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The retailer issues a conservative full-year adjusted earnings and sales forecast.

Academy Sports Stock Sinks After Earnings: Buy the Dip or Beware?DICK'S Sporting Goods NYSE: DKS reported a strong start to fiscal 2026, with executives highlighting broad-based momentum in the core DICK'S business and early signs of improvement at Foot Locker following its acquisition.

On the company’s first-quarter earnings call, Executive Chairman Ed Stack said the company is benefiting from what he described as a “real sports moment,” citing strong consumer engagement with sports, upcoming global events such as the 2026 World Cup and the 2028 Summer Olympics in Los Angeles, and the growing intersection of sports, lifestyle and culture.

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DICK’S Sporting Goods Could Be Ready for Another Breakout“This environment plays directly to our strengths, and DICK'S is leading from the front,” Stack said.

Core DICK'S Business Posts 6% Comparable Sales Growth President and Chief Executive Officer Lauren Hobart said comparable sales in the DICK'S business rose 6% in the quarter, driven by both higher average ticket and increased transactions. She said the growth was broad-based across footwear, apparel and hardlines, with strength in categories including team sports, licensed products, trading cards and golf.

5 Stocks Using Buybacks to Drive Serious Upside Into 2026Hobart said the company continues to see a healthy consumer across income demographics, with “no signs of trading down.” She also said DICK'S added 1.5 million new athletes to its database during the quarter.

“This was definitely not a result of a one-time factor,” Hobart said in response to an analyst question. “We saw broad-based strength across the entire portfolio.”

Chief Financial Officer Navdeep Gupta said consolidated net sales increased 62.7% to $5.16 billion, helped by a $1.79 billion contribution from the Foot Locker business and the 6% comp increase at DICK'S. Comparable sales in the DICK'S business reflected a 5.5% increase in average ticket and a 0.5% increase in transactions.

On a two-year basis, DICK'S business comps increased 10.5%, and on a three-year basis, they rose 15.8%, Gupta said.

Foot Locker Shows Early Improvement Management emphasized progress in the Foot Locker turnaround, particularly in North America and the U.S. Foot Locker banner. Stack said the global Foot Locker business delivered slightly positive comps and operating income in the quarter, along with merchandise margin improvement. It was the first quarter of positive comps for Foot Locker since the fourth quarter of 2024, he said.

Foot Locker’s pro forma comps increased 0.6% for the quarter, driven by a 1.4% increase in North America. The U.S. Foot Locker banner posted 6.4% comp growth.

Stack said the company has focused first on the U.S. Foot Locker banner because it is the largest and most critical part of the Foot Locker business. He said DICK'S has cleaned up Foot Locker’s inventory, repaired key vendor relationships, rebuilt management teams and begun remerchandising stores through its FastBreak initiative.

FastBreak stores, which feature a more focused footwear wall, improved storytelling and a reintroduced apparel assortment, delivered double-digit comps in the first quarter, Stack said. DICK'S expanded the format by about 90 stores during the quarter, bringing the total to about 100. The company plans to have approximately 250 FastBreak stores across Foot Locker, Kids Foot Locker and Champs globally by back-to-school.

“At its core, it's retail 101, and when you execute it with discipline, it works,” Stack said.

Stack said the back-to-school season will be the first period in which the current team had full control over Foot Locker’s buying decisions. He said shoppers should see better women’s product, improved basketball and running assortments, more apparel tied to footwear stories and better in-stock positions in certain accessories.

Margins, Earnings and Balance Sheet Consolidated non-GAAP gross profit was $1.73 billion, or 33.42% of net sales, down 328 basis points from a year earlier. Gupta said the decline was primarily due to the mix impact from Foot Locker.

Consolidated non-GAAP operating income was $378.4 million, or 7.33% of net sales, compared with $360.4 million, or 11.35% of net sales, a year earlier. The DICK'S business generated operating income of $361 million, or 10.69% of net sales, while Foot Locker produced operating income of $17.5 million, or 0.98% of net sales.

Non-GAAP earnings per diluted share were $2.90, compared with $3.37 last year. GAAP earnings per diluted share were $3.54, including $174 million of pre-tax litigation and other settlements, partially offset by $97 million of pre-tax Foot Locker acquisition-related costs.

DICK'S ended the quarter with about $1 billion in cash and cash equivalents and no borrowings on its $2 billion unsecured credit facility. Inventory totaled $5.42 billion, reflecting the addition of Foot Locker, while inventory in the DICK'S business rose 3%.

The company repurchased 719,000 shares for $141 million at an average price of $196.38 and paid $114 million in quarterly dividends.

Guidance Raised at Low End for Both Businesses DICK'S raised the low end of its full-year comparable sales outlook for both the DICK'S and Foot Locker businesses, while maintaining its consolidated non-GAAP earnings per diluted share forecast of $13.50 to $14.50.

DICK'S business comps: Now expected to rise 2.5% to 4%, compared with prior guidance of 2% to 4%. Foot Locker pro forma comps: Now expected to rise 1.5% to 3%, compared with prior guidance of 1% to 3%. Foot Locker operating income: Now expected between $110 million and $150 million, compared with prior guidance of $100 million to $150 million. Consolidated non-GAAP EPS: Still expected between $13.50 and $14.50. Net capital expenditures: Now expected to be approximately $1.4 billion, split roughly 70% for DICK'S and 30% for Foot Locker. Gupta said the company expects comps and operating income for Foot Locker to be weighted toward the back half of the year. For the DICK'S business, he said higher comps are expected in the first half, partly due to the timing of the World Cup, while operating margin pressure is expected to be greatest in the second quarter because of planned investments, including World Cup marketing and pre-opening expenses tied to House of Sport locations.

The company now expects a full-year consolidated effective tax rate of about 27%, roughly 150 basis points higher than its previous expectation. Gupta said that increase is expected to reduce non-GAAP EPS by about $0.25 for the year and is reflected in the updated outlook.

Store Concepts, Digital Investments and GameChanger Hobart said DICK'S continues to reposition its store portfolio through House of Sport and Field House formats. During the quarter, the company opened one House of Sport and two Field House locations and remains on track to open about 13 more House of Sport stores and 20 more Field House locations this year.

The company also recently opened a Fort Worth distribution center to support the Texas market and surrounding areas. Hobart said DICK'S is investing in digital capabilities, including the planned summer launch of Coach by DICK'S, an AI-powered digital agent designed to help athletes with product, training and service decisions.

Hobart also highlighted GameChanger, saying roughly 50% of all games covered on the platform in the first quarter were streamed live. She said more games were streamed on GameChanger in the last month alone than have been played in the entire history of Major League Baseball.

Management said promotional activity was not a major factor in the first quarter. Hobart said the company remains “surgical” in how it manages promotions and is not particularly concerned about the promotional environment.

About DICK'S Sporting Goods NYSE: DKSDICK'S Sporting Goods is a leading U.S.-based sporting goods retailer that sells a broad range of sports equipment, apparel, footwear and outdoor gear. The company operates an omnichannel business combining physical stores with digital sales, offering products for team sports, fitness, hunting and fishing, golf, and general active lifestyle categories. In addition to its flagship DICK'S stores, the company operates specialty formats such as Golf Galaxy and branded service offerings including team-sports sales and custom equipment solutions.

The company traces its roots to a single sporting goods outlet founded in 1948 and has since grown into a national retail chain serving customers across the United States.

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Dick's Sporting Goods (NYSE:DKS) reported first quarter results that topped Wall Street expectations on revenue and earnings, but its shares fell nearly 6% after the company lowered its full-year profit outlook. Dick's lowered its full-year GAAP earnings per share guidance to a range of $13.27 to $14.27, down from $13.70 to $14.70 previously.

Dick's Sporting Goods DKS experienced a significant drop in stock price following its Q1 earnings report, despite slightly exceeding earnings per share (EPS) and revenue expectations. Investors are concerned about margin pressures, ongoing costs related to Foot Locker integration, and the company's decision to maintain, rather than raise, its full-year EPS guidance.

