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Key Takeaways McKesson is expected to post Q1 sales growth of 6.6% and EPS growth of 14.5%.MCK's specialty pharmaceuticals, oncology and biopharma solutions are expected to drive earnings.MCK may see AI gains offset by IRA pricing, biosimilar shifts and GLP-1 demand variability. McKesson Corporation (MCK - Free Report) is scheduled to report first-quarter fiscal 2027 results on Aug 5, after market close.

The Zacks Consensus Estimate for sales is pegged at $104.25 billion, implying 6.6% year-over-year growth. The bottom line estimate is pinned at $9.46, suggesting growth of 14.5%.

The EPS estimates have remained stable over the past seven days.

The company delivered an earnings surprise of 1.12% in the last reported quarter. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.09%.

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

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($9.34 per share) and the Zacks Consensus Estimate is -1.26% for MCK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Driven MCK’s Q1 PerformanceMcKesson is expected to report solid earnings growth for the first quarter of fiscal 2027, supported by continued momentum in specialty pharmaceuticals, oncology services and biopharma solutions, although revenue growth may have been tempered by pharmaceutical pricing dynamics. Management had previously guided fiscal 2027 adjusted EPS growth of 12-14%, supported by sustained operating leverage, expanding specialty volumes and disciplined capital deployment.

The fiscal first quarter is likely to have benefited from resilient prescription demand, continued GLP-1 adoption and productivity gains from automation and AI investments across the distribution network. However, branded pharmaceutical price reductions under the Inflation Reduction Act (IRA), ongoing biosimilar transitions and normal quarter-to-quarter variability in GLP-1 demand may have moderated revenue growth.

The North American Pharmaceutical segment is likely to have remained the primary growth driver, supported by specialty distribution, stable prescription utilization and expanding health-system demand. While GLP-1 volumes are expected to have continued growing year over year, management has cautioned that quarterly fluctuations are likely, and branded drug price declines may have weighed on sales without materially affecting profitability.

The Oncology and Multispecialty segment should have delivered another strong performance during the fiscal first quarter. The growth is likely to have been driven by the addition of new providers, higher specialty distribution volumes and continued benefits from the integration of PRISM Vision and Core Ventures acquisitions. Expansion of the U.S. Oncology Network, growing retina operations and technology initiatives such as Ambient Scribe are also expected to have supported its performance.

The Prescription Technology Solutions segment is likely to have benefited from healthy demand for access, affordability and prior-authorization services, particularly for specialty therapies.  However, third-party logistics revenues might have remained uneven due to launch timing and program mix.

The Medical-Surgical Solutions segment is likely to post modest growth, with management continuing to focus on operational readiness ahead of the planned separation while balancing investments in technology and efficiency.

MCK’s operating margins are expected to have remained healthy, aided by productivity initiatives, AI-enabled supply-chain efficiencies and disciplined expense management. Strong cash generation and continued share repurchases are also likely to have supported earnings growth despite higher interest expense related to financing activities associated with the Medical-Surgical separation.

MCK Share Price PerformanceIn the year-to-date period, MCK shares have gained 4.3%, outperforming its industry’s rise of 1.7% over the same period, underscoring strong investor confidence in the company's specialty momentum and expansion in oncology segment.

MCK has also delivered mixed returns when compared to its MedTech peers. While Cencora (COR - Free Report) has decreased 7.8% year to date, Cardinal Health (CAH - Free Report) has increased 11.9%. While the stock has outperformed the broader Zacks Medical sector’s 0.1% decline, it has underperformed S&P 500 Index’s 9.5% gain.

Image Source: Zacks Investment Research

MCK’s Key Valuation MetricFrom a valuation standpoint, McKesson is trading at a forward 12-month price-to-sales (P/S) multiple of 0.23, reflecting a premium valuation relative to its MedTech peers.

The elevated multiple suggests that investors are assigning a higher valuation to the company's long-term growth prospects, particularly its specialty expansion and productivity gains from automation and AI investments.

MCK currently trades well above Cencora, which carries a forward 12-month P/S multiple of 0.17, and Cardinal Health, which is valued at 0.19X sales.

Image Source: Zacks Investment Research

MCK’s Long-Term Investment VisibilityMcKesson’s long-term investment thesis is supported by its growing presence in higher-margin specialty healthcare services and its continued evolution beyond traditional pharmaceutical distribution. Management is expanding three strategic growth platforms — Oncology and Multispecialty, Prescription Technology Solutions, and Biopharma Services.

