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PagSeguro Digital NYSE: PAGS, which operates as PagBank, reported higher first-quarter earnings per share and continued expansion in its banking and credit operations, while management said elevated Brazilian interest rates continued to pressure financial costs and gross profit.

On the company’s first-quarter 2026 earnings call, Principal Executive Officer Ricardo Dutra said PagBank made “continued progress” executing its strategy, with banking and credit acceleration and operating leverage contributing to earnings growth despite a challenging macroeconomic backdrop.

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Total Payment Volume reached BRL 128 billion in the quarter, flat year over year. Dutra said the result confirmed a gradual reacceleration compared with prior quarters. The company’s expanded credit portfolio reached BRL 51 billion, up 11% from a year earlier, while total loans grew 36% year over year. Deposits rose 23% to BRL 42 billion.

Net revenue excluding interchange fees was BRL 3.3 billion, up 6.4% year over year, driven mainly by credit acceleration and banking performance. Recurring non-GAAP net income reached BRL 575 million, up 4%. Dutra said the result was affected by higher financial expenses tied to Brazil’s base interest rate, partially offset by operating leverage. Diluted non-GAAP EPS increased 12% year over year, helped by capital optimization initiatives.

Banking and Credit Remain Key Growth Areas CEO Carlos Mauad said PagBank’s integrated payments, banking and credit platform serves individuals and micro, small and medium-sized businesses. He said the company sees significant room to grow in several banking segments where its market share is currently below 1%.

Mauad highlighted increased customer engagement across PagBank’s ecosystem. Cash-in volumes, excluding acquiring-related inflows, reached BRL 81 billion, up 11% year over year, while cash-in active clients grew 12%. He attributed the performance to stronger usage of the platform, including bill payments, Pix transactions and increased penetration of investment and insurance products.

PagBank’s total credit portfolio reached BRL 5 billion at the end of the quarter, growing 36% year over year. Mauad said credit growth was broad-based across products and channels, with working capital loans leading the expansion. Working capital grew 191% year over year and represented 10% of the total portfolio.

Management said asset quality remained controlled. Mauad noted that nonperforming loan indicators were well below the Brazilian banking system average, while later in the call he said PagBank’s NPLs were “almost half of the industry.” He said the company is gradually shifting from a mostly secured credit portfolio toward a more balanced mix as it expands underwriting for unsecured products.

Funding Costs Decline as Deposits Grow Mauad said deposits reached BRL 42 billion, with more than 90% sourced from PagBank’s own platform. Including other funding sources such as related-party deposits and borrowings, total funding was nearly BRL 47 billion, up 15% year over year.

The company’s deposit annual percentage yield fell for the eighth straight quarter, reaching 83.9% of CDI in the first quarter. Mauad said average remuneration on demand deposits was 38.6% of CDI, down 10 percentage points year over year. The loan-to-funding ratio improved to 109% from 114% a year earlier.

In response to analyst questions, CFO Gustavo Sechin said PagBank has implemented disciplined repricing and reductions in remuneration on certificates of deposit and checking accounts to mitigate higher financial costs. He said the company is still identifying additional opportunities to address funding cost pressures, while Mauad said some changes made near the end of the first quarter should continue to affect results going forward.

Financial Costs Weigh on Gross Profit Sechin said total revenue and income excluding interchange fees grew 6.4% to BRL 3.3 billion, driven primarily by banking and credit expansion. Banking revenue increased 41% year over year, supported by credit growth and higher transactionality from clients. Gross profit totaled BRL 1.9 billion, up nearly 1% year over year, with banking representing about 31% of total gross profit.

However, Sechin said the company continued to face pressure from rising financial costs due to Brazil’s higher benchmark interest rate. He said the Selic rate was up 1.9 percentage points over the period, although the effect was partially mitigated by lower deposit APY. Sequentially, financial costs declined 2.6%.

Total losses, including acquiring chargebacks and expected credit loss provisions, rose 29% year over year, mainly reflecting credit portfolio expansion and mix changes. On the acquiring side, chargebacks fell 15% year over year, which Sechin attributed to improved fraud prevention.

Sechin pointed to operating leverage as a key highlight, saying operating expenses declined as a percentage of revenue by about 230 basis points year over year. He cited cost discipline and the use of artificial intelligence in areas such as client service. During the Q&A session, he said the company is “just in the beginning” of opportunities to generate further operating leverage.

Shareholder Returns and Capital Optimization Dutra said PagBank returned approximately BRL 2.4 billion to shareholders over the last 12 months through dividends and share buybacks, representing a total yield of around 16% over that period. Sechin said the company is working to bring its Basel index to between 18% and 22% in coming years.

PagBank’s managerial Basel ratio stood at 24.1%, down more than four percentage points from the prior quarter. Sechin said the level still provides ample capacity to support credit expansion and shareholder returns.

The company plans to distribute an additional BRL 400 million in dividends in June, equivalent to $0.26 per common share, in line with its commitment to distribute at least BRL 1.4 billion in dividends this year.

Management Reaffirms 2026 Guidance Sechin said PagBank ended the first quarter above its expected range for credit portfolio growth and expects consistent growth through the year. He said gross profit expansion was limited in the first quarter due to Selic-related financial cost pressure, but management expects those headwinds to fade in the second quarter and beyond.

In response to UBS analyst Kaio Da Prato, Mauad said TPV trends have improved from a 5% year-over-year decline in the third quarter of last year to a roughly 2% decline in the fourth quarter and flat growth in the first quarter. He said management expects TPV to turn positive in the second quarter and accelerate in the second half.

Asked about competition, Mauad said the small and midsize business landscape has been broadly stable over the past 24 months, naming PagBank, Stone, Mercado Pago and CloudWalk as key players in that segment. He said competitors posting 20% to 25% TPV growth are often serving different customer clusters, including enterprise clients and “serial acquirers.”

Mauad also said PagBank expects credit growth to accelerate in 2027, citing the current macro environment and the fact that some products are still in pilot or development. He identified payroll loans for private-company employees as one area with potential, while noting the company remains cautious on unsecured lending.

“We are confident to achieve our 2026 guidance,” Mauad said, adding that PagBank remains focused on operational excellence, disciplined expansion and consistent value creation as it works toward its 2029 targets.

About PagSeguro Digital NYSE: PAGSPagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company's product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.

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 PagSeguro Digital Right Now?Before you consider PagSeguro Digital, you'll want to hear this.

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As the artificial intelligence (AI) space continues to evolve rapidly, some investors are looking for better opportunities than Nvidia (NVDA 3.39%) and Broadcom (AVGO 4.86%). Those megacap AI chipmakers developed some of the foundational hardware upon which AI software depends, and their data center sales have already been hugely beneficial to their bottom lines, and to their shareholders. 

However, the AI processing platforms they make include a bunch of smaller components, many of which they acquire from other tech specialists.

For instance, you will find multiple memory chips in every single AI chip. Most investors were still ignoring this opportunity a couple of years ago, but recognition of it has gone mainstream. And as demand for high-end memory has surged well past manufacturers' ability to supply, earnings for leaders in the space, such as Sandisk (SNDK 0.04%), have surged. That memory stock has gained roughly 4,000% in a single year. If you had put $25,000 into Sandisk one year ago, you would have a position worth just over $1 million today.

AI processing chip companies are still solid picks for your portfolio, but with memory chipmakers reporting higher one-year gains, it's natural for investors to consider putting some money into some of them, too. 

Image source: Getty Images.

A sharp upsurge in memory demand The opportunity in AI chipmakers is well documented at this point. Nvidia was the first big name to capitalize on the AI trend due to its powerful graphics processing units (GPUs), which can handle all sorts of parallel-processing workloads. Then, Broadcom gained attention for its application-specific integrated circuits (ASICs). The company works directly with individual hyperscaler customers to design custom chips that are optimized for the precise types of workloads they will encounter, so they can handle those AI workloads more efficiently and cheaply than Nvidia's general-purpose processors.

Nvidia and Broadcom are now both multitrillion-dollar companies. So some investors looking for growth stocks have gravitated toward "smaller" AI chipmakers like AMD and Marvell Technology, but AMD looks poised to become a trillion-dollar company within the next one to two years.

For awhile, investors didn't have much incentive to look closely at memory stocks. Micron (MU 3.81%) only produced a 14% return from 2021 to 2024, and that total return came with significant volatility. Memory specialist Western Digital (WDC 5.17%) -- which until 2025 owned what is now Sandisk, and is now focused on hard drives -- didn't even muster a 10% return over those four years.

But with demand for memory companies' wares surging, investors are now paying attention. Micron and Western Digital have both more than doubled year to date, suddenly casting a bright spotlight on memory stocks. Sandisk, the biggest winner of 2026, is up by more than 400% year to date.

Naturally, most of the attention is going toward big winners like Micron and Sandisk. Fewer people are looking at the underlying technology -- NAND, DRAM, and HBM -- and searching for smaller companies that are also involved with that technology.

