Oil prices tumbled in Tuesday trading, with Brent crude futures falling 3% and WTI down 3.5% as of 3:15 p.m. ET -- and both flavors of oil suffered even bigger losses earlier in the day.
Curiously, ConocoPhillips (COP +1.40%) stock didn't. This oil major started the day off with only about a 2% decline and remains down about 2.2%. Why?
Image source: Getty Images.
Is the Strait of Hormuz leaking oil? In an interview with CNBC this morning, U.S. Energy Secretary Chris Wright asserted that despite what you might have heard, oil shipments through the Strait of Hormuz are "rising very meaningfully" as U.S. Navy vessels coordinate with commercial captains to move their tankers safely through the contested waters. This goes against the accepted wisdom, but according to one recent JPMorgan report, oil shipments through the Strait may now be reaching 2 million barrels per day -- still a fraction of pre-war traffic, but significantly more than many investors were aware of.
And if these reports are true, it would imply that global oil supplies may not be as tight as we thought -- causing investors to worry about the durability of Conoco's profits.
Today's Change
(
1.40
%) $
1.62
Current Price
$
116.98
What it might mean for ConocoPhillips But are the reports true? And even if they are, will they stay true long enough to slake pent-up oil demand and allow prices to fall significantly? I have my doubts.
Continued tensions -- and missile fire! -- continue between Israel and Iran, and between U.S. naval forces and Iran as well. Repeated assurances from the President that a "deal" with Iran is just days away have been issued, then disappointed for weeks. On top of all this, there's the damage already done to oil infrastructure in Gulf oil states, which will take years to repair.
Seems to me, oil prices could stay high at least that long.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends ConocoPhillips. The Motley Fool has a disclosure policy.
If you bought iShares U.S. Energy ETF (NYSEARCA:IYE) on the last trading day of 2025 at about $47 and you are still holding it this morning at about $61, you are sitting on an about 29% gain in a little over five months. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up about 8% over the same window. Energy, the sector everyone left for dead in 2024 and the back half of 2025, has been the trade of 2026 so far, and not by a little.
A $10,000 stake in IYE on December 31, 2025 is worth about $12,854 today. The same $10,000 in SPY is worth about $10,808. That gap, almost three to one, is the kind of spread you usually see in a thematic single-stock bet, not in two broad index products owned by retirement accounts. So the obvious question is what put it there, and the slightly less obvious question is whether any of it travels into the back half of the year.
The arithmetic, with a fair window IYE finished 2025 around $47 and closed yesterday at $61. Over twelve months, the move is even larger, with the ETF up about 41% versus about 23% for SPY. The five-year picture, which captures the post-pandemic energy rerating and the soft patch that followed, has IYE up about 138%, modestly ahead of SPY at about 74% on a price basis.
One honest caveat. IYE pays a meaningful dividend, and the price-only number understates total return for any holder who reinvested distributions. The figures above are adjusted closes, which is the cleanest apples-to-apples available against SPY. The headline 27% in the title rounds down the 28.54% figure, which is fine for a magazine number, but anyone running this through a spreadsheet should use the longer figure.
What actually did the work Three things, in roughly this order of importance. The first and biggest is crude.
WTI started 2026 near $57.26 a barrel and ran to a 52-week high of $114.58 on April 7. Brent did the same trip from $61.98 on January 2 to $138.21 on April 7. The trigger was the de facto closure of the Strait of Hormuz, which the EIA flagged in its May Short-Term Energy Outlook as the central reason it expected global oil inventories to fall by an average of 8.5 million b/d in 2Q26 and Brent to average around $106/b in May and June. When a chunk of the world’s seaborne crude cannot move, the marginal barrel reprices fast, and equities of companies that own the barrel reprice with it.
The second thing is what those companies did with the windfall. IYE is concentrated in a handful of large-cap U.S. producers. Exxon Mobil (NYSE:XOM | XOM Price Prediction) reported Q1 2026 adjusted EPS of $1.16 versus a $1.01 consensus, with underlying earnings rising to $8.77 billion from $7.58 billion a year earlier even as headline net income was distorted by a $3.88 billion derivative timing hit and a $706 million Middle East supply disruption loss. CEO Darren Woods told investors that “this quarter demonstrated that ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles.” Exxon shares are up 25.4% year to date.
Chevron (NYSE:CVX) did even better against the bar. Q1 2026 adjusted EPS came in at $1.41 against a $0.97 consensus, a beat of about 46% and the company’s sixth straight, with worldwide production up 15% year over year on the Hess integration and a third consecutive quarter of U.S. output above 2 million barrels per day. CEO Mike Wirth framed it directly. “Despite heightened geopolitical volatility and related supply disruptions, Chevron delivered solid first quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution.” Chevron is up about 25% YTD. ConocoPhillips (NYSE:COP) printed Q1 adjusted EPS of $1.89 versus $1.69 expected and is up about 27%.
The third piece is the part that gets undercovered. These companies started the year cheap and shareholder-friendly. Exxon is running a $20 billion buyback program in 2026 and extended its 43 consecutive years of dividend growth. Chevron returned $27.1 billion to shareholders in 2025 and raised its dividend for the 39th straight year. ConocoPhillips is targeting 45% of cash flow from operations back to shareholders. When the commodity spikes against that backdrop, you get a fund priced for a 2024 oil regime suddenly earning a 2026 oil regime’s cash flows, with the buyback already authorized to soak up the float.
The recent wobble The last month has been quieter. IYE is up only about 3% over the past 30 days and down about 1% on the week, with WTI pulling back from its April peak to $95.96 by June 1. That is consistent with the EIA’s working assumption that the strait reopens in late May and shut-in production gradually returns. The energy trade has stopped getting easier.
What you actually need to watch from here The mechanism that drove IYE’s 28.54% YTD is regime-dependent, not structural. The EIA’s own forecast has Brent falling to an average of $89/b in 4Q26 and $79/b in 2027 as Middle East barrels return. If they are right, the back half of 2026 looks materially harder for energy equities than the front half did, because the marginal price of crude that powered Q1 earnings will not be there to power Q3 and Q4.
Three things are worth tracking, and all are observable without a Bloomberg terminal. One, Strait of Hormuz tanker traffic, which the EIA publishes and the major shipping trackers update daily. A durable reopening is the single biggest bear case for IYE from here. Two, the Brent forward curve, which currently embeds the EIA’s glide path lower. If futures roll back into the $100s and stay there, the energy trade still has legs. If they drift toward $80, the easy money is behind you. Three, capital discipline at the majors. Exxon’s $27 to $29 billion 2026 capex guide and Chevron’s structural cost program are the reason these stocks compound through cycles rather than just spike through them. If either company breaks discipline and starts chasing the price with the drill bit, the long-term thesis weakens regardless of where crude prints.
The honest read is that IYE has done what it does. It owns a concentrated basket of oil-and-gas majors, and when crude triples off a December low because a strategic chokepoint closes, the basket triples-adjacent. The capital return story underneath those stocks is durable. The crude price that delivered a 28.54% YTD in five months is probably not. If you missed the run, the right question is whether you want sector exposure for the next geopolitical surprise (the case for owning some IYE through the cycle), or whether you are reaching for a tape that the world’s energy agencies are openly forecasting to cool. Pick one. The ETF will not pick for you.
Key Takeaways BP says it has made 14 discoveries since early 2025, including Bumerangue at 8B barrels in place.COP's crude-heavy revenue mix and low-cost Permian, Eagle Ford and Bakken drilling could pay off for decades.XOM's upstream footprint spans the Permian and Guyana, positioning it to benefit from high oil prices. West Texas Intermediate (“WTI”) crude is trading at more than $85 per barrel. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $88.32 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting BP plc's (BP - Free Report) exploration and production activities, which generate a significant proportion of its earnings.
The British energy major’s production outlook seems bright, thanks to major discoveries. On its latest earnings call, BP mentioned that since the beginning of 2025, it has made 14 discoveries. BP said Bumerangue appears to be a very large oil discovery, estimated at around 8 billion barrels in place, though further appraisal work is needed to determine how much can actually be extracted and commercialized.
Given the prevailing high crude pricing environment and key discoveries, the British energy giant’s overall upstream business outlook, both in the near and long terms, seems highly encouraging.
Will XOM & COP Also Gain From High Oil Prices?Like BP, Exxon Mobil Corporation (XOM - Free Report) and ConocoPhillips (COP - Free Report) will benefit from the ongoing strength in oil prices. Let’s delve a little deeper.
With COP generating a significant proportion of revenues from crude oil, the high price of the commodity is extremely favorable for the leading oil and gas exploration and production company, much like other energy giants such as XOM and BP.
The upstream energy giant also has low-cost drilling opportunities across Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks highly profitable.
To provide a glimpse of ExxonMobil’s upstream assets, the company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. Hence, XOM is also well-positioned to capitalize on the ongoing high commodity prices.
BP’s Price Performance, Valuation & EstimatesShares of BP have gained 38.9% over the past year, surpassing the industry’s 35.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BP trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 3.20X. This is below the broader industry average of 6.40X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BP’s 2026 earnings has seen upward revisions over the past 30 days.
Image Source: Zacks Investment Research
BP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ConocoPhillips (COP) is delivering robust FCF, with a current annualized yield near 7% and a strong commitment to shareholder returns. COP targets $7 billion in FCF improvement by 2029, driving FCF yields from high single-digits to double-digits at current oil prices. The company maintains a resilient balance sheet, minimal leverage, and a disciplined capital return policy, returning 45% of CFO to shareholders.
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Stock to Watch: ConocoPhillips (COP - Free Report) Headquartered in Houston, TX, ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. Considering proved reserves and production, the company is among the largest explorers and producers in the world. The company, founded in 1875, has a strong presence across conventional and unconventional plays in 13 countries. ConocoPhillips’ low-risk and cost-effective operations are spread across North America, Asia, Australia and Europe.
COP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.5; value investors should take notice.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.57 to $10.03 per share. COP boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, COP should be on investors' short list.
ConocoPhillips (NYSE:COP | COP Price Prediction) has staged a powerful rebound in 2026, riding a recovery in crude oil prices and steady free cash flow execution. The question for investors is whether the next leg higher is ahead or whether the stock has gotten ahead of fundamentals.
Our 24/7 Wall St. price target for ConocoPhillips is $111.61, modestly below the current quote of $118.05. That implies -5.46% downside over the next 12 months, supporting a hold rating with high confidence at 90%.
. 24/7 Wall St. Price Target Summary Metric Value Current Price $118.05 24/7 Wall St. Price Target $111.61 Upside/Downside -5.46% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our price target sits below current levels. The Street consensus target is $142.77, materially higher, and upside could come from a Strait of Hormuz risk premium pushing Brent toward EIA’s $106/b path, or from the Willow project derisking ahead of schedule. Consider our target as one datapoint among many.
From Sub-$90 to $118: The 2026 Crude Rebound COP is up 25.07% year to date and 27.66% over the trailing year, tracking WTI’s surge from a January low of $56.01/b to a recent $95/b.
Q1 2026 results showed adjusted EPS of $1.89, beating consensus by 11.62%, on revenue of $16.05 billion. Production hit 2,309 MBOED, with the Willow project reaching 50% completion. CEO Ryan Lance reiterated the plan to return 45% of CFO to shareholders and repurchased $1 billion in stock during the quarter.
The Case for $140+ Bulls have plenty to lean on. The Marathon Oil integration is delivering over $1 billion in run-rate synergies, and management is targeting $7 billion of incremental free cash flow by 2029. Willow, North Field East LNG (first cargo H2 2026), and Port Arthur LNG (80% complete) form a multi-year volume and margin story.
Wall Street is overwhelmingly constructive: 18 Buy ratings, 9 Holds, zero Sells, with a consensus target of $142.77. If WTI sustains EIA’s projected $106/b Brent path through mid-2026, the bull case lands at $136.11.
The Risks Worth Watching The bear case starts with the commodity. EIA expects Brent to fade to $89/b in 4Q26 and $79/b in 2027 as Middle East supply returns. COP’s Q1 realized price was $50.36 per BOE, down 6% YoY, and operating cash flow fell 29.76%. Insider activity has skewed toward net selling across 15 recent transactions, and capex guidance was raised to $12 to $12.5 billion.
Bulls counter that higher spend reflects incremental Permian activity and front-loaded LNG investment, both feeding the post-2027 free cash flow ramp. The bear case price lands at $100.67.
ConocoPhillips Price Prediction 2026-2030 Our 24/7 Wall St. price target for ConocoPhillips is $111.61, with a hold rating and 90% confidence. Forward EPS of $6.62 already implies meaningful crude price stability that EIA’s own outlook does not endorse beyond mid-year.
The bullish setup strengthens if WTI holds above $95 into year-end and Willow stays on its 2029 timeline. The thesis weakens if Brent fades toward $79 as forecast, pressuring realized prices and the buyback cadence.
Year 24/7 Wall St. Price Target 2026 $111.61 2027 $113.40 2028 $115.20 2029 $117.00 2030 $118.79 These projections assume ConocoPhillips continues executing on Willow, LNG ramp, and the 45% CFO return target. Significant upside or downside could result from sustained oil price moves outside the $70 to $100 range or a step change in OPEC+ policy.
, /PRNewswire/ -- Selvita S.A. (WSE: SLV), one of the leading Drug Discovery and Development organizations in Europe, has published its financial results for Q1 2026 and latest backlog. The Company has decided to launch a strategic options review for the Group's further development and to maximize long-term shareholder value.
The Group's operating revenues in Q1 amounted to EUR 19.1 million, at the upper end of the preliminary estimated results range of EUR 18.4-19.3 million. The EBITDA margin(1) reached 14%, compared to the estimated range of 13-16%. As a result of the cost-saving program implemented in H2 2025, operating costs in Q1 2026 were reduced by approximately EUR 1.5 million. Drug Development segment: Commercial revenues increased by 6% y/y in Q1 2026 to EUR 6.2 million, representing 35% of the Group's commercial revenues. Segment EBITDA amounted to EUR 1.7 million, up 2% y/y(1). Segment backlog increased 15% y/y supporting the Group's expectation of continued future growth driven by strategic alignment to fast-growing modalities. Drug Discovery segment: Commercial revenues in Q1 2026 amounted to EUR 11.6 million, compared to EUR 15.6 million in the prior year. Segment EBITDA(1) amounted to EUR 1.0 million, compared to EUR 1.9 million in Q1 2025. This was primarily due to the continuing challenging market for outsourced European drug discovery services companies and some project delays. The full-year 2026 backlog as of May 18, 2026 stands at EUR 58.1 million(2) compared to EUR 58.9 million last year. A webcast to discuss Selvita's Q1 results and outlook for 2026 will be held on May 21 at 11:00 CET. The event will be available at live.selvita.com Selvita announced the launch of a strategic review to assess options to support the Group's further development and maximize shareholder value. Boguslaw Sieczkowski, Co-Founder, significant shareholder and Chief Executive Officer of Selvita said:
"We are observing a progressive recovery in the biotechnology sector, particularly in the United States. However, the market remains volatile, as reflected, amongst other factors, in our Q1 results. We are focusing our efforts on ensuring that the subsequent periods show clear improvement, reflecting the acceleration of growth in Drug Development and a stabilized performance in Drug Discovery. Our profitability is supported by the cost-saving program implemented in the second half of 2025.
"The Drug Development segment has grown by 20-25% in recent years and is now a key growth driver for the Group, already accounting for more than one-third of commercial revenues. We see potential for its further development and have identified specific pathways by which we can accelerate growth in this segment.
"The Drug Discovery segment continues its transformation, driven by ongoing structural changes in the outsourced European drug discovery services market. Last year, we optimized the segment's resources. We are currently focusing our efforts on more complex, high-margin services and increasing automation."
Dariusz Kurdas, Management Board Member and Chief Financial Officer of Selvita, said:
"With EUR 19.1 million in operating revenues and a 14% EBITDA margin, we came in the middle of the range of the Q1 preliminary estimates published earlier. In the Drug Discovery segment we observed some project delays. These projects are still expected in the remaining quarters of the year, supporting improved financial performance compared to Q1. This year, we expect an improvement in profitability thanks to the approximately EUR 6.4 million in savings under the optimization program."
STRATEGIC OPTIONS REVIEW
Selvita has continued to observe contrasting market dynamics across Drug Discovery and Drug Development.
In Drug Discovery, the European outsourced services market has remained challenging. However, the Group sees encouraging signs in the biotechnology funding environment and preliminary signs of increased levels of new pipeline opportunities which will support improved performance for the remainder of 2026 compared to Q1. Over the medium term, the Group expects continued headwinds in certain areas of small molecule Drug Discovery, whilst demand for high value-add and integrated services, especially for advanced modalities, is expected to continue to grow.
In Drug Development, the Group expects to see continued momentum in demand for services, notably in fast-growing advanced modalities.
In light of this market backdrop, Selvita has commenced a broad strategic review to assess options which would support the Group in achieving larger scale and maximizing long-term shareholder value.
The Group is considering, and is open to, a variety of strategic options, which may include a take private transaction, or an acceleration of Selvita's M&A and organic growth initiative capital deployment strategy. This includes scenarios where additional financing would be considered solely to support such value-accretive opportunities and incremental growth initiatives.
Selvita has not set a timetable for the review, nor has it made any decisions at this stage regarding the selection of or preference for any option. Updates on the conclusion of the strategic review will be publicly communicated by Selvita as and when appropriate, and in accordance with applicable regulations.
The strategic options review will be conducted with a strong focus on uninterrupted client service, operational stability, and continued excellence in project delivery.
To facilitate the strategic review, Selvita has engaged Rothschild & Co as financial adviser.
Boguslaw Sieczkowski said:
"It is our belief that the Drug Discovery and Drug Development markets are evolving to favour players of larger scale with broad geographic and service offering capabilities across modalities. We do not believe the Group's current valuation reflects its growth trajectory in Drug Development and unique capabilities and market positioning in Drug Discovery. We, therefore, think that now is an appropriate time to assess our potential strategic options. The underlying premise of the process is to improve the prospects of each of the Group's segments and deliver shareholder value."
Q1 2026 FINANCIAL RESULTS
Operating revenues in Q1 2026 amounted to EUR 19.1 million, compared to EUR 21.8 million in the prior year. The negative impact of foreign exchange differences on revenues amounted to approximately EUR 0.2 million.
Group EBITDA in Q1 2026 amounted to EUR 2.7 million, compared to EUR 3.6 million in the prior year(1). The EBITDA margin reached 14%. Savings resulting from the implemented optimization program amounted to approximately EUR 1.5 million.
Commercial revenues in the Drug Discovery segment in Q1 2026 amounted to EUR 11.6 million, compared to EUR 15.6 million in the prior year. Segment EBITDA(1) amounted to EUR 1.0 million, compared to EUR 1.9 million in the prior year.
Commercial revenues in the Drug Development segment in Q1 2026 amounted to EUR 6.2 million, up 6% y/y, already accounting for 35% of total commercial revenues. Segment EBITDA reached EUR 1.7 million, up 2% y/y, corresponding to a margin of 27%(1).
BACKLOG FOR 2026(2)
The Group's backlog for 2026 amounts to EUR 58.1 million compared to EUR 58.9 million in the same period last year.
The backlog in the Drug Discovery segment stands at EUR 35.3 million (down 13% y/y), while in the Drug Development segment it amounts to EUR 19.4 million (up 15% y/y).
DRUG DISCOVERY TECHNOLOGIES DEVELOPMENT PROGRAM FOR 2026-2029
In recent quarters, Selvita secured four non-dilutive grants with a combined subsidy value of EUR 26.4 million. Nearly half of this amount – EUR 12.0 million - will be invested in the development of advanced services in 2026-2029. Together, these projects represent the most intensive technology development program in the Group's history, spanning most departments within the Drug Discovery segment and incorporating a significant AI component.
The remaining portion of the grant funding will support infrastructure development, including the acquisition of state-of-the-art equipment and, in 2028-2029, the expansion of Selvita's own laboratory space in Kraków. The potential investment in new, specialized research facilities will be financed through a combination of grant funding (approx. 40%), bank debt (approx. 50%), and the Group's own funds (approx. 10%). In March 2026, Selvita signed a loan agreement securing financing for the investment. The largest share of capital expenditures is planned for the final phase of the investment, scheduled for 2029.
