It has been about a month since the last earnings report for Cytokinetics (CYTK - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cytokinetics due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Cytokinetics, Incorporated before we dive into how investors and analysts have reacted as of late.
CYTK Q1 Earnings Match Estimates, Revenues Beat on Myqorzo Launch
Cytokinetics reported a first-quarter 2026 loss of $1.67 per share, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company reported a loss of $1.36 per share.
Loss widened year over year due to higher SG&A expenses tied to costs associated with the commercial launch of Myqorzo.
Revenues amounted to $19.4 million, up from $1.6 million reported in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $7.0 million.
The quarter reflected CYTK’s transition into a commercial-stage story, supported by early Myqorzo launch traction and a sizable year-over-year step-up in total revenues.
CYTK’s Revenue Mix Jumps on Launch and Milestones
Net product revenues from Myqorzo were $4.8 million, reflecting approximately nine weeks of U.S. sales following its launch.
In December 2025, the FDA approved Myqorzo (aficamten) for adults with symptomatic obstructive hypertrophic cardiomyopathy (oHCM).
Through April, management noted that patients on therapy expanded to roughly 1,100, pointing to accelerating early demand.
Commercial momentum is being paired with expanding regulatory and geographic scope. Myqorzo received European Commission approval for adults with symptomatic obstructive HCM, and Cytokinetics indicated that it is moving toward its first European commercial launch in Germany in the second quarter of 2026.
Beyond product sales, quarterly revenues included $11.9 million tied to a milestone under the license agreement with Bayer, associated with the first commercial sale of Myqorzo in the United States. Collaboration revenues amounted to $2.6 million, up from $1.6 million in the year-ago quarter.
Operating expenses rose in line with the company funding its first launch. Selling, general and administrative expense climbed to $104.9 million from $57.4 million a year ago, driven by external costs related to Myqorzo commercialization, the U.S. sales force buildout and higher personnel-related costs, including stock-based compensation.
Research and development expense was $95.5 million, down from $98.3 million in the prior-year quarter. Management attributed the modest decline to higher clinical trial activity last year, partially offset by increased personnel-related costs in 2026.
CYTK’s Updates on Aficamten
On the clinical front, CYTK reported positive top-line results from ACACIA-HCM, its pivotal phase III study of aficamten in symptomatic non-obstructive hypertrophic cardiomyopathy. The trial met both dual primary endpoints, showing statistically significant improvements from baseline to week 36 in the Kansas City Cardiomyopathy Questionnaire Clinical Summary Score and peak VO2 compared with placebo.
CYTK is also working on a label expansion of Myqorzo. The FDA accepted its supplemental new drug application (sNDA) for MAPLE-HCM, a phase III study evaluating aficamten as monotherapy compared with metoprolol as monotherapy in patients with oHCM. The regulatory body assigned a target action date of Nov. 14, 2026. A potential approval is expected in the fourth quarter of 2026.
Outside the United States, Cytokinetics submitted a marketing authorization application to Swissmedic and highlighted orphan drug designations from Japan’s Ministry of Health, Labour and Welfare for non-obstructive HCM in adults and oHCM in pediatric patients.
CAMELLIA-HCM, a phase III study of aficamten in Japanese patients with oHCM, is also ongoing. The study is being conducted by Bayer in collaboration with Cytokinetics to support potential marketing authorization in Japan.
Other studies include CEDAR-HCM, a clinical trial of aficamten in a pediatric population with symptomatic oHCM.
Cytokinetics’ Other Pipeline Candidates
Other pipeline candidates include omecamtiv mecarbil, a cardiac muscle activator, for patients with heart failure. A confirmatory phase III multi-center, double-blind, randomized, placebo-controlled trial, COMET-HF, evaluating the efficacy and safety of omecamtiv mecarbil in patients with symptomatic heart failure with severely reduced ejection fraction is ongoing. Enrollment is expected to continue through 2026.
Following a recommendation from the dose level review committee, patient enrollment has been expanded in Cohort 1 of AMBER-HFpEF, a phase II study evaluating ulacamten in patients with symptomatic heart failure with preserved ejection fraction (HFpEF) and left ventricular ejection fraction (LVEF) ≥ 60%. Enrollment in Cohort 1 is expected to be completed in the second half of 2026.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM ScoresCurrently, Cytokinetics has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cytokinetics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCytokinetics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Krystal Biotech, Inc. (KRYS - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Krystal Biotech reported revenues of $116.36 million in the last reported quarter, representing a year-over-year change of +32%. EPS of $1.83 for the same period compares with $1.20 a year ago.
For the current quarter, Krystal Biotech is expected to post earnings of $1.81 per share, indicating a change of +40.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Krystal Biotech. Also, the stock has a VGM Score of D.
Program to Provide Donations to Non-Profit Organizations Aligned with Corporate Values
Deadline for Applications is August 3, 2026
SOUTH SAN FRANCISCO, Calif., June 08, 2026 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced a call for proposals for its annual Cytokinetics Corporate Giving Program. The program provides charitable donations to eligible non-profit organizations in the United States to support equitable healthcare initiatives for cardiovascular disease, science education and certain essential services for local and at-risk communities.
“At Cytokinetics, our commitment to the communities around us is as fundamental to our mission as the science we pursue,” said Diane Weiser, Cytokinetics’ Senior Vice President, Corporate Affairs. “Through this program, we are proud to support the non-profit organizations on the front lines of building a future where everyone has a fair chance at health and opportunity.”
The Cytokinetics Corporate Giving Program consists of individual charitable donations up to $20,000 for qualified 501(c)(3) organizations in the United States that are neither engaged, nor directly involved in the practice of healthcare. Specifically, the program will provide funding to organizations with initiatives focused on science education and certain essential services for local and at-risk communities in the San Francisco Bay Area and Greater Philadelphia Region. Additionally, it will support eligible organizations dedicated to health equity initiatives in cardiovascular disease across the United States. Applications may now be submitted online at https://www.cybergrants.com/Cytokinetics/corporate_giving_eligibility.
The deadline to apply for the Cytokinetics Corporate Giving Program is August 3, 2026. For more information on the program, including eligibility details, guidelines and specifics, visit https://cytokinetics.com/responsibility/grants-and-giving-programs/corporate-giving-program/.
About Cytokinetics
Cytokinetics is a specialty cardiovascular biopharmaceutical company, building on its over 25 years of pioneering scientific innovations in muscle biology, and advancing a pipeline of potential new medicines for patients suffering from diseases of cardiac muscle dysfunction. Cytokinetics’ MYQORZO® (aficamten) is a cardiac myosin inhibitor approved in the U.S., Europe and China for the treatment of adults with symptomatic obstructive hypertrophic cardiomyopathy (oHCM). Following positive topline results in ACACIA-HCM, a Phase 3 clinical trial of aficamten in patients with non-obstructive HCM (nHCM), the company is preparing to present the full results at an upcoming medical meeting and discuss them with the U.S. FDA and other regulatory authorities. Cytokinetics is also developing omecamtiv mecarbil, an investigational cardiac myosin activator for the potential treatment of patients with heart failure with severely reduced ejection fraction and ulacamten, an investigational cardiac myosin inhibitor for the potential treatment of heart failure with preserved ejection fraction, while continuing pre-clinical research and development in muscle biology.
For additional information about Cytokinetics, visit www.cytokinetics.com and follow us on X, LinkedIn, Facebook and YouTube.
Disclaimer
Omecamtiv mecarbil and ulacamten are investigational medicines. They have not been approved nor determined to be safe or efficacious for any disease state or any indication by FDA or any other regulatory agency.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Cytokinetics disclaims any intent or obligation to update these forward-looking statements and claims the protection of the Act’s Safe Harbor for forward-looking statements. Examples of such statements include, but are not limited to, statements relating to Cytokinetics’ and its partners’ research and development activities of Cytokinetics’ product candidates. Such statements are based on management’s current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to the risks related to Cytokinetics’ business outlines in Cytokinetics’ filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and Cytokinetics’ actual results of operations, financial condition and liquidity, and the development of the industry in which it operates, may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements that Cytokinetics makes in this press release speak only as of the date of this press release. Cytokinetics assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
CYTOKINETICS® and the CYTOKINETICS C-shaped logo are registered trademarks of Cytokinetics in the U.S. and certain other countries.
MYQORZO® is a registered trademark of Cytokinetics in the U.S. and the European Union.
Asana, Inc. (NYSE: ASAN - Get Free Report)'s stock price reached a new 52-week low during trading on Friday. The stock traded as low as $6.31 and last traded at $6.3850, with a volume of 544955 shares traded. The stock had previously closed at $6.68. Analysts Set New Price Targets Several equities analysts recently issued
Software-as-a-service stocks powered portfolios for a decade on predictable revenue and fat margins. Then AI arrived. Tools that write code, design interfaces, and automate workflows triggered the so-called SaaS-pocalypse in early 2026. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) has fallen 35% from its October peak, with even companies posting double-digit growth watching investors flee.
However, three software application stocks stand amongst the hardest hit from their 52-week highs: Figma (NYSE:FIG), down 86.5%; Duolingo (NASDAQ:DUOL | DUOL Price Prediction), off 83.3%; and Monday.com (NASDAQ:MNDY), lower by 80.2%. Here is why these three once high-flying names have been decimated.
Figma (FIG) Figma’s stock traded as high as $142.92 in the past 52 weeks, but now sits below $20 per share for an 86.5% drop. Even so, growth remains robust.
Figma’s fourth-quarter and full-year 2025 results showed full-year revenue of $1.06 billion, up 41% year-over-year. Fourth-quarter revenue alone reached $303.8 million, also up 40%, while international revenue rose 45%. Adjusted free cash flow for the quarter hit $38.5 million, delivering a 13% margin, and full-year free cash flow totaled $237 million.
Yet the company stays unprofitable. Figma’s trailing 12-month P/E stands at a loss-making negative 7.39, with net losses for the year exceeding $1.25 billion. Compare that to peer Adobe (NASDAQ:ADBE), which generated 10% revenue growth in its latest quarter and throws off roughly $10 billion in annual free cash flow. It trades at a P/E of 13.3 and 3.8 times sales. Figma, by contrast, grows nearly four times faster but commands 9.5 times sales.
Figma guided first-quarter 2026 revenue to $315 million to $317 million (38% growth at the midpoint) and full-year 2026 to $1.366 billion to $1.374 billion (30% growth). That is deceleration, but still triple Adobe’s pace. It is clear investors are pricing in the risk that AI could erode Figma’s moat faster than expected.
Duolingo (DUOL) Duolingo peaked near $544.93, but shares now hover just below $90 a stub, an 83.3% decline. Its numbers, though, still impress. Duolingo reported full-year revenue of $1.038 billion, up 39%, and Q4 revenue rose 35% to $282.9 million. Total bookings climbed 33% to $1.158 billion, as daily active users reached 52.7 million, up 30%. Free cash flow for the year totaled $360.4 million and net income hit $414.1 million, though a $256.7 million one-time tax benefit boosted the figure. Adjusted EBITDA margin expanded to 29.8% in the quarter.
That said, 2026 guidance disappointed. The company forecast bookings growth of just 10% to 12%, well below the 24% posted in Q4. Duolingo’s trailing P/E sits around 10.3.
In a sector where peers like Coursera (NYSE:COUR) trade at similar multiples but with slower user growth, Duolingo’s valuation reset reflects investor skepticism that AI language tools will cap subscriber expansion. The stock’s drop in value prices in that risk.
Monday.com (MNDY) Monday.com reached $316.98 at its 52-week high and is now down 80.2%, trading near $62.50 per share, although its fundamentals hold steady. Trailing 12-month revenue stands at $1.23 billion, with net income of $118.74 million and EPS of $2.24. Free cash flow reached $309.9 million for the period ending Dec. 31, up 4.8% year-over-year, and the net dollar retention rate held at 111% in the quarter. Its P/E ratio equals 27.9x. The company set full-year 2026 revenue guidance at $1.452 billion to $1.462 billion, implying 18% to 19% growth.
