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Cipher Digital Inc. (CIFR) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Courtney Knight - Head of Investor Relations
Rodney Page - CEO & Director
Greg Mumford - Chief Financial Officer

Conference Call Participants

Stephen Byrd - Morgan Stanley, Research Division
Paul Golding - Macquarie Research
Bill Papanastasiou - Chardan Capital Markets, LLC, Research Division
Richard Choe - JPMorgan Chase & Co, Research Division
Jonathan Petersen - Jefferies LLC, Research Division
Michael Colonnese - H.C. Wainwright & Co, LLC, Research Division
Christopher Brendler - Rosenblatt Securities Inc., Research Division
Michael Chen - Needham & Company, LLC, Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Cipher Digital's Second Quarter 2026 Business Update Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like now to turn the conference over to Courtney Knight, Head of Investor Relations. Please go ahead.

Courtney Knight
Head of Investor Relations

Good morning, and thank you for joining us on this conference call to address Cipher Digital's business update for the second quarter of 2026. Joining me on the call today are Tyler Page, Chief Executive Officer; and Greg Mumford, Chief Financial Officer.

Please note that our press release and presentation can be found on the Investor Relations section of the company's website, where this conference call will also be simultaneously webcast. Please also note that this conference call is the property of Cipher Digital, and any taping or other reproduction is expressly prohibited without prior consent.

Before we start, I'd like to remind you that the following discussion as well as our press release and presentation contain forward-looking statements. These statements include, but are not limited to, Cipher's financial outlook, business plans and objectives and other future events and developments, including statements about the market potential of our business operations, potential competition and our goals

Key Takeaways Fluence Energy is expected to post a 5-cent loss on $761.9 million in fiscal Q3 revenues.Record backlog and nearly $2 billion in orders may support Fluence Energy's storage growth.Fluence Energy's services base expanded, while a weaker digital pipeline may have limited growth. Fluence Energy (FLNC - Free Report) is set to release fiscal third-quarter 2026 results on Aug. 5. The current Zacks Consensus Estimate for the to-be-reported quarter is a loss of 5 cents on revenues of $761.9 million.

Let’s delve into the factors that might have influenced the clean energy company’s results in the September quarter. But it’s worth taking a look at FLNC’s previous-quarter performance first.

Highlights of Q2 Earnings & Surprise HistoryIn the last reported quarter, the Arlington, VA-basedprovider of battery energy storage systems, software and services for renewable and grid applications beat the consensus mark, backed by disciplined execution across projects and supply-chain operations.

FLNC had reported a loss per share of 16 cents, 2 cents narrower than the Zacks Consensus Estimate. However, revenues of $464.9 million came in 21.7% below the Zacks Consensus Estimate after roughly $80 million of shipments slipped into the third quarter because of customs delays in Vietnam and loading-equipment shortages in Spain.

Fluence Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters, met in one and missed in the other. This is depicted in the graph below:

Trend in Estimate RevisionThe Zacks Consensus Estimate for the fiscal third-quarter bottom line has remained unchanged over the past seven days. The estimated figure indicates a 600% decline year over year. The Zacks Consensus Estimate for revenues, however, suggests a 26.4% increase from the year-ago period.

Factors to ConsiderFluence's Energy Storage Products & Solutions business is likely to have been the primary growth driver in fiscal third-quarter 2026. Management reported order intake of nearly $2 billion through May 6, including more than $600 million booked during the third quarter to date, while backlog reached a record $5.6 billion. The company also reaffirmed fiscal 2026 revenue guidance of $3.2-$3.6 billion and indicated that production remained on plan, with roughly 70% of annual revenues expected in the second half. These factors could lift segment revenues. The Zacks Consensus Estimate for this segment's revenues is $636 million, above the year-ago sales of $584 million.

Fluence Energy's Services business is likely to have provided another source of support for fiscal third-quarter results through its expanding recurring revenue base. Assets under management increased to 6.3 GW, while contracted backlog rose 10% to 7.7 GW and the pipeline expanded 15% to 33.7 GW. A larger installed base generally supports higher maintenance and operational service activity, which could have contributed to revenue stability. The Zacks Consensus Estimate for Services revenues stands at $27.2 million compared to $16.9 million a year ago.

Fluence's Digital Applications & Solutions business is likely to have remained a modest headwind during the fiscal third quarter. Although contracted backlog improved 19% to 14.4 GW, the digital pipeline declined 16% to 53.5 GW, pointing to slower growth in future software opportunities. That softer pipeline could limit near-term revenue conversion and weigh on the segment's performance.

What Does Our Model Say?The proven Zacks model does not conclusively show that Fluence Energy is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -68.75%.

Zacks Rank: FLNC currently carries a Zacks Rank of 2.

Stocks to ConsiderWhile an earnings beat looks uncertain for Fluence Energy, here are some firms that you may want to consider on the basis of our model:

Calumet, Inc. (CLMT - Free Report) has an Earnings ESP of +169.57% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 7.

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

The Zacks Consensus Estimate for 2026 sales of Calumet indicates 6.3% growth. Valued at around $3.9 billion, CLMT has gained 173.2% in a year.

Alpha Cognition Inc. (ACOG - Free Report) has an Earnings ESP of +6.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 13.

The Zacks Consensus Estimate for 2026 sales of Alpha Cognition indicates 118.9% growth. Valued at around $180.3 million, ACOG is down 7.3% in a year.

Sky Harbour Group Corporation (SKYH - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 12.

Sky Harbour beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 84.8%. Valued at around $818.9 million, SKYH has gained 11.5% in a year.

Whirlpool Corporation (WHR) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Scott Cartwright - Head of Investor Relations
Marc Bitzer - Chairman & CEO
Juan Puente - Executive President of North America & Global Strategic Sourcing
Ludovic Beaufils - Executive President of KitchenAid Small Appliances, Latin America, Global Information Tech. & Design
Roxanne Warner - Executive VP & CFO

Conference Call Participants

David S. MacGregor - Longbow Research LLC
Sam Darkatsh - Raymond James & Associates, Inc., Research Division
Michael Dahl - RBC Capital Markets, Research Division
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Eric Bosshard - Cleveland Research Company LLC
Shaun Calnan - BofA Securities, Research Division
Edward Magi - BNP Paribas, Research Division
Jeffrey Stevenson - Loop Capital Markets LLC, Research Division

Presentation

Scott Cartwright
Head of Investor Relations

Good morning, and welcome to Whirlpool Corporation's Second Quarter 2026 Earnings Call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; Roxanne Warner, our Chief Financial Officer; Juan Carlos Puente, our Executive President of North America and Global Strategic Sourcing; and Ludovic Beaufils, our Executive President of KitchenAid Small Appliances and Latin America.

Our remarks today track with a presentation available on our Investors section of our website at whirlpoolcorp.com. Before we begin, I want to remind you that as we conduct this call, we will be making forward-looking statements to assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q, and other periodic reports.

We also want to remind you that today's presentation includes the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe that these measures are important indicators of our operations as they exclude items that may not be

Jackson Financial Inc. (JXN) Q2 2026 Earnings Call August 4, 2026 10:00 AM EDT

Company Participants

Elizabeth Werner - Head of Investor Relations
Laura Prieskorn - CEO, President & Director
Don Cummings - Executive VP & CFO
Christopher Raub - EVP & President of Jackson National Life Insurance Company
Brian Walta - Senior Vice President

Conference Call Participants

Suneet Kamath - Jefferies LLC, Research Division
Taylor Scott - Barclays Bank PLC, Research Division
Thomas Gallagher - Evercore ISI Institutional Equities, Research Division
Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division

Presentation

Operator

Good day, everyone. Welcome to the Jackson Financial Second Quarter 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded. If you have any objections, please disconnect at this time. I would now like to turn the call over to Liz Werner, Head of Investor Relations. Please go ahead.

Elizabeth Werner
Head of Investor Relations

Good morning, everyone, and welcome to Jackson's 2026 Second Quarter Earnings Call. Today's remarks may contain forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events. Jackson's filings with the SEC provide details on important factors that may cause actual results or events to differ materially, except as required by law, Jackson is under no obligation to update any forward-looking statements. Today's remarks also refer to certain non-GAAP financial measures. The reconciliation of those measures to the most comparable U.S. GAAP figures is included in our earnings release, financial supplement and earnings presentation, all of which are available on the Investor Relations page of our website at investors.jackson.com.

Presenting on today's call are Jackson CEO, Laura Prieskorn; and CFO, Don Cummings; joining us in the room are our President of PPM America, our investment management subsidiary, Chris Raub; our Head of Planning and Asset Liability Management, Brian Walta; and our Head of Distribution of Jackson

Dorman Products, Inc. (DORM) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Alexander Whitelam
Kevin Olsen - Chairman, President & CEO
Charles Rayfield - Senior VP & Chief Financial Officer

Conference Call Participants

Scott Stember - ROTH Capital Partners, LLC, Research Division
Jeffrey Lick - Stephens Inc., Research Division
David Lantz - Wells Fargo Securities, LLC, Research Division
Bret Jordan - Jefferies LLC, Research Division
Tristan Thomas-Martin - BMO Capital Markets Equity Research

Presentation

Operator

Good morning. My name is Nikki, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dorman Products Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I will now turn the call over to Alex Whitelam, Vice President of Investor Relations. Please go ahead.