For instance, consider a company like Silicon Motion Technology (SIMO 3.11%), which produces NAND flash controller chips, a crucial part of the memory trade. It doubled its sales year over year in the first quarter, reached a net profit margin of almost 20%, and still has a market cap under $10 billion. Management's guidance points toward meaningful growth in future quarters. Good luck finding a small AI chipmaker with numbers like those that investors haven't already steeply bid up in price.

Memory chipmakers are exhibiting the same growth that AI chipmakers did a few years ago It's not an exaggeration to say the digital memory segment offers a second chance for investors who missed out on the rise of AI chip stocks. Nvidia and Micron are the leaders of their respective industries.

Nvidia's earnings still show strong growth, while Micron's parabolic growth resembles what Nvidia was doing a few years ago.

Let's start with Nvidia, which delivered 73% year-over-year revenue growth in the 2026 fourth quarter (which ended on Jan. 25, 2026). It also produced 20% sequential sales growth, and management offered bullish views about its backlog.

In its report for its fiscal 2026 second quarter (which ended Feb. 26), the outlook Micron provided also offered a bullish view of its future earnings. And its growth rates are blowing Nvidia's away. Sales almost tripled year over year, and net income surged by 771%. Micron also delivered 75% sequential revenue growth.

Such comparisons apply across the board in the memory niche. Sandisk is growing much faster than Broadcom, and you can say the same thing about Western Digital versus AMD.

For Nvidia, we have to go back to its fiscal 2024 (which ended on Jan. 28, 2024) to find a time when the company more than doubled its revenues annually. In that fiscal year's Q4, it generated 265% year-over-year top-line growth in a single quarter. Nvidia was trading at roughly $60 back then, on a split-adjusted basis, and has almost quadrupled since then.

Given the momentum in the memory sector, the strong guidance that these companies are offering,  and the way memory stocks are mirroring what AI chipmakers did a few years ago, it looks like they are still in the early innings of their AI-driven uptrend.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Silicon Motion (SIMO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Silicon Motion currently has an average brokerage recommendation (ABR) of 1.09, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.09 approximates between Strong Buy and Buy.

Of the 11 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 90.9% and 9.1% of all recommendations.

Brokerage Recommendation Trends for SIMO

Check price target & stock forecast for Silicon Motion here>>>

The ABR suggests buying Silicon Motion, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in SIMO?Looking at the earnings estimate revisions for Silicon Motion, the Zacks Consensus Estimate for the current year has increased 46.7% over the past month to $8.37.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Silicon Motion. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Silicon Motion may serve as a useful guide for investors.

Silicon Motion (SIMO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this chip company have returned +86.1% over the past month versus the Zacks S&P 500 composite's +5.6% change. The Zacks Computer - Integrated Systems industry, to which Silicon Motion belongs, has gained 46.4% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Silicon Motion is expected to post earnings of $1.98 per share, indicating a change of +187% from the year-ago quarter. The Zacks Consensus Estimate has changed +64.3% over the last 30 days.

The consensus earnings estimate of $8.37 for the current fiscal year indicates a year-over-year change of +135.8%. This estimate has changed +46.7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.45 indicates a change of +24.8% from what Silicon Motion is expected to report a year ago. Over the past month, the estimate has changed +33.5%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Silicon Motion.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Silicon Motion, the consensus sales estimate for the current quarter of $401.53 million indicates a year-over-year change of +102.1%. For the current and next fiscal years, $1.56 billion and $1.84 billion estimates indicate +76.3% and +17.5% changes, respectively.

Last Reported Results and Surprise HistorySilicon Motion reported revenues of $342.11 million in the last reported quarter, representing a year-over-year change of +105.5%. EPS of $1.58 for the same period compares with $0.6 a year ago.

Compared to the Zacks Consensus Estimate of $299.49 million, the reported revenues represent a surprise of +14.23%. The EPS surprise was +20.61%.

Over the last four quarters, Silicon Motion surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Silicon Motion is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Silicon Motion. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

TAIPEI, Taiwan & MILPITAS, Calif.--(BUSINESS WIRE)---- $SIMO #ADAS--Silicon Motion Technology Corporation (NasdaqGS: SIMO) ("Silicon Motion"), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced that it has successfully achieved ISO 26262 functional safety process certification for automotive applications. ISO 26262 is the international standard for functional safety in road vehicles, establishing rigorous requirements for the development and valid.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Silicon Motion (SIMO - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Silicon Motion currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if SIMO is a promising momentum pick, let's examine some Momentum Style elements to see if this chip company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For SIMO, shares are up 2.52% over the past week while the Zacks Computer - Integrated Systems industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 85.57% compares favorably with the industry's 5.3% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Silicon Motion have risen 101.03%, and are up 304.96% in the last year. In comparison, the S&P 500 has only moved 8.01% and 28.78%, respectively.

Investors should also pay attention to SIMO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. SIMO is currently averaging 1,378,541 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with SIMO.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SIMO's consensus estimate, increasing from $5.79 to $8.37 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that SIMO is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Silicon Motion on your short list.

Many big tech stocks have performed well this year, with Microsoft (MSFT 1.29%) and Meta Platforms (META 2.17%) being the only "Magnificent Seven" stocks down during the past year. Those seven stocks heavily influence the Nasdaq Composite, but finding under-the-radar tech stocks can produce much higher returns.

The three stocks on this list aren't brand names, and most investors aren't paying much attention to them. However, these same growth stocks have outperformed the Nasdaq Composite this year and look poised to continue that trend.

Image source: Getty Images.

1. Iren Iren (IREN 4.63%) is a neocloud provider that produces artificial intelligence (AI) data centers for hyperscalers. Tech companies need AI data centers and energy to scale their AI ambitions, and IREN checks off both boxes. That value proposition helped Iren land a five-year deal with Microsoft for $9.7 billion in exchange for 200 megawatts of capacity.

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Investors had to wait a few months for another deal, but people accumulated Iren shares shortly after the company announced a deal with Nvidia (NVDA 3.39%) for $3.4 billion over five years. This deal includes access to 60 megawatts. Iren recently bought software company Mirantis to help with the deal. This software acquisition should attract more customers and help Iren secure higher margins in the long run.

Megawatts are the name of the game, and since Iren has a 5-gigawatt pipeline, it can generate substantial annual recurring revenue once its sites are energized and ready for business. The company anticipates $3.7 billion in contracted annual recurring revenue by the end of the year, showing that some of the momentum is taking place right now.

Iren recently penetrated European markets with a new AI data center and has also set its sights on the Asia-Pacific (APAC) region.

2. MaxLinear MaxLinear (MXL 0.91%) provides optical interconnect solutions for AI infrastructure. The company's technology helps AI chips communicate with each other and move data seamlessly. It's a better solution than traditional copper wires, which are limited in how much data they can transfer. Data transfer speed is also enhanced with optical interconnects over copper wires.

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This technological advantage is fueling growth for MaxLinear. Its first-quarter results hint at the arrival of sequential growth that helped Micron (MU 3.81%) and Sandisk (SNDK 0.04%) trounce the stock market. I saw this pattern in Silicon Motion Technology (SIMO 3.11%) before it reported Q1 earnings. That stock has tripled year to date.

MaxLinear is exhibiting the same patterns. Although the company's 43% year-over-year revenue growth in Q1 was impressive, that wasn't the most important number. Its infrastructure segment, which is mostly optical interconnects, surged 35% sequentially and jumped 136% year over year.

MaxLinear Chief Executive Officer Kishore Seendripu viewed these results as "the start of a multi-year growth phase" and said that infrastructure has become its "largest end market." He wrapped up his commentary by saying that MaxLinear is positioned for profitability in 2026 and beyond.

That's the same type of language I have heard from multiple AI companies before their shares took off a few months later, including Silicon Motion Technology. MaxLinear's Q2 guidance even offers optimism in this regard, with revenue projected to be $165 million at the midpoint. That's 20% sequential growth if MaxLinear sees its projection through.

MaxLinear is just starting to deliver high sequential growth and it's a key part of the opening the AI bottleneck. It would not shock me if the company exceeds the high end of its forecast in Q2.

3. Innodata Innodata (INOD +1.13%) is a data engineering company that collects and organizes all the data used to train AI models. ChatGPT was the first mainstream AI model in 2022, but several hyperscalers have since released their own AI models.

Innodata works with multiple big tech companies and announced in its Q1 earnings press release that it had secured a new deal with another tech giant. Although the customer wasn't indentified, Innodata said that it could generate as much as $51 million in revenue this year, compared with no revenue from this same customer just one year ago.

That addition is a big deal since Innodata earned $90.1 million in Q1, which was up by 54% year over year. If you spread the $51 million contract over four quarters, it comes to $12.75 million per quarter. Innodata used this contract and its existing customer relationships to raise its forecast. The company now expects 40% revenue growth in 2026.

Innodata's growth is accelerating while diversifying its customer base. The company's CEO, Jack Abuhoff, hinted at this in the Q1 press release.

