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Retail landscapes are shifting as consumer spending patterns evolve under various economic pressures. Investors choosing between Dick's Sporting Goods (DKS -1.11%) and Home Depot (HD +3.63%) must decide which giant best balances growth with stability.

Dick's Sporting Goods focuses on the athlete lifestyle and recently expanded into the footwear market through a major acquisition. Home Depot serves a massive distribution network of professionals and hobbyists. Both companies represent different segments of the retail sector.

The case for Dick's Sporting GoodsDick's Sporting Goods operates as a leading omnichannel retailer for sports equipment, apparel, and footwear through brands like Golf Galaxy and Public Lands. Following its acquisition of the Foot Locker business, the company now serves a broader demographic including sneaker enthusiasts across North America, Europe, and Asia. Its ScoreCard loyalty program includes approximately 30 million members who account for over 75% of sales.

In FY 2025, revenue reached nearly $17.2 billion, representing growth of 28.1% compared to the prior year. The company reported net income of close to $849.2 million for the period. This resulted in a net margin of approximately 4.9%, though this was a decrease from the 8.7% net margin reported in the previous fiscal year.

As of its January 2026 balance sheet, the debt-to-equity ratio is approximately 1.4x. This ratio measures total debt against shareholder equity, and it shows how much the company relies on borrowing to fund its operations. The current ratio is roughly 1.5x, indicating the company has $1.50 in current assets for every $1.00 in short-term debt, while free cash flow reached nearly $400.2 million during FY 2025.

The case for Home DepotHome Depot is the world's largest specialty retailer for home improvement, offering everything from building materials to décor and professional maintenance products. The company focuses on two main groups: do-it-yourself consumers and professional contractors. Its recent acquisitions, including SRS, further expanded its reach into specialty trades like roofing, landscaping, and pool contracting.

In FY 2025, revenue reached close to $164.7 billion, indicating a growth rate of approximately 3.2% over the previous year. The company reported net income of nearly $14.2 billion for the period. This resulted in a net margin of roughly 8.6%, reflecting a slight decline from the 9.3% net margin achieved in FY 2024.

As of its February 2026 balance sheet, the debt-to-equity ratio is approximately 5.1x. This figure compares total debt to shareholder equity and suggests the company uses a high level of leverage in its capital structure. The current ratio is roughly 1.1x, which measures the ability to cover short-term liabilities, and free cash flow for FY 2025 was close to $12.6 billion.

Risk profile comparisonDick's Sporting Goods faces significant integration risks from its Foot Locker acquisition. Additionally, it relies heavily on Nike (NKE +1.16%) for approximately 31% of its merchandise, creating a vulnerability to any changes in that partner's distribution strategy.

Home Depot deals with macroeconomic uncertainty, particularly high interest rates that can reduce housing turnover and home improvement demand. It faces competition from Lowe's Companies (LOW +4.34%) and potential disruptions from trade policies affecting imports from Canada and Mexico.

Valuation comparisonDick's Sporting Goods offers a significantly lower entry point based on sales and future earnings estimates, while Home Depot commands a premium for its market dominance.

MetricDICK'S Sporting GoodsHome DepotForward P/E12.5x22.0xP/S ratio0.6x1.9xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy for 2027?Dick’s Sporting Goods’ Foot Locker acquisition hasn’t gone smoothly. There have been integration issues, and the division has faced tough competition. When the company announced second-quarter results in August, management lowered this year’s expectations for Foot Locker. It now predicts same-store sales (comps) will range from flat to a 2% decline.

Home Depot’s customers have been stressed by economic factors, like high interest rates, which have caused homeowners to put off major projects. Despite this, Home Depot’s fiscal second-quarter comps grew 1.7%. This covered the period that ended on Aug. 2. For the year, it expects comps of flat to up 2%.

Home Depot may have to endure a sluggish home improvement market for a while, which will continue to hurt sales. However, with the company having the number one market position, by far, in the home-improvement retail sector, it’s operating from a position of strength.

That means homeowners will undoubtedly turn to Home Depot for its goods and services when they’re ready to undertake major projects.

Despite Home Depot’s richer valuation, its leading position makes it the better buy for patient investors.

Total Third-Quarter 2026 Revenue Grew 41% Year-Over-Year to $1.1 Billion

INGREZZA® (valbenazine) 2026 Net Sales Guidance Raised to $2.9 to $2.925 Billion

, /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced its financial results for the third quarter ended September 30, 2026.

"Our third quarter performance marks another important milestone in Neurocrine's evolution, with net product sales exceeding $1 billion for the first time, driven by strong underlying demand across our diversified portfolio of first-in-class medicines," said Kyle W. Gano, Ph.D., Chief Executive Officer of Neurocrine Biosciences. "This continued growth reinforces the strength of our strategy and expands our capacity to invest in innovation, advance our pipeline and build an enduring biopharmaceutical company. Looking ahead to 2027, we see meaningful opportunities for continued growth across INGREZZA, CRENESSITY® (crinecerfont) and VYKAT® (diazoxide choline) XR, alongside multiple important clinical milestones, including Phase 3 readouts for osavampator in major depressive disorder and direclidine in schizophrenia."

Total Revenue Highlights

Three Months Ended

September 30,

(unaudited, in millions, except per share data)

2026

2025

YoY Growth

Revenues:

INGREZZA Net Product Sales

$           801

$           687

17 %

CRENESSITY Net Product Sales

211

98

115 %

VYKAT XR Net Product Sales

107

—

NM

Other Revenues

4

10

NM

Total Revenues

$        1,123

$           795

41 %

Total revenues for the third-quarter 2026 were $1.1 billion, compared with $795 million in the prior-year period representing 41% year-over-year growth.INGREZZA third-quarter 2026 net product sales were $801 million, representing 17% growth year-over-year. Results reflected double-digit volume growth, with record TRx and NRx supported by strong demand and high rates of persistency.INGREZZA full year 2026 guidance was increased from a range of $2.825 billion to $2.875 billion up to $2.9 billion to $2.925 billion.CRENESSITY third-quarter 2026 net product sales were $211 million, driven by steady new patient demand and high rates of persistency with approximately 80% reimbursement for dispensed prescriptions.VYKAT XR third-quarter 2026 net product sales were $107 million, driven by steady and consistent patient demand and persistency.Recent Clinical and Corporate Developments

Announced the initiation of a Phase 1 first-in-human clinical study evaluating the safety and tolerability of NBIP-'1968, an investigational GLP-1/GIP/glucagon receptor triple agonist being developed as a therapy for obesity. This follows the Q1 2026 initiation of a Phase 1 first-in-human clinical study of NBIP-'2118, a potential first-in-class CRF2 peptide agonist. Initial clinical data from both programs will inform the development of a novel co-formulated combination therapy, including the optimal ratio of the two agents. NBIP-'2118 will also be evaluated independently as a potential standalone therapy for obesity.Announced the initiation of a Phase 2 clinical study evaluating the efficacy, safety, tolerability and pharmacokinetics of NBI-'567, an investigational M1/M4 (M1-preferring) selective muscarinic agonist being developed as an adjunctive therapy for cognitive impairment in Alzheimer's disease.Announced publication of the KINECT-PRO™ Phase 4 open-label study results demonstrating that treatment with once-daily INGREZZA capsules resulted in substantial and sustained improvements in patient-reported quality of life and functionality, alongside improvements in clinician-rated tardive dyskinesia (TD) movement severity. Improvements were observed regardless of underlying psychiatric diagnosis or baseline TD movement severity, including among participants with clinician-rated mild TD movements. The manuscript appears in CNS Spectrums.Presented research advancing the understanding of Prader-Willi syndrome and real-world experience with VYKAT XR at the Foundation for Prader-Willi Research Symposium & Family Conference.Announced that Eiry W. Roberts, M.D., who previously served as Neurocrine's Chief Medical Officer and most recently as a Strategic Advisor, has rejoined the Company's executive management team as Chief Medical Officer (CMO).Company to host R&D Day in New York on December 15, 2026.Third-Quarter 2026 Financial Results

Three Months Ended

September 30,

(unaudited, in millions, except per share data)

2026

2025

Total Revenues

$          1,123

$             795

GAAP Cost of Revenues

$               27

$               13

Non-GAAP Cost of Revenues

$               20

$               13

GAAP Research and Development (R&D)

$             352

$             250

Non-GAAP R&D

$             317

$             228

GAAP Selling, General, and Administrative (SG&A)

$             366

$             292

Non-GAAP SG&A

$             327

$             259

GAAP Net Income

$             207

$             210

GAAP Earnings Per Share – Diluted

$            1.96

$            2.04

Non-GAAP Net Income

$             347

$             222

Non-GAAP Earnings Per Share – Diluted

$            3.29

$            2.17

(unaudited, in millions)

September 30,

2026

December 31,

2025

Total Cash, Cash Equivalents, and Marketable Securities

$             790

$          2,543

Third-quarter 2026 GAAP net income and earnings per share were $207 million and $1.96, respectively, compared with $210 million and $2.04, respectively, for third-quarter 2025.Third-quarter 2026 Non-GAAP net income and earnings per share were $347 million and $3.29, respectively, compared with $222 million and $2.17, respectively, for third-quarter 2025.A reconciliation of GAAP to Non-GAAP financial results can be found in Table 3 at the end of this press release.Third-quarter 2026 GAAP and Non-GAAP net income compared with third-quarter 2025 were primarily driven by:Higher net product sales of $329 million.Third-quarter 2026 GAAP operating expenses included certain expenses associated with the acquisition of Soleno Therapeutics, Inc. (Soleno), which closed in May 2026, and are excluded from Non-GAAP operating expenses.Increased R&D expense in support of an expanded and advancing pre-clinical and clinical portfolio included investments in the osavampator Phase 3 program in major depressive disorder (MDD) and the muscarinic franchise, including the direclidine Phase 3 program as a potential treatment for adults with schizophrenia. Development milestone expense included in R&D was $10 million and $1 million, respectively, for the third quarter 2026 and 2025.Increased SG&A expense primarily reflected continued investment in our commercial organization, included the expansion of our INGREZZA and CRENESSITY sales teams in the first quarter of 2026 and for support of VYKAT XR following the acquisition of Soleno, which closed in May 2026.Third-quarter 2026 includes $52 million loss from changes in fair values of equity investments, compared with a gain of $31 million for third quarter 2025 (Non-GAAP adjustment)At September 30, 2026, the Company had cash, cash equivalents, and marketable securities totaling approximately $790 million.Full Year 2026 Financial Guidance

(dollars in millions)

Prior

Updated

INGREZZA Net Product Sales 1

$2,825 - $2,875

$2,900 - $2,925

GAAP R&D 2

$1,275 - $1,325

No Change

Non-GAAP R&D 2, 3

$1,140 - $1,190

No Change

IPR&D 4

$23

$34

GAAP SG&A 5

$1,575 - $1,600

$1,540 - $1,560

Non-GAAP SG&A 3, 5

$1,325 - $1,350

$1,290 - $1,310

GAAP Amortization of Acquired Intangible Assets 6

$85 - $90

No Change

INGREZZA sales guidance reflects expected net product sales of INGREZZA in tardive dyskinesia and chorea associated with Huntington's disease.R&D guidance reflects the continued advancement of the Company's pre-clinical and clinical portfolio including the Phase 3 programs for osavampator in major depressive disorder and direclidine in schizophrenia, and includes approximately $33 million of expense for development milestones related to our in-licensed product candidates. Development milestones are included in R&D guidance once achieved or deemed probable to achieve.Non-GAAP guidance has been adjusted to exclude estimated non-cash stock-based compensation expense of approximately $115 million in R&D and $170 million in SG&A, including approximately $58 million related to the acceleration of vesting of equity awards for Soleno employees which vested in full upon the closing of the transaction, and acquisition, integration and divestiture-related expenses of approximately $95 million. Non-cash stock-based compensation expense for performance-based equity awards is included in guidance once the predefined performance-based criteria for vesting is achieved or deemed probable to achieve.IPR&D guidance represents completed collaboration and licensing arrangements.SG&A guidance reflects expense for ongoing commercial initiatives, including the recent expansion of our sales teams in Q1 2026, supporting INGREZZA growth and the launch of CRENESSITY and VYKAT XR.In connection with the acquisition of Soleno, the Company recorded approximately $2.2 billion of intellectual property related to VYKAT XR to the balance sheet, which will be amortized over an expected life of 16 years.Conference Call and Webcast Today at 4:30 PM Eastern Time
Neurocrine Biosciences will hold a live conference call and webcast today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Participants can access the live conference call by dialing 800-347-6865 (US) or 203-518-9757 (International) using the conference ID: NBIX. The webcast and accompanying slides can also be accessed at approximately 4:30 p.m. Eastern Time on Neurocrine Biosciences' website under Investors at www.neurocrine.com. A replay of the webcast will be available on the website approximately one hour after the conclusion of the event and will be archived for approximately one month.

About Neurocrine Biosciences
Neurocrine Biosciences is a leading biopharmaceutical company with a simple purpose: to relieve suffering for people with great needs. We are dedicated to discovering, developing and commercializing life-changing treatments for patients with under-addressed neurological, psychiatric, endocrine and immunological disorders. The company's diverse portfolio includes FDA-approved treatments for tardive dyskinesia, chorea associated with Huntington's disease, classic congenital adrenal hyperplasia, hyperphagia in Prader-Willi syndrome, endometriosis* and uterine fibroids*, as well as a robust pipeline including multiple compounds in mid- to late-phase clinical development across our core therapeutic areas. For more than three decades, we have applied our unique insight into neuroscience and the interconnections between brain and body systems to treat complex conditions. We relentlessly pursue medicines to ease the burden of debilitating diseases and disorders, because you deserve brave science. For more information, visit neurocrine.com, and follow the company on LinkedIn, X, Facebook and YouTube. (*in collaboration with AbbVie)

NEUROCRINE, the NEUROCRINE BIOSCIENCES Logo, YOU DESERVE BRAVE SCIENCE, INGREZZA, and CRENESSITY are registered trademarks of Neurocrine Biosciences, Inc. VYKAT is a registered trademark of Soleno Therapeutics, Inc.

Non-GAAP Financial Measures
In addition to the financial results and financial guidance that are provided in accordance with accounting principles generally accepted in the United States (GAAP), this press release also contains the following Non-GAAP financial measures: Non-GAAP cost of revenues, Non-GAAP R&D expense, Non-GAAP SG&A expense, Non-GAAP other income (expense), net, Non-GAAP net income and earnings per share. When preparing the Non-GAAP financial results and guidance, the Company excludes certain GAAP items that management does not consider to be normal, including recurring cash operating expenses that might not meet the definition of unusual or non-recurring items. In particular, these Non-GAAP financial measures exclude: non-cash stock-based compensation expense, amortization expense related to acquired intangible assets, amortization expense related to acquisition-date inventory fair value step-up, stock based compensation expense related to the acceleration of vesting of equity awards for Soleno employees, changes in fair value of equity investments, acquisition-related transaction and integration costs, gains on sales of businesses, net of transaction costs, other divestiture-related transaction costs, changes in foreign currency exchange rates and certain adjustments to income tax expense. These Non-GAAP financial measures are provided as a complement to results provided in accordance with GAAP as management believes these Non-GAAP financial measures are useful to investors because they help indicate underlying trends in the Company's business, are important in comparing current results with prior period results and provide additional information regarding the Company's financial position. Management also uses these Non-GAAP financial measures to establish budgets and operational goals that are communicated internally and externally and to manage the Company's business and evaluate its performance. The Company provides guidance regarding combined R&D and SG&A expenses on both a GAAP and a Non-GAAP basis. A reconciliation of these GAAP financial results to Non-GAAP financial results is included in the attached financial information.

Forward-Looking Statements
In addition to historical facts, this press release contains forward-looking statements that involve a number of risks and uncertainties. These statements include, but are not limited to, statements related to: our business strategy, objectives, and future development plans; the benefits to be derived from our products and product candidates; the value our products and/or our product candidates may bring to patients; the continued success of INGREZZA; successfully commercializing CRENESSITY and VYKAT XR; our financial and operating performance, including our future revenues, expenses, or profits; our full year 2026 financial guidance; our acquisition of Soleno Therapeutics, including the prospective benefits of the acquisition, and our strategy, plans, objectives, expectations (financial or otherwise) and intentions with respect to our future financial results, growth potential and anticipated product portfolio in connection with the acquisition; our collaborative partnerships; clinical and scientific data updates for our products and product candidates, including observations regarding clinical outcomes, safety, and tolerability; expected future clinical and regulatory milestones; and the timing of the initiation and/or completion of our clinical, regulatory, and other development activities and those of our collaboration partners. Factors that could cause actual results to differ materially from those stated or implied in the forward-looking statements, include but are not limited to the following: risks and uncertainties associated with Neurocrine Biosciences' business and finances in general; risks and uncertainties associated with the commercialization of our products; risks related to our ability to realize the anticipated benefits of the acquisition of Soleno Therapeutics, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period and that we will not be able to integrate Soleno Therapeutics' business successfully or that such integration may be more difficult, time-consuming or costly than expected, disruption from the acquisition, making it more difficult to conduct business as usual or maintain relationships with employees, customers, suppliers, other business partners or governmental entities, unknown or inestimable liabilities, the risk of litigation and/or regulatory actions related to the acquisition, and the degree and pace of market uptake of VYKAT XR; risks related to the development of our product candidates; risks associated with our dependence on third parties for development, manufacturing, and commercialization activities for our products and product candidates, and our ability to manage these third parties; risks that the FDA or other regulatory authorities may make adverse decisions regarding our products or product candidates; risks that development activities may not be initiated or completed on time or at all, or may be delayed for regulatory, manufacturing, or other reasons, may not be successful or replicate previous clinical trial results, may fail to demonstrate that our product candidates are safe and effective, or may not be predictive of real-world results or of results in subsequent clinical trials; risks that the potential benefits of the agreements with our collaboration partners may never be realized; risks that our products, and/or our product candidates may be precluded from commercialization by the proprietary or regulatory rights of third parties, or have unintended side effects, adverse reactions or incidents of misuse; risks associated with government and third-party regulatory and/or policy efforts which may, among other things, impose sales and pharmaceutical pricing controls on our products or limit coverage and/or reimbursement for our products; risks associated with competition from other therapies or products, including potential generic entrants for our products; risks associated with our ability to manage the growth of our organization; and other risks described in our periodic reports filed with the Securities and Exchange Commission. Neurocrine Biosciences disclaims any obligation to update the statements contained in this press release after the date hereof other than as required by law.