Adjusted EPS reached $2.90, surpassing consensus by one cent. Revenue soared 62.7% year-over-year to $5.17 billion, driven by the Foot Locker acquisition and strong performance in the core DICK’S business. Management has raised the lower end of comparable sales guidance for both brands while keeping the FY27 EPS guidance at $13.50-$14.50. The core DICK’S business showed robust performance with a 6.0% growth in comparable sales, attributed to a 5.5% increase in average transaction value and a 0.5% rise in transactions. Strong consumer demand for premium footwear, apparel, basketball, golf, and trading cards supported this growth. Profitability was a concern, with gross margin contracting by 328 basis points year-over-year to 33.4%, primarily due to the lower-margin mix from Foot Locker. Non-GAAP operating margin decreased by 402 basis points to 7.3%. However, management remains optimistic about achieving long-term synergies, sourcing efficiencies, and media monetization to alleviate pressures. The quality of earnings presented a mixed picture. Although adjusted EPS slightly exceeded expectations, GAAP EPS increased to $3.54, largely due to litigation benefits offsetting around $97 million in Foot Locker acquisition and integration costs. Management has raised the anticipated integration-related charges to about $200 million for FY27. Foot Locker is showing promising early signs of turnaround, with pro forma comparable sales up 0.6% and North America comps increasing by 1.4%. Remodeled “Fast Break” stores reported double-digit comparable sales growth and improved merchandise margins. Management plans to expand this initiative to approximately 250 stores by the back-to-school season, enhancing assortments and vendor relationships. Guidance indicates cautious optimism. DKS raised the lower end of comparable sales guidance for both businesses and increased its adjusted operating income outlook, but maintained its EPS range due to ongoing macroeconomic uncertainties, integration costs, higher investment spending, and increased taxes.This quarter demonstrated strong underlying performance for DKS, as the core DICK’S brand maintained impressive organic growth with 6% comparable sales growth, despite the challenging retail environment. The results solidify the company’s leadership in athletic retail, bolstered by premium product trends and strong vendor relationships. However, the report also underscores the short-term financial challenges linked to integrating Foot Locker, particularly regarding gross margin and operating margin pressures. Encouraging early turnaround signs at Foot Locker, especially from remodeled stores, are promising. DKS's decision to raise the lower end of comparable sales guidance while keeping EPS targets suggests confidence in execution, though profitability recovery may be gradual amid integration costs and macroeconomic pressures.

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].

Key Takeaways DKS posted 6% comps growth as footwear, apparel and hardlines all contributed.DICK'S Sporting raised the low end of its full-year comps guidance to 2.5-4% and saw no trading down.Foot Locker's Fast Break remodels hit 100 stores; target 250 by back-to-school as comps turned positive. DICK’S Sporting Goods (DKS - Free Report) used its first-quarter 2026 earnings call to reinforce a familiar message: the core banner is still gaining share, and management believes that Foot Locker is now showing early proof that its turnaround plan is working.

That confidence showed up less in headline earnings, wherein adjusted earnings per share (EPS) of $2.90 missed the Zacks Consensus Estimate of $2.91 by 0.34%, than in guidance changes and management’s tone around demand, margins and store productivity. Notably, revenues of $5.17 billion beat the consensus estimate of $5.06 billion by 2%.

DKS Sees Strength Across Core BusinessPresident and CEO Lauren Hobart said the DICK’S Sporting business posted 6% comps growth, driven by gains in both average ticket and transactions. She described the quarter as broad-based, with footwear, apparel and hardlines all contributing.

Hobart also stressed that demand remained healthy across income cohorts, adding that the company did not see customers trading down. In Q&A, she tied that resilience to product newness, technical innovation and a more elevated store experience.

That backdrop gave management room to raise the low end of the full-year comps guidance for the DICK’S Sporting business to 2.5-4% from 2-4% previously.

DICK’S Sporting Keeps Its Outlook Constructive but MeasuredCFO Navdeep Gupta said that the outlook for full-year non-GAAP earnings per share stands at $13.50-$14.50, even after a higher projected tax rate reduced the annual outlook by $0.25.

The more notable shift was inside the guidance. DICK’S Sporting raised the low end of the comparable sales (comps) expectations for both the legacy business and Foot Locker, but left the upper ends unchanged, reflecting confidence in execution, alongside caution on the macro and geopolitical backdrop.

Hobart and Gupta both pointed to a year that remains back-half weighted for profit flow-through. The company expects the most pressure in the second quarter because of World Cup-related marketing, pre-opening expenses and other planned investments.

DKS Pushes Hard on the Foot Locker ResetExecutive chairman Ed Stack made Foot Locker the earnings call’s most forward-looking theme. He said that the acquired business returned to positive pro-forma comps and profitability in the quarter, with 0.6% comp growth overall and a 1.4% rise in North America.

Management’s clearest proof point was the Fast Break remodel program. Stack said that the company expanded the concept to about 100 stores globally in the first quarter, and those locations produced double-digit comps and a better merchandise margin.

The company plans to reach 250 Fast Break stores by the back-to-school season, while lifting Foot Locker’s full-year pro-forma comps outlook to 1.5-3%.

DICK’S Sporting Defends Near-Term Margin PressureQuarterly results showed why investors pressed on margins. The consolidated non-GAAP operating margin fell to 7.3% from 11.4% a year ago, whereas the adjusted EPS declined 14% to $2.90 as the Foot Locker deal diluted the share count and shifted the mix.

Gupta said that the consolidated gross-margin decline was mainly a mix issue from Foot Locker. Within the DICK’S Sporting business, he said a roughly 35-basis-point gross-margin decline reflected fuel costs, the opening of a distribution center and mix pressure from trading cards.

Even so, management maintained that the full-year gross margin should still expand, helped by better product access, stronger pricing execution, higher-margin vertical brands, and growth in media network and GameChanger revenue streams.

DKS Q&A Centers on Proof, Not PromiseAnalysts repeatedly tested whether the quarter’s strength was durable. A Morgan Stanley analyst asked whether the 6% DICK’S Sporting comps reflected temporary benefits, and Hobart answered that the performance was broad-based rather than one-time.

Questions on Foot Locker were more pointed. An Oppenheimer analyst pressed on what was driving better results before the new product fully arrives, and Stack said that cleaner presentation, sharper assortment edits and the return of apparel were already improving performance ahead of the back-to-school reset.

Goldman Sachs and Telsey analysts also focused on capital spending and Fast Break economics. Gupta said that the net capital expenditure is expected to be $1.4 billion, split roughly 70-30 between DICK’S Sporting and Foot Locker, with much of the Foot Locker spend tied to store investments.

DICK’S Sporting Leaves the Call in Expansion ModeThe closing tone of the call was notably assertive. Management framed sport as a multi-year demand tailwind and presented DICK’S Sporting as investing from a position of strength rather than reacting to a soft market.

That stance showed up across new House of Sport and Field House openings, supply-chain investment, GameChanger product expansion and the effort to reposition Foot Locker before the key back-to-school season.

The central takeaway from the call was not the marginal adjusted EPS miss. It was management’s conviction that the core business remains strong enough to fund investment, while Foot Locker moves from cleanup to operational recovery.

Zacks Signals for DKSDICK’S Sporting currently carries a Zacks Rank #3 (Hold), with a Value Score of C, a Growth Score of A, a Momentum Score of D and a VGM Score of B. A Rank #3 can still be held, and the score hierarchy still matters, with A and B grades viewed more favorably than lower grades. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In that context, DKS’s Growth Score of A and VGM Score of B point to solid growth characteristics and a favorable combined style profile, while the Value Score of C and the Momentum Score of D indicate a less compelling setup on valuation and timing. The Zacks Rank remains the primary signal, and it can change as earnings estimate revisions adjust after the quarter.

Ad spot features Lionel Messi, Lamine Yamal, Trinity Rodman, Patrick and Brittany Mahomes, Juanpa Zurita and Cobi Jones

, /PRNewswire/ -- Today, DICK'S Sporting Goods (NYSE: DKS) and adidas launched Where It All Kicks Off, a new collaborative campaign built to capture the fever pitch excitement surrounding FIFA World Cup 2026™ as the tournament arrives on U.S. soil.

Featuring adidas athletes Lionel Messi, Lamine Yamal, Trinity Rodman, Patrick and Brittany Mahomes, Juanpa Zurita and Cobi Jones, the campaign taps into the energy, style and momentum of soccer's biggest stage while positioning DICK'S as the starting point for all FIFA World Cup excitement and, of course, gear.

Where It All Kicks Off - 0:90

Where It All Kicks Off - Hero

Where It All Kicks Off - Messi

Where It All Kicks Off - Trinity

Where It All Kicks Off - Yamal

Where It All Kicks Off - Mahomes Produced by OBB and developed by Bolded, OBB's branded entertainment content studio, the spot opens inside a DICK'S House of Sport store. Each touch of an adidas product serves as a gateway into larger-than-life soccer moments that reflect the growing intersection of sport and culture surrounding the game. Cobi Jones acts as a guiding force, subtly setting in motion the moments that unfold as athletes interact with cleats, jerseys and apparel. First, Juanpa Zurita is transported from DICK'S House of Cleats to a rooftop game with Lamine Yamal. Trinity Rodman grabs adidas' throwback U.S. Denim Jersey and then steps inside a soccer video game. Patrick and Brittany Mahomes join the action after checking out adidas hoodies, showcasing soccer's expanding reach. And finally, a young fan laces up the same adidas F50 Messi El Último Tango cleats as Lionel Messi before finding himself in the midst of a match with the legendary player.

"Few events capture the excitement and passion of sport like the World Cup," said Melissa Christian, VP of Brand Building at DICK'S. "With adidas' deep roots and long-standing connection to the tournament, this partnership is a natural way to bring that energy to athletes everywhere and highlight how DICK'S helps them step into their own World Cup moment."