"For full year 2026, we expect our largest customer to represent a smaller percentage of total revenue even though we expect our absolute dollar revenue with that customer to increase. In Q1, revenue from our other Big Tech customers, in the aggregate, grew 453% year-over-year," Abuhoff said.

TAIPEI, Taiwan--(BUSINESS WIRE)-- #EdgeAI--Silicon Motion Technology Corporation (NasdaqGS: SIMO), a global leader in NAND flash controllers for solid-state storage devices, today announced the SM2524XT, a next-generation PCIe Gen5 DRAMless SSD controller purpose-built for AI inference and KV Cache-intensive workloads. The SM2524XT leverages a new four-processor-core architecture with PCIe Gen5 x4 and NAND interface speeds up to 4,800 MT/s to achieve sequential read speeds up to 14 GB/s and industry-lead.

Silicon Motion (SIMO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this chip company have returned +29.1% over the past month versus the Zacks S&P 500 composite's +6% change. The Zacks Computer - Integrated Systems industry, to which Silicon Motion belongs, has gained 60.3% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Silicon Motion is expected to post earnings of $1.98 per share, indicating a change of +187% from the year-ago quarter. The Zacks Consensus Estimate has changed +66.7% over the last 30 days.

The consensus earnings estimate of $8.37 for the current fiscal year indicates a year-over-year change of +135.8%. This estimate has changed +44.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.45 indicates a change of +24.8% from what Silicon Motion is expected to report a year ago. Over the past month, the estimate has changed +33.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Silicon Motion is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Silicon Motion, the consensus sales estimate of $401.53 million for the current quarter points to a year-over-year change of +102.1%. The $1.56 billion and $1.84 billion estimates for the current and next fiscal years indicate changes of +76.3% and +17.5%, respectively.

Last Reported Results and Surprise HistorySilicon Motion reported revenues of $342.11 million in the last reported quarter, representing a year-over-year change of +105.5%. EPS of $1.58 for the same period compares with $0.6 a year ago.

Compared to the Zacks Consensus Estimate of $299.49 million, the reported revenues represent a surprise of +14.23%. The EPS surprise was +20.61%.

Over the last four quarters, Silicon Motion surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Silicon Motion is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Silicon Motion. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

On June 01, 2026, Silicon Motion Technology Corp SIMO shares fell 3.2% to a current price of $268.05. The stock has shown remarkable performance over the past year, with a staggering increase of 346.0%. However, it has also fluctuated significantly within the past 52 weeks, reaching a high of $294.99 and a low of $60.80.

GF Value™ verdict: Current price is $268.05 vs GF Value™ of $110.44, indicating shares are 142.7% overvalued.GF Score™ of 77/100 suggests the stock is above average in quality.Notable signal: Insiders sold $0.4M in shares over the last three months, indicating potential caution among company executives. Is SIMO Overvalued or Undervalued? Silicon Motion Technology Corp's current price of $268.05 contrasts sharply with its GF Value™ estimate of $110.44, indicating that the stock is significantly overvalued by 142.7%. This valuation places SIMO in a precarious position, suggesting that there may be limited upside for investors looking for price appreciation based on fundamental value. The GF Valuation label categorizes the stock as significantly overvalued, which indicates potential risks for investors considering entry at current levels.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With the current price far exceeding the calculated fair value, the margin of safety for investors appears minimal. This raises concerns about the sustainability of the stock's recent price levels, especially given the current market volatility.

How Does SIMO's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)53.3x22.1x (5-Year Median) Forward P/E30.8xN/A The current P/E ratio of 53.3x is substantially above its 5-year median of 22.1x, representing a 141% increase. Furthermore, the forward P/E of 30.8x suggests that even anticipated future earnings would still keep the stock in a premium valuation territory. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that SIMO is overvalued relative to its historical valuation metrics.

What Does SIMO's GF Score™ Tell Us? MetricRating GF Score™77 Financial Strength10/10 Profitability8/10 Growth8/10 Valuation1/10 Momentum6/10 The GF Score™ of 77/100 indicates that Silicon Motion Technology Corp is above average in overall quality. The strongest areas are its Financial Strength, rated 10/10, and Profitability and Growth, both rated 8/10, suggesting a robust financial position and solid earnings potential. However, the Valuation rank of 1/10 signals significant concern regarding its current market price in relation to intrinsic value, indicating that the stock may not provide favorable returns at its present valuation.

What Are Insiders Doing with SIMO Stock? In the past three months, insiders have sold $0.4 million worth of shares, with no reported purchases. This selling activity may suggest a cautious outlook among company executives regarding the stock's future performance. Generally, insider selling can be perceived as a negative signal, as it may indicate a lack of confidence in the company’s current valuation or future growth prospects.

What This Means for Investors Based on the analysis of GF Value™, Silicon Motion Technology Corp is currently overvalued. The significant disparity between the current price and the GF Value™ estimate indicates potential risks for investors considering entry at this level.

For the complete analysis, visit the Silicon Motion Technology Corp SIMO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SIMO's GF Score™?

SIMO has a GF Score™ of 77/100, indicating that it is above average in quality based on key financial metrics.

Is SIMO overvalued or undervalued?

SIMO is currently overvalued, with shares trading at 142.7% above the GF Value™ estimate of $110.44.

What is SIMO's P/E ratio?

SIMO's current P/E (TTM) is 53.3x, which is significantly above its 5-year median of 22.1x, confirming its overvaluation status.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways SIMO is gaining share in NAND controllers, with mass production of PCIe NVMe client SSD chips.SIMO rolled out PCIe Gen5 SM2508 on TSMC 6nm, targeting lower power and better efficiency.SIMO targets AI PCs, smartphones and automotive storage; 2026 EPS estimate rose to $8.37. Silicon Motion Technology Corporation (SIMO - Free Report) has emerged as one of the strongest beneficiaries of secular growth trends across the NAND flash storage market. The company continues to expand organically through market-share gains, new product launches and increasing exposure to high-growth end markets such as AI PCs, smartphones, automotive storage and enterprise data centers.

The company is a leading merchant supplier of client SSD (solid state drive) controllers to module makers, including most market leaders in the United States, Taiwan and China. Silicon Motion believes that it is well-equipped to adapt to industry changes with healthy collaborations with flash vendors for developing proprietary controller technology to overcome the existing weakness of 3D NAND and outshine peers. The company has commenced initial sales of 3D SSD controllers to flash partners. It expects this controller to be a significant driver of SSD controller growth over the next year, as NAND Flash partners’ 3D capacity expands.

SIMO Buoyed by Portfolio StrengthThe company has commenced mass production of PCIe NVMe client SSD controllers for flash partners. Accelerated product sales, along with favorable industry trends, portray bright prospects for Silicon Motion. The company has rolled out the world's first PCIe Gen5 client SSD controller, SM2508, leveraging TSMC's 6nm EUV process. This cutting-edge controller is capable of achieving 50% lower power consumption compared to 12nm counterparts, offering up to 1.7x better power efficiency than PCIe Gen4 SSDs.

Silicon Motion has expanded its SSD controller program engagements with PC OEMs and eMMC/UFS controllers for smartphones, automotive applications and IoT/smart devices. The company is adding to this momentum with the upcoming launch of its next-generation enterprise-class SSD controllers. Silicon Motion’s eMMC is showing strong signals of rebound, thereby adding to the strength of its overall embedded storage market that comprises both SSD controllers and eMMC embedded memory. As market trends suggest the balance is tilting from transitioning of eMMC 4.5 toward that of eMMC 5.0, the company foresees lucrative prospects for eMMC 5.1 controller sales.

SIMO’s Key Growth DriversSilicon Motion operates a fabless business model, focusing on chip design while outsourcing manufacturing to foundries like TSMC. Consequently, the company has a low capital investment requirement as it does not require expensive fabrication plants, enabling it to adopt advanced manufacturing nodes quickly, leading to higher margins compared to integrated manufacturers. This enables the company to focus on innovation and product development rather than manufacturing complexity.

The key growth drivers for SIMO include AI and high-performance computing, cloud data centers, automotive storage, smartphones and mobile devices. Each of these end markets is growing fast and offers lucrative growth potential. We believe an expanding customer base and innovative products will act as tailwinds for the company’s top-line growth, going forward. Over the past 10 years, Silicon Motion has shipped more than 5 billion controllers cumulatively – more than any other company in the world. Silicon Motion ships more than 750 million NAND controllers on average every year.

Image Source: Zacks Investment Research

Price PerformanceThe stock has gained a stellar 231% over the past six months compared with the industry’s growth of 139%. It has also outperformed peers like Advanced Micro Devices, Inc. (AMD - Free Report) and International Business Machines Corporation (IBM - Free Report) . Advanced Micro has gained 141.5% and IBM is up 6.9% over this period. 

Six-Month Price Performance of SIMO 

Image Source: Zacks Investment Research

Estimate Revision TrendEarnings estimates for Silicon Motion for 2026 have moved up 83.6% to $8.37 over the past year, while the same for 2027 has increased 97.2% to $10.45. The positive estimate revision depicts optimism about the stock’s growth potential.

