, deferred compensation, and restructuring and other costs. We believe this measure helps investors evaluate our non-operating expense trends.
Non-GAAP income tax provision
We define non-GAAP income tax provision as the GAAP income tax provision adjusted for the tax effects of the non-GAAP pre-tax adjustments (A) through (D), excluding certain tax charges and benefits such as net deferred tax impacts resulting from tax amortization related to a non-U.S. intercompany transfer of intellectual property and certain acquisitions, deferred tax impacts from net controlled foreign corporation tested income ("net CFC tested income", formerly referred to as global intangible low-taxed income or "GILTI"), significant reserve releases upon the expiration of statute of limitations and audit closures, and tax law changes. We believe this measure helps investors because it provides for consistent treatment of excluded items in our non-GAAP presentation.
Non-GAAP net income
We define Non-GAAP net income as GAAP net income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. This measure provides a supplemental view of net income trends, which are driven by non-GAAP income before taxes and our non-GAAP tax rate.
Non-GAAP diluted net income per share
We define Non-GAAP diluted net income per share as GAAP diluted net income per share, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the Company.
Adjusted EBITDA
We define Adjusted EBITDA as non-GAAP operating income plus depreciation expense, cloud computing amortization, and income from equity method investments, net, excluding our proportionate share of items such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is a performance measure that we believe offers a useful view of the overall operations of our business because it facilitates operating performance comparisons by removing potential differences caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes, depreciation, amortization of purchased intangibles and cloud computing costs, and income from equity method investments, net.
Free Cash Flow
We define free cash flow as cash flow from operating activities minus capital expenditures. We believe this measure is important to investors evaluating our generation of cash flow.
Explanations of Non-GAAP adjustments
(A)
Amortization of purchased intangible assets. Non-GAAP gross margin and operating expenses exclude the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed.
(B)
Acquisition / divestiture items. Non-GAAP gross margin and operating expenses exclude costs consisting of external and incremental costs resulting directly from acquisitions, divestitures, and strategic investment activities such as legal, due diligence, integration, and other costs, including the acceleration of acquisition stock awards and adjustments to the fair value of earn-out liabilities. Non-GAAP non-operating expense, net, excludes one-time acquisition/divestiture charges, including foreign currency exchange rate gains/losses related to an acquisition, divestiture gains/losses, and strategic investment gains/losses. These are one-time costs that vary significantly in amount and timing and are not indicative of our core operating performance.
(C)
Stock-based compensation / deferred compensation. Non-GAAP gross margin and operating expenses exclude stock-based compensation and income or expense associated with movement in our non-qualified deferred compensation plan liabilities. Changes in non-qualified deferred compensation plan assets, included in non-operating expense, net, offset the income or expense in the plan liabilities.
(D)
Restructuring and other costs. Non-GAAP gross margin and operating expenses exclude restructuring costs composed of termination benefits related to reductions in employee headcount, closure or exit of facilities, and cancellation of certain contracts, and other costs composed of one-time incremental expenses resulting from the re-audit and related remediation of control deficiencies. Non-GAAP non-operating expense net, excludes our proportionate share of items recorded in income from equity method investment items, such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs.
(E)
Non-GAAP items tax effected. This amount represents the income tax effect of non-GAAP pre-tax adjustments, excluding certain tax charges and benefits, which reconcile the GAAP income tax provision to the non-GAAP income tax provision.
(F)
Tax rate percentages. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes.
OTHER KEY METRICS
Annualized Recurring Revenue
In addition to providing non-GAAP financial measures, Trimble provides an ARR performance measure in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. ARR represents the estimated annualized value of recurring revenue. ARR is calculated by taking our subscription and maintenance and support revenue for the current quarter and adding the portion of the contract value of all our term licenses attributable to the current quarter, then dividing that sum by the number of days in the quarter and then multiplying that quotient by 365. ARR should be viewed independently of revenue and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items.
Organic Annualized Recurring Revenue
Organic annualized recurring revenue refers to annualized recurring revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.
Organic Revenue
Organic revenue refers to revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.
May 6 (Reuters) - Navigation equipment maker Trimble (TRMB.O), opens new tab on Wednesday raised its annual forecast after strong first-quarter results, riding on steady demand for its product bundle tailored for the construction and transportation sectors.
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The Westminster, Colorado-based company has integrated its navigation equipment with software solutions that gather data, analyze it and provide actionable insights, helping clients streamline their workflows.
It now expects total revenue of $3.84 billion-$3.92 billion for 2026, above its previous forecast of $3.81 billion-$3.91 billion.
Annual adjusted earnings per share is forecast to be between $3.47 and $3.64, slightly higher than the previous expectation between $3.42 to $3.62.
Trimble has been shifting from a hardware-driven to a software-services-focused model.
First-quarter revenue was $939.9 million — on top of analysts' average expectation of $905.6 million, according to data compiled by LSEG
Adjusted earnings of $0.79 per share beat estimates of $0.72 per share for the quarter ended March 31.
The company has also benefited from its "connect-to-scale" strategy, designed to link hardware, software and cloud solutions across the construction, geospatial and transportation sectors.
Trimble expects second-quarter revenue between $938 million and $963 million, the midpoint of which is above analysts' estimate of about $946 million.
It forecast adjusted earnings per share between $0.78 and $0.82 for the quarter, the midpoint of which is in line with estimates of $0.80.
Reporting by Arunesh Sinha; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Trimble Navigation (TRMB - Free Report) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.03%. A quarter ago, it was expected that this GPS manufacturer would post earnings of $0.96 per share when it actually produced earnings of $1, delivering a surprise of +4.17%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Trimble, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $939.9 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.00%. This compares to year-ago revenues of $840.6 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 earnings expectations will mostly depend on management's commentary on the earnings call.