That’s slower than the triple-digit growth of prior years, but it outpaces many mature SaaS names. Compared to Asana (NYSE:ASAN), Monday.com’s retention and cash generation look stronger, yet the market applied the same discount across the board.
No matter how you slice it, these three stocks illustrate the SaaS-pocalypse in action. Strong revenue, user gains, and cash flow failed to protect them from AI-driven repricing. It seems unlikely these stocks will regain their former highs anytime soon — if ever — but the fear discount baked into their stocks looks overdone for patient risk-tolerant investors.
Investors felt like it was 2021 all over again when shares of Avis Budget Group NASDAQ: CAR soared from $100 to $850 in just over three weeks.
No announcement or breakthrough caused the surge; just a classic short squeeze story involving an artificially-limited float and unbridled risk-seeking behavior.
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The squeeze was orchestrated by a pair of hedge funds that effectively gained control of the entire float. Through stock and swaps, Pentwater Capital and SRS Investment Management controlled more than 80% of the float in a stock already seeing 13% short interest.
As a result, basically no shares were available for shorts to cover, and the feedback loop sent the stock up more than 500%. Like most short squeezes, the trade quickly unwound, and CAR shares are back in the low $200's. But this episode was a great refresher on short-squeeze mechanics and also could set the stage for the next batch of squeezes.
3 Stocks With High Short Interest That Could Squeeze NextA true short squeeze requires three elements: a high level of short interest, a lengthy days to cover period, and a catalyst that can ignite a rally.
High short interest, with more than 5 days to cover, may create a difficult environment for short sellers to locate shares to close their positions. And when shorts are scrambling to cover while buyers pour in, that’s when the feedback loop of the short squeeze really sets in. Here are three stocks that match these criteria.
Groupon: Clean Short Squeeze Setup With Upcoming Earnings CatalystGroupon Today
$16.87 +0.78 (+4.85%)
As of 06/11/2026 04:00 PM Eastern
52-Week Range$9.17▼
$43.08Price Target$28.67
Online discounting marketplace Groupon Inc. NASDAQ: GRPN is always a popular short-squeeze candidate thanks to its earnings volatility and its general inability to turn revenue into profit.
And the shorts have mostly been rewarded over the years as GRPN shares have lost more than 65% of their value over the last five years.
But heavily shorted stocks often provide brief windows of opportunity, and Groupon has the classic short-squeeze setup that traders often seek.
First, GRPN has more than 50% of its float sold short, up more than 5% from the previous month. The stock entered the year with about 40% of the float sold short, so this is an acceleration from earlier levels. And crucially, shorts would need roughly 11.3 days to cover under average trading volume, which opens a lengthy window for a short squeeze to materialize.
In addition to the classic high short interest plus high days to cover combo, Groupon has a catalyst on the horizon with its Q1 2026 earnings release on May 6. An upside surprise could put more pressure on shorts, as the stock has already popped more than 30% in the last month.
Ignore the recent pullback; the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator both show swelling buying momentum ahead of the earnings catalyst.
Asana: Founder Control Shrinks the Tradable SupplyAsana Today
$7.48 -0.11 (-1.39%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$5.38▼
$15.71Price Target$9.27
Asana Inc. NYSE: ASAN is the work management software platform founded by Dustin Moskovitz, one of the original designers of Facebook and a tech sector staple.
The company has struggled to achieve profitability over its nearly two decades of operations, but recently posted back-to-back positive EPS figures in fiscal Q3 and Q4 2026.
It also posted record revenue of $205.57 million in Q4 2026, which represented more than 9% year-over-year (YOY) growth. Sentiment may be turning in Asana; the stock received a rare upgrade from the Royal Bank of Canada in early April, and the share price has been trending up for the last few weeks.
Nearly 35% of the float is sold short in ASAN, with about 4.2 days to cover. That combo is already an intriguing short-squeeze setup, but Moskovitz’s controlling stake is so large that it artificially reduces the number of shares available for trading. He’s also been a relentless buyer during downturns, creating a dynamic similar to what unfolded at Avis.
Short interest is at its highest level since 2022, but indicators like the RSI and MACD suggest selling pressure is subsiding, and a steady influx of buyers could be the catalyst to ignite the squeeze.
Few stocks have incinerated capital like Beyond Meat Inc. NASDAQ: BYND, which is down more than 99% since its 2019 IPO.
But that hasn’t stopped management from trying new things, and a few catalysts have the stock actually up more than 30% this month.
First, the company announced a partnership with Big Geyser for a protein-enhanced sports drink called Beyond Immerse. It also launched a new line of breakfast sausages and spicy chicken pieces, the latter to be sold exclusively at Kroger NYSE: KR.
With more than 31% of the float sold short and about 4.0 days to cover, the stock has the technical underpinnings for a short squeeze. A bullish MACD crossover triggered a trend reversal in early April, and now the RSI is back in bullish territory for the first time since early March. The company reports earnings on May 6, so another potential catalyst is waiting in the wings.
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SAN FRANCISCO--(BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), the system of action for work where humans and AI collaborate, announced today that it will release financial results for the first quarter fiscal year 2027 on Thursday, May 28, after the close of the U.S. markets. In conjunction with the announcement, the company will host a webcast on the same day at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to discuss the financial results. The live webcast and replay will be availab.
SAN FRANCISCO--(BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), the operating system for human-agent teams, today announced it has completed the acquisition of StackAI. StackAI is a no-code AI workflow platform that enables companies to design, test, deploy and govern custom AI agents and intelligent automation of business-critical workflows. The platform connects workflows, data, and actions across enterprise systems such as ERP, CRM and ITSM, to automate operational processes like custo.
SAN FRANCISCO--(BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), the operating system for human-agent teams, today reported financial results for its first quarter fiscal 2027 ended April 30, 2026. “Asana is the operating system for human-agent teams,” said Dan Rogers, Chief Executive Officer of Asana. “We believe the real enterprise productivity unlock from AI comes when humans and agents work together across the critical workflows that run the business. Customers are increasingly using A.
Asana has acquired the workflow automation company StackAI for $75 million, part of a larger effort to position itself as an AI-native workplace platform. StackAI’s founders, Tony Rosinol and Bernard Aceituno, will join Asana as part of the acquisition.
Asana framed the acquisition as part of its broader AI pivot, in which it seeks to build its platform into “the operating system for human-agent teams.”
The announcement was announced Thursday afternoon to coincide with Asana’s earnings and investor call.
Built as an AI workflow-automation system, StackAI designs agents to operate within existing business systems, pulling in data from systems like Salesforce, Slack, and Gsuite. Part of Y Combinator’s Winter ’23 cohort, the company has faced fierce competition from automation tools like Zapier as well as AI labs like OpenAI and Anthropic.
StackAI had raised just under $20 million, according to PitchBook data, with most of it coming in a recent $16 million Series A round. That round included funding from Gradient, Epakon Capital, Lobby VC, LifeX Ventures, and Vercel CEO Guillermo Rauch.
While users are likely most familiar with Asana’s work management system, the company has released a number of AI-oriented products in recent years, most notably the AI Studio automation builder and AI Teammates series of pre-built agents. While equivalent tools are available from major labs, Asana sees its deep integration into existing corporate workflows as a key advantage, allowing it to distill context and training data that would otherwise be unavailable.
Asana has struggled on public markets during the AI era, losing more than half its market cap value since the introduction of ChatGPT — a spiral that grew worse with the departure of founder Dustin Moskovitz as CEO last March. But revenue has continued to grow steadily, and the new leadership is confident that its human-agent products will enable it to rebound.
“This acquisition accelerates our roadmap and takes us into the next phase of human-agent work,” said CEO Dan Rogers in a statement. “We’re already seeing real momentum with AI Teammates and AI Studio … StackAI now lets them go further, agentifying the most complex business processes end-to-end.”
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Russell Brandom has been covering the tech industry since 2012, with a focus on platform policy and emerging technologies. He previously worked at The Verge and Rest of World, and has written for Wired, The Awl and MIT’s Technology Review. He can be reached at [email protected] or on Signal at 412-401-5489.
• Asana shares are powering higher. Why are ASAN shares rallying?
The company reported first-quarter revenue of $205.1 million, up 9.5% year-over-year. The revenue beat a Street consensus estimate of $203.6 million, according to data from Benzinga Pro.
The company reported earnings of 10 cents per share in the quarter, beating a Street consensus estimate of seven cents per share.
Asana reported record GAAP and non-GAAP operating margins in the first quarter.
"The business continues to show improving fundamentals, supported by momentum in AI product adoption, customer expansion, and operating efficiency," Asana Chief Financial Officer Aziz Megji said.
Asana had 26,103 Core customers, who spend at least $5,000 or more on an annualized basis, at the end of the quarter. This figure was up 7% year-over-year. Revenue from Core customers was up 10% year-over-year in the quarter.
Customers who spend $100,000 or more on an annualized basis with Asana were 817 in the quarter, up 12% year-over-year.
StackAI AcquisitionAlongside quarterly earnings, Asana announced the acquisition of StackAI. The acquisition is expected to add cross-system execution for human-agent teams.
"StackAI is a no-code AI workflow platform that enables companies to design, test, deploy and govern custom AI agents and intelligent automation of business-critical workflows," the company said.
StackAI offers end-to-end operations with multi-agent workflows and compatibility in Salesforce, AWS, Docusign, Oracle, document systems and industry applications, the company added.
Terms of the acquisition were not disclosed.
"The acquisition of StackAI further differentiates our operating system for human-agent teams and reinforces our confidence in Asana's long-term growth and profitability potential," Megji said.
Asana CEO Dan Rogers said the acquisition accelerates the company's roadmap.
"We're seeing real momentum with AI Teammates and AI Studio," Rogers said.
What's Next for AsanaAsana is guiding for second-quarter revenue to be in a range of $213 million to $215 million, up 8.2% to 9.2% year-over-year. Analysts currently expect second-quarter revenue of $211.9 million.
For the second quarter, Asana is guiding for earnings of eight cents to nine cents per share. The Street estimate is currently nine cents per share.
Asana raised its full-year guidance for revenue to $855 million to $863.5 million, up from a prior range of $850 million to $858 million. The analyst estimate is currently $854.3 million.
The full-year revenue includes around 50 basis points of growth from the StackAI acquisition.
For the full year, Asana expects earnings of 37 cents per share, raised slightly from the previous range of 36 cents to 37 cents per share. Analysts currently expect full-year earnings per share of 37 cents.
Asana Stock Price ActionAsana stock is up 3.3% to $6.88 in after-hours trading on Thursday, versus a 52-week trading range of $5.38 to $19.
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Avis Short Squeeze Shocked the Market: Are These 3 Stocks Next?Asana NYSE: ASAN reported fiscal first-quarter revenue that exceeded its guidance range and said customer retention, expansion activity and adoption of its artificial intelligence products improved during the period.
Chief Executive Officer Dan Rogers said the company generated revenue of $205.1 million in the first quarter of fiscal 2027, up 9.5% from a year earlier. He said non-GAAP operating margin expanded to 11.5%, an improvement of 720 basis points year over year, reflecting “continued progress in driving both growth and operating efficiency across the business.”
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How Did Peter Thiel-Backed Crypto Exchange Bullish's IPO Go?Rogers said the company saw positive trends in customer retention and expansion, with overall in-quarter net retention improving for the fourth consecutive quarter to 97%. He said the improvement was broad-based across gross retention and expansion activity, supported by healthier seat adoption, improved customer engagement and early traction from Asana’s AI products.
AI Products Drive Expansion Activity Rogers said Asana’s strategy is to become “the operating system for human agent teams,” positioning the company around workflows where employees and AI agents collaborate on business-critical processes. He said the company believes many organizations have experienced personal productivity gains from AI chatbots but have not yet translated those gains into broader team or enterprise productivity.
E-Commerce Wars: Asana and Monday.com Battle for the Top SpotThe company highlighted growing adoption of AI Studio, which Rogers said became generally available roughly a year ago. AI Studio is used to automate repeatable work such as intake, classification, routing, quality checks and reporting. Rogers said early data shows customers adopting AI Studio have higher retention and stronger net revenue retention than the broader customer base, with the primary driver being seat expansion rather than lower churn alone.