Where It All Kicks Off launched today on social and will make its broadcast debut on June 11 as the first FIFA World Cup 2026™ match kicks off.

"The FIFA World Cup coming to our backyard this summer is a once-in-a-generation moment for sport in North America, and we wanted to partner with DICK'S Sporting Goods to meet that energy with something truly special and reflective of the moment," said Chris Murphy, Senior Vice President, Brand Marketing at adidas North America. "Bringing together past and current icons like Cobi Jones, Messi and Mahomes, paired with the future of the sport, including Lamine, Trinity and beyond, will inspire the next generation of athletes to watch, celebrate and play."

"We wanted to create a spot that captures the feeling of what the World Cup represents - possibility, imagination and the way the game can transport people beyond the sidelines," said Michael D. Ratner, Founder and CEO of OBB Media. "By blending iconic athletes, cultural voices and immersive storytelling, we set out to turn everyday moments inside a DICK'S store into larger-than-life experiences that reflect the excitement building around the tournament. At OBB, we want to show up at the center of culture and entertainment. This campaign with adidas and DICK'S celebrates the magic of the sport on the biggest global stage and inspires the next generation of fans to see where the game can take them."

adidas soccer product and team gear are available in DICK'S stores nationwide, online at DICKS.com and on the DICK'S mobile app. DICK'S and adidas are also bringing the excitement of the World Cup to life through elevated in-store experiences and consumer activations designed to engage athletes and fans across the country. From premium store environments, national ticket sweepstakes and on-the-ground events in key cities, these efforts extend the energy to the tournament beyond the ad and into communities nationwide.

In addition, The DICK'S Sporting Goods Foundation is partnering with DonorsChoose to expand access to the game at the grassroots level, funding up to $250,000 in youth soccer projects nationwide. Through an open call for historically underfunded schools, the initiative aims to ensure more young athletes have the resources they need to play, with DonorsChoose fulfilling projects on a first-come basis until the funds are fully allocated. Beginning June 11, teachers at eligible schools will be able to submit funding requests for boys' and girls' soccer programs. Visit here for more information and to apply for funding.

About DICK'S Sporting Goods, Inc.
DICK'S Sporting Goods creates confidence and excitement by inspiring, supporting and personally equipping all athletes to achieve their dreams. Founded in 1948 and headquartered in Pittsburgh, DICK'S is a leading omni-channel retailer and an iconic brand in sport and culture. Its banners include DICK'S Sporting Goods, Golf Galaxy, Public Lands and Going Going Gone! in addition to the experiential retail concepts DICK'S House of Sport and Golf Galaxy Performance Center. As owner and operator of the Foot Locker Business, including Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos, DICK'S serves the global sneaker community across North America, Europe, Asia and Australia, plus a licensed store presence in Europe, the Middle East and Asia. DICK'S also owns and operates GameChanger, a youth sports mobile platform for live streaming, scheduling, communications and scorekeeping.

Driven by its belief that sports have the power to change lives, DICK'S has been a longtime champion for youth sports and, together with its Foundation, has donated millions of dollars to support under-resourced teams and athletes through the Sports Matter program and other community-based initiatives. Additional information about DICK'S business, corporate giving and employment opportunities can be found on dicks.com, investors.dicks.com, sportsmatter.org, dickssportinggoods.jobs and on Instagram, TikTok, Facebook and X.

About adidas
adidas is a global leader in the sporting goods industry. Headquartered in Herzogenaurach/Germany, the company employs more than 62,000 people across the globe and generated sales of €24.8billion in 2025. For more information, please visit www.adidas-Group.com.

About OBB
OBB is the award-winning next-gen entertainment studio driving culture through innovative storytelling across film, television, digital, branded content, live experiences, ventures, and more. Founded by entrepreneur and filmmaker Michael D. Ratner, OBB has built a global audience of billions. By marrying zeitgeist-defining creative work across traditional and new media, with the capabilities of a vertically integrated production studio, defining how a new generation of audiences consume content and engage with brands. OBB's branded content studio, Bolded, specializes in creating culture-driven campaigns for the world's biggest brands and talent. Led by Ratner, co-founder Scott Ratner and a talented team of storytellers, the company has offices in both West Hollywood, CA and New York City and also operates OBB Studios, a 15,000+ square-foot, state-of-the-art production and event facility in Hollywood, CA. For more information, visit the company website at www.obbmedia.com or follow @obb on Instagram.

Media Contact
DICK'S Sporting Goods – [email protected]

Category: Company

SOURCE DICK'S Sporting Goods

CARLSBAD, Calif., May 22, 2026 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today announced it will release its fourth quarter and fiscal year 2026 financial results on Thursday, May 28, 2026 after market close. Results will be provided in a letter to shareholders, which will be posted to the Investor Relations section of the Company’s website.

Viasat will also host a conference call and webcast on Thursday, May 28, 2026 at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time to discuss results.

To participate on the live conference call, please dial (800) 715-9871 (toll-free in the U.S. and Canada) or (646) 307-1963 (international), and reference conference ID 2206055.

A live webcast will be available in Viasat’s Investor Relations section of Viasat’s website. A replay of the webcast will be archived immediately following the conference call.

About Viasat 
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on LinkedIn, X, Instagram, Facebook, Bluesky, Threads, and YouTube.

Copyright © 2026 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered trademarks in the U.S. and in other countries of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners. 

Viasat, Inc. Contacts
Daniel Bleier / Scott Goryl, Corporate Communications, [email protected]
Lisa Curran / Peter Lopez, Investor Relations, +1 (760) 476-2633, [email protected]

CARLSBAD, Calif., May 28, 2026 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today published its fourth quarter and fiscal year 2026 financial results. A letter to shareholders and accompanying webcast slides are available on the Investor Relations section of the company's website.

Conference Call Details
As previously announced, Management will host a conference call to discuss the results today, Thursday, May 28, 2026 at 2:30 p.m. PT (5:30 p.m. ET).

Access Information:

Dial-in: (800) 715-9871 (U.S./Canada toll-free) or (646) 307-1963 (international)Conference ID: 2206055Live webcast: Available on Viasat's Investor Relations website.
A replay of the call will be archived on the Investor Relations site.

About Viasat 
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on LinkedIn, X, Instagram, Facebook, Bluesky, Threads, and YouTube.

Copyright © 2026 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered trademarks in the U.S. and in other countries of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners. 

Viasat, Inc. Contacts
Scott Goryl/Daniel Bleier, Corporate Communications, [email protected]  
Lisa Curran/Peter Lopez, Investor Relations, [email protected]

ViaSat (VSAT - Free Report) reported $1.17 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.1%. EPS of -$0.02 for the same period compares to -$0.02 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.2 billion, representing a surprise of -2.31%. The company delivered an EPS surprise of -107.9%, with the consensus EPS estimate being $0.25.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how ViaSat performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Product revenues: $367.56 million versus $378.15 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.Revenue- Service revenues: $803.73 million versus $819.19 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.Revenue- Communication Services: $810.28 million compared to the $816.22 million average estimate based on three analysts. The reported number represents a change of -1.8% year over year.Revenue- Defense and Advanced Technologies: $361.01 million versus the three-analyst average estimate of $392.14 million. The reported number represents a year-over-year change of +12.1%.Revenue- Communication services- Maritime services: $112.72 million versus $112.07 million estimated by two analysts on average.Revenue- Communication services- Fixed services and other services: $132.7 million versus the two-analyst average estimate of $141.27 million.Revenue- Communication services- Total services: $744.63 million versus the two-analyst average estimate of $757.23 million.Revenue- Communication services- Total products: $65.65 million versus the two-analyst average estimate of $62.75 million.Revenue- Defense and advanced technologies- Total services: $59.09 million versus the two-analyst average estimate of $58.55 million.Revenue- Communication services- Government satcom services: $205.11 million versus $202.97 million estimated by two analysts on average.Revenue- Defense and advanced technologies- Space and mission systems products: $87.17 million versus $96.48 million estimated by two analysts on average.Revenue- Defense and advanced technologies- Tactical networking products: $93.05 million versus the two-analyst average estimate of $99.32 million.View all Key Company Metrics for ViaSat here>>>

Shares of ViaSat have returned +44.4% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways VSAT's Q4 FY26 revenues rose to $1.17B but missed the $1.2B consensus estimate.VSAT swung to $58.8M net income, but a $3.2M non-GAAP net loss missed by 27 cents.VSAT's backlog rose 15% to $4.07B, with FY27 anticipating a mid-single-digit revenue growth. Viasat, Inc. (VSAT - Free Report) reported relatively lackluster fourth-quarter fiscal 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.

The company’s year-over-year revenue growth was driven by higher demand for satellite broadband and communication services, expanding government and defense contracts, and continued investments in advanced satellite and direct-to-device connectivity solutions. However, higher operating costs and ongoing investments in satellite infrastructure hurt its bottom line.

