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https://www.nbclosangeles.com/news/business/money-report/heres-what-coinbase-is-and-how-to-use-it-to-buy-and-sell-cryptocurrencies/2573035/

Coinbase has announced the launch of futures, perpetuals, and crypto options for professional investors in the United Kingdom. This expansion is facilitated through the Coinbase International Exchange and is geared towards professional clients rather than the general retail market. The offering includes over 170 contracts covering various asset classes, with specific options for crypto limited to calls, puts, and multi-leg strategies. This move comes after Coinbase received regulatory authorization in the UK to offer investment services and derivatives, indicating a strategic push to enhance its presence in the UK derivatives market.

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The launch is expected to influence market dynamics, with potential implications for Ethereum pricing. The introduction of derivatives could indicate increased market activity and demand, especially in the Ethereum segment, which might affect its future price trajectory. Current market activity reflects low probability estimates for Ethereum reaching notable price points by the end of 2026, suggesting cautious market sentiment despite this development.

Key Takeaways Coinbase’s new offering appears consistent with increased activity and demand in the UK derivatives market, potentially impacting Ethereum. Current market pricing suggests a cautious outlook on Ethereum reaching higher price thresholds by the end of 2026. The launch reflects Coinbase’s strategic expansion under UK regulatory oversight, covering a wide range of asset contracts. What to Watch Market participants will monitor how this expansion affects Ethereum pricing and overall market liquidity in the derivatives segment. Key developments include potential regulatory impacts as the UK’s cryptoasset regime evolves by October 2027. Observers should also watch for any shifts in institutional interest or volume that could indicate broader market reactions to Coinbase’s enhanced offerings.

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Term Structure

Contract Odds Δ since publish Volume 24h December 31, 2026 1.4% — — View market → December 31, 2026 2.5% — — View market → December 31, 2026 2.7% — — View market → December 31, 2026 4% — — View market → December 31, 2026 4.5% — — View market → January 1 2027 11% — — View market → January 1 2027 12% — — View market → January 1 2027 2.1% — — View market → January 1 2027 2.5% — — View market → January 1 2027 3.4% — — View market → January 1 2027 3.8% — — View market → January 1 2027 6.5% — — View market → January 1 2027 42.6% — — View market → January 1 2027 7.5% — — View market → January 1 2027 2.9% — — View market → January 1 2027 39.5% — — View market → January 1 2027 21% — — View market → January 1 2027 17.5% — — View market → January 1 2027 85% — — View market → January 1 2027 54.5% — — View market →

Genuit Group LON: GEN said first-half trading remained challenging amid subdued construction demand, higher polymer costs and uncertainty linked to the Middle East conflict, but maintained its full-year expectations after reported revenue rose 3% and underlying operating profit declined only modestly.

Chief Executive Officer Joe Vorih said the company had responded with “balanced cost and price action,” simplification initiatives and continued investment in growth areas including ventilation, water management and lower-carbon products. He said the group expects its simplification programme to generate more than £4 million in annualised savings, primarily from 2027 onward.

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First-half results and cash generation Chief Financial Officer Tim Pullen reported revenue growth of 3% on a reported basis, supported by acquisitions completed in 2025. On a like-for-like basis, revenue declined about 5%, though this improved from an approximately 8% decline reported in the four months to April.

Underlying operating profit was £43.9 million, down 1.6% from the prior year, while EBIT margin declined by around 70 basis points. Pullen said gross margins remained resilient, reflecting cost control and price management, although results were affected by a lag between polymer cost inflation in March and April and price increases that took effect in May.

Water represented about 70% of group revenue, while climate represented just under 30%. Housebuilding accounted for roughly one-third of revenue, with repair, maintenance and improvement representing nearly another third. Non-housing markets, including commercial, civil engineering and infrastructure, contributed about 27% of revenue. International operations represented around 10% of revenue. Cash conversion exceeded 70% in the first half, in line with normal seasonal phasing, and the company remains on track for more than 90% cash conversion for the full year. Net debt was about £190 million, resulting in leverage of 1.6 times, within Genuit’s targeted range of one to two times. The interim dividend was held at 4.2 pence per share.

Climate division affected by Adey issues Climate division revenue rose 2.4% on a reported basis but fell 8% on a like-for-like basis. Pullen said ventilation had been among the group’s stronger markets, helped by commercial demand, particularly from schools, and residential demand linked to addressing damp and mould in social housing.

That performance was offset by weaker demand in heating-related repair, maintenance and improvement activity. Genuit’s Adey business, which supplies water treatment and filtration products associated with heating systems, faced lower renovation and refurbishment activity during the period.

Adey also incurred two specific first-half issues: a £1.5 million slow-moving stock provision and a supplier issue with an approximately £0.8 million impact, including lost sales and remediation costs. Pullen said both matters had been root-caused and were not expected to recur in the second half.

Vorih said Adey remains a quality, high-market-share business and has products relevant to both boilers and heat pumps. He said hydronic systems require cleaning and protection regardless of the heat source.

Genuit also highlighted progress at Monodraught, the ventilation business acquired in 2025. Orders in the 11 months following the acquisition were up 24% compared with the equivalent pre-acquisition period, according to Vorih. The company has developed an interface box that connects Monodraught hybrid ventilation systems with Nuaire mechanical ventilation equipment, creating a combined offering for schools and other commercial buildings.

The product went on sale in June, with production shipments expected in September. The company received its first orders in July, totaling more than £1 million across two projects.

Water business, Davidson integration and stormwater opportunity Water division revenue increased about 4% on a reported basis and declined approximately 3% on a like-for-like basis. Genuit cited subdued residential demand and delays in civil engineering and infrastructure projects, which it attributed to weaker business confidence.

However, Manthorpe, Genuit’s Italian business and its Irish operations all grew year over year during the first half. Pullen said the Middle East operation, which experienced direct revenue loss when conflict escalated in March and April, had returned “pretty much” to normal by June.

The water business was particularly exposed to polymer inflation. Pullen said virgin polymer grades had experienced cost increases ranging from 10% to more than 30%, while recycled material costs had risen less sharply. Genuit spent about £80 million on polymers last year, including roughly £50 million on virgin polymer and £30 million on recycled material.

The company introduced double-digit price increases across around 60% of the business. Pullen said costs had stabilized at elevated levels, but the situation remained volatile and could require further management if inflation or deflation emerged.

Genuit is also accelerating the integration of the Davidson acquisition. Two of Davidson’s three sites will be closed and their operations consolidated into larger Genuit facilities by the end of 2026, with no loss of capacity expected. The action is a major contributor to the anticipated £4 million-plus annualised cost savings from 2027.

Vorih pointed to growing opportunity in stormwater management under the AMP8 water investment cycle. The group’s active quote bank in this area rose to £9 million from £2 million a year earlier. Genuit has begun delivering projects, including an order for Yorkshire Water, though Vorih said the opportunity would have a more material impact in 2027.

Regulation and outlook Management said regulatory and sustainability drivers were moving closer. Vorih highlighted the Future Homes Standard, which requires new housing permits to comply from March 2027, followed by the expiry of the main grace period a year later. He said some larger housebuilders have already begun adopting relevant solutions, including underfloor heating.

Genuit estimates that its revenue opportunity per home could rise from approximately £800 to £1,200 for conventional plastic plumbing to between two and three times that amount, and potentially as much as five times in configurations using products such as underfloor heating, mechanical ventilation with heat recovery, filtration and wastewater heat recovery.

The group also cited school rebuilding standards, Awaab’s Law, water-sector investment and increasing demand for Environmental Product Declarations. More than 60% of Genuit revenue is now covered by such declarations, according to Vorih, and the company aims to exceed 80% coverage.

Looking ahead, Genuit expects market conditions to remain difficult through the rest of 2026. However, it expects second-half margins to benefit from the full impact of pricing actions, the absence of the Adey operational issues and productivity gains. Management confirmed that full-year expectations remain unchanged.

About Genuit Group (LON:GEN)Genuit Group plc is the UK's largest provider of sustainable water, climate and ventilation products for the built environment. Genuit's solutions allow customers to mitigate and adapt to the effects of climate change and meet evolving sustainability regulations and targets. The Group is divided into three Business Units, each of which addresses specific challenges in the built environment: - Climate Management Solutions - Addressing the drivers for low carbon heating and cooling, and clean and healthy air ventilation.

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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Fourth quarter revenue increased 6% to $63.7 billion Fourth quarter GAAP1 diluted EPS increased 70% to $1.70 Excluding a one-time positive impact of $0.31 from the recognition of the IEEPA tariff refund, fourth quarter non-GAAP diluted EPS increased 25% to $2.60, with reported fourth quarter non-GAAP diluted EPS increasing 40% to $2.91 For fiscal year 2026, excluding the IEEPA tariff refund recognition, non-GAAP diluted EPS increased 33% to $10.95, with reported non-GAAP diluted EPS increasing 37% to $11.26 Fiscal year 2026 operating cash flow $5.2 billion and adjusted free cash flow $5.0 billion Incremental $350 million share repurchase completed, bringing fiscal year 2026 repurchase total to $1.4 billion, with $5.0 billion incremental repurchase authorization approved by board of directors Cardinal Health provides fiscal year 2027 non-GAAP EPS guidance2 of 13% to 15% growth3 ($12.40 to $12.60), above the Company's long-term EPS guidance , /PRNewswire/ -- Cardinal Health (NYSE: CAH) today reported fourth quarter fiscal year 2026 revenues of $63.7 billion, an increase of 6% from the fourth quarter of fiscal year 2025. Fourth quarter GAAP operating earnings increased 70% to $729 million and GAAP diluted earnings per share (EPS) increased 70% to $1.70.

Fourth quarter non-GAAP operating earnings increased 30% to $935 million. Non-GAAP diluted EPS increased 40% to $2.91, reflecting the increase in non-GAAP earnings, including the recognition of a one-time net operating profit impact of IEEPA tariff refunds of $100 million in the GMPD segment, a lower non-GAAP effective tax rate, and a lower share count, partially offset by an increase in interest and other expense.

Fiscal year 2026 revenues were $254.2 billion, a 14% increase from fiscal year 2025. GAAP operating earnings were $2.6 billion and GAAP diluted EPS was $7.23. Non-GAAP operating earnings increased 30% to $3.6 billion, driven by segment profit increases across all five operating segments. Non-GAAP diluted EPS increased 37% to $11.26 for the year, reflecting the increase in non-GAAP operating earnings across the business, including the recognition of a one-time net operating profit impact of IEEPA tariff refunds of $100 million in the GMPD segment, a lower non-GAAP effective tax rate, and a lower share count following in-year share repurchases, partially offset by an increase in interest and other expense.

"Fiscal 2026 was a standout year for Cardinal Health and I am pleased with our strong fourth quarter results," said Jason Hollar, CEO of Cardinal Health. "The broad-based operational strength for the year, with all five of our operating segments growing profit double-digits, even before recognition of IEEPA tariff recoveries in GMPD, reflects the disciplined execution of our strategy and our investments for growth. We enter Fiscal 2027 with momentum and confidence in our ability to deliver continued shareholder value creation."

Q4 and full year FY26 summary

Q4 FY26

Q4 FY25

Y/Y

FY26

FY25

Y/Y

Revenue

$63.7 billion

$60.2 billion

6 %

$254.2 billion

$222.6 billion

14 %

Operating earnings

$729 million

$428 million

70 %

$2.6 billion

$2.3 billion

15 %

Non-GAAP operating earnings

$935 million

$719 million

30 %

$3.6 billion

$2.8 billion

30 %

Net earnings attributable to Cardinal Health, Inc.