During the quarter, Rogers said the number of customers spending more than $100,000 annually on AI Studio nearly doubled. In the question-and-answer session, Chief Financial Officer Aziz Megji clarified that those customers were spending more than $100,000 on the AI Studio SKU itself, excluding their core Asana seat spend.
Rogers also discussed AI Teammates, shared AI agents assigned to projects that work alongside employees within Asana’s Work Graph. He said paid conversion from the beta cohort has been strong and that tasks involving AI Teammates are completed nearly nine times faster. Asana said AI product bookings represented 17% of net new annual recurring revenue in the first quarter, ahead of its full-year target of 15%.
StackAI Acquisition Expands AI Workflow Ambitions Asana announced the acquisition of StackAI, a privately held AI software company that offers a no-code AI workflow platform for designing, testing, deploying and governing custom AI agents and intelligent automations. Rogers said StackAI extends Asana’s AI Studio capabilities by enabling workflows across enterprise systems such as CRMs, ERPs, databases, support systems, contracts and custom infrastructure.
Rogers said StackAI accelerates Asana’s roadmap by more than a year. In response to a question from Robert Oliver of Baird, Rogers said customers had been asking to extend AI Studio workflows into third-party systems, and StackAI already had demonstrated traction in complex operating environments, including regulated industries.
Megji said the transaction includes approximately $75 million in upfront cash consideration, along with an equity-based earn-out opportunity. He said the acquisition adds about 50 employees across engineering and AI-focused go-to-market functions. After adjusting for the deal, Megji said Asana would have more than $350 million in cash equivalents and marketable securities remaining on its balance sheet, including an assumption of $3 million of cash on StackAI’s balance sheet.
Customer Metrics and Vertical Trends Improve Megji said Asana ended the quarter with 26,103 “core customers,” defined as customers spending $5,000 or more on an annualized basis. Revenue from core customers grew 10% year over year and represented 76% of total revenue. The company had 817 customers spending $100,000 or more on an annualized basis, up 12% year over year.
Overall dollar-based net retention was 96%, while core customer net retention was 97%. Among customers spending $100,000 or more, net retention was 96%. Megji noted that these figures are trailing four-quarter averages and therefore lag more recent trends.
Rogers said the technology sector returned to positive year-over-year growth for the first time in eight quarters, aided by adoption across multiple products. He cited CoreWeave and Epson as customers that expanded with additional seats and AI products during the quarter. Megji said the improvement in tech was primarily driven by expansion, including add-on AI Studio and AI Teammates adoption, as well as seat expansion and improving retention.
Growth in non-technology sectors continued to outpace overall company growth, according to Rogers. He said international revenue rose 12% year over year, led by EMEA and APAC, and noted new customers including a British athletic apparel brand and IKEA Australia.
Profitability, Cash Flow and Buybacks Megji said Asana’s non-GAAP gross margin was 88%. Research and development expenses were $47.5 million, or 23% of revenue, while sales and marketing expenses were $83.5 million, or 41% of revenue. General and administrative expenses were $26.7 million, or 13% of revenue.
Non-GAAP net income was $24.4 million, or $0.10 per diluted share. Megji said profitability improvements were driven by operating leverage, disciplined spending, infrastructure and cloud cost optimization, and headcount discipline as the company uses AI across internal workflows.
Asana ended the quarter with $424.6 million in cash equivalents and marketable securities. Remaining performance obligations were $518.1 million, up 23% year over year, while current remaining performance obligations grew 18% year over year. Adjusted free cash flow was $34.4 million, or 17% of revenue.
The company repurchased $45 million of Class A common stock during the quarter, buying 7.4 million shares at an average price of $6.11 per share. Megji said Asana had roughly $155 million remaining under its current repurchase authorization as of April 30.
Guidance Includes StackAI Contribution For the second quarter of fiscal 2027, Asana expects revenue of $213 million to $215 million, representing growth of 8.2% to 9.2% year over year. The outlook includes an expected StackAI contribution of about 50 basis points to growth. The company expects non-GAAP operating income of $18 million to $20 million and non-GAAP net income of $0.08 to $0.09 per share.
For the full fiscal year, Asana expects revenue of $855.5 million to $863.5 million, also representing growth of 8.2% to 9.2%. The full-year outlook includes the first-quarter outperformance and an expected StackAI contribution of approximately 50 basis points to growth. Asana expects a full-year non-GAAP operating margin of at least 9.75% and non-GAAP net income of $0.37 per share.
Megji said the company’s outlook continues to assume roughly a two-point drag on annual recurring revenue growth from its product-led growth motion, only modest improvement in net retention over the year, and AI product bookings contributing about 15% of net new ARR in fiscal 2027. He said Asana plans to provide a more comprehensive update on AI product contribution during its second-quarter call.
About Asana NYSE: ASANAsana, Inc NYSE: ASAN is a leading provider of work management and collaboration software designed to help teams organize, track and manage their work. Founded in 2008 by Dustin Moskovitz and Justin Rosenstein, Asana's platform enables users to create projects, assign tasks, set deadlines and visualize progress across diverse workflows. The company's cloud-based solution includes customizable project templates, timeline views, boards and automated rules that streamline routine processes and reduce manual effort.
Built for both small teams and large enterprises, Asana supports integrations with a wide array of third-party applications, including communication tools, file-sharing services and DevOps platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Asana, Inc. (ASAN - Free Report) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +29.03%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.08, delivering a surprise of +14.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Asana, which belongs to the Zacks Internet - Software industry, posted revenues of $205.1 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $187.27 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Asana shares have lost about 53.3% since the beginning of the year versus the S&P 500's gain of 9.9%.
What's Next for Asana?While Asana has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Asana was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.09 on $211.9 million in revenues for the coming quarter and $0.37 on $854.01 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Oddity Tech (ODD - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on June 2.
This online retailer of cosmetics and beauty products is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -105.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Oddity Tech's revenues are expected to be $187.65 million, down 30% from the year-ago quarter.
NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, May 29, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.
Asana is upgraded to 'Neutral' after a Q1 beat-and-raise and the StackAI acquisition, despite a 50% YTD share price decline. Agentic AI capabilities from StackAI enhance ASAN's workflow automation, positioning it as an end-to-end solution in modern IT. ASAN faces material risks: sub-100% net retention rates and vulnerability from seat-based pricing amid AI-driven workforce reductions.
SAN FRANCISCO--(BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), the operating system for human-agent teams, today announced that Asana’s executives will present at the following investor events:
Bank of America 2026 Global Technology Conference on June 2, 2026 at 10:40 a.m. PT / 1:40 p.m. ET Baird 2026 Global Consumer, Technology & Services Conference on June 4, 2026 at 6:40 a.m. PT / 9:40 a.m. ET Asana Investor Webinar: OS for Human-Agent Teams - Strategy and Innovation Showcase on June 8, 2026 at 7:00 a.m. PT / 10:00 a.m. ET A live webcast will be available on Asana’s website at https://investors.asana.com.
About Asana
Asana is the operating system for human-agent teams. Built on the Enterprise Work Graph and 18 years of multiplayer architecture, Asana is where an organization’s humans and agents run critical workflows together - from a shared plan, with shared memory, all under enterprise-grade governance. Learn more at asana.com.
Agentic Work Management solves the AI productivity gap; Organizations can run critical work with humans and agents on the same plan, with the same context, under the same governance
Asana announces next generation AI Teammates purpose-built for industries and Asana Dash, an AI Chief of Staff for every user that knows your individual goals, priorities and what needs your attention
New apps coming soon: Asana Service Management for IT, Command by Asana for Builders, and Asana Client Management for Professional Services
LONDON--(BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN) today unveiled the operating system for human-agent teams: a new product suite designed to help organizations run critical work with humans and AI agents working from the same plan, with the same context, under the same governance — unlocking enterprise productivity at scale. Announced at the Work Innovation Summit in London, the launch marks Asana’s most significant product evolution to date.
The launch arrives at a pivotal moment for enterprises. Today, 75% of knowledge workers use AI on the job*, yet only 5% of companies report meaningful productivity gains**. This is what Asana calls the AI productivity gap, and it comes down to four reasons:
Hard to get started: It's hard for teams to discover the right agents and visualize their current processes and workflows. Agents aren't team players: There is no framework for individuals to interact with agents in multiplayer mode alongside the rest of their team. Agents lack context: Most agents aren't onboarded with the context of how their teams operate, prior decisions, or what their priorities are. Hard to govern: CIOs and IT leaders are concerned about agents operating with unchecked data access and no cost oversight. Organizations need an operating layer on top, a place where humans and agents run critical workflows together.
This is what Asana can deliver today.
What’s new
Agentic Work Management is Asana's easy button for AI productivity across every team. Built to close the AI gap, it delivers in several key ways: supercharging teams with ready-to-go agents, eliminating the busywork that slows every team down, and making sure every individual always knows their next best action.
Agentic Work Management enabled by a new generation of teammates
Agentic Work Management introduces a new way to use Asana, with agents enabled for every layer of the business:
For personal use, an AI Chief of Staff - called Asana Dash - that understands each user’s goals, priorities, and the work that needs attention across teams and tools. It captures follow-ups from meetings, Slack threads, and email, turns them into structured work in the Work Graph, and connects users to the right AI Teammates for specific tasks and projects to move work forward. For teams, AI Teammates are now more capable, more connected, and easier to adopt, with a new chat-based front door, in-product recommendations, a Skills library for repeatable work, and integrations across Gmail, Outlook, Slack, HubSpot, Figma, Canva, and more. Because they operate in a shared system with memory of past decisions and working patterns, each workflow starts with more context and gets sharper over time. For specific industries where teams rely on deeply specialized workflows, Asana is expanding its portfolio of AI Teammates with pre-built, industry-specific agents for high-value workflows in manufacturing, retail, and other industries. Each arrives pre-onboarded to the work it supports, helping teams get value faster. With StackAI, Agentic Work Management extends across enterprise systems
With StackAI, acquired in May 2026, customers can extend Agentic Work Management beyond the Work Graph into the systems where work actually happens. AI Studio, AI Teammates, and StackAI together let customers orchestrate complex, multi-step workflows across CRMs, ERPs, collaboration tools, support systems, contracts, databases, and custom infrastructure — not just within Asana. Teams can plan work, coordinate humans and agents through one shared system, and execute across the enterprise with the context, governance, and handoffs production use demands.
New applications coming soon: the OS packaged for the teams that need it most
Asana is packaging its operating system for the teams whose work is most dependent on coordinated execution.
Asana Service Management unifies ticketing and project execution for IT, HR, facilities, and other service teams to resolve key issues without human touch. A self-learning knowledge base improves deflection over time. When a request needs another team involved, Asana can move from ticket to project without losing context, something legacy ITSM tools structurally cannot do. Command by Asana is a planning and product development system for humans and agents to work in sync. Specs write themselves from context across past tickets, PRs, meetings, and notes. Releases hold because engineering managers can model their backlog against release dates and run what-if scenarios across capacity and velocity without the spreadsheets. Leaders can ask a question or check the live dashboard to see what's off track, why, and which dependencies are hidden. Asana Client Management runs the full agency lifecycle in one system. Deliver every client a branded portal where all communication lives in one place, keeping them informed and aligned from intake through delivery. AI agents handle the work that slows teams down: capacity planning, SOW creation, asset production, status drafts. And, with a live view of project and client health, resourcing decisions happen before problems surface, not after. "For 18 years, Asana has solved one of the hardest problems in business: helping teams coordinate at scale across goals, decisions, and handoffs. The foundation we built - the Enterprise Work Graph, shared memory, multiplayer coordination, and governance - is precisely what the agentic era requires. Asana's OS is how AI moves from helping individuals work faster to supercharging entire organizations," said Dan Rogers, CEO of Asana.