Image Source: Zacks Investment Research

End NoteWith solid fundamentals and healthy revenue-generating potential, driven by robust demand trends, Silicon Motion appears to be a solid investment proposition. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. An asset-light fabless semiconductor model, solid growth exposure to AI, cloud and automotive markets, with increasing market share in SSD and mobile controllers and continuous innovation in storage technologies are key growth drivers for the company.

The stock has a long-term earnings growth expectation of 53.6% and delivered a trailing four-quarter average earnings surprise of 18.6%. Silicon Motion sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Riding on a robust earnings surprise history and favorable Zacks Rank, Silicon Motion appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.

Shift4’s Explosive Growth Comes With High-Stakes RiskFiserv NASDAQ: FISV executives used the company’s 2026 Investor Day to outline a medium-term plan aimed at restoring what CEO Mike Lyons described as Fiserv’s historical identity as a “constant compounder,” while acknowledging recent service, product delivery and client retention challenges.

Lyons said the company completed a comprehensive review last fall that identified “real issues” in client service, product delivery, technology resilience and capital allocation, but also confirmed that “the underlying strength of our franchise was intact.” The company’s response is the “One Fiserv” action plan, which Lyons said is anchored in five pillars: client focus, Clover growth, product delivery and innovation, AI-driven transformation through Project Elevate, and disciplined capital allocation.

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The Quiet Infrastructure Play on Small-Bank SurvivalLyons said Fiserv is tracking to its financial expectations and expects the current quarter to mark “the trough in revenue growth,” with revenue growth accelerating into the mid-single digits over the plan period. He said the company continues to benefit from its role as “intelligent technology infrastructure” for financial institutions and merchants, processing nearly 1 billion transactions per day for clients.

Medium-Term Targets Emphasize Revenue Growth, Margins and Cash Flow CFO Paul Todd said Fiserv reaffirmed its full-year 2026 guidance, calling the year a transition period. He said the company expects adjusted revenue to decline in the low single digits in the first half of 2026, followed by 6% to 8% year-over-year growth in the second half, supporting full-year adjusted revenue growth of 1% to 3%.

3 Different Fintech Giants: Turnaround, Stability, or Risky Bet?For the 2026 through 2029 period, Todd laid out a financial framework that includes:

Compounded adjusted revenue growth of 4% to 6% from a 2026 base. Adjusted operating margin above 37% by 2029. More than $13.5 billion of free cash flow from 2027 through 2029. Adjusted earnings per share of more than $12 in 2029. Free cash flow conversion of approximately 90% of adjusted net income. Todd said baseline operating leverage should contribute roughly 150 basis points of adjusted operating margin expansion over three years, while Project Elevate is expected to add more than 200 basis points by 2029 through net cost reductions of $500 million. He said Fiserv expects to use the majority of excess cash for share repurchases while reducing gross leverage toward the low end of its 2.5 times to 3 times target range.

Clover Remains Central to Merchant Growth Plan Takis Georgakopoulos, co-president responsible for Merchant Solutions, said the merchant business processed $4.6 trillion of transactions in 2025 and supports 3.9 million small businesses, including 900,000 Clover merchants. He said Fiserv has been consolidating its merchant infrastructure around Commerce Hub, a cloud-native platform that is live with $200 billion in gross payment volume across 40 markets.

Georgakopoulos said Clover generated $3.3 billion in 2025 revenue across Fiserv’s SMB, processing and enterprise segments. He described the company’s goal as making Clover “the true operating system for small businesses,” supported by hardware updates, vertical software, horizontal value-added services, international expansion and efforts to convert non-Clover SMB clients.

Fiserv expects Clover gross payment volume growth to rise above 10% and reach the upper end of a 10% to 15% medium-term range, Georgakopoulos said. Clover revenue is expected to grow 15% to 20% annually, helped by value-added services, Clover Capital, Clover Savings and conversion of non-Clover clients. Merchant Solutions overall is expected to grow 6% to 8% over the medium term, with enterprise in the mid-single digits and processing roughly flat.

Georgakopoulos also highlighted AI adoption inside the merchant organization, saying 40% of engineers use AI daily and 25% of code is written by AI, with a goal of moving both figures close to 100% by year-end. He said AI is helping Fiserv modernize services, improve speed to market and build products tied to agentic commerce.

Financial Solutions Focuses on Stabilization and Modernization Dhivya Suryadevara, co-president responsible for Financial Solutions, said the segment serves more than 6,000 clients globally across banking, digital payments and issuing. She said the banking business has faced “service and delivery issues,” adding, “We have a service problem, not a technology problem, and it’s very much solvable.”

Suryadevara said Fiserv has committed to no forced core migrations and is moving toward modular, core-agnostic capabilities that clients can adopt on their own timelines. Banking delivers $2.4 billion in revenue and serves more than 3,500 financial institutions, according to Suryadevara, who said Fiserv is number one in U.S. core and digital banking.

In digital payments, Suryadevara said Fiserv generated nearly $4 billion in 2025 revenue and supports payment platforms, consumer payment rails and value-added services. She said 41 of the top 50 U.S. banks use Fiserv’s consumer payment solutions. In issuing, she said the company generated more than $3.3 billion in 2025 revenue and serves 25 of the top 50 U.S. credit issuers and 80% of U.S. private-label issuers.

Financial Solutions is expected to grow adjusted revenue at a 2% to 4% medium-term compound annual rate, Suryadevara said, with banking at or slightly below the low end of the range and payments and issuing toward the higher end.

AI, Embedded Finance and Stablecoin Highlighted as New Growth Areas Executives repeatedly pointed to AI as both a cost-efficiency tool and a product opportunity. Lyons said Fiserv announced a strategic collaboration with OpenAI and is using AI to improve authorization rates, fraud prevention, service, testing and product delivery.

Suryadevara introduced agentOS, a platform in beta that allows financial institutions to deploy AI agents across systems of record with banking-grade controls. She said early pilots include commercial loan onboarding with First Interstate Bank and reporting automation with Boulder Dam Credit Union.

Fiserv also highlighted opportunities at the intersection of Merchant Solutions and Financial Solutions, including embedded finance, a two-sided liquidity network, on-us transactions and data products. Georgakopoulos said Fiserv’s bank- and merchant-friendly stablecoin, FYUSD, is expected to go live this summer and will support use cases such as real-time settlement, cross-border remittances, B2B payouts and programmable money.

As part of its capital allocation review, Fiserv announced plans to sell a majority stake in its ATM servicing and related businesses to Bridgepoint Group for approximately $300 million in after-tax proceeds, while retaining a 49% equity stake in a new joint venture. Todd said the business has an annual revenue run rate of about $200 million, with a flat revenue trajectory and margins similar to Fiserv overall.

About Fiserv NASDAQ: FISVFiserv, Inc, founded in 1984 and headquartered in Brookfield, Wisconsin, is a global provider of financial services technology. The company develops and delivers integrated solutions for payments, processing, risk and compliance, customer and channel management, and business insights and optimization. Serving thousands of clients, Fiserv supports banks, credit unions, securities broker-dealers, leasing and finance companies, and retailers.

Fiserv’s core offerings include account processing systems that automate deposit, lending and transaction processing for financial institutions, as well as digital banking platforms that enable mobile and online banking services.

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

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Global payments and financial services technology provider Fiserv is spinning off its cash-handling operations into a newly formed joint venture with specialist private equity firm Bridgeport Partners.

The transaction will specifically encompass Fiserv’s ATM Managed Services, Cash & Logistics and MoneyPass business lines, according to a Wednesday (May 13) press release. Under the terms of the agreement, which remains subject to customary closing conditions and regulatory approvals, Bridgeport Partners is slated to take over operational control and direct the day-to-day management of these divisions upon closing.

The maneuver aims to pair Fiserv’s client relationships and foundational industry technology with Bridgeport’s track record of scaling financial technology and payments-adjacent platforms, the release said. Bridgeport’s principals bring more than four decades of experience in the banking and payments sector, focusing heavily on “operational excellence” and product innovation within established financial markets.

Moving forward, the two companies will establish a formal governance structure to align on client outcomes and long-term value creation, according to the release. The targeted businesses will remain fully under Fiserv’s operational umbrella until the deal is finalized.

“Fiserv has built strong, durable businesses serving financial institutions, merchants and consumers across the ATM and cash ecosystem,” Fiserv CEo Mike Lyons said in the release. “This agreement reflects our One Fiserv approach, delivering positive client experiences, aligning each business with the operating model and investment best suited to drive growth and client outcomes.”

The move to offload day-to-day management of its ATM and cash logistics divisions follows a challenging financial quarter for Fiserv, which is framing 2026 as a necessary transition period. The payments processor disclosed during an earnings report May 5 that adjusted revenue for the first quarter decreased 2.4% year over year to $4.68 billion, while organic revenue fell by 4%. The company’s financial solutions segment experienced a 6% decline during the quarter.

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During an accompanying earnings call, Lyons pointed to “higher-than-normal” attrition within the core banking segment as a primary hurdle, attributing the client departures to historical customer service issues that the company is working to address.

