Track market-moving stories before they get noisy

It has been an up-and-down year for Iren (IREN +2.86%), but the stock of the neocloud operator surged 20% on July 20 after it announced $2.8 billion in new contracts. The stock has more than doubled over the past year, but has also been cut nearly in half from its highs.

The average weighted length of Iren's new contracts is four years and includes deals with hyperscalers, frontier labs, artificial intelligence (AI) developers, and enterprises. It also said that its recent arrangements include prepayments covering approximately 45% of the cost of the graphics processing units (GPUs) to be used in the deployments.

In addition to its new contract announcements, Iren also increased its year-end AI cloud computing annual revenue run rate outlook to more than $4 billion, up from a prior target of $3.7 billion. The company is expanding aggressively. A year ago, it had a capacity of 3 megawatts, and it's expected to bring that total to 480 megawatts in 2026 and 1.2 gigawatts in 2027. Despite its growth, it said demand continues to exceed its planned capacity additions.

Image source: The Motley Fool.

Iren is one of a handful of former Bitcoin miners that have shifted their focus toward AI data centers. While at first this shift may seem like a red flag, it actually does make a lot of strategic sense.

Cryptocurrency miners built their business around securing land for large campuses and securing power from utilities at attractive prices. After the AI boom, both of these became valuable assets, with access to cheap energy becoming a major AI data center bottleneck. Historically, Iren and others have been beholden to the price of Bitcoin, but moving to AI data centers gives them a more predictable and profitable business model.

And Iren hasn't been standing still. It acquired software and infrastructure companies, such as Mirantis, to create a fully integrated software layer and offer a full end-to-end cloud platform. And with permitted sites and power locked up in Texas and Australia, the company has a clear pathway for expansion.

Today's Change

(

2.86

%) $

1.18

Current Price

$

42.47

Iren has also partnered with other large players in the space, including Nvidia and Microsoft. It secured a massive five-year, $3.4 billion cloud services contract directly with Nvidia to host its internal AI and research workloads. It also has a $9.7 billion, five-year deal with Microsoft, with it dedicating 200 megawatts of power to the cloud giant.

While building massive data centers is a capital-intensive business, Iren has structured its deals to secure upfront cash payments to help fund GPUs. This helps somewhat de-risk the business and makes it a speculative, but intriguing, stock to add given its momentum.

ProPetro Holding (PUMP - Free Report) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis oilfield services company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +85.7%.

Revenues are expected to be $300.51 million, down 7.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 60% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for ProPetro?For ProPetro, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +52.38%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that ProPetro will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that ProPetro would post a loss of$0.12 per share when it actually produced a loss of -$0.03, delivering a surprise of +75.00%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ProPetro appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Artificial intelligence provides some great opportunities for many companies today. But it’s also a very expensive proposition that’s weighing down some of the biggest companies in the stock market. Meta Platforms (META -2.31%) is down 3% so far this year on fears that the company is taking on too much debt as it invests in AI infrastructure.

Meta’s balance sheet shows that the company has about $58.7 billion in long-term debt. But a new report indicates that the company’s debt load is much greater. Nikkei Asia reports that Meta Platforms has another $420 billion in off-balance-sheet debt. That number has grown substantially since 2022, the outlet reported.

Should investors be concerned about Meta Platforms’ stock?

Image source: The Motley Fool.

What is off-balance-sheet debt?Publicly traded companies are required to report the amount of debt they are incurring. But under accounting rules, equipment such as graphics processing units and servers that are under long-term contracts but not yet delivered is treated as an off-balance-sheet item. Meta and other companies disclose future debt in annotations on their financial statements.

When Meta’s GPUs are delivered and the data centers become operational, this hidden debt will begin to appear on the quarterly balance sheet.

Meta is one of five companies -- the others being Alphabet, Amazon, Microsoft, and Oracle -- analyzed in the Nikkei Asia report. The five companies, all of which are making significant investments in AI infrastructure, have a collective $1.65 trillion in debt that is not reflected on the companies' balance sheets.

Meta is accelerating its spending on AIMeta Platforms shows no appetite to slow its spending. The company spent $72 billion on capital expenditures in 2025 -- most of it related to AI -- and said in its first-quarter report that it would spend between $125 billion and $145 billion this year.

Today's Change

(

-2.31

%) $

-14.85

Current Price

$

628.96

Its $50 billion Hyperion data center planned for Louisiana is getting a lot of attention. The center was first announced as a $27 billion project funded by Meta’s joint venture with Blue Owl Capital. But in June, Meta announced it was expanding the project from a 2-gigawatt center to 5 gigawatts of capacity as it seeks to build out enough AI infrastructure to meet demand.

Blue Owl and its partners are funding the construction, allowing the project to remain off Meta’s balance sheet. Blue Owl will own 80% of Hyperion, with Meta owning the remaining 20%.

Should investors be concerned about Meta’s debt?On the one hand, $420 billion is a big number. There are only 30 companies in the world with an entire valuation of more than $420 billion, so when Meta takes on that much debt that hasn’t even made it to its balance sheet yet, it can seem pretty scary.

Meta is making huge, long-term commitments based on the idea that AI demand will justify the infrastructure. It appears to be transitioning its business away from the so-called metaverse toward hyperscaler services. That means investors should be prepared for lower margins, perhaps as early as when the company reports second-quarter earnings after the market closes on July 29.

Evercore analyst Mark Mahaney recently told CNBC that he doubts that Meta will attempt to compete head-to-head with Amazon, Microsoft, and Alphabet -- the three largest hyperscalers by market share. Instead, he sees Meta attempting to challenge neocloud providers such as CoreWeave and Nebius Group in offering AI-specific computing products, including AI chips and systems.

Either way, I expect Meta to shed more light on the picture when it reports earnings next week.

EVs, AI, Robots and RobotaxisTesla reports their second-quarter financial results Wednesday after market close and similar to recent quarterly reports, the information and management commentary could be less about consumer electric vehicles and more about AI, robots and autonomous vehicles.

Benzinga asked viewers about Tesla’s future growth plans.

The results are:

Humanoid Robots (Optimus Bot): 32% Robotaxis: 30% New electric vehicle models: 26% FSD Monthly subscriptions: 12% While the Optimus Bot won, the poll divided Benzinga readers on humanoid robots, robotaxis and new EV models. FSD monthly subscriptions finished last in the poll with only 12%.

The fact that humanoid robots and robotaxis got 62% of the votes in the poll signals a major shift for Tesla and one that CEO Elon Musk is betting on.

Musk has said that FSD and Optimus are "the biggest factors" in Tesla achieving its Master Plan Part 4.

"80% of Tesla’s value will be Optimus," Musk tweeted previously.

“I think that’s probably correct if we execute well on autonomous transport and Optimus,” Musk said.

In June 2024, Musk also said Optimus could help Tesla hit a $25 trillion market capitalization.

Tesla is expected to begin third-party sales and high-volume production of Optimus in 2027.

Tesla Q2 EarningsTesla has beaten analyst estimates for revenue and earnings per share in two straight quarters, but the stock price has fallen after three of the last four earnings reports with an average loss of 5% over that time.

The revenue and earnings per share continue to matter less for Tesla investors and analysts than the commentary from Musk and the future timeline for items like FSD, new vehicles, robotaxis and the Optimus Bot.

Tesla gave updates on robotaxi paid miles, robotaxi city rollouts, FSD subscriptions and a timeline on its vehicle releases during its first-quarter earnings report and conference call.

“We are excited about Tesla’s positioning in 2026 with tailwinds persisting for the auto business, our continued progress on FSD 4, the ramp of Robotaxi, progress on Optimus ahead of mass production and the growth of our energy production capacity,” the company said after first-quarter results.

The previous timeline was for the Cybercab to enter volume production "this year."

Investors will be closely watching to see the update numbers on these growth initiatives and an updated timeline on releases.

Price ActionTesla stock is down 0.3% to $377.98 on Wednesday versus a 52-week trading range of $297.82 to $498.83. The company’s shares are down 13.8% year-to-date in 2026.

Photo courtesy: Rokas Tenys on Shutterstock.com

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Item 1 of 2 The logo of Amazon is pictured at a company logistics center in Carquefou near Nantes, westren France, May 6, 2026. REUTERS/Stephane Mahe

[1/2]The logo of Amazon is pictured at a company logistics center in Carquefou near Nantes, westren France, May 6, 2026. REUTERS/Stephane Mahe Purchase Licensing Rights, opens new tab

SAN FRANCISCO, July 22 (Reuters) - Amazon (AMZN.O), opens new tab on Wednesday cut jobs in ​its artificial general intelligence group, marking the latest in ‌a series of smaller reductions across the company since a much larger one in January.

Artificial general intelligence is a hypothetical AI system that surpasses ​human intelligence and can learn, grow and operate autonomously. Many ​of the top AI companies are working to develop ⁠similar systems, with the hope of deploying them to solve ​difficult problems.

The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.