“Many vendors are repositioning around AI agents, but layering agents onto coordination-centric systems does not address the core challenge of enterprise execution. As organizations move toward more dynamic, cross-system workflows, the need is shifting from coordination to Adaptive Work Orchestration, where humans and AI operate against shared context, with embedded governance and continuous visibility. Asana’s Agentic Work Management approach reflects this shift, combining a structured work graph with orchestration capabilities to support execution across people, systems, and intelligent agents at scale,” says Riana Barnard, Industry Analyst at Frost & Sullivan.
Customers adopting Agentic Work Management
FedEx has deployed AI Studio and AI Teammates across marketing and sales, driving a 9x improvement in speed to market and generating hundreds of thousands of dollars in annual operational savings. In marketing, FedEx consolidated intake from more than 24 forms into a single intelligent workflow using AI Studio, with AI Teammates drafting go-to-market plans and creative briefs, reducing planning cycles from weeks to days and reclaiming over 1,200 hours annually. In sales enablement, intake review time dropped from 90 minutes to 30 minutes, with automated portfolios handling cross-region launch sequencing in real time to optimize seller capacity. At the leadership level, AI Teammates generated summaries and status updates providing 100% visibility into global initiatives, and reclaiming over 300 hours previously spent on manual alignment.
COS, the global fashion brand within the H&M Group, used AI Studio and AI Teammates to transform campaign production across marketing, ecommerce, and regional teams worldwide - cutting campaign setup time by 90%, doubling asset output to more than 1,000 assets per campaign, and eliminating nearly 3,000 hours of annual manual work. As COS put it: "Asana hasn't merely improved our processes - it has redefined how we work."
Asana's Work Innovation Summit comes to London today
Leaders and practitioners from around the world are gathering in London today for Asana's Work Innovation Summit - a day of fresh ideas, hands-on learning, and meaningful connection about how to build the agentic enterprise. Attendees get hands-on time with the latest capabilities and direct access to the peers and experts shaping how humans and agents work together. For more information or to watch on-demand visit here.
Availability
Agentic Work Management, including AI Teammates and AI Studio, is available today. Asana Dash, Asana Service Management, Command by Asana, and Asana Client Management will be made available in phases over the coming months. For the latest information visit asana.com/ai.
About Asana
Asana is the operating system for human-agent teams. Built on the Enterprise Work Graph® and 18 years of multiplayer architecture, Asana is where an organization’s humans and agents run critical workflows together - from a shared plan, with shared memory, backed by enterprise-grade governance. Learn more at asana.com.
*Microsoft and LinkedIn, 2024 Work Trend Index Annual Report: AI at Work Is Here. Now Comes the Hard Part, May 8, 2024.
**Boston Consulting Group, The Widening AI Value Gap, September 30, 2025.
Asana, Inc. (NYSE: ASAN)(LTSE: ASAN) today unveiled the operating system for human-agent teams: a new product suite designed to help organizations run critical work with humans and AI agents working from the same plan, with the same context, under the same governance — unlocking enterprise productivity at scale. Announced at the Work Innovation Summit in London, the launch marks Asana’s most significant product evolution to date.
The launch arrives at a pivotal moment for enterprises. Today, 75% of knowledge workers use AI on the job*, yet only 5% of companies report meaningful productivity gains**. This is what Asana calls the AI productivity gap, and it comes down to four reasons:
Hard to get started: It's hard for teams to discover the right agents and visualize their current processes and workflows. Agents aren't team players: There is no framework for individuals to interact with agents in multiplayer mode alongside the rest of their team. Agents lack context: Most agents aren't onboarded with the context of how their teams operate, prior decisions, or what their priorities are. Hard to govern: CIOs and IT leaders are concerned about agents operating with unchecked data access and no cost oversight. Organizations need an operating layer on top, a place where humans and agents run critical workflows together.
This is what Asana can deliver today.
What’s new
Agentic Work Management is Asana's easy button for AI productivity across every team. Built to close the AI gap, it delivers in several key ways: supercharging teams with ready-to-go agents, eliminating the busywork that slows every team down, and making sure every individual always knows their next best action.
Agentic Work Management enabled by a new generation of teammates
Agentic Work Management introduces a new way to use Asana, with agents enabled for every layer of the business:
For personal use, an AI Chief of Staff - called Asana Dash - that understands each user’s goals, priorities, and the work that needs attention across teams and tools. It captures follow-ups from meetings, Slack threads, and email, turns them into structured work in the Work Graph, and connects users to the right AI Teammates for specific tasks and projects to move work forward. For teams, AI Teammates are now more capable, more connected, and easier to adopt, with a new chat-based front door, in-product recommendations, a Skills library for repeatable work, and integrations across Gmail, Outlook, Slack, HubSpot, Figma, Canva, and more. Because they operate in a shared system with memory of past decisions and working patterns, each workflow starts with more context and gets sharper over time. For specific industries where teams rely on deeply specialized workflows, Asana is expanding its portfolio of AI Teammates with pre-built, industry-specific agents for high-value workflows in manufacturing, retail, and other industries. Each arrives pre-onboarded to the work it supports, helping teams get value faster. With StackAI, Agentic Work Management extends across enterprise systems
With StackAI, acquired in May 2026, customers can extend Agentic Work Management beyond the Work Graph into the systems where work actually happens. AI Studio, AI Teammates, and StackAI together let customers orchestrate complex, multi-step workflows across CRMs, ERPs, collaboration tools, support systems, contracts, databases, and custom infrastructure — not just within Asana. Teams can plan work, coordinate humans and agents through one shared system, and execute across the enterprise with the context, governance, and handoffs production use demands.
New applications coming soon: the OS packaged for the teams that need it most
Asana is packaging its operating system for the teams whose work is most dependent on coordinated execution.
Asana Service Managementunifies ticketing and project execution for IT, HR, facilities, and other service teams to resolve key issues without human touch. A self-learning knowledge base improves deflection over time. When a request needs another team involved, Asana can move from ticket to project without losing context, something legacy ITSM tools structurally cannot do. Command by Asanais a planning and product development system for humans and agents to work in sync. Specs write themselves from context across past tickets, PRs, meetings, and notes. Releases hold because engineering managers can model their backlog against release dates and run what-if scenarios across capacity and velocity without the spreadsheets. Leaders can ask a question or check the live dashboard to see what's off track, why, and which dependencies are hidden. Asana Client Management runs the full agency lifecycle in one system. Deliver every client a branded portal where all communication lives in one place, keeping them informed and aligned from intake through delivery. AI agents handle the work that slows teams down: capacity planning, SOW creation, asset production, status drafts. And, with a live view of project and client health, resourcing decisions happen before problems surface, not after. "For 18 years, Asana has solved one of the hardest problems in business: helping teams coordinate at scale across goals, decisions, and handoffs. The foundation we built - the Enterprise Work Graph, shared memory, multiplayer coordination, and governance - is precisely what the agentic era requires. Asana's OS is how AI moves from helping individuals work faster to supercharging entire organizations," said Dan Rogers, CEO of Asana.
“Many vendors are repositioning around AI agents, but layering agents onto coordination-centric systems does not address the core challenge of enterprise execution. As organizations move toward more dynamic, cross-system workflows, the need is shifting from coordination to Adaptive Work Orchestration, where humans and AI operate against shared context, with embedded governance and continuous visibility. Asana’s Agentic Work Management approach reflects this shift, combining a structured work graph with orchestration capabilities to support execution across people, systems, and intelligent agents at scale,” says Riana Barnard, Industry Analyst at Frost & Sullivan.
Customers adopting Agentic Work Management
FedEx has deployed AI Studio and AI Teammates across marketing and sales, driving a 9x improvement in speed to market and generating hundreds of thousands of dollars in annual operational savings. In marketing, FedEx consolidated intake from more than 24 forms into a single intelligent workflow using AI Studio, with AI Teammates drafting go-to-market plans and creative briefs, reducing planning cycles from weeks to days and reclaiming over 1,200 hours annually. In sales enablement, intake review time dropped from 90 minutes to 30 minutes, with automated portfolios handling cross-region launch sequencing in real time to optimize seller capacity. At the leadership level, AI Teammates generated summaries and status updates providing 100% visibility into global initiatives, and reclaiming over 300 hours previously spent on manual alignment.
COS, the global fashion brand within the H&M Group, used AI Studio and AI Teammates to transform campaign production across marketing, ecommerce, and regional teams worldwide - cutting campaign setup time by 90%, doubling asset output to more than 1,000 assets per campaign, and eliminating nearly 3,000 hours of annual manual work. As COS put it: "Asana hasn't merely improved our processes - it has redefined how we work."
Asana's Work Innovation Summit comes to London today
Leaders and practitioners from around the world are gathering in London today for Asana's Work Innovation Summit - a day of fresh ideas, hands-on learning, and meaningful connection about how to build the agentic enterprise. Attendees get hands-on time with the latest capabilities and direct access to the peers and experts shaping how humans and agents work together. For more information or to watch on-demand visit here.
Availability
Agentic Work Management, including AI Teammates and AI Studio, is available today. Asana Dash, Asana Service Management, Command by Asana, and Asana Client Management will be made available in phases over the coming months. For the latest information visit asana.com/ai.
About Asana
Asana is the operating system for human-agent teams. Built on the Enterprise Work Graph® and 18 years of multiplayer architecture, Asana is where an organization’s humans and agents run critical workflows together - from a shared plan, with shared memory, backed by enterprise-grade governance. Learn more at asana.com.
*Microsoft and LinkedIn, 2024 Work Trend Index Annual Report: AI at Work Is Here. Now Comes the Hard Part, May 8, 2024.
**Boston Consulting Group, The Widening AI Value Gap, September 30, 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604472500/en/
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Public SaaS valuations have compressed over two years while private equity dry powder and strategic acquirer balance sheets remain robust, and that gap matters. Mid-cap software names with mature recurring revenue, expanding free cash flow, and decelerating top-line growth appeal to both private equity (PE) sponsors and stack-consolidating strategics. Three names stand out as 2026 takeover candidates: Asana (NYSE:ASAN | ASAN Price Prediction), Freshworks (NASDAQ:FRSH), and PagerDuty (NYSE:PD).
Our ranking criteria:
Depressed market cap relative to annual recurring revenue (ARR) Improving free cash flow (FCF) (PE-attractive) Slowing organic growth (needs strategic owner) Founder or CEO transitions Active buybacks signaling boardroom belief in undervaluation Credible strategic acquirers with obvious stack fit 3. Freshworks Freshworks is the strongest standalone story of the trio, which paradoxically makes it the least probable target. Q1 2026 revenue grew 16% year-over-year to $228.6 million, while its non-GAAP operating margin came in at 17.9%, and net dollar retention rate held steady at 106%. The Employee Experience (EX) segment surged 27% to over $540 million in ARR, bolstered by strong generative AI adoption, with Freddy AI Copilot customer growth exceeding 80% year-over-year. Management also continued aggressively returning capital to shareholders, repurchasing $45.4 million of Class A stock during the quarter under its ongoing buyback program.
Shares trade at $9.55, down 38.7% over the past year, against a market cap of $2.6 billion and EV/Revenue of 2.5x. The forward P/E is near 17x. Strategic fit is clean for Salesforce, Oracle, IBM, or Adobe looking to slot a mid-market CRM/ITSM suite below their enterprise SKUs. PE rollup of mid-market SaaS is plausible. Here’s the catch: Indian operational base adds cross-border considerations, and the largest cap of the trio means the biggest check. Management appears intent on remaining independent.
2. Asana Asana checks the founder-transition box. Co-founder Dustin Moskovitz stepped aside; Dan Rogers is now CEO. Q1 FY27 revenue grew 9.5% year over year to $205.09 million, non-GAAP EPS hit $0.10, and free cash flow inflected to $34.35 million. Shares jumped 14% on the earnings report. Asana repurchased $44.99 million of stock in Q1, with more than $150 million still authorized.
Logical strategic acquirers include Salesforce, ServiceNow, Microsoft, and Atlassian, each gaining a work-management layer plus AI Studio, AI Teammates, and StackAI assets that Rogers calls “the operating system for human-agent teams.” The catch is governance: Moskovitz retains super-voting shares and has been a heavy personal buyer. Any deal requires his blessing, making hostile bids or pure PE take-privates structurally difficult without his consent. Net retention at 96% and a year-to-date price drop of 41.9% make the valuation tempting at 2.4x EV/Revenue.