(1) Results exclude non-cash costs of the non-dilutive employee incentive program.
(2) Backlog as of May 18, 2026 and May 19, 2025; includes the revenues already invoiced in the financial year and portfolio of orders for the financial year.
All % calculated from PLN. All values are calculated from PLN using an average exchange rate for the respective reporting period.
About Selvita (WSE: SLV; sWIG80)
Selvita is one of the leading Drug Discovery and Development organizations in Europe. The Company provides comprehensive solutions supporting clients and their programs across a broad range of therapeutic areas, with expertise in infectious diseases, inflammation, fibrosis, and oncology. Selvita offers a wide range of standalone and fully integrated drug discovery and development solutions. Its service portfolio spans the entire value chain, from early-stage drug discovery to preclinical development, for both small molecules and therapeutic antibodies.
The Selvita Group has been operating since 2007 and employs approximately 900 highly qualified specialists. More than 30% of Selvita's scientists hold a PhD degree. The Group's headquarters and main laboratories are located in Kraków, Poland, with additional research facilities in Poznań, Wrocław, and Zagreb, Croatia. The Company's sales offices are located in major global biotech hubs, including the Boston and San Francisco Bay Areas in the United States, as well as Cambridge in the United Kingdom.
Selvita is listed on the Warsaw Stock Exchange (WSE: SLV) and is a component of the sWIG80 index.
For more information, please visit: www.selvita.com
, /PRNewswire/ -- Selvita S.A. (WSE: SLV), one of the leading Drug Discovery and Development organizations in Europe, has published its financial results for Q1 2026 and latest backlog. The Company has decided to launch a strategic options review for the Group's further development and to maximize long-term shareholder value.
The Group's operating revenues in Q1 amounted to EUR 19.1 million, at the upper end of the preliminary estimated results range of EUR 18.4-19.3 million. The EBITDA margin(1) reached 14%, compared to the estimated range of 13-16%. As a result of the cost-saving program implemented in H2 2025, operating costs in Q1 2026 were reduced by approximately EUR 1.5 million.Drug Development segment: Commercial revenues increased by 6% y/y in Q1 2026 to EUR 6.2 million, representing 35% of the Group's commercial revenues. Segment EBITDA amounted to EUR 1.7 million, up 2% y/y(1). Segment backlog increased 15% y/y supporting the Group's expectation of continued future growth driven by strategic alignment to fast-growing modalities.Drug Discovery segment: Commercial revenues in Q1 2026 amounted to EUR 11.6 million, compared to EUR 15.6 million in the prior year. Segment EBITDA(1) amounted to EUR 1.0 million, compared to EUR 1.9 million in Q1 2025. This was primarily due to the continuing challenging market for outsourced European drug discovery services companies and some project delays.The full-year 2026 backlog as of May 18, 2026 stands at EUR 58.1 million(2) compared to EUR 58.9 million last year.A webcast to discuss Selvita's Q1 results and outlook for 2026 will be held on May 21 at 11:00 CET. The event will be available at live.selvita.comSelvita announced the launch of a strategic review to assess options to support the Group's further development and maximize shareholder value.Boguslaw Sieczkowski, Co-Founder, significant shareholder and Chief Executive Officer of Selvita said:
"We are observing a progressive recovery in the biotechnology sector, particularly in the United States. However, the market remains volatile, as reflected, amongst other factors, in our Q1 results. We are focusing our efforts on ensuring that the subsequent periods show clear improvement, reflecting the acceleration of growth in Drug Development and a stabilized performance in Drug Discovery. Our profitability is supported by the cost-saving program implemented in the second half of 2025.
"The Drug Development segment has grown by 20-25% in recent years and is now a key growth driver for the Group, already accounting for more than one-third of commercial revenues. We see potential for its further development and have identified specific pathways by which we can accelerate growth in this segment.
"The Drug Discovery segment continues its transformation, driven by ongoing structural changes in the outsourced European drug discovery services market. Last year, we optimized the segment's resources. We are currently focusing our efforts on more complex, high-margin services and increasing automation."
Dariusz Kurdas, Management Board Member and Chief Financial Officer of Selvita, said:
"With EUR 19.1 million in operating revenues and a 14% EBITDA margin, we came in the middle of the range of the Q1 preliminary estimates published earlier. In the Drug Discovery segment we observed some project delays. These projects are still expected in the remaining quarters of the year, supporting improved financial performance compared to Q1. This year, we expect an improvement in profitability thanks to the approximately EUR 6.4 million in savings under the optimization program."
STRATEGIC OPTIONS REVIEW
Selvita has continued to observe contrasting market dynamics across Drug Discovery and Drug Development.
In Drug Discovery, the European outsourced services market has remained challenging. However, the Group sees encouraging signs in the biotechnology funding environment and preliminary signs of increased levels of new pipeline opportunities which will support improved performance for the remainder of 2026 compared to Q1. Over the medium term, the Group expects continued headwinds in certain areas of small molecule Drug Discovery, whilst demand for high value-add and integrated services, especially for advanced modalities, is expected to continue to grow.
In Drug Development, the Group expects to see continued momentum in demand for services, notably in fast-growing advanced modalities.
In light of this market backdrop, Selvita has commenced a broad strategic review to assess options which would support the Group in achieving larger scale and maximizing long-term shareholder value.
The Group is considering, and is open to, a variety of strategic options, which may include a take private transaction, or an acceleration of Selvita's M&A and organic growth initiative capital deployment strategy. This includes scenarios where additional financing would be considered solely to support such value-accretive opportunities and incremental growth initiatives.
Selvita has not set a timetable for the review, nor has it made any decisions at this stage regarding the selection of or preference for any option. Updates on the conclusion of the strategic review will be publicly communicated by Selvita as and when appropriate, and in accordance with applicable regulations.
The strategic options review will be conducted with a strong focus on uninterrupted client service, operational stability, and continued excellence in project delivery.
To facilitate the strategic review, Selvita has engaged Rothschild & Co as financial adviser.
Boguslaw Sieczkowski said:
"It is our belief that the Drug Discovery and Drug Development markets are evolving to favour players of larger scale with broad geographic and service offering capabilities across modalities. We do not believe the Group's current valuation reflects its growth trajectory in Drug Development and unique capabilities and market positioning in Drug Discovery. We, therefore, think that now is an appropriate time to assess our potential strategic options. The underlying premise of the process is to improve the prospects of each of the Group's segments and deliver shareholder value."
Q1 2026 FINANCIAL RESULTS
Operating revenues in Q1 2026 amounted to EUR 19.1 million, compared to EUR 21.8 million in the prior year. The negative impact of foreign exchange differences on revenues amounted to approximately EUR 0.2 million.
Group EBITDA in Q1 2026 amounted to EUR 2.7 million, compared to EUR 3.6 million in the prior year(1). The EBITDA margin reached 14%. Savings resulting from the implemented optimization program amounted to approximately EUR 1.5 million.
Commercial revenues in the Drug Discovery segment in Q1 2026 amounted to EUR 11.6 million, compared to EUR 15.6 million in the prior year. Segment EBITDA(1) amounted to EUR 1.0 million, compared to EUR 1.9 million in the prior year.
Commercial revenues in the Drug Development segment in Q1 2026 amounted to EUR 6.2 million, up 6% y/y, already accounting for 35% of total commercial revenues. Segment EBITDA reached EUR 1.7 million, up 2% y/y, corresponding to a margin of 27%(1).
BACKLOG FOR 2026(2)
The Group's backlog for 2026 amounts to EUR 58.1 million compared to EUR 58.9 million in the same period last year.
The backlog in the Drug Discovery segment stands at EUR 35.3 million (down 13% y/y), while in the Drug Development segment it amounts to EUR 19.4 million (up 15% y/y).
DRUG DISCOVERY TECHNOLOGIES DEVELOPMENT PROGRAM FOR 2026-2029
In recent quarters, Selvita secured four non-dilutive grants with a combined subsidy value of EUR 26.4 million. Nearly half of this amount – EUR 12.0 million - will be invested in the development of advanced services in 2026-2029. Together, these projects represent the most intensive technology development program in the Group's history, spanning most departments within the Drug Discovery segment and incorporating a significant AI component.
The remaining portion of the grant funding will support infrastructure development, including the acquisition of state-of-the-art equipment and, in 2028-2029, the expansion of Selvita's own laboratory space in Kraków. The potential investment in new, specialized research facilities will be financed through a combination of grant funding (approx. 40%), bank debt (approx. 50%), and the Group's own funds (approx. 10%). In March 2026, Selvita signed a loan agreement securing financing for the investment. The largest share of capital expenditures is planned for the final phase of the investment, scheduled for 2029.
(1) Results exclude non-cash costs of the non-dilutive employee incentive program.
(2) Backlog as of May 18, 2026 and May 19, 2025; includes the revenues already invoiced in the financial year and portfolio of orders for the financial year.
All % calculated from PLN. All values are calculated from PLN using an average exchange rate for the respective reporting period.
About Selvita (WSE: SLV; sWIG80)
Selvita is one of the leading Drug Discovery and Development organizations in Europe. The Company provides comprehensive solutions supporting clients and their programs across a broad range of therapeutic areas, with expertise in infectious diseases, inflammation, fibrosis, and oncology. Selvita offers a wide range of standalone and fully integrated drug discovery and development solutions. Its service portfolio spans the entire value chain, from early-stage drug discovery to preclinical development, for both small molecules and therapeutic antibodies.
The Selvita Group has been operating since 2007 and employs approximately 900 highly qualified specialists. More than 30% of Selvita's scientists hold a PhD degree. The Group's headquarters and main laboratories are located in Kraków, Poland, with additional research facilities in Poznań, Wrocław, and Zagreb, Croatia. The Company's sales offices are located in major global biotech hubs, including the Boston and San Francisco Bay Areas in the United States, as well as Cambridge in the United Kingdom.
Selvita is listed on the Warsaw Stock Exchange (WSE: SLV) and is a component of the sWIG80 index.
For more information, please visit: www.selvita.com
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Veeva Systems (VEEV - Free Report) reported $882.95 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 16.3%. EPS of $2.24 for the same period compares to $1.97 a year ago.
The reported revenue represents a surprise of +2.99% over the Zacks Consensus Estimate of $857.33 million. With the consensus EPS estimate being $2.13, the EPS surprise was +5.1%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Veeva performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Non-GAAP Gross Margin- Professional services and other: 29.5% versus 27.7% estimated by seven analysts on average.Non-GAAP Gross Margin- Subscription services: 86.8% versus the seven-analyst average estimate of 87%.Revenues- Subscription services: $730.18 million versus $720.28 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +15% change.Revenues- Professional services and other: $152.77 million compared to the $137.05 million average estimate based on seven analysts. The reported number represents a change of +22.9% year over year.Revenues- Professional services and other- Veeva R&D Solutions: $95.2 million versus $88.58 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +22.5% change.Revenues- Subscription services- Veeva R&D Solutions: $392.31 million versus the four-analyst average estimate of $386 million. The reported number represents a year-over-year change of +19.1%.Revenues- Subscription services- Veeva Commercial Solutions: $337.87 million compared to the $334.47 million average estimate based on four analysts. The reported number represents a change of +10.6% year over year.Revenues- Professional services and other- Veeva Commercial Solutions: $57.57 million versus the four-analyst average estimate of $48.72 million. The reported number represents a year-over-year change of +23.6%.View all Key Company Metrics for Veeva here>>>
Shares of Veeva have returned +6.9% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Veeva Systems Inc (VEEV) Q1 2027 Earnings Call Highlights: Surpassing Revenue Guidance and Unveiling AI Innovations Veeva Systems Inc (VEEV) reports strong revenue growth and introduces Veeva Falcon, an AI-driven product set to revolutionize drug development processes. Summary
Total Revenue: $883 million for the quarter.Non-GAAP Operating Income: $395 million.
Release Date: June 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Veeva Systems Inc VEEV reported total revenue of $883 million for the quarter, surpassing their guidance.The company introduced Veeva Falcon, a disruptive AI-driven product aimed at automating labor-intensive tasks in drug development.Strong performance in the R&D and Quality Cloud segments, with significant growth potential in early-stage products like eCOA and RTSM.Crossix continues to show robust growth, driven by increased digital spending in the pharma industry and new innovations.The acquisition of Ostro is expected to contribute significantly to commercial subscription revenue, enhancing Veeva's digital engagement capabilities. Negative Points Despite a strong start to the year, Veeva Systems Inc (VEEV) only raised its full-year revenue guidance by $5 million, indicating potential conservatism or unforeseen challenges.The transition to AI applications in pharma is complex, and the full integration of AI into existing systems may take time.There is a risk of cannibalization of traditional SaaS revenue streams as AI-driven solutions like Falcon become more prevalent.The company faces competitive pressure in the CRM space, with ongoing migration decisions among top 20 pharma companies.Veeva Systems Inc (VEEV) is making significant investments in AI and other areas, which could impact short-term margins and profitability. Q & A Highlights Q: Can you expand on Veeva Falcon and its impact on drug development?
A: Peter Gassner, CEO, explained that Falcon represents a new chapter for Veeva, focusing on agentic labor to replace tasks traditionally done by people. Falcon operates at the agent layer, enabling applications to function headlessly. This innovation is disruptive as it introduces AI agents to perform specific tasks, enhancing efficiency in drug development.
Q: How is the pharma industry's appetite for AI applications evolving, and what areas are they focusing on first?
A: Peter Gassner noted that pharma companies are not just transitioning from traditional applications to AI but are adopting a new architecture involving models, agents, and applications. They aim to become agentic biopharmas, allowing AI agents to handle routine tasks, enabling humans to focus on higher-value work.
Q: Can you provide context on the R&D business's strong start and the conservative full-year guidance?
A: Brian Van Wagener, CFO, highlighted that while R&D showed strong growth in Q1, the full-year guidance reflects the early scaling of large products like eCOA and Safety. The business remains healthy, with significant growth potential.
Q: What is driving the strong performance and market share gains for Crossix?
A: Paul Shawah, EVP of Strategy, attributed Crossix's success to the growing digital market and increased pharma spending on digital channels. Crossix is innovating by measuring new channels, which drives market share gains and positions it for durable growth.
Q: How is Veeva pricing Falcon, and which labor roles are being targeted first?
A: Peter Gassner stated that Falcon will likely be priced per document or case, focusing initially on high-volume, repetitive tasks like processing clinical trial documents and safety case triage. These areas are ripe for automation and align with existing outsourcing practices.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
More than 2,000 gathered to see the future of industry AI
AOP Health, Boehringer Ingelheim, GSK, Haleon, MSD, Novo Nordisk, Roche, Sanofi, and Sobi among leaders sharing strategies to streamline and connect operations
, /PRNewswire/ -- At the recent Veeva R&D and Quality Summit Europe held on 28-29 May in Copenhagen, Denmark, Veeva Systems (NYSE: VEEV) showcased its upcoming Veeva Falcon agentic labor platform and new Vault AI innovations. Leaders from across the industry — including AOP Health, Boehringer Ingelheim, GSK, MSD, Novo Nordisk, Roche, and Sanofi — shared their successes and how they are simplifying and standardizing operations and establishing a scalable path for AI.
Veeva shared Vault AI Agents available today and the planned release of Vault AI across all Vault applications in August 2026. The company also previewed Veeva Falcon agentic labor to reduce cost, increase speed, and maintain compliance in drug development. Planned for early adopters in late 2026, Falcon agentic labor will initially focus on trial master file document intake and quality control, health authority correspondence in regulatory, and safety case triage and intake.
The event brought together over 2,000 clinical, regulatory, safety, and quality leaders for more than 100 sessions. Insights shared included:
Accelerating development and manufacturing with connected clinical, regulatory, and quality
AOP Health speeding development to delivery with connected R&D, quality, commercial, and data on Veeva Industry Cloud Merck KGaA, Darmstadt, Germany optimizing data to create a foundation for AI and automation in regulatory Advancing clinical and site collaboration with unified data
Boehringer Ingelheim's end-to-end clinical operations to connect with sites and patients GSK standardizing site engagement for faster activation and improved performance Boehringer Ingelheim and Roche streamlining site payments and strengthening site collaboration Novo Nordisk, Sobi, and Syneos Health Consulting gaining full data ownership and clinical efficiency by connecting EDC to the clinical database Modernizing quality, safety, and compliance for increased productivity
Haleon and Sanofi preparing for agentic AI in quality that prioritizes efficiency gains Novo Nordisk simplifying pharmacovigilance to improve efficiency and global data management UCB modernizing system validation to support GxP readiness and continuous compliance "The ideas shared and connections made at Veeva Summit will extend far beyond the event to move the industry to an agentic future," said Rik van Mol, senior vice president, Veeva Development Cloud. "Vault AI and Veeva Falcon are a significant step in AI-enabling life sciences for greater speed and efficiency."
Learn more about Veeva Falcon agentic labor, Vault AI, and other core Vault innovations through session replays on Veeva Connect.
About Veeva Systems
Veeva delivers the industry cloud for life sciences with software, AI, data, and consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com/eu.
Veeva Forward-Looking Statements
This release contains forward-looking statements regarding Veeva's products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10-K for the fiscal year ended January 31, 2026, which you can find here (a summary of risks which may impact our business can be found on pages 13 and 14), and in our subsequent SEC filings, which you can access at sec.gov.
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Key Takeaways Veeva Systems topped Q1 estimates with revenue up 16.3% and adjusted EPS up 13.7%.VEEV raised fiscal 2027 revenue and adjusted EPS guidance above the consensus estimate.Veeva Systems expanded AI tools, added 27 Vault CRM customers and surpassed 150 live users. Veeva Systems, Inc. (VEEV - Free Report) reported adjusted earnings per share (EPS) of $2.24 for the first quarter of fiscal 2027, which increased 13.7% from the year-ago figure of $1.74. Adjusted EPS beat the Zacks Consensus Estimate by 5.2%.
GAAP EPS in the fiscal first quarter was $1.57, up 14.6% from the year-ago period’s $1.37.
VEEV’s Q1 Revenue DetailsIn the quarter under review, the company’s revenues totaled $882.9 million, beating the Zacks Consensus Estimate by 2.9%. On a year-over-year basis, the top line improved 16.3%.
However, shares of the company lost 5.2% in yesterday’s after-market trading. The stock lost 19.8% in the year-to-date period compared with the industry’s decline of 19.1%. However, the S&P 500 Index has increased 10.2% in the same time frame.
The fiscal first-quarter top line was driven by Veeva Systems’ robust segmental performance.
Image Source: Zacks Investment Research
Segmental Analysis of VEEVVeeva Systems derives revenues from two operating segments: Subscription services and Professional services and other.
In the fiscal first quarter, Subscription services revenues improved 15% from the year-ago quarter to $730.2 million. Per management, this uptick was driven by both its established and newer solutions.
Professional services and other revenues increased 22.9% year over year to $152.8 million.
Q1 Margin Performance by VEEVIn the quarter under review, Veeva Systems’ gross profit improved 13.1% year over year to $662 million. However, the gross margin contracted 220 basis points (bps) to 74.9%.
Sales and marketing expenses increased 12.7% year over year to $111.1 million. Research and development (R&D) expenses rose 13.2% year over year to $208.3 million, while general and administrative expenses increased 0.9% year over year to $69.5 million. Total operating expenses of $388.9 million increased 10.6% year over year.
Operating profit totaled $273.1 million, which increased 16.8% from the prior-year quarter. The operating margin in the fiscal first quarter expanded 20 bps to 30.9%.
VEEV’s Financial PositionThe company exited first-quarter fiscal 2027 with cash and cash equivalents and short-term investments of $7.31 billion compared with $6.56 billion at the fiscal fourth quarter of 2026-end.
Net cash provided by operating activities at the end of the quarter was $1.13 billion compared with $877.2 million a year ago.
Q2 & FY27 Guidance Provided by VEEVVeeva Systems has issued its financial outlook for the fiscal second quarter and fiscal 2027.
For the fiscal second quarter, the company expects total revenues between $902 million and $905 million. The Zacks Consensus Estimate is currently pegged at $886.8 million.
Subscription revenues are estimated to be approximately $754 million, and revenues for Professional services and other are expected to be in the range of $148-$151 million for the fiscal second quarter.