"We've been building large AI models for several years, ​and it remains one of the most important things we're working on," said an Amazon spokesman following a Reuters inquiry. "We’re sharpening our focus on the ​initiatives that matter most for customers, so we can move ​faster on what counts. That focus means some difficult decisions, including eliminating some ‌roles ⁠within parts of our AGI organization."

Rohit Prasad, a top Amazon executive overseeing AGI, left the company at the end of last year and the head of its AGI Lab, David Luan, left ​in February. AGI work ​was consolidated ⁠under senior vice president Peter DeSantis in December as part of a larger group that also ​includes silicon development and quantum computing.

Employees under Adeeb ​Shanaa, vice ⁠president of artificial general intelligence data services, and Vishal Sharma, vice president of AGI information, reported being impacted by the cuts on ⁠online ​forums on Wednesday. However, the full ​scope of the cuts could not immediately be learned.

Amazon cut 16,000 jobs across the company ​in January.

Reporting by Greg Bensinger; Editing by Chizu Nomiyama, Kirsten Donovan

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

Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world's largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.

by Kurt Schlosser on Jul 22, 2026 at 8:22 amJuly 22, 2026 at 8:22 am

(GeekWire File Photo / Todd Bishop) Microsoft is putting $60 million behind the U.S. Department of Energy’s Genesis Mission, a push to use artificial intelligence to speed up scientific research across the government’s 17 national labs.

The company’s investment is split into two pieces: $40 million in Azure cloud computing and AI credits over three years, and $20 million for engineering and deployment help to get DOE researchers actually using the tools, Microsoft said in a blog post Wednesday.

Microsoft is also launching a new internal group called SPARK — Scientific Partnership Advancing Research & Knowledge — to serve as the single point of contact between the company and DOE on Genesis Mission work. It’s meant to combine Microsoft’s program management, engineering, security and research teams into one coordinated effort, instead of leaving individual labs to navigate Microsoft on their own.

President Trump created the Genesis Mission through an executive order in November 2025, directing DOE to build a unified computing and data platform — since named the American Science and Security Platform — that connects the national labs’ supercomputers, AI tools and scientific datasets.

The order likened the effort’s urgency and ambition to the Manhattan Project, and the White House said it’s expanded into a whole-of-government initiative involving more than 15 federal agencies, backed by more than $5 billion in commitments.

Microsoft named four initial projects taking shape under the partnership, including work with Pacific Northwest National Laboratory in Richland, Wash., to speed up the discovery of new energy storage materials — cutting analysis that used to take years down to weeks — and autonomous lab work with Lawrence Livermore National Laboratory aimed at detecting biological threats earlier.

“We move faster together,” Chris Barry, president of Microsoft’s U.S. Public Sector business, wrote in the blog post announcing the commitment, framing the investment as both a “national security imperative” and economic opportunity for the U.S.

Microsoft isn’t the only Seattle-area cloud giant courting the Genesis Mission. Amazon Web Services was recognized by DOE as a Genesis Mission supporter in December, highlighting its work with Idaho National Laboratory on AI tools for nuclear reactor design, and the company launched its own Genesis Accelerator Initiative in February, offering up to $50 million in cloud credits for DOE-related research over three years.

Previous StoryNew Markdown rival: Open-source DGML format aims to turn docs into data that AI (and humans) can trust

For the quarter ended June 2026, AT&T (T - Free Report) reported revenue of $31.56 billion, up 2.3% over the same period last year. EPS came in at $0.65, compared to $0.54 in the year-ago quarter.

The reported revenue represents a surprise of -1.49% over the Zacks Consensus Estimate of $32.04 billion. With the consensus EPS estimate being $0.59, the EPS surprise was +10.17%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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

Internet Connections - Fiber: 12.87 million versus 12.81 million estimated by three analysts on average.Internet Connections- AT&T Business Fiber: 724 thousand versus the three-analyst average estimate of 722.67 thousand.Internet Net Adds- AT&T Business Fiber: 23 thousand compared to the 21.67 thousand average estimate based on three analysts.Internet Net Adds- AT&T Fiber: 344 thousand compared to the 290 thousand average estimate based on three analysts.Operating Revenues- Corporate and Other: $87 million versus the five-analyst average estimate of $90.93 million. The reported number represents a year-over-year change of -7.5%.Operating Revenues- Latin America: $1.22 billion versus $1.13 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.1% change.Operating Revenues- Legacy: $1.63 billion versus $1.67 billion estimated by five analysts on average.Operating Revenues- Advanced Connectivity: $28.62 billion compared to the $29.05 billion average estimate based on five analysts.Operating Revenues- Advanced Connectivity- Other service: $151 million versus the three-analyst average estimate of $155.96 million.Operating Revenues- Advanced Connectivity- Advanced home internet: $2.93 billion versus the three-analyst average estimate of $3.01 billion.Revenues- Latin America- Wireless equipment: $444 million compared to the $427.92 million average estimate based on three analysts. The reported number represents a change of +13.3% year over year.Revenues- Latin America- Wireless service: $780 million compared to the $678.12 million average estimate based on three analysts. The reported number represents a change of +17.8% year over year.View all Key Company Metrics for AT&T here>>>

Shares of AT&T have returned -2.4% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Wall Street expects a year-over-year decline in earnings on higher revenues when Procter & Gamble (PG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis world's largest consumer products maker is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of -4.7%.

Revenues are expected to be $21.36 billion, up 2.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.85% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for P&G?For P&G, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.23%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that P&G would post earnings of $1.56 per share when it actually produced earnings of $1.59, delivering a surprise of +1.92%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

P&G doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Wall Street expects a year-over-year decline in earnings on lower revenues when Qualcomm (QCOM - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis chipmaker is expected to post quarterly earnings of $2.22 per share in its upcoming report, which represents a year-over-year change of -19.9%.

Revenues are expected to be $9.71 billion, down 6.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.98% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Qualcomm?For Qualcomm, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.58%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Qualcomm will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Qualcomm would post earnings of $2.57 per share when it actually produced earnings of $2.65, delivering a surprise of +3.11%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Qualcomm doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways CCL delivered record Q2 revenues, yields, EBITDA and customer deposits despite geopolitical headwinds.Carnival plans measured fleet expansion while investing in ship upgrades and exclusive destinations.CCL has 93% of 2026 booked, with 2027 pricing and booking volumes already ahead of last year. Carnival Corporation (CCL - Free Report) is refining its growth strategy by combining measured capacity additions with greater investment in fleet modernization and destination-led differentiation. Second-quarter 2026 results underscored the progress of this strategy, as the company delivered record revenues, yields, EBITDA and customer deposits, while net income exceeded its March guidance by $100 million. Stronger commercial execution and cost discipline supported the outperformance despite geopolitical pressure on European demand.

Disciplined Growth Strategy Is Taking ShapeRather than accelerating new ship deliveries, Carnival plans to maintain a measured cadence of one to two vessels annually. The company ordered three Princess Cruises ships for delivery in 2035, 2038 and 2039 while expanding modernization programs across AIDA and Holland America Line. These upgrades are designed to enhance guest experiences, create additional onboard revenue opportunities and improve operating efficiency.

Controlled destinations are also becoming a more important growth lever. Carnival completed infrastructure improvements at Celebration Key and RelaxAway, Half Moon Cay, increasing capacity and itinerary flexibility. The broader Paradise Collection is expected to receive more than 9 million guest visits next year. Approximately 85% of Carnival’s Caribbean itineraries are projected to include at least one exclusive destination, with nearly half including two or more.

Carnival’s financial flexibility continues to improve alongside these investments. The company has repurchased more than $450 million of shares and reduced its net debt-to-adjusted EBITDA ratio to 3.1 times. Although the Middle East conflict prompted an approximately one-percentage-point reduction in normalized yield-growth guidance, Carnival views the pressure as temporary. With 93% of 2026 already booked and booking volumes and pricing for 2027 and beyond running ahead of last year, the longer-term demand outlook remains constructive.

How Does Carnival Compare With Cruise Industry Rivals?Carnival competes with Royal Caribbean Group (RCL - Free Report) and Norwegian Cruise Line Holdings (NCLH - Free Report) , which are also investing in ships, destinations and commercial capabilities.

Royal Caribbean is pursuing an ecosystem-led growth model centered on Icon-class ships, Royal Beach Clubs, Perfect Day destinations, technology and loyalty. RCL continues to expect double-digit revenue and earnings growth, supported by strong demand, record pricing and disciplined cost control.

Norwegian Cruise, meanwhile, is focused on an operational turnaround after entering 2026 behind its targeted booking curve. NCLH is improving revenue management, marketing effectiveness and organizational efficiency while targeting $125 million of annualized SG&A savings. However, internal execution challenges and softer European demand could make its revenue recovery more gradual.

Carnival’s strategy stands out through its emphasis on measured fleet growth, high-return modernization and exclusive destinations. The model does not abandon traditional capacity expansion, but it broadens the industry playbook by seeking to generate greater earnings from existing assets while preserving capital flexibility.

CCL’s Price Performance, Valuation & EstimatesShares of Carnival have dropped 1.9% in the past three months against the industry’s 0.4% growth.

CCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 10.64, significantly below the industry’s average of 16.65.

CCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CCL’s fiscal 2026 earnings implies a year-over-year decline of 1.8%. The EPS estimates for fiscal 2026 have declined in the past 30 days.

EPS Trend of CCL Stock
Image Source: Zacks Investment Research

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

Jefferies believes detailed data on AstraZeneca PLC's (LSE:AZN, NASDAQ:AZN) experimental lung drug tozorakimab could more than compensate investors for the recent failure of a separate heart trial.

The bank has reiterated its buy rating and 17,500p price target, implying 41% upside from the current 12,380p, and flagged the 8 September presentation at the European Respiratory Society congress as the key catalyst.

The collapse of the CARDIO-TTRansform study stripped $4 billion from Jefferies' longer-term forecasts and cut roughly 30 basis points from its estimated growth rate for 2027 to 2030.

Analyst Michael Leuchten argues that loss is recoverable and that the market is underappreciating what tozorakimab could add.

The drug targets IL-33, an inflammatory signalling protein released when lung tissue is damaged by smoke or infection, and would be the first medicine of its kind approved for chronic obstructive pulmonary disease, a progressive condition that narrows the airways.

Three trials have already reported positive headline results, but the underlying numbers have not been published.

What matters commercially is breadth of label.

Existing biologic treatments such as Sanofi and Regeneron's Dupixent work mainly in patients with high eosinophil counts, a type of white blood cell, which restricts them to somewhere between 10% and 40% of the patient population.

Because IL-33 acts further upstream, tozorakimab could work regardless of eosinophil levels, opening the door to current smokers and patients with low counts who have no approved biologic option.

Jefferies' statistical modelling suggests the drug is likely delivering at least a 30% reduction in flare-ups among former smokers, comfortably competitive with Dupixent, with a signal in other subgroups.

On that basis, the bank puts peak sales at more than $5 billion beyond 2030, against consensus of $2.9 billion for 2032.

It also cautions that AstraZeneca will need more than one drug in the category, with roughly half the rival pipeline of dual-target antibodies originating in China and progressing quickly.

Key Takeaways Intuitive Surgical kept full-year procedure growth guidance despite slower U.S. da Vinci procedures.ISRG expanded operating margin and raised gross margin outlook on cost cuts and manufacturing efficiencies.Intuitive Surgical's advanced AI software, robotics and international expansion will support long-term growth. Intuitive Surgical (ISRG - Free Report) continues to command a valuation premium over the medical technology industry, though that premium has narrowed significantly. The stock currently trades at 9.89X forward 12-month sales, its lowest level in the past 18 months compared with a historical median of 15.89X, while the industry trades at 3.77X. The compressed multiple reflects investor concerns over moderating U.S. procedure growth, but the company's latest results suggest its long-term competitive advantages remain intact.

The key overhang is slowing procedure growth. U.S. da Vinci procedures rose 12% in the second quarter, below recent trends, as management cited deferred benign surgeries due to changes in ACA premium subsidies and the law of large numbers. However, the company maintained its full-year procedure growth guidance of 13.5-15.5%, expecting results near the midpoint, indicating confidence that deferred demand will eventually return.

Meanwhile, profitability continues to strengthen. Second-quarter adjusted gross margin expanded 30 basis points (bps) to 70% and adjusted operating margin expanded 330 bps to 42%, supported by product cost reductions, operating leverage and robust adoption of da Vinci 5. Management also raised its full-year gross margin outlook by 50 bps to 68-69%, highlighting the ability of the business to offset inflationary pressures through scale and manufacturing efficiencies.

Beyond procedures, Intuitive Surgical is widening its competitive moat through software and ecosystem expansion. The company rolled out the first wave of more than 100 planned da Vinci 5 software updates, renewed its My Intuitive+ AI-enabled digital platform without customer opt-outs and continues to invest heavily in AI and workflow automation. Product innovation remains robust with continued momentum in SP and Ion, expansion of XiR into cost-sensitive markets, development of a next-generation GI robotic platform and new cardiac-specific technologies.

Geographic diversification also provides an important growth lever. While China remains challenging, strong momentum in Europe, India, Japan and other international markets, coupled with favorable reimbursement changes and broader robotic adoption, supports long-term expansion. Investments in new indications, higher-value software offerings and next-generation robotics reinforce Intuitive Surgical's durable growth profile. Although near-term procedure moderation may keep valuation multiples below historical peaks, the company's innovation engine, recurring revenue model and expanding global footprint justify its continued premium over industry peers.

Peer UpdatesGlaukos (GKOS - Free Report) continues to command a premium valuation, trading at 12.54X forward sales, well above its five-year median of 9.9X and the industry's 3.77X, reflecting investors' confidence in its ability to create entirely new ophthalmology markets. The first quarter reinforced this narrative with 41% revenue growth, driven by rapid adoption of iDose TR, a raised full-year revenue outlook and the commercial launch of Epioxa. Management believes Epioxa can become another transformational growth platform. Beyond these launches, an expanding clinical pipeline, growing reimbursement support, international glaucoma expansion and a disciplined focus on operating leverage strengthen the long-term investment case. While execution risks around Epioxa reimbursement and competitive pressures remain, sustained innovation, multiple growth drivers and a diversified ophthalmology portfolio support Glaukos' ability to justify its premium valuation over time.

IDEXX Laboratories (IDXX - Free Report) trades at 8.81x forward sales, below its five-year median of 10.14x but still well above the industry's 3.77x, reflecting its durable competitive advantages in veterinary diagnostics. The first quarter demonstrated why investors continue to assign a premium, as the company delivered 14% reported revenue growth, expanded operating margins and raised full-year guidance despite declining clinic visits. Growth continues to be driven by higher diagnostics utilization, premium instrument placements, expanding recurring revenues, cloud-based software adoption and AI-enabled innovations such as inVue Dx and Cancer Dx. High customer retention, increasing international penetration and continued software integration further reinforce recurring revenue visibility. Although softer wellness visits remain a near-term headwind, IDEXX's innovation-led ecosystem, pricing power and expanding diagnostics penetration position the company to sustain a premium valuation relative to peers over the long run.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 38.2% so far this year compared with a 16.3% decline for the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-sales of 9.89X, above the industry average. It is trading close to its five-year low of 9.66X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 17.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways LMT is expanding missile, fighter and munitions programs with a $186.4B backlog supporting growth.General Dynamics ended Q1 2026 with a $130.84B backlog and $188.44B in estimated contract value.GD and LMT differ on valuation, debt, earnings estimate revisions and recent share performance. Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) derive a significant portion of their revenues from the U.S. Department of Defense and play critical roles in supporting national security through the development of advanced military platforms, combat systems, naval vessels, aerospace technologies and mission-critical services. Their long-standing relationships with the Pentagon, combined with large contract backlogs and exposure to rising global defense spending, make them natural peers for investors evaluating opportunities in the defense sector.

Both companies are positioned to benefit from long-term trends supporting defense spending. Heightened geopolitical tensions, military modernization efforts, growing demand for missile defense systems, increased naval investment and rising defense budgets among NATO allies and Indo-Pacific nations are driving sustained demand for advanced defense technologies. Since governments typically commit to multi-year procurement programs, both Lockheed Martin and General Dynamics enjoy relatively predictable revenue streams supported by long-term contracts and sizeable order backlogs.

Let's compare the two stocks' fundamentals to determine which one is better positioned at present.

Factors Acting in Favor of LMT StockLockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. In the first quarter of 2026, Missiles and Fire Control was awarded $7 billion of PAC-3 contracts, including a fully funded $4.8 billion undefinitized contract, and the company also secured long-lead materials for F-35 Lots 20 and 21. These order flows, together with continued activity across strategic missile, combat systems and sustainment work, underpin a backlog of $186.4 billion as of March 29, 2026.

Management indicated that the current U.S. budget rollout reflects priorities such as accelerating munitions production, strengthening integrated air and missile defense, advancing next-generation aircraft and expanding space capabilities. These areas align closely with the company’s core platforms across PAC-3, THAAD and PrSM, as well as fighter and strategic programs. LMT has also signed multiyear framework agreements with the Department of War to scale munitions production and is planning investments across more than 20 new or modernized facilities, which can improve capacity planning and reduce supply-chain bottlenecks over time.

Factors Acting in Favor of GD StockGeneral Dynamics’ solid number of award wins and a strong global presence will help maintain a steady growth momentum. At the end of the first quarter of 2026, the company witnessed a solid backlog of $130.84 billion, driven by a strong order inflow. The estimated contract value, which combines the total backlog with the potential contract value, totaled $188.44 billion at the end of the first quarter of 2026. The strength of the order flow was driven by strong demand across the company’s product and services portfolio.

Significant awards won by General Dynamics in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program. Such impressive order trends and strong backlog count indicate solid demand for the company’s products, thereby bolstering its revenue generation prospects significantly.

How Does the Zacks Consensus Estimate Compare for LMT & GD?The Zacks Consensus Estimate for Lockheed Martin’s 2026 earnings per share (EPS) indicates an increase of 0.03% over the past 60 days. 
 