Net IncomeViasat reported a net income of $58.8 million, or 41 cents per share, against a net loss of $246.1 million, or a loss of $1.89 per share, in the prior-year quarter. The growth was primarily due to lower selling, general and administrative expenses and higher other income during the quarter.

Excluding non-recurring items, Viasat reported a non-GAAP net loss of $3.2 million, or a loss of 2 cents per share, compared to a net loss of $3 million, or a loss of 2 cents per share, in the prior-year period. The bottom line missed the Zacks Consensus Estimate by 27 cents.

For 2026, the company reported a net loss of $34.1 million or a loss of 25 cents per share compared with a net loss of $575 million or a loss of $4.48 per share in 2025. Non-GAAP net income for 2026 was $143.3 million or $1.03 per share compared with $21.1 million or 16 cents per share in 2025.

RevenuesRevenues rose to $1.17 billion, up from $1.15 billion. The figure missed the consensus estimate of $1.2 billion. Product revenues were $367.6 million, up from $349.7 million in the year-ago quarter. Net sales from Service increased to $803.7 million from $797.4 million a year ago. For 2026, revenues increased to $4.64 billion from $4.52 billion in 2025.

Revenues from the Communication Services segment were $810.3 million, down from $825 million in the prior-year quarter. The segment’s adjusted EBITDA decreased to $287.3 million from $306.2 million.

Revenues from the Defense and Advanced Technologies (DAT) segment were $361 million, up 12% year over year. The growth is primarily driven by strong demand for encryption devices, next-generation cybersecurity and defense programs, and large antenna production for space-based Earth Observation and intelligence, Surveillance, and Reconnaissance missions. Adjusted EBITDA increased to $82.5 million from $68.6 million in the year-ago quarter.

Other DetailsIn the March quarter, Viasat reported an operating loss of $0.62 million compared to an operating loss of $153.8 million in the prior-year quarter. Adjusted EBITDA was $369.9 million, down from $374.8 million in the year-ago quarter. The net contract awards increased to $1.28 billion from $1.17 billion a year ago, while the backlog increased 15% year over year to $4.07 billion.

Cash Flow & LiquidityDuring the fourth quarter of fiscal 2026, Viasat generated an operating cash flow of $322.3 million compared with $298.4 million in the prior-year period. For 2026, the company generated $1.17 billion of cash from operating activities (excluding $420 million Ligado lump sum payment) compared with $908.2 million in 2025. As of March 31, 2026, the company had $1.75 billion in cash and cash equivalents, with a net debt of $4.84 billion compared with respective tallies of $1.61 billion and $5.59 billion a year ago.

OutlookFor fiscal 2027, management expects mid-single-digit revenue growth and slightly flat to up adjusted EBITDA year over year. Viasat anticipates the Communication Services segment’s low single-digit year-over-year revenue performance, due to continued growth in aviation services, offset by a lower rate of decline in FS&O. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong growth in information security and cyber defense, as well as space and mission systems and tactical networking. Capital expenditure is forecasted to be between $950 million and $1 billion (includes approximately $325 million for Inmarsat-related capital expenditures). The company’s operating cash flow is expected to be flat year over year, and the free cash flow is anticipated to be approximately $180 million (excludes the benefit of the Ligado lump sum payments, as they are non-recurring).

VSAT’s Zacks RankViasat currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderSilicon Motion Technology Corporation (SIMO - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 20.61%. Silicon Motion is benefiting from rising demand for NAND flash controllers used in smartphones, PCs, and data center storage devices. The growing adoption of AI applications and high-capacity SSDs is also expected to support demand for its advanced storage solutions and long-term growth prospects.

Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 (Buy) at present. It delivered an earnings surprise of 3.85% in the last reported quarter.

The company is experiencing strong momentum from growing demand for AI data center infrastructure, cloud networking equipment, and advanced hardware solutions. Its expanding hyperscaler customer base and focus on high-performance computing are likely to drive long-term growth.

Monolithic Power Systems, Inc. (MPWR - Free Report) carries a Zacks Rank #2 at present. It delivered an earnings surprise of 4.29% in the last reported quarter.

Monolithic Power continues to gain from strong demand for power management solutions across AI data centers, automotive, industrial, and cloud computing markets. Its expanding product portfolio, growing adoption of high-performance power chips, and focus on innovation support steady growth and strengthen its long-term market position.

Viasat (VSAT 3.54%) stock moved lower in Friday's daily session following the release of the company's latest quarterly report and pullbacks in the space-tech sector connected to the explosion of Blue Origin's attempted rocket launch. Viasat's share price ended the day down 7%, and shares had been off as much as 12.9% earlier in trading.

After the market closed yesterday, Viasat published results for the fourth quarter of its 2026 fiscal year -- which ended March 31. The company posted an unexpected loss in the period, and sales also came in below Wall Street's forecast.

Image source: Getty Images.

Investors weren't happy with Viasat's fiscal Q4 results With its fiscal Q4 report, Viasat announced a non-GAAP (adjusted) loss of $0.02 per share on sales of $1.17 billion. The average Wall Street analyst estimate had actually called for the business to post an adjusted profit of $0.32 per share in the period, and revenue also fell $30 million short of the average target. Despite some strong demand indicators in the space-tech and satellite industries, Viasat's fiscal Q4 sales and forward guidance didn't show the level of strong demand ramp investors were hoping for.

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Recent rocket news and Viasat's guidance also weighed on the stock A rocket launch conducted by Jeff Bezos' Blue Origin company exploded on the launch pad yesterday, and the development has caused some valuation pullbacks across the space-tech industry. The unfortunate launch outcome may have made investors even more cautious when it came to Viasat's forward guidance.

The company says that it expects mid-single-digit revenue growth for the 2027 fiscal year. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to come in somewhere between flat and up slightly on an annual basis. While space tech stocks have generally seen bullish valuation tailwinds recently, Viasat could continue to be volatile in the near term.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Viasat (VSAT 3.54%) stock, the satellite communications company, tumbled 11.9% through 12:35 p.m. ET Monday. That's the bad news.

The good news is that there's no obvious catalyst for the sell-off -- the opposite, actually.

Image source: Getty Images.

Lockheed Martin picks Viasat Viasat announced this morning that Lockheed Martin (LMT 1.56%) has subcontracted Viasat to provide high-bandwidth Hybrid SATCOM Approach technology for two National Oceanic and Atmospheric Administration (NOAA) C-130J Hercules "Hurricane Hunter" aircraft that Lockheed is building. This will allow the airplanes to communicate with satellites via Viasat's Ku/Ka broadband antenna.

Furthermore, "additional" aircraft may be required beyond the first two, meaning Viasat could get even more work from Lockheed down the road.

No value was stated for the initial subcontract, nor for the optional work that might follow, making it difficult to gauge precisely how much this contract moves the needle for Viasat stock.

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Needham picks Viasat, too Separately, Needham analyst Ryan Koontz raised his price target on Viasat stock this morning to $90 per share, implying a 25% gain over the next 12 months.

As StreetInsider.com reports, Koontz emphasized Viasat's spectrum assets as key to his placing such high value on the stock (should Viasat decide to sell them). Additionally, Koontz highlighted Viasat's defense business and its "pending global JV Equatys" as growth drivers. The latter refers to a plan for Viasat to partner with a company called "Space42" in the United Arab Emirates, to offer 5G cell service and direct-to-device (D2D -- more commonly known as direct-to-cell or DTC) connectivity from space.

That's the bill case for Viasat, at least. And the bear?

Viasat has lost money for six straight years, and most analysts see it continuing to lose money for at least the next four. That doesn't seem to worry Needham -- but it does worry me!

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

CARLSBAD, Calif., June 11, 2026 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today announced it was awarded a prime contract by the U.S. Space Force’s (USSF) Space Systems Command (SSC) to build, launch and deliver the first of a proliferated fleet of small, maneuverable geosynchronous Earth orbit (GEO) satellites under the Protected Tactical SATCOM-Global (PTS-G) program. The new Swarm 1 Delivery Order contract builds on Viasat’s completion of the Delivery Order 1 (DO1) phase awarded in 2025, where the company successfully matured a system design for a resilient, low size, weight and power (SWaP) GEO satellite and associated ground architecture to dynamically support key hot spot service areas. The proposed satellite design and operational concept illustrates how Viasat is applying low cost, high performance dual-use technology to provide resilient connectivity for an increasingly contested tactical communications environment.

The PTS-G program, which has an Indefinite Delivery Indefinite Quantity (IDIQ) ceiling value of $4B across program awardees, is a cornerstone of the USSF’s strategy to use commercial baseline designs to deploy a proliferated constellation of agile GEO satellites to deliver secure, resilient, anti-jam communications and improve operational flexibility for warfighters worldwide. This prime contract reinforces Viasat’s unique position as both an end-to-end satellite system manufacturer and operator for the USSF across a broad range of frequencies and expands its role as a partner for U.S. and global allies seeking advanced, dual-use space communication systems.