For the fiscal second quarter, adjusted EPS is anticipated to be between $2.21 and $2.22. The Zacks Consensus Estimate is pegged at $2.19.
Veeva Systems now expects revenues for fiscal 2027 between $3,635 million and $3,645 million. The Zacks Consensus Estimate is currently pegged at $3.59 billion.
For fiscal 2027, Subscription revenues are now expected to be approximately $3,060 million. This consists of Commercial Solutions’ subscription revenues of around $1,395 million and R&D Solutions’ subscription revenues of approximately $1,665 million.
Professional services and other revenues for fiscal 2027 are now expected to be between $575 million and $580 million.
Adjusted EPS for fiscal 2027 is now expected to be approximately $9.05. The Zacks Consensus Estimate is pegged at $8.86.
Our Take on Veeva Systems’ Q1 ResultsVeeva Systems exited the fiscal first quarter of 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The uptick in both top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well.
Veeva Systems continues to strengthen its position in life sciences software through rapid innovation in artificial intelligence and expanding customer adoption. During the first quarter, the company significantly advanced its industry-specific AI strategy. Ostro, acquired in March, is now delivering compliant conversational AI for more than 50 brands, while Vault AI remains on track for deployment across all Vault applications in August.
Veeva Systems also introduced Falcon, its new platform designed to provide agentic labor across clinical, regulatory and safety functions, with an early adopter release expected in November. Management believes its deep integration within life sciences workflows and proprietary data assets uniquely positions the company to deliver compliant, high-value AI solutions that enhance productivity and decision-making.
The company is also leading the transition toward Agentic Commercial. At its Commercial Summit, Veeva Systems outlined a vision for leveraging AI to help biopharma companies improve patient reach and commercial execution. New capabilities, including Agentic Call Report within Vault CRM and Ostro’s conversational AI solutions, are enabling customers to generate and act on commercial evidence more effectively. The adoption of Vault CRM remains strong, with 27 new customer additions during the quarter and more than 150 customers now live on the platform, reinforcing Veeva Systems’ growing leadership in next-generation commercial software.
Momentum across Veeva Development Cloud remains robust. The company secured multiple enterprise biopharma wins across clinical, regulatory and safety applications while generating strong customer interest in Vault AI and Falcon at its recent European R&D and Quality Summit. These solutions are expected to improve efficiency and accelerate drug development processes, further strengthening Veeva Systems’ competitive position within the life sciences industry.
VEEV’s Zacks Rank & Stocks to ConsiderVEEV carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .
Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Shares of Veeva Systems Inc. (NYSE:VEEV) rose in early trading on Thursday after the cloud software company reported upbeat first-quarter results.
Here are some key analyst takeaways:
BTIG analyst David Larsen reiterated a Buy rating and price target of $340. Needham analyst Ryan MacDonald maintained a Buy rating and price target of $270. Check out other analyst stock ratings.
BTIG: Veeva's revenue grew 16% year-on-year to $882.9 million and adjusted operating income by 13% to $395.4 million, topping consensus of $858 million and $382 million, respectively, Larson said in a note. Following the strong quarterly results, management raised fiscal 2027 guidance for all key metrics, including revenue, adjusted operating income, adjusted earnings, and normalized billings, he added.
Larsenis impressed by VEEV’s growth. That’s especially given that “some other pharma services companies report that there are still lingering headwinds in the broader industry," he added.
He further noted that Veeva Systems is "at the forefront of AI innovation," with the following initiatives:
Veeva Falcon — An agentic platform and standard agents to provide agentic labor for clinical, regulatory, and safety Veeva Falcon — Scheduled to launch in November and could potentially replace a lot of manual work for the pharma industry Recent acquisition of Ostro — Offers conversational AI to provide patients and doctors with compliant answers over a website chat Needham: Veeva Systems reported a strong beat and raised its full-year outlook, with AI being a key topic of discussion on the earnings call, MacDonald said. The company added 27 new Vault CRM customers during the quarter, taking the total live customers to more than 150, he added.
Migrations should accelerate through 2027 and 2028. All customers should migrate by the end of 2029. Veeva represents a material long-term revenue opportunity for the company, he further stated.
Price Action: Shares of Veeva Systems had risen by 0.21% to $179.06 at the time of publication on Thursday.
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Key Takeaways Veeva Systems raised its FY27 revenue and EPS outlook after both metrics beat estimates in Q1.VEEV added 27 Vault CRM customers; win rate topped 80% this year, with more than 150 customers live.VEEV says that Falcon targets high-volume clinical and safety workflows; Ostro adds about $10M this year. Veeva Systems Inc. (VEEV - Free Report) used its first-quarter fiscal 2027 earnings call to frame a broader shift in strategy, arguing that its next growth phase will come from combining industry-specific software with AI agents rather than simply adding AI features to the existing products.
That message mattered as management also raised its full-year guidance after quarterly earnings and revenues both topped the Zacks Consensus Estimate, giving investors a stronger read on execution and on where Veeva Systems sees its biggest openings next.
VEEV Expands the Story Beyond SaaSChief executive officer Peter Gassner made the central point of the call clear: Veeva Systems is moving from an industry-specific application company to an industry-specific application and AI agent company. Gassner described that as a major shift in how the company can serve life sciences customers.
Gassner said that the company is organizing its AI strategy around models, agents and applications, with Veeva Systems providing the application and agent layers for regulated life sciences work. In his framing, AI inside Vault can improve how people use software, while Falcon is designed to automate portions of work that have historically required human labor.
That emphasis gave the quarter a different tone from a standard software earnings call. The reported numbers were strong, with non-GAAP earnings of $2.24 per share beating the Zacks Consensus Estimate of $2.13. The company reported revenues of $882.95 million, which surpassed the consensus mark of $857.33 million. Also, management kept steering attention toward product architecture and long-term positioning.
Veeva Systems Lifts Full-Year TargetsChief financial officer Brian Van Wagener said that the fiscal first-quarter results exceeded guidance across all metrics, reflecting broad-based growth and profitability. Total revenues rose 16% year over year, while non-GAAP operating income climbed to $395.4 million from $349.9 million.
Management raised the fiscal 2027 revenue guidance to $3.635-$3.645 billion from its prior expectations, and projected $1.61 billion in non-GAAP operating income, with non-GAAP earnings per share of $9.05. For the fiscal second quarter, Veeva Systems expects revenues of $902 million to $905 million, and non-GAAP earnings per share of $2.21 to $2.22.
Van Wagener told Truist Securities that the macro environment looked essentially unchanged from a few months earlier. Wagener said the healthier outlook reflected continued solid demand across commercial, development and quality markets rather than any sharp improvement in external conditions.
VEEV Builds on CRM Migration WinsCommercial execution remained a key support for the story. Veeva Systems said that it added 27 Vault CRM customers in the quarter and now has more than 150 customers live on the platform.
In the Q&A, executive vice president of Strategy Paul Shawah said that recent wins with Teva and Merck KGaA were notable, though not part of the company’s fixed top-20 tracking list. Shawah said that Veeva Systems has won 10 of those large-account decisions so far compared with six for Salesforce, with four decisions left and expectations to win the majority of the remaining group.
That exchange stood out because analysts pressed management on whether prior expectations for top-20 outcomes were still intact. Shawah did not overreach, but he maintained a confident tone and backed it with an overall Vault CRM win rate above 80% this year and more than 40 migrations completed.
Veeva Systems Adds Ostro to AI MixAnother important strategic theme was the March acquisition of Ostro. Management positioned it as a compliant brand engagement platform that allows healthcare professionals and patients to ask questions and receive answers through biopharma digital properties.
Shawah told Needham that Ostro fits with Veeva Systems’ push into agentic commercial workflows and with what the company calls Commercial Evidence, or data gathered from real questions and interactions that can help biopharma clients identify barriers to getting medicines to patients.
Van Wagener said that Ostro should contribute about $10 million over the final three quarters of fiscal 2027, accounting for roughly two-thirds of the $15-million increase in the commercial subscription guidance. Wagener added that AI revenues outside Ostro should remain fairly immaterial this year.
VEEV Shows Where Falcon StartsFalcon drew the most detailed questioning from analysts and the clearest strategic responses from management. Gassner described it as Veeva Systems' first real move into digital labor, not as a toolkit for customers to build custom agents.
Gassner said that the earliest target areas are high-volume, standardized workflows such as clinical trial document intake, trial master file classification, safety case triage and regulatory correspondence. Those jobs are attractive because they are repetitive, rules-heavy and already often outsourced.
Management also offered early clues on monetization. Gassner said that Falcon will most likely be priced by document or by case, depending on the workflow, while stressing that the offering should be entirely additive because Veeva Systems does not currently sell that labor.
Veeva Systems Leaves a More Ambitious ToneThe call ended with a notably expansive posture. Gassner tied Falcon, Vault AI, Ostro and Veeva Basics into a broader effort to standardize more of life sciences work and then automate selected portions of it.
Van Wagener reinforced that tone by saying the company is still investing across Falcon, Vault AI, Ostro and its data network while preserving efficiency. The message coming out of the quarter was less about near-term margin maximization and more about building the next layer of the platform.
VEEV’s Zacks SignalsVeeva Systems currently carries a Zacks Rank #3 (Hold), with a Value Score of C, a Growth Score of B, a Momentum Score of F and a VGM Score of C. In Zacks terms, the rank points to a more balanced near-term outlook, while the style scores suggest the stock looks stronger on growth characteristics than on value or momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score framework gives the best read-through when paired with higher Zacks ranks, especially #1 and 2 (Buy) stocks with A or B style grades. The scorecard can still help frame trading style fit, but the Zacks Rank can change as earnings estimate revisions move after the quarter.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Veeva Systems (VEEV - Free Report) .
Veeva currently has an average brokerage recommendation (ABR) of 1.85, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.85 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 15 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 55.6% and 11.1% of all recommendations.
Brokerage Recommendation Trends for VEEV
Check price target & stock forecast for Veeva here>>>
While the ABR calls for buying Veeva, 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 RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is VEEV Worth Investing In?In terms of earnings estimate revisions for Veeva, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $8.87.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar 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 #2 (Buy) for Veeva. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Veeva may serve as a useful guide for investors.
Veeva Systems (VEEV - Free Report) closed the last trading session at $172.61, gaining 3.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $244.88 indicates a 41.9% upside potential.
The average comprises 24 short-term price targets ranging from a low of $165.00 to a high of $340.00, with a standard deviation of $47.36. While the lowest estimate indicates a decline of 4.4% from the current price level, the most optimistic estimate points to a 97% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for VEEV, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in VEEVAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.9%.
Moreover, VEEV 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 four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much VEEV could gain, the direction of price movement it implies does appear to be a good guide.
End-to-end safety foundation to speed case processing and enable automation
, /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today announced that UCB is unifying its global safety operations with Veeva Safety Suite to maximize operational efficiency and scale. UCB is standardizing safety on a single platform to accelerate case processing, strengthen oversight, and streamline submissions to health authorities.
"Moving our teams onto Veeva Safety Suite is a core step in UCB's safety transformation, helping streamline global and local workflows with a single source of truth for safety data," said Jonas Maselis, head of digital technology, patient safety, UCB. "As we use automation to drive low-touch case processing, our strategic partnership with Veeva positions us well for what's next."
UCB will use Veeva Safety Suite's unified platform for end-to-end safety management, with Veeva Safety to streamline the intake, processing, and submission of adverse events and Veeva SafetyDocs to manage all safety-related content and processes. Veeva Safety Workbench will enable advanced data analysis for fast, scalable reporting, and Veeva Safety Signal will automate signal detection for better visibility and alignment across the organization. In addition, the Veeva Safety-RIM Connection will share product information automatically across regulatory and safety operations for clean and trusted data.
"UCB is building a foundation powered by Veeva Safety Suite to simplify and standardize their global pharmacovigilance function," said John Lawrie, vice president, Veeva Safety. "With a unified and connected approach, UCB is enhancing global compliance and driving advanced automation to deliver safe and effective medicines to patients."
About Veeva Systems
Veeva delivers the industry cloud for life sciences with software, AI, data, and consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com/eu.
Veeva Forward-Looking Statements
This release contains forward-looking statements regarding Veeva's products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10-Q for the fiscal year ended April 30, 2026, which you can find here (a summary of risks which may impact our business can be found on pages 33 and 34), and in our subsequent SEC filings, which you can access at sec.gov.
End-to-end safety foundation to speed case processing and enable automation
, /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today announced that UCB is unifying its global safety operations with Veeva Safety Suite to maximize operational efficiency and scale. UCB is standardizing safety on a single platform to accelerate case processing, strengthen oversight, and streamline submissions to health authorities.
"Moving our teams onto Veeva Safety Suite is a core step in UCB's safety transformation, helping streamline global and local workflows with a single source of truth for safety data," said Jonas Maselis, head of digital technology, patient safety, UCB. "As we use automation to drive low-touch case processing, our strategic partnership with Veeva positions us well for what's next."
UCB will use Veeva Safety Suite's unified platform for end-to-end safety management, with Veeva Safety to streamline the intake, processing, and submission of adverse events and Veeva SafetyDocs to manage all safety-related content and processes. Veeva Safety Workbench will enable advanced data analysis for fast, scalable reporting, and Veeva Safety Signal will automate signal detection for better visibility and alignment across the organization. In addition, the Veeva Safety-RIM Connection will share product information automatically across regulatory and safety operations for clean and trusted data.
"UCB is building a foundation powered by Veeva Safety Suite to simplify and standardize their global pharmacovigilance function," said John Lawrie, vice president, Veeva Safety. "With a unified and connected approach, UCB is enhancing global compliance and driving advanced automation to deliver safe and effective medicines to patients."
About Veeva Systems
Veeva delivers the industry cloud for life sciences with software, AI, data, and consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.
Veeva Forward-Looking Statements
This release contains forward-looking statements regarding Veeva's products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10-Q for the fiscal year ended April 30, 2026, which you can find here (a summary of risks which may impact our business can be found on pages 33 and 34), and in our subsequent SEC filings, which you can access at sec.gov.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Veeva Systems (VEEV - Free Report) Veeva Systems Inc. is headquartered in Pleasanton, CA and provides industry cloud solutions for the global life sciences market. Its offerings span cloud software, data, artificial intelligence capabilities and business consulting, supporting customers from research and development through commercialization. Veeva operates as a single reportable segment and groups revenues into Commercial Solutions and R&D and Quality Solutions.
VEEV is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. VEEV has a Momentum Style Score of B, and shares are up 5% over the past four weeks.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $8.87 per share. VEEV also boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, VEEV should be on investors' short list.
Key Takeaways Veeva's Falcon targets high-volume clinical and safety workflows with agent-based automation.AI revenues are expected to be immaterial in fiscal 2027 as the focus stays on product quality.Vault AI expands embedded automation within apps, supporting adoption and retention. Veeva Systems Inc. (VEEV - Free Report) continues to benefit from demand for life sciences cloud platforms, with steady progress in Vault CRM migrations and ongoing expansion across R&D and Quality solutions. Management’s fiscal 2027 outlook calls for mid-teens revenue growth and a stable adjusted operating margin, assuming an unchanged macro environment.
The company’s AI roadmap adds an important long-term lever. However, the near-term math remains anchored to the subscription base, not a sudden AI-driven revenues step-up.
VEEV’s Falcon Targets High-Volume Workflow AutomationFalcon is positioned as an agent layer built to take on standardized, high-volume work, with early use cases centered on clinical document intake and safety case processing. That focus matters because those tasks sit at the heart of clinical, regulatory and safety workflows, where repetitive intake and routing can consume significant staff time.
Strategically, Falcon aims to create an automation layer that can scale across multiple functions as Veeva’s footprint broadens beyond its historical commercial roots into clinical development, safety and regulatory operations.
Veeva’s Pricing Models and Adoption SignalsMonetization is still developing. Management has discussed usage-aligned approaches, such as charging per document or per case, but pricing has not been finalized. In practical terms, that creates a wide range of possible outcomes for revenue timing and magnitude, even if the product value proposition is clear.
Falcon remains early, with the company still signing initial agreements and using customer data for quality control and training agents ahead of broader rollout. For investors, the adoption curve is the key variable to watch because early deployments in narrow workflows do not automatically translate into scaled, repeatable revenues.
Image Source: Zacks Investment Research
VEEV’s Vault AI Adds Embedded Use CasesAlongside Falcon, Veeva is scaling Vault AI inside its applications. The emphasis here is on embedded capabilities that automate labor-intensive processes within existing workflows, rather than a standalone agent layer that orchestrates tasks across systems.
Falcon is designed to tackle “agentic” labor in high-volume, standardized work, while Vault AI strengthens the day-to-day utility of the underlying apps customers already use. Over time, both can raise platform stickiness by reinforcing the value of an integrated ecosystem that spans clinical, safety, regulatory, quality and commercial functions.
Veeva’s Near-Term AI Revenues Look LimitedExpectations should stay grounded. Management expects AI revenue to be immaterial in fiscal 2027 outside of Ostro, with the current priority on product quality and customer success. That sequencing keeps near-term financial results tied primarily to execution in the core subscription portfolio.
The investor takeaway is that AI is best viewed as optionality rather than a near-term driver. The focus should be on whether Falcon and Vault AI meaningfully expand workflow value and adoption over time, instead of the amount of revenue generation in fiscal 2027.
Veeva’s Competitive and Execution Risks for AIExecution risk is real on multiple fronts. CRM decisions remain competitive, and Veeva also faces platform dependencies, including Salesforce for legacy Veeva CRM and Amazon Web Services for Vault-based applications. The prior agreement with Salesforce expired on Sept. 1, 2025, and includes seat-based limits for existing customers during a wind-down period through Sept. 1, 2030, adding complexity to the transition.
For Falcon specifically, uncertainty around the adoption pace and the timing of revenue contribution remains elevated because monetization is not finalized and the rollout is still in early agreements and training. Meanwhile, cost pressures have already weighed on profitability, with gross margin contracting 220 basis points year over year to 74.9% in the fiscal first quarter as infrastructure and services costs rose.
VEEV currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VEEV’s Milestones to Track Through FY27Key milestones are practical and measurable. First is a finalized Falcon pricing approach and whether usage-aligned models (per document or per case) translate into repeatable customer agreements. Next is the number and depth of Falcon deployments beyond the initial clinical document and safety intake workflows, along with evidence of tangible workflow impact inside Safety and clinical operations.
On the embedded side, investors should watch Vault AI's expansion within core applications and whether it improves adoption and retention across the broader platform. Finally, track whether newer product lines such as RTSM, Safety and LIMS continue scaling while management sustains its fiscal 2027 expectation for a stable adjusted operating margin.
For context within the broader Medical Info Systems group, Enovis Corporation (ENOV - Free Report) carries a Zacks Rank #2, while Evolent Health, Inc (EVH - Free Report) has a Zacks Rank #3 (Hold). That mix underscores how stock performance in the space can diverge based on execution, making Veeva’s migration progress and AI delivery the focal points through fiscal 2027.
VEEV’s Sales & EPS PictureIn fiscal 2027, VEEV is expected to experience growth of 13.9% in revenues. On the profitability front, earnings per share are expected to improve 9.5% year over year.
Image Source: Zacks Investment Research
VEEV’s Valuation PictureVEEV currently trades at a price-to-book ratio of 3.79X, well below its industry’s current level of 6.24X.
Eine durchgängige Sicherheitsgrundlage zur Beschleunigung der Fallbearbeitung und zur Ermöglichung der Automatisierung
, /PRNewswire/ -- Veeva Systems (NYSE: VEEV) gab heute bekannt, dass UCB seine globalen Sicherheitsabläufe mit Veeva Safety Suite vereinheitlicht, um die betriebliche Effizienz und Skalierbarkeit zu maximieren. UCB standardisiert die Sicherheitsmaßnahmen auf einer einzigen Plattform, um die Fallbearbeitung zu beschleunigen, die Aufsicht zu verstärken und die Einreichungen bei den Gesundheitsbehörden zu optimieren.