###

TABLE 1

NEUROCRINE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in millions, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Revenues:

Net product sales

$      1,119.0

$         789.9

$      2,884.3

$      2,035.6

Collaboration revenues

3.7

5.0

11.9

19.4

Total revenues

1,122.7

794.9

2,896.2

2,055.0

Operating expenses:

Cost of revenues, excluding amortization of acquired intangible assets

26.6

13.0

63.5

31.5

Research and development

351.8

250.0

974.7

757.5

Acquired in-process research and development

11.7

0.3

34.4

0.4

Selling, general, and administrative

366.3

291.6

1,124.5

854.4

Amortization of acquired intangible assets

35.0

1.0

51.5

3.0

Gain on sale of business, net of transaction costs

—

—

(28.6)

—

Total operating expenses

791.4

555.9

2,220.0

1,646.8

Operating income

331.3

239.0

676.2

408.2

Other (expense) income :

Interest expense

(0.3)

—

(3.2)

—

Unrealized (loss) gain on equity investments

(52.3)

30.6

(25.8)

(6.7)

Investment income and other, net

5.0

22.2

45.5

64.5

Total other (expense) income, net

(47.6)

52.8

16.5

57.8

Income before provision for income taxes

283.7

291.8

692.7

466.0

Provision for income taxes

77.2

82.3

143.9

141.1

Net income

$         206.5

$         209.5

$         548.8

$         324.9

Earnings per share, basic

$           2.03

$           2.11

$           5.43

$           3.27

Earnings per share, diluted

$           1.96

$           2.04

$           5.26

$           3.19

Weighted average common shares outstanding, basic

101.6

99.4

101.0

99.3

Weighted average common shares outstanding, diluted

105.2

102.5

104.3

102.0

TABLE 2

NEUROCRINE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

September 30,

2026

December 31,

2025

Cash, cash equivalents, and marketable securities

$              737.9

$          1,480.4

Accounts receivable

957.3

686.8

Inventory

66.1

69.0

Other current assets

246.9

286.5

Total current assets

2,008.2

2,522.7

Noncurrent inventory

177.7

—

Noncurrent marketable securities

51.8

1,063.0

Right-of-use assets

437.2

455.4

Equity investments

95.0

120.8

Property and equipment, net

92.2

89.8

Intangible assets, net

2,191.0

4.7

Goodwill

500.6

6.1

Deferred tax assets

11.8

320.3

Other noncurrent assets

61.9

48.7

Total assets

$          5,627.4

$          4,631.5

Total current liabilities

984.6

743.4

Deferred tax liabilities

105.0

—

Noncurrent operating lease liabilities

392.3

415.3

Other noncurrent liabilities

266.8

219.7

Stockholders' equity

3,878.7

3,253.1

Total liabilities and stockholders' equity

$          5,627.4

$          4,631.5

TABLE 3

NEUROCRINE BIOSCIENCES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(unaudited, in millions, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

GAAP net income 1

$       206.5

$       209.5

$       548.8

$       324.9

Adjustments:

Stock-based compensation expense

54.3

53.7

176.5

159.3

Acceleration of stock-based compensation expense and related taxes 2

—

—

60.1

—

Acquisition-related employee compensation and severance costs

16.7

—

38.6

—

Amortization of inventory fair value step-up 3

6.3

—

9.3

—

Amortization of acquired intangible assets 4

35.0

1.0

51.5

3.0

Acquisition/divestiture-related transaction and integration costs

1.9

—

50.6

—

Gain on sale of business, net of transaction costs 5

—

—

(28.6)

—

Changes in fair values of equity investments 6

52.3

(30.6)

25.8

6.7

Other 7

1.9

0.8

3.2

3.1

Income tax effect related to reconciling items 8

(28.2)

(12.3)

(91.9)

(37.1)

Non-GAAP net income 1

$       346.7

$       222.1

$       843.9

$       459.9

Diluted earnings per share:

GAAP

$         1.96

$         2.04

$         5.26

$         3.19

Non-GAAP

$         3.29

$         2.17

$         8.09

$         4.51

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Cost of Revenues:

GAAP cost of revenues

$              26.6

$              13.0

$              63.5

$              31.5

Adjustments:

Acceleration of stock-based compensation expense and related taxes 2

—

—

1.8

—

Acquisition-related employee compensation and severance costs

—

—

0.2

—

Amortization of inventory fair value step-up 3

6.3

—

9.3

—

Non-GAAP cost of revenues

$              20.3

$              13.0

$              52.2

$              31.5

Research and Development:

GAAP R&D

$            351.8

$            250.0

$            974.7

$            757.5

Adjustments:

Stock-based compensation expense

24.7

22.0

76.4

66.6

Acceleration of stock-based compensation expense and related taxes 2

—

—

18.1

—

Acquisition-related employee compensation and severance costs

8.9

—

13.9

—

Other 7

1.2

—

1.2

—

Non-GAAP R&D

$            317.0

$            228.0

$            865.1

$            690.9

Selling, General, and Administrative:

GAAP SG&A

$            366.3

$            291.6

$         1,124.5

$            854.4

Adjustments:

Stock-based compensation expense

29.6

31.7

100.1

92.7

Acceleration of stock-based compensation expense and related taxes 2

—

—

40.2

—

Acquisition-related employee compensation and severance costs

7.8

—

24.5

—

Acquisition/divestiture-related transaction and integration costs

1.9

—

45.5

—

Other 7

0.4

0.5

1.5

2.4

Non-GAAP SG&A

$            326.6

$            259.4

$            912.7

$            759.3

Amortization of Acquired Intangible Assets:

GAAP amortization of acquired intangible assets

$              35.0

$                1.0

$              51.5

$                3.0

Adjustments:

Amortization of acquired intangible assets 4

35.0

1.0

51.5

3.0

Non-GAAP amortization of acquired intangible assets

$                 —

$                 —

$                 —

$                 —

Gain on Sale of Business, Net of Transaction Costs:

GAAP gain on sale of business, net of transaction costs

$                 —

$                 —

$            (28.6)

$                 —

Adjustments:

Gain on sale of business, net of transaction costs 5

—

—

(28.6)

—

Non-GAAP gain on sale of business, net of transaction costs

$                 —

$                 —

$                 —

$                 —

Other Income (Expense):

GAAP other (expense) income, net

$            (47.6)

$              52.8

$              16.5

$              57.8

Adjustments:

Changes in fair values of equity investments 6

52.3

(30.6)

25.8

6.7

Acquisition/divestiture-related transaction and integration costs

—

—

5.1

—

Other 7

0.3

0.3

0.5

0.7

Non-GAAP other income, net

$                5.0

$              22.5

$              47.9

$              65.2

1.

Includes the following expenses:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Milestones (R&D)

$             10.0

$               1.0

$             32.9

$             61.5

Acquired in-process research and development (IPR&D)

$             11.7

$               0.3

$             34.4

$               0.4

2.

Relates to the acceleration of vesting of equity awards for Soleno employees which vested in full upon the closing of the transaction.

3.

Relates to amortization expense associated with recording approximately $168 million of VYKAT XR inventory fair value step-up.

4.

Primarily relates to amortization of acquired intangible assets associated with the recording of approximately $2.2 billion of intellectual property related to VYKAT XR, which will be amortized over 16 years.

5.

Reflects a pre-tax gain, net of transaction costs, recognized on the sale of Neurocrine Group Limited in January 2026.

6.

Reflects periodic fluctuations in the fair values of equity investments.

7.

Reflects non-cash interest expense related to the Company's credit facility, legacy campus facility costs, net of sublease income, and other immaterial costs that management does not consider indicative of the Company's ongoing operating performance.

8.

Estimated income tax effect of Non-GAAP reconciling items are calculated using applicable statutory tax rates, taking into consideration any valuation allowance. In addition, Non-GAAP tax expense may also be affected by certain non-recurring, non-operating, or discrete tax items.

SOURCE Neurocrine Biosciences, Inc.

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy (NASDAQ: XEL) announced today that it has named Hanna Grene its vice president, Enterprise Growth and Commercialization, effective Nov. 16. Grene will lead the company's newly established Enterprise Growth and Commercialization group. Xcel Energy's capital investment plan aims to modernize and expand the energy grid while driving economic growth and sustainability and meeting the evolving energy needs of the communities it serves and large load customer.

HOUSTON--(BUSINESS WIRE)--Cheniere Announces Pricing of $1.2 Billion of Senior Notes due 2037.

NEW YORK--(BUSINESS WIRE)--Yext, Inc. (NYSE: YEXT), the enterprise marketing platform for an agentic world, today announced that it has completed its acquisition of Flamel.ai, an AI-powered marketing platform purpose-built for franchise and multi-location brands to manage localized paid campaigns. The acquisition marks a significant milestone for Yext. The integration of Flamel.ai into Yext will pair Scout's competitive intelligence with Flamel.ai's localized ad execution, so brands can put the.

Aehr Test Systems Inc. (NASDAQ:AEHR) posted its first-quarter fiscal 2027 results after Monday's closing bell, blowing past analysts' revenue and earnings estimates.

LARGO, Fla.--(BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced its participation in the Jefferies Global Healthcare Conference, which is being held November 16-19, 2026 at the Waldorf Hilton and ME Hotel in London, UK. Management will participate in a fireside chat on Monday, November 16th at 11:30 a.m. Greenwich Mean Time (6:30 a.m. Eastern Time). A live audio webcast of the fireside chat will be accessible under the “Events” section of the company's investor relations website:.

LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported third quarter 2026 results. A reconciliation of non-GAAP results is detailed in Exhibit 1. "We had strong third quarter 2026 earnings performance, highlighting our intense focus on operational excellence and cash generation," said Rex. D. Geveden, president and chief executive officer. "We are in the early-stages of a multi-decadal investment cycle as our customers seek to address.

Updated TUPELO results featured in a Presidential Plenary at CGA-IGC: Lisa Boardman, M.D., Professor of Medicine at Mayo Clinic, presented updated findings from the Phase 1b/2 TUPELO trial in familial adenomatous polyposis (FAP) at the Collaborative Group of the Americas on Inherited Gastrointestinal Cancer (CGA-IGC) Annual Meeting. Deep reductions sustained off treatment: In an expanded adult population aged 18 years and older, after 12 weeks of treatment, patients achieved a 47% median reduction in total polyp burden, with approximately 1 in 3 achieving reductions of ≥65%. Twelve weeks after stopping treatment, 85% of evaluable patients remained below baseline. Activity throughout the upper and lower GI tract, including near-clearance: After 12 weeks of treatment, nearly 1 in 2 patients in the upper GI and more than 1 in 3 in the lower GI achieved polyp burden reductions of ≥65%. Two patients achieved ≥98% reductions in upper GI polyp burden. Substantial reductions in larger, higher-risk polyps: Six of eight patients with polyps >5 mm at baseline had reductions in the number of these polyps after 12 weeks of treatment. Four achieved reductions of ≥80%, including two whose larger-polyp counts fell from more than 90 polyps to one.    No new safety signals observed: Favorable chronic dosing safety profile, consistent with the MEK inhibitor class. The highest-grade treatment-related adverse event (TRAE) was Grade 1 or 2 in 21 of 26 patients (81%) and Grade 3 in four patients (15%); one patient experienced no TRAEs. No Grade 4 or 5 TRAEs were reported. No additional discontinuations were reported since the previous data cutoff. Registrational trial: The Company anticipates initiating a registrational trial in the second half of 2027, pending ongoing FDA discussions, and will provide additional details later this year. Denver, Colorado, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Recursion (Nasdaq: RXRX), a leading clinical-stage company pioneering AI-enabled drug discovery and development, today announced new positive Phase 2 data from the ongoing TUPELO trial of REC-4881, an investigational, oral MEK1/2 inhibitor for familial adenomatous polyposis (FAP). The new analyses show that most patients had reductions in both the number of larger, higher-risk polyps and in lower GI polyp burden, building on the upper GI results announced on October 15, 2026. Together, these findings support the potential of REC-4881 as an oral therapy to address FAP across the GI tract. Lisa Boardman, M.D., a gastroenterologist and Professor of Medicine at Mayo Clinic, presented the results in a Presidential Plenary at the Collaborative Group of the Americas on Inherited Gastrointestinal Cancer (CGA-IGC) Annual Meeting in Denver, Colorado.

“People have been doing research in the chemoprevention space in FAP for decades, and at least in the United States, we still don’t have an agent that is FDA approved. We’re still having to send FAP patients for major surgeries and we’re still doing frequent scopes on these patients. The need for effective chemoprevention in FAP is very large, and it’s only going to increase over time as the number of FAP patients continues to increase,” said Bryson Katona, M.D., Ph.D., Director of the GI Cancer Genetics Program, University of Pennsylvania Perelman School of Medicine, and TUPELO study investigator.

“We recently shared data that showed deep, durable reductions in polyps with REC-4881, particularly in the upper GI, where patients with FAP face the greatest risk and the fewest options. Today's update goes a layer deeper. REC-4881 is reducing the larger polyps that often drive much of the surgery for these patients, across the GI tract from a single oral therapy,” said Najat Khan, Ph.D., President and Chief Executive Officer of Recursion. “This is a lifelong disease with no approved pharmacologic therapies, and REC-4881 is the clearest proof point yet of what we built Recursion to do. Our priority now is to align with the FDA on a registrational path and move with focus and discipline toward a trial in the second half of 2027.”

Latest Data from Phase 2 Trial of REC-4881

Deep reductions in total polyp burden, sustained off treatment

The TUPELO study was designed to study polyp burden reduction after 12 weeks on REC-4881 (4 mg QD) and again after 12 weeks off-treatment. Results show a rapid and durable treatment effect across the GI tract. Trial results have strengthened since the November 2025 data cut, including expanded adult FAP population ages 18 years and older:

87% of patients (13 of 15) had a reduction in total polyp burden after 12 weeks of treatment, with a 47% median reduction. One in three patients achieved reductions of 65% or more. All patients added since the November 2025 data cut (n=4) had a reduction in total polyp burden, including two patients with 89% and 98% reduction, respectively. At Week 25, after 12 weeks off-treatment, 85% of patients (11 of 13) remained below baseline. The persistence of polyp burden reduction below baseline in most patients may allow for dosing flexibility, which could matter in the long-term management of a chronic disease. “The durability of a reduction in polyp burden is an important metric to understand for any type of chemopreventive agent in FAP. The dream chemopreventive agent for FAP is one that a patient doesn’t have to take lifelong and that potentially could be taken for a shorter amount of time or with an intermittent dosing pattern. Seeing durability over a twelve-week course is certainly encouraging. In longer trials we’ll see exactly how long that durability lasts, but I think it is a very encouraging first sign for this drug,” said Dr. Katona.

Activity across the upper and lower GI tract, including near-clearance

For post-colectomy patients, upper GI disease represents the highest unmet need in FAP, due to risks of bleeding and perforation from polyp removal, high complication rates from surgery, and high cancer risk. When endoscopic management is no longer sufficient to control duodenal disease, patients may require major surgery, including removal of the duodenum. Lower GI disease also remains a concern after colectomy, as polyps can continue to develop in the remaining rectum or ileal pouch, posing an ongoing cancer risk and potential need for additional surgery. REC-4881 has now shown polyp burden reductions in both regions.

Upper GI findings:

92% of patients (12 of 13) had reductions in polyp burden after 12 weeks of treatment, with a 55% median reduction. Nearly 1 in 2 patients achieved reductions of ≥65%, and two patients achieved reductions of ≥98%. Half (6 of 12) improved by at least one Spigelman stage at Week 13, a widely used system clinicians use to grade duodenal polyposis and decide how often patients need endoscopy and when surgery is recommended. 92% (11 of 12) remained below baseline at Week 25, after 12 weeks off-treatment, and 6 of 11 had equal or greater reductions during the off-treatment period than during treatment. Lower GI findings:

9 of 11 patients (82%) with measurable polyp burden at baseline had reductions after 12 weeks of treatment, with a 50% median reduction, and 1 in 3 achieved reductions of 65% or more. At Week 25, after 12 weeks off-treatment, 70% of evaluable patients remained below baseline. Substantial reductions in larger, higher-risk polyps

Polyp size is one of the primary risk factors in FAP. The chance that a polyp contains high-grade dysplasia or cancer increases with polyp size, and clinical guidelines use size to decide which polyps to remove and how often patients need endoscopy. In a new analysis, REC-4881 reduced the number of polyps >5 mm in most patients who had them at baseline:

Six of eight patients had fewer polyps >5 mm after 12 weeks of treatment, and in four patients the count fell by ≥80%. In two patients, more than 90 larger polyps were reduced to a single polyp. In both of those patients, all of the larger polyps were in the upper GI. The highest Week 13 responder went from 1,344 mm of total polyp burden to 32 mm, a 98% reduction, and from 96 upper GI polyps >5 mm to one. This is a single patient and is not representative of the overall population. Six of the eight patients assessed at Week 25 were below their baseline count after 12 weeks off-treatment. Most of the larger polyps at baseline were in the upper GI. Note that the study collected polyp counts using >5 mm as the largest size category, which is inclusive of all polyps above this threshold; separate counts for polyps >10 mm were not collected.

No new safety signals observed

MEK1/2 inhibitors are an established class with a well-characterized side-effect profile. Across the 26 safety-evaluable patients dosed at 4 mg (five in Phase 1b and 21 in Phase 2), treatment was well tolerated, with a safety profile consistent with other MEK inhibitors and with previously reported results. No new safety signals were observed as of the data cutoff in the expanded patient population, which includes patients 18 and older.

The majority of treatment-related adverse events (TRAE) were Grade 1 or 2 (21 of 26 patients, 80.8%). The highest-grade TRAE was Grade 3 in four patients (15.4%), and there were no Grade 4 or 5 TRAEs. The most common TRAEs were consistent with MEK1/2 inhibition, including dermatitis acneiform, rash, CPK increase, diarrhea, and asymptomatic LVEF decrease. Adverse events were manageable, and most resolved within 12 weeks off-treatment. Four patients discontinued for Grade 1 or 2 TRAEs, with no discontinuations for a Grade 3 event. No additional discontinuations were reported since the previous data cutoff. Next steps

The Company anticipates initiating a registrational trial in the second half of 2027, pending ongoing FDA discussions, and will provide additional details later this year.