Alexander Whitelam

Thank you. Good morning, everyone. Welcome to Dorman's Second Quarter 2026 Earnings Conference Call. I'm joined by Kevin Olsen, Dorman's Chairman, President and Chief Executive Officer; and Charles Rayfield, Dorman's Chief Financial Officer. Kevin will begin with a high-level overview of the quarter and current business environment, along with our segment level performance and market trends. Charles will walk through our second quarter financial results in more detail, discuss cash flow and capital allocation as well as our updated guidance before turning it back to Kevin for closing remarks. After that, we'll open the call for questions.

By now, everyone should have access to our earnings release and earnings call presentation, which are available on our website at investors.dormanproducts.com. Before we begin, I would like to remind everyone that our prepared remarks, earnings release and investor presentation include forward-looking statements within the meaning of federal securities laws. We advise listeners to review the risk factors and cautionary statements in our most recent 10-Q, 10-K and

Key Takeaways Clean Harbors beat Q2 estimates as earnings rose 36.4% and revenues increased 12%. Higher disposal volumes, project work and re-refined product prices lifted profitability. Clean Harbors raised 2026 EBITDA guidance and won a 10-year, $600 million disposal contract. Clean Harbors, Inc. (CLH - Free Report) reported better-than-expected second-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.

The earnings beat failed to impress the market, as the stock has dipped 4.7% since the release of the results on July 29.

CLH posted earnings of $3.22 per share, beating the consensus estimate of $2.74 by 17.5%. Revenues came in at $1.74 billion, exceeding the consensus mark of $1.63 billion by 6.8%.

Earnings increased 36.4% year over year, while revenues rose 12%. The strong results reflected healthy disposal and recycling volumes, remediation and PFAS-related projects, strategic pricing initiatives and favorable market prices for re-refined products.

CLH’s Profitability Improves on Broad-Based GrowthClean Harbors generated net income of $170.5 million, up 34.3% from $126.9 million in the year-ago quarter.

Income from operations increased 27.9% year over year to $268.9 million. Gross profit rose 17.9% to $608.8 million, while the gross margin expanded to 35.1% from 33.3% a year earlier.

Adjusted EBITDA climbed 21.6% to $409 million. The adjusted EBITDA margin expanded 190 basis points to 23.6%, supported by stronger results across both operating segments. The company also maintained solid safety performance, with a year-to-date Total Recordable Incident Rate of 0.46.

Selling, general and administrative expenses increased to $214.6 million from $186.2 million. Higher incentive compensation, insurance expenses, acquisition-related costs and strategic investments contributed to the increase.

Clean Harbors’ ES Segment Gains From Disposal DemandEnvironmental Services generated revenues of $1.46 billion, up 7.7% from the year-ago quarter. Segment adjusted EBITDA increased 8% to $406.1 million, while the adjusted EBITDA margin improved 10 basis points to 27.9%.

Technical Services revenues rose 18%, driven by healthy demand for disposal and recycling services, project activity and acquisitions. A large-scale event contributed approximately $30 million to Technical Services revenues during the quarter.

Incinerator utilization, including the new Kimball facility, increased to 91% from 86% a year earlier. The improvement reflected strength in the base business and project volumes. Landfill volumes jumped 7% on continued project wins.

Safety-Kleen Environmental Services revenues advanced 11%, aided by pricing and higher volumes in containerized waste collection and vacuum services. Field Services revenues rose 3% despite a difficult year-over-year comparison that included major emergency-response projects.

The segment has now delivered year-over-year adjusted EBITDA margin expansion for 17 consecutive quarters.

CLH’s SKSS Business Benefits From Higher PricingSafety-Kleen Sustainability Solutions revenues surged 40.8% year over year to $278.4 million. The increase primarily resulted from a sharp rise in market prices for base and blended products amid global supply disruptions, along with higher charge-for-oil revenues.

Segment adjusted EBITDA jumped 142.8% to $93 million, while its margin expanded to 33.4% from 19.4% in the prior-year period. The supply-constrained environment widened the company’s re-refining spread and significantly strengthened profitability.

Clean Harbors collected 61 million gallons of waste oil compared with 64 million gallons a year earlier. Although collection volume declined, the company maintained a charge-for-oil rate that was considerably higher year over year.

Blended products represented 21% of total volumes sold, up from 19% a year ago and 16% in the first quarter. Direct blended sales increased to 11% of total volumes from 9% in the year-ago quarter, reflecting new customer wins and closed-loop arrangements.

The result significantly exceeded management’s expectations from the first-quarter earnings call, when it anticipated SKSS’ second-quarter growth to exceed 10% because of improving base oil prices.

Clean Harbors’ Cash Flow Remains HealthyCash provided by operating activities was $239.2 million, up from $208 million in the prior-year quarter. Adjusted free cash flow increased to $135.7 million from $133.2 million.

Capital expenditures, net of asset-sale proceeds, were $124 million compared with $87.3 million a year ago. Clean Harbors also repurchased $27.1 million of shares during the quarter, up from $12 million in the year-ago period.

The company ended June with $408.4 million in cash and cash equivalents and $108.4 million in short-term marketable securities. Its current and long-term debt totaled approximately $2.77 billion.

CLH Raises 2026 GuidanceFor the third quarter of 2026, Clean Harbors expects adjusted EBITDA to increase 24-28% year over year. Management anticipates continued strength across both operating segments, supported by emergency-response work, PFAS opportunities, reshoring activity and favorable demand for re-refined products.

Following the strong first-half performance, the company raised the midpoint of its full-year adjusted EBITDA guidance by $110 million. Clean Harbors now expects adjusted EBITDA of $1.35-$1.41 billion, with a midpoint of $1.38 billion.

The company also increased the midpoint of its adjusted free cash flow outlook by $30 million. Adjusted free cash flow is now projected between $520 million and $580 million, with a midpoint of $550 million.

The outlook includes anticipated GAAP net income of $481-$531 million and net cash from operating activities of $890 million to $1.01 billion.

Clean Harbors carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings SnapshotWaste Connections, Inc. (WCN - Free Report) reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter.

Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year.

Equifax Inc. (EFX - Free Report) reported second-quarter 2026 adjusted earnings of $2.25 per share, up 12.5% year over year. The figure beat the Zacks Consensus Estimate of $2.21 by 1.8%.

Revenues increased 10.6% year over year to $1.7 billion and surpassed the consensus mark by a slight margin.

Imagine a company that reports eight straight quarters of 60% revenue growth, beats its earnings-per-share (EPS) estimates by 30%, and raises its next quarter guidance above Wall Street estimates. You might expect the stock to soar 20% following that release, right?

Well, that’s exactly what Reddit Inc. NYSE: RDDT reported to the market last week, and the stock didn’t gain 20%; it dropped 20% the following morning. The EPS and revenue figures masked a concerning decline in U.S. metrics, prompting a swift re-rating from both analysts and investors. Can Reddit stem this user deterioration without losing its monetization success?

Get Reddit alerts:

Headline Numbers Hide User Growth SlowdownReddit reported its Q2 2026 results on July 30 and beat EPS and revenue expectations in smashing fashion. Revenue grew 61% year-over-year (YOY) to a record $805 million, surpassing analysts’ consensus by nearly 10%. EPS of $1.25 also beat estimates by over 30%, and adjusted EBITDA margins reached 43%.

A clean top and bottom line beat, plus management forecasts another record quarter in Q3 with top-end revenue guidance of $870 million and 45% adjusted EBITDA margins.

Reddit Today

$160.08 +5.37 (+3.47%)

As of 02:42 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$119.27▼

$282.95P/E Ratio37.22

Price Target$220.90

The numbers under the hood also looked impressive. Advertising revenue jumped 64% to $762 million, and the number of global daily active unique users (DAUq) grew to 130.3 million, representing YOY growth of 18%. Operating cash flow also surpassed $1 billion on a trailing 12-month basis for the first time ever. And yet the stock dropped 22% following the report, so in the words of Ted Lasso: "Why the decline, Frankenstein?”

The key metric wasn’t global unique users, but U.S. users, which dipped slightly to 53.2 million in Q2 from 53.5 million in Q1. Reddit (for now) splits its user base into two categories: logged-in and logged-out. Logged-in users are the ones who download the app, create accounts, post, get into meme wars, and engage in other activities that can be monetized. Logged-out users come from search traffic (e.g., Google) and typically read an article or a comment chain before moving on. And despite total U.S. users growing from 50.3 million to 53.2 million YOY, the logged-in user base is flat:

Q2 2025: 22.9M logged in

Q3 2025: 23.1M logged in

Q4 2025: 23.0M logged in

Q1 2026: 23.2M logged in

Q2 2026: 23.1M logged in

Logged-in users growth has plummeted to 1% YOY, which is not the direction a management team with aspirations for 100 million daily U.S. users wants to see the numbers turn. This is also the last quarter management will report the logged-in/logged-out split.

Daily User Monetization Quantifies Bull CaseThe decision to retire the differentiated metrics might seem curious considering the slowdown in active user growth. The logged-in vs. logged-out difference is important because logged-in U.S. users are the most easily monetized group on Reddit. And if this group’s growth is stagnating, Reddit will need to increase the revenue it generates per user. The company earned $638 million in U.S. revenue in Q2 2026 from 53.2 million total DAUq, which puts U.S. average revenue per user (ARPU) at $11.85 in the period. And while logged-out users do create ad impressions, the majority of this revenue comes from the logged-in users.