Image Source: Zacks Investment Research

The consensus estimate for General Dynamics’ 2026 EPS indicates an increase of 0.12% over the past 60 days.

Image Source: Zacks Investment Research

Valuation for LMT & GDLockheed Martin shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.44X compared with General Dynamics’ 1.76X.

LMT & GD’s Debt PositionCurrently, Lockheed Martin and General Dynamics’ total debt to capital is 73.43% and 23.51%, respectively.

Image Source: Zacks Investment Research

LMT & GD’s Price PerformanceIn the past three months, shares of General Dynamics have increased 15.4%, while those of Lockheed Martin have declined 4.3%, compared with the industry’s growth of 1%.

Image Source: Zacks Investment Research

LMT or GD: Which is a Better Choice Now?Lockheed Martin continues to secure major defense contracts across its core missile, fighter aircraft and sustainment programs. LMT is also well-positioned to benefit from U.S. defense priorities focused on expanding munitions production, strengthening missile defense and advancing next-generation aircraft. General Dynamics continues to benefit from strong demand across its defense portfolio, with robust contract wins supporting a large backlog and providing solid long-term revenue visibility. Recent major program awards, particularly in naval defense, highlight the company's strong market position and reinforce its growth prospects as it executes on long-term government contracts.

Our choice at the moment is General Dynamics, given its better price performance, strong earnings growth and better debt position than Lockheed Martin. GD carries a Zacks Rank #2 (Buy) and LMT has a Zacks Rank #3 (Hold) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wall Street expects a year-over-year increase in earnings on higher revenues when Bunge Global (BG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis agribusiness and food company is expected to post quarterly earnings of $2.03 per share in its upcoming report, which represents a year-over-year change of +55%.

Revenues are expected to be $23.49 billion, up 84% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.97% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Bunge Global?For Bunge Global, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.24%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination makes it difficult to conclusively predict that Bunge Global will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Bunge Global would post earnings of $0.97 per share when it actually produced earnings of $1.83, delivering a surprise of +88.66%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Bunge Global doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways ADP stock gained 23% in three months, beating the industry and broader market.Wider EBIT margins helped ADP turn revenue growth into stronger earnings gains.ADP paid $1.9 billion in dividends and ended the quarter with $3.2 billion in cash. ADP (ADP - Free Report) stock has rallied over the past three months. The company’s shares have surged 23%, outperforming the industry’s 1.4% growth and the Zacks S&P 500 Composite's 4.5% appreciation.

3-Month Share Price Performance                                                                   Image Source: Zacks Investment Research

Let us delve into the factors that have contributed to the company’s outperformance.

Strong Margins Anchor ProfitabilityADP’s top line moved up 3.6% sequentially during the second quarter of fiscal 2026, which then increased exponentially by 10.8% during the third quarter of fiscal 2026. This top-line momentum was accompanied by 7.7% and 28.6% sequential growth in adjusted EBIT in the second and third quarters of fiscal 2026, respectively.

A disproportionate growth between revenues and adjusted EBIT is a clear indication of heightened operational efficiency, as evidenced by a 50 basis points (bps) and 420 bps expansion in adjusted EBIT margins during the aforementioned quarters.

These strong margins translated into significant improvement in net earnings, resulting in impressive bottom-line growth. During the second quarter of fiscal 2026, net earnings increased 4.8% sequentially, resulting in a 5.2% upsurge in the bottom line.

Although similar, the momentum achieved during the third quarter of fiscal 2026 was aggressive, as net earnings spiked 28% sequentially, pushing the bottom line up by 29%. This performance is a testament to ADP’s ability to convert incremental revenue gains into high-margin bottom-line growth, fortifying investor morale in the scalability of its operations.

Dividends Attract Income-Seeking InvestorsADP has a consistent track record of dividend payments. The company paid $1.9 billion, $2.2 billion and $2.4 billion in dividends during fiscal 2023, 2024 and 2025, respectively. During the nine months ended as of March 31, 2026, ADP paid $1.9 billion in dividends, a substantial rise from the year-ago period’s $1.8 billion. Such moves, despite turbulent cash flow, indicate the company’s commitment to returning value to shareholders and underline its confidence in the business.

Solid Balance Sheet Bolsters LiquidityADP’s balance sheet reveals that it holds a cash chest of $3.2 billion as of the end of the third quarter of fiscal 2026 compared with no current debt, strengthening its liquidity. It is further justified by a current ratio of 1.04 during the third quarter of fiscal 2026 that improved marginally from the year-ago quarter. While the metric stands lower than the industry average of 1.9, being above 1 bodes well with investors, signaling efficiency in covering short-term obligations.

Zacks Rank & Stocks to ConsiderADP currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Amphenol Corporation (APH - Free Report) and MKS Inc. (MKSI - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol Corporation has a long-term earnings growth expectation of 24%. Amphenol Corporation delivered a trailing four-quarter earnings surprise of 14.1%, on average.

MKS has a long-term earnings growth expectation of 29.9%. MKS delivered a trailing four-quarter earnings surprise of 7.5%, on average.

Can Trupanion Turn Pet Insurance Loyalty Into Real Earnings?Chubb NYSE: CB reported a strong second quarter of 2026, with Chairman and Chief Executive Officer Evan Greenberg pointing to underwriting performance, investment income, life insurance growth and global diversification as key contributors to results.

Core operating earnings were $2.8 billion, or $7.26 per share, up 14.6% and 18.2%, respectively, from the prior year, Greenberg said on the company’s earnings call. Tangible book value per share rose 17.1% year over year, which Greenberg described as the company’s “most important measure of shareholder wealth creation.”

Get Chubb alerts:

3 Insurance Stocks That Can Act as a New Inflation Hedge The insurer posted an annualized core operating return on tangible equity of 21.2% for the quarter and a core operating return on equity of 14.5%. Property and casualty underwriting income exceeded $1.9 billion, up almost 19%, with a combined ratio of 83.8%. On a current accident year basis excluding catastrophe losses, the combined ratio was 82.2%.

Investment Income Hits Record Level Adjusted net investment income reached a record $1.88 billion, up more than 11%, supported by performance in fixed income and alternative asset portfolios. Greenberg said the fixed income portfolio yield was 5.1%, while the current new money rate averaged 5.5% as of June 30. Chubb’s invested assets stood at $175 billion, up from $161 billion a year earlier.

Looking to Insure Your Portfolio? Start With These 3 StocksChief Financial Officer Peter Enns said adjusted operating cash flow totaled $3.5 billion in the quarter. He also noted that Chubb issued $2.2 billion of debt across several currencies at a weighted average cost of 4.2% and an average term of about 7.5 years, with proceeds intended for general corporate purposes, including repayment and refinancing of debt.

Enns said Chubb returned $1.4 billion of capital to shareholders in the quarter, including $979 million of share repurchases at an average price of $327.18 per share and $395 million in dividends. The company ended the quarter with book value of $75 billion, or $195.45 per share. Book value per share and tangible book value per share excluding accumulated other comprehensive income grew 2.8% and 3.8%, respectively, during the quarter.

Chief Investment Officer Chris Hogan said the public fixed income portfolio generated $1.63 billion of income, up 12% year over year, while private investments, representing 12% of the portfolio, contributed $250 million, up 9.5%. Hogan called the current environment “ideal” for investment-grade bond investors, citing reinvestment rates above the portfolio’s book yield.

Premium Growth Varies by Business Line Global property and casualty premiums rose 3%, or 6.3% excluding large account and excess and surplus property, Greenberg said. Overseas general premiums grew 10.2%, or 4.8% in constant dollars. North America premiums increased about 0.5%, as commercial lines declined 2.3%, while personal lines and accident and health each rose 6%.

Greenberg said the “substantial majority” of Chubb’s businesses are growing, while some are flat or shrinking because of inadequate pricing or terms. He specifically cited U.S. large account and E&S property as an area where the company again reduced premium volume.

International retail, which Greenberg said produces more than $17 billion in annual gross premiums and operates in 51 countries, grew almost 12%, or about 6% in constant dollars. Consumer-related businesses, including accident and health and personal lines, were up more than 12%, while commercial lines rose more than 11%. Latin America grew 15.6%, Asia grew 12% and Europe grew nearly 7.5%.

In North America commercial, middle market and small commercial premiums grew almost 9%, with property and casualty lines up 12% and financial lines down about 3%. Premiums in major account and specialty, including E&S, declined 9% because of property.

In North America personal lines, Chubb’s high-net-worth business generated 6% premium growth and renewal retention of 90% on an account basis. Greenberg said the North America personal lines business now produces more than $8 billion in annual gross premiums.

Greenberg Warns on Casualty Pricing Greenberg said soft market conditions have begun to extend beyond property into more casualty lines, particularly in E&S. He said certain classes of large account and middle market business are becoming more competitive, and pricing in multiple casualty areas is not keeping pace with loss costs.