1. PagerDuty PagerDuty is the textbook setup. Market cap of $717 million is the smallest of the trio and easiest check for a strategic takeover. Revenue grew just 1.0% year over year to $120.97 million in Q1 FY27, ARR is flat at $496 million, and net retention slipped to 97% from 104%. Growth deceleration from 6.5% to 1.0% over four quarters forces a board to consider strategic alternatives.
The cash-flow profile strengthens the thesis. Q1 FCF reached $41.19 million, non-GAAP operating margin expanded to 24.6%, and PagerDuty posted its fourth consecutive quarter of GAAP profitability. A fresh $100 million buyback was authorized, with $65.46 million deployed in Q1. EV/Revenue of 1.6x against EBITDA of $39.4 million is the multiple that leveraged buyout (LBO) models target.
CEO transition closes the loop: Jennifer Tejada stepped down, and John DiLullo took over. New leadership typically gets 12 to 18 months to reaccelerate growth or run a process. Strategic fit is obvious: ServiceNow (incident management adjacency), Atlassian (Jira/Opsgenie consolidation), Datadog (observability stack), Cisco (post-Splunk extension), or IBM. Enterprise customers including BCG, CoreWeave, GM, Palo Alto Networks, Vodafone, Nvidia, and Anthropic deepen the strategic moat. PE take-private math also works given the FCF base. Shares are down 37.7% over the past year despite a 29.4% one-week rally, suggesting the market is pricing in optionality.
The Consolidation Backdrop Private market SaaS multiples have held up far better than public ones, fueling the arbitrage behind any 2026 deal wave. PagerDuty fits every box: small enough to swallow, profitable enough to lever, slow enough to need a parent, and led by a brand-new CEO whose first job is defining a path forward. Asana sits one step behind because Moskovitz controls timing. Freshworks remains the standalone. All three are setups. No deals have been announced; each remains a speculative scenario, with PagerDuty representing the cleanest setup.
Aquatic Capital Management LLC bought a new stake in Installed Building Products, Inc. (NYSE: IBP) in the undefined quarter, according to its most recent disclosure with the SEC. The fund bought 31,946 shares of the construction company's stock, valued at approximately $7,880,000. Aquatic Capital Management LLC owned approximately 0.12% of Installed Building Products
Shares of Installed Building Products, Inc. (NYSE: IBP - Get Free Report) have earned a consensus recommendation of "Reduce" from the thirteen research firms that are covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and one has issued a buy rating on
Representative David Taylor (Republican-Ohio) recently bought shares of The Home Depot, Inc. (NYSE: HD). In a filing disclosed on March 20th, the Representative disclosed that they had bought between $1,001 and $15,000 in Home Depot stock on March 12th. The trade occurred in the Representative's "DAVID TAYLOR TRUST > SARDINIA READY MIX 401(K) - DAVE" account.
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and Installed Building Products (IBP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Holcim Ltd Unsponsored ADR has a Zacks Rank of #2 (Buy), while Installed Building Products has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HCMLY likely has seen a stronger improvement to its earnings outlook than IBP has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HCMLY currently has a forward P/E ratio of 18.12, while IBP has a forward P/E of 23.67. We also note that HCMLY has a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IBP currently has a PEG ratio of 3.54.
Another notable valuation metric for HCMLY is its P/B ratio of 2.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IBP has a P/B of 10.23.
These metrics, and several others, help HCMLY earn a Value grade of B, while IBP has been given a Value grade of D.
HCMLY sticks out from IBP in both our Zacks Rank and Style Scores models, so value investors will likely feel that HCMLY is the better option right now.
SG Americas Securities LLC boosted its position in shares of Installed Building Products, Inc. (NYSE:IBP – Free Report) by 107.3% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 9,227 shares of the construction company’s stock after acquiring an additional 4,777 shares during the period. SG Americas Securities LLC’s holdings in Installed Building Products were worth $2,393,000 at the end of the most recent quarter.
A number of other large investors also recently modified their holdings of the company. Eminence Capital LP increased its stake in Installed Building Products by 48.5% in the 2nd quarter. Eminence Capital LP now owns 945,101 shares of the construction company’s stock worth $170,421,000 after acquiring an additional 308,717 shares during the last quarter. Bamco Inc. NY increased its holdings in shares of Installed Building Products by 8.5% in the 2nd quarter. Bamco Inc. NY now owns 481,039 shares of the construction company’s stock worth $86,741,000 after buying an additional 37,595 shares during the last quarter. First Trust Advisors LP raised its position in shares of Installed Building Products by 2.4% during the 3rd quarter. First Trust Advisors LP now owns 399,510 shares of the construction company’s stock valued at $98,543,000 after buying an additional 9,489 shares in the last quarter. Ameriprise Financial Inc. raised its position in shares of Installed Building Products by 84.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 276,690 shares of the construction company’s stock valued at $49,893,000 after buying an additional 126,435 shares in the last quarter. Finally, TD Asset Management Inc lifted its holdings in shares of Installed Building Products by 2,169.2% in the 3rd quarter. TD Asset Management Inc now owns 271,938 shares of the construction company’s stock valued at $67,076,000 after acquiring an additional 259,954 shares during the last quarter. Hedge funds and other institutional investors own 99.61% of the company’s stock.
Installed Building Products Price Performance NYSE IBP opened at $268.48 on Friday. The firm’s fifty day simple moving average is $300.47 and its two-hundred day simple moving average is $277.04. The company has a current ratio of 3.03, a quick ratio of 2.44 and a debt-to-equity ratio of 1.20. Installed Building Products, Inc. has a 12-month low of $150.83 and a 12-month high of $349.00. The firm has a market capitalization of $7.24 billion, a P/E ratio of 27.59, a P/E/G ratio of 3.72 and a beta of 1.97.
Installed Building Products (NYSE:IBP – Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The construction company reported $3.24 EPS for the quarter, topping the consensus estimate of $2.83 by $0.41. The business had revenue of $747.50 million during the quarter, compared to the consensus estimate of $738.97 million. Installed Building Products had a net margin of 8.93% and a return on equity of 43.71%. The business’s revenue for the quarter was down .4% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.88 earnings per share. Analysts forecast that Installed Building Products, Inc. will post 10.66 EPS for the current fiscal year.
Installed Building Products Dividend Announcement The business also recently disclosed a special dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were issued a $1.80 dividend. This represents a dividend yield of 63.0%. The ex-dividend date of this dividend was Friday, March 13th. Installed Building Products’s payout ratio is 16.03%.
Analyst Upgrades and Downgrades Several research analysts recently commented on the company. Royal Bank Of Canada lifted their price target on Installed Building Products from $203.00 to $255.00 and gave the stock an “underperform” rating in a research report on Friday, February 27th. Jefferies Financial Group raised their price objective on Installed Building Products from $230.00 to $259.00 and gave the company a “hold” rating in a research note on Monday, December 15th. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $245.00 target price on shares of Installed Building Products in a report on Tuesday, January 13th. Benchmark downgraded Installed Building Products from a “buy” rating to a “hold” rating in a research report on Wednesday, February 11th. Finally, DA Davidson increased their price target on Installed Building Products from $252.00 to $270.00 and gave the company a “neutral” rating in a report on Wednesday, March 18th. Ten research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $265.20.
Check Out Our Latest Report on Installed Building Products
Insider Transactions at Installed Building Products In other Installed Building Products news, CEO Jeffrey W. Edwards sold 400,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $314.06, for a total value of $125,624,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,727,819 shares of the company’s stock, valued at approximately $542,638,835.14. The trade was a 18.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Janet E. Jackson sold 1,410 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $293.31, for a total value of $413,567.10. Following the completion of the sale, the director owned 5,373 shares in the company, valued at approximately $1,575,954.63. This represents a 20.79% decrease in their position. The disclosure for this sale is available in the SEC filing. 16.20% of the stock is owned by corporate insiders.
About Installed Building Products (Free Report)
Installed Building Products, Inc (NYSE: IBP) is a leading national installer of specialty building products serving the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a comprehensive range of interior and exterior finishing services, including insulation, drywall finishing, protective coatings and basement waterproofing systems. By offering a single-source solution, Installed Building Products helps streamline project coordination and ensures consistent service quality across multiple trades.
Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products has expanded from a regional insulation installer into a nationwide platform operating in nearly every state.
Further Reading Five stocks we like better than Installed Building Products Want to see what other hedge funds are holding IBP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Installed Building Products, Inc. (NYSE:IBP – Free Report).
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Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Arcosa (ACA) and Installed Building Products (IBP). But which of these two stocks offers value investors a better bang for their buck right now?
COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the “Company”) (NYSE: IBP), an industry-leading installer of insulation and complementary building products, announced today that the Company will release its first quarter 2026 financial results on May 7, 2026. A webcast and conference call will be held that same day at 10:00 a.m. (Eastern Time) to review the Company's results. Webcast: The conference call will be available on the investor relations section of the Company's we.
Hillman Solutions (NASDAQ:HLMN – Get Free Report) and Installed Building Products (NYSE:IBP – Get Free Report) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Profitability This table compares Hillman Solutions and Installed Building Products’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Hillman Solutions 2.60% 9.57% 4.91% Installed Building Products 8.93% 43.71% 14.58% Earnings & Valuation This table compares Hillman Solutions and Installed Building Products”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Hillman Solutions $1.55 billion 1.13 $40.31 million $0.21 42.52 Installed Building Products $2.97 billion 2.80 $265.40 million $9.73 31.74 Installed Building Products has higher revenue and earnings than Hillman Solutions. Installed Building Products is trading at a lower price-to-earnings ratio than Hillman Solutions, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk Hillman Solutions has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.
Analyst Ratings This is a breakdown of recent ratings and target prices for Hillman Solutions and Installed Building Products, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Hillman Solutions 0 3 4 0 2.57 Installed Building Products 2 9 1 0 1.92 Hillman Solutions presently has a consensus price target of $11.33, suggesting a potential upside of 26.91%. Installed Building Products has a consensus price target of $259.70, suggesting a potential downside of 15.91%. Given Hillman Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Hillman Solutions is more favorable than Installed Building Products.
Institutional and Insider Ownership 98.1% of Hillman Solutions shares are owned by institutional investors. Comparatively, 99.6% of Installed Building Products shares are owned by institutional investors. 4.9% of Hillman Solutions shares are owned by company insiders. Comparatively, 16.2% of Installed Building Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary Installed Building Products beats Hillman Solutions on 10 of the 14 factors compared between the two stocks.
About Hillman Solutions (Get Free Report)
Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.
About Installed Building Products (Get Free Report)
Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the United States. It operates through Installation, Distribution, and Manufacturing operation segments. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems. Further, it distributes spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation, as well as accessories and equipment used in the insulation installation process; and manufactures cellulose insulation and specialty industrial fibers. It serves homebuilders, multi-family and commercial and agricultural construction firms, individual homeowners, and repair and remodeling contractors. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.
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COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights (Comparisons are to Prior Year Period) Net revenue decreased 3.5% to $660.5 million Installation revenue decreased 5.8% to $609.8 million, including sales from IBP's recent acquisitions Other revenue, net of elimina.
Installed Building Products (IBP - Free Report) came out with quarterly earnings of $1.79 per share, missing the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -14.25%. A quarter ago, it was expected that this residential insulation installer would post earnings of $2.8 per share when it actually produced earnings of $3.24, delivering a surprise of +15.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Installed Building Products, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $660.5 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.04%. This compares to year-ago revenues of $684.8 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Installed Building Products shares have added about 15.5% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Installed Building Products?While Installed Building Products has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Installed Building Products was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.00 on $760.04 million in revenues for the coming quarter and $11.48 on $2.99 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Southland Holdings (SLND - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This infrastructure construction company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -462.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Southland Holdings' revenues are expected to be $175 million, down 26.9% from the year-ago quarter.