Fortunately for Reddit, the decision to combine user metrics (which should be noted was announced months ago) appears prudent, given the company’s ability to monetize its most active users. Despite flat logged-in user growth, revenue continues to increase, which means Reddit is getting better at extracting dollars from its most dedicated users. Strip out the less valuable logged-out users, and U.S. ARPU rises to $27.62 in Q2 2026, up from $17.85 in Q2 2025, which shows faster revenue growth than the traditional per-user numbers. The monetization factor is the bull case moving forward, the reason management is combining user metrics, and the big caveat on the stock’s 22% drop.

Chart Shows Near-Term Bottom But Long Climb AheadReddit shares were already down on the year before the precipitous post-earnings drop, but had slowly been climbing out of their hole over the last few months. A death cross on the daily chart has scared bulls into hiding, and the latest earnings report coincided with a sharp price rejection at the 200-day moving average. The relative strength index (RSI) has bounced out of oversold territory following the stock’s 10% pop to open the week, but remains stuck in a bearish zone.

Analysts also noted the U.S. user growth slowdown, and the stock received several price target reductions following the Q2 report, including a $142 target from Wells Fargo, which is below the current price. But price target cuts from Oppenheimer, JPMorgan Chase, and Wedbush still have upside built under them, and the Q3 report will reveal whether monetization can keep outpacing engagement. For now, RDDT shares are likely stuck in another trading range, where the valuation has taken a hit, but upside catalysts are required to reignite the rally.

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Diversified Healthcare Trust (DHC) Q2 2026 Earnings Call August 4, 2026 10:00 AM EDT

Company Participants

Matt Murphy - Manager of Investor Relations
Christopher Bilotto - President, CEO & Managing Trustee
Anthony Paula - Vice President
Matthew Brown - CFO & Treasurer

Conference Call Participants

Michael Carroll - RBC Capital Markets, Research Division
John Massocca - B. Riley Securities, Inc., Research Division

Presentation

Operator

Good morning, and welcome to the Diversified Healthcare Trust Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the call over to Matt Murphy, Manager of Investor Relations. Please go ahead.

Matt Murphy
Manager of Investor Relations

Good morning. Joining me on today's call are Chris Bilotto, President and Chief Executive Officer; Matt Brown, Chief Financial Officer and Treasurer; and Anthony Paula, Vice President.

Today's call includes a presentation by management, followed by a question-and-answer session with sell-side analysts. Please note that the recording and retransmission of today's conference call is strictly prohibited without the prior written consent of the company.

Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon DHC's beliefs and expectations as of today, Tuesday, August 4th, 2026. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than through filings with the Securities and Exchange Commission, or SEC.

In addition, this call may contain non-GAAP numbers, including normalized funds from operations or normalized FFO. net operating income, or NOI, and cash basis net operating income or cash basis NOI. A reconciliation of these non-GAAP measures to net income is available in our financial results package, which can be found on our website at www.dhcreit.com.

Key Takeaways SIMO began commercial production of MonTitan enterprise SSD controllers with two Tier 1 customers.Silicon Motion expects five more Tier 1 customers to begin production in the second half of 2026.SIMO is advancing PCIe Gen5 and Gen6 controllers to expand its AI and enterprise storage business. Artificial intelligence is reshaping the storage industry as hyperscale data centers, cloud providers and enterprise customers require faster, lower-latency storage solutions to support increasingly complex workloads. Silicon Motion Technology (SIMO - Free Report) , long known for its consumer NAND flash controllers, is leveraging this shift by expanding into enterprise SSD controllers, AI infrastructure and automotive storage markets.

The company's latest results suggest that this transformation is gaining traction. As enterprise products move into commercial production and new customer ramps begin, investors are evaluating whether AI-driven storage demand can support Silicon Motion's next phase of long-term growth.

Companies such as Western Digital (WDC - Free Report) and Marvell Technology (MRVL - Free Report) are also investing heavily in enterprise SSD controllers and AI storage solutions, underscoring the growing importance of advanced controller technology as hyperscale data centers and cloud infrastructure continue expanding.

SIMO's Enterprise Products Reach ProductionSilicon Motion's enterprise storage business reached an important milestone during the second quarter of 2026. Management announced that its MonTitan enterprise SSD controllers entered commercial production with two Tier 1 customers, marking the company's first meaningful commercial deployments in the enterprise SSD market. Another five Tier 1 customers are expected to begin production during the second half of 2026, significantly broadening the company's enterprise customer base. 

Management described the initial rollout as an exceptionally strong start following several years of investment in enterprise-class storage controllers. The first customer deployments are targeting AI compute storage applications that use TLC NAND to provide high-speed, low-latency storage located near GPUs and CPUs. Additional QLC-based enterprise SSD solutions are expected to begin ramping later this year as higher-capacity deployments expand.

Beyond MonTitan, Silicon Motion's Ferri automotive and enterprise Boot Drive storage products continue expanding across automotive, industrial and AI infrastructure applications, further diversifying the company's revenue base beyond traditional consumer storage markets.

How AI Is Expanding Silicon Motion's MarketArtificial intelligence is creating new storage requirements throughout the computing ecosystem. Large AI models require enormous amounts of high-performance storage capable of handling low-latency data movement between processors, accelerators and memory. Hyperscale cloud providers, enterprise data centers and edge computing platforms increasingly require enterprise SSD controllers designed for these demanding workloads.

Silicon Motion believes this trend significantly expands its addressable market. Management stated that the company is evolving from a consumer-focused NAND controller supplier into a diversified provider of storage controllers and solutions spanning AI infrastructure, enterprise storage and edge computing.

The company is also benefiting from structural changes within the NAND industry. As memory manufacturers devote more resources to high-bandwidth memory and other AI-related products, they are relying more heavily on third-party controller suppliers for embedded storage products. That dynamic has allowed Silicon Motion to continue gaining market share across embedded eMMC and UFS controllers despite softer smartphone demand.

At the same time, management continues expanding into automotive electronics, robotics, industrial systems and enterprise infrastructure, creating additional growth opportunities beyond smartphones and PCs.

Why PCIe Gen5 and Gen6 Matter for SIMONext-generation controller technology remains another important component of Silicon Motion's AI strategy. The company's PCIe Gen5 SSD controllers continue gaining customer adoption, particularly within higher-performance PC and enterprise applications. Although the transition from PCIe Gen4 has progressed more slowly than management anticipated, the company continues winning share across NAND manufacturers and module makers while benefiting from improving product mix and higher average selling prices.

Looking further ahead, Silicon Motion plans to complete the tape-out of its 4-nanometer PCIe Gen6 enterprise controller during 2026. Management has already secured multiple design wins with flash manufacturers and cloud service providers, positioning Gen6 controllers as an important long-term growth driver beginning around 2028.

Combined with expanding MonTitan deployments, these next-generation controller platforms could strengthen Silicon Motion's competitive position as enterprise storage demand continues growing alongside AI infrastructure investments.

Execution Will Determine the OpportunityWhile the long-term opportunity appears substantial, successful execution remains critical. Enterprise storage products typically require lengthy qualification cycles before moving into full-scale production. Revenue growth will depend on Silicon Motion completing customer validation, expanding production with additional Tier 1 customers and maintaining product leadership as enterprise deployments accelerate.

Supply conditions also remain an important consideration. Management expects higher NAND prices and constrained memory supply to continue affecting portions of the consumer electronics market, while rising component costs could slow smartphone demand during 2026.

The company's research report also highlights customer concentration, geopolitical uncertainty and memory cost inflation as risks that investors should continue monitoring even as enterprise opportunities expand.

If Silicon Motion executes successfully across these customer ramps while demand for AI infrastructure continues growing, enterprise storage could become a much larger contributor to future revenue.

How Ranking Signals Support the AI ThesisSilicon Motion currently sports a Zacks Rank #1 (Strong Buy), reflecting improving earnings estimate revisions following another quarter of revenue and earnings outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here. The stock also has a Momentum Score of A, indicating favorable earnings momentum and positive estimate trends that complement the improving business outlook. As the company expands further into enterprise storage and AI infrastructure, stronger earnings expectations continue supporting the bullish investment thesis.

At the same time, Silicon Motion carries a Value Score of F and a VGM Score of D, suggesting much of the company's anticipated growth has already been reflected in its share price. Those mixed Style Scores indicate that while the company's long-term AI opportunity appears increasingly attractive, investors should also recognize that the market is already assigning a premium valuation to those future growth expectations.

For investors with a long-term horizon, Silicon Motion's expanding enterprise portfolio, growing AI storage exposure and continued controller innovation position the company to benefit from one of the semiconductor industry's most important secular growth trends. The pace at which enterprise customer ramps translate into sustained revenue growth will likely determine whether the company ultimately establishes itself as a leading beneficiary of the AI storage cycle.

Key Takeaways FISV's Q2 revenues is projected at $5.1 billion, down 2.8% from the year-ago quarter's actual.Clover expansion may lift merchant solutions revenues, but operating income is expected to fall 13.4%.Financial solutions revenues may drop 6.3%, while segment operating income is forecast to slide 22%. Fiserv, Inc. (FISV - Free Report) is scheduled to release second-quarter 2026 results on Aug. 6, before market open.