About FAP

FAP is a rare, inherited disease that affects more than 50,000 patients in the US and EU5, with no approved pharmacologic therapies. It is caused by mutations in the APC gene, and without surgery to remove the colon, the lifetime risk of colorectal cancer approaches 100%. Colectomy does not stop the disease, as polyps keep forming in the remaining rectum or ileal pouch and in the upper GI tract, so patients face lifelong endoscopic surveillance, repeated polyp removal and, for some, further major surgery. Based on Company estimates, FAP represents a potential $15 billion opportunity.
Among the approximately 35,000 post-colectomy patients, upper GI disease is the area of greatest unmet need. Nearly all patients develop adenomas in the duodenum, and duodenal or ampullary cancer is a leading cause of cancer-related death after colectomy. The thin duodenal wall raises the risk of bleeding and perforation when these polyps are removed. When endoscopy can no longer control the disease, patients may need major surgery, such as removal of the duodenum or a Whipple procedure, which carries significant morbidity and a long recovery.
Natural History of FAP

To better understand the natural history of FAP and to put the single-arm results of TUPELO in context, the Company collaborated with Amsterdam University Medical Center to analyze a registry of approximately 200 patients with FAP. In 47 patients matched to the original TUPELO eligibility criteria, polyp burden increased over time in both the upper and lower GI. In the 35 patients with upper GI involvement, mean annualized polyp burden increased by 33%. In the 28 patients with lower GI involvement, mean annualized polyp burden increased by 88%. These results help to contextualize the polyp burden reduction observed after 12 weeks of REC-4881 treatment.

REC-4881 Background and Dual Mechanism

REC-4881, a potential first-in-class oral therapy granted FDA Orphan Drug and Fast Track designations, is an allosteric inhibitor of MEK1 and MEK2 designed to address both Wnt/β-catenin initiation and MAPK evolution pathways. The opportunity was identified through unbiased phenotypic screening using Recursion’s AI foundation models, which showed that MEK1/2 inhibition could potentially reverse the cellular effects of APC loss. This dual mechanism differentiates REC-4881 from other single-agent therapies studied in FAP, which have each been directed at a single pathway, and provides the potential to suppress both pathways and reduce polyp burden across the GI tract.

About the TUPELO Trial of REC-4881

REC-4881 is being evaluated in the Phase 1b/2

TUPELO open label study (NCT05552755) assessing its safety, tolerability, pharmacokinetics (PK), and efficacy as a monotherapy in post-colectomy patients aged 18+ years with familial adenomatous polyposis (FAP).

About Recursion

Recursion (NASDAQ: RXRX) is a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives. Recursion is advancing a portfolio of differentiated investigational medicines across its wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology, and other therapeutic areas with significant unmet need. Enabling its mission is the Recursion OS, an AI-native, end-to-end drug discovery and development platform integrating biology, chemistry, and clinical development into a unified intelligence system. Powered by proprietary multimodal data, purpose-built AI models, and bilingual teams fluent in both science and AI, the Recursion OS is designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.
Recursion's platform infrastructure is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories generate proprietary data at industrial scale. Recursion also maintains offices in New York, Montréal, and London, three global hubs for talent and leadership at the intersection of AI and scientific innovation.

Forward-Looking Statements
This document contains information that includes or is based upon “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, those regarding the potential efficacy, safety, tolerability, and durability of response of REC-4881; the clinical relevance of the TUPELO trial data and the natural history analysis, and the potential for additional data to confirm such results; the outcome and timing of Recursion's ongoing discussions with the FDA regarding a registrational path for REC-4881; the design, timing of initiation, and outcomes of a registrational trial of REC-4881, including anticipated initiation in the second half of 2027, and the timing of additional details regarding such trial; the potential for REC-4881 to be a first-in-class therapy for FAP and to address unmet need in FAP; the potential benefits of REC-4881’s Orphan Drug and Fast Track designations; the estimated FAP patient population and market opportunity; Recursion OS and other technologies; business and financial plans and performance; and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “potential,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar terms, or the negative of these terms. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; the risk that preliminary or interim data from the TUPELO trial, which are based on a limited number of patients, may change as additional data become available or may not be predictive of results in later-stage trials, and that comparisons to natural history data may not be indicative of results in controlled trials; the risk that the FDA may not agree with our proposed registrational path or may require additional data or trials; our ability to leverage and enhance our drug discovery platform; risks related to our development and use of artificial intelligence and machine learning models, including the quality, sufficiency, and integrity of the data on which such models are trained and evolving laws and regulations governing artificial intelligence; our reliance on third parties, including contract research and contract manufacturing organizations, for the conduct of preclinical studies, clinical trials, and manufacturing; competition from other companies pursuing similar technologies or drug candidates; our ability to obtain financing for development activities and other corporate purposes; the success of our collaboration activities; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading “Risk Factors” in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements are based on management’s current estimates, projections, and assumptions and speak only as of the date of this document. Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.

Media Contact
[email protected]
Investor Contact
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Tinder Daily Active Users Returned to Year-over-Year ("Y/Y") Growth In September After More Than Three Years

Hinge Delivered Double-Digit User, Revenue, and Payer Growth Y/Y

, /PRNewswire/ -- Match Group (NASDAQ: MTCH) today announced financial results for the third quarter ended September 30, 2026.

Match Group "For the past year, we've said better user experiences will drive better business results. While there's still work ahead, Q3 provided more proof points that this strategy is working," said CEO Spencer Rascoff. "Tinder's Sparks1 and Sparks Coverage2 delivered their strongest quarterly Y/Y performance since we began tracking them, and Daily Active Users returned to Y/Y growth in September for the first time in three and a half years. The early results from Events and Group Hangouts show Tinder is building the right features, and we're doubling down on our 'Better with Friends' Roadmap to drive reconsideration. Hinge is a leader in intentional dating, and we see significant opportunities ahead in both its core and expansion markets. There is more to do, but we're delivering on the milestones we set, and our confidence is building as we head into 2027."

"We delivered against our financial expectations this quarter, while the underlying trends at Tinder continued to improve," said CFO Steve Bailey. "Our disciplined approach to capital allocation has reduced diluted shares outstanding3 by 4% Y/Y4, and 10% since the beginning of 2025. Looking ahead, we're focused on translating Tinder's improving user trends into sustainable revenue growth in 2027, while continuing to deliver strong Free Cash Flow and shareholder return to shareholders."

Dividend Declaration

Match Group's Board of Directors has declared a cash dividend of $0.20 per share of the company's common stock. The dividend is payable on January 21, 2027 to shareholders of record as of January 6, 2027.

Webcast and Prepared Remarks

A webcast of our third quarter 2026 results will be available at https://ir.mtch.com, along with our Prepared Remarks and Supplemental Financial Materials. The call will begin with brief remarks followed by a question and answer session. The webcast will begin today, November 2, 2026, at 5:00 PM Eastern Time.

About Match Group

Match Group is leading the next chapter of human connection. Our global portfolio of brands — including Tinder, Hinge, Match, Pairs, BLK, Upward, OurTime, The League, HER, Azar, and more — sparks meaningful real-world connections across cultures, communities, and every stage of life. Learn more at www.mtch.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release and our webcast, which will be held at 5:00 PM Eastern Time on November 2, 2026, may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not historical facts are "forward-looking statements." The use of words such as "anticipates," "estimates," "expects," "plans," "believes," "will," and "would," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: Match Group's future financial performance, Match Group's business prospects and strategy, anticipated trends, and other similar matters. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: failure to retain existing users or add new users, or if users do not convert to paying users; competition; risks related to our restructuring and reorganization activities; our ability to attract and retain users through cost-effective marketing efforts; our reliance on a variety of third-party platforms, in particular, mobile app stores; our ability to realize reductions in in-app purchase fees; inappropriate actions by certain of our users could be attributed to us or may not be adequately prevented by us; dependence on our key personnel; volatile global economic conditions; operational and financial risks in connection with acquisitions; impairment charges related to our intangible assets; operations in various international markets, including certain markets in which we have limited experience; foreign currency exchange rate fluctuations; challenges in measuring our user metrics and other estimates; the limited operating history of our newer brands and services makes it difficult to evaluate our current business and future prospects; impacts of climate change; the integrity of our and third parties' systems and infrastructure; cyberattacks on our systems and infrastructure and cyberattacks experienced by third parties; our ability to access, collect, and use personal data about our users; breaches or unauthorized access of personal and confidential or sensitive user information that we maintain and store; challenges with properly managing the use of artificial intelligence; risks related to credit card payments; risks related to our use of "open source" software; complex and evolving U.S., foreign, and international laws and regulations; our ability to protect our intellectual property rights or accusations that we infringe upon the intellectual property rights of others; adverse outcomes in litigation; risks related to our taxation in multiple jurisdictions; risks related to our indebtedness; and risks relating to ownership of our common stock. Certain of these and other risks and uncertainties are discussed in Match Group's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors that could also adversely affect Match Group's business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of Match Group management as of the date of this press release. Match Group does not undertake to update these forward-looking statements.

1 Sparks is the number of users engaging in six-way conversations at a brand level in a given week.

2 Sparks Coverage is the percentage of active users at a brand level who experience a Spark in a given period.

3 As defined on page 19 of Match Group's Q3 2026 Prepared Remarks.

4 As of October 31, 2026.

SOURCE Match Group

Fourth Quarter 2026 Diluted earnings per share (“EPS”) of $1.25 and Adjusted EPS of $1.61
Fiscal Year 2026 Diluted EPS of $4.02 and Adjusted EPS of $6.42

BOSTON, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE: CBT) today announced results for its fourth quarter and fiscal year 2026.

Fiscal Year Highlights

Fiscal year Diluted EPS of $4.02 and Adjusted EPS of $6.42Performance Chemicals segment EBIT of $235 million and Reinforcement Materials segment EBIT of $379 millionFiscal year 2026 Cash Flows from Operations of $421 million enabled capital investments of $207 million and the payment of $97 million in dividends and $146 million in share repurchases during the fiscal year
Battery Materials achieved $43 million of EBITDA for the fiscal year, reflecting strong performance and continued growth in the product line Fourth Quarter Highlights

Fourth Quarter Diluted EPS of $1.25 and Adjusted EPS of $1.61Performance Chemicals segment EBIT of $60 million and Reinforcement Materials segment EBIT of $87 million
Signed agreement with the U.S. Department of Energy for a $50 million grant to support expansion of domestic production of advanced conductive additives for batteries at Cabot's facilities in Louisiana and Texas (In millions, except per share amounts)Three Months EndedFiscal Year Ended 9/30/269/30/259/30/269/30/25     Net sales and other operating revenues$1,009 $899 $3,744 $3,713 Net income (loss) attributable to Cabot Corporation$66 $43 $213 $331           Net earnings (loss) per share attributable to Cabot Corporation$1.25 $0.79 $4.02 $6.02 Less: Certain items after tax per share$(0.36) $(0.91) $(2.40) $(1.23) Adjusted EPS$1.61 $1.70 $6.42 $7.25               Erica McLaughlin, Cabot President and Chief Executive Officer commented: “I am pleased by the strong execution of our teams during a fiscal year that was shaped by a difficult macroeconomic backdrop in many of our key end markets. We finished the year with a strong fourth quarter, delivering Adjusted EPS of $1.61, driven by robust performance in our Performance Chemicals segment. The segment delivered EBIT of $60 million in the quarter and $235 million for the fiscal year. Reinforcement Materials delivered segment EBIT of $87 million in the quarter and $379 million for the full year."

McLaughlin continued, "We also achieved an important milestone in our Battery Materials product line, delivering $43 million of EBITDA for fiscal 2026, a new high for the product line. Building on this momentum, we signed an agreement with the U.S. Department of Energy for a $50 million grant to support our expansion of domestic production of advanced conductive additives for batteries at our facilities in Louisiana and Texas. We expect these investments to strengthen our Battery Materials platform in North America and expand our capabilities to support growing demand for battery energy storage systems, electric vehicles, and other specialty battery applications. As I look ahead, I am excited about Cabot's prospects and our ability to build on our strong foundation in Battery Materials to drive long-term growth and shareholder value."

Fourth Quarter Financial Detail
For the fourth quarter of fiscal 2026, net income attributable to Cabot Corporation was $66 million ($1.25 per common share). Net income reflects an after-tax per share charge from certain items of $0.36, primarily related to charges for restructuring actions. Adjusted EPS for the fourth quarter of fiscal 2026 was $1.61 per share.

Segment Results

Reinforcement Materials – Fourth quarter fiscal 2026 EBIT in Reinforcement Materials decreased by $32 million compared to the fourth quarter of fiscal 2025. The decline in EBIT was primarily driven by lower gross profit per ton, which was partially offset by higher volumes. Gross profit per ton declined primarily due to the outcomes of our calendar year 2026 customer agreements and less favorable regional product mix. Volumes increased by 5% in the fourth quarter of fiscal 2026 as compared to the fourth quarter of fiscal 2025 driven by higher volumes in Asia Pacific and the Americas, including higher volumes from our capacity addition in Indonesia and our acquisition in Mexico.

Global and regional volume changes for Reinforcement Materials for the fourth quarter of fiscal 2026 as compared to the same quarter of the prior year are set forth in the table below:

 Fourth Quarter
Year-over-Year ChangeGlobal Reinforcement Materials
Volumes5%Asia Pacific10%Europe, Middle East, Africa(7%)Americas3%   Performance Chemicals – Fourth quarter fiscal 2026 EBIT in Performance Chemicals increased by $18 million compared to the fourth quarter of fiscal 2025 primarily due to higher gross profit per ton and increased volumes. The higher gross profit per ton was driven by favorable product mix and lower costs. Volumes increased in our battery materials and specialty carbons product lines in the fourth quarter of fiscal 2026 as compared to the fourth quarter of fiscal 2025.

Cash Performance – The Company ended the fourth quarter of fiscal 2026 with cash and cash equivalents of $254 million. During the fourth quarter of fiscal 2026, cash flows from operating activities were a source of $143 million. Uses of cash during the quarter included funding $10 million of higher net working capital due to higher raw material costs, $55 million in capital expenditures, $25 million for the payment of dividends and $45 million in share repurchases. We ended the fourth quarter with $1.5 billion in available liquidity and a net debt to EBITDA ratio of 1.4 times as of September 30, 2026. 

Taxes – During the fourth quarter of fiscal 2026, the Company recorded tax expense of $38 million, resulting in an effective tax rate of 34%. The provision for income taxes included non-GAAP adjustments of $3 million which is primarily related to an increase in the valuation allowance on deferred tax assets. Our operating tax rate for the full year fiscal 2026 was 29%.

Outlook
Erica McLaughlin said, “I am honored and excited to take on the role of CEO for Cabot. Having been part of Cabot for many years, I have a deep appreciation for the strength of our businesses, the quality of our people and the differentiated positions we have built across our portfolio. I am energized by the opportunity to lead the company and build on this strong foundation as we enter our next phase of growth.”

Commenting on the outlook, McLaughlin continued, “Looking ahead to fiscal 2027, we expect Adjusted EPS to be in the range of $6.15 to $6.75. We anticipate continuing to increase volumes within our key growth markets, such as battery materials and electronics, as well as with strategic customer accounts. We expect to maintain solid margins as we manage volatile energy input costs and competitive pressures. We remain focused on completing our previously announced restructuring actions, implementing optimization activities and investing in yield technology to improve the competitiveness of our network.”

“While we continue to operate in a dynamic macroeconomic environment, I am confident in the strength of our businesses and our ability to execute. We anticipate continuing to generate strong operating cash flow and maintaining our balanced capital allocation framework that supports growth investments while continuing to return cash to shareholders. In addition, we remain focused on advancing our strategic growth priorities and maintaining commercial and operational discipline to deliver long-term value for our shareholders,” McLaughlin concluded.

Earnings Call
The Company will host a conference call with industry analysts at 8:00 a.m. Eastern time on Tuesday, November 3, 2026. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com

About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed metal oxides and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com. The Company regularly posts important information on its website and encourages investors and potential investors to consult the Cabot website regularly.

Forward-Looking Statements – This earnings release contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2027, including our expectations for Adjusted EPS for fiscal 2027 , our expectations for the benefits from investments we expect to make to increase our battery materials production capacity in the U.S., our expectations for our profit margins, cash flows and capital allocation, and our expectations for future performance, growth and value creation for shareholders and our assumptions underlying those expectations are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the inherent uncertainty of management transitions and the ability of the Company to successfully execute its planned leadership transition; industry capacity utilization, shifts in the geographic area of tire production and competition from other specialty chemical companies; safety, health and environmental requirements and related constraints imposed on our business; regulatory and financial risks related to climate change developments; volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine and conflict in the Middle East; a significant adverse change in a customer relationship or the failure of a customer to perform its obligations under agreements with us; failure to achieve growth expectations from capacity additions, new products, applications and technology developments; failure to realize benefits from acquisitions, alliances, or joint ventures or achieve our portfolio management objectives; unanticipated delays in, or increased cost of, site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations, global health matters or geo-political conflicts; litigation or legal proceedings; interest rates, tax rates, currency exchange controls, tariffs and fluctuations in foreign currency rates; and the accuracy of the assumptions we used in establishing reserves for our share of liability for respirator claims. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission (“SEC”), particularly under the heading “Risk Factors” in our annual report on Form 10-K for our fiscal year ended September 30, 2025, which are filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Use of Non-GAAP Financial Measures
To supplement Cabot’s consolidated financial statements presented on a generally accepted accounting principles (“GAAP”) basis, the preceding discussion of our results and the accompanying financial tables report Adjusted EPS, Adjusted EBITDA, our operating tax rate, Free Cash Flow and Discretionary Free Cash Flow, all of which are non-GAAP financial measures. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP, and the definitions of these measures may not be comparable to those used by other companies. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow provided by (used in) operating activities, the most directly comparable GAAP financial measure, are provided in the tables titled “Cabot Corporation Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate” and “Cabot Corporation Reconciliation of Non-GAAP Financial Measures.”

Management believes these non-GAAP measures provide investors with greater transparency to the information used by Cabot management in its financial and operational decision-making, allow investors to see Cabot’s results through the eyes of management, and better enable Cabot’s investors to understand Cabot’s operating performance and financial condition.

Adjusted EPS. In calculating Adjusted EPS, we exclude from our net income (loss) attributable to Cabot Corporation items of expense and income that management does not consider representative of the Company’s business operations. Accordingly, reporting earnings on an adjusted basis supplements the GAAP measure of performance and provides additional information related to the underlying performance of the business. For example, certain of the items we exclude are items that we are required by GAAP to recognize in one period that relate to activities extending over several periods or relate to single events that management considers to be unusual and infrequent, although not necessarily non-recurring. We refer to these items as “certain items.” Management believes excluding these items facilitates operating performance comparisons from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis and evaluates the Company’s operating performance without the impact of these costs or benefits. Management also uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes.

The items of income and expense that we exclude from our calculations of Adjusted EPS but that are included in our GAAP net income (loss) per share, as applicable in a particular reporting period, include, but are not limited to, the following:

Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations.Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business.Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes.Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension planIndirect tax settlement charges, which include unfavorable charges related to the settlement of indirect taxes Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.

Adjusted EBITDA. Adjusted EBITDA reflects Income (loss) from operations before income taxes and equity in earnings of affiliated companies adjusted for certain items, interest expense, depreciation and amortization, equity in earnings of affiliated companies, and unallocated corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarters expenses, plus costs related to corporate projects and initiatives.