“U.S. casualty loss costs are rising at a pretty steady 6%-7% for primary casualty, and 9.5%-12% for excess,” Greenberg said, adding that pricing can become inadequate quickly under those conditions. He said financial lines remain soft, with some newer market participants and managing general agents underwriting at prices and terms he considers inadequate.

In North America, commercial property and casualty pricing excluding financial lines and workers’ compensation was up 1.3%, with rates down 1.4% and exposure change of 2.7%. Property pricing was down about 6%, while casualty pricing rose 7.1%, including a 6.4% rate increase and 0.7% exposure growth. Financial lines pricing was up 0.3%.

Asked during the question-and-answer session about casualty pricing, Greenberg said the issue was not limited to commercial auto. “It’s across casualty,” he said, adding that there is “zero evidence across the industry” that loss costs have abated.

Life Insurance and Worksite Benefits Grow Life income was $332 million, up 9% from a year earlier. Greenberg said international life insurance premiums and deposits rose almost 14.5%, with most exposure in Asia and most growth in North Asia, including China, Hong Kong, Korea and Taiwan.

Chubb’s North America Worksite Benefits business grew premiums 14%. Greenberg said the business has been built steadily over more than five years, through brokerage distribution tied to small and middle market commercial relationships and through a retooled agency force focused on small and lower middle market employers.

Greenberg said the company sees “a tremendous opportunity” to continue growing Worksite Benefits organically at double-digit rates, and expects it to become a more significant contributor to Chubb’s top and bottom line over time.

Reserves, Catastrophe Losses and Capital Pre-tax catastrophe losses were $475 million, principally from weather-related events in the U.S., Enns said. Chubb recorded favorable pre-tax prior period development of $441 million in active companies, with 89% from short-tail lines and 11% from long-tail lines. The corporate runoff portfolio had adverse development of $158 million, more than two-thirds of which came from molestation-related claims development.

Net loss reserves increased to nearly $69 billion, up 4% from the second quarter of 2025. The paid-to-incurred ratio was 90% for the quarter, or 86% excluding catastrophe losses, prior period development and agriculture. When asked why the ratio remains below pre-pandemic levels, Greenberg said it “speaks to overall the strength of our reserves.”

Enns said the core operating effective tax rate was 19.2% for the quarter, below the company’s previously guided range because of shifts in income mix and discrete tax benefits. Chubb continues to expect a full-year core operating effective tax rate of 19.5% to 20%.

Greenberg said Chubb remains confident in its ability to generate strong operating earnings growth and double-digit tangible book value growth over time, while acknowledging softer commercial property and casualty market conditions. “We have many sources and handles to pull,” he said, citing the company’s global mix, life business, invested assets and capital management.

About Chubb (NYSE:CB)Chubb is a global property and casualty insurance company that underwrites a broad range of commercial and personal insurance products and related services. Its offerings include commercial property and casualty coverage, specialty liability, professional and management liability, cyber and technology insurance, marine and energy, surety, accident and health solutions, and high-net-worth personal lines such as homeowners, auto and valuables protection. Chubb serves businesses, individuals and institutions with tailored underwriting and risk-transfer solutions across multiple industry sectors.

In addition to core underwriting, Chubb provides risk engineering, loss control, claims management and risk consulting services intended to reduce loss severity and help clients manage exposures.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Chubb Right Now?Before you consider Chubb, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Chubb wasn't on the list.

While Chubb currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.

Get This Free Report

On CNBC’s Mad Dash segment on Wednesday, July 22, Jim Cramer credited CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) and CEO George Kurtz with calling machine-on-machine attacks before the broader market caught on. “CrowdStrike has long predicted, George Kurtz, that one day the machines would take over, the robots would attack the robots,” Cramer said.

Video Muted

Following recent security incidents involving AI companies, Cramer called machine-on-machine attacks a “watershed moment” that could increase demand for the world’s best cybersecurity solutions: “This is what’s happened in OpenAI, Hugging Face. This is a watershed moment. The machines can take over. It’s very difficult to stop.” He added, “You need certain detection and response. I know that CrowdStrike predicted this in the last quarter.“

CrowdStrike Says Cybersecurity and Frontier AI Have Collided Cramer’s framing aligns with what Kurtz told investors on the Q1 FY27 call. “In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption,” Kurtz said, pointing to record net new annual recurring revenue, the QuiltWorks coalition, and AI Detection and Response (AIDR) as evidence of an inflection.

CrowdStrike posted Q1 FY27 revenue of $1.385 billion, up 25.6% year-over-year, and non-GAAP EPS of $1.10 versus the $1.0675 consensus. Net new ARR came in at $255.80 million, up 32% year-over-year, pushing total ARR to $5.51 billion. Free cash flow reached $468.5 million, up 66.76%, with a 34% free cash flow margin.

CrowdStrike Built an AI Defense Stack With OpenAI, Nvidia, and AWS Last quarter, CrowdStrike introduced and expanded products aimed at agentic and machine-generated threats. Falcon AIDR reached general availability, and CrowdStrike rolled out Agentic MDR, the Charlotte AI AgentWorks Ecosystem (built with AWS, NVIDIA, and OpenAI), and Falcon Data Security across endpoints, browsers, SaaS, cloud, and AI workflows. Project QuiltWorks pairs CrowdStrike with OpenAI and Anthropic to remediate frontier AI risk via the Falcon platform.

CrowdStrike’s customers are consolidating on their security tools. 51% of customers run 6 or more modules, 35% run 7 or more, and 25% run 8 or more. That density allows Kurtz to position CrowdStrike as an operating system for security rather than a single-point tool competing with AI-native newcomers.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.

CRWD stock currently trades at $187.34 and is up 63.11% year to date and 58.77% over the past year, but has slipped 9.29% in the last week as investors digest the stock’s valuation after the four-for-one stock split with split-adjusted trading that began on July 2. The stock trades at roughly 164 times forward earnings, with an average analyst target of $189.18 across 41 buy or strong-buy ratings out of 53 covering analysts.

Palo Alto Networks Fits the Same Thesis Palo Alto Networks (NASDAQ:PANW) CEO Nikesh Arora said last quarter that “the latest advancements at the AI frontier have increased the level of urgency around cybersecurity, and redefined the shape of the industry for the coming years.” Palo Alto’s Next-Generation Security ARR reached $8.10 billion in Q3 FY2026, up 60% year-over-year, on $3.00 billion in revenue, up 31.1%.

Analysts are raising their price targets. Argus Research lifted its PANW target from $320 to $425 on July 21, and Capital One tagged the stock Overweight with a $421 price target. Morgan Stanley placed both CrowdStrike and Palo Alto in its Moat & Journey framework of Overweight software picks alongside Microsoft (NASDAQ:MSFT), Cloudflare (NYSE:NET), and ServiceNow (NYSE:NOW)

What to Watch Next Cramer’s point echoes what Citi’s CIO Kate Moore recently argued: cybersecurity budgets remain underfunded relative to the surface area AI is creating. The Gartner Tokyo Security Summit on July 22 drew more than 840 CISOs, with agentic AI and machine identity dominating the agenda.

Investors should watch whether that demand translates into stronger annual recurring revenue, greater adoption of security modules, and higher customer spending in upcoming earnings reports.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Halliburton Company (NYSE:HAL) on Tuesday reported better-than-expected second-quarter 2026 results.

Adjusted EPS of 55 cents beat the 54-cent estimate. Revenue rose 3.7% year over year to $5.714 billion, topping the $5.486 billion estimate.

“I am pleased with Halliburton’s performance this quarter, and believe the global outlook for Halliburton is strong. I expect our differentiated technology and value proposition set the stage for revenue growth and margin expansion,” CEO Jeff Miller said.

Halliburton shares fell 1.3% to trade at $32.77 on Wednesday.

These analysts made changes to their price targets on Halliburton following earnings announcement.

Barclays analyst David Anderson maintained the stock with an Overweight rating and lowered the price target from $55 to $53. Evercore ISI Group analyst James West maintained the stock with an Outperform rating and lowered the price target from $46 to $43. Considering buying HAL stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

About five years ago, there was a mini gold rush in the electric vehicle (EV) industry. It was due to growing infrastructure support and a flood of public and private funding from investors hoping to get their hands on what might be the next Tesla.

This gold rush ended poorly for many involved: from the more well-known Fisker Automotive, which was supposed to rival Tesla, to the lesser-known companies such as Canoo and Lordstown Motors. Even more capable companies, such as Lucid Group (LCID -1.50%), will almost certainly face more funding questions and capital raises within 12 to 18 months.

Rivian Automotive (RIVN -1.80%), however, appears to be gaining real traction; here are three reasons to believe in it long-term.

Shareholder dilution While Lucid and Rivian are similar in many ways, one factor that has separated the two is shareholder dilution. Unlike Lucid, Rivian has been able to protect its shareholders from more severe shareholder dilution due to capital discipline and its strategic joint ventures, such as with Volkswagen.

It also helps to have a little luck on your side. Rivian executed one of the largest initial public offerings in U.S. history by raising roughly $13.7 billion in gross proceeds, which gave the young EV maker a long capital runway. In contrast, Lucid entered the public markets through a SPAC merger that had a lighter cash balance to help pave the way forward.