To stabilize the business and execute its internal One Fiserv strategic plan, the company has recruited external senior executives and is aggressively deploying artificial intelligence to mitigate its banking segment attrition, a strategy that has already reduced the resolution time for client inquiries by 27% compared to the prior year.

By transferring the operational burden of its legacy ATM and cash divisions to Bridgeport Partners, Fiserv seeks to reshape its portfolio to focus resources on resolving its core banking vulnerabilities and expanding high-growth products like its Clover point-of-sale platform.

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Fiserv, Inc. (FISV) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Block’s Pivot to Profits and AI Is Turning HeadsFiserv NASDAQ: FISV Chief Executive Officer Mike Lyons said the payments and financial technology company is focused on returning to a “constant compounder” profile by sharpening its business mix, improving execution and investing around two major markets: banking and commerce.

Speaking with J.P. Morgan Managing Director and Senior Analyst Tien-Tsin Huang at the firm’s conference, Lyons said Fiserv benefits from providing “mission-critical services” to large markets undergoing structural change, including digital payments, embedded finance, real-time money movement and AI-enabled services.

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Shift4’s Explosive Growth Comes With High-Stakes RiskLyons said the company’s financial model is supported by highly recurring revenue, positive operating leverage, strong free cash flow conversion and a capital allocation approach that remains centered on share repurchases while staying within a 2.5x to 3x leverage range.

He also pointed to recent portfolio actions as examples of Fiserv’s effort to sharpen capital intensity. The company discussed an ATM joint venture with Bridgeport at its Investor Day and sold its education business, a student loan processing operation, which Lyons described as a good business but not strategic to Fiserv’s broader direction.

Fiserv Reaffirms Outlook, Expects Second-Half Acceleration The Quiet Infrastructure Play on Small-Bank SurvivalLyons said the company’s current-year guidance was maintained and acknowledged that it implies faster growth in the second half. He said Fiserv was down “a little” in the first quarter and expected the second quarter to be slightly worse, resulting in a first half down low single digits.

He outlined three drivers of expected second-half improvement: signed contracts coming online, planned activity ramps from existing enterprise clients and product ramps across Clover Capital, Clover Savings, Clover international, XD and CashFlow Central.

Lyons said those factors support a second-half growth range of 6% to 8% and a full-year range of 1% to 3%. He added that excluding approximately two points from new client contract ramps, the second-half rate aligns with the company’s 4% to 6% forward plan.

On the macro environment, Lyons said banks remain in good shape, with sound credit and a focus on improving technology capabilities. On the consumer side, he described the environment as “cautiously optimistic,” noting that consumers are employed and still spending, though Fiserv’s Small Business Index showed spending shifting toward fuel while some discretionary categories declined year over year. Clover data for April remained consistent with the first quarter, with growth of 12% excluding the gateway, he said.

Financial Segment Focuses on Service, Attrition and Product Delivery Lyons said Fiserv’s financial services segment is expected to grow 2% to 4%, with banking at the lower end and issuing and payments at the higher end. He said customer service concerns have been concentrated in the banking segment and centered on three issues: day-to-day service, delayed product delivery and the prior decision to reduce the number of cores from 16 to five.

Fiserv has rebuilt its day-to-day service approach, added resources and re-engaged the consultant community, Lyons said. He also cited the acquisition of Smith Consulting as part of an effort to provide more value-added services to clients.

On product delivery, Lyons said Fiserv has hit every major milestone since its Forum event in September. XD and CashFlow Central are in implementation mode, core enhancements are being completed and Core Advanced remains on time, he said.

Lyons also said Fiserv has stopped forced conversions and is now emphasizing a “journey approach” to core conversions, using a more modular strategy to help clients modernize over time.

Gross attrition in the financial services business has roughly doubled, creating a 75 to 100 basis point headwind, Lyons said. He said Fiserv expects attrition to return to more normalized levels by the end of its medium-term plan in 2029, supported by better service, product delivery and offerings such as StoneCastle, agentOS and data center modernization.

Clover Growth Plan Includes Value-Added Services and International Expansion Lyons said Clover’s 10% to 15% gross payment volume growth framework is built around a 10% organic growth base, with the potential to reach 15% if Fiserv succeeds in converting non-Clover customers to Clover or adding Clover value-added services to those customers.

He said Clover has consistently grown in the 8% to 12% range in recent years and identified several drivers to sustain growth, including horizontal and vertical value-added services, healthcare through PracticePay, professional services, restaurant offerings, international expansion and distribution through ISOs, ISVs, banks and a direct sales force.

Lyons said international markets now account for more than 20% of Clover volume, with Japan expected to come online later this year and into 2027. He also said the company sees room to improve customer retention and the back-end experience.

For non-Clover merchant customers, Lyons said the business has been stable for a long time. He said those customers are generally satisfied Fiserv clients, and the company will take a targeted approach to offering services such as Clover Savings and Clover Capital without forcing major hardware or platform changes.

Merchant Platform, STAR and Business Synergies Lyons said Fiserv is building a unified gateway across enterprise clients, platform clients and Clover. Commerce Hub is live with $200 billion in volume across 40 countries, he said. He also highlighted Fiserv’s enterprise point-of-sale position, Finxact ledger capabilities, backend processing scale and data assets as advantages in competing across e-commerce and omnichannel payments.

Asked about STAR, Lyons described Fiserv’s debit networks, STAR and Accel, as a strong example of synergy between the merchant and financial services businesses. He said the combined networks represent the third-largest player and allow Fiserv to serve issuers while also routing transactions through its acquiring capabilities.

Lyons said STAR has “strategic optionality,” including potential relevance for on-us settlement, global opportunities and future payments use cases tied to demand deposit accounts and merchants.

Lyons also defended keeping Fiserv’s merchant and financial services businesses together following a strategic review. He cited existing synergies in bank distribution of Clover, acquiring networks, biller products and fraud data, as well as future opportunities in stablecoin, embedded finance and on-us settlement.

AI Push Centers on Agent OS Lyons said Fiserv has received strong feedback on agentOS, which he described as an operating system for banks. He said banks want to use AI but face challenges because they operate in highly regulated environments involving compliant and personally identifiable information.

He said agentOS is intended to bridge the needs of banks and AI providers by allowing agents to be deployed in a safer, more controlled way. Lyons said Fiserv sees potential for agentOS to create value for customers and open addressable markets that previously were not on the company’s radar.

About Fiserv NASDAQ: FISVFiserv, Inc, founded in 1984 and headquartered in Brookfield, Wisconsin, is a global provider of financial services technology. The company develops and delivers integrated solutions for payments, processing, risk and compliance, customer and channel management, and business insights and optimization. Serving thousands of clients, Fiserv supports banks, credit unions, securities broker-dealers, leasing and finance companies, and retailers.

Fiserv’s core offerings include account processing systems that automate deposit, lending and transaction processing for financial institutions, as well as digital banking platforms that enable mobile and online banking services.

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 Fiserv Right Now?Before you consider Fiserv, you'll want to hear this.

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NEW YORK and SAN FRANCISCO, May 28, 2026 (GLOBE NEWSWIRE) -- Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial technology, and Cognition, the AI agent lab, today announced a strategic partnership to deploy Cognition’s AI software engineer, Devin, to accelerate the modernization of core banking technology and shorten the time it takes for new capabilities to reach Fiserv financial institution clients. By shortening release cycles and strengthening platform performance, the partnership supports Fiserv’s ability to deliver innovation at speed, while maintaining stability, security, and resilience.

Modernization is among the most significant and historically slowest initiatives in financial services. Devin is uniquely suited to accelerate this work, operating at scale across complex codebases. Fiserv plans to deploy Devin across core platform modernization and other strategic engineering initiatives — executing complex engineering work in parallel and accelerating the pace at which Fiserv ships new capabilities to clients. As part of the deployment, Fiserv is also strengthening governance and security controls for AI-assisted development to help protect the integrity of the software lifecycle. 

This partnership builds on Fiserv's broader commitment to embed AI across its technology operations and product development in ways that translate into tangible client value. Devin's ability to take on end-to-end engineering tasks including understanding codebases, writing, and testing code, and iterating autonomously, extends engineering capacity so teams can focus on delivering high-quality improvements that matter most to clients, from shipping enhancements, strengthening quality checks, to improving platform resilience.

The collaboration reflects Fiserv's strategy to bring AI into every part of how it serves financial institutions — from the technology and engineering that power Fiserv platforms, to the operations that support them.

"Speed matters more than ever in banking, and our clients are counting on us to deliver. With Devin, we can accelerate modernization of the platforms our clients run their business on, ship new capabilities faster, and free our teams to focus on the work that matters most," said Dhivya Suryadevara, Co-President of Fiserv.

"Fiserv is exactly the kind of organization where Devin creates compounding value — massive scale and an engineering organization that has ambitious goals for what it needs to build and maintain," said Russell Kaplan, Co-Founder and President, Cognition. "We are proud to partner with Fiserv to help teams deliver measurable improvements, so clients see faster access to new capabilities, more consistent releases, and continued focus on quality and security."