$398 million

$239 million

67 %

$1.7 billion

$1.6 billion

10 %

Non-GAAP net earnings attributable to Cardinal Health, Inc.

$682 million

$501 million

36 %

$2.7 billion

$2.0 billion

34 %

Effective Tax Rate

27.9 %

36.9 %

21.6 %

25.3 %

Non-GAAP Effective Tax Rate

22.5 %

26.3 %

19.0 %

23.3 %

Diluted EPS attributable to Cardinal Health, Inc.

$1.70

$1.00

70 %

$7.23

$6.45

12 %

Non-GAAP diluted EPS attributable to Cardinal Health, Inc.

$2.91

$2.08

40 %

$11.26

$8.24

37 %

Segment results

Pharmaceutical and Specialty Solutions segment

Q4 FY26

Q4 FY25

Y/Y

FY26

FY25

Y/Y

Revenue

$58.8 billion

$55.4 billion

6 %

$234.8 billion

$204.6 billion

15 %

Segment profit

$645 million

$535 million

21 %

$2.8 billion

$2.3 billion

23 %

Fourth quarter revenue for the Pharmaceutical and Specialty Solutions segment increased 6% to $58.8 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Pharmaceutical and Specialty Solutions segment profit increased 21% to $645 million in the fourth quarter, primarily driven by contributions from brand and specialty products and positive generics program performance.

Global Medical Products and Distribution segment

Q4 FY26

Q4 FY25

Y/Y

FY26

FY25

Y/Y

Revenue

$3.1 billion

$3.2 billion

(2) %

$12.7 billion

$12.6 billion

1 %

Segment profit

$150 million

$70 million

N.M.

$258 million

$135 million

91 %

Fourth quarter revenue for the Global Medical Products and Distribution segment decreased 2% from the prior year to $3.1 billion. This decrease was primarily driven by lower distribution volumes and the recognition of the expected IEEPA tariff refund repayment to customers, partially offset by Cardinal Health brand growth.

Global Medical Products and Distribution segment profit increased to $150 million in the fourth quarter, primarily driven by IEEPA tariff refunds.

Other4

Q4 FY26

Q4 FY25

Y/Y

FY26

FY25

Y/Y

Revenue

$1.7 billion

$1.6 billion

7 %

$6.8 billion

$5.4 billion

26 %

Segment profit

$183 million

$160 million

14 %

$707 million

$516 million

37 %

Fourth quarter revenue for Other increased 7% to $1.7 billion, driven by growth across the three operating segments: Nuclear and Precision Health Solutions, OptiFreight Logistics, and at-Home Solutions.

Other segment profit increased 14% to $183 million in the fourth quarter, driven by growth in OptiFreight Logistics and at-Home Solutions.

Fiscal year 2027 outlook2

The company released its fiscal year 2027 outlook for non-GAAP diluted EPS of +13% to +15% growth3 ($12.40 to $12.60).

Non-GAAP earnings per share

$12.40 to $12.60

Pharmaceutical and Specialty Solutions segment:

Revenue

3% to 5% growth

Segment profit

8% to 11% growth

Global Medical Products and Distribution segment:

  Revenue

2% to 4% growth

Segment profit

$200 million to $220 million

Other (NPHS, at-Home Solutions, OptiFreight Logistics):

  Revenue

11% to 13% growth

Segment profit

15% to 18% growth

Interest and other

$240 million to $290 million

Non-GAAP effective tax rate

19.0% to 20.0%

Diluted weighted average shares outstanding

~233 million

Share repurchases

~$1 billion

Capital Expenditures

~$700 million

Non-GAAP adjusted free cash flow

$3.5 billion to $4.0 billion

Financial guidance for fiscal year 2027 reflects the estimated impact of the Company's recently completed tuck-in acquisition of Strive Medical and the announced tuck-in acquisition of the Diabetes Health business of AdaptHealth.

Recent highlights

Cardinal Health recently completed an additional $350 million accelerated share repurchase program, bringing year-to-date share repurchases in fiscal year 2026 to $1.4 billion. Cardinal Health Board of Directors approved a $5.0 billion increase to the share repurchase program, bringing the total share repurchase authorization to $6.4 billion as of August 2026 Cardinal Health announces simplification of credit facilities with new $4.0 billion revolving credit facility replacing three historic facilities Cardinal Health announces long-term renewal of wholesaler distribution contract with Kroger New distribution center in Indianapolis set to open in 2027 featuring advanced robotics and automation, adding capacity and enabling operational flexibility Cardinal Health Board of Directors declared a regular quarterly dividend of $0.5158 per share, payable on October 15, 2026, to shareholders of record on October 1, 2026 Webcast

Cardinal Health will host a webcast today at 8:30 a.m. ET to discuss fourth quarter and full year results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required. 

Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day. Learn more about Cardinal Health at cardinalhealth.com and in our Newsroom.

Contacts

Media: Erich Timmerman, [email protected] and 614.757.8231
Investors: David Frost, [email protected] and 614.757.7852

1GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

2The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation. 

3Growth rates for fiscal year 2027 guidance based upon adjusted fiscal year 2026 results which exclude the fiscal year 2026 benefit from IEEPA tariff refund.

4Other includes the following three operating segments: Nuclear and Precision Health Solutions (NPHS), at-Home Solutions and OptiFreight Logistics, which are not significant enough individually to require reportable segment disclosure.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

Cautions Concerning Forward-Looking Statements

This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include our ability to manage uncertainties associated with the pricing of branded pharmaceuticals including those arising from proposed or final regulatory changes,  the risk that we may fail to achieve our strategic objectives, including the ongoing integration and operation of recently acquired entities and the continued execution of the GMPD Improvement Plan initiatives and ; risks and uncertainties related to tariffs, including the risk that we may not be able to offset increased costs; competitive pressures in Cardinal Health's various lines of business, including the risk that customers may reduce purchases made under their contracts with us or terminate or not renew their contracts, whether due to price increases or otherwise; risks associated with litigation matters, including Department of Justice investigations focused on potential violations of the Anti-Kickback Statute and False Claims Act; the risk that events outside of our control, such as weather or geopolitical events, including the recent conflict with Iran, may impact costs for our products or may cause supply delays or shortages or manufacturing delays that impact our cost and ability to fulfill customer demand; and the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8K reports and exhibits to those reports. This release reflects management's views as of August 11, 2026. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com.

Schedule 1

Cardinal Health, Inc. and Subsidiaries

Consolidated Statements of Earnings (Unaudited)

Fourth  Quarter

Fiscal Year

(in millions, except per common share amounts)

2026

2025

% Change

2026

2025

% Change

Revenue

$     63,672

$     60,159

6 %

$    254,248

$    222,578

14 %

Cost of products sold

61,112

57,957

5 %

244,474

214,410

14 %

Gross margin

2,560

2,202

16 %

9,774

8,168

20 %

Operating expenses:

Distribution, selling, general and administrative expenses

1,625

1,484

10 %

6,132

5,382

14 %

Restructuring and employee severance

40

27

106

88

Amortization and other acquisition-related costs

121

133

469

464

Acquisition-related cash and share-based compensation costs

44

106

287

126

Impairments and (gain)/loss on disposal of assets, net 1

4

33

177

18

Litigation (recoveries)/charges, net

(3)

(9)

(10)

(185)

Operating earnings

729

428

70 %

2,613

2,275

15 %

Other (income)/expense, net

(26)

(30)

(31)

(41)

Interest expense, net

79

74

7 %

348

215

62 %

Impairment of equity interest in Outcomes

122

—

122

—

Earnings before income taxes

554

384

44 %

2,174

2,101

3 %

Provision for income taxes 2

154

141

9 %

469

532

(12) %

Net earnings

400

243

65 %

1,705

1,569

9 %

Less: Net (earnings)/loss attributable to noncontrolling interests

(2)

(4)

9

(8)

Net earnings attributable to Cardinal Health, Inc.

$       398

$        239

67 %

$      1,714

$      1,561

10 %

Earnings per common share attributable to Cardinal Health, Inc.:

Basic

$      1.70

$       1.01

68 %

$        7.27

$        6.48

12 %

Diluted

1.70

1.00

70 %

7.23

6.45

12 %

Weighted-average number of common shares outstanding:

Basic

234

239

236

241

Diluted

235

240

237

242

1 Impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $184 million related to the Navista & ION reporting unit within the Pharma segment recorded in fiscal year ended 2026.

2 Provision for income taxes includes the tax effects relating to the cumulative goodwill impairment charges. For fiscal 2026, the net tax benefits related to the goodwill impairment charges was $23 million.

Schedule 2

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

June 30, 2026

June 30, 2025

Assets

Current assets:

Cash and equivalents

$         4,856

$         3,874

Trade receivables, net

13,815

13,242

Inventories, net

17,297

16,831

Prepaid expenses and other

2,764

2,414

Assets held for sale

21

12

Total current assets

38,753

36,373

Property and equipment, net

3,031

2,858

Goodwill and other intangibles, net

13,631

12,177

Other assets

1,884

1,714

Total assets

$        57,299

$        53,122

Liabilities and Shareholders' Deficit

Current liabilities:

Accounts payable

$        38,283

$        34,713

Current portion of long-term obligations and other short-term borrowings

1,882

550

Other accrued liabilities

3,739

3,634

Total current liabilities

43,904

38,897

Long-term obligations, less current portion

7,004

7,977

Deferred income taxes and other liabilities

9,115

8,882

Total shareholders' deficit

(2,724)

(2,634)

Total liabilities and shareholders' deficit

$        57,299

$        53,122

Schedule 3

Cardinal Health, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Fourth  Quarter

Fiscal Year

(in millions)

2026

2025

2026

2025

Cash flows from operating activities:

Net earnings

$          400

$          243

$        1,705

1,569

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

241

209

956

790

Impairments and (gain)/loss on sale of other investments, net

1

1

21

3

Impairment of equity interest in Outcomes

122

—

122

—

Impairments and (gain)/loss on disposal of assets, net

4

33

177

18

Share-based compensation

58

153

367

244

Provision for/(benefit from) deferred income taxes

91

243

91

243

Provision for bad debts

27

12

74

53

Change in operating assets and liabilities, net of effects from acquisitions and divestitures:

Increase in trade receivables

(193)

(466)

(408)

(833)

(Increase)/decrease in inventories

697

(607)

(488)

(1,816)

Increase in accounts payable

450

1,778

3,463

2,732

Repurchases of liability-classified Specialty Alliance Units

(18)

(19)

(45)

(19)

Other accrued liabilities and operating items, net

(188)

(60)

(861)

(587)

Net cash provided by operating activities

1,692

1,520

5,174

2,397

Cash flows from investing activities:

Acquisition of subsidiaries, net of cash acquired

(24)

(1,395)

(1,991)

(5,250)

Additions to property and equipment

(264)

(232)

(649)

(547)

Proceeds from disposal of property and equipment

—

—

31

3

Proceeds from investments

14

8

41

15

Proceeds from net investment hedge terminations

(6)

—

(13)

2

Proceeds from short-term investment in time deposit

—

—

—

200

Other investing items, net

(1)

(12)

(3)

(16)

Net cash used in investing activities

(281)

(1,631)

(2,584)

(5,593)

Cash flows from financing activities:

Proceeds from long-term obligations, net of issuance costs

(1)

800

990

3,669

Reduction of long-term obligations

(16)

(11)

(653)

(445)

Payments to noncontrolling interests, net

(3)

(5)

(11)

(12)

Net tax proceeds from share-based compensation

—

(1)

(79)

(13)

Dividends on common shares

(120)

(120)

(491)

(494)

Purchase of treasury shares

(350)

—

(1,358)

(765)

Net cash provided by/(used in) financing activities

(490)

663

(1,602)

1,940

Effect of exchange rates changes on cash and equivalents

(2)

(4)

(6)

(3)

Net increase/(decrease) in cash and equivalents

919

548

982

(1,259)

Cash and equivalents at beginning of period

3,937

3,326

3,874

5,133

Cash and equivalents at end of period

$        4,856

$        3,874

$        4,856

$        3,874

Schedule 4

Cardinal Health, Inc. and Subsidiaries

Segment Information (Unaudited)

Fourth Quarter

Pharmaceutical and Specialty Solutions

Global Medical Products and Distribution

Other

(in millions)

2026

2025

2026

2025

2026

2025

Revenue

Amount

$        58,848

$        55,372

$         3,128

$         3,199

$         1,721

$         1,609

Growth rate

6 %

— %

(2) %

3 %

7 %

37 %

Segment profit

Amount

$             645

$             535

$            150

$              70

$            183

$            160

Growth rate

21 %

11 %

N.M.