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Jacobs Solutions (J - Free Report) and Installed Building Products (IBP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Jacobs Solutions has a Zacks Rank of #2 (Buy), while Installed Building Products has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that J likely has seen a stronger improvement to its earnings outlook than IBP has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
J currently has a forward P/E ratio of 17.66, while IBP has a forward P/E of 26.08. We also note that J has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IBP currently has a PEG ratio of 3.90.
Another notable valuation metric for J is its P/B ratio of 4.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IBP has a P/B of 11.44.
These metrics, and several others, help J earn a Value grade of B, while IBP has been given a Value grade of D.
J sticks out from IBP in both our Zacks Rank and Style Scores models, so value investors will likely feel that J is the better option right now.
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COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the “Company” or “IBP”) (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced the acquisition of Diamond Energy Systems, Inc. (“DESI”). With headquarters in St. Joseph, MN, DESI specializes in mechanical insulation with the majority of its sales derived from retrofit work between industrial and commercial applications. “DESI adds approximately $12 million of annual revenue.
Installed Building Products, Inc. (the âCompanyâ or âIBPâ) (NYSE: IBP), an industry-leading installer of insulation and complementary building products
On June 10, 2026, Installed Building Products Inc IBP shares fell 5.0% to $195.65, continuing a trend that has seen the stock decline 24.0% year-to-date. Over the past year, the stock has experienced a high of $349.00 and a low of $162.56.
GF Value™ verdict: Current price of $195.65 is 13.2% below GF Value™ of $225.50.GF Score™ of 96/100 indicates a strong overall performance and potential for long-term returns.Insider activity shows that insiders bought $0.8M worth of shares in the last three months, suggesting confidence in the company's future. Is IBP Overvalued or Undervalued? With a current price of $195.65 and a GF Value™ estimate of $225.50, Installed Building Products Inc appears to be undervalued by approximately 13.2%. This margin of safety suggests a potential opportunity for investors, particularly in a market where many stocks are trading at inflated valuations. The GF Valuation label indicates that the stock is considered "Modestly Undervalued," implying that while it is not a bargain, it presents a favorable risk-reward scenario.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current share price is significantly lower than the GF Value™, it may present an opportunity for long-term investors; however, it is essential to consider market conditions and company performance moving forward.
How Does IBP's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)20.9x22.3x Forward P/E19.1xN/A The current P/E ratio of 20.9x is 6% below its 5-year median P/E of 22.3x, indicating that the stock is trading at a lower valuation compared to its historical average. This P/E analysis agrees with the GF Value™ verdict of being undervalued, further supporting the notion that IBP may be a more attractive investment at its current price.
What Does IBP's GF Score™ Tell Us? MetricRating GF Score™96/100 Financial Strength7/10 Profitability10/10 Growth9/10 Valuation10/10 Momentum7/10 The GF Score™ of 96/100 reflects a strong overall performance, particularly in the areas of Profitability (10/10) and Valuation (10/10), indicating that IBP has robust profit margins and is attractively priced. However, the Financial Strength score of 7/10 suggests there may be some areas for improvement, though it is still a solid rating. Overall, the combination of high scores in key areas positions IBP favorably for long-term investors.
What Are Insiders Doing with IBP Stock? Insider activity for Installed Building Products Inc has shown a positive trend, with insiders purchasing $0.8 million worth of shares over the past three months. This buying activity indicates that those closest to the company have confidence in its future performance and prospects, which can often be a bullish signal for potential investors. There has been no selling activity reported, further reinforcing the positive outlook from insiders.
What This Means for Investors Based on the analysis of GF Value™, Installed Building Products Inc appears to be undervalued at its current price of $195.65. With a strong GF Score™ and positive insider activity, there may be favorable conditions for potential growth in the stock. However, investors should remain aware of market fluctuations and the overall economic environment.
For the complete analysis, visit the Installed Building Products Inc IBP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is IBP's GF Score™?
IBP's GF Score™ is 96/100, indicating a strong overall performance and potential for higher long-term returns based on various performance metrics.
Is IBP overvalued or undervalued?
IBP is currently undervalued, with a GF Value™ of $225.50 compared to its current price of $195.65, suggesting a margin of safety.
What is IBP's P/E ratio?
IBP's P/E (TTM) is 20.9x, which is 6% below its 5-year median P/E of 22.3x, indicating the stock is trading at a lower valuation compared to its historical average.
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].
With a $17-billion bet on TopBuild Corp. NYSE: BLD, QXO Inc. NYSE: QXO is positioning itself to be one of the biggest building products companies in the country. Besides a direct investment in QXO, investors might take a hard turn away from QXO and look at one of the biggest competitors, Installed Building Products, Inc. NYSE: IBP.
While QXO's in-progress acquisition of rival TopBuild has garnered the most headlines, the company is truly on a shopping spree: it has already finished two other major acquisitions in the last year or so (Beacon Roofing Supply and Kodiak Building Partners, totaling more than $13 billion). The company is deploying capital in a hugely aggressive manner. The question for investors is whether QXO's plan to consolidate will pay off and allow the company to meet an ambitious $50-billion annual revenue goal in the next few years, or whether it is setting itself up for disaster.
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The Bullish Case for QXOQXO's major business-to-business building materials operations are part of a fragmented industry representing a total addressable market of hundreds of billions of dollars. It makes sense for a company that already has diversified operations within this space to attempt to consolidate, as QXO is doing. Indeed, after completing the TopBuild purchase, QXO will be a dominant player in everything from waterproofing to roofing to insulation.
QXO Today
$16.50 +1.44 (+9.58%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$14.75▼
$27.61Price Target$31.14
The process could easily more than double QXO's annual revenue ($6.8 billion in fiscal 2025) and may bring its combined adjusted EBITDA up to $2 billion. This is thanks to TopBuild's growth record: the company noted more than 17% in year-over-year (YOY) quarter sales growth and a strong earnings beat for the Q1 2026 period.
One of the reasons for TopBuild's growth—and a potential justification for QXO's decision to target the firm for acquisition—is its involvement in the data center business. Given how crucial thermal management is for AI data center applications, TopBuild is increasingly vital for its insulation work, and QXO may be able to capitalize on an easily-overlooked part of the AI infrastructure industry that does not actually involve any of the technology itself.
QXO is also highly optimistic about the integration process itself, anticipating some $300 million in synergies in just the next four years. This could go a long way to reversing QXO's losses—the firm posted losses per share of 12 cents for the latest quarter—and helping to establish profitability. This may also be why analysts are so optimistic, seeing about 100% in potential upside for QXO stock and assigning 15 Buy ratings out of 17 overall ratings in recent months.
The Bear Case Against QXOThe profitability hurdle is a big one. Q1's adjusted EBITDA margin was a paltry 0.1% (on adjusted EBITDA of about $1.2 million against $1.7 billion in quarterly revenue), which means that QXO will be relying very heavily on a profitability catalyst in the TopBuild acquisition. The integration process is likely to be complex, particularly given a softer construction market, and QXO faces plenty of execution risks in the coming quarters.
With shares down about 20% in 2026, QXO's valuation prospect is more attractive for investors than it was just months ago. Still, given the relatively high price of the TopBuild acquisition (about 15x adjusted EBITDA), QXO's decision to utilize a $3-billion leveraged loan in its financing package means that its balance sheet is stretched even further in the process. The share price decline this year may be less a sign of improved valuation and more a red flag about investor concern with the company's aggressive moves. Add to this an uncertain housing market that will undoubtedly have an impact on the broader building industry, and the acquisition seems less and less a sure thing.
The Alternative Play: IBPInstalled Building Products Today
IBP
Installed Building Products
$207.34 +11.69 (+5.97%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$162.56▼
$349.00Dividend Yield0.75%
P/E Ratio22.10
Price Target$247.67
Investors might opt to avoid QXO altogether and seek a rival like IBP, which is already profitable and enjoying strong cash flow as of the latest quarter.
IBP has many of the benefits of TopBuild in its own insulation installation and building products distribution businesses, but does not face the same acquisition and integration risks that QXO does.
On top of this, IBP could be positioned to benefit if the QXO/TopBuild deal faces hurdles, given that it is a direct competitor and could gain market share if clients decide to look elsewhere.
To be sure, IBP comes with its own challenges—analysts are cautious, with the majority calling IBP shares a Hold—but the unique circumstances with QXO may prompt investor interest.
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As the building landscape evolves in 2026, investors are weighing the stability of infrastructure and housing. Choosing between Concrete Pumping (BBCP +4.21%) and Installed Building Products (IBP +6.06%) requires a look at their specific niches.
Concrete Pumping provides essential heavy equipment and waste management services for large-scale projects, while Installed Building Products focuses on the interior finishes of residential and commercial structures. Both companies benefit from construction activity but serve different phases of the building cycle.
The case for Concrete PumpingConcrete Pumping operates a large fleet of specialized equipment across the United States and the United Kingdom. It provides essential pumping services for commercial and infrastructure projects and offers waste management solutions through its Eco-Pan brand. The company maintains a highly diversified customer base, as its top 10 clients account for less than 10% of total revenue. It is a significant player among construction stocks due to its wide geographic reach and specialized equipment.
During FY 2025, the company reported revenue of nearly $392.9 million, a decrease of approximately 7.7% from the previous year. This decline contributed to a net income of about $6.4 million. The resulting net margin, which measures how much profit a company keeps from every dollar of sales, was approximately 1.6%.
Based on the October 2025 balance sheet, the debt-to-equity ratio is approximately 1.5x, calculated as total debt divided by shareholders’ equity. The current ratio, which compares short-term assets to short-term liabilities, is roughly 2.2x. During the same period, the company generated free cash flow of nearly $17.5 million, the cash remaining after operating costs and equipment upgrades.
Installed Building Products functions as a leading contractor for the installation of insulation and other building products for residential and commercial builders. The company manages more than 250 locations across the country and employs over 10,000 workers. Its customer base includes many national and regional homebuilders, with the top 10 customers accounting for approximately 14% of its total revenue. Customer concentration like this adds a layer of risk to the business.
In FY 2025, the company achieved revenue of approximately $3 billion, reflecting slight growth of approximately 1% over the prior year. Net income for the period reached nearly $265.4 million. This resulted in a net margin of roughly 8.9%, indicating the percentage of revenue that remains as profit after all expenses are paid.
According to the December 2025 balance sheet, the debt-to-equity ratio is approximately 1.5x. The current ratio is roughly 3.0x, suggesting a strong ability to cover immediate financial obligations. Free cash flow for the year was nearly $300.8 million, which helps the company fund its ongoing acquisition strategy and return capital to shareholders.
Risk profile comparisonThe business for Concrete Pumping faces risks from the cyclical nature of construction, where spending on infrastructure and commercial projects can fluctuate significantly. High levels of debt, totaling nearly $425 million, may also limit financial flexibility during economic downturns. Additionally, the company relies on a small number of equipment manufacturers and faces currency risks from its operations in the United Kingdom.
Demand for Installed Building Products is heavily dependent on new residential housing starts, making the company vulnerable to shifts in mortgage rates or housing affordability. The company also faces supplier concentration risks, as it buys a significant portion of its fiberglass materials from just three large manufacturers. Furthermore, a large portion of the balance sheet consists of goodwill and intangible assets, which could lead to non-cash charges if the value of acquired businesses declines.
Valuation comparisonInstalled Building Products appears more attractively priced because it trades at a lower Forward P/E relative to its future earnings estimates than Concrete Pumping.
MetricConcrete PumpingInstalled Building ProductsSector BenchmarkForward P/E63.0x20.2x29.8xP/S ratio1.4x1.9xSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?The outlook for the construction industry in the U.S. is cautiously optimistic for 2026, stemming largely from growth in data center and renewable energy projects.
However, the single-family construction market is facing significant headwinds in the U.S. this year, as inflation and a generally poor consumer outlook among most Americans are tempering the sector. Multifamily housing starts are a positive, however.
For Installed Building Products, that combination of factors, along with poor weather, led to the business missing out on opportunities and seeing a revenue decline of about 4% in the first quarter compared to the same period in 2025.