FISV has outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average negative surprise of 0.4%.

Fiserv’s Q2 ExpectationsThe Zacks Consensus Estimate for revenues is $5.1 billion, relative to the year-ago quarter’s $5.2 billion. The consensus mark suggests a 2.8% fall from the year-ago quarter’s actual. While merchant solutions is expected to deliver slightly elevated revenues from the year-ago quarter, the top line is likely to have been weakened by the sharp fall in financial solutions’ revenues.

The consensus estimate for merchant solutions revenues is pinned at $2.6 billion, hinting at a marginal uptick from the year-ago quarter’s actual. We expect the primary growth factor to have been Clover platform expansion. Healthcare and Professional Services launched in March 2026 showed progress, which we anticipate to have continued in the second quarter of 2026 as well.

The Zacks Consensus Estimate for merchant solutions operating income is $791.4 million against the year-ago quarter’s $914 million. It reflects a sharp 13.4% year-over-year decline. Rising personnel costs, driven by client-facing workforce expansion and higher operating expenses incurred to fund investments, are the prominent reasons that are likely to have led to this cut.

For financial solutions, the consensus estimate for revenues is pegged at $2.4 billion, suggesting a 6.3% year-over-year decline. We anticipate non-recurring project and implementation fees to have led to this downturn.

The Zacks Consensus Estimate for the financial solutions segment’s operating income is pegged at $970.9 million, while it logged $1.2 billion in the year-ago quarter. This underscores a sizable 22% year-over-year slide from the year-ago quarter’s actual. Growing expenses associated with funding core improvements, Finxact infrastructure, Vision Next and CashFlow Central are likely to have affected the operating income.

The consensus estimate for earnings is pinned at $1.89 per share, suggesting a 23.5% year-over-year tailspin from the year-ago quarter’s actual of $2.47. Incremental expenses from investments fueling long-term client growth are expected to have affected the bottom line.

What Our Model Says About FISVOur proven model does not conclusively predict an earnings beat for Fiserv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Fiserv has an Earnings ESP of -0.20% and a Zacks Rank of 4 (Sell) at present.

Stocks to ConsiderHere are some stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Thomson Reuters (TRI - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $1.9 billion, hinting at a 7.3% increase from the year-ago quarter’s actual. For earnings, the consensus estimate is pegged at 96 cents per share, suggesting a 9.1% rally from the year-ago quarter’s reported number. Over the four trailing quarters, the company has an average earnings surprise of 3.1%.

TRI has an Earnings ESP of +2.35% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to announce second-quarter 2026 results on Aug. 5.

Dave Inc. (DAVE - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $169.8 million, suggesting a 28.9% jump from the year-ago quarter’s actual. For earnings, the consensus mark is $3.69 per share, indicating 17.5% growth. DAVE beat the consensus estimate for earnings in the trailing four quarters, with an average surprise of 45.8%.

DAVE has an Earnings ESP of +1.42% and a Zacks Rank of 2 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 5.

Despite reporting record earnings per share and beating Wall Street estimates, Apple (AAPL +1.93%) stock fell hard after reporting its fiscal third-quarter 2026 results on July 30. Apple shares fell as much as 10% in the sell-off. So what triggered the investor negativity, and is this an opportunity or a red flag warning?

First, services revenue fell short of analysts' expectations at $30.7 billion. Secondly, and perhaps most concerning, management made it clear that there are serious constraints tied to DRAM and NAND memory. There is a shortage in the memory market, and that is causing the available supply to skyrocket in price.

This, in turn, means Apple will either have to absorb the additional costs and cut into its own margins or pass them on to consumers who are already constrained in their discretionary spending.

Analysts expected 12% revenue growth for the upcoming fourth quarter, but Apple's guidance is between 9% and 11%. This is largely what caused the big drop in stock price. So what should investors do now?

Image source: The Motley Fool.

Even with the significant price decline, Apple is still trading at a premium. For long-term investors, Apple's outlook is not exactly alarming. The memory shortage is affecting technology companies across the board, so it's not just an Apple-specific problem. Apple also has a very healthy business overall. Demand for the company's products remains strong and is likely to continue for the foreseeable future, even after CEO Tim Cook's departure this year.

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I'm bullish on Apple because it's taking a more conservative approach to artificial intelligence spending than its peers. The company's revenue still grew 16% year over year, and aside from the memory shortage, there isn't much slowing Apple down right now. It remains a great dividend-paying company.

Catie Hogan has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

Anthropic has signed a $10 billion, six-year deal for computing capacity with Volta Infra Holdings, a cloud infrastructure startup backed by Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), according to media reports citing people familiar with the matter, as the Claude maker moves to secure additional computing resources amid growing demand for its AI products.

Volta announced earlier Tuesday that it had secured a six-year, $10 billion agreement with an unnamed artificial intelligence company. The deal will be delivered in partnership with Bitdeer Technologies Group, a bitcoin miner that operates data centers, using a site in Norway.

The managed data center is expected to feature Nvidia’s next-generation Vera Rubin AI chips, according to details of the agreement. Volta was recently valued at $2.4 billion following a $300 million funding round.

Volta CEO Ricard Boada declined to identify the customer. Representatives for Anthropic and Bitdeer declined to comment.

The agreement adds to Anthropic’s efforts to expand its computing capacity as businesses and consumers increasingly use its Claude chatbot and other AI tools, particularly for coding and related tasks.

Anthropic has also entered computing agreements with SpaceX, Advanced Micro Devices and Akamai Technologies, while the company is reportedly in discussions to lease computing capacity from data centers operated by Meta Platforms.

In Brief

Posted:

8:38 AM PDT · August 4, 2026

Image Credits:Scott Olson / Getty Images Walmart announced on Tuesday that it has completed its acquisition of self-service streaming TV advertising platform Vibe.co. The acquisition, which was announced in June, brings Vibe.co into Walmart Connect, the retailer’s connected TV advertising platform.

The Wall Street Journal previously reported that Walmart was paying $1.4 billion for the acquisition.

Vibe.co’s platform enables small- and medium-sized brands to launch streaming TV campaigns across publishers. By combining Vibe.co’s platform with Walmart Connect, Walmart is expanding its connected TV advertising business and gaining new ways to reach customers.

“Vibe has built an exceptional platform that makes streaming TV advertising simple and accessible for businesses of all sizes,” said Ryan Mayward, GM and senior vice president of Walmart Connect, in a press release. “Together, we’ll build on that foundation to help advertisers connect with customers more seamlessly across streaming, shopping and the broader commerce journey while making advertising more measurable, effective and accessible.”

Walmart made its last major acquisition in 2024 when it purchased TV maker Vizio for $2.3 billion to strengthen its advertising business.

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Exxon Mobil (NYSE:XOM | XOM Price Prediction) posted its best underlying quarterly profit in four years, with shares hitting fresh highs. After a 30.9% year-to-date run, risk/reward looks stretched.

Our 24/7 Wall St. price target for Exxon is $139.86, implying 9.14% downside from current levels. The recommendation is hold with 90% confidence, reflecting strong operations colliding with a rich multiple.

24/7 Wall St. Price Target Summary Metric Value Current Price $153.94 24/7 Wall St. Price Target $139.86 Upside/Downside -9.14% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong on Exxon Our price target sits below current trading levels, and the bull argument is real. Golden Pass LNG Train 1 shipped its first cargo in April 2026, Guyana keeps beating schedule, and WTI is up 19.8% month over month to $84.25. If Brent stays elevated on Middle East risk, Exxon could easily exceed our target.

A Four-Year Profit Peak Meets a 44% Rally Exxon shares are up 43.65% over the past year and 14.06% in July alone, sitting just 5% below the 52-week high of $175.22.

Q1 2026 delivered adjusted EPS of $1.16 versus $1.01 expected, a 15.15% beat and the fourth straight quarter above consensus.

Underlying earnings hit $8.77 billion versus $7.58 billion a year earlier, the strongest underlying quarter in roughly four years, despite GAAP results dinged by $3.88 billion in unfavorable derivative mark-to-market timing and $706 million in Middle East disruption losses. CEO Darren Woods called it a “fundamentally stronger company”.

The Case for $164 and Higher Bulls cite a genuinely improved earnings engine. Cumulative structural cost savings since 2019 hit $15.6 billion, targeting $20 billion by 2030. Guyana crossed 900,000 barrels per day, Permian hit records, and advantaged assets grew to 59% of production.

Capital return is exceptional: $20 billion in 2026 buybacks planned and 43 consecutive years of dividend growth. Analyst consensus sits at $167.09, with bull-case scenarios reaching $164.10, a 6.6% return. If Brent holds near the EIA’s $106/b Q2 forecast, upside estimates look conservative.

What Could Send Shares Back to $125 The bear case starts with valuation. Exxon trades at a a premium trailing multiple, well above peers, and the 224.56% five-year rally already prices in significant upside.

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

Q1 free cash flow fell 61.74% to $2.70 billion as capex climbed, and the effective tax rate jumped to 40%. The EIA expects Brent to fall to $79/b in 2027 as Middle East supply returns. Our bear-case scenario points to $125.51, an 18.47% drop.

How Exxon Compares to Chevron and ConocoPhillips Chevron (NYSE:CVX) trades at a forward P/E of 14 versus Exxon’s 14, but its trailing P/E is 19 versus Exxon’s 26. Chevron’s analyst target of $215 implies meaningful upside, suggesting the Street sees Exxon’s premium as harder to justify.