49 %

14 %

44 %

Segment profit margin

1.10 %

0.97 %

4.80 %

2.19 %

10.63 %

9.94 %

Fiscal Year

Pharmaceutical and Specialty Solutions

Global Medical Products and Distribution

Other

(in millions)

2026

2025

2026

2025

2026

2025

Revenue

Amount

$       234,833

$       204,644

$        12,719

$        12,636

$         6,792

$         5,382

Growth rate

15 %

(3) %

1 %

2 %

26 %

19 %

Segment profit

Amount

$           2,783

$           2,258

$             258

$             135

$           707

$           516

Growth rate

23 %

12 %

91 %

47 %

37 %

22 %

Segment profit margin

1.19 %

1.10 %

2.03 %

1.07 %

10.41 %

9.59 %

The sum of the components and certain computations may reflect rounding adjustments.

Schedule 5

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation1 (Unaudited)

Net

(Earnings)/

Loss

Gross

Operating

Earnings

Provision

Attributable

Net

Diluted

Margin

SG&A2

Earnings

Before

for

to Non-

Earnings3

Effective

EPS 3

(in millions, except per common share amounts)

Gross

Growth

Growth

Operating

Growth

Income

Income

Controlling

Net

Growth

Tax

Diluted

Growth

Margin

Rate

SG&A 2

Rate

Earnings

Rate

Taxes

Taxes

Interests

Earnings3

Rate

Rate

EPS 3

Rate

Fourth Quarter 2026

GAAP

$ 2,560

16 %

$ 1,625

10 %

$    729

70 %

$   554

$    154

$       (2)

$    398

67 %

27.9 %

$ 1.70

70 %

Restructuring and employee severance

—

—

40

40

9

—

31

0.13

Amortization and other acquisition-related costs

—

—

121

121

28

—

93

0.40

Acquisition-related cash & share-based compensation costs

—

—

44

44

3

—

41

0.18

Impairments and (gain)/loss on disposal of assets, net

—

—

4

4

3

—

1

—

Litigation (recoveries)/charges, net

—

—

(3)

(3)

(3)

—

—

—

Impairment of equity interest in Outcomes 4

—

—

—

122

3

—

119

0.51

Non-GAAP

$ 2,560

16 %

$ 1,625

10 %

$    935

30 %

$   882

$    198

$       (2)

$    682

36 %

22.5 %

$ 2.91

40 %

Fourth Quarter 2025

GAAP

$ 2,202

17 %

$ 1,484

16 %

$    428

7 %

$    384

$    141

$       (4)

$    239

2 %

36.9 %

$ 1.00

4 %

Restructuring and employee severance

—

—

27

27

6

—

21

0.09

Amortization and other acquisition-related costs

—

—

133

133

23

2

112

0.46

Acquisition-related cash & share-based compensation costs

—

—

106

106

1

4

109

0.45

Impairments and (gain)/loss on disposal of assets, net

—

—

33

33

9

—

24

0.10

Litigation (recoveries)/charges, net

—

—

(9)

(9)

(2)

—

(7)

(0.03)

Non-GAAP

$  2,203

17 %

$ 1,484

16 %

$    719

19 %

$    676

$    178

$        3

$    501

11 %

26.3 %

$ 2.08

13 %

1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

2 Distribution, selling, general and administrative expenses.

3 Attributable to Cardinal Health, Inc.

4 For fiscal 2026, we recognized a pre-tax impairment charge of $122 million related to our equity method investment in Outcomes due to an observed reduction in the estimated fair value of the business, which is included in impairment of equity interest in Outcomes in the consolidated statements of earnings. The net tax benefit related to this charge was $3 million and is included in the annual effective tax rate.

The sum of the components and certain computations may reflect rounding adjustments.

We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

Schedule 5

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation1 (Unaudited)

Net

(Earnings)/

Loss

Gross

Operating

Earnings

Provision

Attributable

Net

Diluted

Margin

SG&A2

Earnings

Before

for

to Non-

Earnings3

Effective

EPS 3

Gross

Growth

Growth

Operating

Growth

Income

Income

Controlling

Net

Growth

Tax

Diluted

Growth

(in millions, except per common share amounts)

Margin

Rate

SG&A 2

Rate

Earnings

Rate

Taxes

Taxes

Interests

Earnings3

Rate

Rate

EPS 3

Rate

Fiscal Year 2026

GAAP

$ 9,774

20 %

$ 6,132

14 %

$   2,613

15 %

$  2,174

$    469

$        9

$  1,714

10 %

21.6 %

$ 7.23

12 %

State opioid assessment related to prior fiscal years

—

17

(17)

(17)

(4)

—

(13)

(0.05)

Restructuring and employee severance

—

—

106

106

24

—

82

0.34

Amortization and other acquisition-related costs

—

—

469

469

120

—

349

1.47

Acquisition-related cash & share-based compensation costs

—

—

287

287

12

—

275

1.16

Impairments and (gain)/loss on disposal of assets, net 5

—

—

177

177

22

(23)

132

0.56

Litigation (recoveries)/charges, net

—

—

(10)

(10)

(19)

—

9

0.04

Impairment of equity interest in Outcomes 4

—

—

—

122

3

—

119

0.50

Non-GAAP

$ 9,774

20 %

$ 6,150

14 %

$   3,624

30 %

$  3,308

$    628

$      (13)

$  2,667

34 %

19.0 %

$ 11.26

37 %

Fiscal Year 2025

GAAP

$ 8,168

10 %

$ 5,382

8 %

$   2,275

83 %

$  2,101

$    532

$        (8)

$   1,561

83 %

25.3 %

$ 6.45

87 %

Restructuring and employee severance

—

—

88

88

21

—

67

0.28

Amortization and other acquisition-related costs

—

—

464

464

104

—

360

1.49

Acquisition-related cash & share-based compensation costs

—

—

126

126

1

—

125

0.51

Impairments and (gain)/loss on disposal of assets, net

—

—

18

18

5

—

13

0.05

Litigation (recoveries)/charges, net

—

—

(185)

(185)

(54)

—

(131)

(0.54)

Non-GAAP

$ 8,168

10 %

$ 5,382

8 %

$   2,786

15 %

$  2,612

$    609

$       (8)

$   1,995

7 %

23.3 %

$ 8.24

9 %

Fiscal Year 2024

GAAP

$ 7,414

8 %

$ 5,000

4 %

$   1,243

65 %

$  1,201

$    348

$       (1)

$    852

N.M.

28.9 %

$ 3.45

N.M.

Shareholder cooperation agreement costs

—

(1)

1

1

—

—

1

—

Restructuring and employee severance

—

—

175

175

41

—

134

0.54

Amortization and other acquisition-related costs

—

—

284

284

74

—

210

0.85

Impairments and (gain)/loss on disposal of assets, net 5

—

—

634

634

47

—

587

2.38

Litigation (recoveries)/charges, net

—

—

78

78

5

—

73

0.30

Non-GAAP

$ 7,414

8 %

$ 5,000

4 %

$   2,414

16 %

$  2,372

$    515

$       (1)

$   1,856

21 %

21.7 %

$ 7.53

29 %

1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

2 Distribution, selling, general and administrative expenses.

3 Attributable to Cardinal Health, Inc.

4 For fiscal 2026, we recognized a pre-tax impairment charge of $122 million related to our equity method investment in Outcomes due to an observed reduction in the estimated fair value of the business, which is included in impairment of equity interest in Outcomes in the consolidated statements of earnings. The net tax benefit related to this charge was $3 million and is included in the annual effective tax rate.

5 For fiscal 2026 and 2024, impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $184 million related to the Navista & ION reporting unit within the Pharma segment and $675 million related to the GMPD segment, respectively. For fiscal 2026 and 2024 the net tax benefit related to these charges was $23 million and $58 million, respectively, and were included in the annual effective tax rates. The portion of the goodwill impairment charge within the Navista & ION reporting unit attributable to noncontrolling interests was $23 million for fiscal 2026.

The sum of the components and certain computations may reflect rounding adjustments.

We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

Schedule 6

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow (Unaudited)

Fiscal Year

(in millions)

2026

2025

GAAP - Cash Flow Categories

Net cash provided by operating activities

$    5,174

$    2,397

Net cash used in investing activities

(2,584)

(5,593)

Net cash provided by/(used in) financing activities

(1,602)

1,940

Effect of exchange rates changes on cash and equivalents

(6)

(3)

Net increase/(decrease) in cash and equivalents

$       982

$   (1,259)

Non-GAAP Adjusted Free Cash Flow

Net cash provided by operating activities

$    5,174

$    2,397

Repurchases of liability-classified Specialty Alliance Units

45

19

Additions to property and equipment

(649)

(547)

Payments related to matters included in litigation (recoveries)/charges, net

401

619

Non-GAAP Adjusted Free Cash Flow

$    4,971

$    2,488

For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

Schedule 7

Cardinal Health, Inc. and Subsidiaries

Global Medical Product Distribution ("GMPD") and Consolidated

 International Emergency Economic Powers Act ("IEEPA") Tariff Refunds Reconciliation (Unaudited)

Global Medical Product Distribution

Fourth Quarter

Fiscal Year

(in millions)

2026

2025

Growth Rate

2026

2025

Growth Rate

Segment profit

$       150

$        70

N.M.