Fiserv is among a growing number of financial services organizations deploying Devin to accelerate product delivery, modernize platforms, expand automated testing, and strengthen governance for AI-assisted development ensuring innovation reaches clients faster and more reliably.

About Cognition
Cognition is the leading AI software engineering company and makers of Devin, the world's first AI software engineer. Devin works end-to-end on complex engineering tasks — planning, coding, testing, and iterating autonomously — enabling teams to scale their engineering capacity without scaling headcount. Cognition is partnered with leading enterprises across financial services, technology, and beyond. Learn more at cognition.ai.

About Fiserv
Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, is a global leader uniting commerce and finance. At the intersection of banking and commerce, the company powers sustained growth and innovation at scale for financial institutions and businesses worldwide across payments, account processing, digital banking, merchant acquiring, network services, e-commerce, and Clover®, the all-in-one business management platform. Fiserv is a member of the S&P 500® Index and one of FORTUNE® America’s Most Innovative Companies. Visit fiserv.com and follow on social media for more information and the latest company news. 

For more information contact:

Media Relations:
Chase Wallace
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Fiserv, Inc. (FISV) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

Banks spent years treating core modernization as a lengthy infrastructure project. Dhivya Suryadevara believes artificial intelligence may alter that timetable.

In a conversation with PYMNTS CEO Karen Webster, the Fiserv co-president described AI as a practical tool for rewriting operational workflows, simplifying implementations and modernizing aging banking systems without forcing financial institutions into wholesale platform replacements.

Suryadevara joined Fiserv after senior leadership roles at Stripe, General Motors and UnitedHealth Group. She said the scale of Fiserv’s banking and payments franchise, combined with its access to data and distribution, made the company well positioned for the AI age.

“What struck me right away is just the sheer scale that Fiserv has on the banking side, as well as the merchant side,” Suryadevara said.

The discussion centered on what Suryadevara called the company’s “stabilize, attach and grow” strategy, a framework she said applies primarily to the banking segment of the business. The stabilization effort focuses on servicing, operational resiliency and execution after periods of disruption tied to client support and technology incidents.

Fiserv has committed more than $150 million toward service improvements and technology resiliency initiatives spanning 2025 and 2026.

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The broader objective is modernization without forcing banks into abrupt platform overhauls. Suryadevara said banks increasingly want the ability to modernize individual systems, such as teller functions or digital capabilities, while remaining on existing cores.

That philosophy also extends into payments and issuer processing, two businesses she described as among Fiserv’s strongest franchises. The payments unit includes debit processing, Zelle and account-to-account payment capabilities, while the issuer business remains anchored in credit card processing.

AI now sits at the center of that modernization effort.

Suryadevara said the technology is helping accelerate work that previously consumed years, particularly in areas such as legacy code conversion, implementations and servicing operations. She pointed to advances in rewriting COBOL-based systems and simplifying implementation processes that historically required large amounts of manual work.

“It’s about rewriting entire workflows for the AI era,” she said.

Rather than applying AI incrementally to existing processes, Suryadevara argued banks should reconsider whether entire steps can be removed altogether. She described implementations as one example where AI can materially reduce operational friction and shorten conversion timelines.

The conversation also explored agent-based banking systems, including Fiserv’s Agent OS initiative. Suryadevara described the platform as a governed operating layer that allows banks to deploy AI agents while maintaining policy controls, auditability and regulatory oversight.

The system is designed to support three categories of agents: Fiserv-developed agents, bank-developed agents and third-party agents delivered through a marketplace model.

Those agents are aimed at operational workflows tied to areas such as compliance, fraud management, reporting and deposit servicing. Suryadevara said banks are increasingly interested in using AI to automate repetitive operational work while preserving governance controls required in regulated industries.

The push arrives as banks face mounting pressure to modernize infrastructure while preserving existing customer relationships and operational continuity. Earlier PYMNTS coverage of Fiserv’s issuer business framed that transition as a shift away from treating processing as invisible back-office plumbing and toward viewing it as a strategic layer tied to data, credentials and decisioning.

Suryadevara suggested AI may further raise the stakes because banks increasingly need systems capable of supporting real-time data access, automated workflows and emerging payment models.

“There’s such an opportunity to deploy AI and simplify workflows at scale, but also in a very responsible, compliant way,” she said.

Additional Takeaways

Fiserv notes that banks increasingly want open API ecosystems that allow them to integrate FinTech partners and third-party services without losing control of core infrastructure. Suryadevara said AI is already being used inside servicing operations to resolve client tickets before they reach human agents. The company sees agent marketplaces as a future business opportunity because banks may increasingly purchase workflow-specific AI tools through governed platforms. Dhivya Suryadevara is co-president at Fiserv, where she oversees the company’s financial solutions business.

PYMNTS CEO Karen Webster is one of the world’s leading experts in payments innovation and the digital economy, advising multinational companies and sitting on boards of emerging AI, healthtech and real-time payments firms, including a non-executive director on the Sezzle board, a publicly traded BNPL provider. She founded PYMNTS.com in 2009, a top media platform covering innovation in payments, commerce and the digital economy. Webster is also the author of the NEXT newsletter and a co-founder of Market Platform Dynamics, specializing in driving and monetizing innovation across industries.

Fiserv, Inc. (FISV) Presents at 2026 Baird Global Consumer, Technology & Services Conference Transcript

A month has gone by since the last earnings report for Fiserv (FISV - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fiserv due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Fiserv, Inc. before we dive into how investors and analysts have reacted as of late.

Fiserv Beats Q1 Earnings EstimatesFiserv has reported mixed first-quarter 2026 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the same.

FISV’s adjusted earnings of $1.79 per share beat the Zacks Consensus Estimate of $1.57 by 14% but declined 16.4% from the year-ago quarter.

Revenue performance was softer. Adjusted revenues were $4.68 billion, missing the consensus mark of $4.76 billion by 1.7% and decreasing 8.9% year over year. Still, Fiserv pointed to stable underlying account and volume trends, with Clover's annualized gross payment volume (GPV) of $324 billion and 12% growth excluding the previously disclosed gateway conversion.

FISV's Revenue Pressure Tied to Prior-Year ComparablesFiserv’s reported GAAP revenues were $5.03 billion, down 2% from the prior-year period. A key mechanical driver behind the gap between GAAP and adjusted revenues remained postage reimbursements, which reduced revenues by $352 million in the quarter.

On an organic basis, revenues declined 4% year over year. Management noted that year-over-year revenue growth was impacted by prior-period comparables, while describing the broader operating environment as stable across both Merchant Solutions and Financial Solutions.

Fiserv's Merchant Business Holds Ground, Clover Adds MomentumMerchant Solutions revenues were essentially flat year over year at $2.37 billion. Within the segment, Small Business revenues rose 1% to $1.61 billion and Enterprise revenues increased 2% to $512 million, while Processing revenues declined 9% to $252 million.

Clover remained a notable bright spot in activity metrics. The company reported annualized first-quarter Clover GPV of $324 billion, with overall GPV up 12%, excluding the gateway conversion (9% as reported). Value-added services (VAS) penetration was 27% and VAS revenues increased 18%. Management also cited 7% Small Business volume growth and 8% Enterprise transaction growth during the quarter, with April Clover volume trends consistent with first-quarter levels.

Softness in FISV Financial Solutions’ Weighs on Organic ResultsFinancial Solutions revenues fell 5% year over year to $2.30 billion. The pressure was broad-based. Digital Payments revenues decreased 5% to $947 million, Issuing revenues dropped 5% to $769 million and Banking revenues declined 4% to $586 million.

Operational indicators were steadier than revenue trends implied, suggesting a mix-and-timing headwind rather than a sharp deterioration in usage. Fiserv cited low-single-digit growth in debit processing transactions and global accounts on file in Issuing. Zelle transactions grew at a high-teen rate, while Finxact reported more than 70% growth in accounts and positions. CashFlow Central also continued to scale, with 19 wins in the quarter for a total of 174 since launch and 11 live clients.

Fiserv's Margin Compression Reflects Expense Mix & ProgramsProfitability stepped down meaningfully from the prior year. The GAAP operating margin was 18.3% versus 27.2% in the first quarter of 2025, reflecting a higher expense base even as revenues dipped. The segment-level GAAP operating margin also declined to 26.4% in Merchant Solutions from 34.2% a year ago and to 38.1% in Financial Solutions from 47.5%.

On an adjusted basis, the operating margin was 29.7% compared with 37.8% in the year-ago quarter. The quarter included costs tied to the company’s One Fiserv transformation program, severance, merger and integration activity, and acquisition-related intangible amortization, while benefiting from a net gain on the sale of assets tied to a sale-leaseback of certain facilities.

FISV's Cash Flow & Buybacks Stay ActiveFiserv generated $599 million in net cash from operating activities, down from $648 million in the prior-year quarter. The free cash flow was $259 million versus $371 million a year ago, reflecting lower operating cash generation and higher capital investment.