ConocoPhillips (NYSE:COP) offers a pure upstream contrast. COP trades at a a lower forward multiple with a a lower PEG than Exxon. COP looks cheaper per unit of growth, reinforcing our view that Exxon’s target should sit closer to $140 than $167.

Model Verdict: Rich Multiple Meets Stronger Engine The 24/7 Wall St. price target is $139.86, recommendation hold, confidence 90%. Valuation tips the scale: this is a fundamentally stronger Exxon, but a premium trailing multiple and 5% from the 52-week high leaves little margin for error.

The setup improves if crude sustains above $90 and free cash flow reaccelerates in Q2. Downside risk grows if Brent slides toward the EIA’s 2027 forecast. The current dividend yield sits at 2.6%.

Here is where our model projects Exxon could trade, assuming current growth trajectories hold.

Year 24/7 Wall St. Price Target 2026 $148.65 2027 $145.00 2028 $150.00 2029 $155.00 2030 $141.83 These projections assume Exxon continues executing on cost savings and advantaged-asset growth. Significant upside or downside could come from sustained Middle East disruption or faster-than-expected energy transition.

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

Contact [email protected] for any questions or corrections.

For years, both Coca-Cola (KO -0.49%) and PepsiCo (PEP -0.74%) talked about the same shift: Consumers were pulling back from sugar and reaching for lighter, healthier drinks. Seeing a trend and getting ahead of it are two very different things, though. And the latest quarter makes clear that only one of these giants actually did the hard work early. And it's not close.

Coca-Cola got out in front The proof is in Coke's second-quarter results, and it runs right through its zero-sugar lineup. Coca-Cola Zero Sugar grew 16% globally, and not in one lucky region but across every geographic segment. Diet Coke and Coca-Cola Light added another 7%, led by North America and Asia. This is not a fluke. It is the payoff from investing earlier, more broadly, and more inventively in sugar-free and functional drinks.

Image source: Getty Images.

You can see that same instinct in what Coke is launching. It's rolling out Coca-Cola Zero Zero, a drink with zero sugar, zero calories, and zero caffeine, across Asia and Latin America. It introduced Bodyarmor Fit, a zero-sugar sparkling sports drink with electrolytes. Powerade volume jumped 8%. All that innovation helped drive a full 5% volume gain and 6% organic revenue growth for the quarter.

PepsiCo got caught flat-footed Pepsi's quarter told the opposite story. Its North American beverage volume fell 4%, and its North American food business saw organic revenue slip 2%. Core operating margin contracted to 16.8%, and overall organic revenue grew just 2.4%, well behind Coke's 6%.

The language from management was just as telling as the numbers. Pepsi cited the need to "restate certain global brands" and to invest in "affordability initiatives." Translated, that signals brand fatigue and pricing pressure, a company repositioning and discounting to win back shoppers rather than leading them somewhere new. Tellingly, Pepsi merely affirmed its full-year guidance instead of raising it. When one rival is accelerating and the other is playing defense, the gap speaks for itself.

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But is Coke's edge already priced in? Here's where it gets interesting for investors, because the market isn't blind. Everyone can see that Coke is winning, and the stock reflects it. Coca-Cola trades at a clear premium to PepsiCo, while Pepsi sits at a cheaper valuation with a noticeably higher dividend yield. So the real question is not which company is executing better, since that is plainly Coke. It's whether you're paying up for a story the whole market already knows.

That premium is the catch. A lot of Coke's operational edge is arguably baked into its price, which can mute future upside even if the business keeps humming. Pepsi, meanwhile, is the classic beaten-down value setup: cheaper, higher-yielding, and pushed by activist investors to fix its brands and sharpen its snacks and pricing. If that turnaround gains traction, the room for a positive surprise is larger simply because expectations are lower.

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My honest read is that these two stocks suit two different investors. Coca-Cola is the higher-quality business, clearly winning the health shift, and it deserves a premium, though that premium means you're buying momentum near full price rather than a bargain. PepsiCo is the cheaper, higher-income, higher-risk bet on a recovery that hasn't yet shown up in the numbers.

If I had to choose one to buy today, I would lean toward Coca-Cola, because paying a fair price for the clear winner of a durable trend tends to beat gambling on a laggard's fix. But I wouldn't dismiss Pepsi. Its low price and fat yield mean it doesn't need to win the health race to reward patient investors; it just needs to stop losing it. The trend is real, and for now, only Coke has truly gotten ahead of it.

Intel INTC shares have surged 10% on Tuesday.

The semiconductor company's stock has staged a dramatic comeback in 2026 – currently trading at more than 2x its price at the start of this year.

However, despite recent technological advancements and foundry wins, the company has yet to hit a significant operational milestone: achieving GAAP annual profitability.

For those sticking with INTC stock, though, the good news is that the semiconductor giant is now closer than ever to crossing that threshold.

In fact, experts now believe accelerating AI demand and expanding gross margins could see it post its first profitable year since 2023 as soon as next year.

Intel's headline GAAP loss of $11 billion in Q2 appears dramatic at first, but a closer examination reveals that the red ink stems primarily from non-cash accounting line items.

The dominant drag was a $12.5 billion non-cash, mark-to-market charge tied to escrowed shares set aside for the US government under its agreement with the Trump administration, an accounting adjustment rather than an outflow of cash.

Combined with Q1 non-cash goodwill impairments, these charges obscure Intel’s solid underlying performance across core business units.

Excluding these non-operational items, INTC actually recorded $2.2 billion in non-GAAP adjusted net income and generated $7 billion in operating cash flow during Q2 alone, powered by a 59% year-on-year increase in Data Center and AI revenue.

Reaching annual GAAP profitability in 2027 requires Intel to cover about $23 billion in projected annual operating expenses.

With GAAP gross margins expanding 100 basis points sequentially to 40.4% in the second quarter, and management guiding for 41% in the current quarter – the giant's revenue threshold for break-even sits near $56 billion annually.

And its current sales pace comfortably clears that mark, with first-half revenue reaching roughly $29.7 billion and Q3 revenue guidance set at $15.8 billion to $16.8 billion, implying an annualized run rate of nearly $65 billion.

While H1 accounting losses preclude full-year GAAP profitability in 2026, modest top-line growth of 5% to 10% next year against mid-$20 billion operating expenditures should comfortably yield several billion dollars in GAAP net profit.

While the operational path toward black ink in 2027 is clear, INTC's market cap of roughly $503 billion signals Wall Street has already priced in a significant portion of this recovery.

Trading at a rather stretched 90x forward earnings, investors must weigh near-term noise, such as further paper revaluations of government escrow shares or restructuring costs, against long-term execution on the 18A manufacturing node.

For new capital, chasing aggressive intraday rallies carries valuation risk; a more prudent approach is waiting for price consolidation or building positions on pullbacks.

Note that Wall Street currently rates Intel shares at Hold only, with the mean price target of about $114 indicating potential upside of nearly 15% from here.

LONDON, Aug 4 (Reuters) - Cloud computing giant Oracle Corp is on the cusp of a junk-grade credit rating and its shares have tanked as the artificial intelligence hyperscaler becomes the fall guy of investors' concerns over the sector's debt-fuelled spending binge.

The U.S. multinational is an outlier among top software firms racing to buy chips and build computing power to leapfrog the AI boom, forced by its limited cash reserves to borrow heavily and undertake massive long-term leases.

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The extent of the splurge came to light in June, when Oracle's results for the fiscal year ending in May 2026 showed its free cash flows ​were negative, the bulk of its revenue was spent on capital expenditure and it had signed roughly $260 billion of data centre leases, some starting next year.

The disclosures rattled investors and put Oracle squarely in the crosshairs of ratings agencies which have long warned about the company's ‌heavily leveraged balance sheet.

S&P Global Ratings was the first to move, lowering Oracle's credit rating to BBB-, one notch above junk, in July.

As per Oracle's reported numbers, its debt of $129.5 billion was roughly 4.3 times EBITDA, or earnings before expenses such as interest payments, depreciation, taxes and amortisation.

A debt-EBITDA ratio above 4 signals financial strains, but the ratio can vary with methods and metrics each analyst uses.

Oracle's peers Alphabet Inc. (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab, Microsoft Corp. (MSFT.O), opens new tab and Meta Platforms Inc. (META.O), opens new tab have ratios under 1.

Oracle's massive lease commitments, which it does not yet have to count as debt but which analysts include in estimates, paint an even more worrying picture.

"While multiple other hyperscaler providers are building out AI infrastructure, none are as leveraged or cash flow negative as ​Oracle entering into this build phase," Moody's Ratings said in its February note explaining its negative outlook on a Baa2 rating, one tick above S&P's.

Despite the scale and profitability of its software business, "leverage will increase materially in the near term and could approach 5x temporarily," Moody's said.

The ​funding needs are so large, Oracle will need to issue more debt despite its ratings being severely constrained, while it also cuts back on share buybacks and raises equity capital too, analysts said.

Oracle expects capital expenditures of up ⁠to $95 billion in fiscal 2027, though it expects repayments from customers for up to $25 billion of that.

Oracle declined comment for this article. In earnings calls, it said it remains committed to disciplined capital allocation and preserving its investment-grade credit rating.