Trimble shares have lost about 12.7% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Trimble?While Trimble has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Trimble 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 $0.80 on $943.83 million in revenues for the coming quarter and $3.55 on $3.86 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, Manufacturing - General Industrial is currently in the top 37% 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.
One other stock from the same industry, Chart Industries (GTLS - Free Report) , is yet to report results for the quarter ended March 2026.
This equipment maker for the energy sector is expected to post quarterly earnings of $2.16 per share in its upcoming report, which represents a year-over-year change of +16.1%. The consensus EPS estimate for the quarter has been revised 10.9% lower over the last 30 days to the current level.
Chart Industries' revenues are expected to be $1.05 billion, up 4.5% from the year-ago quarter.
Trimble Inc. (NASDAQ:TRMB) on Wednesday reported upbeat fiscal first-quarter 2026 results.
The company reported quarterly revenue of $939.9 million, up 12% from a year earlier and ahead of analyst estimates of $905.58 million. Organic revenue also increased 12% year over year. Trimble posted adjusted earnings of 79 cents per share, beating analyst estimates of 72 cents per share.
For fiscal 2026, Trimble forecast revenue of $3.835 billion to $3.915 billion, up from its prior outlook of $3.810 billion to $3.910 billion. Analysts expect revenue of $3.866 billion. The company expects adjusted earnings of $3.47 to $3.64 per share for the year, compared with its prior forecast of $3.42 to $3.62 per share and analyst estimates of $3.52 per share.
“We began the year with strong momentum, delivering record annualized recurring revenue of $2.435 billion in the first quarter, and surpassing expectations on both top and bottom lines,” said Rob Painter, president and CEO of Trimble. “Our Connect & Scale strategy connects people, data, workflow and ecosystems. In an AI-forward world, Trimble is the intelligence and execution layer that reconciles the digital model with physical reality.”
Trimble shares fell 0.7% to trade at $62.97 on Thursday.
These analysts made changes to their price targets on Trimble following earnings announcement.
Oppenheimer analyst Kristen Owen maintained the stock with an Outperform rating and lowered the price target from $86 to $80. Wells Fargo analyst Jerry Revich maintained Trimble with an Overweight rating and cut the price target from $79 to $70. Considering buying TRMB stock? Here’s what analysts think:
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Key Takeaways TRMB posted Q1 2026 non-GAAP EPS of 79 cents on $940M revenue, both above consensus.TRMB's ARR hit $2.43B; subscription & services were 67% of sales as the software mix kept rising.TRMB raised 2026 outlook to $3.835-$3.915B revenue and $3.47-$3.64 EPS after margin gains. Trimble (TRMB - Free Report) reported first-quarter 2026 non-GAAP earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 9.7% and jumped 29.5% year over year. Revenues of $940 million increased 11.8% year over year and topped the consensus mark by 4%.
The reported quarter reflected continued execution on the company’s connect & scale strategy, supported by a record annualized recurring revenue (ARR) base of $2.43 billion, up 13% on an organic basis.
TRMB’s Top Line Split Shows Software Weight RisingIn the first quarter, subscription and services contributed $628.7 million (67% of revenues) and product revenues added $311.2 million (33% of revenues). The mix underscores the company’s steady shift toward a more recurring profile. Subscription and services increased 10.5% year over year, while product revenues increased 14.6%.
Segment-wise, AECO (Architects, Engineers, Construction, Owners) delivered $391.1 million of revenue, Field Systems generated $409.2 million, and Transportation & Logistics contributed $139.6 million. The portfolio balance helped the company post growth even as management acknowledged a constrained freight market.
Trimble’s AECO Engine Builds on Global ExpansionTrimble’s AECO segment produced 14% organic revenue growth, supported by cross-sell and upsell and the global expansion of Trimble Construction One. Segment ARR reached a record $1.51 billion, also up 14% organically, as the company extended the reach of its construction platform into the Asia Pacific.
Profitability improved meaningfully in AECO. Operating income margin expanded 420 basis points (bps) year over year to 31.5%, reflecting recurring revenue growth and operating expense leverage. Management also highlighted continued progress in bringing ProjectSight to Europe, supporting a broader international go-to-market motion.
TRMB’s Field Systems Demand Stayed Solid in CivilTRMB’s Field Systems segment posted 12% organic growth in both revenues and ARR. Management cited strength in civil construction, with infrastructure and data center end markets supporting demand, while the segment continued absorbing headwinds from model conversions to recurring revenues.
The company pointed to civil construction and geospatial demand tied to road construction, solar, manufacturing and data center projects. ARR growth was driven by subscription offerings, including WorksPlus machine control, Positioning Services and Trimble Business Center, along with extended warranties.
Trimble’s Transportation Unit Leans Into AI-Led WorkflowTrimble’s Transportation & Logistics segment delivered 7% organic revenue growth and 9% organic ARR growth on an as-adjusted basis. Operating income margin increased 300 bps year over year to 24.2%, as the team worked through stranded costs after the Mobility divestiture.
Management emphasized accelerating AI initiatives across the portfolio. The company noted it is monetizing AI through a mix of license-based and consumption-based models, including autonomous procurement and autonomous quotation in transportation. Trimble also discussed the SketchUp integration with Anthropic’s Claude, positioned as a path to expand the addressable market by converting new users into downstream SketchUp subscriptions.
TRMB’s Q1 Margins Expanded Y/YNon-GAAP profitability improved in the quarter, with gross margin at 71%, an expansion of 110 basis points (bps) year over year.