Under this multi-year development award, Viasat’s Space and Mission Systems (SMS) team will produce and deliver a dual-band X/Ka-band mini-GEO, maneuverable satellite, and provide ground stations and operations support. This Swarm 1 Delivery Order award also includes five years of operations and sustainment services for the satellite, inclusive of tracking, telemetry, and command (TT&C), satellite and network operations, and cybersecurity requirements.

Viasat's PTS-G mini-GEO satellite architecture will leverage cutting-edge technology already developed for the ViaSat-3 fleet, allowing for rapid, cost-effective deployment of high-performance and resilient satellite systems that adapt to evolving USSF mission requirements.

“Viasat is pleased to continue our partnership with the U.S. Space Force as the PTS-G program moves into the production phase,” said Craig Miller, President, Viasat Government. “This production award recognizes Viasat’s technical and operational expertise designing and rapidly delivering resilient, and high-performance dual-use satellite solutions in a multi-orbit environment, as well as our deep understanding of USSF mission needs and how to effectively deliver secure communications for DoW and partner missions. We are excited to partner with the USSF on this foundational work supporting next-generation government space operations, and we look forward to accelerating the Space Force’s vision for employing scalable, dual-use capabilities to create a more agile, cost-effective, and survivable SATCOM architecture.”

PTS‑G is part of a broader transformation in how the USSF acquires and deploys satellite communications capabilities—emphasizing speed, competition, and commercial technology integration to meet evolving threats. This transformation includes the USSF objective to deploy maneuverable GEO satellites, significantly improving the resilience and agility of military communications.

John Reeves, Vice President of Space and Mission Systems, Viasat Government, said: “Our team is motivated to continue this critical work supporting the USSF and DoW under the PTS-G program, and we are eager to transition our innovative design into production and delivery of a small, maneuverable GEO capability to support dynamic mission operations. Our flexible dual-band X/Ka-band satellite is designed to enable critical DoW operations and mission outcomes – supporting global connectivity, increasing resilience and improving warfighters’ ability to combat emerging threats.”

The Viasat SMS team is part of the company’s Defense and Advanced Technologies segment. Viasat’s production and delivery of the dual-band satellite system will support meeting initial operating capability no earlier than 2029.

About Viasat 
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on LinkedIn, X, Instagram, Facebook, Bluesky, Threads, and YouTube. 

Copyright © 2026 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered trademarks in the U.S. and in other countries of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

Viasat, Inc. Contacts
Dan Bleier, Public Relations, Corporate and Government, +1 (202) 383-5074, [email protected]
Lisa Curran/Pete Lopez, Investor Relations, +1 (760) 476-2633, [email protected]

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to Viasat’s PTS-G program Delivery Order 2 award, including the anticipated production, launch, delivery and performance of the Viasat dual-band X/Ka-band satellite; future operations and sustainment services for the satellite; and Viasat’s receipt of any future manufacturing or other awards related to the program. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; our ability to successfully develop, introduce and sell new technologies, products and services; increased competition; the effect of adverse regulatory changes (including changes affecting spectrum availability or permitted uses) on our ability to sell or deploy our products and services; changes in the way others use spectrum; our inability to access additional spectrum, use spectrum for additional purposes, and/or operate satellites at additional orbital locations; competing uses of the same spectrum or orbital locations that we utilize or seek to utilize; and introduction of new technologies and other factors affecting the communications and defense industries generally. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.

Viasat VSAT shares climbed on Thursday after the satellite communications company announced it had secured a prime contract from the US Space Force to build and launch satellites for the Protected Tactical SATCOM-Global program.

The stock rose about 8.1% to $66.48 during the session. Viasat shares have more than doubled this year.

The contract moves Viasat’s mini-GEO dual X/Ka-band satellite system into production for the Space Systems Command.

Under the agreement, the company will build, launch and deliver the first satellite in a planned fleet of small, maneuverable geosynchronous Earth orbit satellites designed for military communications.

The award is part of the Protected Tactical SATCOM-Global, or PTS-G, program, which has an Indefinite Delivery Indefinite Quantity ceiling value of $4 billion across all program awardees.

The new contract follows Viasat’s completion of the Delivery Order 1 phase awarded in 2025, during which the company developed a system design for a low size, weight, and power GEO satellite and associated ground architecture.

Under the multi-year Swarm 1 Delivery Order, Viasat’s Space and Mission Systems team will provide more than just the satellite itself. The contract also includes ground stations, operations support, and five years of sustainment services.

Those services cover tracking, telemetry, command, satellite, and network operations, and cybersecurity requirements.

Viasat said the satellite architecture will leverage technology developed for its ViaSat-3 fleet.

The company expects production and delivery of the dual-band X/Ka-band system to support initial operating capability no earlier than 2029.

The PTS-G initiative is part of the Space Force’s broader effort to deploy a proliferated constellation of agile GEO satellites capable of providing secure, anti-jam communications.

The contract announcement helped reinforce a more constructive view among analysts and investors regarding Viasat’s long-term growth prospects.

Investors see the extended government partnership as a source of recurring revenue and improved visibility, particularly given the multi-year nature of the Swarm 1 program and its associated operations support.

The market reaction suggests traders are reassessing Viasat’s position in defense and space communications, areas that have become increasingly important as governments expand investments in resilient satellite networks.

While the company did not disclose the specific value of the Swarm 1 Delivery Order, the broader PTS-G program’s $4 billion ceiling highlights the scale of the opportunity available to participating contractors.

Viasat has historically been known for broadband and communications services, but the latest award underscores its growing role in military satellite infrastructure.

The company’s ability to transition from the earlier design phase into full production was viewed as an important milestone, signaling progress toward deployment and long-term operational support.

As defense-related space spending continues to rise, investors will likely watch whether Viasat can secure additional orders under the PTS-G framework and convert its growing government backlog into sustained revenue growth over the coming years.

Viasat Inc. (NASDAQ:VSAT) shares are in focus Friday, a day after surging 18.2% following a landmark U.S. Space Force contract that moves the company from satellite design into full production.

Viasat stock is building positive momentum. Why is VSAT stock trading higher? The ContractWhat Viasat Is BuildingViasat will produce a dual-band X/Ka-band mini-GEO maneuverable satellite, along with ground stations and five years of operations support. The satellite is designed to maintain reliable military communications in contested environments where adversaries may attempt to jam or spoof U.S. military satellites. The broader PTS-G program has a ceiling value of $4 billion across all participating contractors.

Viasat Shares Edge HigherVSAT Price Action: At the time of publication, Viasat shares are trading 2.72% higher at $74.69, according to data from Benzinga Pro.

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May 21, 2026 09:08 ET  | Source: Northrop Grumman Corporation

FALLS CHURCH, Va., May 21, 2026 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE: NOC) will participate in Bernstein’s 42nd Annual Strategic Decisions Conference on Thursday, May 28. Kathy Warden, chair, chief executive officer and president, will present beginning at 10:00 a.m. Eastern time. The presentation will be webcast live at http://investor.northropgrumman.com.

Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.

Note: Statements to be made at the conference contain or may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “anticipate,” “intend,” “may,” “could,” “should,” “plan,” “strategy,” “project,” “forecast,” “achieve,” “believe,” “estimate,” “guidance,” “outlook,” “trends,” “goals,” “confident,” “on track” and similar expressions generally identify these forward-looking statements. These forward-looking statements speak only as of the date when made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements after the date of the conference, except as required by applicable law. Forward-looking statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. A discussion of these risks and uncertainties is contained in the Company’s filings with the Securities and Exchange Commission.

Contact: News Bureau
[email protected]

Adam Barr (Investors)
[email protected]

Northrop Grumman, Home Depot, and McCormick & Company offer attractive risk/reward after significant underperformance versus the AI-driven market. NOC benefits from defense spending tailwinds, a robust order book, and a 1.7% yield, trading at 21x earnings with high-single-digit EPS growth expected. HD trades below its historical average P/E, maintains resilient guidance, and offers a 3.1% yield, with upside potential as housing stabilizes.

Northrop Grumman Corporation (NOC) Bernstein 42nd Annual Strategic Decisions Conference May 28, 2026 10:00 AM EDT

Company Participants

Kathy Warden - Chair, CEO & President

Conference Call Participants

Douglas Harned - Bernstein Institutional Services LLC, Research Division

Presentation

Douglas Harned
Bernstein Institutional Services LLC, Research Division

Okay. Good morning. I'm Doug Harned, Bernstein's Global aerospace and defense analyst. I'm thrilled to have back with us, again, Kathy Warden, Chairman and CEO of Northrop Grumman, and we're going to go sort of straight into Q&A here.

Kathy Warden
Chair, CEO & President

Great. Thanks, Doug. It's great to be back with you. Just before we get started, I do want to remind everyone that I may make forward-looking statements, and those statements have inherent risks. Those risks are outlined in our SEC filings, which you can find on the Northrop Grumman website.