Capital expenditure totaled $458 million in the quarter, which management characterized as in line with expectations. The company also remained in repurchase mode, buying back 3.3 million shares for $200 million during the quarter. In the earnings presentation, management described the balance sheet as strong, with leverage tracking to plan.

Fiserv's 2026 Guidance Unchanged, With EPS Boost From TaxesFiserv reaffirmed its 2026 outlook, expecting organic revenue growth of 1-3% and adjusted earnings per share of $8.00-$8.30. The company also reiterated expectations for an adjusted operating margin of about 34% and a free cash flow conversion of roughly 90% of adjusted net income.

A notable feature of the quarter was a tax-driven lift to profitability. The first quarter included a net $254-million income tax benefit related to the release of various foreign valuation allowances, partially offset by $74 million of other discrete tax items, contributing to a lower effective tax rate.

In the earnings presentation, Fiserv quantified the discrete tax impact as a 17-cent benefit to adjusted earnings per share versus results calculated at the midpoint of its anticipated adjusted annual effective tax rate range.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, Fiserv has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Fiserv has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

March 18, 2026 07:00 ET  | Source: Harrow, Inc.

NASHVILLE, Tenn., March 18, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced that three scientific abstracts highlighting its commercial products VEVYE® (cyclosporine ophthalmic solution) 0.1% and ILEVRO® (nepafenac ophthalmic suspension) 0.3% have been accepted for presentation at the American Society of Cataract and Refractive Surgery (ASCRS) 2026 Annual Meeting, taking place April 10–13 at the Walter E. Washington Convention Center in Washington, D.C.

The accepted research underscores Harrow’s continued commitment to advancing evidence-based treatment options for ophthalmic diseases, including dry eye disease and post-cataract surgery complications.

The abstracts will be presented in the following scientific sessions:

Ocular Surface Disease
Date: Saturday¸ April 11, 2026
Time: 8:00 AM – 9:30 AM

VEVYE: Real-World Treatment Patterns and Clinical Outcomes with Cyclosporine 0.1% in Semifluorinated Alkane for Dry Eye Disease Presenter: A. Epitropoulos, MD VEVYE: Dual-Function Cyclosporine 0.1% in Perfluorobutylpentane as an Alternative to Corticosteroids in Post-Fungal Keratoplasty Presenter: T. Shoshany, MD Medications (Preoperative, Postoperative, Intraoperative)
Date: Sunday, April 12, 2026
Time: 8:00 AM – 9:30 AM

ILEVRO: Post-Hoc Analysis of the Effect of Nepafenac 0.3% on Reducing Clinically Significant Visual Acuity Loss Associated with Cataract Surgery in subjects with Macular Edema Presenter: I. Mac, MD The ASCRS Annual Meeting is one of the world’s premier gatherings for ophthalmic surgeons and ophthalmic professionals, showcasing the latest clinical research, surgical techniques, and therapeutic innovations in ophthalmology.

Additional details regarding the abstracts and supporting data will be available at the time of presentation.

About Harrow

Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward-looking statements.” Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general, including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing facility in New Jersey; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.

Contacts:
Mike Biega
Vice President of Investor Relations and Communications
[email protected]
617-913-8890

Opaleye Management Inc, a 10% Owner of Harrow (HROW +7.29%), reported the indirect sale of 198,572 shares of common stock in multiple open-market transactions on March 3 and March 4, 2026, for a total value of approximately $7.8 million, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold (indirect)198,572Transaction value$7.8 millionPost-transaction shares (indirect)3.7 millionPost-transaction value (indirect ownership)$125.1 millionTransaction value based on SEC Form 4 weighted average prices ($39.15 on March 3; $39.67 on March 4); post-transaction value based on March 4, 2026 market close ($34.00).

Key questionsWas the transaction executed via direct or indirect ownership, and what entities were involved? All shares were disposed of indirectly through Opaleye, L.P. and a separately managed account, with Opaleye Management Inc. acting as investment manager and portfolio manager, respectively. No direct share transactions occurred.Does Opaleye Management Inc. retain a material position in Harrow following this transaction? Yes. Following the sale, Opaleye L.P. holds 3,622,000 shares and the managed account holds 59,428 shares, for a combined indirect position of approximately 3.68 million shares.Company overviewMetricValueMarket capitalization$1.3 billionRevenue (TTM)$272.3 millionNet income (TTM)-$5.1 million1-year price change*19.7%*1-year price change calculated as of March 23, 2026.

Company snapshotHarrow is a leading ophthalmic pharmaceutical company focused on the discovery, development, and commercialization of eye-care products for the North American market. Its portfolio of branded products includes VEVYE for dry eye disease, IHEEZO for ocular anesthesia, and TRIESENCE for ocular inflammation, as well as ImprimisRx, its ophthalmology-focused compounded medications division.

The company generates revenue through the sale of branded and specialty ophthalmic drugs and compounded pharmaceutical products. Primary customers include ophthalmologists, outpatient surgical centers, hospitals, and specialty healthcare providers. Harrow reported full-year 2025 revenue of $272.3 million -- a 36% increase over 2024 -- and guided 2026 revenue to a range of $350-$365 million.

What this transaction means for investorsOn its face, a sale of nearly $8 million worth of stock sounds like a significant vote of no-confidence -- but the context here is more nuanced.

The timing is worth noting. Harrow reported Q4 2025 earnings on March 2 -- the day before Opaleye began selling. The company missed analyst EPS estimates by a wide margin, and the stock dropped sharply. Selling into that kind of post-earnings weakness looks more like opportunistic profit-taking after a strong prior run than a fundamental change in outlook.

More importantly, the sale needs to be weighed against what Opaleye still holds. The fund retains approximately 3.7 million shares across Opaleye L.P. and its managed account -- a position that, based on Harrow's diluted share count as of Q4 2025, still represents close to 10% of the company. That’s a substantial retained stake by any measure, and it is consistent with Opaleye's long-standing role as one of Harrow's most prominent institutional backers.

Opaleye Management is a Boston-based hedge fund focuses on small- and mid-cap healthcare companies. Funds like this sell for a wide variety of reasons -- portfolio rebalancing, redemption pressure, or simply locking in gains after a strong run. The 198,572 shares sold here represent roughly 5% of Opaleye's total pre-sale HROW position, which is a meaningful trim but far from an exit. Opaleye’s substantial remaining position suggests this is far more likely a tactical adjustment than a strategic retreat.

Posted by Defense World Staff on Apr 8th, 2026

JPMorgan Chase & Co. lowered its position in Harrow, Inc. (NASDAQ:HROW – Free Report) by 53.9% during the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 36,167 shares of the company’s stock after selling 42,246 shares during the quarter. JPMorgan Chase & Co. owned about 0.10% of Harrow worth $1,743,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Penn Capital Management Company LLC bought a new position in shares of Harrow in the third quarter worth $15,717,000. Verition Fund Management LLC bought a new position in Harrow in the third quarter valued at $296,000. Scientech Research LLC bought a new position in Harrow in the third quarter valued at $731,000. Luxor Capital Group LP bought a new position in Harrow in the third quarter valued at $14,807,000. Finally, Larson Financial Group LLC increased its stake in Harrow by 848.2% in the third quarter. Larson Financial Group LLC now owns 2,162 shares of the company’s stock valued at $104,000 after acquiring an additional 1,934 shares during the last quarter. Institutional investors own 72.76% of the company’s stock.

Harrow Stock Performance NASDAQ HROW opened at $35.43 on Wednesday. The company has a 50-day simple moving average of $41.75 and a two-hundred day simple moving average of $43.05. The company has a quick ratio of 2.06, a current ratio of 2.20 and a debt-to-equity ratio of 4.67. Harrow, Inc. has a 12-month low of $20.85 and a 12-month high of $54.85. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of -208.40 and a beta of 0.31.

Analyst Ratings Changes HROW has been the topic of a number of research analyst reports. Nomura cut Harrow to a “neutral” rating in a research note on Wednesday, March 18th. William Blair reissued an “outperform” rating on shares of Harrow in a research note on Tuesday, March 3rd. B. Riley Financial reissued a “buy” rating and issued a $65.00 target price (down from $74.00) on shares of Harrow in a research note on Tuesday. Cantor Fitzgerald reduced their target price on Harrow from $94.00 to $91.00 and set an “overweight” rating on the stock in a research note on Wednesday, March 4th. Finally, BTIG Research reissued a “buy” rating and issued a $63.00 target price on shares of Harrow in a research note on Wednesday, March 18th. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $69.86.

Read Our Latest Stock Report on Harrow

Harrow Company Profile (Free Report)

Harrow Health, Inc (NASDAQ: HROW) is a U.S.-based commercial-stage biopharmaceutical company specializing in ophthalmic therapeutics and diagnostics. The company focuses on the development, manufacturing and distribution of proprietary, generic and branded eye care products designed to treat a range of ocular conditions, including glaucoma, ocular hypertension, dry eye disease and other anterior segment disorders.

Through its wholly owned affiliate ImprimisRx, Harrow Health offers a direct-to-physician model for customized formulations as well as low-cost generic alternatives.