Adjusted EBITDA was $257.7 million, translating to a 27.4% margin, up 150 bps year over year.
Non-GAAP operating income margin was 25.9% versus 23.6% reported in the year-ago quarter.
Trimble’s Balance Sheet Remains StrongTRMB ended the quarter with $234.1 million in cash and equivalents and total debt of $1.413 billion.
Cash generation remained strong. Free cash flow was $268.6 million compared with $149.0 million in the year-ago period, supported by operating cash flow of $274.7 million and capital expenditures of $6.1 million.
During the quarter, the company repurchased about 4.7 million shares for $316.9 million, with $608 million remaining under its current authorization.
Trimble Raises 2026 Guidance After Strong StartTrimble raised its 2026 outlook. The company expects revenues of $3.835-$3.915 billion and non-GAAP earnings of $3.47-$3.64 per share. Organic ARR growth is projected at 12%-14%.
The company’s updated 2026 view also indicates a non-GAAP operating margin of 27.9%-28.5% and an adjusted EBITDA margin of 29.4%-30.0%.
For the second quarter of 2026, Trimble expects revenue of $938-$963 million and non-GAAP earnings of 78-82 cents per share.
Zacks Rank & Stocks to ConsiderTrimble currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Industrial Product sector that are set to report their quarterly results are Broadwind Energy (BWEN - Free Report) , Enersys (ENS - Free Report) and EquipmentShare.com (EQPT - Free Report) . Each of the three stocks carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Broadwind Energy, Enersys and EquipmentShare.com are set to report their respective quarterly results on May 12, 13, and 20. Year to date, shares of Broadwind Energy and EquipmentShare.com have dropped 30% and 36.4%, respectively, while Enersys has returned 52.7%.
On May 11, 2026, Trimble Inc TRMB shares fell 4.5% to a current price of $58.04. This decline comes amid a challenging market environment for the stock, which has experienced a year-to-date drop of 25.9%. Over the past year, TRMB has ranged between a 52-week high of $87.50 and a low of $59.85.
GF Value™ verdict: Current price of $58.04 is 9.9% below GF Value™ of $64.44, indicating it is undervalued.GF Score™: 91/100, suggesting a strong overall position based on various metrics.Most notable signal: Insiders sold $2.2 million in the last three months, indicating a lack of buying interest among them. Is TRMB Overvalued or Undervalued? According to the GF Value™, Trimble Inc TRMB is currently trading at $58.04, which is 9.9% below its estimated fair value of $64.44. This undervaluation suggests a potential opportunity for investors, as there is a margin of safety for those considering an entry point into TRMB shares. The GF Valuation label classifies the stock as "modestly undervalued," which aligns with the current price being below the intrinsic value determined through historical trading multiples, past business growth, and future performance estimates.
While the undervaluation presents an attractive opportunity, it is important to consider potential risks. The recent decline in share price, alongside insider selling, may reflect underlying concerns that could affect future performance. Therefore, investors should exercise caution and conduct thorough research before making any investment decisions.
How Does TRMB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 30.6x 36.0x Forward P/E 16.3x N/A The current P/E ratio of 30.6x is noticeably below its 5-year median P/E of 36.0x, suggesting that the stock is trading at a discount compared to its historical valuations. Additionally, the forward P/E of 16.3x further indicates that TRMB may be undervalued relative to its own past performance. This P/E analysis aligns with the GF Value™ verdict, reinforcing the potential for TRMB to be undervalued at its current price.
What Does TRMB's GF Score™ Tell Us? Metric Rating GF Score™ 91 Financial Strength 7/10 Profitability 8/10 Growth 9/10 Valuation 9/10 Momentum 5/10 The GF Score™ of 91/100 highlights Trimble Inc's strong position across several key metrics. Particularly noteworthy is its Growth rank of 9/10, indicating robust potential for future earnings expansion. Additionally, the Valuation rank of 9/10 suggests that the stock is attractively priced compared to its fundamentals. However, the Momentum rank of 5/10 indicates a relative weakness in price trends, which could be a concern for those focusing on short-term performance.
What Are Insiders Doing with TRMB Stock? In the last three months, insiders at Trimble Inc have sold a total of $2.2 million worth of shares, with no insider buying reported during this period. This pattern of selling may suggest a lack of confidence among insiders regarding the stock's future performance, which can be a red flag for investors. While insider trading activity alone should not solely dictate investment decisions, it is a factor to consider in the overall evaluation of the company.
What This Means for Investors Based on the analysis of GF Value™, Trimble Inc TRMB is currently undervalued. This presents a potential opportunity for investors, although caution is advised due to recent insider selling and market volatility.
For the complete analysis, visit the Trimble Inc TRMB 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 TRMB's GF Score™?
TRMB's GF Score™ is 91/100, indicating a strong overall position based on financial strength, profitability, growth, valuation, and momentum.
Is TRMB overvalued or undervalued?
TRMB is currently undervalued, with a GF Value™ of $64.44 compared to its current price of $58.04, representing a 9.9% discount.
What is TRMB's P/E ratio?
TRMB's P/E ratio is 30.6x TTM, which is below its 5-year median P/E of 36.0x, indicating that it is trading at a discount compared 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].
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Trimble® (Nasdaq: TRMB) announced today that its Chief Executive Officer, Rob Painter, will participate in a fireside chat at the J.P. Morgan 2026 Global Technology, Media and Communications Conference on Monday, May 18, 2026 at 2:50pm Eastern Time.
A live webcast and replay of the presentation will be available through Trimble's investor relations website at investor.trimble.com. Please go to the website 15 minutes early to register, download and install any necessary software. More information will be available on investor.trimble.com.