Another example of how the two differ is that Lucid has relied heavily on Saudi Arabia's Public Investment Fund (PIF), which now owns a controlling stake in the company. While Lucid has repeatedly issued new equity that dilutes existing shareholders, Rivian largely took a different route by leveraging its internal software and electrical stack to ink a $5.8 billion deal with Volkswagen that has helped generate non-dilutive licensing and convertible loans.

RIVN Shares Outstanding (Quarterly) data by YCharts

You can see in the graph above that Lucid was expanding its shares outstanding much more, until last year when the EV maker executed a 1-for-10 reverse stock split, which reduced its share count to proportionately increase its share price, enabling it to remain listed on the Nasdaq. That's not a great situation to be in. Make no mistake, when considering either of these EV stocks long-term, Rivian is certainly more enticing, even considering only its lesser shareholder dilution.

R2 is a crucial pivot To say that Rivian's R2 is a crucial pivot point for the business would be an understatement. The R2 marks Rivian's transition from luxury-niche EVs to mass-market production and scale. The young EV maker might not even get enough credit for the efforts it has taken to improve unit economics, which have helped power the company to its first full-year gross profit.

Rivian is taking what it's learned from that process and applying it to the R2. And it's expecting to reduce the manufacturing cost per vehicle by 50% compared to even previous improvements on the R1. Rivian's goal was to aim for nearly $7,500 in gross profit per vehicle; here are a couple of unique examples of how it can drive toward that target:

Battery and drive units: The new "Maximus" drive unit contains 41% to 43% fewer parts than the previous Enduro system. Electronics and harnessing: Rivian cut expensive high-voltage cabling down by a significant 70% and simplified its computing architecture by removing 2.3 miles of wiring, cutting down connectors by 60%, and reducing weight by 40 lbs. Rivian even adjusted the R2 to a unibody structure, which reduced costs by 44% and weight by 37% compared to the R1 body-on-frame style.

Image source: Rivian.

Combine those examples, and many more, with growing scale as the lower price tag enables a mainstream consumer to purchase the R2, and it should have investors feeling optimistic that Rivian can one day be a self-funding and profitable company. Though it still has a long way to go.

High-margin potential Circling back to Rivian's lucrative joint venture with Volkswagen, it's important for investors to understand the potential of this business. Typically, legacy global automakers like Volkswagen buy parts from suppliers and write their own coding, but the deal with Rivian implies that Volkswagen has admitted its deficiencies in doing so and essentially gave up on its in-house software division.

Volkswagen isn't just buying Rivian motors or interior infotainment screens, either; Rivian is essentially selling its German joint venture partner its vehicle nervous system, operating system, and zonal architecture. This has given Rivian the potential to transform from a pure hardware manufacturer into a business that includes high-margin software and intellectual property licenses.

Thanks in large part to Volkswagen's partnership, Rivian's software segment operates at roughly 37% gross margin, which has become a crucial way to offset early-stage scaling and expenses.

Today's Change

(

-1.80

%) $

-0.32

Current Price

$

17.44

What it all means Rivian still has a long road ahead to reward long-term shareholders, but these three reasons should give investors the belief that it can achieve that vision. Rivian has separated itself from rivals such as Lucid with capital discipline and the avoidance of severe shareholder dilution, tapped into high-margin software sales and cost-sharing with partnerships, and made significant progress on improving R2 unit economics ahead of the scale it hopes to soon build.

Rivian's road will still be tough, but it certainly has some unique attributes that separate it from many rivals.

Higher-for-Longer Rates Could Reward These 3 Overlooked StocksCME Group NASDAQ: CME reported record second-quarter revenue and near-record trading activity, while executives used much of the company’s second-quarter 2026 earnings call to address investor questions about perpetual futures and outline a slate of new product launches.

Chairman and CEO Terry Duffy said second-quarter average daily volume was 29.8 million contracts, the second-highest second quarter in the company’s history and within 1% of the record set a year earlier. He said May and June were particularly strong following a difficult April comparison. Open interest ended the quarter up 8% from a year earlier and 16% since the start of 2026.

Get CME Group alerts:

Gold, Silver, and Copper Are Surging—Here Are 3 Smart Ways to Play ItDuffy also said CME delivered record capital efficiencies, saving customers an average of more than $95 billion in margin per day. He said 94% of CME’s first-half volume came from institutional customers, a figure he used repeatedly to frame the company’s response to questions about perpetual futures.

Revenue Hits Second-Quarter Record Lynne said CME generated more than $1.7 billion in revenue during the second quarter, up 1% from the same period in 2025. She said that marked a second-quarter record and the company’s second-highest quarterly revenue total ever, behind the first quarter of 2026.

Capitalize on Volatility: 3 Finance Stocks Thriving in 2025The average rate per contract was $0.678, up $0.026 from the first quarter. Market data revenue rose 20% to $238 million, which Lynne said extended CME’s streak to 33 consecutive quarters of year-over-year market data revenue growth and marked the eighth straight quarter of record market data revenue.

Adjusted expenses were $521 million, or $412 million excluding license fees. Adjusted operating income totaled $1.2 billion, producing a 69.5% adjusted operating margin. Adjusted net income was $1.1 billion, and adjusted diluted earnings per share were $2.99, up 1% from the second quarter of 2025. Lynne said the adjusted net income margin was 63.4%.

CME returned $1.2 billion to shareholders in the quarter, including $468 million in regular quarterly dividends and $695 million through share repurchases.

For the first half of 2026, Lynne said volume was 10% ahead of the prior year, revenue increased 8% and adjusted diluted earnings per share rose 10%. She also said July volumes to date were tracking 18% ahead of the prior year.

Executives Push Back on Perpetual Futures Concerns Duffy said recent discussion of perpetual futures had overshadowed CME’s business performance. He argued that although the products are often described as futures, they function more like leveraged spot instruments and are not substitutes for the institutional hedging tools used by CME’s core customers.

“Perpetual futures are in no way substitutes for the institutional hedging tools that these customers rely on,” Duffy said. He said the products do not provide price or time certainty, which he called necessary components for hedging exposures.

Duffy said CME has the technical and operational capabilities to launch perpetual futures and has contract specifications ready if customer demand or market structure changes justify it. However, he said the company has not heard demand from its core customers. In response to a question from Jefferies analyst Dan Fannon, Duffy said he had spoken with senior executives and derivatives users at major institutional participants, including a large commercial energy firm, and was told they did not want CME to list the product.

Tim added that CME’s cryptocurrency business has continued to grow even as crypto perpetuals have existed outside the U.S. He said CME’s suite of cryptocurrency futures and options was up 44% in the first half of 2026 compared with the first half of 2025, and up 76% in June from a year earlier. He said CME was seeing between $4.5 billion and $6.5 billion per day in trading across its cryptocurrency complex, compared with about $270 million at a Bitcoin perpetual product introduced by Kalshi in July.

Duffy also raised concerns about whether perpetual products should be classified as swaps, citing the exchange of payments through funding rates. In response to Deutsche Bank analyst Brian Bedell, he said CME believes its litigation will show that such products are swaps, not futures.

New Products Include Crypto, Gold, Single Stock Futures and Compute Futures Duffy highlighted several product initiatives, including 24/7 trading for crypto futures, 24/7 trading for CME’s one-ounce gold contract, Single Stock futures, Treasury Link and Compute Futures.

He said Single Stock futures are scheduled to launch the following week and will simplify directional trading with capital efficiency. Duffy acknowledged that Single Stock futures had failed in an earlier market cycle but said timing is important and that current market conditions make the product more relevant.

Tim said CME’s equity complex has shown momentum, with second-quarter average daily volume of 8.6 million contracts, up 13% year over year. He said June equity volume was 10.1 million contracts, up 54% from a year earlier, while July volumes were running about 40% to 50% above July 2025. He also said the new Single Stock futures will be financially settled against the closing print of each stock.

Julie said retail brokers globally were “extremely excited” about the Single Stock futures launch and described the product as a significant retail growth catalyst. She said more than 35 retail partners were targeting readiness for day-one or week-one activity.

Duffy and Derek Sammann also discussed Compute Futures, which CME plans to launch in partnership with Silicon Data later in 2026. Sammann said the product will be a daily benchmark tracking the spot hourly rental cost of NVIDIA H100 GPUs. He said the contracts are intended to provide price discovery and risk-management tools for data centers, AI labs, cloud providers, asset managers, banks, energy firms, hedge funds and professional trading firms.

Market Data, Prediction Markets and Treasury Link On market data, Julie said CME’s second-quarter revenue benefited from pricing, professional subscriber growth, derived data revenue and growth in simulation trading device accounts. She said professional subscribers rose 3.5% quarter over quarter, while simulation trading device accounts were up 56% year over year. The quarter also included about $7 million in audits and catch-up payments for prior periods, compared with $3.8 million in the first quarter.