„Die Umstellung unserer Teams auf die Veeva Safety Suite ist ein zentraler Schritt im Rahmen der Sicherheitstransformation bei UCB und trägt dazu bei, globale und lokale Arbeitsabläufe durch eine einzige zuverlässige Quelle für Sicherheitsdaten zu optimieren", sagte Jonas Maselis, Head of Digital Technology, Patient Safety bei UCB. „Da wir Automatisierung einsetzen, um eine kontaktarme Fallbearbeitung zu fördern, sind wir dank unserer strategischen Partnerschaft mit Veeva für die Zukunft gut aufgestellt."
UCB wird die einheitliche Plattform der Veeva Safety Suite für ein durchgängiges Sicherheitsmanagement nutzen, wobei Veeva Safety zur Optimierung der Erfassung, Bearbeitung und Übermittlung von unerwünschten Ereignissen und Veeva SafetyDocs zur Verwaltung aller sicherheitsrelevanten Inhalte und Prozesse eingesetzt wird. Veeva Safety Workbench ermöglicht eine erweiterte Datenanalyse für eine schnelle und skalierbare Berichterstellung, und Veeva Safety Signal automatisiert die Signalerkennung, um eine bessere Transparenz und Abstimmung innerhalb des gesamten Unternehmens zu gewährleisten. Darüber hinaus sorgt die Veeva Safety-RIM Connectionfür den automatischen Austausch von Produktinformationen zwischen den Bereichen Zulassung und Sicherheitsmanagement, wodurch saubere und zuverlässige Daten gewährleistet werden.
„UCB baut eine auf der Veeva Safety Suite basierende Plattform auf, um seine weltweiten Pharmakovigilanz-Aktivitäten zu vereinfachen und zu standardisieren", sagte John Lawrie, Vice President bei Veeva Safety. „Mit einem einheitlichen und vernetzten Ansatz verbessert UCB die weltweite Compliance und treibt die fortschrittliche Automatisierung voran, um Patienten sichere und wirksame Medikamente zur Verfügung zu stellen."
Informationen zu Veeva Systems
Veeva liefert die Branchen-Cloud für die Biowissenschaften mit Software, KI, Daten und Beratung. Veeva hat sich der Innovation, der Produktqualität sowie dem Kundenerfolg verschrieben und betreut mehr als 1500 Kunden, von den weltweit größten Pharmaunternehmen bis hin zu aufstrebenden Biotech-Unternehmen. Als Public Benefit Corporation ist Veeva bestrebt, die Interessen aller Stakeholder in Einklang zu bringen, darunter Kunden, Beschäftigte, Aktionäre sowie die Branchen, denen das Unternehmen dient. Weitere Informationen finden Sie auf veeva.com/eu.
Zukunftsgerichtete Aussagen von Veeva
Diese Pressemitteilung enthält zukunftsgerichtete Aussagen zu den Produkten und Dienstleistungen von Veeva sowie zu den erwarteten Ergebnissen oder Vorteilen aus der Nutzung unserer Produkte und Dienstleistungen. Diese Aussagen beruhen auf unseren derzeitigen Erwartungen. Die tatsächlichen Ergebnisse können erheblich von den Angaben in dieser Pressemitteilung abweichen, und wir sind nicht verpflichtet, solche Aussagen zu aktualisieren. Es bestehen zahlreiche Risiken, die sich negativ auf unsere Ergebnisse auswirken könnten, darunter die Risiken und Ungewissheiten, die in unserem Formular 10-Q für das am 30. April 2026 endende Geschäftsjahr offengelegt sind – dieses finden Sie hier (eine Zusammenfassung der Risiken, die sich auf unser Geschäft auswirken könnten, finden Sie auf den Seiten 33 und 34) – sowie in unseren nachfolgenden SEC-Unterlagen, die Sie unter sec.gov einsehen können.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Veeva Systems (VEEV - Free Report) Veeva Systems Inc. is headquartered in Pleasanton, CA and provides industry cloud solutions for the global life sciences market. Its offerings span cloud software, data, artificial intelligence capabilities and business consulting, supporting customers from research and development through commercialization. Veeva operates as a single reportable segment and groups revenues into Commercial Solutions and R&D and Quality Solutions.
VEEV is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. VEEV has a Growth Style Score of B, forecasting year-over-year earnings growth of 10.6% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.10 to $8.96 per share. VEEV also boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, VEEV should be on investors' short list.
Key Takeaways VEEV topped Q1 fiscal 2027 earnings and revenue estimates, led by Subscription services growth.VEEV's Vault CRM has 150 live customers, 40 migrations and an 80% overall win rate.VEEV is expanding AI offerings, with Ostro serving 50 brands and Vault AI due in August. Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid first-quarter fiscal 2027 performance and CRM migrations, is expected to contribute further. However, market saturation remains a cause for concern.
This Zacks Rank #2 (Buy) company’s shares have lost 24.9% in the year-to-date period compared with the 20.6% decline of the industry. The S&P 500 Composite has increased 8.3% during the said time frame.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $27.32 billion. The company anticipates 35% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 5.5%.
Image Source: Zacks Investment Research
Reasons Favoring VEEV’s GrowthEnterprise CRM Migrations Expanding Account Footprint: Vault CRM adoption continues to build as large customers move off legacy CRM deployments and standardize commercial workflows. Management highlighted recent global selections from Teva and Merck KGaA and noted that Veeva has secured 10 wins versus six for Salesforce, within its defined top 20 cohort, with four decisions still pending.
The company also cited an overall Vault CRM win rate above 80% and more than 150 customers live on Vault CRM, supported by over 40 completed migrations. This installed base creates a multi-year services and subscription runway and should support the attachment of adjacent commercial applications.
Diversified Platform Driving Durable Growth:Veeva Systems’ long-term growth story is increasingly tied to its position at the center of life sciences digital transformation. The company operates across a broad set of markets spanning clinical development, quality management, regulatory operations, safety, commercial engagement and data analytics. Veeva Systems’ Development Cloud portfolio is particularly well-positioned as pharmaceutical companies seek integrated platforms that connect clinical data, trial operations, quality processes and regulatory functions within a unified ecosystem.
Growth is being fueled by newer product areas that remain in the early stages of penetration, including clinical data management, randomization and trial supply management, drug safety and laboratory information management systems. Management believes these businesses have a significant runway as customers increasingly favor end-to-end platforms over fragmented point solutions.
Strong Q1 Results: Veeva Systems exited the fiscal first quarter of 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The uptick in both top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well.
Veeva Systems continues to strengthen its position in life sciences software through rapid innovation in artificial intelligence and expanding customer adoption. During the first quarter, the company significantly advanced its industry-specific AI strategy. Ostro, acquired in March, is now delivering compliant conversational AI for more than 50 brands, while Vault AI remains on track for deployment across all Vault applications in August.
A Factor That May Offset VEEV’s GainsMarket Saturation: The life sciences industry, Veeva Systems' primary market for its CRM solutions, is facing increasing saturation as digital transformation and CRM adoption have become widespread across pharmaceutical and biotech companies. Many large enterprises have already implemented Veeva Systems' CRM software or similar solutions, leaving fewer untapped opportunities for new customer acquisition.
Additionally, as smaller biotech firms and generics manufacturers enter the market, they may seek more cost-effective or niche CRM alternatives rather than Veeva Systems' premium offerings. This saturation, combined with heightened competition from both traditional CRM providers and emerging AI-powered platforms, could limit Veeva Systems' ability to maintain its historical CRM sales growth rates.
Estimate TrendVeeva Systems is witnessing a stable estimate revision trend for fiscal 2027. In the past 30 days, the Zacks Consensus Estimate for fiscal 2027 earnings per share (EPS) has remained stable at $8.87.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $904.1 million, indicating a 14.6% improvement from the year-ago quarter’s reported number. The EPS estimate for the second quarter of fiscal 2027 is pinned at $2.19, implying a 10.1% improvement year over year.
Other Key PicksSome other top-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .
Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Veeva Systems (VEEV - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this provider of cloud-based software services for the life sciences industry have returned +5.2% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Medical Info Systems industry, to which Veeva belongs, has gained 0.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Veeva is expected to post earnings of $2.22 per share for the current quarter, representing a year-over-year change of +11.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.
The consensus earnings estimate of $9.05 for the current fiscal year indicates a year-over-year change of +11.7%. This estimate has changed +3.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.9 indicates a change of +9.4% from what Veeva is expected to report a year ago. Over the past month, the estimate has changed +0.9%.
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, Veeva is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Veeva, the consensus sales estimate of $904.07 million for the current quarter points to a year-over-year change of +14.6%. The $3.64 billion and $4.07 billion estimates for the current and next fiscal years indicate changes of +14% and +11.7%, respectively.
Last Reported Results and Surprise HistoryVeeva reported revenues of $882.95 million in the last reported quarter, representing a year-over-year change of +16.3%. EPS of $2.24 for the same period compares with $1.97 a year ago.
Compared to the Zacks Consensus Estimate of $857.33 million, the reported revenues represent a surprise of +2.99%. The EPS surprise was +5.16%.
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.
Veeva 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 Veeva. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Veeva's Safety Suite will unify UCB's global pharmacovigilance operations on one platform.UCB aims to speed case processing, strengthen oversight and streamline regulatory submissions.VEEV's deal highlights demand for integrated safety and regulatory cloud solutions in biopharma. Veeva Systems (VEEV - Free Report) recently announced that UCB has selected Veeva Safety Suite to unify its global pharmacovigilance operations. Through the deployment, UCB will standardize safety processes on a single platform, enabling faster case processing, enhanced oversight and streamlined regulatory submissions while supporting greater automation across safety workflows.
The latest win underscores the growing adoption of Veeva’s safety and regulatory solutions among large biopharmaceutical companies. For investors, the agreement reinforces Veeva’s position as a leading life sciences cloud software provider and highlights the company’s ability to deepen customer relationships through its connected platform strategy, supporting long-term revenue growth opportunities.
Likely Trend of VEEV Stock Following the NewsShares of VEEV have traded flat since the announcement on Tuesday. In the year-to-date period, shares of the company have lost 27.7% compared with the industry’s 20% decline. The S&P 500 increased 6.3% in the same time frame.
The UCB deal is expected to strengthen Veeva’s long-term growth prospects by expanding the adoption of its Safety Suite across a global biopharmaceutical organization. Beyond adding to Veeva’s recurring subscription revenue base, the deployment validates the company’s strategy of offering an integrated platform spanning safety, regulatory and quality functions. As more life sciences companies seek to automate pharmacovigilance processes and improve compliance, successful enterprise-scale implementations like UCB’s can support additional customer wins, higher platform penetration and durable revenue growth over time.
VEEV currently has a market capitalization of $26.75 billion.
Image Source: Zacks Investment Research
More on the NewsUCB is adopting Veeva Safety Suite as a unified platform for end-to-end pharmacovigilance operations. The suite includes Veeva Safety for the intake, processing and submission of adverse event cases, Veeva SafetyDocs for managing safety-related documents and workflows, Veeva Safety Workbench for advanced analytics and scalable reporting and Veeva Safety Signal for automated signal detection. UCB will also leverage the Veeva Safety-RIM Connection, which automatically shares product information across regulatory and safety functions, helping maintain consistent, trusted data while improving operational efficiency and compliance.
The implementation forms a key part of UCB’s broader safety transformation initiative. By consolidating global and local safety workflows onto a single platform, the company aims to accelerate case processing, strengthen oversight and support low-touch, automated operations.
Management noted that the strategic partnership with Veeva positions UCB to further expand automation capabilities across its safety organization. For Veeva, the deployment represents another validation of its connected applications strategy and highlights growing demand among large biopharma companies for integrated cloud-based safety and regulatory solutions.
Favorable Industry Prospect for VEEVPer a report by Fortune Business Insights, the global life science software market size was valued at $17.69 billion in 2025 and is projected to grow to $43.19 billion by 2034, exhibiting a CAGR of 10.50%.
The global life sciences software market is growing due to increasing demand for cloud-based platforms that help pharmaceutical and biotechnology companies streamline regulatory compliance, drug development and safety monitoring. Rising adoption of AI and automation is further accelerating the shift from legacy systems to integrated software solutions.
A Recent Development by VEEVRecently, Veeva exited the fiscal first quarter of 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The uptick in both top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well.
Veeva continues to strengthen its position in life sciences software through rapid innovation in artificial intelligence and expanding customer adoption. During the first quarter, the company significantly advanced its industry-specific AI strategy. Ostro, acquired in March, is now delivering compliant conversational AI for more than 50 brands, while Vault AI remains on track for deployment across all Vault applications in August.
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .
Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
While healthcare stocks have underperformed broader equities in recent years, there are still highly attractive companies in the sector worth consideration. However, other fairly popular healthcare players aren't worth investing in. Consider the following three healthcare stocks: Zoetis (ZTS 2.25%), BioNTech (BNTX +1.12%), and Intellia Therapeutics (NTLA 1.94%). The first two have lagged the market over the past year, while the last one has performed well. Even so, Zoetis and BioNTech are far more attractive stocks than Intellia Therapeutics for investors focused on the long game. Let me explain.
Image source: Getty Images.
A well-established animal health leader Let's start with Zoetis, a company that focuses on animal health. Over the past two years, it has faced some challenges, including increased competition for one of its core growth drivers -- Apoquel, a medicine for allergic itch in dogs -- as well as scrutiny over potential side effects for Solensia and Librela, which treat osteoarthritis (OA) pain in cats and dogs, respectively.
However, Zoetis should eventually bounce back. Even with stiffer competition for Apoquel, the company has a strong presence in this niche and estimates that millions of dogs remain untreated or undertreated.
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Meanwhile, it has earned approval for Portela and Lenivia, newer OA pain medicines for cats and dogs. These two also have the advantage of being long-acting options that can be administered every three months, compared to monthly for their predecessors.
These two should grab a decent share of the market. Meanwhile, in the long run, Zoetis should continue launching new products, as it has for a while, while capitalizing on increased spending on pets. Lastly, Zoetis is a fantastic dividend stock, having increased its payouts by 458% over the past decade, which makes it a top stock for income seekers.
An innovative biotech with a deep pipeline BioNTech hasn't performed well due to significant issues in the coronavirus vaccine market. Recent regulatory changes in the U.S. have made it harder for many people to get vaccinated. Even before that, this area was somewhat unpredictable.
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However, BioNTech is working on developing newer products. The company has a fairly impressive pipeline with more than 25 phase 2 or phase 3 clinical trials in oncology alone. Some of its candidates look particularly promising. Consider the company's BNT327, an investigational cancer medicine it is developing with Bristol Myers Squibb. This candidate is a bispecific antibody, a newer class of drugs. BioNTech believes BNT327 has the potential to set new standards of care across multiple indications.
Only time will tell if the biotech is right, but this and many other candidates are why the stock could bounce back and perform well over the next five years as it makes significant clinical and regulatory progress.
A high-risk gene editing specialist Intellia Therapeutics has made progress with its leading pipeline candidates over the past year. They include lonvo-z, a potential gene-editing medicine for hereditary angioedema -- a genetic disorder that causes painful episodes of swelling -- and nex-z, an investigational treatment for transthyretin amyloidosis, a rare condition in which abnormal protein clumps form around some organs, causing cardiovascular (and other) problems. Nex-z and lonvo-z are Both are undergoing phase 3 studies.
Nex-z hit a roadblock last year when regulators placed its clinical trials on hold due to suspected adverse reactions following the death of a patient. But the U.S. Food and Drug Administration lifted the hold, allowing Intellia to move forward.
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So, it seems like everything is going well for the biotech. However, it faces significant uncertainty. First, there is still the possibility that one -- or both -- of its late-stage assets will fail in ongoing studies. If that happens, the stock will fall off a cliff. Even if it doesn't, Intellia Therapeutics will face an uphill battle. Gene-editing treatments are expensive and difficult to administer. Between getting third-party payers on board and properly treating patients, it could be years before Intellia Therapeutics generates steady revenue from its products -- if it ever does. It will take even more time for the company to turn profitable. That's why the stock is very risky and not worth it for long-term investors right now.
MAINZ, Germany, April 21, 2026 (GLOBE NEWSWIRE) -- BioNTech SE (Nasdaq: BNTX, “BioNTech” or “the Company”) will announce its financial results for the first quarter 2026 on Tuesday, May 5, 2026. Additionally, the Company will host a conference call and webcast that day at 8:00 a.m. ET (2:00 p.m. CET) for investors, financial analysts and the general public to discuss its financial results and provide a corporate update. To access the live conference call via telephone, please register via this link. Once registered, dial-in numbers and a PIN will be provided. It is recommended to register at least one day in advance. The slide presentation and audio of the webcast will be available via this link. Participants may also access the slides and the webcast of the conference call via the “Events & Presentations” page in the Investor Relations section of the Company's website at www.BioNTech.com. A replay of the webcast will be made available shortly after the call and archived on the Company's website for 30 days following the call.
BioNTech SE Sponsored ADR (BNTX - Free Report) shares ended the last trading session 6.1% higher at $111.6. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 19% gain over the past four weeks.
The growing investor optimism related to the company’s novel investigative therapies, which are being developed for treating cancer and other serious diseases, might have driven the recent share price rally.
This company is expected to post quarterly loss of $2.52 per share in its upcoming report, which represents a year-over-year change of -38.5%. Revenues are expected to be $214.62 million, up 11.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For BioNTech, the consensus EPS estimate for the quarter has been revised 27.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BNTX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
BioNTech is part of the Zacks Medical - Biomedical and Genetics industry. Genmab A/S Sponsored ADR (GMAB - Free Report) , another stock in the same industry, closed the last trading session 3% lower at $27.06. GMAB has returned 8.7% in the past month.
Genmab's consensus EPS estimate for the upcoming report has changed +2.2% over the past month to $0.15. Compared to the company's year-ago EPS, this represents a change of -51.6%. Genmab currently boasts a Zacks Rank of #3 (Hold).
Lockheed Martin (LMT 1.52%) posted Q1 earnings of $6.44 per share, missing estimates of $6.74, as heavy spending on production expansion and $1 billion in debt repayments weighed on results. Shares fell nearly 5% Thursday, though they’re up 6.6% year-to-date.
The cash burn explained: Free cash flow came in at negative $291 million, driven by production investments across 20+ facilities and $816 million in dividends—not deteriorating demand. Full year intact: Lockheed held its 2026 guidance: $29.35–$30.25 EPS and $6.5B–$6.8B in free cash flow, backed by a recent $4.7B Patriot interceptor contract. Metric (GAAP unless noted)Q1 2026 (12 weeks)Q1 2025 (13 weeks)Y/YEPS$6.44$7.28(11.5%)Revenue (billions)$18.0$18.00%Operating Margin, Aeronautics (Non-GAAP)8.9%10.2%(1.3 pp)Operating Margin, Missiles and Fire Control (Non-GAAP)13.7%13.8%(0.1 pp)Free Cash Flow (Non-GAAP, millions)($291)$955-130.5% Closing Bell 4:07 pm
Stocks closed lower Thursday as rising Middle East tensions pushed oil to its fourth straight gain. Brent crude climbed 3.1% to $105.07 a barrel on stalled U.S.-Iran diplomacy and threats in the Strait of Hormuz. The Nasdaq fell 0.9%; the S&P 500 and Dow each dropped 0.4%.
ServiceNow Takes the Biggest Hit: Shares of ServiceNow (NOW 0.71%) plunged 18% despite revenue growth — investors punished the company for trimming its projected operating margin. Microsoft (MSFT +0.11%) fell 4% in sympathy. IBM and Tesla Also Disappoint: IBM (IBM 1.13%) dropped 8.3% after holding revenue guidance flat. Tesla (TSLA +1.82%) shed 3.6% after announcing $25 billion in planned capital expenditures tied to AI and robotics. FDA Approves Regeneron’s Historic Hearing Cure 3:52 pm — REGN +2.64%
It’s a big day for Regeneron Pharmaceuticals (REGN +0.11%). The FDA approved Otarmeni, Regeneron’s gene therapy for children born deaf due to a rare genetic mutation, making it the first-ever gene therapy to restore hearing. In clinical trials, it improved hearing in 11 of 12 children. In an unusual move, Regeneron is offering the drug free in the U.S., a striking contrast to the million-dollar price tags common in gene therapy.