The company is also strengthening its core North American Pharmaceutical business through automation, AI-enabled supply-chain capabilities and operational discipline. Continued expansion of the U.S. Oncology Network, integration of the PRISM Vision and Core Ventures acquisitions, and increasing provider participation are expected to enhance specialty distribution volumes and deepen McKesson’s presence in community-based care. At the same time, the planned separation of the Medical-Surgical Solutions business should sharpen strategic focus and improve capital allocation flexibility, allowing the company to concentrate resources on faster-growing, higher-return businesses.

Technology, data analytics and AI remain key long-term differentiators for McKesson. The company continues to invest in AI-driven inventory planning, automated distribution centers, and digital workflow solutions, such as Ambient Scribe, to improve operational efficiency and enhance physician productivity.

Meanwhile, its Prescription Technology Solutions platform is benefiting from rising demand for access, affordability and prior-authorization services as specialty therapies become increasingly complex. Through Ontada’s expanding real-world data capabilities and technology-enabled biopharma services, McKesson is strengthening relationships with manufacturers and healthcare providers while creating additional recurring revenue opportunities.

Combined with sustained specialty pharmaceutical growth, disciplined capital deployment and continued investments in automation and innovation, these initiatives provide strong long-term earnings visibility and position McKesson to deliver durable growth and expanding shareholder value over the coming years.

CompaniesAug 3 (Reuters) - Ameresco (AMRC.N), opens new tab said on Monday it added $1.8 billion in new awards to its project backlog in the second quarter, more than tripling ​from a year ago amid strong demand for energy efficiency ‌and renewable energy programs.

The growth comes as rising demand from AI-focused data centers and rapid electrification of homes, businesses and transportation are expected to push U.S. power ​consumption to record highs in 2026 and 2027 after setting a ​second straight annual record last year, according to the ⁠Energy Information Administration.

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

CEO George Sakellaris told Reuters that about $1.2 billion of the ​new awards booked during the quarter was tied to data center projects, ​while the remaining $600 million came from the company's other business lines, including industrial and commercial customers.

"We successfully advanced three new behind-the-meter data center projects, bringing the total ​number of data center projects in our awarded project backlog to ​five," Sakellaris said in a statement.

Massachusetts-based Ameresco is an energy infrastructure company that helps ‌businesses, ⁠government agencies and others reduce energy costs, upgrade aging facilities and develop renewable and distributed energy resources.

Co-President Nicole Bulgarino said data center projects usually take 12 to 24 months to progress from development to award due ​to the time ​needed for design ⁠and permitting. She added that the company anticipates more projects reaching this stage soon.

Ameresco is currently working ​on projects in multiple U.S. states, with second-quarter activity ​primarily focused ⁠on Texas and Arizona, Bulgarino said.

The company's total project backlog rose about 32% to $6.73 billion in the quarter from a year earlier.

The company posted ⁠an adjusted ​profit of 20 cents per share for ​the quarter ended June 30, beating analysts' average estimate of 16 cents, according to data ​compiled by LSEG.

Reporting by Pooja Menon in Bengaluru; Editing by Maju Samuel

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

Generated second quarter revenue of $200.6 millionSecond quarter diluted EPS of $0.01; adjusted diluted EPS of $0.14Second quarter operating cash flow of $23.2 millionAnnounced strategic growth plan designed to unlock and redeploy $30 million for growth initiatives MINNEAPOLIS, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the Company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended June 30, 2026.

“Our second quarter results reflect the increased discipline and focus we are bringing to the business as we continue to support customers through the evolving coding and reimbursement environment and invest in the long-term adoption of Inspire therapy,” said Tim Herbert, Chairman and CEO of Inspire Medical Systems. “We are also announcing a strategic growth plan designed to generate approximately $30 million of annualized growth investment capacity, which we intend to redeploy into targeted growth initiatives. We believe these actions will strengthen our operating foundation, sharpen our focus on the highest-return opportunities, and position Inspire for sustainable growth and long-term value creation.”