$       258

$       135

91 %

Less: IEEPA tariff refunds

100

—

100 %

100

—

100 %

Segment profit, excluding IEEPA tariff refunds

$         50

$        70

(29) %

$       158

$       135

17 %

Consolidated

Fourth Quarter

Fiscal Year

(in millions)

2026

2025

Growth Rate

2026

2025

Growth Rate

Net earnings 1

$       398

$       239

67 %

$    1,714

$    1,561

10 %

Less: IEEPA tariff refunds, net of tax

74

—

100 %

74

—

100 %

Net earnings, excluding IEEPA tariff refunds

$       324

$       239

36 %

$    1,640

$    1,561

5 %

Diluted EPS

$      1.70

$      1.00

70 %

$      7.23

$      6.45

12 %

Less: Diluted EPS, IEEPA tariff refunds, net of tax

0.31

—

100 %

0.31

—

100 %

Diluted EPS, excluding IEEPA tariff refunds

$      1.39

$      1.00

39 %

$      6.92

$      6.45

7 %

Consolidated

Fourth Quarter

Fiscal Year

(in millions)

2026

2025

Growth Rate

2026

2025

Growth Rate

Non-GAAP Net earnings 1

$       682

$       501

36 %

$     2,667

$    1,995

34 %

Less: IEEPA tariff refunds, net of tax

74

—

100 %

74

—

100 %

Non-GAAP Net earnings, excluding IEEPA tariff refunds

$       608

$       501

21 %

$     2,593

$    1,995

30 %

Non-GAAP Diluted EPS

$      2.91

$      2.08

40 %

$     11.26

$      8.24

37 %

Less: Non-GAAP Diluted EPS, IEEPA tariff refunds, net of tax

0.31

—

100 %

0.31

—

100 %

Non-GAAP Diluted EPS, excluding IEEPA tariff refunds

$      2.60

$      2.08

25 %

$     10.95

$      8.24

33 %

1 Attributable to Cardinal Health, Inc.

Schedule 8

Cardinal Health, Inc. and Subsidiaries

Distribution, Selling, General and Administrative ("SG&A") Expenses, excluding Acquisitions

Consolidated

Fourth Quarter

Fiscal Year

(in millions)

2026

2025

% Change

2026

2025

% Change

SG&A expenses

$     1,625

$     1,484

10 %

$     6,132

$     5,382

14 %

Less: Recent acquisitions1

198

157

26 %

767

254

N.M.

SG&A expenses, excluding recent acquisitions

$     1,427

$     1,327

8 %

$     5,365

$     5,128

5 %

1Recent acquisitions include Integrated Oncology Network (December 2024), GI Alliance (January 2025), Advanced Diabetes Supply Group (April 2025), Urology America (May 2025), and Solaris Health (November 2025).

Cardinal Health, Inc. and Subsidiaries

Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").

In addition to analyzing our business based on financial information prepared in accordance with GAAP, we use these non-GAAP financial measures internally to evaluate our performance, engage in financial and operational planning, and determine incentive compensation because we believe that these measures provide additional perspective on and, in some circumstances are more closely correlated to, the performance of our underlying, ongoing business. We provide these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on our financial and operating results on a year-over-year basis and in comparing our performance to that of our competitors. However, the non-GAAP financial measures that we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by us should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth below should be carefully evaluated. 

Exclusions from Non-GAAP Financial Measures

Management believes it is useful to exclude the following items from the non-GAAP measures presented in this report for its own and for investors' assessment of the business for the reasons identified below:

LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be meaningfully influenced by customer buying behavior immediately preceding our fiscal year-end), are largely out of our control and cannot be accurately predicted. The exclusion of LIFO charges and credits from non-GAAP metrics facilitates comparison of our current financial results to our historical financial results and to our peer group companies' financial results. We did not recognize any LIFO charges or credits during the periods presented. State opioid assessments related to prior fiscal years is the portion of state assessments for prescription opioid medications that were sold or distributed in periods prior to the period in which the expense is incurred. This portion is excluded from non-GAAP financial measures because it is retrospectively applied to sales in prior fiscal years and inclusion would obscure analysis of the current fiscal year results of our underlying, ongoing business. Additionally, while states' laws may require us to make payments on an ongoing basis, the portion of the assessment related to sales in prior periods are contemplated to be one-time, nonrecurring items. Income from state opioid assessments related to prior fiscal years represents reversals of accruals due to changes in estimates or when the underlying assessments were invalidated by a court or reimbursed by manufacturers.  Shareholder cooperation agreement costs includes costs such as legal, consulting, and other expenses incurred in relation to the agreement (the "Cooperation Agreement") entered into among Elliott Associates, L.P., Elliott International, L.P. (together, "Elliott"), and Cardinal Health. These include costs incurred to negotiate and finalize the Cooperation Agreement and costs incurred by the Business Review Committee of the Board of Directors, formed under this Cooperation Agreement, tasked with undertaking a comprehensive review of our strategy, portfolio, capital allocation framework, and operations. We have excluded these costs from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business operations and may obscure analysis of trends and financial performance. The Cooperation Agreement expired in the second quarter of fiscal 2025. Restructuring and employee severance costs are excluded because they are not part of the ongoing operations of our underlying business and include, but are not limited to, costs related to divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance, and realigning operations.  Amortization and other acquisition-related costs, which include transaction costs, integration costs, and changes in the fair value of contingent consideration obligations, are excluded because they are not part of the ongoing operations of our underlying business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. Additionally, costs for amortization of acquisition-related intangible assets and amortization as a result of basis differences in equity method investments are non-cash amounts, which are variable in amount and frequency and are significantly impacted by the timing and size of acquisitions, so their exclusion facilitates comparison of historical, current, and forecasted financial results. We also exclude other acquisition-related costs, which are directly related to an acquisition but do not meet the criteria to be recognized on the acquired entity's initial balance sheet as part of the purchase price allocation. These costs are also significantly impacted by the timing, complexity, and size of acquisitions.  Acquisition-related cash and share-based compensation costs are incurred in connection with contingent cash payments or the issuance of share-based payment awards, which include service requirements, as a part of certain physician practice acquisitions. These costs include fair value adjustments for liability-classified awards. These costs are excluded because they are unrelated to the underlying operating results of our business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. In addition, the magnitude of these expenses is significantly impacted by the timing and size of the acquisitions of physician practices. Impairments and gain or loss on disposal of assets, net are excluded because they do not occur in or reflect the ordinary course of our ongoing business operations and are inherently unpredictable in timing and amount, and in the case of impairments, are non-cash amounts, so their exclusion facilitates comparison of historical, current, and forecasted financial results.  Litigation recoveries or charges, net are excluded because they often relate to events that may have occurred in prior or multiple periods, do not occur in or reflect the ordinary course of our business, and are inherently unpredictable in timing and amount.  Impairment of equity interest in Outcomes was incurred in connection with the observed reduction in the estimated fair value of the Outcomes business, of which we hold a 16 percent equity interest. We exclude this impairment from non-GAAP results as impairments of unconsolidated equity investments of this magnitude do not occur in the normal course of our ongoing business operations. This impairment is similar in nature to a gain or loss on the divestiture of a majority interest, which we also exclude from non-GAAP results, including the gain recognized on our initial divestiture of the Outcomes business in fiscal 2024. The exclusion of this impairment from non-GAAP financial measures facilitates comparison of our current financial results to our historical financial results. The tax effect for each of the items listed above is determined using the tax rate and other tax attributes applicable to the item and the jurisdiction(s) in which the item is recorded. The gross, tax, and net impact of each item are presented with our GAAP to non-GAAP reconciliations.

Non-GAAP adjusted free cash flow: We provide this non-GAAP financial measure as a supplemental metric to assist readers in assessing the effects of items and events on our cash flow on a year-over-year basis and in comparing our performance to that of our peer group companies. In calculating this non-GAAP metric, certain items are excluded from net cash provided by operating activities because they relate to significant and unusual or non-recurring events and are inherently unpredictable in timing and amount. We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash. A reconciliation of our GAAP financial results to Non-GAAP adjusted free cash flow is provided in Schedule 6 of the financial statement tables included with this release.

Forward Looking Non-GAAP Measures

In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP measure can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis.
 

The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company's fiscal 2026 GAAP results. Over the past five fiscal years, the excluded items have impacted the Company's EPS from $1.79 to $8.44, which includes a $6.97 change related to the goodwill impairment we recognized in fiscal 2022.

Definitions

Growth rate calculation: growth rates in this report are determined by dividing the difference between current-period results and prior-period results by prior-period results.

Interest and Other, net: other (income)/expense, net plus interest expense, net.

Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses).

Segment Profit margin: segment profit divided by segment revenue.

Non-GAAP gross margin: gross margin, excluding LIFO charges/(credits).

Non-GAAP distribution, selling, general and administrative expenses or Non-GAAP SG&A: distribution, selling, general and administrative expenses, excluding state opioid assessment related to prior fiscal years and shareholder cooperation agreement costs.

Non-GAAP operating earnings: operating earnings excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, and (8) litigation (recoveries)/charges, net.

Non-GAAP earnings before income taxes: earnings before income taxes excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) impairment of equity interest in Outcomes.

Non-GAAP net earnings attributable to non-controlling interests: net earnings attributable to non-controlling interests excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) impairment of equity interest in Outcomes, each net of tax.

Non-GAAP net earnings attributable to Cardinal Health, Inc.: net earnings attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) impairment of equity interest in Outcomes, each net of tax.

Non-GAAP effective tax rate: provision for income taxes adjusted for the tax impacts of (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) impairment of equity interest in Outcomes, divided by (earnings before income taxes adjusted for the items above).

Non-GAAP diluted earnings per share attributable to Cardinal Health, Inc.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outstanding.

Non-GAAP adjusted free cash flow: net cash provided by operating activities plus repurchases of liability-classified Specialty Alliance Units, less payments related to additions to property and equipment, excluding settlement payments and receipts related to matters included in litigation (recoveries)/charges, net, as defined above, or other significant and unusual or non-recurring cash payments or receipts.

SOURCE Cardinal Health, Inc.

Stellar and the XRP Ledger, two prominent blockchain networks with intertwined histories, have taken a significant step toward interoperability through a new initiative introduced by Xora Finance. With this move, native XLM can now be settled directly on the XRP Ledger (XRPL), signaling the possibility of closer collaboration between these networks after years of developing separately.

Xora Finance bridges Stellar and XRPLXora Finance, a neobank operating within the XRP ecosystem, has enabled the settlement of Stellar’s XLM token on the XRPL. This development allows holders of XLM to transact and settle their assets within the XRPL environment, offering greater flexibility and access to XRPL-based liquidity and financial applications.

Stellar and XRP Ledger were initially conceived to provide faster, more user-friendly financial infrastructure in the blockchain sector. Despite their shared beginnings, the networks split in 2014 and have since evolved distinctly in terms of technology, native assets, and communities. The integration by Xora Finance seeks to reconnect these two ecosystems, potentially paving the way for further technical collaborations.

For XLM holders, this opens up opportunities beyond merely expanding the range of blockchains where XLM can be used. The ability to settle native XLM through XRPL introduces new settlement options and could enhance the asset’s interaction with applications operating on the XRPL.

Implications for blockchain interoperabilityTraditionally, blockchains have behaved as isolated ecosystems, with moving assets between chains often requiring complex bridges, wrapped tokens, or added infrastructure. Direct connections between major networks represent a shift toward reducing these boundaries and enabling seamless asset transfers across platforms.

The collaboration is notable given the shared background of Stellar and XRPL, both of which originated from early efforts to create next-generation financial infrastructure on the blockchain. The renewed connection, facilitated by Xora Finance, highlights a potential convergence between what were historically competing platforms.

If Xora Finance continues to expand this functionality, XLM users could benefit from simplified access to XRPL’s settlement features. This could also set an example of how previously isolated networks can leverage each other’s strengths for mutual benefit.

As direct links like XLM settlement on XRPL become possible, the industry may move beyond isolated platforms and toward a more integrated blockchain financial environment.

The latest development suggests that the future of blockchain may be less about competition among networks and more about creating a seamless user experience across interoperable technologies.

While enabling XLM settlement on XRPL may appear incremental, it indicates a growing trend toward collaboration and technical compatibility within the crypto sector.