And Doug, I would just say a lot has happened since I was here with you on this stage a year ago. We are certainly living in a dynamic and complex environment in the national security space that has led to an increased demand both from the United States and our allies for the kinds of capabilities that Northrop Grumman provides, and we've seen that result in robust backlog growth. We are projecting mid-single-digit sales this year with acceleration into next. And we have really intentionally focused on building with speed and laying in capacity necessary to produce at scale.

This is what we are hearing from our customers. We are being responsive to that proactively. And you will see that we continue to invest in our business to position ourselves for that growth. We have a lot of opportunities. I'm sure your questions will lead us into discussions about what those opportunities are. And we hope today to provide some clarity also

In just a few weeks, the SpaceX IPO will arrive. Space investors are excited, with shares of popular names such as AST SpaceMobile and Rocket Lab up 43% and 65%, respectively, this month. Even Elon Musk's car company, Tesla, seems to be drawing on the enthusiasm surrounding SpaceX, gaining 11.5% so far in May.

Such dramatic share price gains have made it harder than ever to find bargains among space stocks, however -- among U.S. space stocks, at least. But what if we widen our telescopic lens just a bit and look internationally? Might it still be possible to find cheap space stock... abroad?

Image source: Getty Images.

Introducing Astroscale and SKY Perfect JSAT This question occurred to me last week after receiving a press release from tiny Japanese space company Astroscale, which is apparently teaming up with an even larger Japanese space company called SKY Perfect JSAT to provide so-called "on-orbit services."

According to data from S&P Global Market Intelligence, Astroscale is the smaller of the two companies, with a market capitalization of $2 billion and annual sales under $34 million. SKY Perfect JSAT, by comparison, is a relative giant, weighing in at $7.6 billion in market cap and boasting more than $800 million in annual sales.

Both companies are publicly traded on the Tokyo Stock Exchange. The largest satellite operator in Asia, with 17 geostationary (GEO) spacecraft in orbit, SKY Perfect JSAT is the more established business, providing satellite-based pay TV and satellite communications services. (It's similar to a combination of EchoStar and Starlink here in the U.S.)

Astroscale, by contrast, is much smaller. Very much a start-up in the space industry, Astroscale wants to specialize in "on-orbit services," including repairing, refueling, and eventually disposing of old satellites, as well as orbital debris removal.

And if these sound like exactly the kinds of services that might interest a satellite constellation operator like SKY Perfect JSAT... well, SKY Perfect thinks so, too.

Astroscale + SKY Perfect JSAT = what? According to last week's press release, Astroscale and SKY Perfect will form a "strategic partnership" cemented by SKY Perfect taking an equity stake in Astroscale. The press release didn't discuss the size of the investment, but a subsequent news story on satnews.com did: SKY Perfect, it turns out, will be investing 800 million yen ($5 million).

That's not a huge investment. Indeed, in the context of a funding round totaling 30.6 billion yen ($192.2 million), SKY Perfect's investment looks downright tiny. But if making this small investment helps SKY Perfect get a local company off the ground and into the business of extending the lifespan of its own satellites -- each of which can cost hundreds of millions of dollars to build and launch -- this partnership could pay big dividends.

Astroscale versus the competition But there's no time to waste.

Back here in the U.S., multiple space companies have already targeted the nascent on-orbit services market, forcing Astroscale to play catch-up. The most recent entrant was privately held Blue Origin, which in March unveiled a Blue Ring space tug capable of servicing not only GEO satellites but even traveling between planets. Also in the race is up-and-coming rocket company Firefly Aerospace (FLY 18.35%), which plans to offer "Elytra" space tugs in three different sizes.

Already in the market are Northrop Grumman (NOC 0.61%), which has flown at least two commercial on-orbit missions with its Mission Extension Vehicle (MEV) and has an upgraded version called the Mission Robotic vehicle in the works; and also Rocket Lab with its smaller Photon "kick-stage" vehicle, which also serves as a space tug for smaller satellites.

Can Astroscale compete successfully with such an array of rivals? Astroscale is not currently profitable; it's burning $96 million in cash, and analysts polled by S&P Global think it will be 2029 before the company turns profitable -- and 2030 before it stops burning cash.

Maybe financial backing from SKY Perfect will suffice to see the company through. But I have to admit that, based on the numbers I see today, I'm not optimistic.

FN Media Group Presents Oilprice.com Market Commentary

, /PRNewswire/ -- As the Pentagon's 2027 ban on Chinese-origin rare earth materials moves closer, REalloys (ALOY) is locking down exclusive control of the biggest heavy rare earth metallization systems outside of China. The company says its $20.6 million investment into the Saskatchewan Research Council's (SRC) rare earth processing facility in Saskatoon secures exclusive preferred rights to up to 80% of expanded production capacity — including commercial-scale NdPr, dysprosium, and terbium output that "no other Western company has secured at this scale," according to REalloys Chairman Stephen duMont. Companies mentioned in today's commentary includes: Realloys Inc. (ALOY), Lockheed Martin (NYSE: LMT), RTX Corporation (NYSE: RTX), Boeing (NYSE: BA), Northrop Grumman Corporation (NYSE: NOC), General Dynamics Corporation (NYSE: GD).

Engineering is already underway for the REalloys-funded heavy rare earth metallization facility in Saskatoon, with equipment procurement now moving through Western and allied-nation suppliers as staged commissioning remains on track ahead of the Pentagon's January 2027 sourcing deadline. "We're seeing an integrated and sovereign North American mine-to-magnet supply chain take shape in real time," said REalloys CEO Lipi Sternheim. And it's the 11th hour for the U.S. defense establishment.

The American military is burning through precision-guided weapons inventories, and military pundits are sounding alarm bells over China's ability to cut off defense capabilities with a "single phone call".

A recent Fortune analysis by Johns Hopkins Economists now estimates that the U.S. has used up roughly 45% of its Precision Strike Missile inventory in Iran alone, along with nearly half of its THAAD interceptors, roughly 30% of its Tomahawk cruise missiles, and more than 20% of its long-range JASSMs. Replenishing all of that will require defense-grade rare earth magnets and materials, which China largely controls. And at the same time, the Pentagon is pushing a non-Chinese rare earth agenda that sets a harrowing deadline for realization: Defense manufacturers have only seven months to source heavy rare earth magnets that have no Chinese origins of any kind. The panic has already set in, with U.S. defense contractors reportedly privately asking for more time than they are likely to get.

REalloys doesn't need more time. It's already funding processing capacity, securing exclusive commercial supply rights, procuring Western equipment, and moving toward commercial-scale heavy rare earth metallization before the Pentagon deadline hits.

From Saskatchewan to Greenland

In early March, REalloys unveiled its fully-financed buildout of the largest heavy rare earth metallization facility outside of China, in partnership with Canada's Saskatchewan Research Council's (SRC). REalloys is building its supply chain around two linked facilities: The SRC commercial rare earth processing operation and REalloys' metallization and downstream manufacturing platform in Euclid, Ohio.

SRC handles the upstream separation and refining side of the chain, while REalloys is focused on the more complex downstream step of converting rare earth oxides into defense-grade metals, alloys, and eventually permanent magnets used in defense systems.

Now that the system is scaling to meet the Pentagon's deadline. Under its agreements with SRC, REalloys has committed roughly $20.6 million toward targeted upgrades, engineering, permitting, commissioning, and expanded throughput capacity at SRC's processing facility. The upgrades will increase NdPr metal output by another 25% while doubling dysprosium and terbium production capacity. The facility's annual target output now stands at roughly 525 tonnes of NdPr, 30 tonnes of dysprosium, and 15 tonnes of terbium.

In exchange, REalloys (ALOY) secured exclusive preferred rights to as much as 80% of the facility's expanded commercial output, giving the company long-term access to some of the only emerging Western commercial-scale heavy rare earth supply outside China.

Separately, REalloys also contracted SRC to design, build, and commission a standalone commercial-scale heavy rare earth metallization system dedicated specifically to dysprosium and terbium metal production. Once completed, that system will be transferred to the Ohio facility, significantly expanding the company's downstream heavy rare earth metallization capacity.

The Saskatchewan buildout is the biggest heavy rare earth metallization system outside of China, but this is bigger than just North America. And key to the REalloys story is across the Atlantic, in the rare earths wonderland, Greenland.

Last week, REalloys signed a definitive 15-year offtake agreement with Critical Metals Corp. covering 15% of Phase 1 production from the Tanbreez project in southern Greenland, one of the largest known heavy rare earth deposits in the world and one of the few major Western-aligned projects with substantial dysprosium and terbium concentrations.

Critical Metals has publicly disclosed Phase 1 production capacity of up to 15,000 metric tons of rare earth concentrate annually, with REalloys locking in rights to 15% of monthly production under the agreement. The company also secured priority rights tied specifically to dysprosium- and terbium-rich concentrate streams, together with a right of first refusal on additional volumes. And Tanbreez is not a typical rare earth deposit.