Concrete Pumping Holdings is less reliant on the housing market. The business also has significant exposure to infrastructure projects, which acted as a tailwind as it started 2026. In its most recently reported quarter, sales increased 14% to nearly $107 million thanks to a robust pipeline of infrastructure projects in the U.S., including roads and bridges. The U.K. market, however, is challenging, given the country’s economic malaise.
Concrete Pumping is the largest player in the U.S. and U.K. in concrete supply, and it has been aggressive in acquiring competitors to expand its footprint. The company has made 16 acquisitions in the past 10 years. Another positive, Concrete Pumping owns its global fleet of concrete delivery equipment, insulating it from rental price hikes.
The forward price-to-earnings ratio for Concrete Pumping is much higher than that of Integrated Building Products, but Concrete Pumping gets the nod for management’s continued focus on growing revenue while maintaining discipline over costs. Given the weak U.S. housing market, Industrial Building Products is likely to face an uphill climb this year.
Even without anticipating a rebound in the U.S. residential building market, Concrete Pumping management says it can inch net income higher in 2026. Wall Street analysts expect net income to rise 30% to a still-modest $8.5 millon for the fiscal year.
LOWELL, Ark.--(BUSINESS WIRE)--J.B. Hunt Transport Services, Inc.'s (NASDAQ: JBHT) President of Dedicated Contract Services and Executive Vice President Brad Hicks and Senior Vice President of Operations for J.B. Hunt Truckload Josh Phelan will address the Bank of America 33rd Annual Industrials, Transportation & Airlines Key Leaders Conference in New York, New York, at 10:20 a.m. EDT on Tuesday, May 12, 2026. President of Intermodal and Executive Vice President Darren Field will address th.
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Stock to Watch: JB Hunt (JBHT - Free Report) J.B. Hunt Transport Services is a provider of a wide range of transportation, brokerage, and delivery services to a diverse group of customers through the United States, Canada and Mexico. Founded in 1961, JBHT is based in Lowell, AR. J.B. Hunt's fiscal year coincides with the calendar year. As of Dec 31, 2025, JBHT had 31,750 employees, which consisted of 21,554 company drivers, 8,481 office personnel, 1,374 maintenance technicians, and 341 delivery and material assistants.
JBHT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Transportation stock. JBHT has a Momentum Style Score of A, and shares are up 9.7% over the past four weeks.
For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $7.27 per share. JBHT boasts an average earnings surprise of +6.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, JBHT should be on investors' short list.
LOWELL, Ark.--(BUSINESS WIRE)--J.B. Hunt Transport Services Inc. (Nasdaq: JBHT), one of the largest supply chain solutions providers in North America, announced today it has been included in the Dow Jones Best‑in‑Class North America Index following S&P Global's 2025 Corporate Sustainability Assessment (CSA). J.B. Hunt was previously included in the North American Dow Jones Sustainability Index, the predecessor to the Dow Jones Best-in-Class Indices, a family of global, regional and country.
J.B. Hunt Transport Services, Inc. (JBHT) Presents at Bank of America 33rd Annual Industrials, Transportation and Airlines Key Leaders Conference Transcript
Transportation stocks are rarely the most exciting names on Wall Street.
They don't instigate the same kind of excitement you might find in artificial intelligence or biotech stocks, but railroads, logistics firms, and freight operators consistently move trillions of dollars' worth of goods around the world. And there's nothing boring about that.
In fact, in 2026, there are two transportation stocks in particular that really stand out thanks to improving margins, pricing power, infrastructure advantages, and most importantly, lower exposure to surging fuel costs.
Image source: Getty Images.
Less than a truckload For years, FedEx (FDX +5.87%) struggled with bloated costs, uneven margins, and an overly complicated operational structure.
In response, management spent the last several years aggressively streamlining the business through network consolidation, facility optimization, and large-scale cost-cutting efforts. As a result, the numbers have started to improve.
FedEx recently reported fiscal Q2 2026 earnings of $4.82 per share, beating analyst expectations by roughly 17%, while raising full-year adjusted EPS guidance to between $17.80 and $19.00.
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But that's just the beginning.
One thing that's making FedEx more attractive is its FedEx Freight spinoff.
If you're unfamiliar, FedEx Freight specializes in "less-than-truckload" shipping, meaning it combines smaller shipments from multiple customers onto the same truck rather than dedicating an entire trailer to a single load.
FedEx Freight is expected to generate roughly $8.7 billion in annual revenue while targeting operating margins around 12%, making it one of the strongest less-than-truckload freight businesses in North America.
This is also the result of the company being less exposed to fuel-price volatility, because fuel surcharges are built into much of its shipping network.
In other words, when diesel or jet fuel prices rise sharply, FedEx often offsets part of that increase by charging customers more rather than absorbing the full cost itself. With oil prices likely to remain elevated for the foreseeable future due to geopolitical tensions and global supply uncertainty, this is not trivial.
Meanwhile, FedEx stock has surged more than 70% over the past year as investors rotate back into industrial and logistics stocks.
That combination of improving margins, restructuring execution, and freight-network scale is why FedEx remains one of the best transportation stocks in 2026.
Intermodal advantage In an environment where fuel prices are likely to remain elevated for most of the year, J.B. Hunt Transport Services (JBHT +2.99%) could become one of the biggest beneficiaries in the freight industry.
That's because the company focuses heavily on intermodal shipping, which combines trucking and rail transportation to improve fuel efficiency and lower shipping costs.
Instead of relying entirely on long-haul trucking, freight containers are moved long distances by rail and then transferred to trucks for local delivery, significantly reducing diesel consumption. And right now, demand for intermodal shipping is rising as higher fuel costs and tighter trucking capacity push more freight customers toward rail-based transportation.
J.B. Hunt recently reported first-quarter 2026 revenue of $3.06 billion, up 5% year over year, while operating income climbed 16%. Earnings per share jumped 27% to $1.49.
The company's intermodal division remains its largest profit driver, generating approximately $1.5 billion in quarterly revenue. Operating income in the segment rose 21% year over year.
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But again, you can't understate rising fuel costs here.
In recent earnings commentary, management specifically noted growing "road-to-rail conversion" as customers attempt to reduce transportation expenses amid higher diesel prices.
Unlike airlines or pure trucking operators, J.B. Hunt could actually benefit from higher fuel prices if more freight customers migrate toward intermodal solutions.
That positioning is exactly why the stock stands out in 2026.
Indeed, transportation stocks rarely generate the excitement of AI stocks or biotech start-ups.
But they often provide something equally important: established businesses with durable infrastructure, real cash flow, and pricing power.
In 2026, FedEx stands out due to its restructuring turnaround and logistics scale, while J.B. Hunt can actively capitalize on rising demand for intermodal shipping as fuel prices remain elevated.
These are not speculative moonshots. These are mature transportation businesses with durable infrastructure, real cash flow, and proven operating models that can safely handle extended fuel price volatility and even benefit from it to some degree.
A month has gone by since the last earnings report for JB Hunt (JBHT - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is JB Hunt due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for J.B. Hunt Transport Services, Inc. before we dive into how investors and analysts have reacted as of late.
Earnings Beat at J.B. Hunt in Q1J.B. Hunt Transport Services reported posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
Intermodal revenues increased to $1.50 billion, up 2% year over year, while operating income climbed 21% to $114.5 million. Loads rose 3% to 536,852, highlighted by record fiscal first-quarter volume and a record weekly load count in March. Management characterized demand strength as broad-based and credited service execution and network reliability for continued road-to-rail conversion, particularly in the eastern network.
The company noted a split in volume trends: transcontinental loads were flat, while eastern network loads increased 7% compared with the prior-year period. Revenue per load was $2,803, modestly lower year over year, with the metric excluding fuel surcharge down 2%. Even so, profitability improved as network efficiency gains reduced empty container moves and container storage expense, and productivity improved in drayage. Weather-related disruptions and higher insurance costs partially offset those benefits.
JBHT Sees Mixed Highway Results as Costs Shift Up
Dedicated Contract Services produced steady gains, with revenues of $841 million, up 2% and operating income of $87.4 million, up 9%. Productivity improved 2%, while average trucks were essentially flat. Customer retention improved to roughly 96%, and management pointed to a strengthening sales pipeline as tighter truckload conditions renewed interest in dedicated solutions. The company also highlighted that start-up expenses can rise as new accounts are onboarded, which can influence profit timing even when sales momentum improves.
Integrated Capacity Solutions remained the most pressured area. Revenues rose 20% to $323 million on 10% volume growth and a 9% increase in revenue per load. However, the segment posted an operating loss of $4.7 million compared with a $2.7 million loss a year ago as purchased transportation costs rose sharply with changing capacity dynamics. Gross profit declined 6% and gross margin compressed to 12% from 15.3%, even as operating expenses excluding purchased transportation fell 1%, reflecting productivity gains.
Truckload revenues increased 23% to $205 million and operating income improved 33% to $2.7 million. Loads rose 19% and revenue per load increased, supported by improved asset utilization, with trailer turns up 15% and trailing equipment up modestly year over year. Management noted, however, that the tight truckload market and higher fuel prices late in the quarter made conditions tougher for independent contractors, pushing the business to rely more on third-party capacity. That dynamic contributed to higher purchased transportation expenses and a decline in gross profit despite the strong top-line growth.
Final Mile Services continued to work through a previously disclosed customer loss. Revenues declined 6% to $188 million, but operating income increased 53% to $7.2 million, reflecting improved revenue quality, lower personnel costs and reduced insurance claims expense.
J.B. Hunt Highlights Balance Sheet Flexibility and Capital Plan
The company reiterated its full-year net capital expenditure plan of $600 million to $800 million, with Dedicated growth opportunities expected to be a key swing factor within that range. J.B. Hunt ended the quarter with $1.30 billion of total debt compared with $1.47 billion at the end of 2025.
Cash and cash equivalents were $4.6 million at the quarter's end. Operating cash flow was $353 million and net capital expenditures were $70.7 million. The company repurchased about 383,000 shares for approximately $80 million, leaving roughly $888 million under its repurchase authorization, and noted a recent dividend increase approved earlier in the year.
JBHT Leans on Productivity as the Cycle Turns
Management framed the quarter as a meaningful shift in the freight backdrop compared with the past few years, citing a tighter truckload market driven primarily by supply exiting the industry alongside early signs of demand improvement. That tightening supported better bid-season conversations, more frequent “mini bids” and an increased focus by shippers on execution quality and reliability.
Operational discipline remained the central theme. The company emphasized progress on its initiative to remove structural costs, noting more than $30 million eliminated during the quarter and pointing to year-over-year margin expansion despite weather disruption and several inflationary pressures, including higher insurance and medical costs. Elevated fuel prices were also a factor, described largely as a pass-through that can dilute margin percentages even when profit dollars are protected.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresCurrently, JB Hunt has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, JB Hunt has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
JBHT Burns Rubber, Hits the Highway to a $300 Price TagExecutives from J.B. Hunt Transport Services NASDAQ: JBHT said freight-market conditions are tightening, but they attributed much of the shift to capacity leaving the market rather than a broad-based demand rebound.
Speaking at a Bank of America transportation conference, Brad Hicks, executive vice president and president of Dedicated Contract Services, said the company has seen “strength” begin in the fourth quarter and persist into the current year, with spot-market pricing changes beginning to move into contract freight. However, Hicks said demand has remained largely steady.
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AI Broke the Trucks: 3 Transports to Buy After the AI Panic“We’re not really seeing any demand lift,” Hicks said. “Now, I wouldn’t suggest that we’ve seen a fall in demand. I think it’s been pretty steady.”
Josh Phelan, senior vice president of truckload operations, said the “capacity tightness is real,” adding that supply-side changes that began in the fourth quarter continued into the first quarter rather than easing seasonally.
Regulatory enforcement cited as a driver of capacity exits Is Landstar the Next Big Winner in Transportation Stocks?Hicks pointed to several regulatory and enforcement-related factors that he said are contributing to capacity leaving the trucking market. These included state-by-state actions affecting non-domiciled drivers, enforcement of English language proficiency rules, enforcement against cabotage involving Mexican and Canadian-based carriers running domestic freight, and pressure on driver training schools and electronic logging device providers.