Mini dictionary: Xora Finance, a digital neobank focusing on the XRP Ledger ecosystem, provides financial services designed for blockchain-based transactions and is actively engaged in blockchain interoperability solutions.

NetworkNative TokenYear LaunchedNow Interoperable WithStellarXLM2014XRP LedgerXRP LedgerXRP2012Stellar (via Xora Finance)Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Essential Utilities (NYSE:WTRG) reported second-quarter 2026 GAAP earnings of $0.37 per share, compared with $0.38 per share in the prior-year quarter, as higher regulatory recoveries and water volumes were offset by lower gas volumes, increased operating expenses, depreciation and interest costs.

Excluding approximately $0.01 per share of merger-related expenses, the company reported adjusted non-GAAP earnings of $0.38 per share. Chairman and CEO Chris Franklin said Essential remains confident it can achieve its target of 5% to 7% annual earnings-per-share growth, using 2024 adjusted earnings of $1.97 per share as the baseline.

Quarterly Earnings Drivers Chief Financial Officer Dan Schuller said earnings benefited from a $0.06-per-share increase in regulatory recoveries and surcharges, a $0.02 increase from higher water volumes, and a $0.01 benefit from water customer growth. The customer growth reflected both acquisitions and organic expansion, he said.

Those gains were partly offset by $0.02 per share of higher operating expenses, a $0.02 impact from lower gas volumes, and $0.06 of other costs. The latter category included $0.03 from increased depreciation and $0.03 from higher interest expense and lower allowance for funds used during construction, or AFUDC.

Operating and maintenance expenses rose about $5.1 million, or 3.5%, from a year earlier. Schuller attributed the increase primarily to higher employee-related costs, including merit increases and medical claims, along with greater water and wastewater production costs and expenses associated with newly acquired customers.

The increase was partly offset by lower insurance expense due largely to an insurance recovery, reduced gas-segment bad debt expense, and lower customer-assistance surcharge costs. Excluding merger-related costs, operating and maintenance expenses increased 2.6%, which Schuller said was in line with the company’s historical norms.

American Water Merger Advances Franklin said Essential has received regulatory approvals for its planned merger with American Water in Kentucky, Ohio and Virginia. The company continues to expect the transaction to close during the first quarter of 2027.

Proceedings are continuing in the remaining jurisdictions. Essential has reached a settlement in principle in Texas, while public input hearings in New Jersey are scheduled for August. Testimony was filed in North Carolina at the end of the prior week, and the Illinois matter is before an administrative law judge with a statutory process scheduled to conclude by November.

In Pennsylvania, the companies remain in negotiations with parties while evidentiary hearings are underway. Franklin said the administrative law judge’s timing in issuing a recommendation could affect the closing schedule, but he characterized the current first-quarter 2027 expectation as “comfortable” based on known timelines.

“Things have gone largely according to plan,” Franklin said, while noting that regulatory approvals involve negotiations with different stakeholders across multiple states.

Essential is also conducting integration planning with American Water. Franklin said employee collaboration between the companies has exceeded his expectations and that the combined organization is intended to begin operating as a “world-class organization” immediately following closing.

Infrastructure Spending and Regulatory Pipeline Essential invested $662 million in regulated water and natural gas infrastructure during the first half of 2026 and remains on track to spend a record $1.7 billion for the full year. Franklin said the investments are intended to improve service, reliability, safety and regulatory compliance.

The company finalized rate cases or surcharges representing $56.6 million in annualized revenue during 2026 through the second quarter, with about 78% coming from water and wastewater operations. Its water and wastewater segment has five rate cases and one surcharge proceeding pending, representing roughly $79.7 million in requested annualized increases.

Essential’s Pennsylvania natural gas subsidiary has a base rate case pending that seeks $163.2 million in additional annual revenue. The company plans to file its next Aqua Pennsylvania water rate case around year-end.

Franklin said Essential delayed the Aqua Pennsylvania filing amid several ongoing regulatory matters, including the merger proceeding and the Peoples Natural Gas rate case. He described the anticipated water filing as largely driven by capital investment and said the company expects to follow its usual process while considering positions raised by Pennsylvania’s Governor’s Office on energy affordability.

Schuller said approximately 55% of Essential’s Pennsylvania capital spending for 2026 is eligible for recovery through the distribution system improvement charge, or DSIC. Franklin said the company will continue advocating to expand the DSIC mechanism to cover additional capital items.

Acquisitions, Dividend and Outlook Essential completed the acquisition of Integra Water LLC for $4.9 million, adding approximately 1,100 customers in Texas. The company also has signed agreements to acquire small systems in Pennsylvania, Texas, North Carolina, Virginia and New Jersey.

Including those signed agreements, Essential expects to add about 200,000 customers for a combined purchase price of approximately $282 million. That figure includes the DELCORA transaction, whose progress remains stalled by a federal bankruptcy court stay related to the City of Chester’s bankruptcy.

Franklin said the DELCORA agreement remains fully enforceable and assumable by American Water, and Essential does not expect the proposed merger to negatively affect its pursuit of the transaction. The company’s potential municipal water and wastewater acquisition pipeline stands at approximately 400,000 customers.

Separately, Essential’s board approved a 5.25% increase in its quarterly cash dividend. The dividend is payable Sept. 1, 2026, to shareholders of record as of Aug. 11, 2026.

Looking ahead, Schuller said Essential expects its effective tax rate to remain in the low single digits for the full year, generally below 5%. He also said a previously disclosed one-time item remains expected later in 2026 and should benefit earnings. The company has experienced higher fuel costs across its fleet and equipment base amid developments in the Middle East, which Schuller said have been incorporated into current results.

About Essential Utilities (NYSE:WTRG) Essential Utilities, Inc, formerly known as Aqua America, is a publicly traded water and natural gas utility holding company. Through its regulated water and wastewater subsidiaries, the company provides essential water services to residential, commercial and industrial customers. In addition, Essential Utilities delivers natural gas distribution services in Pennsylvania through its Peoples Gas subsidiary, offering integrated utility solutions under a unified corporate framework.

The company traces its roots to the Philadelphia Suburban Water Company, founded in 1886 to serve growing communities outside Philadelphia.

, /PRNewswire/ -- KuCoin, a leading global crypto platform built on trust, today announced the integration of Ondo tokenized assets, marketed as "Ondo tokenized stocks," into KuCoin Alpha. The integration provides eligible users across the KuCoin ecosystem with a streamlined way to access tokenized stocks and exchange-traded funds (ETFs) through the familiar KuCoin interface.

Through KuCoin Alpha, users can access supported Ondo tokenized stocks using funds held in their KuCoin accounts and trade them without navigating separate wallets or external onchain applications. By simplifying the user journey, the integration creates a more intuitive entry point to TradFi-linked onchain products while retaining the efficiency and flexibility enabled by blockchain-based infrastructure. The initial selection spans broad-market ETFs and leading companies across technology, semiconductors and digital finance, including widely followed products such as SPYon, NVDAon, MUon, SNDKon, and CRCLon.

The launch builds on the earlier integration of Ondo tokenized stocks into KuCoin Web3 Wallet. Together, the two integrations provide complementary pathways across the KuCoin ecosystem: an exchange-app experience through KuCoin Alpha and a self-custodial experience through KuCoin Web3 Wallet. This gives users greater flexibility in how they discover, access, and manage TradFi-linked onchain assets.

The expansion reflects the next stage in the development of onchain finance. Following the global adoption of stablecoins, tokenized real-world assets are emerging as another important asset category supported by blockchain infrastructure. Scaling this market will require more than asset issuance alone. It will also depend on trusted access infrastructure that connects products, liquidity and users through intuitive and widely accessible interfaces.

As traditional financial products increasingly move onchain, crypto platforms are evolving beyond venues for individual asset listings to become an important infrastructure for global onchain markets. By extending Ondo stocks across both its exchange-app and self-custodial environments, KuCoin is building a unified access layer for crypto-native assets, tokenized real-world assets and other TradFi-linked onchain products.

The integration marks another step in KuCoin's strategy to build trusted infrastructure that connects traditional finance with the expanding onchain economy while making emerging financial products accessible through experiences users already understand.

About KuCoin

Founded in 2017, KuCoin is a leading global crypto platform built on trust and security, serving over 45 million users across 200+ countries and regions. Known for its reliability and user-first approach, the platform combines advanced technology, deep liquidity, and strong security safeguards to deliver a seamless trading experience. KuCoin provides access to 1,500+ digital assets through a broad product suite and remains committed to building transparent, compliant, and user-centric digital asset infrastructure for the future of finance, backed by SOC 2 Type II, ISO/IEC 27001:2022, and ISO/IEC 27701:2019 Certifications. In recent years, we have built a strong global compliance foundation, marked by key milestones including AUSTRAC registration in Australia, a MiCA license in Europe, and regulatory progress in other markets.

Learn more at www.kucoin.com.

Disclaimer
The information is for corporate PR purposes only and does not constitute endorsement or investment advice.

SOURCE KuCoin

Recently, there's been a flurry of positive dividend activity in the midstream energy sector with both well-known and lesser-heralded pipeline firms boosting payouts.

Energy Transfer (ET +2.29%) is one of the guests at the midstream dividend increase party. Following a July distribution increase of nearly 1%, Energy Transfer's consecutive streak of boosted payouts now spans an impressive 19 quarters, or nearly five years for those keeping score at home. Typically, Energy Transfer delivers gentle upside nudges to its dividend, and investors love the consistency.

Energy Transfer continues raising its dividend and investors should expect that trend to continue. Image source: Getty Images.

Plus, those modest increases add up over time. The stock yields 6.7% and, by some estimates, if its current trajectory of dividend increases continues, the dividend could nearly double over the next decade. That'd be music to the ears of long-term investors. Fortunately, this pipeline stock has the fundamentals to keep good dividend times coming.

Stars aligning for dividend growth Not only did Energy Transfer announce a dividend increase in July, but it also followed that up with a second-quarter earnings report and updated 2026 guidance confirming the distribution is on solid ground and poised for long-term growth.

In the June quarter, Energy Transfer's distributable cash flow (DCF), one of the bedrocks of pipeline operators' dividends, climbed to $2.59 billion from $1.96 billion a year earlier. The midstream company's DCF could continue to improve in the current quarter and beyond, driven by the revised 2026 guidance. Energy Transfer told investors it now expects 2026 full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $18.8 billion to $19.1 billion, up from a prior forecast of $18.2 billion to $18.6 billion.

Regardless of sector, if there's anything that investors should demand of dividend-paying companies, it's rising earnings and cash flow. Those are telltale signs that current dividend obligations can be met and that payouts can grow over the long term.

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Longer-ranging support for the distribution doesn't end there. Energy Transfer is a diverse midstream operator with exposure to natural gas liquids (NGLs) and oil transportation as well as midstream gathering. That diversity matters for multiple reasons. First, management sounded optimistic about improving finances across its various segments. Second, in just a year, NGL projects went from out of fashion to being in high demand, indicating that Energy Transfer's related investments could pay dividends (pun intended).

AI angles Investors seeking artificial intelligence (AI) "derivative" exposure while balancing low-yielding, growth-heavy portfolios with income-generating assets should look to the midstream sector, including Energy Transfer.

All those high-priced data centers need power, but it can take years for traditional utilities to obtain all the permits required to deliver grid power to data centers. Guess which companies are adept at transporting energy? Pipeline operators such as Energy Transfer.

On the company's second-quarter earnings conference call, co-CEO Thomas Long said customers are expressing interest in upping their commitments for Energy Transfer's services that deliver energy to data centers and nearby power facilities. He also mentioned "advanced negotiations" with customers in six states to provide additional natural gas volumes.