About Trimble
Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: www.trimble.com.
On May 13, 2026, Trimble Inc TRMB shares fell 7.1% today, bringing the current price to $56.51. This price is near the lower end of its 52-week range of $56.36 to $87.50, and the stock has experienced a significant decline of 27.9% year-to-date.
GF Value™ verdict: Current price of $56.51 vs. GF Value™ of $64.46, indicating a 12.3% upside.GF Score™: 88/100, signifying a strong overall performance.Most notable signal: Insiders sold $2.2M in the last 3 months, with no buying activity reported. Is TRMB Overvalued or Undervalued? The current price of Trimble Inc TRMB at $56.51 presents an interesting opportunity when compared to its GF Value™ estimate of $64.46, which suggests that the stock is currently undervalued by approximately 12.3%. This indicates a potential margin of safety for investors looking for value. The GF Valuation label of "Modestly Undervalued" supports the perspective that TRMB may be an attractive option for those seeking growth at a reasonable price. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation presents an opportunity, it is also essential to consider the broader market context and the recent price decline of 27.9% year-to-date. The risk associated with such a downturn may warrant caution, as it could indicate underlying issues that need to be addressed. Nevertheless, the current valuation suggests that TRMB possesses the potential for recovery.
How Does TRMB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 29.7x 36.0x Forward P/E 15.9x With a current P/E (TTM) of 29.7x, Trimble Inc is trading significantly below its 5-year median P/E of 36.0x, indicating that the stock may be undervalued compared to its historical valuation. The forward P/E of 15.9x further reinforces this perspective. This P/E analysis aligns with the GF Value™ verdict, suggesting that the stock is currently undervalued.
What Does TRMB's GF Score™ Tell Us? Metric Rating GF Score™ 88/100 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 10/10 Momentum 5/10 Trimble Inc's GF Score™ of 88/100 indicates a strong overall performance, particularly in the areas of Valuation (10/10), Profitability (8/10), and Growth (8/10). However, the Financial Strength score of 6/10 and Momentum score of 5/10 suggest that there are areas for improvement, particularly in maintaining positive momentum in the current market environment. Overall, the strong GF Score™ reflects the potential for long-term returns, but investors should be mindful of the weaker aspects that could impact future performance.
What Are Insiders Doing with TRMB Stock? In the last three months, insiders have sold $2.2 million worth of Trimble Inc stock, with no buying activity reported. This trend may indicate a lack of confidence among insiders regarding the company's short-term prospects, which could be a signal for potential investors to consider the implications of insider sentiment. If there had been insider buying, it might have suggested a stronger belief in the company's future performance.
What This Means for Investors Based on the GF Value™ assessment, Trimble Inc TRMB is currently undervalued, presenting a potential opportunity for those looking for growth at a reasonable price. However, investors should remain cautious due to the recent stock performance and insider selling activity.
For the complete analysis, visit the Trimble Inc TRMB 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 TRMB's GF Score™?
TRMB's GF Score™ is 88/100, indicating a strong overall performance and potential for long-term returns based on key financial metrics.
Is TRMB overvalued or undervalued?
TRMB is currently undervalued, with a GF Value™ of $64.46 compared to its current price of $56.51, suggesting a 12.3% upside.
What is TRMB's P/E ratio?
TRMB's P/E (TTM) ratio is 29.7x, which is significantly below its 5-year median of 36.0x, reinforcing the view that the stock is currently undervalued.
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].
Trimble Navigation (TRMB - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 20.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why TRMB Could Bounce Back Before LongThe heavy selling of TRMB shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 24.06. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for TRMB has increased 0.1%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, TRMB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Samsara added 133 new $100K ARR customers in Q2 fiscal 2026, bringing the total to 2,771.IOT expects fiscal 2027 revenue growth of 21-22% with non-GAAP operating margin at 19%.Trimble reported 79% recurring revenue mix in 2025 as software and AI tools drive ARR growth. Samsara (IOT - Free Report) and Trimble (TRMB - Free Report) are two important players in the digitization of physical operations and industrial workflows. While Samsara provides AI-powered IoT devices, telematics systems and connected operations software for fleet management and industrial monitoring, Trimble delivers construction, geospatial, engineering and workflow solutions that connect the physical and digital worlds.
As the world is moving toward Industry 4.0, the advent of AI has transformed every industry. Samsara and Trimble are expected to gain from this shift. Considering the possibilities of multi-directional growth in physical operations led by digitization and AI implementation, both companies are likely to capitalize on the emerging trends. Given this scenario, let's closely examine the fundamentals of the two companies, so investors can make an informed bet.
The Case for Samsara StockSamsara is gaining from the adoption of its Connected AI Platform and IOT trackers, telematics and video monitoring devices and is gaining market share among vehicle OEMs and fleet management companies. Samsara added 133 new $100K+ ARR customers, bringing the total to 2,771 in the second quarter of fiscal 2026. The company ended the second quarter of fiscal 2026 with 147 $1 million-plus ARR customers.
The company continues to benefit from strong adoption among large enterprise customers, with ARR from customers contributing more than $100,000 annually, rising 37% year over year to $1.2 billion. Larger customers typically adopt multiple Samsara products, which improves platform monetization without proportionally increasing customer acquisition costs. Another important factor supporting margin expansion is disciplined expense management.
Samsara’s expanding mix of multi-product enterprise deployments also strengthens its long-term margin profile. In the fourth quarter, nine of the company’s top 10 net new ACV deals included two or more products, while six included four or more products. Offerings launched over the last two years accounted for 23% of net new ACV in the fourth quarter. This demonstrates that customers increasingly view Samsara as a mission-critical connected operations platform rather than a point solution provider.