S&P analyst Andrew Chang projects Oracle's debt-EBITDA, which per his estimate was 3.6 ​in May, peaking at 4.4 in the coming two fiscal years, given negative cash flows and high expenses, but his base-case scenario is the ratio will not exceed the 4.5 mark that will trigger another downgrade.

"We could downgrade Oracle if Oracle sustains leverage exceeding 4.5 times," Chang said.

Fitch rates Oracle BBB, the same level as ​Moody's, and said in February a sustained EBITDA leverage ratio above 3.5, or above 4 if rents were included, would trigger negative ratings action.

FALLEN ANGEL"There is a risk here that we might have two low BBB ratings for Oracle, maybe even by calendar year-end," Morgan Stanley credit analyst Lindsay Tyler said in a podcast on Friday.

"This has raised justifiable investor questions around fallen angel risk," she said, using a phrase for companies that fall from investment grade to junk.

"I think the fallen angel risk down to high yields is not immediate, but it is a medium-term risk just when you're considering execution and monetization."

Oracle has become a speed bump for the fevered AI sector, forcing investors to revalue the colossal ​spending and lofty growth promises that had driven outsized gains in the stock prices of chipmakers and AI businesses.

Its share price has halved since June to $129 and bonds have sold off, yanking yields up to the 7% to 8% range normally associated with debt below investment grade and compared to 2.5% to 3.5% ​for Alphabet and Amazon bonds.

AI boom worries“If you study Larry Ellison, you’ll see there’s a few times he’s bet the company," North Carolina State Treasurer Brad Briner, who chairs the state’s investment authority overseeing retirement funds for public employees, told Reuters.

"He’s been successful but it’s always uncomfortable for bond investors. We get the downside risks but don’t get as ‌much upside."

Oracle has pointed ⁠to a staggering growth in remaining performance obligations (RPOs), a measure of future revenue, of $638 billion, as expected return on the capital it is deploying.

"Is this visionary or expensive? The big four (Alphabet, Amazon, Meta, Microsoft) entered this cycle with leverage below 1x and are aggressive but defensible. Oracle is not," Algebris Investment said in a note in June on market intelligence platform AlphaSense.

According to Moody's Ratings senior account analyst David Gonzales, leases reduce upfront capital investment but impede financial flexibility because the data centres are not owned, hence cannot be sold or pledged to support additional borrowing.

Alex Haissl, head of software & cloud equity research at Rothschild & Co Redburn, has a sell recommendation on the stock.

"What is challenging is that the market still assumes that these data centers come online on time, that they get the revenues, that they get the profits," said Haissl.

"We're much more cautious about the economics," he said, highlighting the ambitious projections Oracle has made for its high-margin ​cloud services.

S&P's Chang said the mismatch between data centre leases for 15 to ​19 years and short-term customer deals up to five years is also ⁠an "absolutely key risk".

"You have to assume that multiple years out the AI demand is the same or hopefully better than today for this ecosystem to remain viable and for Oracle to meet their lease payments to data centre owners," he said.

Customer concentration is another risk, given almost half of the RPOs comprise contracts with AI firm OpenAI.

Colby Stilson, head of fixed income at Brown Advisory, is wary. "If our investment thesis is based on revenue yet to come, especially when ​it's revenue coming from companies that have a lot of risk associated with them or don't have positive free cash flow generation, that makes that investment even more tenuous," he said.

A LOT AT STAKEOracle's fiscal 2026 ​earnings report showed a robust record 17% revenue ⁠growth during the year.

A majority of analysts on LSEG still rate Oracle stock a buy. Funds such as T. Rowe Price and Neuberger Berman hold its bonds.

"While Oracle has the most strained balance sheet within the sector, we believe they are committed to investment-grade ratings and will manage their liabilities accordingly," said Neuberger's senior portfolio manager David Brown.

Yet, days before the S&P downgrade, Oracle's earnings report was explicit that changes to its credit rating "could negatively affect the value of both our debt and equity securities and increase the interest amounts" paid on outstanding or future debt.

A downgrade could also reduce access to or cost of short-term financing and affect the terms of ⁠long-term commitments including data ​centre leases, it said.

Indeed, funding for large-scale projects, such as the $14 billion debt issued by RD Michigan Property Owner data centre campus, and interest rates on another $10 billion revolving credit are ​explicitly linked to Oracle's rating.

In December, the Financial Times reported that Blue Owl Capital had backed out of funding a $10 billion Oracle data centre project intended to serve OpenAI due to concerns about Oracle’s spending commitments and rising debt levels. Blue Owl told Reuters the decision was unrelated to Oracle's debt.

Credit protection on Oracle, measured by 5-year credit default swaps , recently surged to an ​18-year high of 215 basis points, signaling bond markets are pricing risk much higher than its current credit rating merits. CDS for peers trade around 80 bps.

Additional reporting by Ross Kerber in New York; Editing by Alistair Bell

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

Vidya heads global finance & markets breaking news, overseeing dozens of reporters across the world who cover spot currency, bond, stock & crypto market developments and other fund flows, investor activity, govt policies and corporate actions that impact markets. She also writes and edits markets insights on emerging Asia, with a keen interest in China, and anchors the Cryptoverse column. Vidya has spent 3 decades covering markets, and was previously a trader at Societe Generale. She believes in life-long learning and training, and is now adding Gen AI courses to her masters degree in Physics, MBA and post-grad diploma in applied finance & securities markets.

Kimberly-Clark (KMB - Free Report) reported $4.19 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 0.6%. EPS of $1.80 for the same period compares to $1.92 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.23 billion, representing a surprise of -1.02%. The company delivered an EPS surprise of -10%, with the consensus EPS estimate being $2.00.

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

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

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

Net Sales - North America (NA) - Volume impact - YoY change: -0.3% compared to the -0.4% average estimate based on two analysts.Net Sales - North America (NA) - Net Price impact - YoY change: -0.7% versus -0.1% estimated by two analysts on average.Net Sales - North America (NA) - Mix/Other impact - YoY change: 0.2% compared to the 0.3% average estimate based on two analysts.Net Sales - North America (NA) - Currency Translation - YoY change: 0.1% versus the two-analyst average estimate of 0.1%.Net Sales - North America (NA) - Organic - YoY change: -0.7% versus -0.2% estimated by two analysts on average.Net Sales - International Personal Care (IPC) - Volume impact - YoY change: 0.3% versus the two-analyst average estimate of 1.3%.Net Sales - Consolidated - Organic - YoY change: -0.1% compared to the 0.6% average estimate based on two analysts.Net Sales - International Personal Care (IPC) - Currency Translation - YoY change: 3.1% versus the two-analyst average estimate of 1.7%.Net Sales - International Personal Care (IPC) - Organic - YoY change: 1% versus the two-analyst average estimate of 2%.Net Sales - Consolidated - Currency Translation - YoY change: 1.1% versus the two-analyst average estimate of 0.6%.Net Sales- International Personal Care (IPC): $1.49 billion compared to the $1.49 billion average estimate based on two analysts. The reported number represents a change of +4.1% year over year.Net Sales- North America (NA): $2.7 billion compared to the $2.72 billion average estimate based on two analysts. The reported number represents a change of -1.2% year over year.View all Key Company Metrics for Kimberly-Clark here>>>

Shares of Kimberly-Clark have returned -4.8% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

UPS (UPS +2.10%), one of the world's largest shipping couriers, trades at just 14 times forward earnings and pays a forward dividend yield of 6.4%. Does that make it the best dividend stock in the industrial sector right now, or does it face too many unpredictable headwinds?

Image source: UPS.

Has UPS finally stabilized its business? UPS' stock has risen about 26% over the past 12 months. But it remains 44% below its all-time high of $192.88, which it reached on Feb. 2, 2022.

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UPS' stock stumbled as delivery volumes pulled back from pandemic-era levels and margins shrank. Inflation, intense competition from FedEx and other couriers, a new contract with the Teamsters union to avert a strike, and an intentional reduction in Amazon's (AMZN -1.82%) lower-margin orders exacerbated that pressure.

To stabilize its business, UPS focused on securing higher-margin orders from small- to medium-sized businesses and healthcare customers as it continued to decouple from Amazon. It also trimmed its workforce and automated more tasks. So while UPS' total package volume and revenue continued to decline, its average revenue per piece rose, its adjusted operating margins stabilized, and its adjusted EPS finally grew again in 2025.

Metric

2021

2022

2023

2024

2025

Average Daily Package Volume

25.25M

24.29M

22.29M

22.42M

20.85M

Average Revenue Per Piece

$12.32

$13.38

$13.62

$13.60

$14.50

Total Revenue

$97.29B

$100.34B

$90.96B

$91.07B

$88.66B

Adjusted Operating Margin

13.5%

13.8%

10.9%

9.8%

9.8%

Adjusted EPS

$12.13

$12.94

$8.78

$7.72

$7.16

Data source: UPS.

For 2026, UPS expects its revenue to rise 3% to $91.2 billion as its adjusted earnings grows 1% to $7.22 per share. Those growth rates might seem anemic, but they would mark the first time its revenue and adjusted EPS rose in tandem since 2022. They also counter the bearish notion that its macro, competitive, and labor-related challenges would crush its business.