Free Cash Flow. To calculate “Free Cash Flow” we deduct Additions to property, plant and equipment from cash flow provided by (used in) operating activities.

Discretionary Free Cash Flow. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow provided by (used in) operating activities.

Operating Tax Rate. Our “operating tax rate” is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.

Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.

Explanation of Terms Used

Product Mix. The term “product mix” refers to the mix of types and grades of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business or segment.

Net Working Capital. The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses.

        Fourth Quarter Earnings Announcement, Fiscal 2026
                CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
                Periods ended September 30Three MonthsTwelve MonthsDollars in millions, except per share amounts (unaudited)2026
 2025
 2026
 2025
        Net sales and other operating revenues$1,009  $899  $3,744  $3,713 Cost of sales 805   679   2,935   2,773 Gross profit 204   220   809   940 Selling and administrative expenses 69   68   278   260 Research and technical expenses 14   15   54   59 Income (loss) from operations 121   137   477   621 Interest and dividend income 7   7   29   27 Interest expense (21)  (20)  (75)  (76)Other income (expense) 3   (9)  (25)  (7)Income (loss) from operations before income taxes and equity in earnings of affiliated companies
 110   115   406   565 (Provision) benefit for income taxes (38)  (63)  (165)  (196)Equity in earnings of affiliated companies, net of tax 1   2   6   7 Net income (loss) 73   54   247   376 Net income (loss) attributable to noncontrolling interests, net of tax 7   11   34   45 Net income (loss) attributable to Cabot Corporation$66  $43  $213  $331         Weighted-average common shares outstanding       Basic 51.5   53.1   51.9   53.7 Diluted 51.9   53.4   52.2   54.2         Earnings (loss) per common share:       Basic$1.26  $0.79  $4.04  $6.07 Diluted$1.25  $0.79  $4.02  $6.02                  Fourth Quarter Earnings Announcement, Fiscal 2026
                  CABOT CORPORATION SUMMARY RESULTS BY SEGMENT
                  Periods ended September 30Three Months Twelve MonthsDollars in millions, except per share amounts (unaudited)2026
 2025
 2026
 2025
Sales       Reinforcement Materials$634  $563  $2,297  $2,341 Performance Chemicals 340   308   1,319   1,250 Segment sales 974   871   3,616   3,591 Unallocated and other (A) 35   28   128   122 Net sales and other operating revenues$1,009  $899  $3,744  $3,713          Segment Earnings Before Interest and Taxes (B)       Reinforcement Materials$87  $119  $379  $508 Performance Chemicals 60   42   235   194          Unallocated and Other       Interest expense (21)  (20)  (75)  (76)Certain items (C) (15)  (17)  (109)  (30)Unallocated corporate costs (13)  (13)  (54)  (52)General unallocated income (expense) (D) 13   6   36   28 Less: Equity in earnings of affiliated companies, net of tax 1   2   6   7 Income (loss) from operations before income taxes and equity in earnings of affiliated companies 110   115   406   565 (Provision) benefit for income taxes (including tax certain items) (38)  (63)  (165)  (196)Equity in earnings of affiliated companies, net of tax 1   2   6   7 Net income (loss)  73   54   247   376 Net income (loss) attributable to noncontrolling interests, net of tax 7   11   34   45 Net income (loss) attributable to Cabot Corporation$66  $43  $213  $331          Diluted earnings (loss) per share of common stock attributable to Cabot Corporation$1.25  $0.79  $4.02  $6.02          Adjusted earnings (loss) per share (E)$1.61  $1.70  $6.42  $7.25          Diluted weighted average common shares outstanding 51.9   53.4   52.2   54.2          (A)Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable.  (B)Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable.  (C)Details of Certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.  (D)General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items.  (E)Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.    Fourth Quarter Earnings Announcement, Fiscal 2026           CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION           September 30, September 30,Dollars in millions (unaudited)2026 2025    Current assets:   Cash and cash equivalents$254  $258 Accounts and notes receivable, net of reserve for doubtful accounts of $5 and $5 801   671 Inventories:   Raw materials 161   134 Finished goods 354   303 Other 69   67 Total inventories 584   504 Prepaid expenses and other current assets 107   106 Total current assets 1,746   1,539     Property, plant and equipment 4,588   4,405 Accumulated Depreciation (2,874)  (2,694)Net property, plant and equipment 1,714   1,711 Goodwill 138   134 Equity affiliates 20   16 Intangible assets, net 50   55 Deferred income taxes 165   180 Other assets 195   180 Total assets$4,028  $3,815      Fourth Quarter Earnings Announcement, Fiscal 2026           CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION           September 30, September 30,Dollars in millions, except share and per share amounts (unaudited)2026 2025    Current liabilities:   Short-term borrowings$65  $14 Accounts payable and accrued liabilities 716   648 Income taxes payable 21   35 Current portion of long-term debt 7   260 Total current liabilities 809   957     Long-term debt 1,180   856 Deferred income taxes 32   39 Other liabilities 236   258 Stockholders' equity:   Preferred stock:   Authorized: 2,000,000 shares of $1 par value   Issued and Outstanding: None and none —   — Common stock:   Authorized: 200,000,000 shares of $1 par value Issued: 51,445,245 and 52,962,353 shares Outstanding: 51,338,798 and 52,842,481 shares 51   53 Less cost of 106,447 and 119,872 shares of common treasury stock (2)  (3)Additional paid-in capital —   — Retained earnings 1,837   1,835 Accumulated other comprehensive income (loss) (251)  (335)Total Cabot Corporation stockholders' equity 1,635   1,550 Noncontrolling interests 136   155 Total stockholders' equity 1,771   1,705 Total liabilities and stockholders' equity$4,028  $3,815      Fourth Quarter Earnings Announcement, Fiscal 2026                            CABOT CORPORATION QUARTERLY RESULTS BY SEGMENT                       Fiscal 2025 Fiscal 2026Dollars in millions,           except per share amounts (unaudited)Dec. QMar. QJune QSept. QFY Dec. QMar. QJune QSept. QFY              Sales           Reinforcement Materials$611 $594 $573 $563 $2,341  $520 $544 $599 $634 $2,297 Performance Chemicals 311  311  320  308  1,250   300  328  351  340  1,319 Segment sales 922  905  893  871  3,591   820  872  950  974  3,616 Unallocated and other (A) 33  31  30  28  122   29  32  32  35  128 Net sales and other operating revenues$955 $936 $923 $899 $3,713  $849 $904 $982 $1,009 $3,744               Segment Earnings Before Interest and Taxes (B)           Reinforcement Materials$130 $131 $128 $119 $508  $102 $93 $97 $87 $379 Performance Chemicals 45  50  57  42  194   48  59  68  60  235 Unallocated and Other           Interest expense (18) (19) (19) (20) (76)  (18) (18) (18) (21) (75)Certain items (C) (6) (4) (3) (17) (30)  (7) (9) (78) (15) (109)Unallocated corporate costs (13) (13) (13) (13) (52)  (12) (15) (14) (13) (54)General unallocated income (expense) (D) 7  9  6  6  28   6  12  5  13  36 Less: Equity in earnings of affiliated companies, net of tax 1  3  1  2  7   1  2  2  1  6                         Income (loss) from operations before income taxes and equity in earnings of affiliated companies 144  151  155  115  565   118  120  58  110  406 (Provision) benefit for income taxes (including tax certain items) (41) (49) (43) (63) (196)  (37) (44) (46) (38) (165)Equity in earnings of affiliated companies, net of tax 1  3  1  2  7   1  2  2  1  6 Net income (loss) 104  105  113  54  376   82  78  14  73  247 Net income (loss) attributable to noncontrolling interests, net of tax 11  11  12  11  45   9  10  8  7  34 Net income (loss) attributable to Cabot Corporation$93 $94 $101 $43 $331  $73 $68 $6 $66 $213 Diluted earnings (loss) per share of common stock attributable to Cabot Corporation$1.67 $1.69 $1.86 $0.79 $6.02  $1.37 $1.27 $0.12 $1.25 $4.02 Adjusted earnings (loss) per share (E)$1.76 $1.90 $1.90 $1.70 $7.25  $1.53 $1.61 $1.67 $1.61 $6.42 Diluted weighted average common shares outstanding 55.0  54.4  53.8  53.4  54.2   52.9  52.2  52.0  51.9  52.2               (A) Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable.(B) Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable.(C) Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.(D) General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items.(E) Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.               Fourth Quarter Earnings Announcement, Fiscal 2026                        CABOT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                        Periods ended September 30Three Months   Twelve Months  Dollars in millions (unaudited)2026 2025 2026 2025            Cash Flows from Operating Activities:           Net income (loss)$73  $54  $247  $376 Adjustments to reconcile net income to cash provided by operating activities:           Depreciation and amortization51  40  191  154 Other non-cash charges (gains), net24  35  98  73 Cash dividends received from equity affiliates—  —  2  13 Changes in assets and liabilities:           Changes in net working capital (A)(10) 69  (68) 56 Changes in other assets and liabilities, net5  21  (49) (7)            Cash provided by (used in) operating activities143  219  421  665             Cash Flows from Investing Activities:

           Additions to property, plant and equipment(55) (64) (207) (274)Acquisition of business, net of cash acquired—  —  (66) — Asset acquisition—  —  —  (27)Other investing activities, net(6) 5  (4) 3             Cash provided by (used in) investing activities(61) (59) (277) (298)            Cash Flows from Financing Activities:

           Change in debt, net(21) (88) 111  (23)Cash dividends paid to common stockholders(25) (25) (97) (96)Other financing activities, net(32) (33) (180) (217)            Cash provided by (used in) financing activities(78) (146) (166) (336)Effect of exchange rate changes on cash—  5  19  4 Increase (decrease) in cash, cash equivalents and restricted cash4  19  (3) 35 Cash, cash equivalents and restricted cash at beginning of period251  239  258  223 Cash, cash equivalents and restricted cash at end of period (B)$255  $258  $255  $258  (A)Includes Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities.(B)Restricted cash was $1 million as of September 30, 2026. There was no restricted cash as of September 30, 2025.    Fourth Quarter Earnings Announcement, Fiscal 2026              CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS AND OPERATING TAX RATE              TABLE 1: DETAIL OF CERTAIN ITEMSPeriods ended September 30Three MonthsTwelve Months  Dollars in millions, except per share amounts (unaudited)2026202520262025  Certain items before and after income taxes      Global restructuring activities$(15)$(5)$(72)$(11)  Employee benefit plan settlement and other charges —  (3) (30) (3)  Legal and environmental matters and reserves —  (1) (5) (7)  Acquisition and integration-related charges —  (1) (2) (1)  Indirect tax settlement charges —  (7) —  (7)  Other certain items —  —  —  (1)  Total certain items, pre-tax (15) (17) (109) (30)  Non-GAAP adjustments(A) (3) (32) (17) (38)         Total certain items after tax$(18)$(49)$(126)$(68)  Total certain items after tax per share$(0.36)$(0.91)$(2.40)$(1.23)         TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEMPeriods ended September 30Three MonthsTwelve Months  Dollars in millions, Pre-Tax (unaudited)2026202520262025  Statement of Operations Line Item (C)      Cost of sales$(13)$(3)$(72)$(13)  Selling and administrative expenses (2) (3) (7) (4)  Research and technical expenses —  (1) —  (2)  Other income (expense) —  (10) (30) (11)  Total certain items$(15)$(17)$(109)$(30)         TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATEThree months ended September 3020262025  Dollars in millions (unaudited)(Provision) / Benefit for Income TaxesRate(Provision) / Benefit for Income TaxesRate  Effective Tax Rate$(38) 34%$(63) 55%  Less: Non-GAAP tax adjustments(B) (3)  (30)   Operating tax rate (D) (E)$(35) 28%$(33) 25%         Twelve months ended September 3020262025  Dollars in millions (unaudited)(Provision) / Benefit for Income TaxesRate(Provision) / Benefit for Income TaxesRate         Effective Tax Rate$(165) 41%$(196) 35%  Less: Non-GAAP tax adjustments(B) (17)  (36)   Operating tax rate (D) (E)$(148) 29%$(160) 27%                TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FOR FISCAL 2026 and FISCAL 2025     Fiscal 2026 (F)Periods ended (unaudited)Dec. QMar. QJune QSept. Q FY 2026Reconciliation of Adjusted EPS to GAAP EPS      Net income (loss) per share attributable to Cabot Corporation$1.37 $1.27 $0.12 $1.25  $4.02 Less: Certain items after tax per share (0.16) (0.34) (1.55) (0.36) $(2.40)Adjusted earnings (loss) per share$1.53 $1.61 $1.67 $1.61  $6.42         Fiscal 2025 (F)Periods ended (unaudited)Dec. QMar. QJune QSept. Q FY 2025Reconciliation of Adjusted EPS to GAAP EPS      Net income (loss) per share attributable to Cabot Corporation$1.67 $1.69 $1.86 $0.79  $6.02 Less: Certain items after tax per share (0.09) (0.21) (0.04) (0.91)  (1.23)Adjusted earnings (loss) per share$1.76 $1.90 $1.90 $1.70  $7.25  (A)Non-GAAP adjustments includes Non-GAAP tax adjustments, which are described in (B) below, and in fiscal 2025 an adjustment to the historical earnings allocated to a noncontrolling interest partner, which is included in Net income (loss) attributable to noncontrolling interests, net of tax in the Consolidated Statement of Operations.(B)Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions.(C)This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations.(D)The operating tax rate is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions.(E)Our operating tax rate for fiscal 2027 is expected to be in the range of 28% to 30%.(F)Per share amounts are calculated after tax.   Fourth Quarter Earnings Announcement, Fiscal 2026                CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES                   Fiscal 2026 (A)   Dec. QMar. QJune QSept. QFY 2026Reconciliation of Adjusted EPS to GAAP EPS     Net income (loss) per share attributable to Cabot Corporation$1.37 $1.27 $0.12 $1.25 $4.02 Less: Certain items after tax per share (0.16) (0.34) (1.55) (0.36) (2.40)Adjusted earnings (loss) per share$1.53 $1.61 $1.67 $1.61 $6.42            Fiscal 2025 (A)   Dec. QMar. QJune QSept. QFY 2025Reconciliation of Adjusted EPS to GAAP EPS     Net income (loss) per share attributable to Cabot Corporation$1.67 $1.69 $1.86 $0.79 $6.02 Less: Certain items after tax per share (0.09) (0.21) (0.04) (0.91) (1.23)Adjusted earnings (loss) per share$1.76 $1.90 $1.90 $1.70 $7.25          (A)Per share amounts are calculated after tax.        Dollars in millionsFiscal 2026   Dec. QMar. QJune QSept. QFY 2026Reconciliation of Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies     Income (loss) from operations before income taxes and equity in earnings of affiliated companies$ 118 $ 120 $ 58 $ 110 $ 406 Interest expense 18  18  18  21  75 Certain items 7  9  78  15  109 General unallocated (income) expense (6) (12) (5) (13) (36)Less: Equity in earnings of affiliated companies (1) (2) (2) (1) (6)Depreciation and amortization 41  44  43  47  175 Adjusted EBITDA$ 179 $ 181 $ 194 $ 181 $ 735         Dollars in millionsDec. QMar. QJune QSept. QFY 2026Reinforcement Materials EBIT$ 102 $ 93 $ 97 $ 87 $ 379 Reinforcement Materials Depreciation and amortization 19  21  20  24  84 Reinforcement Materials EBITDA$ 121 $ 114 $ 117 $ 111 $ 463 Reinforcement Materials Sales$520 $544 $599 $634 $2,297 Reinforcement Materials EBITDA Margin 23% 21% 20% 18% 20%        Dollars in millionsDec. QMar. QJune QSept. QFY 2026Performance Chemicals EBIT$ 48 $ 59 $ 68 $ 60 $ 235 Performance Chemicals Depreciation and amortization 22  23  23  23  91 Performance Chemicals EBITDA$ 70 $ 82 $ 91 $ 83 $ 326 Performance Chemicals Sales$300 $328 $351 $340 $1,319 Performance Chemicals EBITDA Margin 23% 25% 26% 24% 25%        Dollars in millionsFiscal 2026Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activitiesDec. QMar. QJune QSept. QFY 2026Cash provided by (used in) operating activities (B)$ 126 $ 77 $ 75 $ 143 $ 421 Less: Additions to property, plant and equipment 69  45  38  55  207 Free cash flow$ 57 $ 32 $ 37 $ 88 $ 214 Plus: Additions to property, plant and equipment 69  45  38  55  207 Less: Changes in net working capital (C) 5  (19) (44) (10) (68)Less: Sustaining and compliance capital expenditures 50  33  28  36  147 Discretionary free cash flow$ 71 $ 63 $ 91 $ 117 $ 342          (B)As provided in the Condensed Consolidated Statements of Cash Flows. (C)Defined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows.        

Key Takeaways Entergy reported Q3 earnings of $1.98 per share, beating estimates by 15.8% and rising 29.4% year over year.Revenues climbed 14.5% to $4.37B, supported by higher electricity demand and 7.4% growth in retail sales.Entergy narrowed 2026 guidance and maintained its target of over 8% annual earnings growth through 2030.
Entergy Corporation (ETR - Free Report) reported third-quarter 2026 earnings of $1.98 per share, which beat the Zacks Consensus Estimate of $1.71 by 15.8%. The bottom line increased 29.4% from the year-ago quarter's figure of $1.53.

ETR’s Total RevenuesRevenues rose 14.5% year over year to $4.37 billion and surpassed the consensus mark of $4.16 billion by 5.1%. Results benefited from higher electricity demand, favorable weather and regulatory rate actions. Weather-adjusted retail electricity sales increased 4.5%, supported by residential and industrial demand.

Entergy’s Segmental PerformanceThe Utility business generated earnings of $1.08 billion, up from $810 million in the prior-year quarter. Earnings increased to $2.28 per share from $1.79, reflecting higher electricity sales, regulatory recoveries and additional income from utility investments.

The Parent & Other segment reported a loss of $139 million, wider than the $117 million loss recorded a year earlier. The loss per share increased to 29 cents from 26 cents, primarily due to higher interest expenses. Consolidated results also reflected a higher diluted average share count of 474 million compared with 454 million last year.

Entergy's Retail Sales Gain Across Key Customer ClassesTotal retail electricity sales increased 7.4% year over year to 39,864 gigawatt-hours (GWh). Residential sales rose 12.6% to 13,163 GWh, while commercial sales increased 5.6% to 8,973 GWh.

Industrial electricity sales climbed 4.9% to 17,055 GWh, driven by higher demand from data center and primary metals customers. On a weather-adjusted basis, residential and commercial sales improved 6.1% and 1.9%, respectively. Total electricity sales, including wholesale volumes, increased 5.3% to 43,392 GWh.