Free of charge, unprecedented: The condition affects just 20 to 50 U.S. newborns annually, but Regeneron aims to expand the drug's reach if further studies succeed. “We don’t feel like we have to figure out how to maximally price this so that we can try to make a windfall,” said George Yancopoulos, Regeneron’s co-founder and chief scientific officer. Same-day Fool rec: Regeneron is recommended in Motley Fool Health AI, the Fool's newest real-money portfolio, which was launched today. The buy report highlighted Regeneron’s genetic medicines pipeline and $5.9 billion R&D commitment; today’s approval is exactly the kind of pipeline payoff that thesis was built on.
Because apparently ruling the chip world wasn’t enough, Nvidia (NVDA +0.15%) is teaming up with nuclear startup Oklo (OKLO 0.64%) and the Los Alamos National Laboratory to use AI to advance nuclear research.
Not just vibes: The trio will develop AI models to validate nuclear fuel and study power generation for nuclear-powered AI factories—real, substantive work with serious infrastructure implications. "The company also shows significant strength in its technology, marked by substantial R&D investments, key project advancements, and strategic partnerships that position it competitively within the advanced nuclear sector," according to the Moneyball Hidden Gems primary database. The bull case for Oklo: HSBC (HSBC +2.15%) slapped a buy rating and $96 price target on Oklo stock, but investors should note Oklo has no meaningful revenue yet and needs regulatory approval before any of this becomes real. "Makes no sense for this stock to be gaining as it is. And yet it continues," member SoLongGoodbye wrote recently. Right now the stock remains essentially a bet on a future that hasn't arrived yet; a lot of optimism is already baked in.
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Meta Axes 8K Jobs, Kills 6K Openings 2:58 pm — META -2.50%
Mark Zuckerberg isn’t done swinging the axe. Meta (META 0.14%) is cutting 10% of its workforce — about 8,000 jobs — and canceling 6,000 open roles it had planned to fill. Layoffs begin May 20. It’s the latest in a string of cuts at Meta, which has been shedding metaverse-era headcount while pivoting hard toward AI. Microsoft (MSFT +0.11%) apparently got the memo too, announcing its first-ever voluntary buyout program Thursday for roughly 7% of its U.S. workforce.
Zuck’s AI Gap: Meta has openly trailed OpenAI, Alphabet (GOOG +0.44%), and Anthropic in generative AI — and Zuckerberg seems willing to spend (and cut) whatever it takes to close it. Big Tech’s New Math: Amazon (AMZN 1.24%) cut 16,000 jobs in January. The calculus is simple: fewer humans, more GPUs.
Texas Instruments (TXN +1.35%) beat on earnings and raised guidance, so the stock did what stocks do and jumped. Nothing shocking about that. The real story is whether they can actually pull off integrating Silicon Labs without tripping over themselves, and whether industrial demand holds up or rolls over next quarter. Management seems buttoned up and the cash generation is real.
Nice beat from a company that some people haven’t thought about since the 1980s…
Today's Lunchtime News 1:15 pm — SBUX +0.5%
Starbucks (SBUX +0.74%) is seeing early signs that last month's loyalty program overhaul is pulling in value-conscious customers, CNBC reports. Loyalty transactions accounted for 60% of the coffee chain's fiscal 2025 revenue, making the Rewards program central to CEO Brian Niccol's broader turnaround push.
Early traction: The new 60-star redemption option has become the program's most popular reward, with more than a quarter of all redemptions opting for the $2 discount. The first "free Mod Monday" more than doubled point redemptions versus earlier Mondays this year, and reusable cup usage for double-star bonuses jumped by double digits. Earnings on deck: Starbucks reports fiscal second-quarter results after the bell next Tuesday, with management expected to share more on loyalty trends and the broader turnaround. The chain's traffic struggles have been tied to losing active Rewards members, so any signs of a rebound there will be a key watch item. SBUX performance
Today +0.5%
1 Year +20.7%
5 Years -15.0%
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ServiceNow's AI Wins Can't Calm the Street 1:25 pm — NOW -18.6%
By Matt Frankel, CFP®
Team Hidden Gems
ServiceNow (NOW 0.71%) beat its own guidance on revenue, earnings, and subscription growth, yet a Middle East-driven deal slowdown and looming margin pressure from its security acquisitions overshadowed the quarter. Revenue climbed 22% year-over-year to $3.67 billion and non-GAAP earnings per share rose 19.8% to $0.97. Adoption of its AI workflow tool Now Assist accelerated sharply, as the number of customers spending over $1 million on the product grew 130% year-over-year.
Delayed on-premises deal closings in the Middle East trimmed roughly 75 basis points off subscription growth, which management attributed to the ongoing Iran conflict. It also warned that integration costs from the Armis and Veza security acquisitions will weigh on margins until fiscal 2027. Those headwinds offset a $205 million bump to full-year subscription revenue guidance.
Shares are down roughly 17% in Thursday mid-day trading near $86.
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IBM Beats on Q1, but Consulting Stalls 12:20 pm — IBM -8.8%
By Matt Frankel, CFP®
Team Hidden Gems
International Business Machines (IBM 1.13%) beat expectations on both revenue and earnings, yet the market punished it for unchanged guidance and weakness in its consulting arm. Revenue grew 9% year-over-year to $15.9 billion and non-GAAP earnings per share jumped 19% to $1.91, ahead of Wall Street forecasts on both lines. The biggest upside surprise came from infrastructure, where a 51% surge in IBM Z mainframe sales helped segment profit more than double.
Software, the company's largest revenue contributor, grew 11% year-over-year on hybrid cloud and AI demand, and operating margins expanded to 29.8%. Consulting, however, grew only 1% in constant currency. That matters because the segment houses most of IBM's $12.5 billion generative AI book, where investors are most worried about AI-native competitors eating into IBM's advisory work. Despite the strong Q1 showing, management reaffirmed its full-year outlook for more than 5% constant-currency revenue growth and a roughly $1 billion free cash flow increase.
Shares are down about 9% in Thursday trading near $228.
Microsoft Cuts 7% of U.S. Workforce 12:10 pm — MSFT -3.3%
Microsoft (MSFT +0.11%) is launching its first-ever voluntary buyout program, targeting approximately 7% of its U.S. workforce as it aggressively reallocates resources toward artificial intelligence. The 51-year-old titan will offer retirement packages to senior directors and below whose age and tenure total at least 70. This strategic thinning comes as Microsoft, Alphabet (GOOG +0.44%), and Amazon (AMZN 1.24%) face immense capital expenditure requirements for data centers while disruptive coding AI threatens legacy software margins. To retain top talent amid this transition, Microsoft is also decoupling stock awards from cash bonuses, granting managers more flexibility to reward elite performers.
Streamlined Incentives: The move to five pay options instead of nine simplifies the annual review process, allowing the company to pivot compensation toward AI-critical roles. Fiscal Prudence: By opting for voluntary exits over forced layoffs, Microsoft aims to reduce its 228,000-person headcount while maintaining internal morale during a volatile period for software valuations. ServiceNow Plunges on War Headwinds 11:15 am — NOW -16.1%
ServiceNow (NOW 0.71%) shares plummeted 17% Thursday morning, dragging down peers like Salesforce (CRM 0.23%), Adobe (ADBE 6.75%), and Oracle (ORCL 0.05%). While the company matched first-quarter earnings estimates at $0.97 per share, management revealed that the ongoing conflict in Iran delayed several large on-premise deals. This geopolitical friction created a 75-basis-point headwind for subscription revenue, which grew 22% to $3.67 billion. Investors reacted sharply to the news, as the software sector already faces heightened scrutiny regarding its ability to maintain growth rates while navigating both global instability and the rapid transition toward generative artificial intelligence.
Collateral Damage Discovered: The sales slowdown at ServiceNow sparked a contagion effect across the industry, with Salesforce shedding 8% as traders price in similar international deal delays. AI Valuation Pressure: Despite strong headline numbers, software giants are being punished for any sign of weakness as the market weighs if AI will eventually commoditize core enterprise platforms. Paramount Triumphs in WBD Bidding War 11:10 am — PSKY -5.1%
Warner Bros. Discovery (WBD +0.37%) shareholders overwhelmingly approved a $31-per-share acquisition by Paramount Skydance (PSKY 0.19%) on Thursday, moving the blockbuster media merger toward a third-quarter close. The deal follows an intense bidding war involving Netflix (NFLX 1.20%) and Comcast (CMCSA +2.21%). Paramount's offer includes a $7 billion breakup fee and covers WBD's previous $2.8 billion penalty to Netflix. While the premium offers certainty in a volatile streaming landscape, investors expressed frustration over non-binding executive payouts. CEO David Zaslav is set to receive an $800 million "golden parachute," including a controversial $335 million tax gross-up, despite a formal shareholder vote rejecting the compensation package.
Strategic Consolidation Play: By folding HBO Max, CNN, and the Warner Bros. film studio into its portfolio, Paramount aims to build a "next-generation" scale capable of rivaling Disney (DIS 0.43%) in global streaming dominance. Regulatory Hurdles Remain: While investors and proxy firms like ISS are on board, the merger still requires federal sign-off, which could be complicated by the consolidation of major news and sports broadcasting assets. WBD performance
Today -0.2%
1 Year +227.4%
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Hidden Gems Primary
Database Superscore
51
Top of the Morning 10:25 am — ISRG flat
By Sanmeet Deo
Team Rule Breakers
Intuitive Surgical (ISRG 0.50%) dropped its Q1 2026 results on April 21, and the numbers were hard to argue with. Revenue hit $2.77 billion, up 23% year over year, while non-GAAP earnings per share surged to $2.50, crushing estimates of $2.12. Procedures grew 17% globally, the Ion lung-biopsy platform jumped 39%, and management promptly raised full-year guidance. For good measure, the company bought back $1.1 billion of its own stock in a single quarter, the largest repurchase in company history.
The bull case is compelling. The most important detail in the report wasn't the topline beat, it was that revenue grew six percentage points faster than procedures. That gap is pricing power made visible, driven by the da Vinci 5 platform commanding higher ASPs and generating ~11% more utilization per system than its predecessor. As the installed base of 11,395 systems churns out high-margin instrument and accessory revenue every quarter, the flywheel keeps spinning faster. Japan's new reimbursement policy in June 2026 could add another growth leg.
The bear case has teeth too. China, once a promising growth frontier, is now effectively dead money until at least 2027, with domestic competition and policy headwinds showing no signs of abating. Tariffs are trimming roughly 100 basis points from gross margins. And a newly disclosed cybersecurity incident involving unauthorized customer data access introduces a tail risk management hasn't faced before.
At its current valuation, Intuitive already prices in a lot of perfection. The business is exceptional, the question is whether the stock gives you room to breathe.
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By Andy Cross
Motley Fool CIO
Medpace (MEDP 1.77%) shares are under pressure today after reporting Q1 2026 earnings yesterday that exceeded estimates but left investors concerned over future business. Q1 EPS of $4.28 beat the $3.94 estimates. And revenue of $706.6 million outpaced expectations of $697.6 million. The contract research company also maintained its full-year 2026 guidance with revenues between $2.755 billion and $2.855 billion and EPS between $16.68 and $17.50.
The conference call is just going on as I write this, but some of the concerns are about the book-to-bill ratio, which dipped down to 0.88x from 1.04x last quarter and 0.9x a year ago. Book-to-bill measures future business relative to the current sales. Above 1 is better than not. Medpace's ratio this quarter was also below analysts' consensus estimate of 1.04x according to VisibleAlpha, a S&P GlobalMarket Intelligence company. And that estimate has trended down. So this 0.88x result comes as a bit of a surprise.
5:15 am — BNTX -0.69% in pre-market trading
By Morning Show host Thomas King, CFA
Team Rule Breakers
Pancreatic cancer is one of the deadliest. In 2019 and 2020, sixteen patients were treated with a cancer vaccine developed by BioNTech (BNTX +1.12%) and Genentech which was designed to stimulate their immune system to recognize and attack the cancerous cells. Of the sixteen patients treated, eight had a significant immune system response, and of these eight, seven were alive five years after receiving the vaccine. Seven of the total of sixteen patients (44%), and seven of the eight (88%) that had an immune response were alive five years later. This is a dramatic improvement from the typical five-year survival rate for pancreatic cancer, which is 13%. This was a small study with only sixteen patients, but the results are encouraging and the vaccine will now be tested in a larger group of patients in a Phase 2 study.
Opening Bell 9:35 am -- TSLA -2.6%, IBM -9.6%, NOW -15.9%
Wall Street is pulling back from Wednesday's record peaks as heavy-hitting tech earnings trigger a selective sell-off. While the S&P 500 and Nasdaq initially rallied on President Trump’s Iran ceasefire extension, disappointing reactions to corporate results have soured the mood. Tesla (TSLA +1.82%) shares reversed early gains to trade 3% lower after CEO Elon Musk projected a "substantial" surge in capital expenditures — hitting $25 billion for 2026 — to fund its shift into AI and robotics. Meanwhile, enterprise software giants IBM (IBM 1.13%) and ServiceNow (NOW 0.71%) are dragging on the indices, dropping 7% and 13% respectively, as investors question if current profit growth can sustain premium valuations amid ongoing geopolitical "heartburn."
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Netflix's $25B Buyback Signals Share Confidence 8:00 am -- NFLX +1.22% in pre-market trading
Netflix (NFLX 1.20%) is shifting its capital strategy from mega-mergers to shareholder returns, authorizing a new $25 billion share repurchase program following its exit from the $72 billion race for Warner Bros. Discovery (WBD +0.37%). The move comes as the streamer sits on $12.3 billion in cash--boosted by a $2.8 billion breakup fee from Paramount Skydance (PSKY 0.19%)--and looks to soothe investors following a tepid Q2 forecast and the impending departure of co-founder Reed Hastings. With acquisition "noise" behind it, Netflix is pivoting toward internal growth, including the recent purchase of AI film-tech firm InterPositive and a $20 billion content spend targeting live sports and advertising scale.
High-Yield Confidence: The buyback resumes with $6.8 billion still remaining from a previous 2024 plan, signaling management's belief that shares are undervalued after a recent 10% post-earnings dip to roughly $94. Scaling the Ad Tier: Analysts expect the ad-supported segment to double revenue to $3 billion in 2026, serving as a critical offset to slowing subscriber growth in mature markets like the U.S. and Canada.
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This Morning's Breakfast News 7:30 am -- IBM -7.48% in pre-market trading
IBM (IBM 1.13%) fell over 7% ahead of the market open despite quarterly results beating revenue and earnings estimates, as cautious guidance for the full year weighed on sentiment, something CEO Arvind Krishna blamed on broader geopolitical uncertainty.
"A lot of consumer companies are my clients": Krishna pointed out that higher inflation could see people spend less at companies such as Walmart (WMT +0.44%), which indirectly impacts IBM from reduced activity. "IBM's consulting business will be both threatened and supported by more sophisticated AI tools": In late February, TMF chief investment officer Andy Cross explained the Hidden Gems recommendation is under pressure from AI disruption, but "mainframes remain necessary infrastructure for hugely complex computing systems."
ICYMI: Wednesday's Scoreboard 6:00 am -- AOS unchanged in pre-market trading
A.O. Smith (AOS +0.72%) was the subject of the latest Scoreboard video.
China's Tech Giants Race to Back DeepSeek 5:30 am -- BABA -2.34% in pre-market trading
Chinese internet giants Tencent (TCEHY 0.20%) and Alibaba (BABA +0.02%) are in advanced talks to lead a landmark $300 million funding round for DeepSeek, a move that could value the AI pioneer at over $20 billion. The start-up, owned by hedge fund High-Flyer Capital Management, has gained global recognition for its high-efficiency, low-cost open-source models that rival U.S. leaders like Alphabet (GOOG +0.44%). Tencent has reportedly proposed acquiring up to a 20% stake, though negotiations remain fluid as DeepSeek resists ceding significant control. For the tech titans, the deal is a strategic grab for "agentic AI" leadership and a way to lock in demand for their respective cloud computing and data center services.
Benchmark Battle: DeepSeek's target valuation is being compared to MiniMax, another Chinese "super unicorn" recently valued by Goldman Sachs at $38.9 billion due to its extreme optimization of computing costs. Agentic Shift: DeepSeek is pivotally expanding into software "agents" capable of autonomous task execution, a sector where Alibaba recently consolidated its AI services into a single business unit to drive 2026 growth.
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Tilray Jumps on Cannabis Rescheduling Hopes 4:45 am -- TLRY +2.50% in pre-market trading
Tilray (TLRY 2.73%) shares surged over 11% as cannabis stocks rallied following reports that the Trump administration is expected to move toward reclassifying marijuana to Schedule III. The potential regulatory shift has sparked heavy buying interest across the sector.
Rescheduling catalyst drives sector rally: Reports indicate the administration is expected to finalize marijuana reclassification, which investors view as a major regulatory catalyst that could ease tax burdens and boost the industry. Analyst sees significant upside potential: A Wall Street analyst highlighted over 40% upside for Tilray based on its leading Canadian market share and growing beverage revenue, adding to the bullish sentiment surrounding the stock.
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Before the Opening Bell 4:30 am
Stock futures retreated Thursday as a breakdown in U.S.-Iran negotiations overshadowed President Trump's "indefinite" ceasefire. While the truce holds, a complete naval blockade of the Strait of Hormuz has pushed Brent crude back above $103 per barrel, fueling stagflation fears ahead of April's manufacturing data. Tesla (TSLA +1.82%) added to the volatility; despite a Q1 earnings beat, shares fell 2% after CEO Elon Musk jacked up 2026 capital expenditure guidance to $25 billion to fund a massive "Cybercab" and AI robotics push. As cash flow concerns mount, investors are pivoting to pre-market results from American Express (AXP +2.18%), Blackstone (BX +1.58%), and American Airlines (AAL +2.25%) to gauge consumer and industrial resilience.
The $25B Bet: Tesla's tripled capex run-rate targets six simultaneous production lines, including a dedicated "Optimus" humanoid robot facility in Austin set to begin large-scale output this August. Banking on the Premium: American Express is expected to post a 10% earnings jump to $4.01 per share, as its high-net-worth customer base remains largely insulated from war-related energy spikes. HSBC Holdings is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Andy Cross has positions in Adobe, Alphabet, Amazon, Comcast, Mastercard, Medpace, Meta Platforms, Microsoft, Netflix, Nvidia, Salesforce, ServiceNow, Starbucks, Tesla, Walt Disney, and Warner Bros. Discovery. Sanmeet Deo, CFA has positions in Alphabet, Amazon, Intuitive Surgical, Medpace, Netflix, Tesla, and Walmart. Seth Jayson has positions in A. O. Smith, Amazon, Microsoft, Nvidia, Salesforce, ServiceNow, and Walt Disney. Thomas King, CFA has positions in Adobe, Alphabet, Amazon, BioNTech Se, Intuitive Surgical, Mastercard, Microsoft, Salesforce, Tesla, Texas Instruments, and Walt Disney. The Motley Fool has positions in and recommends A. O. Smith, Adobe, Alphabet, Amazon, Blackstone, DoorDash, International Business Machines, Intuitive Surgical, Mastercard, Medpace, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle, Regeneron Pharmaceuticals, Salesforce, ServiceNow, Starbucks, Tencent, Tesla, Texas Instruments, Walmart, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends Alibaba Group, BioNTech Se, Comcast, HSBC Holdings, Lockheed Martin, and Tilray Brands and recommends the following options: long January 2028 $330 calls on Adobe, long January 2028 $520 calls on Intuitive Surgical, short January 2028 $340 calls on Adobe, and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
BioNTech SE (Nasdaq: BNTX) today reported financial results for the three months ended March 31, 2026 and provided an update on its corporate progress.
The logo of BioNTech is pictured at Biontech's research laboratory for individualised vaccines against cancer in Mainz, Germany, July 27, 2023. REUTERS/Wolfgang Rattay/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesBioNTech transfers COVID-19 vaccine production to PfizerCutbacks come after co-founders announced departures to start new ventureCompany plans $1 billion share buyback, cost cuts, reaffirms R&D budgetShares fall 6.1%FRANKFURT, May 5 (Reuters) - BioNTech (22UAy.DE), opens new tab said on Tuesday it would close sites affecting up to 1,860 jobs and buy back up to $1 billion worth of its shares, as the COVID‑19 vaccine maker pivots away from pandemic-era manufacturing and prepares for a leadership transition.