Second Quarter 2026 Financial Results (Second Quarter 2026 compared to Second Quarter 2025)

Revenue decreased 7.6% to $200.6 million, primarily driven by a decline in U.S. revenue, partially offset by growth in International revenue. The U.S. decline was driven primarily by the impacts of evolving coding and reimbursement environment.Gross margin increased 150 bps to 85.5%, primarily due to increased sales mix of the Inspire V system, which has a higher gross margin than the Inspire IV system.Operating expenses decreased $13.8 million, or 7.4%, to $172.0 million, primarily driven by lower stock-based compensation costs due to accelerated stock-based compensation expenses recognized in the prior year period as well as lower marketing expenses.Operating earnings increased $2.8 million to an operating loss of $0.5 million, and operating margin of (0.3)%. Adjusted operating income was $3.2 million, and adjusted operating margin was 1.6%. Interest and dividend income, net decreased by $0.7 million, primarily due to lower average interest rates and lower average cash, cash equivalents, and investment balances.Other expense, net decreased by $3.4 million, primarily due to a $4.0 million impairment charge recognized in the prior year period, partially offset by a decrease in interest and dividend income in the current period due to lower average interest rates and lower average cash, cash equivalents, and investment balances in the current period.The effective tax rate was 89.9% compared to (54.0)%. The increase in the effective tax rate was primarily driven by tax shortfall related to stock-based compensation. For the three months ended June 30, 2025, the Company maintained a full valuation allowance against federal and state deferred tax assets, which was subsequently released at December 31, 2025.Net earnings was $0.3 million and adjusted net earnings was $4.0 million. Diluted EPS was $0.01 and adjusted diluted EPS was $0.14. Financial Condition

Net cash provided by operating activities for the three months ended June 30, 2026 was $23.2 million, compared to $2.7 million in the prior year period. The change was primarily driven by improved working capital, primarily in receivables and inventories.As of June 30, 2026, cash, cash equivalents, and investments increased $10.6 million to $415.2 million as compared to December 31, 2025. Full Year 2026 Guidance

The Company is raising its previously announced revenue outlook to be in the range of $835 million to $875 million. Additionally, the Company now expects annual adjusted operating margin to be in the range of 4% to 6%, diluted EPS to be in the range of $(0.42) to $0.17 and adjusted diluted EPS to be in the range of $1.05 to $1.45.

The Company’s outlook assumes an effective tax rate of approximately 95% to 100% and an adjusted effective tax rate of 30% to 35%, estimated weighted average diluted shares outstanding of approximately 29.4 million, and capital expenditures between $35 million to $40 million.

Strategic Growth Plan

On August 3, 2026, the Company announced a strategic growth plan, named Project Horizon, intended to create additional investment capacity to accelerate revenue growth through:

Aligning resources to revenue growth initiatives;Streamlining the organization; andOptimizing the Company’s supply chain by consolidating production to support quality, scale, and efficiency. The Company expects to incur a total of $20 million to $25 million of pre-tax restructuring charges in connection with the first phase of Project Horizon, including approximately $4 million to $5 million of employee-related costs, and $16 million to $20 million of other expenses, which will be non-cash in nature. These actions are expected to generate approximately $30 million of annualized growth investment capacity which is expected to be invested in revenue growth initiatives. The Company expects the majority of actions related to the restructuring to be completed in the third quarter and all actions to be substantially complete by the end of 2026.

Webcast and Conference Call

The Company's management will host a conference call after market close today, Monday, August 3, 2026, at 5:00 p.m. Eastern Time to discuss these results and answer questions.

To access the conference call, please preregister on https://register-conf.media-server.com/register/BI05401f2d26b24d47a1416936675b79be. Registrants will receive confirmation with dial-in details.

A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/qu4ekmuy/. A replay of the webcast will be available on https://investors.inspiresleep.com starting approximately two hours after the event and archived on the site for two weeks.

About Inspire Medical Systems

Inspire Medical Systems is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com.

Use of Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, including without limitation, adjusted operating income, adjusted operating margin, adjusted earnings before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net earnings, adjusted net earnings per diluted share ("EPS"), adjusted EBITDA, and adjusted EBITDA margin, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).