Entergy Faces Higher Operating and Financing CostsHigher utility operating and maintenance expenses reduced quarterly earnings by 10 cents per share. The increase reflected higher power delivery costs, particularly vegetation maintenance spending, and additional power generation expenses associated with maintenance activities and plant outages.

Utility interest expenses lowered earnings by 13 cents per share due to higher debt balances, increased average interest rates and carrying costs on customer advances. Higher depreciation and amortization expenses also pressured earnings, reflecting additional utility assets placed into service and increased depreciation rates.

Entergy’s Financial HighlightsAs of Sept. 30, 2026, Entergy had cash and cash equivalents of $4.21 billion compared with $1.52 billion a year earlier. Total debt was $34.94 billion compared with $30.56 billion at the end of September 2025.

Third-quarter operating cash flow increased to $2.24 billion from $2.14 billion a year earlier.

Entergy Narrows 2026 Earnings GuidanceEntergy narrowed its 2026 adjusted earnings guidance to $4.35-$4.45 per share from its earlier projection of $4.25-$4.45. The Zacks Consensus Estimate for 2026 earnings is pinned at $4.40 per share, in line with the midpoint of the company’s guided range.

Management reaffirmed its longer-term adjusted earnings outlook, projecting $4.90-$5.20 per share in 2027, $5.55-$5.85 in 2028, $6.25-$6.55 in 2029 and $7.05-$7.35 in 2030. The company continues to target annual adjusted earnings growth exceeding 8% through 2030.

Entergy also outlined a $55 billion capital investment plan for 2027-2030, alongside a $5.2 billion equity financing plan.

ETR's Zacks RankETR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility ReleasesEdison International (EIX - Free Report) reported third-quarter 2026 core earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.83 by 4.9%. However, the bottom line declined 17.9% from $2.34 in the year-ago quarter.

EIX’s operating revenues totaled $4.89 billion, missing the Zacks Consensus Estimate of $5.53 billion by 11.7%. The top line also declined 15% from the year-ago quarter's figure of $5.75 billion.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2026 adjusted earnings of $1.44 per share, which surpassed the Zacks Consensus Estimate of $1.34 by 7.5%. The bottom line increased 54.8% from 93 cents in the year-ago quarter.

Operating revenues totaled $2.183 billion, which beat the Zacks Consensus Estimate of $2.178 billion by 0.2%. The top line also rose 8% from $2.02 billion in the prior-year quarter.

CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2026 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 50 cents by 6%. The bottom line also increased 6% from the year-ago quarter’s figure of 50 cents.

CNP generated revenues of $2.19 billion, which beat the Zacks Consensus Estimate by 1.9%. The top line also came in 10.2% higher than the year-ago quarter’s reported figure of $1.99 billion.

On its third quarter of 2026 earnings call, held on Nov. 2, 2026, Entergy (ETR -0.22%) raised the lower bound of its 2026 adjusted earnings guidance by $0.10 per share. Network expansion to supply large technological investments provides long-term growth while protecting utility rates for existing residents. Three key takeaways from management explain how the strategy unfolds.

1. Data Center Expansion Lowers Customer Utility RatesLarge technology contracts require significant infrastructure, but ratepayer protection agreements ensure hyperscalers (large-scale cloud and technology providers) cover system costs and reduce bills for local residents.

Expansion will create incremental bill benefits for our Arkansas customers, increasing Entergy Arkansas's expected fair share plus customer bill savings by at least $500 million and bringing the total to at least $7.5 billion across Entergy's utility companies.
-- Andrew S. Marsh, Chair and Chief Executive Officer2. Standardized Plant Design Cuts Engineering Schedules by HalfDeploying uniform facility blueprints across construction projects limits engineering overhead and protects completion timelines against rising labor costs.

In addition, our standardized design has allowed us to improve efficiency and schedule, through a roughly 50% reduction in the time required for engineering, which helps mitigate exposure to rising labor costs.
-- Andrew S. Marsh, Chair and Chief Executive Officer3. Higher Capital Spending Pushes Earnings Toward Upper Guidance LimitsAdding $1.5 billion in network capital investments through 2030 supports growing power demand from industrial users and positions earnings near the top of long-term forecasts.

In total, we increased capital approximately $1.5 billion from 2026 through 2030, inclusive of the investments to support the Google expansion. ... The expected earnings impact from this increase moves us into the upper end of our outlook ranges.
-- Kimberly A. Fontan, Chief Financial OfficerLooking AheadIndustrial power demand accelerates across the Gulf Coast, driven by data centers and heavy manufacturing. Vertical integration (owning generation, transmission, and distribution assets) plus standardized designs give the utility structural advantages during capacity expansion. Management tracks commercial execution across its pipeline.

We see these projects as having the potential to convert into signed agreements within the next 24 months.
-- Andrew S. Marsh, Chair and Chief Executive OfficerNontraditional financing structures and customer cost-sharing agreements support capital projects without straining the balance sheet.

We have clear line of sight to achieve our outlooks, and we have significant opportunities before us.
-- Kimberly A. Fontan, Chief Financial OfficerThe Motley Fool has positions in and recommends Entergy. The Motley Fool has a disclosure policy.

New York, New York--(Newsfile Corp. - November 2, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of AppLovin Corporation (NASDAQ: APP) between February 12, 2026 and August 5, 2026, inclusive (the "Class Period"), of the important November 16, 2026 lead plaintiff deadline.

SO WHAT: If you purchased AppLovin securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the AppLovin class action, go to https://rosenlegal.com/cases/applovin-corporation-2026/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than November 16, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the generative AI video creative feature for AppLovin's AppLovin Ads platform was subject to significant development delays, making its release on AppLovin's timeline unlikely; (2) defendants overstated the constancy with which AppLovin was improving its AI models; (3) for these reasons, among others, AppLovin had significantly overstated the benefits and reliability of the purportedly "virtuous cycle" and "compounding" value proposition that its AI models provided to customers and to AppLovin; and (4) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the AppLovin class action, go to https://rosenlegal.com/cases/applovin-corporation-2026/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322153

Source: The Rosen Law Firm PA

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As the energy transition accelerates, choosing the right utility exposure is critical for long-term growth. Constellation Energy (CEG -1.96%) and NextEra Energy (NEE +1.58%) offer two distinct paths into the future of power.

Constellation Energy focuses on clean generation through its massive nuclear fleet, while NextEra Energy combines a regulated Florida utility with a massive renewable energy development business. Both companies are essential players in the shift toward decarbonization, but they carry different risk profiles and growth drivers.

The case for Constellation EnergyConstellation Energy operates as a leader in carbon-free power, managing the largest private-sector nuclear fleet in the United States. The company provides electricity to roughly 2.5 million customers, including approximately three-fourths of the Fortune 100 companies. Notable recent agreements include a 20-year power purchase agreement with Microsoft (MSFT -2.83%) and a deal with Meta to power data centers with emissions-free nuclear energy.

In FY 2025, the company reported revenue of nearly $25.5 billion, representing growth of approximately 8.3% compared to the previous year. Net income reached close to $2.3 billion during the same period, indicating a net margin of roughly 9.1%. This performance followed a year where net margin was higher, showing how fluctuations in energy prices and operational costs can impact bottom-line results.

As of its December 2025 balance sheet, the company maintains a electric utility stocks profile with a debt-to-equity ratio of approximately 0.6x. This metric, which measures total debt against shareholder equity, suggests a conservative approach to leverage. The current ratio stands at nearly 1.5x, showing the company has sufficient short-term assets to cover its liabilities, while free cash flow reached roughly $1.3 billion after subtracting capital expenditures from operating cash.

The case for NextEra EnergyNextEra Energy operates as a dual-threat utility, housing both Florida Power & Light and NextEra Energy Resources. Florida Power & Light serves more than six million customer accounts across Florida, while the Resources segment focuses on wind and solar generation for wholesale markets. This structure allows the company to benefit from a stable regulated customer base while pursuing aggressive growth in the clean energy sector.

During FY 2025, the company generated revenue of approximately $27.5 billion, which was an increase of nearly 11% over the prior year. Net income for the period reached close to $6.8 billion, resulting in a net margin of roughly 24.9%. The company has consistently maintained high net margin levels compared to many peers due to its large-scale operations and efficient generation assets.

As of its December 2025 balance sheet, the company carries a debt-to-equity ratio of nearly 1.8x, reflecting the capital-intensive nature of building massive renewable energy projects. The current ratio is roughly 0.6x, indicating that current liabilities exceed current assets at this point in time.

Risk profile comparisonConstellation Energy faces risks related to commodity price volatility for fuel and unhedged power generation, which can cause significant fluctuations in earnings. Operational risks are also a major factor, as managing a nuclear fleet involves complex outage schedules and strict regulatory requirements for waste storage. Furthermore, the company must successfully integrate the Calpine acquisition without losing key personnel or facing unexpected liabilities.

NextEra Energy is subject to extensive federal and state regulation, particularly from the Florida Public Service Commission and the Federal Energy Regulatory Commission. The company is highly vulnerable to weather-related impacts, such as hurricanes, which can disrupt the Florida grid and increase maintenance costs. Additionally, NextEra Energy faces litigation risks including shareholder derivative actions and challenges related to its reliance on clean energy tax credits.

Valuation comparisonNextEra Energy appears slightly more affordable based on earnings estimates, while Constellation Energy offers a lower entry point based on trailing sales.

MetricConstellation EnergyNextEra EnergyForward P/E21.6x20.8xP/S ratio3.0x6.0xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

In the table above, the Forward P/E compares the stock price to future earnings estimates for the next year. The P/S ratio measures the stock price against sales over the past twelve months.

Which stock would I buy for 2027?I'd go with Constellation Energy, though I'll admit this one is a close call. NextEra is a strong business, but Constellation owns the nuclear fleet that supplies the around-the-clock, carbon-free power data centers want, and customers are signing long-term agreements to get it.

In Q2 2026, Constellation beat earnings estimates and raised its full-year outlook, while locking in more power contracts running 15 to 20 years. Analysts expect double-digit earnings growth when it reports Q3 on Nov. 9.

NextEra has earned its place in more than a few long-term portfolios for good reason. In Q3 2026, adjusted earnings rose nearly 10% and its backlog of new renewable and storage projects kept growing. But challenges remain: Revenue missed estimates again, and growth depends on heavy capital spending.

For investors thinking in years rather than quarters, owning the plants that deliver power around the clock is a direct way to benefit as AI data centers multiply. Demand for reliable electricity keeps climbing, and Constellation already owns plenty of it.

Third Quarter Highlights

Third quarter 2026 net loss attributable to Huntsman of $18 million compared to a net loss of $25 million in the prior year period; third quarter 2026 diluted loss per share of $0.10 compared to diluted loss per share of $0.14 in the prior year period.Third quarter 2026 adjusted net income attributable to Huntsman of $7 million compared to adjusted net loss of $5 million in the prior year period; third quarter 2026 adjusted diluted income per share of $0.04 compared to adjusted diluted loss per share of $0.03 in the prior year period.Third quarter 2026 adjusted EBITDA of $132 million compared to $94 million in the prior year period.Third quarter 2026 net cash provided by operating activities from continuing operations was $115 million. Free cash flow was $82 million for the third quarter 2026 compared to $157 million in the prior year period.On August 25, 2026, Huntsman shareholders approved the merger of equals with Olin Corporation. Once the merger is completed, the combined OlinHuntsman will trade under a new ticker, NYSE: OHN.

Three months ended

Nine months ended

September 30,

September 30,

In millions, except per share amounts

2026

2025

2026

2025

Revenues

$     1,717

$     1,460

$     4,800

$     4,328

Net loss attributable to Huntsman Corporation

$         (18)

$        (25)

$        (77)

$      (188)

Adjusted net income (loss)(1)

$            7

$          (5)

$        (28)

$        (58)

Diluted loss per share

$      (0.10)

$     (0.14)

$     (0.44)

$     (1.09)

Adjusted diluted income (loss) per share(1)

$       0.04

$     (0.03)

$     (0.16)

$     (0.34)

Adjusted EBITDA(1)

$        132

$         94

$        325

$        240

Net cash provided by operating activities from continuing operations

$        115

$        200

$            2

$        221

Free cash flow(2)

$          82

$        157

$        (99)

$        105

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

, /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today reported third quarter 2026 results with revenues of $1,717 million, net loss attributable to Huntsman of $18 million, adjusted net income attributable to Huntsman of $7 million and adjusted EBITDA of $132 million. 

Peter R. Huntsman, Chairman, President, and CEO, commented:

"Our Company continues to perform solidly despite significant macroeconomic and industry challenges. Year-over-year improvement was driven by higher volumes, stronger margins, and cost savings. Better results and cash flow are expected to reduce net debt leverage to approximately 4 times by year-end, a significant improvement from the beginning of the year. These gains reflect our associates' hard work and disciplined execution to grow volumes, lower costs, and generate cash.

"Our planned merger of equals with Olin Corporation reached several milestones during the quarter, including shareholder approval on August 25, 2026, and regulatory clearance in multiple jurisdictions, including the United States in September. We continue to work with the remaining jurisdictions to secure the approvals needed to complete the merger, which we now expect to close in the first quarter of 2027. We are excited about the benefits the merger will bring to both companies' shareholders."

Segment Analysis for 3Q26 Compared to 3Q25

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended September 30, 2026 compared to the same period of 2025 was primarily due to higher average selling prices and higher sales volumes. MDI average selling prices increased across all three regions due to improved supply and demand dynamics and higher raw materials costs. MDI sales volumes increased in the Americas and Europe regions. The increase in segment adjusted EBITDA was primarily due to higher average selling prices, higher sales volumes, higher equity earnings from our minority-owned joint venture in China and cost savings achieved from our cost optimization program, partially offset by higher raw materials costs.

Performance Products

The increase in revenues in our Performance Products segment for the three months ended September 30, 2026 compared to the same period of 2025 was primarily due to higher average selling prices. Average selling prices increased primarily due to higher raw materials and logistics costs and favorable sales mix. Sales volumes remained relatively unchanged. The increase in segment adjusted EBITDA was primarily due to higher average selling prices and improved margins.

Advanced Materials

The increase in revenues in our Advanced Materials segment for the three months ended September 30, 2026 compared to the same period of 2025 was primarily due to higher sales volumes and higher average selling prices. Sales volumes increased primarily in our aerospace, automotive and power markets. Average selling prices increased primarily due to favorable sales mix. The increase in segment adjusted EBITDA was primarily due to higher sales volumes.

Liquidity and Capital Resources

During the three months ended September 30, 2026, our free cash flow was $82 million as compared to $157 million in the same period of 2025. As of September 30, 2026, we had approximately $0.9 billion of combined cash and unused borrowing capacity.

During the three months ended September 30, 2026, we spent $33 million on capital expenditures as compared to $43 million in the same period of 2025. During 2026, we expect capital expenditures to be approximately $160 million.

Income Taxes

In the third quarter of 2026, our effective tax rate was 108% and our adjusted effective tax rate was 56%.

Earnings Conference Call Information

We will hold a conference call to discuss our third quarter 2026 financial results on Tuesday, November 3, 2026, at 9:00 a.m. ET.

Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=oRyBrBjV

Participant dial-in numbers:
Domestic callers:                    (877) 402-8037
International callers:               (201) 378-4913

The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.

Upcoming Conferences

During the fourth quarter 2026, a member of management is expected to present at:
Morgan Stanley Global Chemicals & Agriculture Conference, November 10, 2026
RBC Global Industrials Conference, November 17, 2026
Citi's Basic Materials Conference, December 1, 2026
Bank of America Leveraged Finance Conference, December 2, 2026

A webcast of the presentation, if applicable, along with accompanying materials will be available at www.huntsman.com/investors.

Table 1 -- Results of Operations

Three months ended

Nine months ended

September 30,

September 30,

In millions, except per share amounts

2026

2025

2026

2025

Revenues

$     1,717

$     1,460

$     4,800

$     4,328

Cost of goods sold

1,480

1,256

4,135

3,741

Gross profit

237

204

665

587

Operating expenses:

Selling, general and administrative

168

163

514

489

Research and development

27

29

84

94

Restructuring, impairment and plant closing costs

4

12

19

137

Gain on sale of Gomet business, net

-

-

(22)

-

Gain on acquisition of assets, net

-

-

-

(5)

Income associated with litigation matter, net

-

-

-

(33)

Other operating (income) expense, net

(1)

(6)

10

(23)

Total operating expenses

198

198

605

659

Operating income (loss)

39

6

60

(72)

Interest expense, net

(23)

(20)

(67)

(60)

Equity in income of investment in unconsolidated affiliates

7

1

17

-

Other income, net

3

6

13

13

Income (loss) from continuing operations before income taxes

26

(7)

23

(119)

Income tax expense

(28)

(3)

(56)

(25)

Loss from continuing operations

(2)

(10)

(33)

(144)

Loss from discontinued operations, net of tax

(3)

(1)

(6)

(1)

Net loss

(5)

(11)

(39)

(145)

Net income attributable to noncontrolling interests

(13)

(14)

(38)

(43)

Net loss attributable to Huntsman Corporation

$        (18)

$        (25)

$        (77)

$      (188)

Adjusted EBITDA(1)

$        132

$          94

$        325

$        240

Adjusted net income (loss)(1)

$            7

$          (5)

$        (28)

$        (58)

Basic loss per share

$     (0.10)

$     (0.14)

$     (0.44)

$     (1.09)

Diluted loss per share

$     (0.10)

$     (0.14)

$     (0.44)

$     (1.09)

Adjusted diluted income (loss) per share(1)

$       0.04

$     (0.03)

$     (0.16)

$     (0.34)

Common share information:

Basic weighted average shares

173

173

173

173

Diluted weighted average shares

173

173

173

173

Diluted shares for adjusted diluted income (loss) per share

174

173

173

173

See end of press release for footnote explanations.

Table 2 -- Results of Operations by Segment

Three months ended

Nine months ended

September 30,

Better /

September 30,

Better /

In millions

2026

2025

(worse)

2026

2025

(worse)

Segment revenues:

Polyurethanes

$     1,152

$        956

21 %

$     3,154

$     2,800

13 %

Performance Products

260

246

6 %

771

773

(0 %)

Advanced Materials

314

265

18 %

906

778

16 %

Total reportable segments' revenues

1,726

1,467

18 %

4,831

4,351

11 %

Intersegment eliminations

(9)

(7)

N/M

(31)

(23)

N/M

Total revenues

$     1,717

$     1,460

18 %

$     4,800

$     4,328

11 %

Segment adjusted EBITDA(1):

Polyurethanes

$          75

$          48

56 %

$        180

$        121

49 %

Performance Products

31

29

7 %

94

91

3 %

Advanced Materials

62

44

41 %

171

125

37 %

N/M = not meaningful

See end of press release for footnote explanations.