Imagine capturing steady dividends while participating in the AI trade. With Energy Transfer, that's a reality, not a dream.

The SushiSwap community has released a "SUSHI Token Economic Restructuring" proposal. Key measures outlined in the proposal include: building a strategic reserve via weekly SUSHI purchases; allocating remaining protocol revenue to Sushi Ops to support growth and operations; and transferring part of the protocol’s deployed liquidity to active trading markets on Robinhood Chain, starting with the ETH–USDG trading pair.

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, /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading all-in-one music and audio entertainment platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights

Total revenues were RMB8.93 billion (US$1.32 billion), representing a 5.8% year-over-year increase, primarily due to strong growth in revenues from music related services[1]. Revenues from music related services[1] were RMB7.61 billion (US$1.12 billion), representing 11.0% year-over-year growth, driven by solid growth in revenues from marketing and consumption services[2], such as offline performance related services, as well as revenues from membership services[3]. Revenues from membership services[3] were RMB4.79 billion (US$706 million), representing 8.1% year-over-year growth. On an IFRS basis: Net profit attributable to equity holders of the Company was RMB2.47 billion (US$364 million), compared with RMB2.41 billion in the same period of 2025. Diluted earnings per ADS was RMB1.57 (US$0.23), compared with RMB1.55 in the same period of 2025. On a non-IFRS basis: Adjusted EBITDA[4] was RMB3.25 billion (US$480 million), representing 5.2% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[4] was RMB2.69 billion (US$396 million), representing 4.4% year-over-year growth. Non-IFRS diluted earnings per ADS was RMB1.70 (US$0.25), up from RMB1.66 in the same period of 2025. Total cash, cash equivalents, term deposits and short-term investments as of June 30, 2026 were RMB44.22 billion (US$6.52 billion). In the second quarter of 2026, the Company repurchased 43.5 million ADSs with cash for an aggregate consideration of approximately US$400.0 million. Mr. Cussion Pang, Executive Chairman of TME, commented, "Our second-quarter results reflect the continued strength of our content-and-platform strategy. Concerts, merchandise, and other IP-driven experiences drove another quarter of solid growth in our marketing and consumption services, underscoring our ability to unlock greater value from premium music IP. Our expansion into digital audio through the integration of Ximalaya broadened our reach and enriched our ecosystem. As the industry evolves, we continue to champion copyright protection, foster a healthy ecosystem, and safeguard the value of creative work."

Mr. Ross Liang, CEO of TME, continued, "Amid a rapidly evolving market, we remain steadfast in building an ecosystem where our users can discover, connect, and be inspired through music and audio experiences. Our focus on differentiated content and a vibrant community continues to deepen engagement with our core users, and SVIP membership continues to grow. The addition of Ximalaya is an exciting milestone that will allow us to deliver an even richer audio experience and serve our users more effectively. Together, we are shaping the future of music and audio entertainment and unlocking long-term growth."

Second Quarter 2026 Operational Highlights

Products & Services – Elevated the music experience through continuous product innovation, ecosystem integration, and thoughtful AI application, to expand user reach and deepen engagement. 

Enhanced the user experience through a more seamless discovery-to-playback journey, introducing vertical swipe-based discovery, video feeds, and expanded freemium access to drive higher daily time spent per user. Expanded distribution and user acquisition through deeper integration with the broader Tencent ecosystem. We strengthened music content distribution through Weixin Video Accounts and improved click-through and conversion to our apps. We also collaborated with Weixin Pay to drive traffic to our lightweight apps, such as Bodian Music and Kugou Concept, which cater to users seeking a simpler music experience. Harnessed AI agents to make music discovery more intuitive and personalized. We recently integrated with Weixin XiaoWei, and are pleased that by tapping into Weixin's massive user base, more users can discover songs, generate playlists, stream music with easy commands and instantly share favorite tracks with friends. Within QQ Music and Kugou Music, our upgraded AI agents now act as personal DJs, creating personalized playlists in real time that match what users want to hear in the moment. IP-Centric Content Ecosystem – Deepened strategic partnerships, strengthened proprietary IP capabilities, and expanded presence in digital audio to reinforce long-term IP value. 

Expanded strategic partnerships beyond traditional music licensing to unlock greater value. 1) Deepened our partnerships with Dream Music Group, securing first-release for its top artists while expanding into new areas of collaborations including content co-creation, physical offerings, and offline experiences. 2) To enrich how users experience music beyond audio, we partnered with Huace Film & TV, RUYI FILM, and Zhejiang Satellite TV to bring original soundtracks and popular music variety shows to our platform, creating a more immersive connection between music and visual entertainment. Advanced our proprietary content creation capabilities and deepened artist development efforts to support growth of IP-driven experiences. 1) Produced hit releases for leading artists and major IPs, including Zhou Shen's Blaze into Bloom, Liu Yuning's Borrow a Little Light from Ordinary Days, and the theme song for the hit animated film All Wishes Come True!. 2) Following rapper Zhou Yan's (GAI) successful EVOLUTION tour in Asia, we elevated his latest tour, REAL G, to stadium scale. We also supported renowned actor and singer Steven Zhang's first-ever arena tour, New Journey. 3) Made a strategic investment in THE BLACK LABEL to help artists deepen connection with Chinese audiences. The addition of Ximalaya strengthened our position as a leading music and audio ecosystem. Its extensive content library broadened our user reach and enriched our SVIP offering. Meanwhile, we have begun the backend integration journey, laying the foundation for operational efficiency gains over time. Holistic IP Value Creation – Extended the value of premium IPs beyond streaming through digital and physical experiences, deepening fan engagement and driving diversified growth.

Continued to enhance our SVIP offering with differentiated IP-driven benefits, driving growth in user scale, engagement, and consumption of premium ancillary experiences. New benefits, including digital albums and tailored gift packages for artists and groups such as RENJUN, Lay Zhang, aespa, and RIIZE[5], deepened fan engagement. Expanded music IP into more immersive offline experiences, contributing to strong growth in concert-related revenue. 1) Hosted three fan meetings in Macau, China for SM Entertainment's trainee group, SMTR25, attracting tens of thousands of attendees and generating strong merchandise sales. 2) Building on last year's success, we scaled up our proprietary international IP event, TIMA, expanding to a much larger venue to welcome more fans amid growing enthusiasm. Extended the value of music IP through end-to-end IP merchandise development and distribution. Physical releases from KUN, Chen Chusheng, Eazin Poe, and Zhou Shen were met with strong demand, highlighting fans' growing appetite for premium music collectibles. Second Quarter 2026 Financial Review 

Total revenues increased by RMB491 million, or 5.8%, to RMB8.93 billion (US$1.32 billion) from RMB8.44 billion in the same period of 2025. The revenue generated from Ximalaya was RMB407 million (US$60 million)[6].

Revenues from music related services increased by 11.0% to RMB7.61 billion (US$1.12 billion), compared with RMB6.85 billion in the same period of 2025. The increase was driven by solid growth in revenues from marketing and consumption services, such as offline performance related services, as well as revenues from membership services. Revenues from membership services were RMB4.79 billion (US$706 million), representing 8.1% year-over-year growth, compared with RMB4.43 billion in the same period of 2025. The consolidation of Ximalaya contributed to the increase of our membership revenues. Additionally, our SVIP membership continued to expand and contributed to our membership revenue growth. Revenues from offline performances related services achieved robust year-over-year growth as we successfully staged several concerts for our strategically collaborated artists. Revenues from social entertainment services and others decreased by 16.4% to RMB1.33 billion (US$196 million) from RMB1.59 billion in the same period of 2025. Cost of revenues increased by 6.2% year-over-year to RMB4.98 billion (US$735 million), mainly due to increased costs related to offline performances, and higher long-form audio content costs due to expansion of content library. Meanwhile, revenue sharing fees decreased, resulting from declines in both revenue sharing ratio and revenues from social entertainment services. 

Gross margin was 44.2%, compared with 44.4% in the same period of 2025. The consolidation of Ximalaya had a positive impact to our gross margin of this quarter.

Total operating expenses increased by 12.0% year-over-year to RMB1.30 billion (US$191 million). Operating expenses as a percentage of total revenues increased to 14.5% from 13.7% in the same period of 2025. The increase was primarily due to the consolidation of Ximalaya, including the amortization of intangible assets arising from the acquisition.

On an IFRS basis, net profit and net profit attributable to equity holders of the Company for the second quarter of 2026 were RMB2.55 billion (US$376 million) and RMB2.47 billion (US$364 million), respectively. Basic and diluted earnings per American Depositary Shares ("ADS") for the second quarter of 2026 were RMB1.58 (US$0.23) and RMB1.57 (US$0.23), respectively. The Company had weighted averages of 1.56 billion basic and 1.58 billion diluted ADSs outstanding, respectively. Each ADS represents two of the Company's Class A ordinary shares.

On a non-IFRS basis, adjusted EBITDA for the second quarter of 2026 were RMB3.25 billion (US$480 million). Non-IFRS net profit was RMB2.78 billion (US$410 million) and non-IFRS net profit attributable to equity holders of the Company was RMB2.69 billion (US$396 million). Non-IFRS basic and diluted earnings per ADS were RMB1.72 (US$0.25) and RMB1.70 (US$0.25), respectively. Please refer to the section in this press release titled "Non-IFRS Financial Measures" for details.

As of June 30, 2026, the combined balance of the Company's cash, cash equivalents, term deposits and short-term investments amounted to RMB44.22 billion (US$6.52 billion), compared with RMB41.00 billion as of March 31, 2026.

Share Repurchase Program

Under our previously announced share repurchase programs, during the three months ended June 30, 2026, we repurchased a total of 43.5 million ADSs in the open market with cash for an aggregate consideration of approximately US$400.0 million at an average price of US$9.2 per ADS.

Environmental, Social, and Governance ("ESG")

We continued to enhance tailored music experiences for users of all ages. This quarter, we enhanced Youth Mode across our core products and introduced a curated, age-appropriate content library for younger users to safely discover and enjoy music.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Non-IFRS Financial Measures 

The Company uses non-IFRS financial measures for the period, including non-IFRS net profit, adjusted EBITDA(inc.SBC) and adjusted EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS financial measures help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in its profit for the period. TME believes that non-IFRS financial measures for the period provide useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

Non-IFRS financial measures for the period should not be considered in isolation or construed as an alternative to operating profit, net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS financial measures for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS financial measures for the period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. TME encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Adjusted EBITDA(inc.SBC) for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, and amortization of intangible assets.

Adjusted EBITDA for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, amortization of intangible assets, and share-based compensation expenses.

Non-IFRS net profit for the period represents profit for the period excluding amortization of intangible and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments and related income tax effects.

Please see the "Unaudited Non-IFRS Financial Measures" included in this press release for a full reconciliation of adjusted EBITDA(inc.SBC), adjusted EBITDA and non-IFRS net profit for the period to its net profit for the period.

[1] Starting from the first quarter of 2026, "online music services" has been renamed to "music related services" to better reflect the nature of our businesses, including long-form audio. Such change does not affect the amounts of our historical revenue or its accounting treatment.

[2] As part of music related services, marketing and consumption services primarily consist of advertising, offline performance related services and artist-related merchandise sales.

[3] As part of music related services, membership services primarily consist of membership fees paid for membership benefits and privileges, including access to music and audio content, and other benefits and privileges within music related services.