Critical Metals estimates roughly 27% of the project's total rare earth profile consists of heavy rare earths, an unusually high concentration in an industry where most major deposits remain dominated by lower-value light rare earth materials.

The strategic implications are becoming hard to ignore. Washington previously lobbied Tanbreez developers not to sell the project to Chinese-linked buyers, while Greenland's government approved Critical Metals' move to 92.5% ownership earlier this year as Western governments race to secure non-Chinese supply chains for defense systems, semiconductors, magnets, and advanced manufacturing.

Taken together, the Saskatchewan processing agreements and the Greenland supply deal are starting to form something much bigger: a Western-aligned heavy rare earth pipeline feeding directly into REalloys' metallization and future magnet manufacturing operations in Ohio.

Other companies to keep an eye on:

Lockheed Martin (LMT) remains the backbone of the U.S. defense industrial base, anchored by its leadership in advanced combat aircraft, missile systems, and integrated air and missile defense. The company's F-35 Lightning II program continues to serve as the single largest weapons system program in the world, supplying not only the U.S. military but also a growing list of allied nations. That multinational footprint provides long-duration backlog visibility and recurring sustainment revenue that extends decades beyond initial production.

With sustained demand for missile interceptors, combat aircraft upgrades, and space-based defense systems, Lockheed's outlook remains tied less to cyclical dynamics and more to structural defense modernization. In a world where supply chain resilience and rapid weapons replacement capacity are increasingly critical, Lockheed remains one of the most systemically important defense equities in global markets.

RTX Corporation (RTX), formed from the merger of Raytheon and United Technologies, has evolved into one of the most diversified defense and aerospace platforms globally. Its portfolio spans missile defense systems, advanced radars, aircraft engines, avionics, and cybersecurity solutions, giving it exposure across air, land, sea, and space domains.

Raytheon's Patriot missile system remains one of the most widely deployed air defense platforms worldwide and has seen renewed demand amid heightened missile threats. RTX has also benefited from increased orders for interceptors and replenishment contracts, particularly as governments seek to strengthen layered defense systems.

With rising geopolitical risk premiums and a structural shift toward integrated air and missile defense, RTX's diversified exposure provides both resilience and growth optionality within the defense sector.

While Boeing (BA) is widely known for commercial aviation, its defense, space, and security division remains a cornerstone of U.S. military procurement. The company manufactures the P-8 Poseidon maritime patrol aircraft, the KC-46 aerial refueling tanker, Apache helicopters, and various satellite and space systems critical to U.S. defense infrastructure.

As geopolitical tensions elevate demand for surveillance, refueling capacity, and integrated aerospace systems, Boeing's defense division provides an important stabilizing component to the broader company profile. While commercial aviation cycles remain volatile, Boeing's defense segment ensures long-duration contract visibility and sustained Pentagon exposure.

Northrop Grumman Corporation (NOC) occupies a critical role in high-end aerospace and strategic systems. The company is the prime contractor for the B-21 Raider stealth bomber, one of the most strategically significant modernization programs in the U.S. Air Force's history. That program alone provides decades of potential production and sustainment revenue.

Recent defense budget discussions have reinforced funding for strategic deterrence and space modernization, areas directly aligned with Northrop's strengths. The company has also secured work related to interceptor systems and classified programs, though details remain limited due to national security constraints.

General Dynamics Corporation (GD) combines shipbuilding, combat vehicles, aerospace, and IT systems under one diversified umbrella. The company's Electric Boat division produces Virginia-class submarines and Columbia-class ballistic missile submarines — programs that anchor U.S. naval deterrence.

Recent submarine contracts extend production visibility well into the next decade, while geopolitical tensions continue to emphasize naval force projection and undersea capability. GD's land systems division, including Abrams tanks and armored vehicles, also benefits from modernization cycles and replenishment orders.

By. Michael Kern

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Key Takeaways Northrop Grumman secured a $100M U.S. Navy contract for GQM-163A aerial target support.NOC will deliver flight trajectory data, tech packages and handle target ops, maintenance and loading.NOC work spans Chandler, Point Mugu and Las Cruces, and is slated to finish by May 2031. Northrop Grumman Corporation (NOC - Free Report) has recently secured a $100 million contract from the U.S. Navy to support the production and launch operations of the GQM-163A aerial target missile system. The contract was awarded by the Naval Air Warfare Center Weapons Division, Point Mugu, CA.

The contract includes the production and delivery of flight trajectory data and technical support packages for the Ground Launch Drone Missile GQM-163A aerial target system. It also covers the operation, maintenance and loading of GQM-163A targets onto launch systems before launch to support the Navy’s Pacific Target Marine Operations Division.

The majority of the work related to this deal will be carried out in Chandler, AZ; Point Mugu, CA; and Las Cruces, NM. The contract is expected to be completed by May 2031.

What’s Favoring NOC Stock?According to a report from the Mordor Intelligence firm, rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems in recent times, backed by the rapid development of advanced missile technologies over the last decade. Mordor Intelligence also forecasts that the global missiles and missile defense systems market will witness a compound annual growth rate of 5.58% during the 2026-2031 period.

Such strong growth projections indicate solid opportunities for Northrop Grumman, which develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors. Notably, NOC’s IBCS serves as the centerpiece of the U.S. Army's air and missile defense modernization strategy and thus enjoys a solid demand in the missile and missile defense systems market. The recent contract is an example of that.

Opportunities for Other Defense StocksOther defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.

RTX Corporation (RTX - Free Report) : It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.

The company’s long-term (three to five years) earnings growth rate is 10.2%. The Zacks Consensus Estimate for RTX’s 2026 sales indicates year-over-year growth of 5.7%.

The Boeing Company (BA - Free Report) : It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.

The Zacks Consensus Estimate for BA’s 2026 sales indicates year-over-year growth of 8.1%. The Zacks Consensus Estimate for BA’s 2026 earnings indicates year-over-year improvement.

Lockheed Martin Corporation (LMT - Free Report) : Lockheed Martin’s renowned missile program includes the Patriot Advanced Capability-3 and Terminal High-Altitude Area Defense air and missile defense programs. It also manufactures the Multiple Launch Rocket System, the Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs alongside other tactical missiles.

The company has a long-term earnings growth rate of 18.5%. The Zacks Consensus Estimate for LMT’s 2026 sales indicates year-over-year growth of 5.3%.

NOC Stock’s Price MovementShares of NOC have gained 11.4% in the past year compared with the industry’s 0.4% growth.

Image Source: Zacks Investment Research

NOC’s Zacks RankNOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On June 10, 2026, we take a closer look at the discounted cash flow (DCF) analysis for Northrop Grumman Corp NOC . The stock has shown mixed performance recently, with a year-to-date decline of 3.0% but a positive 1-year return of 13.4%. Here are some key points to consider:

DCF Earnings-based intrinsic value of $435.16 compared to the current price of $548.67, indicating a margin of safety of -26.1%. DCF Free Cash Flow (FCF)-based intrinsic value of $290.99, suggesting a second opinion of modest overvaluation. GF Score™ of 84/100, indicating a high level of reliability in the DCF inputs. What Is NOC Worth? DCF Earnings-Based Model The DCF earnings-based model for Northrop Grumman Corp projects the company's future earnings based on a two-stage growth model. In the first stage, we estimate the earnings growth for the next ten years, followed by a terminal growth phase. Below are the key assumptions used in the model:

Parameter Value Current EPS (TTM, excl. non-recurring) $30.60 10-Year Growth Rate 8.2% 10-Year Treasury Rate 4.53% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The first stage of the model anticipates an 8.2% growth in EPS over the next ten years, discounted at 11%. The second stage assumes a terminal growth rate of 4% for the following ten years, also discounted at 11%. Below is a summary of the calculation:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 8.2%, discounted at 11% $266.60 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $168.56 Intrinsic Value Growth + Terminal $435.16 With a current price of $548.67 compared to the intrinsic value of $435.16, Northrop Grumman Corp is considered fair valued, with a margin of safety of -26.1%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more with earnings than free cash flow. For further details, visit the NOC DCF Calculator.

What Does the Free Cash Flow DCF Say? The alternative DCF model based on Free Cash Flow (FCF) yields an intrinsic value of $290.99. When comparing this to the earnings-based intrinsic value of $435.16, the two models do not align, suggesting a divergence in valuation perspectives. The FCF-based model indicates that Northrop Grumman Corp is modestly overvalued, with a significant margin of safety of -88.5%.

How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for Northrop Grumman Corp is $556.21, suggesting that the stock is 1.4% undervalued. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. When considering all three valuation models, there is a mixed consensus, with the DCF earnings model indicating fair value, the DCF FCF model suggesting modest overvaluation, and GF Value™ pointing towards slight undervaluation. For more insights, check the GF Value™ page.