Samsara is also seeing strong multiproduct adoption. About 96% of customers with more than $100,000 in ARR now use at least two products, while 69% use three or more. The company delivered strong operating leverage in fiscal 2026 as non-GAAP operating margin expanded to 17% from 9% in fiscal 2025, while fourth-quarter non-GAAP operating margin reached 21%, up from 16% a year ago.
Management expects the momentum to continue in fiscal 2027 with guidance calling for a 19% non-GAAP operating margin alongside revenue growth of 21-22%. The Zacks Consensus Estimate for the fiscal 2027 earnings is pegged at 69 cents per share. The figure has remained unchanged in the past 60 days.
Image Source: Zacks Investment Research
The Case for Trimble StockTrimble is shifting from being a traditional hardware company to a connected workflow platform built around the physical and digital worlds. Trimble has two open cloud platforms in construction and transportation, with software, subscriptions and services playing a steadily larger role in the mix. The company also emphasizes AI, machine learning and computer vision across its products, positioning itself as a provider of industry-specific tools that help customers work more efficiently, safely and sustainably.
That strategy is showing up in the numbers. For 2025, Trimble reported $3.59 billion in revenues, $2.39 billion in ARR, and a recurring revenue mix that represented 79% of total revenues. Organic ARR growth reached 14%, signaling that the shift toward subscription and services is not just a narrative but a real operating trend. In the first quarter of 2026, the momentum continued with revenues of $940 million, ARR of $2.435 billion, and double-digit organic growth across the company, led by AECO and Field Systems.
AECO remains one of Trimble’s most important growth engines. The segment serves architects, engineers, contractors and owners through software that spans design, BIM, construction management and asset lifecycle tools. Trimble is also using AI to create new monetization paths. Trimble is already monetizing software and AI through named-user licenses, while also building toward hybrid models that combine subscriptions with consumption.
The strength of the model is reinforced by scale and balance sheet discipline. Trimble said more than 30 million projects have been created in Trimble Connect, with over 50 million users since inception and more than 130 integrations in its marketplace. Trimble is turning a broad set of point solutions into a more unified platform where data, workflow and AI reinforce one another. Nevertheless, its business still carries risks, including less visibility in hardware and macro uncertainty, but the direction of travel is favorable.
The Zacks Consensus Estimate for TRMB’s 2026 revenues is pegged at $3.88 billion, indicating year-over-year growth of 8%. The consensus estimate for TRMB’s 2026 earnings is pegged at $3.56 per share, indicating year-over-year growth of 13.7%.
Image Source: Zacks Investment Research
Stock Price Performance and Valuation of TRMB & IOTShares of TRMB and IOT have plunged 28.1% and 12.1%, respectively, year to date.
IOT vs TRMB YTD Performance Chart
Image Source: Zacks Investment Research
IOT is trading at a forward 12-month Price to Sales ratio of 8.67X, which is lower than its median of 11.63X. TRMB is trading at a forward sales multiple of 3.28X, lower than its median of 11.63X.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: TRMB vs. IOTWhile both Samsara and Trimble are benefiting from the broader digitization of physical operations, Samsara currently appears to offer the stronger growth profile, cleaner execution story and larger long-term upside, making IOT the better buy for growth-oriented investors. Samsara is gaining from the pace of its enterprise expansion and multi-product adoption, driving its long-term growth trend. Given these factors, we suggest IOT to be a safer bet at present.
TRMB and IOT carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 01, 2026, Trimble Inc TRMB shares rose 3.1% to $58.15. This movement comes in the context of a 52-week trading range between $52.80 and $87.50, indicating some volatility in the stock price over the past year.
GF Value™ verdict: Current price of $58.15 is 10.2% below the GF Value™ estimate of $64.77.GF Score™ of 87/100 indicates a strong overall performance in key financial metrics.Notable signal: Insiders sold $2.2 million in stock over the last three months, with no buying activity reported. Is TRMB Overvalued or Undervalued? Trimble Inc is currently trading at $58.15, which is 10.2% below its GF Value™ estimate of $64.77. This undervaluation suggests a potential opportunity for investors, as the stock appears to offer a margin of safety. The GF Valuation label indicates that TRMB is modestly undervalued, which means that it may present a favorable risk-reward scenario for those considering entering a position. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the stock is undervalued according to GF Value™, it is important to consider potential risks, such as market volatility and the recent insider selling activity, which may indicate a lack of confidence from those closest to the company. Investors should be cautious and conduct further analysis before making any investment decisions.
How Does TRMB's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)30.6x35.5x (5-Year Median) Forward P/E16.2xN/A Currently, Trimble Inc's P/E (TTM) of 30.6x is below its 5-year median of 35.5x, indicating that the stock is trading at a lower valuation compared to its historical levels. The forward P/E of 16.2x further suggests that the market expects improved earnings in the near future. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that TRMB is undervalued relative to its historical performance.
What Does TRMB's GF Score™ Tell Us? MetricRating GF Score™87/100 Financial Strength6/10 Profitability8/10 Growth8/10 Valuation10/10 Momentum5/10 The GF Score™ of 87/100 indicates a strong overall performance in key financial metrics, particularly in the Valuation category where it ranks a perfect 10/10. The Profitability and Growth ranks of 8/10 also reflect a healthy financial position and potential for future expansion. However, the Financial Strength rating of 6/10 and a Momentum rank of 5/10 suggest areas for improvement and may require further scrutiny from potential investors.