[4] See the sections entitled "Non-IFRS Financial Measures" and "Unaudited Non-IFRS Financial Measures" for more information about the non-IFRS measures referred to within this announcement.

[5] Names grouped by artists and bands, sorted in alphabetical order by family names.

[6] On May 18, 2026, the Company completed the acquisition of Ximalaya. Its financial results from the acquisition date have been included in the Company's consolidated financial statements for the second quarter of 2026

About Tencent Music Entertainment

Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading all-in-one music and audio entertainment platform in China, operating the country's highly popular and innovative music and audio apps: QQ Music, Kugou Music, Kuwo Music, WeSing and Ximalaya. TME's mission is to create endless possibilities with music and technology. Powered by its content-and-platform dual-engine strategy, TME's expansive offerings extend the value of IP beyond online streaming into offline concerts, artist merchandise, and other IP-centric experiences. TME continuously innovates to deliver a seamless experience where users can discover, listen, sing, watch, perform, and connect across diverse scenarios, while unlocking the enduring value of music and audio IP. For more information, please visit ir.tencentmusic.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact 
Tencent Music Entertainment Group
[email protected]
+86 (755) 8601-3388 ext. 885034

TENCENT MUSIC ENTERTAINMENT GROUP

CONSOLIDATED INCOME STATEMENTS

Three Months Ended June 30

Six Months Ended June 30

2025

2026

2025

2026

 RMB 

 RMB 

 US$ 

 RMB 

 RMB 

 US$ 

 Unaudited 

 Unaudited 

 Unaudited 

 Unaudited 

 Unaudited 

 Unaudited 

(in millions, except per share data)

(in millions, except per share data)

Revenues

Music related services*

6,854

7,605

1,121

12,658

14,119

2,081

Social entertainment services and others

1,588

1,328

196

3,140

2,709

399

8,442

8,933

1,317

15,798

16,828

2,480

Cost of revenues

(4,693)

(4,984)

(735)

(8,807)

(9,333)

(1,376)

Gross profit

3,749

3,949

582

6,991

7,495

1,105

Selling and marketing expenses

(216)

(236)

(35)

(415)

(507)

(75)

General and administrative expenses

(940)

(1,059)

(156)

(1,884)

(1,999)

(295)

Total operating expenses

(1,156)

(1,295)

(191)

(2,299)

(2,506)

(369)

Interest income 

254

229

34

551

475

70

Other gains, net

131

152

22

2,571

218

32

Operating profit

2,978

3,035

447

7,814

5,682

837

Share of net profit of investments accounted
for using equity method

16

37

5

39

30

4

Finance cost

(12)

(5)

(1)

(37)

(51)

(8)

Profit before income tax

2,982

3,067

452

7,816

5,661

834

Income tax expense

(515)

(514)

(76)

(961)

(971)

(143)

Profit for the period

2,467

2,553

376

6,855

4,690

691

Attributable to:

Equity holders of the Company

2,409

2,471

364

6,700

4,562

672

Non-controlling interests

58

82

12

155

128

19

Earnings per share for Class A and Class B
ordinary shares

Basic

0.79

0.79

0.12

2.19

1.47

0.22

Diluted

0.78

0.78

0.12

2.16

1.46

0.21

Earnings per ADS (2 Class A shares equal to 1 ADS)

Basic

1.57

1.58

0.23

4.38

2.94

0.43

Diluted

1.55

1.57

0.23

4.32

2.91

0.43

Shares used in earnings per Class A and Class B

ordinary share computation:

Basic

3,059,783,073

3,128,328,814

3,128,328,814

3,057,167,291

3,104,964,331

3,104,964,331

Diluted

3,102,937,547

3,151,215,721

3,151,215,721

3,098,531,942

3,132,392,396

3,132,392,396

ADS used in earnings per ADS computation

Basic

1,529,891,537

1,564,164,407

1,564,164,407

1,528,583,645

1,552,482,166

1,552,482,166

Diluted

1,551,468,773

1,575,607,860

1,575,607,860

1,549,265,971

1,566,196,198

1,566,196,198

* Starting from the first quarter of 2026, "online music services" has been renamed to "music related services" to better reflect the nature of our businesses, including long-form

audio. Such change does not affect the amounts of our historical revenue or its accounting treatment.

TENCENT MUSIC ENTERTAINMENT GROUP

REVENUES FROM MUSIC RELATED SERVICES

Three Months Ended June 30

Six Months Ended June 30

2025

2026

2025

2026

 RMB 

 RMB 

 US$ 

 RMB 

 RMB 

 US$ 

 Unaudited 

 Unaudited 

 Unaudited 

 Unaudited 

 Unaudited 

 Unaudited 

(in millions)

(in millions)

Revenues from music related services

Membership services*

4,434

4,792

706

8,718

9,360

1,379

Marketing and consumption services**

2,420

2,813

415

3,940

4,759

701

6,854

7,605

1,121

12,658

14,119

2,081

*As part of music related services, membership services primarily consist of membership fees paid for membership benefits and privileges, including access to music and audio content, and

other benefits and privileges within music related services.

**As part of music related services, marketing and consumption services primarily consist of advertising, offline performance related services and artist-related merchandise sales.

TENCENT MUSIC ENTERTAINMENT GROUP

UNAUDITED NON-IFRS FINANCIAL MEASURES

Three Months Ended June 30

Six Months Ended June 30

2025

2026

2025

2026

 RMB 

 RMB 

 US$ 

 RMB 

 RMB 

 US$ 

 Unaudited  

 Unaudited  

 Unaudited  

 Unaudited  

 Unaudited  

 Unaudited  

(in millions, except per share data)

(in millions, except per share data)

Profit for the period

2,467

2,553

376

6,855

4,690

691

Adjustments:

Income tax expense

515

514

76

961

971

143

Finance cost

12

5

1

37

51

8

Share of net profit of investments accounted for
using equity method

(16)

(37)

(5)

(39)

(30)

(4)

Operating profit

2,978

3,035

447

7,814

5,682

837

Other gains, net

(131)

(152)

(22)

(2,571)

(218)

(32)

Interest income 

(254)

(229)

(34)

(551)

(475)

(70)

Depreciation of property, plant and equipment and
right-of-use assets

40

45

7

78

80

12

Amortisation of intangible assets

314

379

56

589

677

100

Adjusted EBITDA(inc. SBC)

2,947

3,078

454

5,359

5,746

847

Share-based compensation

147

176

26

297

339

50

Adjusted EBITDA

3,094

3,254

480

5,656

6,085

897

Profit for the period

2,467

2,553

376

6,855

4,690

691

Adjustments:

Amortization of intangible and other assets arising from
business acquisitions or combinations*

89

157

23

194

246

36

Share-based compensation

147

176

26

308

339

50

Gains from investments**

(2)

(28)

(4)

(2,377)

(30)

(4)

Income tax effects***

(61)

(77)

(11)

(114)

(131)

(19)

Non-IFRS Net Profit

2,640

2,781

410

4,866

5,114

754

Attributable to:

Equity holders of the Company

2,574

2,686

396

4,698

4,959

731

Non-controlling interests

66

95

14

168

155

23

Earnings per share for Class A and Class B
ordinary shares

Basic

0.84

0.86

0.13

1.54

1.60

0.24

Diluted

0.83

0.85

0.13

1.52

1.58

0.23

Earnings per ADS (2 Class A shares equal to 1 ADS)

Basic

1.68

1.72

0.25

3.07

3.19

0.47

Diluted

1.66

1.70

0.25

3.03

3.17

0.47

Shares used in earnings per Class A and Class B

ordinary share computation:

Basic

3,059,783,073

3,128,328,814

3,128,328,814

3,057,167,291

3,104,964,331

3,104,964,331

Diluted

3,102,937,547

3,151,215,721

3,151,215,721

3,098,531,942

3,132,392,396

3,132,392,396

ADS used in earnings per ADS computation

Basic

1,529,891,537

1,564,164,407

1,564,164,407

1,528,583,645

1,552,482,166

1,552,482,166

Diluted

1,551,468,773

1,575,607,860

1,575,607,860

1,549,265,971

1,566,196,198

1,566,196,198

* Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete

agreement etc., and fair value adjustment on music content (i.e., signed contracts obtained for the rights to access to the music contents for which the amount was amortized over the contract

 period), resulting from business acquisitions or combination.

** Including the net gains/losses on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments, other expenses in relation to

equity transactions of investments and the fair value changes of consideration liabilities related to the acquisition of Ximalaya.

*** Represents the income tax effects of Non-IFRS adjustments.

TENCENT MUSIC ENTERTAINMENT GROUP

CONSOLIDATED BALANCE SHEETS

As at December 31, 2025

As at June 30, 2026

 RMB 

 RMB 

 US$ 

 Audited 

 Unaudited 

 Unaudited 

(in millions)

ASSETS

Non-current assets

Property, plant and equipment

1,201

1,540

227

Land use rights

2,290

2,254

332

Right-of-use assets

287

322

47

Intangible assets

2,899

5,895

869

Goodwill

20,521

29,757

4,386

Investments accounted for using equity method 

1,659

2,691

397

Financial assets at fair value through other comprehensive income 

26,231

19,147

2,822

Other investments

303

934

138

Prepayments, deposits and other assets

365

445

66

Deferred tax assets

498

633

93

Term deposits

13,810

13,640

2,010

70,064

77,258

11,386

Current assets

Inventories

41

98

14

Accounts receivable

3,903

4,184

617

Prepayments, deposits and other assets

4,183

4,745

699

Other investments

83

72

11

Short-term investments

-

123

18

Term deposits

15,763

6,761

996

Restricted Cash 

15

8

1

Cash and cash equivalents

8,470

23,698

3,493

32,458

39,689

5,849

Total assets

102,522

116,947

17,236

EQUITY

Equity attributable to equity holders of the Company

Share capital

2

2

0

Additional paid-in capital

29,919

34,933

5,148

Shares held for share award schemes

(801)

(870)

(128)

Treasury shares 

(664)

(3,389)

(499)

Other reserves

22,450

16,478

2,429

Retained earnings

29,381

31,118

4,586

80,287

78,272

11,536

Non-controlling interests

2,763

2,801

413

Total equity

83,050

81,073

11,949

LIABILITIES

Non-current liabilities

Borrowings

-

7,142

1,053

Notes payables

3,497

3,390

500

Other payables and other liabilities

379

468

69

Deferred tax liabilities

504

1,462

215

Lease liabilities

200

218

32

Deferred revenue 

303

447

66

4,883

13,127

1,935

Current liabilities

Accounts payable 

6,284

6,716

990

Other payables and other liabilities

3,558

4,451

656

Borrowings

-

5,997

884

Current tax liabilities

1,092

999

147

Lease liabilities

116

137

20

Deferred revenue

3,539

4,447

655

14,589

22,747

3,352

Total liabilities

19,472

35,874

5,287

Total equity and liabilities

102,522

116,947

17,236

TENCENT MUSIC ENTERTAINMENT GROUP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended June 30

Six Months Ended June 30

2025

2026

2025

2026

 RMB 

 RMB 

 US$ 

 RMB 

 RMB 

 US$ 

 Unaudited  

 Unaudited  

 Unaudited  

 Unaudited  

 Unaudited  

 Unaudited  

(in millions)

(in millions)

Net cash provided by operating activities 

1,638

2,864

422

4,157

5,196

766

Net cash (used in)/provided by investing activities 

(633)

(3,718)

(548)

(3,854)

2,932

432

Net cash (used in)/provided by financing activities

(2,056)

6,262

923

(2,512)

7,273

1,072

Net (decrease)/increase in cash and cash equivalents 

(1,051)

5,408

797

(2,209)

15,401

2,270

Cash and cash equivalents at beginning of the period

12,022

18,416

2,714

13,164

8,470

1,248

Exchange differences on cash and cash equivalents

28

(126)

(19)

44

(173)

(25)

Cash and cash equivalents at end of the period

10,999

23,698

3,493

10,999

23,698

3,493

SOURCE Tencent Music Entertainment Group

Gold rose to 4,400 USD per ounce on Tuesday, reaching a two-month high. Demand for the precious metal is growing rapidly, even amid heightened inflation risks and expectations of higher interest rates driven by elevated oil prices.