What Does NOC's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 84/100 Financial Strength 6/10 Profitability 8/10 Growth 7/10 Valuation 9/10 Momentum 5/10 With a predictability rank of 0/5 stars, it indicates that the DCF model may be less reliable for this stock. For more details, visit the NOC stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Northrop Grumman Corp, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not hold true in all market conditions.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the overall verdict for Northrop Grumman Corp is that it is fair valued based on the DCF earnings model, modestly overvalued based on the DCF FCF model, and slightly undervalued according to GF Value™.

For the full DCF analysis, visit the NOC DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is NOC's intrinsic value based on DCF?

[Answer: earnings-based $435.16, FCF-based $290.99]

Is NOC overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for NOC?

[Answer using predictability rank 0/5]

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].

Flight or fight? In looking at your investment portfolio, you have the choice of both.

Invesco Aerospace & Defense ETF (PPA 1.27%) offers broad exposure to defense contractors and aerospace manufacturing with lower historical volatility, while U.S. Global Jets ETF (JETS +1.98%) provides a pure-play, more concentrated bet on global airline operators.

Investors looking for exposure to flight-related industries generally choose between two distinct paths: commercial travel or military defense. While both funds are housed primarily within the industrial sector, their underlying economic drivers differ significantly, ranging from consumer leisure demand and fuel costs to national security budgets and long-term government defense contracts.

Snapshot (cost & size)MetricJETSPPAIssuerUS GlobalInvescoExpense ratio0.60%0.58%1-yr return (as of June 8, 2026)20.10%25.10%Dividend yield0.80%0.40%Beta1.210.74AUM$860.4 million$8.0 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Invesco fund is slightly more affordable with a 0.58% expense ratio compared to the 0.60% charged by the U.S. Global fund. However, the airline-focused ETF provides a higher payout, yielding 0.80% over the trailing 12 months at its recent price of $27.55, versus the 0.40% yield from the defense fund when it was trading around $166.

Performance & risk comparisonMetricJETSPPAMax drawdown (5 yr)(44.00%)(18.40%)Growth of $1,000 over 5 years (total return)$1,060$2,282What's insideThe Invesco Aerospace & Defense ETF holds 60 positions and tracks the SPADE Defense Index, focusing on firms vital to U.S. homeland security and aerospace support. Its largest positions include Boeing Co. (BA 0.83%) at 8.1%, RTX Corp. (RTX 0.32%) at 7.91%, and GE Aerospace (GE +0.64%) at 7.77%. The portfolio is almost 94% Industrials, with the balance in technology and communication services. This fund was launched in 2005 and has a trailing-12-month dividend of $0.66 per share.

The U.S. Global Jets ETF offers a more concentrated portfolio of 50 positions, including both airline operators and aircraft manufacturers worldwide. Its largest positions include Delta Air Lines Inc (DAL +1.51%) at 12.69%, American Airlines Group Inc (AAL +1.54%) at 12.01%, and United Airlines Holdings Inc (UAL +2.68%) at 11.57%. The sector mix is 91% Industrials, 7% Consumer Cyclical, and 2% Technology. This fund was launched in 2015 and has a trailing-12-month dividend of $0.23 per share.

Which is the better buy?The Invesco Aerospace & Defense ETF is the better buy, having outpaced the U.S. Global JETS fund year-to-date, over the past three years, and over the previous five years. In the three years through March 31, 2026, PPA has returned 27.87%, while avancing 17.85% over the previous five years.
By comparison, the U.S. Global JETS ETF has returned 17.38% over the past three years and 2% over the past five years.

The primary difference is that JETS is focusing solely on the commercial aerospace business, mainly consumer travel on aircraft. That’s a boom-and-bust industry, where intense competition over airfare pricing makes it difficult for most airlines to post consistent profits.

The Invesco PPA fund holds a number of stocks not seen in JETS, including defense contractors L3Harris Technologies (LHX 1.05%), General Dynamics (GD +0.46%), and Northrop Grumman (NOC 0.61%). All of those are stocks benefiting from the U.S. increasing defense spending amid multiple military campaigns in recent years.

With lower volatility than JETS, as indicated by its lower maximum drawdown, PPA is the choice for 2026.

For more guidance on ETF investing, check out the full guide at this link.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, L3Harris Technologies, and RTX. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Cathie Wood normally thrives in a bull market, but this year hasn't played out that way. The founder CEO of Ark Invest is seeing flat returns for its largest exchange-traded fund in 2026, falling short of the general market's 10% gain.

She's not going to rest until she gets back to beating the market again. Wood publishes Ark Invest's transactions at the end of every trading day, so we know what she's buying. Ark added to existing positions in Amazon (AMZN 1.24%), Kratos Defense & Security Solutions (KTOS 1.66%), and Tempus AI (TEM 3.39%) on Wednesday. Let's take a closer look at these three stocks.

Image source: Getty Images.

1. Amazon The country's largest company, at least in terms of trailing revenue, has been flirting with joining the $3 trillion market cap club this month. It should get there eventually, but the real prize is higher milestones for long-term investors.

Amazon's biggest driver is no longer its namesake online marketplace. The real star of the show these days is Amazon Web Services (AWS). The cloud hosting platform is a leader in a category that's booming in the wake of the AI revolution. AWS accounts for just a fifth of Amazon's total net sales, but more than half of its operating profit.

Today's Change

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As large as Amazon may be, business is accelerating. The 17% increase in net sales it posted in its latest quarter is a four-year record for the widely followed growth stock. A 28% year-over-year gain for its high-margin AWS business led the way higher.

The key to AWS's success is the many deals it's striking with AI leaders, including OpenAI and Anthropic, as well as current and future tech giants. UBS put out a bullish analyst note on Amazon on Wednesday, arguing that its healthy backlog of orders bodes well through the near term at least. UBS analyst Stephen Ju has a $333 price target on Amazon, suggesting near-term upside of 22%, or a market cap approaching $3.6 trillion.

As if on cue, Snowflake (SNOW 3.60%) announced after the market close on Wednesday that it was collaborating on a multiyear deal with Amazon. Snowflake, riding high from blowout numbers in its after-hours report, is committing $6 billion in spending on AWS. For Amazon stock, these 10-figure commitments keep happening with a frequency that's refreshingly growing.

Today's Change

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-0.97

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$

57.80

2. Kratos Defense & Security Solutions At least seven analysts have lowered their price targets for Kratos this month, following a disappointing financial update. It exceeded expectations and raised its full-year top-line guidance. However, its revenue forecast for the current quarter was below where the Wall Street pros were perched.

One would expect demand to be on the rise for a provider of military solutions for drone and missile defense systems as things heat up overseas. Revenue is growing, but profitability has been light. Its trailing net margin of 2.1% isn't very impressive, and that is Kratos' strongest showing in more than five years. The stock has actually shed about a quarter of its value so far in 2026. Wood naturally sees a buying opportunity here.

Today's Change

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$

47.91

3. Tempus AI Kratos isn't the only company on this list that posted an earnings beat earlier this month, boosted its revenue guidance, and still left the market unimpressed. Tempus is a provider of AI solutions for oncology and hereditary products.

Revenue growth decelerated in its latest quarter, but it still beat expectations. Investors who bid up Tempus shares last year have been cashing out this year, as the stock has fallen 20%. Zoom out to the all-time highs it scored in October, and the shares have been cut in half. As with Kratos, Wood sees pullbacks on stocks she likes as a compelling time to add to those stakes.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Kratos Defense & Security Solutions, Snowflake, and Tempus AI. The Motley Fool has a disclosure policy.

Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) shares are trending on Friday.

KTOS climbed 5.84% to $69 in after-hours trading on Thursday.

The stock of the California-based unmanned systems and defense technology firm surged 13.77% intraday to $65.19, according to Benzinga Pro data.

Government Capital Enters The Drone SectorWith the “Drone Dominance” executive order signed in June 2025 and the fiscal year 2027 defense budget committing tens of billions to drone and autonomy programs, the administrative groundwork for mass unmanned deployment is firmly established.

The after-hours momentum extended across the sector:

Why KTOS Stands OutKratos, an American defense contractor specializing in affordable, high-performance unmanned systems, focuses on jet-powered platforms and target drone systems already embedded in Pentagon programs.

In early May, Kratos announced the selection of Odon, Indiana, as the future home of its new mid-tier coupled arc jet and laser facility under Project Helios, a $68.3 million Department of War contract. The site was chosen following an extensive multi-state review, with state and local support cited as a key factor in the decision.

Trading Metrics, Technical AnalysisNetcapital has a market capitalization of $12.22 billion, a 52-week high of $134 and a 52-week low of $35.89.

The Relative Strength Index (RSI) of KTOS stands at 57.87.

The mid-cap technology stock has gained 74.63% over the past 12 months.

Currently, the stock is positioned at about 29.9% of its 52-week range, closer to the lower end between its yearly low and high.

With a Growth score of 97.33, Benzinga’s Edge Stock Rankings suggest that KTOS is maintaining a negative price trend across all time frames.

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