“There’s not new laws, it’s really more around the enforcement,” Hicks said. He described the process as a “slower drip” rather than a sudden removal of capacity.
Phelan said the supply correction appears to be “on solid footing” and is making its way into customer markets, though he said the major unknown remains demand. He said demand appears “marginally better,” but supply is the main driver of rates.
Andrew Hall from investor relations said food demand remains good, industrial demand “feels okay,” and purchasing managers’ index data has improved for four months. However, he said J.B. Hunt would not characterize the overall demand environment as robust. He also said housing, a key potential beneficiary for truckload demand, has not shown enough movement to create enthusiasm.
Rates expected to rise, with timing varying by business J.B. Hunt executives said the rate environment has improved. Phelan said the company is seeing bid activity outside the normal cycle and that “the ability to raise rates exists again for the first time in 3 or 4 years.”
Hicks said truckload and brokerage market rates could be “at or north of 20%” over a two-year stack through this cycle and into next year’s bid cycle. Phelan said double-digit increases could be achieved in the back half of bid season, though those would not represent a full calendar-year rate increase.
For Dedicated Contract Services, Hicks said annual rate movement is typically governed by contract terms and generally falls in the 2% to 4% range. He said he would expect roughly 3% to 3.5% as contracts adjust, though certain cost pressures, including driver wages, could require separate customer conversations.
Hicks said driver markets have begun tightening in certain regions, including Texas and parts of the Rust Belt such as Ohio, Indiana and Michigan. He said J.B. Hunt has reintroduced some sign-on bonuses after two years without them, although Hall said those bonuses are limited to a handful of cities and are “small dollars” compared with past extremes.
Dedicated pipeline at record levels In Dedicated Contract Services, Hicks said J.B. Hunt’s sales target remains 800 to 1,000 net tractor additions. While the fleet was flat in the first quarter due to downsizing at some accounts and a couple of losses, Hicks said the pipeline is at record levels.
He said J.B. Hunt added 40 new names to its dedicated portfolio last year, which he described as an important entry point for future growth. Hicks said the company remains disciplined about the kind of dedicated business it accepts and is not seeking to build “capacity fleets” that could quickly shift back to one-way freight when market conditions change.
Hicks also highlighted the company’s focus on improving profitability and lowering its cost to serve. He said J.B. Hunt has increased its run-rate savings to $130 million from the $100 million run rate discussed in the fourth quarter.
“We do feel like we have to continue to repair our margins,” Hicks said.
Intermodal growth tied to service, fuel and truckload comparisons On intermodal, executives said revenue per load has been affected largely by mix, with faster growth in the Eastern network than in Transcontinental lanes. Hall said Eastern network growth involves shorter lengths of haul, which lowers revenue per load.
Hicks said J.B. Hunt has taken rate on headhaul lanes but has had to give rate on backhaul lanes, muting the overall pricing effect. He said intermodal may not see a meaningful opportunity to move rates until the next bid cycle, unlike truckload and brokerage, where more frequent bid opportunities exist.
Executives said the Eastern network is benefiting from strong rail service and remains more directly competitive with truckload. Hall said intermodal historically offers a 10% to 15% discount to truckload in the East, and with current fuel levels, that discount is pushing 20% to 25%.
Hicks said that if shippers are facing higher brokerage rates, higher truckload rates and elevated diesel prices, they should be looking to convert more freight to intermodal. He said J.B. Hunt has invested in capacity and has room to grow before adding more containers.
Technology and brokerage profitability remain priorities Executives also discussed technology initiatives, including automation and artificial intelligence. Hicks said J.B. Hunt is using technology as part of a broader business transformation, with AI helping the company solve problems faster and more efficiently.
Phelan said AI is being used and developed in brokerage for load prioritization, carrier matching, and track-and-trace functions. In the asset and drop-trailer business, he said AI could help improve demand forecasting, dwell management, empty-move decisions and trailer turns.
In Integrated Capacity Solutions, Phelan said the brokerage unit saw 10% volume growth in the first quarter, but gross margin was squeezed by the tighter truckload market. He said the company does not plan for ICS to lose money and expects repricing through bid season and spot opportunities to support gross margin.
Asked about potential rail mergers, Hicks said J.B. Hunt is confident in its leadership position regardless of the outcome, citing its relationships with rail partners and its role in the shipping market. Phelan added that if the objective is to expand the overall intermodal market, that would be positive for J.B. Hunt as the market leader.
Summing up the market backdrop, Hicks said: “Steady as she goes. Rates are going up.”
About J.B. Hunt Transport Services NASDAQ: JBHTJ.B. Hunt Transport Services, Inc is a leading provider of transportation and logistics solutions headquartered in Lowell, Arkansas. The company offers a comprehensive suite of services designed to move freight efficiently across North America, including intermodal, dedicated contract services, full truckload, less-than-truckload (LTL), final mile delivery and specialized transport.
In its intermodal segment, J.B. Hunt leverages a network of rail and truck assets to transport containers and trailers on major U.S.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in J.B. Hunt Transport Services Right Now?Before you consider J.B. Hunt Transport Services, you'll want to hear this.
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Stock to Watch: JB Hunt (JBHT - Free Report) J.B. Hunt Transport Services is a provider of a wide range of transportation, brokerage, and delivery services to a diverse group of customers through the United States, Canada and Mexico. Founded in 1961, JBHT is based in Lowell, AR. J.B. Hunt's fiscal year coincides with the calendar year. As of Dec 31, 2025, JBHT had 31,750 employees, which consisted of 21,554 company drivers, 8,481 office personnel, 1,374 maintenance technicians, and 341 delivery and material assistants.
JBHT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Transportation stock. JBHT has a Momentum Style Score of B, and shares are up 2.2% over the past four weeks.
10 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.14 to $7.27 per share. JBHT also boasts an average earnings surprise of +6.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, JBHT should be on investors' short list.
JBHT Burns Rubber, Hits the Highway to a $300 Price TagJ.B. Hunt Transport Services NASDAQ: JBHT executives said intermodal demand remains “pretty good,” with volume gains driven more by company-specific share wins than by a broadly robust freight market, during a Wolfe Research conference session moderated by Scott Group, managing director and senior analyst at Wolfe Research.
Darren Field, president of intermodal and executive vice president at J.B. Hunt, said the company is busy with customers, but he stopped short of describing the broader supply chain environment as especially strong.
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AI Broke the Trucks: 3 Transports to Buy After the AI Panic“I think it’s just steady,” Field said. “I think our execution and the way that J.B. Hunt has gone about business over the last two or three years is earning share.”
Field said customers are not showing signs of panic about meeting supply chain needs heading into the fall. Instead, he said J.B. Hunt’s growth has been supported by service execution and opportunities to convert highway freight to intermodal, particularly in the Eastern network.
Eastern Intermodal Network Remains a Growth Driver Is Landstar the Next Big Winner in Transportation Stocks?Group noted that J.B. Hunt’s March intermodal volumes rose 8% and asked whether that strength was continuing into the second quarter. Field said the company would not “anchor” on March, calling it a “great month,” but said demand for the company’s product remains strong.
Field said J.B. Hunt has seen particular success in the Eastern network, where the company continues to convert truckload freight to intermodal. He said customers have been looking to hedge against higher truckload rates by securing intermodal capacity and savings earlier.
“I think our view is that J.B. Hunt specific share gain is having success, particularly in the Eastern network,” Field said.
In the first quarter, Group said local East volumes were up 7%, while transcontinental volumes were flat. Field said the Eastern network has “foundational growth” from higher truckload prices and improved service. He added that transcontinental comparisons were affected by prior-year pre-shipping ahead of tariffs and rerouting related to potential East Coast labor disruption.
Field said the second quarter may provide an opportunity for transcontinental growth because May and June import volumes through the West Coast were “really pretty poor” in the prior year.
Capacity and Rail Service Seen as Supportive Field said J.B. Hunt and its rail providers have capacity available if stronger intermodal volume growth materializes. He said rail service across the company’s provider network has been “excellent” for multiple quarters.
“If double digit volume growth came at our Intermodal network? Absolutely. I feel like capacity is available and ready to handle that,” Field said.
He said J.B. Hunt’s responsibility is to provide rail partners with strong forecasting, plan new business implementations carefully and communicate ahead of volume increases so that the network is not surprised.
Field also said customer conversations around peak season have not yet shown urgency. He said customers are not expressing negative expectations for the holiday shopping season, but they also are not broadly asking J.B. Hunt to put peak-season capacity programs in place.
Pricing Opportunity Emerging, But Lag Remains On pricing, Field said J.B. Hunt is in a normal lag period between rising truckload rates and eventual intermodal pricing improvement. He said the company pays closer attention to truckload contract rates than spot rates.
Field said that in the Eastern network, J.B. Hunt’s intermodal pricing, inclusive of fuel surcharge, has shifted from a 15% discount to truckload to about a 20% discount over the past six to eight weeks. He said that widening gap is a signal of pricing opportunity.
“I think you do have to be in the 15% discount range in the East to really have sticky conversion from highway to Intermodal and keep that business,” Field said.
He said Western pricing behaves differently because it is less tied to the truckload market and more influenced by all-water shipping costs, intact international intermodal and some truckload capacity. Field also said backhaul pricing remains “ultra-competitive,” while some West Coast headhaul pricing packages have been more competitive than expected.
Field said the company has seen early signs of driver wage pressure, including a growing need for drivers in dedicated and intermodal operations and the use of sign-on bonuses. He said pricing improvements in the freight market will likely find their way to drivers.
Dedicated, Brokerage and Truckload Units Show Momentum Andrew Hall, senior director of finance at J.B. Hunt, said the company’s Dedicated Contract Services pipeline has strengthened in recent months, with improvement in both customer size and industry breadth. He said J.B. Hunt added 40 new customer names to its Dedicated portfolio last year.
Hall said Dedicated has delivered double-digit operating margins for more than 10 years, but investors should expect to see a couple of quarters of fleet growth before new business flows through to operating income.
Hall also highlighted growth in other businesses:
JBT: Hall said the segment has posted four straight quarters of double-digit growth and has outgrown the market over that span. ICS: Hall said the brokerage business has faced a challenging few years, but had 10% volume growth in the first quarter and has been successful so far during bid season. Dedicated: Hall said the company targets 800 to 1,000 net truck sales annually and had 285 in the first quarter after 385 at the end of last year. Hall said he expects the Dedicated fleet to return to growth this year, which would support modest operating income growth for the full year.
Executives Address Competition, Regulation and Margin Goals Field said Amazon’s activity in intermodal was not new, noting that Amazon entered the industry during COVID, bought containers and has been a supply chain services provider for years. He said J.B. Hunt has competed with Amazon and remains confident in its service quality and consistency.
On autonomous trucks, Field said they could complement intermodal rather than threaten it, particularly because one end of every intermodal load is a rail yard that could eventually be mapped for autonomous operations. He said J.B. Hunt still needs to understand the cost and operational requirements of autonomous truck service.
Field also addressed driver-related regulatory issues, saying J.B. Hunt has more than 22,000 drivers and about 300 in the non-domiciled category. He said the issue is not a significant headwind for the company, though he noted the broader industry could face a larger impact, citing “maybe as many as 200,000 drivers.”
On margins, Field said J.B. Hunt has made progress from volume and cost improvements, while price has not yet contributed meaningfully. He said the company’s mission is to return intermodal margins to at least 10% and ultimately back within its long-term target range of 10% to 12%.
About J.B. Hunt Transport Services NASDAQ: JBHTJ.B. Hunt Transport Services, Inc is a leading provider of transportation and logistics solutions headquartered in Lowell, Arkansas. The company offers a comprehensive suite of services designed to move freight efficiently across North America, including intermodal, dedicated contract services, full truckload, less-than-truckload (LTL), final mile delivery and specialized transport.
In its intermodal segment, J.B. Hunt leverages a network of rail and truck assets to transport containers and trailers on major U.S.
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