Table 3 -- Factors Impacting Sales Revenue

Three months ended

September 30, 2026 vs. 2025

Average selling price(a)

Local

Exchange

Sales

currency & mix

rate

volume(b)

Total

Polyurethanes

19 %

0 %

2 %

21 %

Performance Products

7 %

0 %

(1 %)

6 %

Advanced Materials

6 %

0 %

12 %

18 %

Combined segments

15 %

0 %

3 %

18 %

Nine months ended

September 30, 2026 vs. 2025

Average selling price(a)

Local

Exchange

Sales

currency & mix

rate

volume(b)

Total

Polyurethanes

8 %

2 %

3 %

13 %

Performance Products

1 %

1 %

(2 %)

0 %

Advanced Materials

6 %

3 %

7 %

16 %

Combined segments

6 %

2 %

3 %

11 %

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures

 Income tax 

 Net 

 Diluted (loss) income 

 EBITDA 

and other expense

 (loss) income  

 per share 

Three months ended

Three months ended

Three months ended

Three months ended

September 30,

September 30,

September 30,

September 30,

In millions, except per share amounts

2026

2025

2026

2025

2026

2025

2026

2025

Net loss

$          (5)

$        (11)

$          (5)

$        (11)

$      (0.03)

$      (0.06)

Net income attributable to noncontrolling interests

(13)

(14)

(13)

(14)

(0.07)

(0.08)

Net loss attributable to Huntsman Corporation

(18)

(25)

(18)

(25)

(0.10)

(0.14)

Interest expense, net

23

20

Income tax expense from continuing operations

28

3

$        (28)

$          (3)

Depreciation and amortization

77

73

EBITDA / Loss from discontinued operations

3

1

 N/A 

 N/A 

3

1

0.02

0.01

Loss on sale of business/assets, net

-

2

-

-

-

2

-

0.01

Expenses associated with the proposed merger

3

-

-

-

3

-

0.02

-

Certain legal and other settlements and related expenses, net

4

-

-

-

4

-

0.02

-

Amortization of pension and postretirement actuarial losses

7

8

2

(2)

9

6

0.05

0.03

Restructuring, impairment and plant closing and transition costs

5

12

1

(1)

6

11

0.03

0.06

Adjusted(1)

$        132

$          94

$        (25)

$          (6)

7

(5)

$       0.04

$      (0.03)

Adjusted income tax expense(1)

25

6

Net income attributable to noncontrolling interests

13

14

Adjusted pre-tax income(1)

$          45

$          15

Adjusted effective tax rate(3)

56 %

40 %

Effective tax rate

108 %

(43 %)

 Income tax 

 Net 

 Diluted loss 

 EBITDA 

and other expense

 loss 

 per share 

Nine months ended

Nine months ended

Nine months ended

Nine months ended

September 30,

September 30,

September 30,

September 30,

In millions, except per share amounts

2026

2025

2026

2025

2026

2025

2026

2025

Net loss

$        (39)

$       (145)

$        (39)

$       (145)

$      (0.23)

$      (0.84)

Net income attributable to noncontrolling interests

(38)

(43)

(38)

(43)

(0.22)

(0.25)

Net loss attributable to Huntsman Corporation

(77)

(188)

(77)

(188)

(0.44)

(1.09)

Interest expense, net

67

60

Income tax expense from continuing operations

56

25

$        (56)

$        (25)

Income tax expense from discontinued operations(3)

-

1

Depreciation and amortization from continuing operations

227

214

Business acquisition and integration gain and purchase accounting

inventory adjustments, net

-

(5)

-

-

-

(5)

-

(0.03)

EBITDA / Loss from discontinued operations(3)

6

-

N/A

N/A

6

1

0.03

0.01

Establishment of significant deferred tax asset valuation allowances,

net

-

-

-

1

-

1

-

0.01

(Gain) loss on sale of business/assets, net

(22)

2

-

-

(22)

2

(0.13)

0.01

Expenses associated with the proposed merger

8

-

-

-

8

-

0.05

-

Loss on early extinguishment of debt

1

-

-

-

1

-

0.01

-

Certain legal and other settlements and related expenses (income), net

15

(32)

-

7

15

(25)

0.09

(0.14)

Amortization of pension and postretirement actuarial losses

21

22

(1)

(4)

20

18

0.12

0.10

Restructuring, impairment and plant closing and transition costs

23

141

(2)

(3)

21

138

0.12

0.80

Adjusted(1)

$        325

$        240

$        (59)

$        (24)

(28)

(58)

$      (0.16)

$      (0.34)

Adjusted income tax expense(1)

59

24

Net income attributable to noncontrolling interests

38

43

Adjusted pre-tax income(1)

$          69

$            9

Adjusted effective tax rate(4)

86 %

267 %

Effective tax rate

243 %

(21 %)

N/M = not meaningful

N/A = not applicable

See end of press release for footnote explanations.

Table 5 -- Balance Sheets

September 30,

December 31,

In millions

2026

2025

Cash

$               359

$               429

Accounts and notes receivable, net

870

677

Inventories

905

818

Prepaid expenses

72

94

Other current assets

34

46

Property, plant and equipment, net

2,369

2,486

Other noncurrent assets

2,495

2,465

Total assets

$            7,104

$            7,015

Accounts payable(5)

$               862

$               758

Other current liabilities(5)

496

478

Current portion of debt

303

353

Long-term debt

1,740

1,658

Other noncurrent liabilities

795

811

Huntsman Corporation stockholders' equity

2,662

2,750

Noncontrolling interests in subsidiaries

246

207

Total liabilities and equity

$            7,104

$            7,015

See end of press release for footnote explanations.

Table 6 -- Outstanding Debt

September 30,

December 31,

In millions

2026

2025

Debt:

Revolving credit facility

$               300

$               343

Senior notes

1,490

1,488

Amounts outstanding under A/R programs

235

152

Variable interest entities

-

7

Other debt

18

21

Total debt - excluding affiliates

2,043

2,011

Total cash

359

429

Net debt - excluding affiliates(4)

$            1,684

$            1,582

See end of press release for footnote explanations.

Table 7 -- Summarized Statement of Cash Flows

Three months ended

Nine months ended

September 30,

September 30,

In millions

2026

2025

2026

2025

Total cash at beginning of period

$            346

$            399

$            429

$            340

Net cash provided by operating activities from continuing operations

115

200

2

221

Net cash used in operating activities from discontinued operations

(5)

(4)

(5)

(8)

Net cash used in investing activities

(33)

(42)

(48)

(74)

Net cash used in financing activities

(65)

(83)

(22)

(14)

Effect of exchange rate changes on cash

1

(2)

3

3

Total cash at end of period

$            359

$            468

$            359

$            468

Free cash flow(2):

Net cash provided by operating activities from continuing operations

$            115

$            200

$               2

$            221

Capital expenditures

(33)

(43)

(101)

(116)

Free cash flow from continuing operations(2)

$             82

$            157

$            (99)

$            105

Supplemental cash flow information:

Cash paid for interest

$              (8)

$              (5)

$            (51)

$            (49)

Cash paid for income taxes

(14)

(18)

(38)

(79)

Cash paid for restructuring and integration

(12)

(7)

(40)

(18)

Cash paid for pensions

(19)

(9)

(35)

(25)

Depreciation and amortization from continuing operations

77

73

227

214

Change in primary working capital:

Accounts and notes receivable

$               9

$             37

$          (214)

$            (26)

Inventories

28

55

(104)

114

Accounts payable(5)

(25)

(2)

129

(89)

Total change in primary working capital

$             12

$             90

$          (189)

$              (1)

See end of press release for footnote explanations.

Footnotes

(1)

We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments.  We provide adjusted net income (loss) because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss).  Additional information with respect to our use of each of these financial measures follows:

Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies.

Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests; (b) interest expense, net; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted EBITDA in Table 4 above. 

Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interests; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted net income (loss) in Table 4 above.  The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach.

We may disclose forward-looking adjusted EBITDA because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, net, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted EBITDA represents the forecast net income on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our adjusted EBITDA to differ.

(2)

We believe free cash flow is an important indicator of our liquidity as it measures the amount of cash we generate. Management internally uses free cash flow measure to: (a) evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

(3)

We believe the adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. Please see the reconciliation of our net income to adjusted net income in Table 4 for details regarding the tax impacts of our non-GAAP adjustments.

(4)

Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.

(5)

Certain prior period amounts have been reclassified in the condensed consolidated financial statements to conform to current period presentation.

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of diversified chemical products with 2025 revenues of approximately $6 billion from our continuing operations. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 55 manufacturing, R&D and operations facilities in approximately 25 countries and employ approximately 6,000 associates within our continuing operations. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:
X: http://www.x.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

Forward-Looking Statements:
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, divestitures or strategic transactions, including the planned merger of equals with Olin Corporation, statements about the anticipated benefits of the contemplated transaction, including future expected synergies and cost savings related to the contemplated transaction, the plans, objectives, expectations and intentions of Olin, Huntsman or the combined company business trends and any other information that is not historical information. When used in this press release, the words "estimates," "expects," "anticipates," "likely," "projects," "outlook," "plans," "intends," "believes," "forecasts," or future or conditional verbs, such as "will," "should," "could" or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including, without limitation, management's examination of historical operating trends and data, are based upon our current expectations and various assumptions and beliefs. In particular, such forward-looking statements are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the Company's operations, markets, products, prices and other factors as discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"). Significant risks and uncertainties may relate to, but are not limited to, uncertainties as to the timing of the contemplated merger; the possibility that the closing conditions to the contemplated merger may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; the effects of disruption caused by the contemplated merger making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated merger may affect the timing or occurrence of the contemplated merger or result in significant costs of defense, indemnification and liability; ability to refinance existing indebtedness of Huntsman in connection with the contemplated merger; other business effects, including the effects of industry, economic or political conditions outside of the control of the parties to the contemplated merger; transaction costs; high energy costs in Europe, inflation and high capital costs, geopolitical instability, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of the Company's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in the Company's businesses and to realize anticipated cost savings, and other financial, operational, economic, competitive, environmental, political, legal, regulatory and technological factors. Any forward-looking statement should be considered in light of the risks set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, which may be supplemented by other risks and uncertainties disclosed in any subsequent reports filed or furnished by the Company from time to time. All forward-looking statements apply only as of the date made. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

SOURCE Huntsman Corporation

ARLINGTON, Va., Nov. 02, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that AeroVironment, Inc. (“AV”) (Nasdaq: AVAV) has selected the company to provide rugged integration expertise for the U.S. Army's Enduring-High Energy Laser (E-HEL) production program.

Pump and motor manufacturer Franklin Electric (FELE +5.16%) was pumping up the value of stock portfolios on Monday. Investors eagerly bought the stock on news that an analyst tracking it had upgraded his recommendation. By the time the smoke had cleared, Franklin's shares were up in excess of 5% that trading day.

Plugged inThe upgrading party was DA Davidson's Matt Summerville, who now feels Franklin is a buy, whereas he previously flagged it as neutral. In making the change, Summerville also increased his price target to $135 per share from $105.

Image source: Getty Images.

According to reports, the analyst made his move on the industrial company's growing exposure to potentially high-growth market segments. In his view, investors might be underestimating its ability to develop new products for clients in data center infrastructure and critical minerals businesses.

On top of that, Summerville waxed bullish about the company's ability to boost its distribution business, which should increase segment margins and contribute to revenue growth.

FELE Franklin Electric$100.30+$4.92 (+5.16%)

NASDAQ · As of 4:00 PM ET 11/02/26

The new and the oldThe analyst also pointed out that Franklin has a relatively clean balance sheet, which is important because industrial businesses can often be capital-intensive, leading to thin profitability or even bottom-line losses.

I think he's correct in identifying the somewhat under-the-radar, niche industrial company as a beneficiary in hot verticals these days; however, the core markets that make up the bulk of its business are vulnerable to rising interest rates and construction-industry downcycles. Still, the emergence of the "newer" businesses presents an enticing opportunity for Franklin.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Franklin Electric. The Motley Fool has a disclosure policy.

Raised Quarterly Dividend by 4% and Delivered 2% Quarter-over-Quarter Net Production Growth 

Sharpened Focus on California through Uinta Basin Sale and Closing of Crimson Midstream Acquisition

LONG BEACH, Calif., Nov. 02, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) today reported its financial and operating results for the third quarter of 2026. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Tuesday, November 3, 2026. Conference call details can be found within this release.

Third Quarter Highlights

Delivered average net production of 152 thousand barrels of oil equivalent per day (MBoe/d) (80% oil)Reported a net loss of $315 million which includes the non-cash loss of $540 million from changes in the fair value of outstanding commodity derivatives, adjusted net income1 of $104 million and $341 million of adjusted EBITDAX1 which exceeded quarterly guidanceGenerated net cash provided by operating activities of $305 million, deployed $158 million of total capital and delivered $147 million of free cash flow1Returned $66 million to shareholders, including $36 million in dividends and $30 million in share repurchases2Increased quarterly dividend by 4%, reinforcing commitment to sustainable shareholder returns; declared quarterly dividend of $0.42/share to be paid in the fourth quarter of 20262Ended the quarter with $1,280 million in borrowing capacity and $35 million in available cash and cash equivalents3, representing $1,315 million of liquidity1, 3 Other Highlights

Announced a memorandum of understanding4 (MOU) with Bloom Energy to jointly evaluate and target the potential development of 1 gigawatt (GW) or more of solid-oxide fuel cell power generation paired with carbon capture and storage. See California Resources Corporation Announces Strategic Collaboration with Bloom Energy to Advance Decarbonized Power Across California for additional informationSigned agreement to divest its Uinta Basin (Utah) assets for total cash consideration of approximately $90 million, subject to customary purchase price adjustments. The transaction is expected to close by year-end, subject to certain third-party consents and other customary closing conditions. See California Resources Corporation Announces Divestiture of Uinta Basin Assets for additional informationClosed its all-cash acquisition of Crimson Midstream Holdings, LLC (“Crimson”), strengthening CRC’s Leading Energy Infrastructure Platform and expanding options for potential longer-term development of CO₂ transportation across California. See California Resources Corporation Completes Acquisition of Crimson for additional informationPublished the 2025 Sustainability Update providing an overview of CRC's sustainability efforts and performance "Our team continues to execute exceptionally well through strong operational performance, synergy realization from our strategic initiatives and impressive free cash flow,” said Francisco Leon, CRC’s President and Chief Executive Officer. “Through continued capital discipline and the ongoing focus on sustainable efficiency gains, we are improving free cash flow and our liquidity profile. In addition, we remain committed to our shareholder capital return program with share repurchases and dividends, the latter demonstrated by the 4% dividend per share increase we announced today. We have also made significant progress on strategic priorities, including the Crimson pipeline acquisition, along with the Uinta Basin asset sale and Bloom Energy partnership. These initiatives broaden and strengthen our commitment to the Golden State while continuing to deliver value to all CRC constituents including our shareholders and California communities.”

Third Quarter 2026 Results

Net NGL and natural gas production exceeded guidance by approximately 1 MBoe/d, supported by the new Belridge-Elk Hills connection and California’s first carbon capture and storage (CCS) project at CRC’s Elk Hills Cryogenic Gas Plant, which led to increased gas processing and NGL recoveryElectricity revenue net of electricity generation expenses exceeded guidance primarily due to higher prices for resource adequacy revenue and sales from electricity delivered to the wholesale market as Elk Hills power plant ran at a higher operational capacityOperating expenses were higher than anticipated and increased over the prior period, primarily due to higher prices for natural gas purchased and used in steamflood operations, and higher workover activity Select Production, Price and Financial Results and Non-GAAP Measures 3rd Quarter  2nd Quarter($ in millions except production and prices) 2026
  2026
Net oil production per day (MBbl/d)  121    120 Realized oil price without derivative settlements ($ per Bbl) $83.42   $91.55 Realized oil price with derivative settlements ($ per Bbl)1 $72.46   $76.43 Net NGL production per day (MBbl/d)  11    10 Realized NGL price ($ per Bbl) $48.57   $49.62 Net natural gas production per day (Mmcf/d)  123    115 Realized natural gas price ($ per Mcf) $3.52   $1.84 Net total production per day (MBoe/d)  152    149       Margin from purchased commodities1 $15   $11 Electricity revenue net of electricity generation expenses1 $35   $(4)Net (loss) gain from commodity sales derivatives1 $(675)  $205 Other operating expenses net of other revenue1 $35   $56  Select Financial Statement Data and Non-GAAP Measures: 3rd Quarter  2nd Quarter($ and shares in millions, except per share amounts) 2026
  2026
Total operating revenues before net (loss) gain from commodity derivatives1 $1,096   $1,092       Operating costs $386   $347 General and administrative expenses $89   $97 Adjusted general and administrative expenses1 $79   $89 Taxes other than on income $81   $66 Transportation costs $31   $30 Operating (loss) income $(407)  $511 Interest and debt expense, net $26   $28 Income tax benefit $(113)  $(56)Deferred income tax benefit $(113)  $(55)Net (loss) income $(315)  $514 Weighted-average common shares outstanding - diluted  88.7    89.3 Net (loss) income per share - diluted $(3.55)  $5.76       Adjusted net income1 $104   $88 Adjusted net income per share1 - diluted $1.17   $0.99 Net cash provided by operating activities $305   $263 Net cash provided by operating activities before net changes in operating assets and liabilities1 $300   $300 Capital investments $158   $149 Adjusted EBITDAX1 $341   $338 Free cash flow1 $147   $114 
Fourth Quarter 2026 Guidance and Preliminary 2027 Outlook

The following table provides select fourth quarter 2026E guidance5. Guidance includes the financial results of the Uinta Basin through year-end 2026, while the preliminary 2027 outlook excludes the Uinta. CRC ran an average of five rigs during the third quarter of 2026 and similarly, expects to run an average of five rigs during the fourth quarter of 2026. CRC plans to enter 2027 with six rigs in California. See Attachment 2 for CRC's fourth quarter 2026E guidance.

CRC Guidance4Q26ENet Production (MBoe/d)150 - 152Percentage Oil79%Capital Investments ($ millions)$110 - $130Adjusted EBITDAX1 ($ millions)$340 - $380
Leon added, "As we look to 2027, CRC is moving from acquisition to optimization. Having built, in our view, California’s leading energy infrastructure platform, our focus now turns to running it better by lowering costs, improving capital efficiency and putting our midstream, power and carbon opportunities to work. That strategy positions us to strengthen free cash flow and continue delivering meaningful returns to our shareholders."

2027 drilling, completions and workover capital is expected to be $450 - $475 million. Planned activity levels will be supported by the Company's growing permit inventory and ongoing operational efficiencies. CRC remains focused on disciplined capital allocation, maintaining a strong balance sheet and delivering sustainable shareholder returns. CRC intends to provide full-year 2027 guidance with its fourth quarter and year-end 2026 earnings release. The Company has flexibility to adjust its 2027 capital program to reflect changes in commodity prices and other market factors.