Is UPS a reliable dividend stock? UPS' adjusted EPS estimate for 2026 will easily cover its forward dividend rate of $6.56 per share. Analysts also expect its revenue and adjusted EPS to grow 4% and 12%, respectively, in 2027 as it integrates more AI features, automates its logistics, and faces fewer headwinds in a warmer macro environment. That stabilization should give it ample room to raise its dividend.

UPS isn't an exciting stock, but its future looks much brighter than it did two years ago. If it continues to grow, it could become one of the best dividend plays in the industrial sector.

Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.

Micron Technology shares MU surged more than 8% on Tuesday after Bank of America reaffirmed its bullish stance on the memory-chip maker, arguing that the recent weakness in semiconductor stocks presents an "enhanced buying opportunity" rather than a deterioration in the company's long-term outlook.

The rally also reflected improving sentiment across Wall Street, with the S&P 500 climbing about 1.5% to a fresh record after upbeat earnings from companies including Palantir Technologies and Caterpillar, while easing oil prices further boosted investor appetite for risk assets.

The brokerage maintained its Buy rating on Micron and reiterated a price target of $1,550, implying more than 72% upside from current trading levels.

AI demand remains the key driverIn a note to clients, Bank of America analyst Vivek Arya said investors have become overly focused on the possibility of future pricing pressure in the memory market, even though current fundamentals continue to improve.

Arya acknowledged that memory prices and profit margins are likely to normalize eventually as additional supply enters the market between mid-2027 and 2028.

However, he argued that the recent sell-off reflects investor positioning ahead of a potential downturn rather than any meaningful deterioration in demand.

"Hyperscaler spending continues to rise despite higher component costs, suggesting semis/memory pricing power," Arya wrote.

According to the brokerage, the ongoing wave of artificial intelligence investments by major cloud providers continues to support demand for advanced memory products, particularly high-bandwidth memory used in AI servers.

Bank of America also noted that GPU rental rates remain close to record highs, while none of the major hyperscale cloud companies has indicated that memory availability is limiting AI deployments.

That, Arya said, suggests pricing power across the semiconductor memory industry remains intact.

Earnings outlook remains resilientThe brokerage's bullish thesis is underpinned by its earnings expectations.

Bank of America projects Micron could generate earnings per share of roughly $150 in fiscal 2028.

Even under a bearish scenario in which DRAM and NAND prices decline in line with previous industry downturns, the brokerage believes earnings could still remain near $100 per share.

That would be substantially higher than Micron's previous cycle peak of around $12 per share recorded in 2018.

According to the brokerage, the stock is currently valued at only about eight to nine times its projected bear-case earnings, suggesting investors are assigning little value to the company's AI-related businesses, including its high-bandwidth memory segment.

Bank of America also pointed to the increasing use of long-term supply agreements, which it expects could eventually account for between 50% and 70% of industry capacity.

While such agreements cannot eliminate cyclical downturns, they could reduce pricing volatility compared with previous memory cycles.

Micron has faced significant volatility in recent weeks as investors questioned whether aggressive AI spending by hyperscale cloud companies would eventually slow and whether rising competition from China could erode the company's market position.

Concerns intensified after Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, completed its initial public offering and reports emerged that the company was considering building a second DRAM fabrication facility in Beijing.

CXMT has rapidly expanded its presence in the global memory market.

According to Counterpoint Research, the company held an 8% share of the global DRAM market in the first quarter, compared with just 3% a year earlier.

BofA argued China's CXMT is still "not a threat in AI," as it primarily serves commodity DRAM rather than high-bandwidth memory.

Samsung Electronics, SK Hynix and Micron together still account for nearly 90% of the global DRAM market and continue to dominate the advanced high-bandwidth memory segment used in AI applications.

While investors remain wary of future industry supply increases, Bank of America believes the current pullback has created an attractive entry point for long-term investors betting on continued AI infrastructure spending and sustained demand for advanced memory chips.

Micron stock surged after Bank of America reaffirmed its Buy rating, citing strong AI demand, a resilient earnings outlook, and limited threat from China's CXMT.

HSBC Holdings PLC's (LSE:HSBA, NYSE:HSBC) return to share buybacks was deemed a bit on the small side, despite the Asia-focused lender's stronger-than-expected quarter and improving business momentum.

The FTSE 100's largest company announced a $1 billion buyback alongside a 60% rise in second-quarter pre-tax profit to $10.1 billion.

It was the first buyback since HSBC paused repurchases to fund its acquisition of the remaining shares in Hang Seng Bank in October.

Jefferies analyst Joseph Dickerson called it a "modestly lower buyback than we expected", which "may underwhelm". He had pencilled in $2 billion, a figure he said appeared to match investor expectations, although there was no formal consensus forecast.

UBS had also expected $2 billion. Analyst Jason Napier said he was "surprised" the return was not bigger given the strength of HSBC's first-half performance.

The disappointment looks more about restrained ambition than weak trading, the analysts suggested.

Second-quarter profit excluding notable items beat company-compiled consensus by 5%, as income came in ahead of expectations and operating costs remained in line.

Loans increased 5% at constant currency, led by corporate and institutional banking and the UK business. Wealth income excluding net interest income rose 21%, while net new money increased 8%.

"The direction of travel for consensus estimates looks to be slightly upwards following a 6% PBT beat in Q2 with notable balance sheet growth," Dickerson said.

HSBC also raised expected savings from its restructuring to $2 billion from $1.5 billion. However, management flagged higher variable pay in the second half and investment intended to support revenue growth in 2027.

The bank strengthened its interest income guidance only slightly, from "around" $46 billion to "at least" $46 billion, while leaving its longer-term targets unchanged.

UBS retained its 'neutral' rating and 1,520p target, noting that HSBC is already valued at 2.2 times tangible book value.

Napier said: "In short, HSBC is performing better than consensus forecasts but didn’t deliver the Banking NII or buyback we’d forecast and, with targets unchanged and higher costs flagged won’t, we think, force a market rethink on the financial outlook today."

By PYMNTS  |  August 4, 2026

 | 

Highlights

FIS says its issuing strategy is gaining traction with large financial institutions as renewals, new client wins and cross-selling reinforce the rationale behind the Total Issuing Solutions acquisition.

Banks continue spending on payments, fraud prevention, data and modernization projects even as broader technology budgets remain under scrutiny, according to management.

A lower Capital Markets outlook, driven by slower sales and delayed backlog conversion rather than weakening demand, overshadowed another solid quarter for Banking Solutions.

FIS management spent much of Tuesday morning (Aug. 4) talking about banking, issuing and payments growth.

Although the company’s Banking Solutions business continued to outperform expectations, investors pushed the stock lower in early trading on Tuesday, down 7%, after management reduced its full-year outlook for Capital Markets, citing weaker-than-expected sales, slower implementation of existing backlog and softer professional services activity. On a second quarter earnings call, executives repeatedly described those issues as execution problems rather than weakening customer demand.

FIS lowered its full-year revenue outlook Tuesday after reducing expectations for its Capital Markets business, overshadowing another quarter of steady growth in Banking Solutions, where payments, issuing and recurring software revenue continued to expand.

The company now expects full-year revenue growth of 4.5% to 5%, down from its previous forecast of 5.1% to 5.7%. FIS maintained its Banking outlook while reducing expected Capital Markets growth to 3% to 3.5% from 5.5%, citing lower professional services sales, slower implementation of signed business and weaker recurring revenue growth than previously anticipated.

Banking Solutions remained the stronger of the company’s operating segments during the quarter. Banking revenue increased 5.6% on a pro forma basis, Payments grew 6.4% and total Banking Solutions revenue rose 6.1%. Recurring revenue increased 5%, while recurring sales were up 14%. The segment also expanded margins through product mix, cost savings and integration synergies.

“Our total issuing solutions acquisition thesis is playing out as expected with real client wins and revenue growth across the portfolio,” Chief Executive Officer and President Stephanie Ferris said during the conference call with analysts.

Issuing was a focus throughout both the prepared remarks and the analyst question-and-answer session. Management noted that since the beginning of 2025, FIS has renewed approximately one-third of its issuing revenue, with 72% of the portfolio now under contract through 2029 and beyond. Enterprise-wide annual contract value sold to joint FIS and Total Issuing Solutions customers increased 35% during the first half of the year, according to comments on the Tuesday call. Ferris later told analysts that FIS has converted approximately 30 million accounts during the past year, including one of the largest portfolio migrations she has seen in the industry.

“We are the only known processor that can convert accounts at scale and size. We’ve never had a failed … migration,” she said.

Analysts noted that Payments has become the company’s largest business. Ferris said Total Issuing Solutions is growing in line with the overall Payments segment, while Chief Financial Officer James Kehoe said FIS expects Payments to continue growing at roughly current mid-single-digit levels and to outpace the Banking software business over the longer term.

Management also described continued customer demand for payments modernization, fraud prevention, data management and lending technology.

Ferris said banks continue investing in payment capabilities for consumers, commercial customers and small businesses, while demand remains strong for fraud tools, data platforms and modernization projects. She added that FIS has not seen customers delay technology decisions in the areas where it competes.

The discussion with analysts also highlighted changes in how banks are approaching core modernization.

Rather than replacing core systems outright, Ferris said large financial institutions are increasingly looking at orchestration layers, ledgers and customer-master capabilities that can modernize existing infrastructures.