What Are Insiders Doing with TRMB Stock? Recent insider activity at Trimble Inc has shown that insiders sold $2.2 million worth of shares over the last three months, with no recorded buying activity. This pattern may raise some concerns as it could indicate a lack of confidence among insiders regarding the company's near-term prospects. While insider selling does not always correlate with negative performance, it is an important signal for investors to consider when evaluating the stock.
What This Means for Investors Based on the GF Value™ analysis, Trimble Inc TRMB is currently undervalued at $58.15, which is 10.2% below its estimated fair value of $64.77. While this presents an opportunity for potential gains, the recent insider selling and market volatility warrant caution. Thorough due diligence is essential before making any investment decisions.
For the complete analysis, visit the Trimble Inc TRMB 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 TRMB's GF Score™?
TRMB has a GF Score™ of 87/100, indicating a strong overall performance in key financial metrics, suggesting potential for higher long-term returns.
Is TRMB overvalued or undervalued?
TRMB is currently undervalued according to GF Value™, trading at 10.2% below its estimated fair value of $64.77, indicating a potential opportunity for investors.
What is TRMB's P/E ratio?
TRMB's current P/E (TTM) is 30.6x, which is below its 5-year median of 35.5x, suggesting that the stock is trading at a lower 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].
Trimble to Integrate Omni into Transportation Products, Bringing Real-Time Hotel Booking to Commercial Truck Drivers Across North America
DENVER--(BUSINESS WIRE)--Engine, the travel and spend management platform, today announced the launch of Omni Powered by Engine, which allows companies to integrate Engine's world-class hotel booking experience into a website or app. Omni is a developer-friendly hotel booking API powered by the same technology, reliability, and speed that Engine is built on, all for free. With Omni, companies can integrate Engine’s extensive hotel network and booking capabilities to their own platform, without having to build supplier connectivity, payment infrastructure, search capabilities, compliance systems, or traveler support from scratch.
Trimble, a global industrial technology company, is collaborating with Engine to integrate Omni directly into Trimble Places, a commercial location database including amenity information, wait times and more. Trimble Places connects drivers to over 6 million commercial vehicle locations globally including fuel stops and warehouses.
Omni will also be integrated into Trimble Road Call, a full-serve vehicle breakdown module within Trimble TMT Fleet Maintenance™ solution, and Trimble CoPilot, a commercial-grade, turn-by-turn GPS navigation solution designed for commercial fleets.
Together, these solutions serve nearly 800,000 customers across North America. By integrating Omni into its transportation products, Trimble will provide truck drivers seamless access to hotel booking inside the tools they already rely on, at the moments they need it most.
"We created Omni to be a developer-friendly infrastructure that empowers our partners to integrate seamless hotel booking right into their existing platform," said Elia Wallen, CEO of Engine. "We’re excited to have Trimble as an early collaborator. For customers who live and work on the road, lodging isn't a nice-to-have, it's a core part of the experience. We built Omni to handle the heavy lifting so companies like Trimble can deliver that booking experience without building it themselves."
Engine has over a decade of travel experience and is already trusted by over 1 million travelers and 30,000 businesses. Omni delivers seamless access to over one million properties worldwide, backed by sub-second search performance, real-time rates, integrated payments, and 24/7 traveler support. With Omni powered by Engine, partners get all the capabilities with none of the operational overhead. The integration platform includes clean API documentation, no volume minimums, and a full sandbox environment.
Core differentiators include a quick-start integration path, AI-powered content enrichment, personalization, payment flexibility, and infrastructure that scales from a first booking to millions.
“At Trimble, our mission is to transform the way the world works, which includes providing drivers with the essential tools they need to succeed on the road,” said Seth Handler, director, partnerships and channel sales at Trimble. “By integrating Omni by Engine into Trimble solutions, we’re removing friction from one of the most critical aspects of a driver’s day: finding a safe and reliable place to rest. This collaboration allows us to deliver real-time hotel booking capabilities directly within our ecosystem, enhancing the driver experience without requiring them to leave the platforms they already trust.”
“For the millions of professionals who spend their working lives on the road, access to convenient, affordable, and reliable lodging is one of the most practical ways a technology platform can improve their experience,” said Wallen. “For companies like Trimble, Omni can create a new product capability that deepens the value they deliver to customers and strengthens the role their platform plays in those customers' daily operations.”
Omni powered by Engine is available now. Developers and organizations can visit omni.engine.com to learn more, explore documentation, and contact Engine to discuss opportunities.
The Omni integration with Trimble Places is currently available in North America. The integrations with Trimble CoPilot® in-cab navigation solution and Trimble TMT Fleet Maintenance are expected to be available for customers in North America in the near future.
About Engine
Engine is a modern business and group travel platform trusted by over one million travelers. Engine saves businesses time and money through an extensive travel network that connects to nearly every hotel, airline, and car rental company in the U.S. It offers single invoice billing, the flexibility to modify or cancel trips without incurring additional fees, and a unified view of all company travel and spend. Customers rely on Engine to not only make travel easier to manage but also to make it enjoyable for everyone involved. Additionally, Engine helps coordinate room blocks for corporate offsites, sports teams, weddings, family reunions and more to help people get together in person. The company is backed by Telescope Partners, Blackstone, Elefund, and Permira. Learn more at engine.com.
About Trimble
Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble, visit: www.trimble.com.
A month has gone by since the last earnings report for Trimble Navigation (TRMB - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Trimble due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Trimble Inc. before we dive into how investors and analysts have reacted as of late.
TRMB Q1 Earnings Beat Estimates on Recurring Revenue StrengthTrimble reported first-quarter 2026 non-GAAP earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 9.7% and jumped 29.5% year over year. Revenues of $940 million increased 11.8% year over year and topped the consensus mark by 4%.