Shareholder Returns

CRC is committed to sustainably returning cash to shareholders through dividends and repurchases of its common stock. In the third quarter of 2026, CRC repurchased 0.6 million shares of its common stock for $30 million at an average price of $53.48 per share and returned $36 million in dividends to shareholders. Since 2021, the Company has returned approximately $1,721 million to shareholders, including $1,210 million in share repurchases and $511 million in dividends. As of September 30, 2026, CRC had $570 million remaining for share repurchases under its authorized Share Repurchase Program through December 31, 20272.

On November 2, 2026, CRC's Board of Directors amended its cash dividend policy to increase the anticipated total annual dividend by approximately 4% to $1.68, payable to shareholders in quarterly increments of $0.42 per share of common stock. The Board of Directors also declared a quarterly cash dividend of $0.42 per share of common stock, payable to shareholders of record on December 4, 2026. The dividend is expected to be paid on December 18, 20262.

Balance Sheet and Liquidity

As of September 30, 2026, CRC had $35 million in available cash and cash equivalents3, $1,280 million in available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $180 million of outstanding letters of credit) and liquidity of $1,315 million.

In October 2026, CRC entered into a new amendment to its Revolving Credit Facility to, among other things, extend the maturity date to March 2030, increase the elected commitments of its lenders to $1,470 million, re-affirm its borrowing base at $1,500 million, and implement certain other technical amendments.

Upcoming Investor Conferences

CRC is scheduled to participate in the following events through year-end 2026:

Goldman Sachs 7th Annual Carbonomics Conference, November 10, London, UKWolfe Global Oil & Gas Conference 2026, November 18, Virtual2026 Stephens Annual Investment Conference, November 19, Nashville, TNCapital One Securities 21st Annual Energy Conference, December 1, New Orleans, LAUBS 30th Annual Global Technology and AI Conference 2026, December 2, Scottsdale, AZMizuho Power, Energy & Infrastructure Conference 2026, December 8, New York City, NYBernstein 5th Annual Industrials & Energy Forum, December 9, New York City, NY25th Annual Wells Fargo Energy and Power Symposium, December 9, New York City, NYStifel 2026 Frontier Tech 2.0 Energy Summit, December 10, New York City, NY CRC plans to post its presentation materials to its website on the day of the event. See the Events and Presentations page under the Investor Relations section at www.crc.com.

Conference Call Details

A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Tuesday, November 3, 2026. To participate in the call, dial (877) 328-5505 (International calls dial +1 (412) 317-5421) or access via webcast at www.crc.com. Participants may also pre-register for the conference call at https://dpregister.com/sreg/10211602/104c2aa7a86. A digital replay of the conference call will be available for approximately 90 days.

1 See Attachment 3 for the non-GAAP financial measures of adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, net cash provided by operating activities before net changes in operating assets and liabilities, adjusted EBITDAX, free cash flow, free cash flow before net changes in operating assets and liabilities, adjusted general and administrative expenses, total operating revenues before net (loss) gain from commodity derivatives, margin from purchased commodities, electricity revenue net of electricity generation expenses, other operating expenses net of other revenue and liquidity, including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 4Q26 estimates of the non-GAAP measures of adjusted general and administrative expenses, margin from purchased commodities, electricity revenue net of electricity generation expenses and other operating expenses net of other revenue and reconciliations to its most directly comparable GAAP measure. The 4Q26 estimates of some non-GAAP measures cannot be reconciled to its most directly comparable GAAP measure without unreasonable effort. See Attachment 1 for a reconciliation of drilling completion and workover capital to total capital investments, and non-cash commodity derivative (loss) gain from combined derivatives to net (loss) gain from combined derivatives, reported under GAAP.
2 All of CRC’s future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors' approval. The total value of shares purchased excludes commissions and excise taxes. Commissions paid on share repurchases were not significant in all periods presented.
3 Excludes restricted cash of $13 million.
4 MOUs are non-binding agreements. The projects and transactions described in an MOU are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.
5 4Q26 guidance assumes Brent price of $102.90 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.25 per mcf.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, develops services to capture, transport and permanently store carbon dioxide (CO2) for its customers. CTV is advancing a portfolio of carbon capture and storage (CCS) projects, including CTV I, which is now operational and injecting CO2 for permanent sequestration in a depleted reservoir deep underground. For more information, visit www.carbonterravault.com.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements as to the effects of the Berry Merger and the Crimson acquisition, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding the benefits of the Berry Merger and the Crimson acquisition, CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the SEC. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; changes in price realizations; integration efforts and projected synergies and other benefits in connection with the Berry Merger, Crimson acquisition and other acquisitions; divestitures and joint ventures, including the Uinta divestiture; regulatory actions and changes that affect the oil and gas industry generally and CRC in particular; the efforts of activists to delay or prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and the ability and financial resources to execute its capital plan in a timely manner; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs and improve capital efficiencies; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC’s ability to successfully identify, develop and finance carbon capture, transportation and storage projects, power projects and other renewable energy efforts, including those contemplated by the Bloom MOU; changes in transportation costs and CRC's ability to develop midstream opportunities; delays from government approvals and otherwise that could affect the timing of projects; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events.

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

Contacts:

Attachment 1STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ and shares in millions, except per share amounts) 2026
 2026
 2025
 2026
 2025
           Statements of Operations:          Revenues          Oil, natural gas and natural gas liquids sales $1,002  $1,056  $715  $2,963  $2,231 Net (loss) gain from commodity derivatives  (675)  205   (23)  (1,318)  140 Revenue from marketing of purchased commodities  40   26   58   107   178 Electricity revenue  46   6   101   63   181 Other revenue  8   4   4   22   15 Total operating revenues  421   1,297   855   1,837   2,745            Operating Expenses          Operating costs  386   347   316   1,098   927 General and administrative expenses  89   97   87   292   238 Depreciation, depletion and amortization  137   131   123   401   382 Asset impairment  —   —   2   —   2 Taxes other than on income  81   66   70   214   187 Costs related to marketing of purchased commodities  25   15   44   63   135 Electricity generation expenses  11   10   11   26   26 Transportation costs  31   30   19   87   59 Accretion expense  26   27   28   80   85 Net (gain) loss on natural gas purchase derivatives  (1)  5   27   28   24 Measurement period adjustments, net  —   (2)  —   (2)  1 Other operating expenses, net  43   60   29   157   127 Total operating expenses  828   786   756   2,444   2,193 Loss on asset divestitures  —   —   (1)  —   (1)Operating (Loss) Income  (407)  511   98   (607)  551            Non-Operating (Expenses) Income          Interest and debt expense, net  (26)  (28)  (25)  (83)  (77)Equity loss from unconsolidated subsidiaries  (1)  (2)  (2)  (5)  (3)Loss on early extinguishment of debt  —   (28)  —   (49)  (1)Other non-operating income, net  6   5   4   14   9            (Loss) Income Before Income Taxes  (428)  458   75   (730)  479 Income tax benefit (provision)  113   56   (11)  218   (128)Net (Loss) Income $(315) $514  $64  $(512) $351            Net (loss) income per share - basic $(3.55) $5.79  $0.76  $(5.77) $4.00 Net (loss) income per share - diluted $(3.55) $5.76  $0.76  $(5.77) $3.97            Adjusted net income $104  $88  $123  $271  $319 Adjusted net income per share - basic $1.17  $0.99  $1.47  $3.06  $3.63 Adjusted net income per share - diluted(1) $1.17  $0.99  $1.46  $3.03  $3.61            Weighted-average common shares outstanding - basic  88.7   88.8   83.7   88.7   87.8 Weighted-average common shares outstanding - diluted(1)  88.7   89.3   84.4   88.7   88.4            Effective tax rate   26 %  (12) %   15 %   30 %   27 %                        3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ in millions) 2026
 2026
 2025
 2026
 2025
Cash Flow Data:          Net cash provided by operating activities $305  $263  $279  $667  $630 Net cash used in investing activities $(245) $(153) $(87) $(534) $(217)Net cash used in financing activities $(68) $(94) $(68) $(217) $(589)             September 30 December 31,      ($ in millions) 2026
 2025
      Select Balance Sheet Information:          Total current assets $820  $938       Property, plant and equipment, net $5,975  $5,905       Total current liabilities $1,622  $1,050       Long-term debt, net $1,281  $1,283       Noncurrent asset retirement obligations $888  $913       Total stockholders' equity $3,025  $3,674                             (1) Adjusted net income per share - diluted for the three months ended September 30, 2026 is calculated using weighted average shares outstanding of 89.2 million shares. Adjusted net income per share - diluted for the nine months ended September 30, 2026 is calculated using weighted average shares outstanding of 89.3 million shares. GAINS AND LOSSES FROM COMMODITY DERIVATIVES     3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions) 2026
 2026
 2025
 2026
 2025
           Non-cash (loss) gain from commodity sales derivatives $(554) $370  $(32) $(976) $130 Net settlements and premiums  (121)  (165)  9   (342)  10 Net (loss) gain from commodity sales derivatives $(675) $205  $(23) $(1,318) $140                 Non-cash (gain) loss from natural gas purchase derivatives $(14) $(20) $24  $(22) $2 Settlements  13   25   3   50   22 Net (gain) loss from natural gas purchase derivatives $(1) $5  $27  $28  $24                       Non-cash (loss) gain from combined commodity derivatives $(540) $390  $(56) $(954) $128 Net settlements and premiums from combined derivatives  (134)  (190)  6   (392)  (12)Net (loss) gain from combined commodity derivatives $(674) $200  $(50) $(1,346) $116             CAPITAL INVESTMENTS                 3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions) 2026
 2026
 2025
 2026
 2025
           Facilities $22 $38 $28 $97 $53Drilling and completions  115  77  26  245  60Workovers  18  24  17  59  51Other  —  6  1  15  1Oil and natural gas segment  155  145  72  416  165Carbon management segment  1  3  15  16  22Corporate and other  2  1  4  6  15Total capital investment $158 $149 $91 $438 $202  LIQUIDITY     ($ millions) September 30, 2026 December 31, 2025Available cash and cash equivalents(1) $35  $117      Revolving credit facility:    Borrowing capacity  1,460   1,460 Outstanding letters of credit  (180)  (176)Availability $1,280  $1,284      Liquidity $1,315  $1,401      (1) Excludes restricted cash of $13 million and $15 million at September 30, 2026 and December 31, 2025, respectively.       Attachment 2CRC GUIDANCE Consolidated
4Q26E Oil and Natural Gas
Segment Carbon Management
SegmentNet production (MBoe/d) 150 - 152    Net oil production (%) 79%
    Operating costs ($ millions) $370 - $390 $370 - $390  General and administrative expenses ($ millions) $95 - $99 $12 - $16 $0 - $2Adjusted general and administrative expenses ($ millions) $83 - $93 $12 - $16 $0 - $2Depreciation, depletion and amortization ($ millions) $128 - $140 $120 - $130  Capital investments ($ millions) $110 - $130 $110 - $125 $0 - $2Adjusted EBITDAX ($ millions) $340 - $380           Margin from purchased commodities ($ millions) (1) $11 - $15    Electricity revenue net of electricity generation expenses ($ millions) $5 - $11    Other operating expenses net of other revenue ($ millions) (2) $20 - $30   $4 - $12Transportation costs ($ millions) $30 - $35 $20 - $24  Taxes other than on income  ($ millions) $68 - $78 $60 - $66  Interest and debt expense ($ millions) $28 - $32           Other Assumptions:      Brent ($/Bbl) $102.90
    NYMEX ($/Mcf) $3.25
    Price realization oil - % of Brent: 91% - 93%    Price realization NGLs - % of Brent: 55% - 62%    Price realization natural gas - % of NYMEX: 110% - 116%           Current income tax provision ($ millions) (3) $(2) - $2    Effective tax rate 27% - 31%     (1) Margin from purchased commodities is calculated as the difference between revenue from marketing of purchased commodities and costs related to marketing of purchased commodities, and excludes costs of transportation.
(2) Other operating expenses net of other revenue is calculated as the difference between other revenue and other operating expenses, net and includes exploration expense and CMB expenses. CMB expenses includes lease cost for sequestration easements, advocacy, and other startup related costs.
See Attachment 3 for management's disclosure of its use of these non-GAAP measures and how these measures provide useful information to investors about CRC's results of operations and financial condition.
(3) Current income tax composition is subject to variability and depends on a number of factors, including but not limited to, final taxable income determinations, the availability and utilization of net operating loss carryforwards (NOLs), applicable tax credits, and other differences between book and taxable income. Accordingly, the current provision may vary from period to period and should not be viewed as indicative of future tax obligations.

FORWARD LOOKING NON-GAAP RECONCILIATIONS
   4Q26E  Consolidated Oil and Natural Gas
Segment Carbon Management
Segment($ millions) Low High Low High Low HighGeneral and administrative expenses $95  $99  $12 $16 $— $2Equity-settled stock-based compensation  (12)  (6)  —  —  —  —Estimated adjusted general and administrative expenses $83  $93  $12 $16 $— $2                     Consolidated   4Q26E($ millions) Low HighRevenue from marketing of purchased commodities $30  $46 Costs related to marketing of purchased commodities  (19)  (31)Margin from purchased commodities $11  $15              Consolidated   4Q26E($ millions) Low HighElectricity revenues $11  $21 Electricity generation expenses  (6)  (10)Electricity revenue net of electricity generation expenses $5  $11              Consolidated   4Q26E($ millions) Low HighOther operating expenses, net $39  $53 Other revenue  (19)  (23)Other operating expenses net of other revenue $20  $30       Attachment 3NON-GAAP RECONCILIATIONS To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), management uses certain non-GAAP measures to assess its financial condition, results of operations and cash flows. These measures are also widely used by the industry, the investment community and CRC's lenders. Although these are non-GAAP measures, the amounts included in the calculations were computed in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing CRC's financial performance, such as CRC's cost of capital and tax structure, as well as the effect of acquisition and development costs of CRC's assets. Management believes that the non-GAAP measures presented, when viewed in combination with CRC's financial and operating results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the Company's performance. The non-GAAP measures presented herein may not be comparable to other similarly titled measures of other companies. Below are additional disclosures regarding each of these non-GAAP measures, including reconciliations to their most directly comparable GAAP measure where applicable. ADJUSTED NET INCOME (LOSS) Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. CRC defines adjusted net income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. Management believes these non-GAAP measures provide useful information to the industry and the investment community interested in comparing CRC's financial performance between periods. Reported earnings are considered representative of management's performance over the long term. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP. The following table presents a reconciliation of the GAAP financial measure of net income and net income attributable to common stock per share to the non-GAAP financial measures of adjusted net income and adjusted net income per share.       3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions, except per share amounts)  2026   2026   2025   2026   2025 Net (loss) income $(315) $514  $64  $(512) $351 Unusual, infrequent and other items:          Non-cash derivative loss (gain) on Brent based commodity contracts  554   (370)  32   976   (130)Non-cash derivative (gain) loss on natural gas derivative contracts  (14)  (20)  24   (22)  2 Asset impairment  —   —   2   —   2 Severance and termination costs  —   —   —   25   8 Merger-related costs  3   1   6   5   10 Net loss on asset divestitures  —   —   1   —   1 Loss on early extinguishment of debt  —   28   —   49   1 Offshore platform expense  6   10   5   26   7 Litigation and settlements  —   —   1   —   26 Measurement period adjustments, net  —   (2)  —   (2)  1 Other, net  23   12   11   43   27 Total unusual, infrequent and other items  572   (341)  82   1,100   (45)Income tax (benefit) provision of adjustments at the combined tax rate  (153)  (85)  (23)  (317)  13            Adjusted net income $104  $88  $123  $271  $319            Net income (loss) per share – basic $(3.55) $5.79  $0.76  $(5.77) $4.00 Net income (loss) per share – diluted $(3.55) $5.76  $0.76  $(5.77) $3.97 Adjusted net income per share – basic $1.17  $0.99  $1.47  $3.06  $3.63 Adjusted net income per share – diluted $1.17  $0.99  $1.46  $3.03  $3.61  ADJUSTED EBITDAX CRC defines adjusted EBITDAX as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; other unusual, infrequent and out-of-period items; and other non-cash items. CRC believes this measure provides useful information in assessing its financial condition, results of operations and cash flows and is widely used by the industry, the investment community and its lenders. Although this is a non-GAAP measure, the amounts included in the calculation were computed in accordance with GAAP. Certain items excluded from this non-GAAP measure are significant components in understanding and assessing CRC’s financial performance, such as its cost of capital and tax structure, as well as depreciation, depletion and amortization of CRC's assets. This measure should be read in conjunction with the information contained in CRC’s financial statements prepared in accordance with GAAP. A version of adjusted EBITDAX is a material component of certain of its financial covenants under CRC's Revolving Credit Facility and is provided in addition to, and not as an alternative for, income and liquidity measures calculated in accordance with GAAP. These materials include forward-looking non-GAAP financial measures, including adjusted EBITDAX. CRC is unable to provide a reconciliation of such forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP financial measures because certain information needed to reconcile these measures is dependent on future events, many of which are outside of CRC’s control and cannot be reasonably predicted at this time. These items include, but are not limited to, changes in working capital, the timing and amount of capital accruals, and other non-cash or unusual items. Accordingly, a quantitative reconciliation is not available without unreasonable efforts.

 The following table represents a reconciliation of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of adjusted EBITDAX. CRC has included non-GAAP measures of adjusted EBITDAX for its oil and gas segment and its carbon management segment below. Management believes these segment non-GAAP measures are useful for investors to understand the results of our core businesses.