Asked about prediction markets, Lynne said CME has handled about 525 million event contracts since launch, including about 48 million contracts related to market events. She said more than 140,000 accounts traded event contracts during the quarter, up about 13% from the prior quarter, and average daily volume was above 4 million, up about 40% from the first quarter. Duffy said CME is being careful about its product set and repeated his view that some sports-related prediction markets resemble gambling.

At the end of the call, Duffy asked for additional commentary on Treasury Link, a planned fourth-quarter 2026 offering. Mike said Treasury Link will enable centralized spread trading between Treasury futures and BrokerTec cash Treasuries on CME Globex, using FX Link technology. He said the product is designed to connect two major U.S. Treasury liquidity pools and reduce execution lag risk in cash-futures spread transactions.

Duffy closed the call by emphasizing CME’s institutional base, capital efficiencies and product pipeline, saying the company remains focused on expanding its marketplace while maintaining protections and market integrity.

About CME Group (NASDAQ:CME)CME Group Inc is a global markets company that operates some of the world's largest and most liquid derivatives exchanges, including the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX) and COMEX. The firm offers futures and options contracts across a broad range of asset classes — including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals — and serves a diverse client base of institutional investors, commercial hedgers, brokers and retail participants.

The company's core services include electronic trading on the CME Globex platform, central clearing through CME Clearing, and distribution of market data, indexes and analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in CME Group Right Now?Before you consider CME Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CME Group wasn't on the list.

While CME Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.

Get This Free Report

OpenAI logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

CompaniesJuly 22 (Reuters) - Southern Company's (SO.N), opens new tab subsidiary said on Wednesday it has signed a 25-year power supply agreement with OpenAI ​for a new project in Effingham County, ‌Georgia.

AI's explosive growth is straining power grids, forcing utilities and tech giants to negotiate who bears the cost and ​risk as data centers balloon in ​size.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Here are the details:

OpenAI, which is expected ⁠to need about 3,200 megawatts (MW) of power for its new ​facility, has agreed to provide up to 1,000 ​MW to the Southern Co subsidiary Georgia Power's systems in times of high demand.

The deal will improve Georgia Power's system reliability, the ​unit said.

OpenAI will pay the full infrastructure ​and electric service costs to serve its facility and ‌will ⁠fulfill requirements for long-term energy contracts.

OpenAI also said it plans to establish a community investment fund worth $80 million to support local priorities identified by residents.

The ​ChatGPT maker ​will also provide up ⁠to $71 million in credits for its coding agent, Codex, for students attending colleges, universities ​and technical schools across Georgia.

The project ​is ⁠expected to create thousands of construction and permanent on-site jobs, generate hundreds of millions of dollars ⁠in ​state and local tax revenue, ​and prioritize local contractors and businesses, Georgia Power said.

Reporting by ​Dharna Bafna in Bengaluru; Editing by Leroy Leo

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

First BanCorp. NYSE: FBP reported higher second-quarter 2026 earnings and record pre-tax pre-provision income, with management citing stronger loan growth, expanding net interest income and stable credit trends across the franchise.

The Puerto Rico-based banking company earned $96.1 million, or $0.62 per diluted share, for the quarter, compared with $88 million, or $0.57 per share, in the prior quarter. President and Chief Executive Officer Aurelio Alemán said net income was up 24% from the same quarter last year.

Pre-tax pre-provision income reached an all-time high of $138 million, up 5% from the previous quarter and 11% from a year earlier. Return on average assets was 2.02%, compared with 1.89% in the first quarter. Alemán said it marked the company’s 18th consecutive quarter with ROA above 1.5%.

Get First BanCorp. alerts:

CFO Said Ortiz said quarterly results included approximately $3.4 million of additional interest income tied to two refinancings, one commercial loan and one municipal bond, which led to accelerated recognition of deferred fees or discounts. Excluding that impact, net income would have been about $93 million, or approximately $0.60 per diluted share.

Loan Growth Accelerates as Commercial Activity Strengthens Total loans reached $13.3 billion, up 5% on a linked-quarter annualized basis. Alemán said growth was driven primarily by commercial activity in Puerto Rico, while consumer portfolios showed better stability than expected.

Total loan originations were $1.7 billion during the quarter, a 21% increase from the prior year. Management said the pipeline supports continued activity through the remainder of 2026 and reaffirmed its full-year loan growth target of 3% to 5%.

During the question-and-answer session, Alemán said commercial originations reflected a mix of activity, including acquisitions, commercial real estate, construction, C&I, warehousing, hotels, healthcare and government-related refinancing. He also noted solid activity in Florida, including from the company’s Boca Raton office opened late last year.

Asked about business momentum in Puerto Rico, Alemán highlighted hospitality as a particularly strong sector, citing positive trends in average daily rates, occupancy and visitors, as well as ongoing hotel projects. He said investor confidence in the island remained strong despite broader political and macroeconomic uncertainty.

Net Interest Income Rises, Margin Guidance Moves Higher Net interest income increased 3.7% from the prior quarter to $229.1 million, compared with $221 million in the first quarter. Ortiz said the increase included the $3.4 million benefit from fee and discount acceleration. Excluding that impact, interest income on loans rose $1.7 million, while interest income on investments and cash increased $4.5 million.

The company continued to reinvest cash flows from maturing securities into higher-yielding instruments. Ortiz said the yield on the investment portfolio increased by 18 basis points, excluding the refinancing-related benefit.

Funding costs were managed lower overall, with total deposit costs declining by two basis points from the previous quarter. The cost of time deposits, excluding brokered deposits and public funds, decreased by eight basis points to 3.26%, while the cost of interest-bearing checking and savings accounts rose by five basis points to 1.26%, driven by higher rates on certain government accounts.

Ortiz said the company’s net interest margin, excluding the accelerated fee and discount recognition, would have been approximately 4.80%, up five basis points from the prior quarter. Management now expects margin expansion of three to five basis points per quarter for the rest of 2026, assuming no rate cuts in the second half of the year.

In response to an analyst question, Ortiz said approximately $400 million of securities are expected to reprice in the second half of 2026 at a current yield of about 1.92%, with about $1.2 billion of repricing expected over the next 18 months.

Deposits Increase, Expenses Stay Near Guidance Total deposits increased by $274 million during the quarter. Alemán said the increase was primarily driven by government deposits, with a slight rise in core customer deposits. He noted that government deposits can be volatile due to reconstruction-related funds moving in and out of accounts, but said liquidity remains solid.

Noninterest income was $35.7 million, down from $37.7 million in the prior quarter, mainly due to seasonal commissions typically received in the first quarter. Operating expenses were relatively flat at $127.3 million. Excluding gains from OREO operations, expenses were $128.2 million, which Ortiz said was at the lower end of guidance.

The efficiency ratio improved to 48.1% from 49.1% in the previous quarter. Management expects quarterly expenses for the remainder of 2026, excluding OREO gains or losses, to range from $128 million to $130 million, reflecting merit increases, business promotions and technology-related project expenses.

Alemán said the company continues to invest in technology, cloud transformation, artificial intelligence and branch expansion. He said AI efforts are focused on automating routine processes, improving customer service and shortening process life cycles.

Credit Trends Remain Stable Despite Higher Early Delinquencies Credit performance remained broadly sound, though early-stage delinquency rose during the quarter. Ortiz said early-stage delinquency increased by approximately $32.9 million from the prior quarter, mainly due to a $20.7 million increase in the auto finance leases portfolio. However, he said early delinquency in the consumer portfolio was still about $10.3 million lower than in December 2025.

Non-performing assets increased by $5.1 million from the previous quarter, primarily due to the inflow of a $14.8 million C&I loan in Florida. Ortiz said the loan is well collateralized. Excluding that relationship, non-performing assets declined by $9.7 million, with reductions in residential mortgages, consumer loans and repossessed autos.

The allowance for credit losses was $245 million, or 1.85% of total loans, relatively flat from the previous quarter. Ortiz said increases tied to loan growth and higher auto finance lease delinquencies were offset by improved macroeconomic projections and better delinquency in unsecured consumer loans.

Alemán said the increase in auto delinquencies appeared seasonal, following a first-quarter improvement attributed to consumer liquidity from tax refunds and other factors. He said delinquency levels were better than in December and in line with prior years.

Capital Remains Strong as Buybacks and Dividends Continue First BanCorp ended the quarter with a Common Equity Tier 1 ratio of 17%. The company completed $50 million of share repurchases and paid a $0.20 per-share dividend during the quarter, according to Alemán.

Ortiz said tangible book value per share rose to $12.68, while the tangible common equity ratio declined three basis points to 10.08% due mainly to growth in tangible assets. He said regulatory capital ratios remained well above required levels, with earnings offsetting capital deployment and risk-weighted asset growth.

Asked about potential M&A, Alemán said the company remains open to opportunities that would be a strategic fit and align with its operating model, but emphasized that organic growth remains the primary focus. He said management continues to evaluate capital deployment options and will provide more detail when it updates its capital plan later in the year.