The reported quarter reflected continued execution on the company’s connect & scale strategy, supported by a record annualized recurring revenue (ARR) base of $2.43 billion, up 13% on an organic basis.
TRMB’s Top Line Split Shows Software Weight RisingIn the first quarter, subscription and services contributed $628.7 million (67% of revenues), and product revenues added $311.2 million (33% of revenues). The mix underscores the company’s steady shift toward a more recurring profile. Subscription and services increased 10.5% year over year, while product revenues increased 14.6%.
Segment-wise, AECO (Architects, Engineers, Construction, Owners) delivered $391.1 million of revenue, Field Systems generated $409.2 million, and Transportation & Logistics contributed $139.6 million. The portfolio balance helped the company post growth even as management acknowledged a constrained freight market.
Trimble’s AECO Engine Builds on Global ExpansionTrimble’s AECO segment produced 14% organic revenue growth, supported by cross-sell and upsell and the global expansion of Trimble Construction One. Segment ARR reached a record $1.51 billion, also up 14% organically, as the company extended the reach of its construction platform into the Asia Pacific.
Profitability improved meaningfully in AECO. Operating income margin expanded 420 basis points (bps) year over year to 31.5%, reflecting recurring revenue growth and operating expense leverage. Management also highlighted continued progress in bringing ProjectSight to Europe, supporting a broader international go-to-market motion.
TRMB’s Field Systems Demand Stayed Solid in CivilTRMB’s Field Systems segment posted 12% organic growth in both revenues and ARR. Management cited strength in civil construction, with infrastructure and data center end markets supporting demand, while the segment continued absorbing headwinds from model conversions to recurring revenues.
The company pointed to civil construction and geospatial demand tied to road construction, solar, manufacturing, and data center projects. ARR growth was driven by subscription offerings, including WorksPlus machine control, Positioning Services, and Trimble Business Center, along with extended warranties.
Trimble’s Transportation Unit Leans Into AI-Led WorkflowTrimble’s Transportation & Logistics segment delivered 7% organic revenue growth and 9% organic ARR growth on an as-adjusted basis. Operating income margin increased 300 bps year over year to 24.2%, as the team worked through stranded costs after the Mobility divestiture.
Management emphasized accelerating AI initiatives across the portfolio. The company noted it is monetizing AI through a mix of license-based and consumption-based models, including autonomous procurement and autonomous quotation in transportation. Trimble also discussed the SketchUp integration with Anthropic’s Claude, positioned as a path to expand the addressable market by converting new users into downstream SketchUp subscriptions.
TRMB’s Q1 Margins Expanded Y/YNon-GAAP profitability improved in the quarter, with gross margin at 71%, an expansion of 110 basis points (bps) year over year.
Adjusted EBITDA was $257.7 million, translating to a 27.4% margin, up 150 bps year over year.
Non-GAAP operating income margin was 25.9% versus 23.6% reported in the year-ago quarter.
Trimble’s Balance Sheet Remains StrongTRMB ended the quarter with $234.1 million in cash and equivalents and total debt of $1.413 billion.
Cash generation remained strong. Free cash flow was $268.6 million compared with $149.0 million in the year-ago period, supported by operating cash flow of $274.7 million and capital expenditures of $6.1 million.
During the quarter, the company repurchased about 4.7 million shares for $316.9 million, with $608 million remaining under its current authorization.
Trimble Raises 2026 Guidance After Strong StartTrimble raised its 2026 outlook. The company expects revenues of $3.835-$3.915 billion and non-GAAP earnings of $3.47-$3.64 per share. Organic ARR growth is projected at 12%-14%.
The company’s updated 2026 view also indicates a non-GAAP operating margin of 27.9%-28.5% and an adjusted EBITDA margin of 29.4%-30.0%.
For the second quarter of 2026, Trimble expects revenue of $938-$963 million and non-GAAP earnings of 78-82 cents per share.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM ScoresAt this time, Trimble has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Trimble has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerTrimble is part of the Zacks Manufacturing - General Industrial industry. Over the past month, Generac Holdings (GNRC - Free Report) , a stock from the same industry, has gained 4.3%. The company reported its results for the quarter ended March 2026 more than a month ago.
Generac Holdings reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +12.4%. EPS of $1.80 for the same period compares with $1.26 a year ago.
Generac Holdings is expected to post earnings of $1.96 per share for the current quarter, representing a year-over-year change of +18.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Generac Holdings has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In monday.com To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in monday.com between September 17, 2025 and February 6, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against monday.com Ltd. (“monday.com” or the “Company”) (NASDAQ: MNDY) and reminds investors of the May 11, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of monday.com’s revenue expansion outlook, notably decelerating growth, reduced expansion momentum and extended sales cycles.
On its February 9, 2026, earnings call, monday.com disclosed two specific headwinds that it had built into its 2026 guidance: persistent weakness in its "no-touch" performance marketing channel serving small and medium businesses, and a 100-200 basis point foreign exchange drag driven by Israeli shekel appreciation. Separately, monday.com is increasing investment in AI products - including Monday Vibe, Monday Sidekick, and Monday Agents - which management cited as requiring incremental spending. The company guided gross margins to decline from 90% to the mid-to-high 80s in FY2026, attributed in part to AI infrastructure costs. R&D spending rose from 17% to 19% of revenue in FY2025, and management guided for mid-teens percentage headcount growth in FY2026 concentrated in sales and R&D. These investments reduce near-term profitability while the revenue contribution from AI products remains early-stage - Monday Vibe reached $1 million in ARR, a small fraction of the company's $1.2 billion annual revenue base.