       3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions, except per BOE amounts)  2026   2026   2025   2026   2025 Net (loss) income $(315) $514  $64  $(512) $351 Interest and debt expense  26   28   25   83   77 Depreciation, depletion and amortization  137   131   123   401   382 Income tax (benefit) provision  (113)  (56)  11   (218)  128 Interest income  —   —   (1)  (1)  (6)Equity loss from unconsolidated subsidiaries  1   2   2   5   3 Exploration expense  —   27   —   27   1 Unusual, infrequent and other items (1)  572   (341)  82   1,100   (45)Non-cash items  —       —   Accretion expense  26   27   28   80   85 Stock-based compensation  9   8   5   24   18 Pension and post-retirement benefits  (2)  (2)  (1)  (6)  (4)Adjusted EBITDAX $341  $338  $338  $983  $990            Net cash provided by operating activities $305  $263  $279  $667  $630 Cash interest payments  44   26   6   71   56 Cash interest received  —   —   (1)  (1)  (6)Cash income taxes  —   16   6   16   45 Exploration expense  —   27   —   27   1 Working capital changes  (8)  6   48   203   264 Adjusted EBITDAX $341  $338  $338  $983  $990            Net (loss) income per Boe $(22.51) $37.93  $5.09  $(12.36) $9.31 Adjusted EBITDAX per Boe $24.37  $24.94  $26.90  $23.73  $26.25            (1) See Adjusted Net Income (Loss) reconciliation. SEGMENT ADJUSTED EBITDAX
 This measure should be read in conjunction with Note 16 Segment Information in CRC’s 2025 Annual Report. A reconciliation of the non-GAAP measure of segment adjusted EBITDAX cannot be reconciled to the comparable measure of operating cash flow prepared in accordance with GAAP without unreasonable effort.     Oil and Natural Gas Segment 3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025 Segment profit $360  $427  $182  $1,071  $642 Depreciation, depletion and amortization  128   124   118   379   365 Exploration expense  —   27   —   27   1 Accretion expense  26   27   28   80   85 Adjusted income items  11   3   4   18   7 Adjusted EBITDAX - Oil and Natural Gas $525  $608  $332  $1,575  $1,100            Carbon Management Segment          Segment loss $(14) $(13) $(21) $(39) $(66)Interest on contingent liability (related to Carbon TerraVault JV)  3   3   3   9   8 Equity loss from unconsolidated subsidiary  1   2   2   4   4 Depreciation, depletion and amortization  2   —   —   2   — Adjusted income items  —   —   2   —   2 Adjusted EBITDAX - Carbon Management $(8) $(8) $(14) $(24) $(52)            FREE CASH FLOW           Management uses free cash flow, which is defined by CRC as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC's net cash provided by operating activities to free cash flow.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025            Net cash provided by operating activities $305  $263  $279  $667  $630 Capital investments  (158)  (149)  (91)  (438)  (202)Free cash flow $147  $114  $188  $229  $428             FREE CASH FLOW BEFORE NET CHANGES IN OPERATING ASSETS AND LIABILITIES           Management uses free cash flow before changes in operating assets and liabilities, which is defined by CRC as net cash provided by operating activities less net changes in operating assets and liabilities and capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC's net cash provided by operating activities to free cash flow before net changes in operating assets and liabilities.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025            Net cash provided by operating activities $305  $263  $279  $667  $630 Net changes in operating assets and liabilities  (5)  37   43   180   165 Net cash provided by operating activities before net changes in operating assets and liabilities  300   300   322  $847  $795 Capital investments  (158)  (149)  (91)  (438)  (202)Free cash flow before net changes in operating assets and liabilities $142  $151  $231  $409  $593  ADJUSTED GENERAL & ADMINISTRATIVE EXPENSES           Management uses a measure called adjusted general and administrative (G&A) expenses and adjusted G&A per BOE to provide useful information to investors interested in comparing CRC's costs between periods and performance to its peers.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025 General and administrative expenses $89  $97  $87  $292  $238 Stock-based compensation and other  (10)  (8)  (5)  (25)  (18)Adjusted G&A expenses $79  $89  $82  $267  $220            G&A per BOE $6.36  $7.16  $6.92  $7.05  $6.31 Adjusted G&A per BOE $5.65  $6.57  $6.52  $6.44  $5.83             TOTAL OPERATING REVENUES BEFORE NET (LOSS) GAIN FROM COMMODITY DERIVATIVES           Management uses a measure called total operating revenues before net (loss) gain from commodity derivatives, which is calculated as the difference between total operating revenues less net (loss) gain from commodity derivatives.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026  2025   2026  2025
Total operating revenues $421  $1,297 $855  $1,837  $2,745Less: Net gain (loss) from commodity derivatives  (675)  205  (23)  (1,318)  140Total operating revenues before net gain (loss) from commodity derivatives $1,096  $1,092 $878  $3,155  $2,605            MARGIN FROM PURCHASED COMMODITIES           Management uses a measure called margin from purchased commodities, which is calculated as the difference between revenue from purchased commodities and costs related to purchased commodities. This non-GAAP measure excludes transportation costs.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025 Revenue from purchased commodities $40  $26  $58  $107  $178 Costs related to purchased commodities  (25)  (15)  (44)  (63)  (135)Margin from purchased commodities $15  $11  $14  $44  $43             ELECTRICITY REVENUE NET OF ELECTRICITY GENERATION EXPENSES           Management uses a measure called electricity revenue net of electricity generation expenses, which is calculated as the difference between electricity revenue and electricity generation expenses.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025 Electricity revenue $46  $6  $101  $63  $181 Electricity generation expenses  (11)  (10)  (11)  (26)  (26)Electricity revenue net of electricity generation expenses $35  $(4) $90  $37  $155             OTHER OPERATING EXPENSES NET OF OTHER REVENUE           Management uses a measure called other operating expenses net of other revenue, which is calculated as the difference between other operating expenses, net and other revenue.             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months($ millions)  2026   2026   2025   2026   2025 Other operating expenses, net $43  $60  $29  $157  $127 Other revenue  (8)  (4)  (4)  (22)  (15)Other operating expenses net of other revenue $35  $56  $25  $135  $112             Attachment 4PRODUCTION STATISTICS
             3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine MonthsNet Production Per Day 2026 2026 2025 2026 2025Oil (MBbl/d)          San Joaquin Basin 93 93 81 94 83Los Angeles Basin 16 15 17 16 17Uinta Basin 2 3 — 3 —Other Basins 10 9 9 9 9Total 121 120 107 122 109           NGLs (MBbl/d)          San Joaquin Basin 10 10 10 10 10Other Basins 1 — — — —Total 11 10 10 10 10           Natural Gas (MMcf/d)          San Joaquin Basin 101 93 103 96 100Los Angeles Basin 1 1 1 1 1Sacramento Basin 10 10 11 10 12Uinta Basin 9 9 — 9 —Other Basins 2 2 3 2 2Total 123 115 118 118 115           Total Net Production (MBoe/d) 152 149 137 152 138            Gross Operated and Net Non-Operated 3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine MonthsProduction Per Day 2026 2026 2025 2026 2025Oil (MBbl/d)          San Joaquin Basin 99 102 86 101 88Los Angeles Basin 20 21 21 21 22Uinta Basin 3 4 — 4 —Other Basins 11 9 11 10 11Total 133 136 118 136 121           NGLs (MBbl/d)          San Joaquin Basin 11 10 11 10 11Uinta Basin 1 1 — 1 —Total 12 11 11 11 11           Natural Gas (MMcf/d)          San Joaquin Basin 129 128 133 128 134Los Angeles Basin 6 6 6 6 6Sacramento Basin 13 13 14 13 14Uinta Basin 12 12 — 12 —Other Basins 3 3 4 3 4Total 163 162 157 162 158           Total Gross Production (MBoe/d) 172 174 155 174 158            Attachment 5PRICE STATISTICS
  3rd Quarter 2nd Quarter 3rd Quarter Nine Months Nine Months   2026   2026   2025   2026   2025 Oil ($ per Bbl)          Realized price with derivative settlements $72.46  $76.43  $67.04  $72.76  $68.61 Realized price without derivative settlements $83.42  $91.55  $66.32  $83.08  $68.34            NGLs ($/Bbl) $48.57  $49.62  $41.04  $47.70  $46.10            Natural gas ($/Mcf)          Realized price without derivative settlements $3.52  $1.84  $3.47  $2.99  $3.46            Index Prices          Brent oil ($/Bbl) $91.36  $96.87  $68.13  $88.71  $69.94 WTI oil ($/Bbl) $85.79  $92.79  $64.93  $83.50  $66.70 NYMEX average monthly settled price ($/MMBtu) $2.96  $2.90  $3.07  $3.63  $3.39            Realized Prices as Percentage of Index Prices          Oil with derivative settlements as a percentage of Brent  79%  79%  98%  82%  98%Oil without derivative settlements as a percentage of Brent  91%  95%  97%  94%  98%           Oil with derivative settlements as a percentage of WTI  84%  82%  103%  87%  103%Oil without derivative settlements as a percentage of WTI  97%  99%  102%  99%  102%           NGLs as a percentage of Brent  53%  51%  60%  54%  66%NGLs as a percentage of WTI  57%  53%  63%  57%  69%           Natural gas without derivative settlements as a percentage of NYMEX contract month average  119%  63%  113%  82%  102% Attachment 6THIRD QUARTER 2026 DRILLING ACTIVITY
  San Joaquin Los Angeles Sacramento Uinta Other  Wells Drilled Basin Basin Basin Basin Basins Total             Development Wells            Primary 17 — — 3 — 20Waterflood 2 6 — — — 8Steamflood 89 — — — — 89Total (1) 108 6 — 3 — 117                          NINE MONTHS 2026 DRILLING ACTIVITY
  San Joaquin Los Angeles Sacramento Uinta Other  Wells Drilled Basin Basin Basin Basin Basins Total             Development Wells            Primary 40 — — 4 — 44Waterflood 52 7 — — — 59Steamflood 172 — — — — 172Total (1) 264 7 — 4   275             (1) Includes steam injectors and drilled but uncompleted wells, which are not included in the SEC definition of wells drilled.

Super Micro Computer Inc. (NASDAQ:SMCI) shares are falling Monday, a day ahead of its fiscal first-quarter earnings report, as concerns about AI spending weigh on data center stocks.

BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today reported consolidated financial results for the third quarter ended September 30, 2026, and raised its full year 2026 revenue guidance. “Vertex delivered excellent third quarter results marked by strong revenue growth across the increasingly diversified portfolio, continued advancement of the R&D pipeline, and the successful close of the Crinetics Pharmaceuticals acquisition,” said Reshma Kewalramani, M.D., Ch.

LONG BEACH, Calif., Nov. 02, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC), and its carbon management business, Carbon TerraVault (CTV), today announced the signing of a memorandum of understanding¹ (MOU) with Bloom Energy (NYSE: BE) (Bloom), to jointly evaluate and target the potential development of 1 gigawatt (GW) or more of solid-oxide fuel cell power generation paired with carbon capture and storage in California.

"California needs more clean, firm, reliable, and affordable power generated here at home. We are uniquely positioned with land, vast subsurface storage and CO2 transportation and storage expertise," said Francisco Leon, CRC's President and Chief Executive Officer. "When combined with Bloom’s non-combustion technology with highly efficient carbon capture, we are positioned to deliver clean and affordable energy to power data centers and the grid at scale. This has the potential to significantly expand the value proposition for Carbon TerraVault's storage business and CRC’s integrated strategy."

Aman Joshi, Bloom’s Chief Commercial Officer, added, “Our non-combustion technology makes carbon capture more efficient and economically viable at scale, opening a new path to carbon-neutral power generation and addressing the decarbonization needs of large critical infrastructure.”

Highlights

Combine complementary capabilities across California, pairing Bloom's scalable solid-oxide fuel cell and third-party carbon capture technologies with CTV's carbon dioxide (CO2) transportation and permanent storage capabilities and CRC's proven project management expertise. Bloom’s high-concentration CO2 exhaust stream can make carbon capture more efficient and more cost-effective, positioning California to be among the nation’s first to pair fuel cell power generation with carbon capture at scaleIdentify and develop new commercial pathways with potential third-party power offtake customers, including utilities, community choice aggregators, municipalities, data centers and other industrial users, along with the interconnection, permitting and other project-development work required to bring projects onlineInitially evaluate and advance 1 GW or more of potential front-of-the-meter (FTM) and behind-the-meter (BTM) projects, representing up to 3 million metric tons per annum of CO2 emissions potentially available for capture and permanent storage, including contemplated projects in Central and Northern California: FTM clean energy projects – targeting multiple FTM projects with potential connection to CTV's vast California storage portfolio and utility offtakeBTM clean energy opportunities – additional contemplated BTM projects across CRC's Central Valley footprint, designed for industries seeking on-site, clean and reliable power 1 MOUs are non-binding agreements. The projects and transactions described in an MOU are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, develops services to capture, transport and permanently store CO2 for its customers. CTV is advancing a portfolio of CCS projects, including CTV I, which is now operational and injecting CO₂ for permanent sequestration in a depleted reservoir deep underground. For more information, visit www.carbonterravault.com.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the SEC. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; changes in price realizations; integration efforts and projected synergies and other benefits in connection with the Berry Merger, Crimson acquisition and other acquisitions; divestitures and joint ventures, including the Uinta divestiture; regulatory actions and changes that affect the oil and gas industry generally and CRC in particular; the efforts of activists to delay or prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and the ability and financial resources to execute its capital plan in a timely manner; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs and improve capital efficiencies; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC’s ability to successfully identify, develop and finance carbon capture, transportation and storage projects, power projects and other renewable energy efforts, including those contemplated by the Bloom MOU; changes in transportation costs and CRC's ability to develop midstream opportunities; delays from government approvals and otherwise that could affect the timing of projects; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events.

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

Contacts:

 | Source: Midland States Bancorp, Inc.

EFFINGHAM, Ill., Nov. 02, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) announced today that its Board of Directors declared a quarterly cash dividend of $0.33 per share of its common stock. The dividend is payable on November 20, 2026 to all shareholders of record as of the close of business on November 13, 2026.

The Board of Directors also declared a cash dividend of $0.4844 per depository share on its 7.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A. The dividend will be payable on December 30, 2026 to stockholders of record as of December 15, 2026.

About Midland States Bancorp, Inc.

Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of September 30, 2026, the Company had total assets of approximately $6.82 billion, and its Wealth Management Group had assets under administration of approximately $4.77 billion. The Company provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit midlandsb.com or follow Midland States Bank on LinkedIn.

CONTACTS:
Claire A. Stack, Chief Financial Officer, at [email protected] or (217) 342-7321

Key Takeaways IonQ, D-Wave, Rigetti and QCi plunged 21.3%-35.7% in October, underperforming their industry.Inflation, elevated Treasury yields and AI investment concerns intensified pressure on quantum stocks.November Q3 earnings will test revenue growth, commercial demand, guidance and profitability. Quantum computing stocks endured a difficult October, extending their correction amid broader weakness in technology shares and diminishing investor appetite for speculative growth investments. IonQ (IONQ - Free Report) , D-Wave Quantum (QBTS - Free Report) , Rigetti Computing (RGTI - Free Report) and Quantum Computing Inc. (QUBT - Free Report) or QCi all significantly underperformed the Computer-Integrated Systems industry, raising concerns about the near-term outlook for the emerging quantum computing sector.

Over the past 30 days, IonQ shares plunged 31.7%, while D-Wave declined 35.7%. Rigetti lost 28% and QUBT fell 21.3%. By comparison, the Computer-Integrated Systems industry has declined 17.2% over the same period.

The underperformance points to the vulnerability of quantum pure plays to deteriorating market sentiment, elevated valuations and concerns about the time required to achieve meaningful commercial adoption. However, the upcoming third-quarter 2026 earnings announcements in the first half of November could provide important catalysts.

The central question is whether third-quarter results can restore investor confidence and arrest the quantum-stock downturn or whether continued financial and commercialization challenges will extend the correction.

30-Day Stock Performances
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Macro Uncertainty Adds to Quantum Stocks' October SelloffOctober's price-performance comparison shows that selling pressure was particularly severe among quantum computing companies amid persistent inflation, elevated Treasury yields, uncertainty over Federal Reserve policy and growing concerns about AI investment returns. These factors have weakened investor appetite for speculative growth stocks, particularly companies whose valuations depend heavily on future commercialization prospects.

According to the Bureau of Labor Statistics, U.S. CPI inflation accelerated to 3.7% year over year in September from 3.4% in August. The Federal Reserve maintained its benchmark interest rate at 3.75%-4.00% in October, while the 10-year Treasury yield briefly crossed 5%, increasing pressure on long-duration growth stocks.

Meanwhile, concerns about the returns on massive AI infrastructure investments triggered technology-sector volatility. Reuters reported that the Nasdaq-100 declined more than 5.8% in October as investors reassessed AI spending and valuation expectations. Geopolitical tensions involving Iran also pushed Brent crude above $117 per barrel on Oct. 30, raising fresh inflation concerns.

The Nov. 3 U.S. midterm elections add another layer of policy uncertainty. Collectively, these developments have created an unfavorable environment for speculative technology investments. Quantum companies face additional pressure because substantial research and infrastructure spending, limited commercialization and uncertain profitability make their stocks particularly sensitive to higher interest rates and declining risk appetite.

Can Q3 Earnings Reverse the Quantum Stock Selloff?The upcoming earnings season could be an important turning point for the quantum computing sector.

IonQ: The company is scheduled to report third-quarter 2026 results on Nov. 5. The Zacks Consensus Estimate for IonQ third-quarter 2026 revenues is pegged at $145.3 million, indicating an upside of 264.4% year over year. The consensus estimate for the bottom line is pegged at a loss per share of 30 cents, indicating a 91.6% year-over-year improvement.

It remains to be seen whether SkyWater's contribution supports the company's increased full-year revenue outlook of $450-$460 million. Revenue growth above expectations, reaffirmation of guidance and level of acquisition synergies could improve sentiment toward the stock. However, elevated operating expenses and cash utilization could limit the upside. The stock carries a Zacks Rank #3 (Hold).

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D-Wave: The company is scheduled to report third-quarter 2026 results on Nov. 10. The Zacks Consensus Estimate for QBTS' third-quarter 2026 top line is $4 million, implying a 5.7% year-over-year increase and for the bottom line is a loss of 9 cents per share, a 78.1% year-over-year improvement.

The third-quarter results might depend on whether strong bookings and growing RPO translate into higher recognized revenues. Updates on system deliveries, enterprise contracts and cash burn will also matter. Improved commercial visibility could revive buying interest. The stock carries a Zacks Rank #3.

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Rigetti: The company is scheduled to report third-quarter 2026 results on Nov. 10. The consensus estimate for RGTI’s third-quarter 2026 top line is $3.9 million, suggesting a 99.6% year-over-year increase. The Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 5 cents, implying a 66.7% wider loss year over year.

Superconducting processor development, system deliveries, customer contracts and manufacturing progress are expected to positively contribute to the third-quarter results. Revenue growth accompanied by improved commercial visibility could help restore confidence after October's selloff. The stock carries a Zacks Rank #3.

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QCi:The company is scheduled to report third-quarter 2026 results on Nov. 9. The Zacks Consensus Estimate for QUBT’s third-quarter 2026 revenues is $7.7 million, compared with year-ago revenues of $0.4 million. The estimate for the bottom line is pegged at a loss per share of 7 cents, implying a 40% wider loss year over year.

Photonics-related activities, manufacturing investments and commercial contracts are expected to have contributed to third-quarter revenue growth. Backlog conversion, operating expenses and cash utilization will be important. Evidence of stronger commercial demand could support a recovery following QUBT's relatively smaller October decline. The stock carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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