The German company, which reported on Tuesday that it fell further into the red in the first quarter, said it would close sites in Idar-Oberstein, Marburg and Tuebingen, Germany, as well as in Singapore. The closures are part of a production transfer of its COVID-19 vaccine to partner Pfizer (PFE.N), opens new tab this year.
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BioNTech shares were down 6.1% after its results and announcement of plant closures.
BioNTech, the initial inventor of the Western world's most commonly used immunisation shot during the pandemic, said in March that its two co-founders would leave by the end of this year to start a new venture.
After years of deals and hiring for a deeper development pipeline and a commercial build-up, CEO Ugur Sahin and Chief Medical Officer Oezlem Tuereci, the married couple behind the success, said at the time they would strike out on their own to pursue early drug research.
The exit from Idar-Oberstein, Marburg, and Tuebingen is planned by the end of 2027, while operations in Singapore are expected to end during the first quarter of 2027, the statement said.
For each site, BioNTech is exploring options including a partial or total sale, it added.
It acquired operations in Tuebingen as part of the takeover of domestic peer CureVac for about $1.25 billion, agreed in June last year.
BioNTech also said it would ramp up cost-cutting, potentially reaching about 500 million euros ($584.50 million) in annual savings in 2029.
Based on BioNTech's staff of about 8,400, about 22% would be affected by job cuts, predominantly in Germany.
In March last year, BioNTech unveiled plans to cut between 950 and 1,350 positions until 2027 and it was not immediately clear how many jobs have already been cut.
The company, which had 16.7 billion euros in cash and financial securities as of March 31, will also repurchase up to $1 billion of its shares over the next 12 months.
It reported a first-quarter net loss of 532 million euros, compared with a loss of 416 million in the year-earlier period.
The group reaffirmed a 2026 research and development budget of 2.2 billion to 2.5 billion euros.
($1 = 0.8554 euros)
Reporting by Patricia Weiss and Ludwig Burger, editing by Linda Pasquini and Susan Fenton
Our Standards: The Thomson Reuters Trust Principles., opens new tab
The company said it would exit operations at some manufacturing plants in Germany and Singapore, as well as sites it acquired as part of its CureVac takeover.
The stock’s decline comes amid a broader market rally, with major indices like the Nasdaq up by 1.19% and the S&P 500 gaining 0.72%.
• BioNTech stock is under selling pressure. What’s pulling BNTX shares down?
BioNTech Revenue Miss, Wider Net Loss Pressure SentimentIn its first-quarter financial results, BioNTech reported revenues of 118.1 million euros ($138 million), down from 182.8 million euros a year ago, missing the consensus estimate of $214.62 million.
The sales fell primarily due to lower sales of its COVID-19 vaccines.
The company also recorded a net loss of 531.9 million euros, compared to a net loss of 415.8 million euros in the prior year.
The COVID-19 vaccine maker reported an adjusted loss of 1.95 euros ($2.28), better than the Street’s loss expectation of $2.52.
“Our revenues for the first quarter reflect the seasonal demand for COVID-19 vaccines and are in line with our expectations,” said Ramón Zapata, CFO at BioNTech. “We are committed to a diligent capital allocation strategy that empowers us to pursue our goal of evolving into a leading biopharmaceutical company with multiple oncology products by 2030.”
Restructuring Plan Targets Cost Savings, Site ExitsBioNTech is planning to wind down operations at manufacturing sites in Idar-Oberstein, Marburg, Tübingen and Singapore, along with CureVac facilities, impacting up to 1,860 roles.
The exits from Idar-Oberstein, Marburg and Tübingen are targeted by end-2027, while Singapore operations are set to close in the first quarter of 2027. The company is evaluating divestment options for these sites, including partial or full sales.
The restructuring is expected to deliver phased cost savings, reaching roughly 500 million euros in recurring annual savings by 2029 at full run-rate.
BioNTech reiterated its FY2026 revenue guidance of 2 billion–2.3 billion euros ($2.33 billion–$2.68 billion), compared to the Wall Street estimate of $2.56 billion.
BNTX Stock Price Activity: BioNTech shares were down 3% at $96.37 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo: Piotr Swat / Shutterstock
Market News and Data brought to you by Benzinga APIs
The logo of BioNTech is pictured at Biontech's research laboratory for individualised vaccines against cancer in Mainz, Germany, July 27, 2023. REUTERS/Wolfgang Rattay/File Photo Purchase Licensing Rights, opens new tab
CompaniesBERLIN, May 6 (Reuters) - A German government spokesperson said on Wednesday that the loss of BioNTech vaccine production in the country can be offset by other companies.
He added that the government continues to assume that the vaccine supply to the population is guaranteed.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
BioNTech this week said it would close sites affecting up to 1,860 jobs, as the COVID-19 vaccine maker pivots away from pandemic-era manufacturing.
Reporting by Thomas Seythal Editing by Madeline Chambers
Our Standards: The Thomson Reuters Trust Principles., opens new tab
BioNTech SE is downgraded to Sell due to declining COVID vaccine revenues, leadership exits, and pipeline uncertainty. BNTX faces €531.9m Q1 net loss, expects €2–3bn 2026 revenues, and plans €1bn share buyback amid €16.8bn cash reserves. Major staff cuts and site exits are underway, targeting €500m annual savings to support the oncology pivot.
MAINZ, Germany, May 7, 2026 (GLOBE NEWSWIRE) -- BioNTech SE (Nasdaq: BNTX, “BioNTech” or “the Company”) today announced that it has authorized a new share repurchase program (the “Program”), under which the Company may repurchase American Depositary Shares (“ADSs”), each representing one ordinary share of the Company, for an aggregate amount of up to $1.0 billion. Repurchases under the Program may be made until and including May 6, 2027. BioNTech’s disciplined approach to capital allocation and strong financial position enables this authorization.
BioNTech expects to use the repurchased ADSs to satisfy obligations in the ordinary course of business. The Program is designed to enhance capital efficiency, support long-term value creation and maintain financial flexibility alongside BioNTech’s objective to become a multi-product company by 2030.
The commencement, timing and total amount of ADS repurchases will depend upon market conditions and may be made in open market purchases from time to time, with a focus on price efficient repurchases to ensure prudent deployment of capital. BioNTech expects to fund the Program using its existing cash resources.
“We are confident in the Company’s long-term growth prospects, and this share repurchase program is consistent with our capital allocation strategy and our commitment to sustainable value creation for our shareholders,” said Ramón Zapata, Chief Financial Officer at BioNTech. “At the same time, our disciplined approach to capital deployment enables us to maintain the financial strength necessary to advance our innovative pipeline and aim for self-sustaining growth in the years ahead.”
The Program has been designed to operate within the safe harbor provided by Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the affirmative defense provided by Rule 10b5-1 of the Exchange Act.
About BioNTech
BioNTech is a global next generation biopharmaceutical company pioneering novel investigative therapies for cancer and other serious diseases. In oncology, BioNTech is committed to transforming how cancer is treated. Its ambition is to develop innovative medicines with pan-tumor or synergistic potential to address cancer from multiple angles and across the full continuum of the disease from early- to late-stage. Its growing late-stage oncology pipeline comprises complementary treatment approaches spanning immunomodulators, antibody drug conjugates, and mRNA cancer immunotherapies. BioNTech has partnered with multiple global and specialized pharmaceutical collaborators leveraging complementary expertise and resources to accelerate innovation and drive progress, including Bristol Myers Squibb, Duality Biologics, Genentech, a member of the Roche Group, Genmab, MediLink, OncoC4, and Pfizer.
For more information, please visit www.BioNTech.com.
BioNTech Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: the Company’s intent to repurchase, from time to time, the Company’s ADSs. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
The forward-looking statements in this press release are based on BioNTech’s current expectations and beliefs of future events and are neither promises nor guarantees. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond BioNTech’s control, and which could cause actual results to differ materially and adversely from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: changes in the market price of the Company’s ADSs, general market conditions and applicable securities laws.
You should review the risks and uncertainties described under the heading “Risk Factors” in BioNTech’s Report on Form 6-K for the period ended March 31, 2026, and in subsequent filings made by BioNTech with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date hereof. Except as required by law, BioNTech disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.
An outbreak of the hantavirus on a cruise ship recently sparked a bit of a rally in the pharmaceutical and biotech industries. While no one hopes this will become a global health crisis, if it does, those companies that develop and market effective vaccines for the hantavirus may be financially rewarded, so the argument goes. However, at this stage, it is likely not a good idea to buy into this rally. Let's consider three reasons why.
Image source: Getty Images.
1. It's not as contagious as the coronavirus While this is an evolving situation and we may not have all the facts yet, the information we have suggests that this is unlikely to become a global health crisis on the scale of the coronavirus pandemic. Here's why. COVID-19 spreads through respiratory droplets from an infected person. The hantavirus, by contrast, is primarily transmitted by contact with the saliva, droppings, or urine of infected rodents.
There is a known variant, the Andes virus, that can spread from person to person. Even that strain has a much lower transmission rate than COVID-19, according to health officials. The hantavirus can be deadly, just like the coronavirus. But its limited person-to-person transmission could make it easier to contain and help us avoid another pandemic. That means the market for hantavirus vaccines may be very limited.
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2. It's hard to pick the winners Even if the worst-case scenario happens and this turns into another pandemic, it still wouldn't be a good idea to jump into the biotech rally. Here's a key reason: It's almost impossible to predict which companies will successfully develop and market hantavirus vaccines. The experience of the COVID-19 pandemic is instructive here. Many companies tried to launch effective coronavirus vaccines. Most of them failed to develop a competitive vaccine in a timely manner and dominate the market. The list included small biotechs, such as Ocugen, and major pharmaceutical giants, like Sanofi and Merck.
The fact that Sanofi and Merck were not major winners here is especially noteworthy, given that both have strong vaccine businesses. So, one might have expected them to be among the leaders. This shows that even investing in well-established vaccine makers doesn't guarantee anything. For all we know, if the recent hantavirus outbreak becomes a pandemic, the companies that will succeed in developing effective vaccines in a timely manner may turn out to be under-the-radar corporations.
3. Picking the winners might still result in losses Let's go one step further: Suppose there is a pandemic, and an investor purchases shares of a company that successfully develops a vaccine for the hantavirus in a timely manner. Even under this scenario, market-beating returns aren't guaranteed. Below is the performance of four of the vaccine companies, those that dominated the COVID-19 market at its peak, since January 2020: Pfizer, Moderna, BioNTech, and Novavax.
PFE Total Return Level data by YCharts
Notably, two have underperformed the S&P 500 during this period -- Pfizer by a substantial margin. Investors focused on the long game shouldn't try to pick out which company might make the biggest splash in this hypothetical market. Investing in an ETF that tracks major indexes such as the S&P 500 or the Nasdaq is a safer way to achieve excellent returns over the long run.
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Some vaccine makers are still buys Moderna is one of those working on a hantavirus vaccine and has been doing so since before the recent outbreak on a cruise ship. While it may not be a buy for that specific reason, the company could have a bright future as it advances several of its current candidates through the pipeline. One of the most promising is mRNA-4157, an investigational personalized cancer vaccine. Moderna has plenty of other programs in the pipeline, and its mRNA platform, which enables it to develop vaccines faster than companies using traditional methods, is also a major strength.
Pfizer is another vaccine maker worth considering right now. The stock looks attractive on the dip, considering it has significantly replenished its pipeline and has a long list of pivotal trials it started over the past year or will kick off throughout 2026. Pfizer's shares could recover as its pipeline progresses through the end of the decade, making it a stock worth serious consideration.
4 Reasons Pfizer Could Be a Value Play You Can't MissBioNTech NASDAQ: BNTX used its virtual annual general meeting to outline a transition year marked by leadership changes, continued investment in oncology, a planned share repurchase program and a restructuring of its manufacturing network.
Chairman of the Supervisory Board Helmut Jeggle said the 2025 fiscal year was “a successful one” for the company, citing progress toward BioNTech’s goal of becoming a multi-product company by 2030. He said the company ended 2025 with cash and marketable securities totaling EUR 17.2 billion, giving it “substantial resources” for its next phase of development.
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Management Highlights Oncology Pipeline and BMS Partnership Moderna Dips on Q2 Earnings But Can It Rip on a Short Squeeze?Chief Executive Officer Professor Dr. Ugur Sahin, delivering what he described as his final annual general meeting address as CEO, said BioNTech’s strategy remains focused on two pillars: maintaining its COVID-19 vaccine business with partner Pfizer and using proceeds to advance a diversified development pipeline, particularly in oncology.
Sahin said BioNTech and Pfizer have delivered more than 5 billion COVID-19 vaccine doses worldwide since 2020. He added that BioNTech’s vaccine is distributed in more than 180 countries and regions and has a market share of more than 50% in key markets.
Novavax Plunges on Earnings Miss: Falling Knife or Buying Opp?In oncology, Sahin said BioNTech has more than 25 ongoing Phase 2 and Phase 3 studies, 17 clinical programs and a clinical evidence base that includes more than 4,000 patients. He said the company expects several data updates from key late-stage studies in 2026.
Sahin highlighted pumitamig, BioNTech’s next-generation bispecific immunomodulator, as the company’s “flagship program.” He said the candidate has shown anti-tumor activity across a broad range of cancers based on clinical data to date and may have potential as a combination partner with other agents.
BioNTech completed the acquisition of Biotheus in early 2025, bringing pumitamig fully into its pipeline, and in June 2025 entered into a global 50/50 development and commercialization collaboration with Bristol Myers Squibb. Sahin said the agreement includes a $1.5 billion upfront payment, $2 billion in additional unconditional payments and up to $7.6 billion in milestone payments.
Financial Outlook and Buyback Plan Chief Financial Officer Ramón Zapata said 2025 was a strong year for BioNTech, with total revenue of EUR 2.9 billion, slightly higher than the prior year despite lower COVID-19 vaccine revenue. The decline in vaccine revenue was partly offset by EUR 613 million recognized from the BMS collaboration.
Research and development expenses were about EUR 2.1 billion in 2025, slightly below the prior year, which Zapata attributed to portfolio management and cost sharing with BMS. For the first quarter of 2026, BioNTech reported revenue of EUR 118 million, compared with EUR 183 million a year earlier, reflecting lower COVID-19 vaccine demand. R&D expenses rose to EUR 557 million from EUR 526 million, while SG&A expenses increased to EUR 151 million from EUR 121 million.
BioNTech reaffirmed its 2026 guidance, expecting total revenue of EUR 2.0 billion to EUR 2.3 billion, adjusted R&D expenses of EUR 2.2 billion to EUR 2.5 billion and adjusted SG&A expenses of EUR 700 million to EUR 800 million.
Zapata also announced a share repurchase program of American Depositary Shares of up to $1 billion over the next 12 months. He said the program reflects “confidence in our science, capital management discipline, and a commitment to delivering long-term value for our shareholders.”
Manufacturing Consolidation to Affect About 1,800 Employees BioNTech executives also addressed the company’s planned manufacturing consolidation. Zapata said BioNTech identified sites where capacity is expected to become significantly underutilized or idle over the next 24 months and decided to exit operations at sites in Idar-Oberstein, Marburg and Singapore, as well as CureVac sites.
The decision affects approximately 1,800 colleagues, Zapata said. He added that BioNTech is exploring divestment options, including partial or full sales of the sites, and expects recurring annual savings could reach about EUR 500 million by 2029, excluding exit costs.
Sahin said the decisions were made “with a heavy heart” and after careful analysis. He said the company intends to seek socially responsible solutions for affected employees and is working with policymakers, scientific institutions and regional partners.
Zapata said commercial and clinical drug supply will not be affected. Future clinical manufacturing for mRNA-based candidates will be covered by BioNTech’s broader network, including Mainz, while commercial COVID-19 vaccine production will be handled by Pfizer from the end of 2026.
Leadership Changes and New Company Plans Jeggle said Jens Holstein retired as planned as chief financial officer on June 30, 2025, and was succeeded by Zapata on July 1. Ryan Richardson, former chief strategy officer, stepped down from the Management Board by mutual agreement effective Sept. 30, 2025. The Supervisory Board also extended the appointment of Chief Operating Officer Sierk Pötting through Dec. 31, 2027.
Kylie Jimenez, appointed chief human resources officer effective March 1, 2026, told shareholders that her role is to help BioNTech’s organization, leadership and talent evolve with its strategy as it builds toward becoming a global multi-product commercial biotechnology company.
Jeggle also addressed the previously announced departures of Sahin and Chief Medical Officer Professor Dr. Özlem Türeci, who are set to leave BioNTech at the end of the year after founding and building the company over 18 years. He said they plan to focus on a new company dedicated to next-generation mRNA candidates. In response to submitted shareholder questions, Jeggle said BioNTech’s intellectual property rights, including patents, trademarks and technology platforms, are assets of the BioNTech Group and do not belong personally to the co-founders.
Shareholders Approve AGM Resolutions Shareholders representing 92% of BioNTech’s registered share capital were present or represented at the meeting. No live shareholder questions were submitted during the general debate.
All management and Supervisory Board proposals on the agenda were approved by the required majorities. These included carrying forward the 2025 balance sheet profit, approving the compensation report, expanding the Supervisory Board from six to eight members, electing Supervisory Board members, renewing authorization for virtual annual general meetings, creating a new authorized capital 2026 and approving a domination and profit and loss transfer agreement between BioNTech SE and BioNTech Discovery GmbH.
About BioNTech NASDAQ: BNTXBioNTech SE NASDAQ: BNTX is a Germany-based biotechnology company that develops next-generation immunotherapies and vaccines, with a primary focus on messenger RNA (mRNA) technology. Founded in 2008 and headquartered in Mainz, BioNTech advances a platform approach to design and manufacture therapeutics across oncology, infectious diseases and other high unmet-need areas. The company is publicly traded on the NASDAQ exchange and became widely known for its rapid development and global deployment of an mRNA-based COVID-19 vaccine in collaboration with Pfizer.
BioNTech's core activities include discovery research, clinical development and manufacturing of mRNA-based medicines, personalized cancer immunotherapies, engineered cell therapies, and antibody- and protein-based therapeutics.
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MAINZ, Germany, May 15, 2026 (GLOBE NEWSWIRE) -- BioNTech SE (Nasdaq: BNTX, “BioNTech” or “the Company”) held its Annual General Meeting (“AGM”) today. A total of 92 per cent of the share capital was represented at the virtual assembly. All resolutions proposed on the agenda items put to the vote at today’s AGM were approved by a majority of the shareholders.
BioNTech is strengthening its focus on the Company’s growing late-stage oncology pipeline, while continuing its discovery and early research aimed at long-term innovation. Consequently, the Company's shareholders approved expanding the Supervisory Board from six to eight members and adding additional expertise: Prof. Iris Löw-Friedrich, M.D., Ph.D., and Susanne Schaffert, Ph.D., were elected as new members of the Supervisory Board.
Iris Löw-Friedrich has many years of expertise in the field of clinical development and broad experience in the scientific and medical fields. She also possesses knowledge in the areas of sales and commercialization, management, innovation, and international markets relevant to the Company.
She is an experienced Supervisory Board member and adjunct professor of internal medicine at the faculty of medicine at Goethe University in Frankfurt am Main, Germany.
Susanne Schaffert is a member of supervisory boards in the healthcare sector, including that of Merck KGaA. She possesses particular expertise in the field of oncology as well as in sales and commercialization with a focus on product launches. Her knowledge spans innovation, research and development, and organizational leadership and management.
Additionally, shareholders approved the extension of the mandates of BioNTech’s Supervisory Board members Helmut Jeggle, Prof. Anja Morawietz, Ph.D., and Prof. Rudolf Staudigl, Ph.D.
At a meeting held following the AGM, the Supervisory Board elected Helmut Jeggle as its Chairman.
The voting results for all agenda items can be viewed on the Annual General Meeting 2026 website under the section ‘Voting Results’. The speeches by Chief Executive Officer Prof. Ugur Sahin, M.D., Chief Financial Officer Ramón Zapata and the slides presented at the AGM 2026 can be found in section ‘Speeches and Presentations’ under the same link.