On this news the price of monday.com’s common stock declined $20.37, or 20.78% to close at $77.63 per share on February 9, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding monday.com’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the monday.com class action, go to www.faruqilaw.com/MNDY or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Monday.com (MNDY 2.54%) blew well past analyst estimates in its first quarter of this year, and investors rewarded the specialized tech company's stock on its namesake trading day. It closed that session nearly 7% higher in price.
Notable improvement on the top line Monday.com posted revenue of more than $351 million in the period, a 24% increase over the same quarter of 2025. In a less sunny development, the enterprise software specialist's net income not under generally accepted accounting principles (GAAP) fell, although not significantly, by 4% year over year to slightly over $56 million ($1.17 per share).
Image source: Getty Images.
Nobody likes a decline in key fundamentals, but Monday.com handily beat the average pundit estimate of $0.95 per share for non-GAAP (adjusted) net income. On top of that, it crushed the $339 million consensus revenue estimate.
In its earnings release, Monday.com attributed its gains to a clutch of positive factors, not least its recent shift to consumption-based pricing.
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A beat on guidance too Monday.com management also proffered guidance for both its current (second) quarter and the entirety of 2026. For the full year, it's expecting revenue of just under $1.47 billion to slightly over that number, with adjusted operating income of $185 million to $191 million.
Although it didn't provide any net income forecasts, that revenue projection tops the analyst consensus of just under $1.46 billion.
Monday.com clearly understands the needs of its enterprise clients, as evidenced by its impressive revenue growth. I'm also encouraged by the very recent release of the company's artificial intelligence (AI)-powered AI Work Platform, which harnesses cutting-edge technology to make the lives of customers even easier. I think the market's bullish reaction to the quarter was entirely justified.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monday.com. The Motley Fool has a disclosure policy.
New York, New York--(Newsfile Corp. - May 11, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of monday.com Ltd. (NASDAQ: MNDY) between September 17, 2025 and February 6, 2026, both dates inclusive (the "Class Period"), of the important May 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased monday.com common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the monday.com class action, go to https://rosenlegal.com/submit-form/?case_id=55823 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of monday.com's revenue expansion outlook; notably decelerating growth, reduced expansion momentum and extended sales cycles. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the monday.com class action, go to https://rosenlegal.com/submit-form/?case_id=55823 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296921
Source: The Rosen Law Firm PA
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NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)--monday.com (NASDAQ: MNDY), the AI work platform that turns strategy into execution, at scale, today announced that members of its management team will participate in the Morgan Stanley Technology, Media & Telecom Conference on Tuesday, May 19th, 2026 at 2:15pm ET.
The presentation will cover recent events in a fireside chat format and will be webcast live on monday.com’s investor relations website at http://ir.monday.com. A replay of the presentation will be made available on the website under the News and Events section.
About monday.com:
monday.com is the AI work platform that not only helps manage and orchestrate work, but also does the work for you. Over 250,000 customers worldwide use monday.com to bring people, workflows, and AI agents together on one flexible platform, where AI doesn't just assist, it executes. From work management and CRM to service and dev, every monday.com product runs on the same AI layer, automating tasks, running workflows, and helping teams deliver exponentially more with less effort. Visit monday.com to learn more.
monday.com Announces Participation in the J.P. Morgan Global Technology, Media and Communications Conference monday.com (NASDAQ: MNDY), the AI work platform that turns strategy into execution, at scale, today announced that members of its management team will participate in the Morgan Stanley Technology, Media & Telecom Conference on Tuesday, May 19th, 2026 at 2:15pm ET.
The presentation will cover recent events in a fireside chat format and will be webcast live on monday.com’s investor relations website at http://ir.monday.com. A replay of the presentation will be made available on the website under the News and Events section.
About monday.com:
monday.com is the AI work platform that not only helps manage and orchestrate work, but also does the work for you. Over 250,000 customers worldwide use monday.com to bring people, workflows, and AI agents together on one flexible platform, where AI doesn't just assist, it executes. From work management and CRM to service and dev, every monday.com product runs on the same AI layer, automating tasks, running workflows, and helping teams deliver exponentially more with less effort. Visit monday.com to learn more.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260513899068/en/
Monday.com (MNDY - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this project management software developer have returned +5.1% over the past month versus the Zacks S&P 500 composite's +7.7% change. The Zacks Internet - Software industry, to which Monday.com belongs, has lost 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Monday.com is expected to post earnings of $1.00 per share for the current quarter, representing a year-over-year change of -8.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $4.28 points to a change of -2.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $5.17 indicates a change of +20.8% from what Monday.com is expected to report a year ago. Over the past month, the estimate has changed +1.2%.
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 Monday.com.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Monday.com, the consensus sales estimate for the current quarter of $354.92 million indicates a year-over-year change of +18.7%. For the current and next fiscal years, $1.47 billion and $1.7 billion estimates indicate +19.3% and +15.4% changes, respectively.
Last Reported Results and Surprise HistoryMonday.com reported revenues of $351.27 million in the last reported quarter, representing a year-over-year change of +24.5%. EPS of $1.15 for the same period compares with $1.1 a year ago.
Compared to the Zacks Consensus Estimate of $338.9 million, the reported revenues represent a surprise of +3.65%. The EPS surprise was +19.79%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Monday.com is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Monday.com. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Monday.com (MNDY - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Monday.com currently has an average brokerage recommendation (ABR) of 1.64, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.64 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 16 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 64% and 8% of all recommendations.
Brokerage Recommendation Trends for MNDY
Check price target & stock forecast for Monday.com here>>>
While the ABR calls for buying Monday.com, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MNDY Worth Investing In?Looking at the earnings estimate revisions for Monday.com, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.28.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Monday.com. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Mondaycom.