About First BanCorp. (NYSE:FBP)First BanCorp NYSE: FBP is a financial holding company headquartered in San Juan, Puerto Rico. Through its principal banking subsidiary, FirstBank Puerto Rico, the company offers a comprehensive range of banking services including commercial and consumer lending, deposit products, cash management solutions and treasury services. It also provides mortgage origination and servicing, equipment leasing, investment management, and insurance agency services.

In its commercial banking segment, First BanCorp serves small and midsize enterprises as well as large corporate clients, delivering tailored credit facilities, letters of credit, and foreign trade financing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in First BanCorp. Right Now?Before you consider First BanCorp., you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and First BanCorp. wasn't on the list.

While First BanCorp. currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

Key Takeaways Vicor posted $143.4M in Q2 revenues and $1.04 EPS as Advanced Products sales jumped 45% sequentially.VICR expects nearly 10% Q3 revenue growth and more than $600M in 2026 revenues from Advanced Products gains.Vicor targets $2.5B in revenues and says a second fab is needed to support long-term capacity expansion. Vicor Corporation (VICR - Free Report) used its second-quarter 2026 earnings call to press a bigger message than the quarter’s headline beat. Management framed 2026 as the year its advanced power products and IP licensing model are gaining broader industry traction, particularly in AI infrastructure.

That framing mattered because executives paired stronger near-term revenue expectations with a more ambitious long-term capacity and margin story. The call also gave investors a clearer look at how licensing, second-generation vertical power delivery and a second chip fab fit together.

Vicor Leans on Licensing and Advanced ProductsThe company posted second-quarter revenues of $143.4 million, representing a 26.9% sequential gain and beating the Zacks Consensus Estimate of $138.7 million. Earnings per share (EPS) came in at $1.04, comfortably surpassing the Zacks Consensus Estimate of $0.62.

Advanced Products’ revenues climbed 45% from the first quarter to $94.2 million, lifting that business to 65.7% of total revenues. Brick Products’ revenues increased 2.4% sequentially to $49.2 million.

Chief financial officer James Schmidt highlighted a key licensing contribution. Royalty income from the most recent agreement added $15 million in second-quarter revenues, though he said accounting treatment will make that contribution uneven, with $5 million expected in the third quarter and $10 million per quarter for the following four quarters.

VICR Raises the Stakes in AI Power DeliveryGlobal sales and marketing head Philip Davies said Vicor’s updated long-term targets now call for $2.5 billion in revenues, 70% gross margin and 40% operating income, replacing the company’s earlier $1 billion revenues and 65% gross margin goals. He tied that shift to a two-pronged strategy built on power modules and IP licensing.

Davies put the heaviest emphasis on second-generation vertical power delivery, or VPD, for AI data centers. He said hyperscalers and OEMs need higher current gain and current density, and argued Vicor’s second-generation offering is ahead of current first-generation alternatives.

Chief executive officer Patrizio Vinciarelli reinforced that point in the Q&A. He said the company has completed development around a 3 amps-per-square-millimeter baseline for its lead customer and is working toward more than 4 amps per square millimeter late this year or early next year.

Vicor Points to a Stronger 2026 SetupSchmidt said book-to-bill was above 1 in the second quarter, while one-year backlog rose 26% sequentially to $379.7 million. The press release put the year-over-year backlog increase at 145%, showing how quickly demand has built.

Management used that demand picture to raise the near-term bar. Schmidt said Vicor expects nearly 10% sequential revenue growth in the third quarter and more than $600 million in 2026 revenues, supported by double-digit sequential increases in Advanced Products revenues.

Vinciarelli told analysts the 2026 uplift reflects both product revenue growth and new licensing deals. He added that the initial license signed in the second quarter does not include a sourcing relationship for the first couple of years, though that is expected to become part of the relationship alongside second-generation VPD capabilities.

VICR Ties Capacity Expansion to StrategyManagement also made clear that capacity is becoming a strategic constraint. Vinciarelli said the first chip fab is moving closer to full utilization, which is why the company is now working to secure a second facility. He told analysts VICR has several site options and expects to make decisions in the coming weeks.

Later in the call, Vinciarelli said the second fab will be necessary to support the path to $2.5 billion in revenues. He added that the selected site could support a facility two to three times the size of the first fab, though build-out would happen in stages. That response gave investors a more practical framework for how Vicor plans to scale without overbuilding too early.

Vicor Faces Margin and Timing QuestionsA Craig-Hallum analyst pressed management on product gross margin, noting that royalty revenues flattered the consolidated result. Schmidt responded that product margin should improve as utilization and cost absorption rise. He also said second-quarter product gross margin was weighed down by factory reconfiguration costs tied to moving equipment and preparing space for new tools. Those costs ran through cost of sales rather than being capitalized.

Q&A also sharpened the timetable around second-generation VPD. Davies said management expects engagement with a hyperscaler and a couple of OEMs through the rest of 2026, with those programs moving toward production systems in the late third quarter or the fourth quarter of 2027.

VICR Leaves the Call With a Bigger AgendaThe clearest takeaway from management’s tone was that Vicor no longer wants investors to view the story as a niche power-module supplier with episodic upside. Executives repeatedly linked licensing, AI power architecture and fab expansion into one broader growth framework.

At the same time, management stayed measured on customer-specific disclosures and exact design-win timing. That kept the call grounded in what the company says it can control now: adding capacity, expanding Advanced Products revenues and widening industry adoption of its IP.

Vicor’s Zacks SignalsVicor currently carries a Zacks Rank #2 (Buy), which points to favorable earnings estimate revision trends and generally signals stronger near-term performance potential than lower-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are more mixed. The stock has a Value Score of F, Growth Score of D and VGM Score of F, but a Momentum Score of A. That combination points to stronger momentum characteristics than value or growth appeal, while also underscoring that the Zacks Rank can change as estimate revisions adjust after the quarter’s results.

Key Takeaways SRPT dropped nearly 10% as Dyne Therapeutics advanced a rival exon 51 skipping DMD therapy toward approval.Sarepta faces added pressure after Elevidys' label restrictions and growing competition in DMD treatments.SRPT trades below the industry P/B average, while 2026 and 2027 EPS estimates have declined. Shares of Sarepta Therapeutics (SRPT - Free Report) fell nearly 10% over the past week. This decline likely reflects growing investor concerns about the company’s position in the Duchenne muscular dystrophy (DMD) landscape following a key regulatory milestone for rival Dyne Therapeutics (DYN - Free Report) .

On Monday, DYN announced that the FDA accepted its regulatory filing seeking approval for the DMD therapy zeleciment rostudirsen (z-rostudirsen, or DYNE-251). The application was granted priority review, with the agency expected to make a final decision by Jan. 21, 2027. If approved, the Dyne Therapeutics drug could emerge as a competitive threat to Sarepta’s Exondys 51, as both therapies target DMD patients amenable to exon 51 skipping.

Exondys 51, approved in 2016, was the first FDA-approved treatment for DMD patients amenable to exon 51 skipping and remains the standard of care for this patient population. However, z-rostudirsen could challenge its market position if approved. Unlike Sarepta’s drug, which requires once-weekly infusions, Dyne’s drug is administered once every four weeks, potentially offering greater convenience for patients and caregivers. Analysts also point to cross-study comparisons suggesting that z-rostudirsen achieved higher dystrophin expression than Exondys 51, further strengthening its competitive profile.

The latest development comes as Sarepta shares were beginning to stabilize following a steep selloff triggered by safety concerns surrounding the company's DMD gene therapy, Elevidys. Investor sentiment deteriorated after two patient deaths following treatment with Elevidys prompted the FDA to significantly restrict the therapy's label to ambulatory DMD patients and add a boxed warning for acute liver injury. With Elevidys representing a key growth driver for Sarepta, the regulatory setback had already raised concerns about the company's growth outlook. Against this backdrop, Dyne's regulatory progress has added to investor concerns about Sarepta's competitive position in DMD.

Growing Competition in the DMD SpaceApart from Dyne Therapeutics, Sarepta faces competition from several other emerging players. These include Regenxbio (RGNX - Free Report) , Wave Life Sciences (WVE - Free Report) and Solid Biosciences, which are developing next-generation RNA or gene therapy approaches for the treatment of DMD.

SRPT’s Price Performance, Valuation & EstimatesShares of Sarepta have underperformed the industry year to date, as seen in the chart below.

Image Source: Zacks Investment Research

From a valuation standpoint, Sarepta is at a discount to the industry. Based on the price/book (P/B) ratio, the company’s shares currently trade at 1.14 times trailing book value, lower than the industry’s average of 3.44.

Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for 2026 EPS has declined from $4.84 to $4.77, while that for 2027 has fallen from $3.02 to $2.90.

Image Source: Zacks Investment Research

Sarepta currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Prosperity Bancshares (PB - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis financial holding company is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +8.5%.

Revenues are expected to be $376.11 million, up 21.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.53% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Prosperity Bancshares?For Prosperity Bancshares, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.76%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Prosperity Bancshares will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Prosperity Bancshares would post earnings of $1.41 per share when it actually produced earnings of $1.50, delivering a surprise of +6.38%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Prosperity Bancshares appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.