About BioNTech
BioNTech is a global next generation biopharmaceutical company pioneering novel investigative therapies for cancer and other serious diseases. In oncology, BioNTech is committed to transforming how cancer is treated. Its ambition is to develop innovative medicines with pan-tumor or synergistic potential to address cancer from multiple angles and across the full continuum of the disease from early- to late-stage. Its growing late-stage oncology pipeline comprises complementary treatment approaches spanning immunomodulators, antibody drug conjugates, and mRNA cancer immunotherapies. BioNTech has partnered with multiple global and specialized pharmaceutical collaborators leveraging complementary expertise and resources to accelerate innovation and drive progress, including Bristol Myers Squibb, Duality Biologics, Genentech, a member of the Roche Group, Genmab, MediLink, OncoC4, and Pfizer.
For more information, please visit www.BioNTech.com.
BioNTech Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning the potential benefits of appointed Supervisory Board members. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
The forward-looking statements in this press release are based on BioNTech’s current expectations and beliefs of future events and are neither promises nor guarantees. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond BioNTech’s control, and which could cause actual results to differ materially and adversely from those expressed or implied by these forward-looking statements.
You should review the risks and uncertainties described under the heading “Risk Factors” in BioNTech’s Report on Form 6-K for the period ended March 31, 2026, and in subsequent filings made by BioNTech with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date hereof. Except as required by law, BioNTech disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.
Pumitamig data from the ongoing Phase 2/3 ROSETTA Lung-02 trial in first-line non-small cell lung cancer mark the third global data set to consistently show encouraging anti-tumor activity for pumitamig in combination with chemotherapyGotistobart Phase 2 overall survival data in patients with platinum-resistant ovarian cancer add to the growing body of evidence supporting its potential as a chemotherapy-free treatment optionContinued advancement of late-stage oncology pipeline with 25+ Phase 2 and Phase 3 clinical trials, including 13 ongoing pivotal trials as well as novel-novel combination trials across major cancer types MAINZ, Germany, May 22, 2026 – BioNTech SE (Nasdaq: BNTX, “BioNTech” or “the Company”) will present new clinical data and trial updates from its late-stage oncology pipeline and innovative combination programs at the 2026 American Society of Clinical Oncology (“ASCO”) Annual Meeting held in Chicago, from May 29 to June 02. Two oral presentations will highlight new data for key strategic assets pumitamig and gotistobart. In addition, four trial in progress poster presentations will illustrate advancement of the Company’s ongoing pivotal trials and novel-novel combination trials, including antibody-drug conjugates (“ADC”).
“Achieving more for patients with cancer through translating science into innovative therapies is our unwavering ambition at BioNTech,” said Prof. Özlem Türeci, M.D., Co-Founder and Chief Medical Officer at BioNTech. “At this year’s ASCO, our presentations underscore our oncology strategy of building a diversified portfolio of complementary modalities delivering differentiated therapeutic profiles across tumor types with high unmet medical need. We are focused on accelerating key strategic programs, both as monotherapies and combinations with standard of care treatments, to deliver our first wave of oncology innovations to patients. Simultaneously, and building on this momentum, we are advancing novel-novel combination approaches, including ADC-based regimens, to unlock the full synergistic potential of our pipeline.”
Highlights of BioNTech’s late-stage oncology programs to be presented at ASCO 2026:
Pumitamig (BNT327/BMS986545) – an investigational bispecific immunomodulator combining PD-L1 checkpoint inhibition and VEGF-A neutralization, developed in collaboration with Bristol Myers Squibb Company (“BMS”):
1L NSCLC: Data from the interim analysis of the Phase 2 dose-optimization part of the global Phase 2/3 ROSETTA Lung-02 clinical trial (NCT06712316) showed encouraging anti-tumor activity in first-line (“1L”) non-small cell lung cancer (“NSCLC”). The trial evaluated pumitamig plus chemotherapy in patients with non-squamous and squamous NSCLC without actionable genomic alterations and across PD-L1 expression levels. These data mark the third global data set to consistently show encouraging anti-tumor activity for pumitamig plus chemotherapy, adding to the reported global data in small cell lung cancer and triple-negative breast cancer. The results inform the ongoing pivotal Phase 3 part of ROSETTA Lung-02 evaluating pumitamig plus chemotherapy versus pembrolizumab plus chemotherapy. Updated data from a later cut-off date will be presented in a rapid oral presentation. Gotistobart (BNT316/ONC-392) – an investigational tumor microenvironment-selective regulatory T cell depletion candidate targeting CTLA-4, developed in collaboration with OncoC4, Inc. (“OncoC4”):
PROC: Data from the Phase 2 PRESERVE-004 clinical trial (NCT05446298) evaluating gotistobart plus pembrolizumab in heavily pre-treated patients with platinum-resistant ovarian cancer (“PROC”) showed durable anti-tumor activity and clinically meaningful overall survival outcomes. Together with a manageable safety profile, the results add to the growing body of evidence supporting gotistobart’s potential as a chemotherapy-free treatment option, complementing the recently announced data in second and later line squamous non-small cell lung cancer.
BioNTech is advancing a diversified oncology pipeline spanning next-generation immunomodulators, ADCs, and mRNA cancer immunotherapies, both as monotherapies and novel treatment combination approaches. With more than 25 Phase 2 and Phase 3 clinical trials, including 13 ongoing pivotal trials as well as novel-novel combination trials, BioNTech is focused on developing innovative approaches to address the challenges of cancer treatment among the Company’s tumor focus areas from early to late-stage conditions.
All abstracts are available on the ASCO website. Further information on BioNTech’s late-stage oncology portfolio can be accessed here.
Full presentation details:
MedicineAbstract TitleAbstract Number/Presentation DetailsPumitamigPhase 2 data from ROSETTA Lung-02, a global randomized Phase 2/3 trial of pumitamig (PDL1 × VEGF-A bsAb) + chemotherapy in 1L NSCLCAbstract #8513
Rapid Oral Abstract Session
Lung Cancer - Non-Small Cell Metastatic
May 30, 2026, 1:15 - 2:45pm CDTPhase 2/3 trial of pumitamig (PD-L1 ×VEGF-A bsab) plus chemotherapy versus bevacizumab plus chemotherapy in previously untreated, unresectable, or metastatic colorectal cancer (ROSETTA CRC-203)Abstract #TPS3672
Poster Session
Genitourinary Cancer - Prostate, Testicular, and Penile
Poster Board: 229a
May 31, 2026: 9:00am-12:00pm CDTGotistobartOverall survival for patients with pre-treated platinum-resistant ovarian cancer receiving gotistobart in combination with pembrolizumabAbstract #5511
Rapid Oral Abstract session
Gynecologic Cancer
May 30, 2026: 8:00 - 9:30am CDTBNT326/YL202BNT326-01: A Phase 1b/2 trial of BNT326/YL202 (HER3 ADC) as monotherapy and in combination with pumitamig (anti-PD-L1 × VEGF bsAb) in patients with advanced solid tumorsAbstract #TPS3160
Poster Session
Developmental Therapeutics -Molecularly Targeted Agents and Tumor Biology
Poster Board: 294b
May 30, 2026: 1:30 - 4:30pm CDTBNT324/DB-1311BNT324-03: A Phase 3, randomized, open-label trial of BNT324/DB-1311, a B7H3 ADC, versus docetaxel in patients with taxane-naïve metastatic castration-resistant prostate cancer (mCRPC)Abstract #TPS5137
Poster Session
Genitourinary Cancer - Prostate, Testicular, and Penile
Poster Board: 229a
May 31, 2026: 9:00am - 12:00pm CDTTrastuzumab pamirtecan
(BNT323/DB-1303)Fern-EC-01 (BNT323-01): A phase 3 trial of trastuzumab pamirtecan (HER2 ADC) versus investigator’s choice of chemotherapy in patients with previously treated, HER2-expressing, recurrent endometrial cancer (EC)Abstract #TPS5645
Poster Session
Gynecologic Cancer
Poster Board: 302b
June 1, 2026: 9:00am - 12:00pm CDT About BioNTech
BioNTech is a global next generation biopharmaceutical company pioneering novel investigative therapies for cancer and other serious diseases. In oncology, BioNTech is committed to transforming how cancer is treated. Its ambition is to develop innovative medicines with pan-tumor or synergistic potential to address cancer from multiple angles and across the full continuum of the disease from early- to late-stage. Its growing late-stage oncology pipeline comprises complementary treatment approaches spanning immunomodulators, antibody drug conjugates, and mRNA cancer immunotherapies. BioNTech has partnered with multiple global and specialized pharmaceutical collaborators leveraging complementary expertise and resources to accelerate innovation and drive progress, including Bristol Myers Squibb, Duality Biologics, Genentech, a member of the Roche Group, Genmab, MediLink, OncoC4, and Pfizer.
For more information, please visit www.BioNTech.com.
BioNTech Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: the initiation, timing, progress and results of BioNTech’s research and development programs in oncology, including the targeted timing and number of additional potentially registrational trials; BioNTech’s and its collaborators’ current and future preclinical and clinical trials in oncology, including the investigational bispecific immunomodulator pumitamig (BNT327/BMS986545) in multiple indications, the investigational anti-CTLA-4 antibody gotistobart (BNT316/ONC-392) in multiple indications, the investigational B7H3-targeted ADC BNT324/DB-1311 in metastatic castration-resistant prostate cancer, the investigational HER2-targeted ADC trastuzumab pamirtecan (BNT323/DB-1303) in recurrent endometrial cancer, and the investigational HER3-targeted ADC BNT326/YL202 as monotherapy and in combination with pumitamig in NSCLC and advanced solid tumors; the nature and characterization of and timing for release of clinical data across BioNTech’s platforms, which is subject to peer review, regulatory review and market interpretation; the planned next steps in BioNTech’s pipeline programs, including, but not limited to, statements regarding timing or plans for initiation or enrollment of clinical trials, or submission for and receipt of product approvals and potential commercialization with respect to BioNTech’s product candidates; the ability of BioNTech’s mRNA technology to demonstrate clinical efficacy outside of BioNTech’s infectious disease platform; and the potential safety and efficacy of BioNTech’s product candidates. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
The forward-looking statements in this press release are based on BioNTech’s current expectations and beliefs of future events and are neither promises nor guarantees. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond BioNTech’s control, and which could cause actual results to differ materially and adversely from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, projected data release timelines, regulatory submission dates, regulatory approval dates and/or launch dates, as well as risks associated with preclinical and clinical data, including the data discussed in this release, and including the possibility of unfavorable new preclinical, clinical or safety data and further analyses of existing preclinical, clinical or safety data; the nature of the clinical data, which is subject to ongoing peer review, regulatory review and market interpretation; the ability to produce comparable clinical results in future clinical trials; the timing of and BioNTech’s ability to obtain and maintain regulatory approval for its product candidates; discussions with regulatory agencies regarding timing and requirements for additional clinical trials; BioNTech’s and its counterparties’ ability to manage and source necessary energy resources; the impact of tariffs and escalations in trade policy; BioNTech’s ability to identify research opportunities and discover and develop investigational medicines; the ability and willingness of BioNTech’s third-party collaborators to continue research and development activities relating to BioNTech's development candidates and investigational medicines; unforeseen safety issues and potential claims that are alleged to arise from the use of products and product candidates developed or manufactured by BioNTech; BioNTech’s and its collaborators’ ability to commercialize and market its product candidates, if approved; BioNTech’s ability to manage its development and related expenses; regulatory and political developments; BioNTech’s ability to effectively scale its production capabilities and manufacture its products and product candidates; risks relating to the global financial system and markets; and other factors not known to BioNTech at this time.
You should review the risks and uncertainties described under the heading “Risk Factors” in BioNTech’s Report on Form 6-K for the period ended March 31, 2026 and in subsequent filings made by BioNTech with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date hereof. Except as required by law, BioNTech disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.
First investigational PD-(L)1xVEGF bispecific immunomodulator to present global data showing encouraging efficacy in combination with chemotherapy in first-line non-small cell lung cancer across PD-L1 expression levels and subtypes, highlighting its potential to set a new standard of carePumitamig plus chemotherapy showed robust and consistent antitumor activity in first-line non-small cell lung cancer at both evaluated dose levels, with higher confirmed objective response rates at the lower dose of 63.6% in the non-squamous and 72.7% in the squamous subtypesPumitamig is advancing through a comprehensive global Phase 3 development program in non-small cell lung cancer, including the actively enrolling pivotal Phase 3 part of the ROSETTA Lung-02 trial, along with two additional global Phase 3 trials MAINZ, Germany, and PRINCETON, USA, May 30, 2026 – BioNTech SE (Nasdaq: BNTX, “BioNTech”) and Bristol Myers Squibb Company (NYSE: BMY, “BMS”) today announced interim Phase 2 data from the global Phase 2/3 ROSETTA Lung-02 clinical trial (NCT06712316) evaluating the investigational PD-L1xVEGF-A bispecific immunomodulator pumitamig (also known as BNT327 or BMS-986545) plus chemotherapy in patients with previously untreated advanced non-small cell lung cancer (“NSCLC”).
The data showed encouraging anti-tumor activity, with high response rates observed in both non-squamous and squamous NSCLC and at each PD-L1 expression level (TPS ˂ 1%, TPS 1 – 49%, and TPS ≥ 50%). The data are being presented today as a rapid oral presentation (abstract #8513) at the 2026 American Society of Clinical Oncology (“ASCO”) Annual Meeting in Chicago.
“Despite significant immuno-oncology advances in the treatment of non-small cell lung cancer, most advanced diseases relapse on or after a PD-(L)1 checkpoint inhibitor treatment,1 indicating that targeting this immunologic pathway alone is insufficient to achieve durable responses,” said Solange Peters, M.D., Ph.D., Lead Investigator and Director of Oncology at the University Hospital of Lausanne, Switzerland. “I am encouraged by the efficacy signal with this bispecific approach, showing robust responses across subtypes and PD-L1 levels, supporting the continued investigation of pumitamig and its potential to deliver improved outcomes for a broad range of patients with NSCLC.”
The Phase 2 part of the ROSETTA Lung-02 trial evaluated pumitamig in two dose levels, in combination with chemotherapy. At this interim analysis at the April 13, 2026 data cut-off, among 40 response-evaluable patients with a median follow-up of 9.0 months, pumitamig plus chemotherapy showed a confirmed objective response rate (“cORR”) of 57.1% in patients with non-squamous NSCLC and 68.4% with squamous NSCLC with a disease control rate (“DCR”) of 100%. Encouraging anti-tumor activity was observed at both dose levels, with higher response rates at the lower dose showing a cORR of 63.6% for non-squamous and 72.7% for squamous NSCLC. Results were high at each PD-L1 expression level (cORR: 47.6% TPS ˂ 1%; 77.8% TPS 1 – 49 %; 100% TPS ≥ 50%).
Pumitamig plus chemotherapy demonstrated a manageable safety profile with a low discontinuation rate. Grade ≥ 3 treatment-related adverse events (“TRAEs”) were reported in 48.8% of patients and were considered pumitamig-related in 23.3%, leading to treatment discontinuation in four (9.3%) patients. Immune-related AEs (“irAEs”) occurred in 16 (37.2%) patients and grade ≥ 3 irAEs in two (4.7%) patients. Bleeding events were reported in nine (20.9%) patients, with only one event being grade 3.
“The data we are presenting today provide further evidence of the potential of pumitamig to enhance anti-tumor responses in advanced lung cancer, one of the most challenging indications, by simultaneously targeting PD-L1 and VEGF-A with a single molecule,” said Prof. Özlem Türeci, M.D., Co-Founder and Chief Medical Officer at BioNTech. “Pumitamig has consistently shown efficacy in three global Phase 2 trials across PD-L1 expression levels. Together with our partner BMS, we are continuing to advance pumitamig in ongoing pivotal and novel-novel combination trials with the goal of delivering better outcomes for more patients.”
“We are committed to advancing the science of lung cancer with pumitamig and improving on the standard of care for people with this challenging disease,” said Anne Kerber, Senior Vice President, Head of Development, Hematology, Oncology, Cell Therapy at Bristol Myers Squibb. “With one of the broadest registrational programs in the class, we are focused on accelerating the development of pumitamig together with BioNTech, with the goal of delivering meaningful benefit to patients, including those who have been left behind by current therapies.”
BioNTech and BMS are advancing a broad development plan for pumitamig in non-small cell lung cancer across disease stages and subgroups. In addition to the ongoing global ROSETTA Lung-02 trial, which is currently recruiting for the Phase 3 part of the trial, there are two additional global Phase 3 clinical trials in NSCLC currently enrolling. These include ROSETTA Lung-201 (NCT07361497), evaluating pumitamig compared to durvalumab following concurrent chemoradiation therapy in patients with unresectable stage III NSCLC; and ROSETTA Lung-202 (NCT07361510), evaluating pumitamig compared to pembrolizumab as a first-line treatment for patients with advanced PD-L1 ≥ 50% NSCLC. Pumitamig is also being investigated in combination with other novel investigative treatments for NSCLC, including in combination with investigational antibody-drug conjugates (“ADCs”) and other modalities.
About ROSETTA Lung-02
The global Phase 2/3 ROSETTA Lung-02 trial (NCT06712316) is evaluating pumitamig (BNT327/ BMS986545) in combination with chemotherapy in patients with first-line treatment of non-squamous and squamous non-small cell lung cancer without actionable genomic alterations and with any level of PD-L1 expression. In the Phase 2 dose-optimization part of the trial, patients were randomized 1:1 to 1400 mg or 2000 mg pumitamig plus histology-specific chemotherapy Q3W (non-squamous: carboplatin + pemetrexed; squamous: carboplatin + paclitaxel). The primary endpoints of the Phase 2 part of the trial are objective response rate (ORR) per investigator’s assessment (RECIST 1.1), best percentage change in tumor size from baseline, and safety. Key secondary endpoints include duration of response (DOR) and disease control rate (DCR). The Phase 3 part of the trial will evaluate pumitamig plus chemotherapy versus pembrolizumab plus chemotherapy. Based on the totality of the data, a pumitamig 1500 mg flat dose Q3W plus chemotherapy was selected for further evaluation in the Phase 3 part. The primary endpoint of the Phase 3 part of the trial is progression free survival (PFS) assessed by blinded independent central review (BICR). Key secondary endpoints include overall survival (OS), ORR, DOR.
About Pumitamig
Pumitamig is an investigational bispecific immunomodulator, jointly developed by BioNTech and BMS, designed to cooperatively bind to PD-L1 and VEGF-A. It is aimed at restoring the immune system’s ability to recognize and destroy tumor cells while simultaneously cutting off the blood and oxygen supply that feeds tumor cells (anti-angiogenesis effect), preventing them from growing and proliferating. By anchoring to PD-L1 receptors on tumor cells, we believe pumitamig localizes VEGF-A blockade within the tumor microenvironment, potentially enhancing antitumor activity while minimizing systemic exposure.
More than 2,000 patients have been treated with pumitamig in clinical trials to date. Seven global Phase 3 trials with registrational potential are currently ongoing, evaluating pumitamig plus chemotherapy compared to standard of care treatments, in first-line small cell lung cancer (ROSETTA LUNG-01, NCT06712355); first-line non-small cell lung cancer (ROSETTA LUNG-02, NCT06712316); unresectable stage III non-small cell lung cancer (ROSETTA Lung-201, NCT07361497); first-line advanced PD-L1 ≥ 50% non-small cell lung cancer (ROSETTA Lung-202, NCT07361510); first-line triple-negative breast cancer (ROSETTA BREAST-01, NCT07173751); first-line microsatellite stable colorectal cancer (ROSETTA CRC-203, NCT07221357); and first-line gastric cancer (ROSETTA GASTRIC-204, NCT07221149). Pumitamig is also being explored in 10+ novel-novel combination trials with ADCs and other novel modalities, with the aim of expanding its role across tumor types and identifying additional pivotal opportunities.
About NSCLC
Non-small cell lung cancer (NSCLC) covers all epithelial lung cancers other than small cell lung cancer and includes squamous cell carcinoma, large cell carcinoma, and adenocarcinoma of the lung. It is the most common type of lung cancer, accounting for approximately 85% of cases, and is the leading cause of cancer-related deaths worldwide.2 Scientific advances have transformed the treatment of NSCLC, improving outcomes for many patients. However, NSCLC remains an aggressive disease with a poor prognosis and a 5-year survival rate of 18 to 22% in advanced stages.3 Patients with low levels of PD-L1 expression typically do not respond well to checkpoint inhibitor-based regimens creating a significant unmet need for new treatment options that provide durable responses to a broad range of patients.