AI as Operating Tool Artificial intelligence was presented on the call as an operating initiative rather than a standalone product announcement.

The company said it now has 10 AI products in market, more than 200 live customers and a pipeline of more than 500 opportunities. Internally, FIS reported AI engineering throughput has increased by 1.5 to two times while software defects have declined approximately 30%.

On cybersecurity, Ferris said AI is helping security teams identify and remediate vulnerabilities more quickly.

“Cyber is one of our biggest technology spends. It has been and it continues to be,” she told analysts, adding that AI is improving productivity within the company’s cyber operations.

Despite lowering its 2026 expectations, management said it expects recurring revenue growth in Capital Markets to improve as customer attrition moderates and delayed implementations move into production.

During its second-quarter earnings call on Tuesday, Spotify again teased the upcoming release of a new product that will allow music fans to leverage AI to make covers and remixes of artists’ music, with the artists’ consent.

The company also announced that Merlin, a licensing partner for independent labels and distributors, has now joined Universal Music Group (UMG) on the new AI music effort. The deal brings more than 30,000 labels from Merlin’s network to the product, which will allow fan-made covers and remixes by artists who agree to participate.

Spotify has positioned its AI music product as being significantly different from the more controversial AI music startups that have been used to create fully artificial songs. Instead, Spotify co-CEO Gustav Söderström told investors on Tuesday’s call that the company’s AI music product will be about “real artists, not fake artists.”

“We want artists to be consenting [to add] their work into this catalog, so people can play around with covers and remixes based on their art,” added co-CEO Alex Norström. “We also obviously want to give them credit. And last but not least…we not only have the consent and give credit, but we also drive the compensation for this. So, really, we’re talking about the first legal way to partake in this AI tailwind that we see coming for interactive music,” he said.

AI music has flooded streaming services. Music streamer Deezer recently noted that more than 50% of daily track uploads were generated with AI, up from 10% in January 2025.

The company told investors that a research preview of the fan remix and covers product would initially be made available to a subset of users. Spotify also noted that it would not require a full music catalog to get started. The company did not say when the preview would arrive.

The new tool will launch as a paid add-on, creating an additional revenue stream for artists, Spotify previously said.

“Our remix and covers I think is an incredibly exciting product again because there is no one else that can really do this,” Söderström said. “Normal generative music will happen with or without us. This product will not happen without us, and it needs to exist so that existing artists can participate in this.”

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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

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Key Takeaways Iridium shares rose 23.2% in three months on growth programs, recurring revenues and two major deals.Service revenues grew 4%, made up 72% of sales and supported a recurring base as subscribers rose 6%.Premium valuation, weaker earnings and transaction risks could test Iridium's rally after its recent gains. Iridium Communications Inc. (IRDM - Free Report) shares have gained 23.2% in the past three months as investors assessed expanding growth programs, recurring service revenues and two major corporate transactions.

The advance has support from improving top-line trends and a broader service portfolio. Yet weaker earnings, premium valuation and transaction-related risks leave the next move less clear.

What May Be Supporting IRDM's Three-Month GainSecond-quarter 2026 revenues increased 4% year over year to $225.2 million. Service revenues also rose 4% and represented 72% of total revenues, giving Iridium a sizable recurring base while total billable subscribers expanded 6%.

Image Source: Zacks Investment Research

Commercial Internet of Things data revenues grew 5% as subscribers increased 9%. Progress in aviation safety, positioning, navigation and timing services and direct-to-device connectivity may also have improved sentiment, though these developments cannot be isolated as the cause of the stock's gain.

Iridium's Growth Engines Still Have Room to RunThe Iridium 9604 module combines satellite connectivity, low-power cellular access and global navigation satellite system positioning in one compact platform. Iridium NTN Direct, planned for later in 2026, could extend standardized satellite links to low-cost Internet of Things and consumer devices.

The commercially available positioning, navigation and timing application-specific integrated circuit broadens potential uses in infrastructure, communications and transportation. Aireon adds space-based aviation surveillance and is expected to contribute at least $100 million in annual service revenues. Rocket Lab Corporation (RKLB - Free Report) could eventually add launch and satellite manufacturing capabilities if its pending acquisition of Iridium closes.

Valuation Could Limit IRDM's Next Leg HigherIRDM trades at 5.9X trailing sales, above the 2.3X sub-industry multiple. That premium indicates that investors already assign substantial value to future service expansion and the expected contribution from Aireon.

The multiple remains below Iridium's five-year median of 6.2X, so the stock is not expensive relative to its own history. Still, recent reductions in earnings estimates make a further rerating harder to justify without clearer profit improvement.

Execution Risks Could Test Iridium's MomentumCommercial broadband revenues declined 8% in the second quarter, while broadband average revenue per unit fell 7% to $243. Equipment costs rose to $13.5 million from $11.3 million. Net income dropped to $9.7 million from $22 million, primarily because of higher transaction costs.

The Aireon purchase increased financial obligations through a $100 million revolver draw and assumed credit-facility debt. The Rocket Lab transaction adds merger expenses, closing uncertainty and exposure to Rocket Lab's share price because the stock consideration adjusts within a pricing collar. Globalstar, Inc. (GSAT - Free Report) is also expanding satellite Internet of Things and direct-to-device capabilities, underscoring the competition for connected-device applications.

IRDM's Mixed Signals Temper the Rally CaseThe stock's gains and growth initiatives support a constructive long-term view, but the valuation, earnings pressure and deal-related uncertainties limit the case for chasing the three-month rally.

IRDM currently carries a Zacks Rank #3 (Hold), consistent with a balanced stance. Its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of F show that favorable characteristics are not broad-based. The weak Momentum and VGM scores suggest limited near-term confirmation for another sustained advance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Viatris to report Q2 results on Aug. 6 with revenue and EPS estimates of $3.68B and 62 cents, respectively.VTRS may see Developed and Emerging Markets growth, partly offset by the Indore import alert and competition.Viatris could benefit from cost-saving efforts, with gross margin expected to remain stable. Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report second-quarter 2026 results on Aug. 6, before the opening bell.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.68 billion, while the same for earnings is pinned at 62 cents per share.

VTRS Q2 Earnings: Factors to ConsiderThe company reports under four segments based on geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (“JANZ”) and Greater China.

Developed Markets sales are expected to rise, though growth in North America may be tempered by the Indore manufacturing facility import alert. Solid growth in EpiPen, Creon and Viatris’ thrombosis portfolio is likely to have enabled it to partially absorb the anticipated competition for Dymista. Incremental revenues from new products, such as iron sucrose, are likely to have boosted the quarterly top line.

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024. The import alert affected 11 actively distributed products, including lenalidomide and everolimus. The Zacks Consensus Estimate for revenues from Developed Markets is pinned at $2.18 billion.

Sales from Emerging Markets are expected to have experienced growth, driven by branded business in Turkey, Mexico and certain Asian markets. The generic business is likely to have seen growth due to the stabilization of supply for certain lower-margin ARB products. The Zacks Consensus Estimate for revenues from this geography is pegged at $558.5 million.

Viatris shares have surged 41.6% year to date against the industry’s 1.1% decline.

Image Source: Zacks Investment Research

Sales in JANZ are likely to have been adversely impacted by lower net sales of existing products in Japan and Australia due to government price reductions and additional competition. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $285.1 million.

Sales in Greater China might have increased due to strong growth across multiple channels, including e-commerce, retail and private hospitals, as a result of higher marketing and selling efforts. The Zacks Consensus Estimate for revenues from this geography is pegged at $631.7 million.

Viatris also reports revenues under two divisions (in terms of product category) — brands and generics.

The brand business comprises the majority of the company’s portfolio. Brand performance is likely to have benefited from strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.

However, the generics business is likely to have been negatively impacted by inspection at the Indore facility and competition for Wixela, partially offset by continued growth in Yupelri and Breyna in North America, strong performance across key European markets, and slight volume growth in JANZ.

On the profitability front, gross margin is likely to have been stable. Total operating expenses in the second quarter of 2026 are likely to have declined as a result of the planned cost-saving initiatives.

VTRS’ Impeccable Earnings Surprise HistoryViatris’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.04%. In the last reported quarter, VTRS beat on earnings by 13.46%.

What Our Model Predicts for ViatrisOur proven model does not conclusively predict an earnings beat for VTRS this time around.  The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP:Viatris has an Earnings ESP of -0.81% as the Most Accurate Estimate of 61 cents per share is just shy of the Zacks Consensus Estimate of 62 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank:VTRS currently carries a Zacks Rank #4 (Sell).

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

Stocks to ConsiderHere are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2 at present.

Shares of ACAD have lost 4.1% year to date. The company’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 20.83%. Acadia is scheduled to report second-quarter results on Aug. 4, after market close.

Arcutis Biotherapeutics (ARQT - Free Report) has an Earnings ESP of +52.94% and a Zacks Rank #2 at present.

Shares of ARQT have lost 10.7% year to date. The company’s earnings beat estimates in three of the trailing four quarters but missed in the remaining quarter, delivering an average surprise of 42.78%. ARQT is scheduled to report second-quarter results on Aug. 5.

BridgeBio Pharma (BBIO - Free Report) has an Earnings ESP of +13.69% and a Zacks Rank #3 at present.

Shares of BBIO have risen 4.5% year to date. BridgeBio Pharma’s earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 18.94%.