Chinese institutional investors continue to build positions in gold as a defensive asset amid heightened volatility in other markets. China’s gold-backed ETFs are recording their longest run of inflows in months.

The People’s Bank of China is also supporting the market. In July, the regulator increased its gold reserves by approximately 20 tonnes, following an increase of around 15 tonnes in June – the largest monthly addition since October 2023.

At the same time, uncertainty persists around a potential US–Iran agreement that could end the conflict and reopen the Strait of Hormuz. Investors are also awaiting key US inflation data this week, which could shift expectations for future Federal Reserve policy.

Technical analysis

On the H4 XAU/USD chart, the market formed a consolidation range around the 4,341 USD level and, following an upside breakout, moved higher to 4,435 USD. A consolidation range is now forming below this level. A move lower towards 4,370 USD is expected next, with a possible extension to 4,340 USD. A further rise towards 4,575 USD is anticipated as the local upside target. The MACD indicator signals the early stages of bearish momentum, with its signal line above the centre line at recent highs and beginning to turn downwards.

On the H1 chart, the market broke above the 4,371 USD level and moved higher to 4,435 USD, followed by a correction to test 4,371 USD from above. A broad consolidation range is forming around 4,371 USD. A move higher towards 4,460 USD is expected, followed by a decline to 4,371 USD. The Stochastic oscillator confirms this scenario, with its signal line below 50 and pointing downwards towards 20, indicating increasing short-term downside pressure.

ConclusionGold has rallied to a two-month high, driven by robust demand from Chinese institutional investors and the People’s Bank of China’s continued reserve accumulation. Despite rising inflation risks and expectations of higher interest rates, the metal’s appeal as a defensive asset has strengthened amid market volatility. Uncertainty over a potential US–Iran agreement and the outlook for the Strait of Hormuz, along with upcoming US inflation data, continues to keep markets on edge. Technically, gold may see a short-term pullback towards 4,340–4,370 USD before potentially resuming its uptrend towards 4,575 USD. The metal’s near-term direction will depend on geopolitical developments and US monetary policy expectations.

By Reuters

August 11, 20267:26 AM UTCUpdated 1 hour ago

A Tesla logo is pictured on a car in the rain in the Manhattan borough of New York City, New York, U.S., May 5, 2021. REUTERS/Carlo Allegri/File Photo Purchase Licensing Rights, opens new tab

CompaniesTesla (TSLA.O), opens new tab is recalling 20,349 vehicles in the U.S. ​over low-beam headlights that may ‌be excessively bright, potentially reducing visibility for oncoming drivers ​and raising crash risk, ​the U.S. National Highway ⁠Traffic Safety Administration said ​on Tuesday.

Here are further details:

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

The ​recall affects certain Model 3 and Model Y vehicles, NHTSA said.

A ​remedy is yet ​to be finalized, according to the ‌auto ⁠safety regulator.

The recall comes as Tesla faces continuing regulatory scrutiny over vehicle safety.

In ​July, ​NHTSA said ⁠it had opened a preliminary investigation into ​about 1.2 million Tesla ​vehicles ⁠over reports of suspension failures that could lead ⁠to ​a loss of ​steering control.

Reporting by Ananya Palyekar in ​Bengaluru; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Intel (INTC -4.06%) posted its fastest revenue growth in nearly 15 years last month, with second-quarter revenue rising 25% year over year to $16.1 billion. But the unit the company's whole transformation is staked on, Intel Foundry, is still deep in the red. The chipmaking arm lost $2.1 billion in the quarter on $5.8 billion of revenue.

The loss, I'd argue, is where the progress lives. A year ago, the foundry lost $3.2 billion on $4.4 billion of revenue -- about 72 cents lost for every dollar the unit brought in. This quarter it lost about 36 cents per dollar. The loss per dollar of revenue halved in a year.

Intel has told investors the foundry should stop losing money in 2027, and the growth stock (up more than 160% in 2026 as of this writing) is priced as if that arrival is on schedule. So how much revenue does the foundry need before the losses stop?

Image source: Intel.

A smaller loss on more revenue The trend is now three quarters deep and pointed one direction. Intel Foundry's revenue climbed from $4.4 billion in the year-ago quarter to $5.4 billion in the first quarter of 2026 and $5.8 billion in the second. Its operating loss, meanwhile, narrowed from $3.2 billion to $2.4 billion and then $2.1 billion. And the second quarter's 31% year-over-year revenue growth was itself an acceleration, up from 16% in the first quarter.

The company's explanation is about the factories themselves. Production on Intel 18A, the company's newest widely deployed manufacturing process, came in about 25% above Intel's internal target and rose more than 50% from the first quarter. Better yields and faster cycle times are bringing down wafer costs, and Intel says the foundry has cut the cost of its main Panther Lake chip by roughly 50% so far this year.

Clearly, the factories are getting cheaper to run.

Intel's biggest customer is Intel But external customers supplied just $293 million of the foundry's $5.8 billion in quarterly revenue. The rest (roughly 19 of every 20 dollars) came from building chips for Intel's own product groups.

Of course, that internal demand is no small thing. Intel's data center and AI segment grew revenue 59% year over year last quarter, and the company says it is supply constrained, with data center customers demanding more chips than Intel can produce.

And chief financial officer David Zinsner said in the company's published earnings call remarks that customers "continue to signal a strong and sustainable spending environment." After all, a foundry filled by its owner's orders beats an empty one.

But internal revenue can only prove the factories work. It can't prove the business does.

Intel still hasn't announced a major outside customer for its leading-edge processes -- security specialist Fortinet, which in July became the foundry's first named customer under CEO Lip-Bu Tan, is buying chips built on an older process. Until other companies' chips fill these factories at scale, the foundry rises and falls with Intel's own product cycle.

Today's Change

(

-4.06

%) $

-4.13

Current Price

$

97.52

Break-even has a date Intel's stated target is foundry break-even in 2027. Zinsner said last year that getting there requires only a few billion dollars of additional external revenue. That's a small number against the unit's $23 billion annual revenue pace, and a large one against the roughly $1.2 billion annual pace external customers supply today.

The bridge is supposed to be Intel 14A, the next manufacturing process, which is being prepared for risk production -- early trial manufacturing -- in 2027 with high-volume output committed for 2028. Meaningful outside volume, in other words, likely arrives near the deadline, not ahead of it. And the spending comes first: Intel says it is substantially increasing its investments to support the demand it sees. On Monday, the company announced a $15 billion common stock offering to help fund the build-out without adding new debt.

To me, the external revenue line is the one to watch, and the arithmetic hasn't changed: outside customers pay Intel about $1.2 billion a year, and break-even needs a few billion more.

The loss math is improving at a pace that, I think, makes 2027 believable. The stock is another matter. At about $98 as of this writing, shares trade near 60 times next year's expected earnings -- a rich valuation by any standard, and a price that assumes the foundry bet has already been won.

The foundry is doing what Intel said it would, a quarter at a time. At this price, the stock needs it to keep doing exactly that for two more years.

When Broadcom (AVGO -1.25%) reported fiscal second-quarter results in early June, CEO Hock Tan repeated the biggest number in the company's story. Broadcom, he told analysts on the earnings call, still expects fiscal 2027 AI semiconductor revenue "in excess of $100 billion." For perspective, the company's total revenue over the past 12 months (enterprise software included) was about $75 billion.

The growth behind that target isn't in doubt. Artificial intelligence (AI) semiconductor revenue reached $10.8 billion in the fiscal second quarter of 2026 (the period ended May 3, 2026), up 143% year over year.

What's less settled is who all that money comes from. Tan says six core custom-chip customers drive the business, and to me, that customer count is the number worth studying before paying today's price for the stock.

Image source: The Motley Fool.

A $100 billion promise Broadcom's fiscal Q2 was a record almost everywhere you look. Total revenue rose 48% year over year to $22.2 billion. Semiconductor solutions revenue climbed 79% to $15.0 billion, while infrastructure software revenue grew 9% to $7.2 billion. And free cash flow came in at $10.3 billion, or 46% of revenue.

The AI line is doing the pulling, and it's speeding up. A year earlier, quarterly AI semiconductor revenue was about $4.4 billion. In fiscal Q2 it hit a record $10.8 billion.

"The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion," Tan said in the company's earnings release.

Chain those three periods together and you get an AI business that is accelerating, not settling down. Against that trajectory, a fiscal 2027 target bigger than the whole company's current annual revenue starts to sound less like a stretch and more like arithmetic.

Six buyers, most of the money Tan said on the June call that Broadcom has six core custom-chip customers, and Alphabet's Google unit, Meta Platforms, Anthropic, and OpenAI are among them. In December, Tan said Anthropic alone had placed a $10 billion order for AI chips.

A $100 billion-plus target spread across six core buyers works out to an average of more than $16 billion apiece in fiscal 2027.

And the list isn't broadening. Tan said the two core customers he doesn't name have placed purchase orders totaling $6 billion so far, with shipments starting late this year and accelerating into 2027.

That is the scale problem in one number: $6 billion would be a meaningful order book for almost any chipmaker, and it's about 6% of the fiscal 2027 target.

What could slow it down? Worth being clear about what management has and hasn't said here: Tan hasn't laid out a scenario where the forecast breaks. The concentration concern is my own, not one he raised.

But custom AI chips are capital projects. The six customers funding Broadcom's growth are all spending against the same AI build-out, on roughly the same clock. If even two of them paused their orders at the same time (because computing demand disappointed, or because a budget cycle turned), there's no long tail of smaller buyers underneath to absorb the hit.

A pause wouldn't even need to be dramatic. Tan himself noted on the call that the bookings coming in aren't for immediate delivery, and that customers still have other pieces to put in place before those chips can be delivered. A single delayed project could push billions of dollars of revenue into a later year.

Of course, some of the business doesn't ride that cycle. Infrastructure software, at $7.2 billion a quarter and growing 9%, is the steady piece of the company. And commitments from customers this large will likely take years to play out either way.

Today's Change

(

-1.25

%) $

-5.36

Current Price

$

422.40

Priced for the ramp At about $428 as of this writing, Broadcom trades at about 22 times the roughly $19.50 per share analysts expect the company to earn in fiscal 2027. Its price-to-earnings ratio on trailing GAAP earnings is about 71. The market, in other words, has moved on to next year's earnings -- the ramp Tan is promising is already baked into the price.

That's arguably a reasonable trade. After all, Broadcom has beaten its own AI forecasts repeatedly, and the fiscal Q3 outlook calls for the fastest AI growth yet.

But a $2 trillion valuation carried by six budgets is a different risk from a $2 trillion valuation carried by thousands of customers. The business is executing about as well as anything in the AI build-out. The customer list it depends on is short, and that is the risk I'd weigh most at this price.