About BioNTech
BioNTech is a global next generation biopharmaceutical company pioneering novel investigative therapies for cancer and other serious diseases. In oncology, BioNTech is committed to transforming how cancer is treated. Its ambition is to develop innovative medicines with pan-tumor or synergistic potential to address cancer from multiple angles and across the full continuum of the disease from early- to late-stage. Its growing late-stage oncology pipeline comprises complementary treatment approaches spanning immunomodulators, antibody drug conjugates, and mRNA cancer immunotherapies. BioNTech has partnered with multiple global and specialized pharmaceutical collaborators leveraging complementary expertise and resources to accelerate innovation and drive progress, including Bristol Myers Squibb, Duality Biologics, Genentech, a member of the Roche Group, Genmab, MediLink, OncoC4, and Pfizer.
For more information, please visit www.BioNTech.com.
BioNTech Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: BioNTech’s collaboration with Bristol Myers Squibb (BMS); BioNTech and BMS’s ability to successfully co-develop and co-commercialize pumitamig (also known as BNT327 or BMS986545), if approved; the rate and degree of market acceptance of pumitamig, if approved; the initiation, timing, progress, and results of BioNTech’s research and development programs, including BioNTech’s current and future clinical trials, including statements regarding the expected timing of initiation, enrollment, and completion of trials and related preparatory work and the availability of results, and the timing and outcome of applications for regulatory approvals and marketing authorizations, including expectations regarding the potential indications in which pumitamig may be approved, if at all; the targeted timing and number of additional potentially registrational trials, and the registrational potential of any trial BioNTech may initiate; and discussions with regulatory agencies. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
The forward-looking statements in this press release are based on BioNTech’s current expectations and beliefs of future events and are neither promises nor guarantees. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond BioNTech’s control and which could cause actual results to differ materially and adversely from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as risks associated with clinical data, and including the possibility of unfavorable new preclinical, clinical or safety data and further analyses of existing preclinical, clinical or safety data; the nature of clinical data, which is subject to ongoing peer review, regulatory review and market interpretation; the impact of tariffs and escalations in trade policy; competition related to BioNTech’s product candidates; the timing of and BioNTech’s ability to obtain and maintain regulatory approval for its product candidates; BioNTech’s ability to identify research opportunities and discover and develop investigational medicines; the ability and willingness of BioNTech’s third-party collaborators to continue research and development activities relating to BioNTech’s product candidates and investigational medicines; unforeseen safety issues and potential claims that are alleged to arise from the use of products and product candidates developed or manufactured by BioNTech; BioNTech’s and its collaborators’ ability to commercialize and market its product candidates, if approved; BioNTech’s ability to manage its development and related expenses; regulatory and political developments in the United States and other countries; BioNTech’s ability to effectively scale its production capabilities and manufacture its products and product candidates; and other factors not known to BioNTech at this time.
You should review the risks and uncertainties described under the heading “Risk Factors” in BioNTech’s Report on Form 6-K for the period ended March 31, 2026 and in subsequent filings made by BioNTech with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date hereof. Except as required by law, BioNTech disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.
About Bristol Myers Squibb: Transforming Patients’ Lives Through Science
At Bristol Myers Squibb, our mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. We are pursuing bold science to define what’s possible for the future of medicine and the patients we serve. For more information, visit us at BMS.com and follow us on LinkedIn, X, YouTube, Facebook and Instagram.
Bristol Myers Squibb Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, the research, development and commercialization of pharmaceutical products. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on current expectations and projections about Bristol Myers Squibb’s future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, that are difficult to predict, may be beyond our control and could cause future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. These risks, assumptions, uncertainties and other factors include, among others, that the expected benefits of, and opportunities related to the collaboration with BioNTech may not be realized by Bristol Myers Squibb or may take longer to realize than anticipated, that future study results may not be consistent with the results to date, that pumitamig (also known as BNT327 or BMS986545) alone or in combination with chemotherapy may not achieve its primary study endpoint or receive regulatory approval for the indications described in this release in the currently anticipated timeline or at all, any marketing approvals, if granted, may have significant limitations on their use, and, if approved, whether pumitamig alone or in combination with chemotherapy will be commercially successful. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect Bristol Myers Squibb’s business and market, particularly those identified in the cautionary statement and risk factors discussion in Bristol Myers Squibb’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by Bristol Myers Squibb’s subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The forward-looking statements included in this document are made only as of the date of this document and except as otherwise required by applicable law, Bristol Myers Squibb undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise.
1. Mariniello A et al. BioDrugs, 2025 Feb 15;39(2):215–235.
2. Lin Z et al. Medicine (Baltimore). 2025 Jul 25;104(30):e43300.
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Key Takeaways BMY's phase III SUCCESSOR-2 study showed mezigdomide cut progression or death risk by 52% in RRMM.BMY reported higher response rates for MeziKd, with 80.2% overall and 26.7% complete responses.BMY and BioNTech shared phase II pumitamig data showing strong first-line NSCLC activity. Bristol Myers Squibb (BMY - Free Report) reported phase III SUCCESSOR-2 results of CELMoD (cereblon E3 ligase modulation) mezigdomide.
These results were presented at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting.
SUCCESSOR-2 is an inferential, seamless phase II/III, multicenter, randomized, open-label study evaluating the efficacy and safety of mezigdomide in combination with carfilzomib and dexamethasone (MeziKd) versus carfilzomib and dexamethasone (Kd) in patients with relapsed or refractory multiple myeloma (RRMM).
Mezigdomide is an oral CELMoD therapy developed using BMY’s targeted protein degradation platform.
More on BMY’s SUCCESSOR-2 ResultsResults showed MeziKd demonstrated a clinically meaningful and statistically significant improvement in progression-free survival (PFS), representing a 52% reduction in the risk of disease progression or death compared with Kd.
The data revealed significant PFS benefits observed across both second- and third-line patients, including those with high-risk disease. The MeziKd regimen delivered markedly higher response rates, with an overall response rate of 80.2% versus 53.4% and complete response rates of 26.7% versus 8.9% for the control arm. Median overall survival has not yet been reached.
While the safety profile was consistent with prior experience, higher rates of Grade 3-4 adverse events, particularly neutropenia and infections, were reported.
BMY plans to share the results with health authorities.
BMY and Partner BNTX Present Data on PumitamigBMY and partner BioNTech (BNTX - Free Report) reported encouraging interim phase II results from the ROSETTA Lung-02 study evaluating pumitamig (BNT327/BMS-986545) plus chemotherapy as a first-line treatment for advanced non-small cell lung cancer (NSCLC) at the ASCO.
Pumitamig is an investigational bispecific immunomodulator, jointly developed by BNTX and BMY, designed to cooperatively bind to PD-L1 and VEGF-A.
The phase II part of the ROSETTA Lung-02 study evaluated pumitamig in two dose levels, in combination with chemotherapy.
The investigational PD-L1xVEGF-A bispecific immunomodulator pumitamig plus chemotherapy showed robust and consistent antitumor activity in first-line NSCLC at both evaluated dose levels, with higher confirmed objective response rates at the lower dose of 63.6% in the non-squamous and 72.7% in the squamous subtypes.
Pumitamig plus chemotherapy demonstrated a manageable safety profile with a low discontinuation rate.
BioNTech and BMY are pursuing an extensive development strategy for pumitamig across multiple NSCLC settings. In addition to the ongoing global ROSETTA Lung-02 study, which is currently recruiting for the phase III part of the study, two additional global phase III studies are actively enrolling, targeting both unresectable stage III disease and first-line PD-L1–high advanced NSCLC. The broad clinical program, coupled with ongoing combination studies involving antibody-drug conjugates and other novel therapies, highlights pumitamig’s potential to become a major oncology franchise and a significant long-term value driver for both companies.
BMY Advancing a Promising Pipeline to Drive GrowthWe note that BMY boasts a deep and promising pipeline. Key pipeline candidates with multi-billion-dollar potential are milvexian (Oral factor XIa inhibitor), admilparant (LPA1 antagonist), pumitamig (PD-L1 x VEGF-A bispecific antibody) and iberdomide & mezigdomide (oral CELMoD protein degraders).
The company’s targeted protein degradation platform — built over two decades — also includes investigational approaches such as ligand-directed degraders and degrader antibody conjugates. These programs aim to tackle disease-driving proteins that were previously considered difficult to target with traditional drugs.
The FDA has accepted a new drug application for iberdomide in combination with standard treatment (daratumumab and dexamethasone) for RRMM, granting Breakthrough Therapy Designation and Priority Review, with a target action date of Aug. 17, 2026.
The company, in partnership with Johnson & Johnson, is developing milvexian for atrial fibrillation (AF) and secondary stroke prevention (SSP).
Shares of the company have gained 6% year to date compared with the industry’s growth of 0.3%.
Image Source: Zacks Investment Research
Concurrent with the first-quarter results reported in April, BMY highlighted the growing depth and diversification of its pipeline, with several pivotal phase III readouts expected in the second half of 2026, including milvexian in AF and SSP, Cobenfy in Alzheimer's disease psychosis, and iberdomide PFS data. Positive outcomes from these programs could further de-risk the company's long-term growth outlook, expand its portfolio, and support its goal of launching more than 10 new drugs and 30 lifecycle expansion opportunities by the end of the decade.
Management also emphasized ongoing efforts to improve R&D productivity, streamline clinical development, and strengthen the early and mid-stage pipeline, positioning the company for sustained innovation and future revenue growth as its legacy portfolio continues to be adversely impacted by the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
BMY’s Zacks Rank & Key PicksBMY currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) and Immunocore (IMCR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Liquidia’s 2026 earnings per share have increased to $2.97 from $1.50. Over the same period, EPS estimates for 2027 have risen to $4.81 from $2.91. LQDA shares have gained 79.4% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.
Over the past 30 days, estimates for Immunocore’s 2026 loss per share have narrowed from a loss of 88 cents to earnings of 6 cents. Over the same period, earnings estimates for 2027 have increased to 87 cents per share from 24 cents per share. IMCR shares have lost 16.8% year to date.
Key Takeaways RCUS will supply casdatifan for new treatment arms in BMY's phase I/II ROSETTA RCC-208 study.RCUS sees HIF-2 alpha inhibition with PD-L1 and VEGF-A blockade as a TKI-free kidney cancer option.RCUS expects PEAK-1 enrollment completion and a first-line metastatic ccRCC phase III launch by 2026. Arcus Biosciences (RCUS - Free Report) announced a clinical trial collaboration and supply agreement with Bristol Myers Squibb (BMY - Free Report) to evaluate casdatifan in combination with PD L1/VEGF A bispecific immunomodulator.
This collaboration is aimed at developing a novel treatment regimen that delivers more sustained tumor control in kidney cancer, a cancer of high unmet medical need.
Casdatifan is an oral, once-daily small-molecule HIF-2α inhibitor designed to provide deep and durable pathway suppression.
More on RCUS-BMY CollaborationPer the terms of the agreement, clinical-stage, global biopharmaceutical company Arcus will provide casdatifan for evaluationin BMY’s phase I/II ROSETTA RCC-208 study.
This study evaluates pumitamig (BNT327/BMS986545), an investigational PD-L1/VEGF-A bispecific antibody, being jointly developed by BMY and partner BioNTech (BNTX - Free Report) , alone or in combination with other potential treatment options in advanced renal cell carcinoma (RCC).
Under the collaboration, two new treatment arms evaluating casdatifan-based combinations will be incorporated into the ROSETTA RCC-208 study. The agreement is non-exclusive, with both companies retaining full development and commercialization rights to their respective programs.
Arcus believes the combination of HIF-2α inhibition with PD-L1 and VEGF-A blockade could provide a promising tyrosine kinase inhibitor (TKI)-free treatment option for kidney cancer patients. The partnership supports the company’s broader strategy of establishing casdatifan as a foundational therapy across multiple lines of treatment for clear cell renal cell carcinoma (ccRCC).
Early clinical studies have demonstrated encouraging antitumor activity and a favorable safety profile, supporting casdatifan’s evaluation in combination regimens.
Arcus is currently studying the drug across first-line, second-line, and late-line treatment settings through its ARC-20 platform study. It is also enrolling patients in the phase III PEAK-1 study, which compares casdatifan plus cabozantinib against cabozantinib alone in immunotherapy-experienced metastatic ccRCC.
Arcus expects to complete patient enrollment in the PEAK-1 study and initiate a phase III study in first-line metastatic ccRCC by the end of 2026.
Taiho holds development and commercialization rights for casdatifan in Japan and select Asian markets outside China, while Arcus Biosciences retains exclusive rights to the therapy in all other global territories.
In 2025, BMY collaborated with BioNTech for the global co-development and co-commercialization of pumitamig across numerous solid tumor types.
BNTX and BMY are advancing pumitamig through an extensive clinical development program that includes more than 20 ongoing or planned studies evaluating the therapy as both a standalone treatment and in combination with other anticancer approaches across more than 10 solid tumor types.
Arcus Biosciences’ Pipeline ProgramsRCUS has advanced several investigational therapies into registrational-stage clinical trials, including casdatifan, a HIF-2α inhibitor for clear cell renal cell carcinoma, and quemliclustat, a small-molecule CD73 inhibitor for pancreatic cancer.
Shares of the company have gained 7.5% year to date against the industry's decline of 8.2%.
Image Source: Zacks Investment Research
RCUS had earlier collaborated with Gilead Sciences, Inc. (GILD - Free Report) to advance its pipeline.
However, in April 2026, Arcus announced that Gilead’s option rights under the companies’ 2020 collaboration agreement, as amended, will expire on July 14, 2026, after Gilead elected not to make the option continuation payment.
As a result, Gilead will no longer hold option rights to additional early-stage pipeline programs, including CCR6, CD89, and CD40L. However, the company will retain its existing time-limited options for several programs, including AB801, an investigational AXL inhibitor; AB598, an investigational anti-CD39 monoclonal antibody; AB102, an investigational MRGPRX2 antagonist; and an investigational TNF small-molecule inhibitor.
In March 2026, Arcus and AstraZeneca decided not to resume patient enrollment in eVOLVE-RCC02. This is a phase Ib/III study sponsored and managed by AstraZeneca that is evaluating casdatifan in combination with volrustomig, AstraZeneca’s investigational anti-PD-1/CTLA-4 bispecific antibody, for the treatment of first-line advanced or metastatic ccRCC.
Shares of Cenovus Energy (CVE - Free Report) have been strong performers lately, with the stock up 26.7% over the past month. The stock hit a new 52-week high of $31.68 in the previous session. Cenovus has gained 86.6% since the start of the year compared to the 32% gain for the Zacks Oils-Energy sector and the 68.1% return for the Zacks Oil and Gas - Integrated - Canadian industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Cenovus reported EPS of $0.61 versus consensus estimate of $0.56 while it missed the consensus revenue estimate by 2.75%.
For the current fiscal year, Cenovus is expected to post earnings of $3.01 per share on $37.4 in revenues. This represents a 95.45% change in EPS on a 5.19% change in revenues. For the next fiscal year, the company is expected to earn $2.76 per share on $38.04 in revenues. This represents a year-over-year change of -8.42% and 1.7%, respectively.
Valuation MetricsWhile Cenovus has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cenovus has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 11.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Cenovus currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cenovus fits the bill. Thus, it seems as though Cenovus shares could have a bit more room to run in the near term.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
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What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."
The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.
In order to determine the fair value of a company and its shares, institutional investors design valuation models that focus on earnings and earnings estimates. Because if you raise earnings estimates, it then creates a higher fair value for a company and its stock price.
With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.
Because it can take a long time for an institutional investor to build a position--sometimes weeks, if not months--retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.7%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Cenovus Energy (CVE - Free Report) , which was added to the Zacks Rank #1 list on April 21, 2026.
Calgary, Canada-based Cenovus Energy Inc. is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids (NGLs). Cenovus’ entire operation of oil and gas production is concentrated in Canada, within the provinces of Alberta and British Columbia. CVE supplies oil to the Gulf Coast of the United States through the Enbridge Flanagan South pipeline.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.88 to $3.01 per share. CVE boasts an average earnings surprise of 50.8%.
Earnings are expected to grow 95.5% for the current fiscal year, while revenue is projected to increase 5.2%.
CVE has been moving higher over the past four weeks as well, up 17.8% compared to the S&P 500's gain of 4.6%.
Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Cenovus Energy should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
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Key Takeaways Cenovus expects upstream production to exceed 1.1 MMBoe/d by 2028.CVE plans to increase oil sands output from Christina Lake, Foster Creek and Sunrise projects.Cenovus expects West White Rose to reach peak production of 45 Mbbls/d by 2028. Cenovus Energy Inc. (CVE - Free Report) is a Canadian energy company that develops, produces, refines, and markets crude oil, natural gas and petroleum products across North America and the Asia-Pacific region. With a diversified upstream portfolio spanning oil sands, offshore, thermal heavy oil and conventional assets, CVE is positioned to meet rising global hydrocarbon demand. The company projects total upstream production to grow from approximately 965 thousand barrels of oil equivalent per day (MBoe/d) in 2026 to more than 1.1 million barrels of oil equivalent per day (MMBoe/d) by 2028.
By 2028, Cenovus aims to significantly boost its oil sands output through several high-impact projects. Christina Lake North is expected to add about 40 thousand barrels per day (Mbbls/d) of production by 2028 through redevelopment wells and new steam generators. Foster Creek is projected to contribute additional output, while Sunrise production is expected to rise by 15-20 Mbbls/d between 2024 and 2028. In the Lloydminster region, Cenovus expects thermal and conventional heavy oil projects to add around 30 Mbbls/d combined by 2028.
The West White Rose offshore project is on track to achieve first production in 2026 and reach peak output of roughly 45 Mbbls/d by 2028. By merging offshore capabilities with its conventional and long-life oil sands assets, the company has built a balanced portfolio. This strategic mix positions the company well to support rising global hydrocarbon demand.
Can FANG & XOM Increase Output Through Diversified Portfolios?Diamondback Energy, Inc. (FANG - Free Report) is a leading Permian-focused independent oil and gas producer with 890,496 net acres across the Permian Basin, including 797,074 net acres in the Midland Basin and 93,422 net acres in the Delaware Basin. The company develops stacked resources in the Spraberry, Wolfcamp and Bone Spring formations using advanced horizontal drilling and high-intensity completion techniques. Supported by strong operational execution and efficiency gains, FANG raised its 2026 oil production outlook to more than 520 thousand barrels of oil per day (MBO/d) from the prior range of 500-510 MBO/d, while total production guidance has been raised to more than 972 MBoe/d from the prior range of 926-962 MBoe/d.
Exxon Mobil Corporation (XOM - Free Report) drives its growth through a geographically diversified portfolio anchored by the Permian Basin, offshore Guyana and its liquified natural gas (LNG) operations. In the first quarter of 2026, XOM achieved its first LNG production at Golden Pass Train 1, a milestone projected to boost U.S. LNG exports by 5% compared with 2025. ExxonMobil’s Permian production is on track to reach about 1.8 million barrels of oil equivalent (MMBoe/d) in 2026, paving the way for a 2.5 MMBoe/d long-term Permian production goal and 5.5 MMBoe/d total upstream output by 2030.
CVE’s Price Performance, Valuation & EstimatesCenovus shares have gained 120.4% over the past year compared with 97.3% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.4X. This is below the broader industry average of 7.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVE's first-quarter 2026 earnings has seen upward revisions over the past seven days. Meanwhile, estimates for second-quarter 2026 and full-year 2026 earnings have remained constant.
Image Source: Zacks Investment Research
CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cenovus Energy (CVE - Free Report) Calgary, Canada-based Cenovus Energy Inc. is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids (NGLs). Cenovus’ entire operation of oil and gas production is concentrated in Canada, within the provinces of Alberta and British Columbia. CVE supplies oil to the Gulf Coast of the United States through the Enbridge Flanagan South pipeline.
CVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CVE has a Growth Style Score of B, forecasting year-over-year earnings growth of 104.6% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.43 to $3.15 per share. CVE boasts an average earnings surprise of +50.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVE should be on investors' short list.