Read More Five stocks we like better than Harrow Want to see what other hedge funds are holding HROW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Harrow, Inc. (NASDAQ:HROW – Free Report).

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Harrow is rated a 'Strong Buy' with a fair value of $73.25, implying 104% upside from current levels (~$35.90). I project robust long-term growth driven by Vevye, Iheezo, and pipeline assets, despite recent short-term guidance disappointment and market volatility. I model a bit conservatively, with peak sales, a 32–45% EBIT margin for 2029–2035, and an 11.3% WACC, giving undervaluation even under some risk scenarios.

Reimbursement for Office-Based Utilization to Begin in July 2026 April 16, 2026 07:00 ET  | Source: Harrow, Inc.

NASHVILLE, Tenn., April 16, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, today announced that IOPIDINE® 1% (apraclonidine hydrochloride ophthalmic solution) has been assigned a permanent J-Code (J2374) by the Centers for Medicare & Medicaid Services (CMS). Effective July 1, 2026, IOPIDINE 1% will be reimbursed when administered in the in-office setting.

J-Codes are CMS billing designations that allow physicians to be reimbursed directly for drugs administered in their offices. The assignment of a permanent J-Code removes a longstanding practical barrier to routine use of IOPIDINE 1% for office-based procedures, making it administratively and economically feasible for physicians to incorporate IOPIDINE 1% into standard glaucoma and ophthalmic laser procedure workflows.

Addressing a Well-Defined Clinical Need

IOPIDINE 1% is the only FDA-approved product indicated to prevent intraocular pressure (IOP) spikes following ophthalmic procedures, including in-office laser procedures such as Yttrium Aluminum Garnet (YAG), Nd capsulotomy, selective laser trabeculoplasty (SLT), argon laser trabeculoplasty (ALT), laser peripheral iridotomy (LPI), and others. With its established efficacy and safety profile, IOPIDINE 1% is positioned to be the front-line standard of care—administered at the time of the procedure – to help mitigate risk before IOP elevations occur.

IOP spikes — sudden, acute elevations in pressure inside the eye — are a recognized complication of these procedures. In patients who experience significant spikes, symptoms can include sudden eye pain, blurred vision, nausea, and, in vulnerable patients, optic nerve damage. Prophylactic use of IOPIDINE 1% has been shown to reduce severe IOP spikes from approximately 23% in untreated patients to approximately 2% — a roughly 91% relative risk reduction.i

Dr. Ben Gaddie, OD, added, “Optometrists are the front-line physicians diagnosing and managing glaucoma in the United States, and increasingly, performing laser procedures such as YAGs, SLTs, and LPIs. I am thrilled to now have reimbursed access to an on-label therapy to best ensure my patients are protected from intraocular pressure spikes. I truly appreciate Harrow’s commitment to helping my patients gain affordable access to sight-preserving products like Iopidine 1%.”

“This is ultimately about removing friction—for physicians and for patients,” said Dr. Jason Bacharach, MD. “As a glaucoma specialist, having a reimbursed, in-office option means I can treat patients in real time as I am counseling my patients about the worrisome potential effects of not controlling their eye pressure. For many patients, especially those patients new to navigating their glaucoma diagnosis, that first experience sets the tone. Making therapy accessible at that moment can have a meaningful impact on adherence, outcomes, and peace of mind.”

With the J-Code now issued and effective as of July 1, 2026, Harrow believes physicians will have both the clinical and economic rationale to make prophylactic IOP management a consistent part of their procedural care.

A Growing Market with Room for Adoption

Aside from the greater than 4 millionii American glaucoma patients who are regularly seen in clinics, in-office laser procedures represent a large and expanding segment of ophthalmic care. More than 1.5 millioniii ophthalmic laser procedures are performed annually in the United States, a figure that continues to grow as the population ages and earlier intervention becomes standard practice.

The J-Code designation establishes the reimbursement infrastructure to support broader and more consistent utilization of IOPIDINE 1% over time. Preventing IOP spikes also has the potential to reduce overall healthcare costs by minimizing the need for additional follow-up visits, urgent interventions, and the risk of complications that may require more complex procedures.

"Every decision we make around the time of a procedure matters,” said Dr. Kyle Linsey, DO, Cataract and Refractive Surgeon. “When I can administer a proven pressure-lowering therapy immediately following a procedure—especially for high-risk patients—it’s a game-changer for my practice protocols. It gives both the physician and the patient confidence that we’re starting from a position of control, not uncertainty. It’s a must-have for high-risk patients after a laser procedure."

“We are excited to deliver this wonderful news on IOPIDINE 1%, the first of the three Specialty products I highlighted earlier this year in my Letter to Stockholders,” said Mark L. Baum, Chief Executive Officer of Harrow. “This permanent J-Code represents an opportunity to ensure more patients in need have access to a medicine that can protect and preserve their vision. IOPIDINE 1% has a long-established and highly differentiated clinical profile, and now, with assured reimbursement from use in the physician’s office, the elimination of longstanding reimbursement friction is expected to drive broader, more consistent adoption—and is a particularly natural complement to IHEEZO® for so many office-based procedures requiring an anesthetic.”

About IOPIDINE® 1% (apraclonidine hydrochloride ophthalmic solution) as base

Indications and Usage
IOPIDINE 1% Ophthalmic Solution is indicated to control or prevent post-surgical elevations in IOP that occur in patients after argon laser trabeculoplasty, argon laser iridotomy or Nd:YAG posterior capsulotomy.

Important Safety information
CONTRAINDICATIONS
IOPIDINE 1% Ophthalmic Solution is contraindicated for patients receiving monoamine oxidase inhibitor therapy and for patients with hypersensitivity to any component of this medication or to clonidine

WARNINGS AND PRECAUTIONS
Since IOPIDINE 1% Ophthalmic Solution is a potent depressor of IOP, patients who develop exaggerated reductions in IOP should be closely monitored. Although the acute administration of two drops of IOPIDINE 1% Ophthalmic Solution has minimal effect on heart rate or blood pressure in clinical studies evaluating patients undergoing anterior segment laser surgery, the preclinical pharmacologic profile of this drug suggests that caution should be observed in treating patients with severe cardiovascular disease including hypertension. IOPIDINE 1% Ophthalmic Solution should also be used with caution in patients with severe coronary insufficiency, recent myocardial infarction, cerebrovascular disease, chronic renal failure, Raynaud’s disease or thromboangiitis obliterans. The possibility of a vasovagal attack occurring during laser surgery should be considered and caution used in patients with history of such episodes. Topical ocular administration of two drops of 0.5%, 1%, and 1.5% IOPIDINE Ophthalmic Solution to New Zealand Albino rabbits three times daily for one month resulted in sporadic and transient instances of minimal corneal cloudiness in the 1.5% group only. No histopathological changes were noted in those eyes. No adverse ocular effects were observed in cynomolgus monkeys treated with two drops of 1.5% IOPIDINE Ophthalmic Solution applied three times daily for three months. No corneal changes were observed in 320 humans given at least one dose of IOPIDINE 1% Ophthalmic Solution.

ADVERSE REACTIONS
The following adverse events, occurring in less than 2% of patients, were reported in association with the use of IOPIDINE 1% Ophthalmic Solution in laser surgery: ocular injection, upper lid elevation, irregular heart rate, nasal decongestion, ocular inflammation, conjunctival blanching, and mydriasis.

DOSAGE AND ADMINISTRATION
Instill one drop of IOPIDINE® 1% in the operative eye one hour before anterior segment laser surgery. Instill a second drop immediately after the procedure. Use a new single-use container for each drop and discard after use.

About IHEEZO (chloroprocaine HCl ophthalmic gel) 3%

Indications and Usage
IHEEZO® (chloroprocaine HCl ophthalmic gel) 3% is indicated for ocular surface anesthesia.

Important Safety information
IHEEZO is contraindicated in patients with a history of hypersensitivity to any component of this preparation.
IHEEZO should not be injected or intraocularly administered.
Patients should not touch the eye for at least 10 to 20 minutes after using anesthetic as accidental injuries can occur due to insensitivity of the eye.
Prolonged use of a topical ocular anesthetic may produce permanent corneal opacification and ulceration with accompanying visual loss.
Do not touch the dropper tip to any surface as this may contaminate the gel.
IHEEZO is indicated for administration under the direct supervision of a healthcare provider. IHEEZO is not intended for patient self-administration.
The most common adverse reactions in studies following IHEEZO administration (incidence greater than or equal to 5%) were mydriasis, conjunctival hyperemia, and eye irritation.

About Harrow

Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward-looking statements.” Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general, including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing facility in New Jersey; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.

Contacts:

Mike Biega
Vice President of Investor Relations and Communications
[email protected]
617-913-8890

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i Iopidine® (apraclonidine HCl ophthalmic solution) 0.5% and 1% Prescribing Information. Harrow, Inc
ii Ehrlich et al. JAMA Ophthalmol 2024
iii CMS Part B laser procedure estimates