We define adjusted operating income as operating income or loss adjusted for items that are not indicative of our ongoing operations. Operating income is the most directly comparable GAAP financial measure to adjusted operating income. We define adjusted operating margin in this release as adjusted operating income divided by revenue. Operating margin is the most directly comparable GAAP financial measure to adjusted operating margin. Adjusted earnings before income taxes is defined as earnings before income taxes, adjusted for items that are not indicative of our ongoing operations. Earnings before income taxes is the most directly comparable GAAP financial measure. Adjusted income tax expense is defined as income tax expense, adjusted for items that are not indicative of our ongoing operations. Adjusted effective tax rate is adjusted income tax expense divided by adjusted earnings before income taxes. Income tax expense is the most directly comparable GAAP financial measure. Adjusted net earnings is defined as net earnings or loss, adjusted for items that are not indicative of our ongoing operations. Net earnings or loss is the most directly comparable GAAP financial measure to adjusted net earnings. Adjusted net earnings per diluted share is calculated as adjusted net earnings divided by the diluted weighted average shares outstanding. Net earnings or loss per diluted share is the most directly comparable GAAP financial measure to adjusted net earnings per diluted share. We define adjusted EBITDA as net earnings or loss, less interest and dividend income, net, plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, adjusted for items that are not indicative of our ongoing operations. Net earnings or loss is the most directly comparable GAAP financial measure to adjusted EBITDA. We define adjusted EBITDA margin in this release as adjusted EBITDA divided by revenue. Net earnings or loss margin is the most directly comparable GAAP measure to adjusted EBITDA margin. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in this press release.

These non-GAAP financial measures are presented because we believe they are useful indicators of our operating performance and facilitate a more meaningful trend analysis without the distortion of various adjustment items. Management uses these measures principally as measures of our underlying operating performance, trends, and for planning purposes, including the preparation of our annual operating plan and financial projections. We believe these measures are useful to investors as supplemental information and because they are frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We also believe these non-GAAP financial measures are useful to our management and investors as a measure of comparative operating performance from period to period.

These non-GAAP financial measures should not be considered as an alternative to, or superior to, the most directly comparable GAAP financial measures, as measures of financial performance or cash flows from operations, as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and they should not be construed to imply that our future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, capital expenditures, and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs, and cash costs to replace assets being depreciated and amortized. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on our GAAP results in addition to using non-GAAP financial measures on a supplemental basis. These measures and their definitions are discussed in more detail below and our definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding estimated financial and non-financial impacts from our strategic growth plan (including without limitation the expectations for pre-tax charges in connection with the growth plan, annual growth investment capacity, the extent and manner of the use of investments in revenue growth initiatives as well as the time to complete the strategic growth plan) and potential impacts to our business (including potential actions and solutions as well as timing of these impacts) associated with coding and reimbursement, and our expectations regarding our full year 2026 financial outlook (including without limitation expectations for the impacts of coding and reimbursement, revenue, expected growth, adjusted operating margin, net earnings or loss per diluted share, adjusted net earnings per diluted share, effective tax rate, adjusted effective tax rate, weighted average diluted shares outstanding and capital expenditures). In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ ‘‘could,’’ “future,” “outlook,” “guidance,” ‘‘intend,’’ ‘‘target,’’ ‘‘project,’’ ‘‘contemplate,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘predict,’’ ‘‘potential,’’ ‘‘continue,’’ or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words.

These forward-looking statements are based on management’s current expectations and involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others: our dependency on our Inspire system for revenues; fluctuations in our financial results and the market price of our common stock; our ability to sustain or increase our profitability and our history of operating losses; commercial success and market acceptance of our Inspire therapy; our ability to achieve and maintain adequate and clear levels of coverage or reimbursement for our Inspire system or any future products we may seek to commercialize; competitive companies, technologies, and pharmaceuticals in our industry; our ability to expand our indications and develop and commercialize additional products and enhancements to our Inspire system; our ability to forecast demand and manage our inventory; our dependence on third-parties; risks related to consolidation in the healthcare industry; our ability to expand, manage, and maintain our direct sales and marketing organization, and to market and sell our Inspire system in markets outside of the United States; our ability to manage our growth; risks related to product liability claims and warranty claims; our ability to address quality issues that may arise with our Inspire system; any failure of key information technology systems, processes, or sites or damage to or inability to access our physical facilities; any violations of anti-bribery, anti-corruption, and anti-money laundering laws; future needs for additional financing; risks related to our tax assets and changes in tax laws; our ability to timely commercialize or obtain regulatory approvals or certifications for our Inspire therapy and system; U.S. Food and Drug Administration (FDA) or other United States or foreign regulatory actions affecting us or the healthcare industry generally; our ability to establish and maintain intellectual property protection for our Inspire therapy and system or avoid claims of infringement; and our strategic growth plan may not achieve our intended outcome.

Other important factors that could cause actual results, performance or achievements to differ materially from those contemplated in this press release can be found under the captions “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations“ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website at www.inspiresleep.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date after the date of this press release.

Investor & Media Contact
Ezgi Yagci
Vice President, Investor Relations
[email protected]
617-549-2443

 Inspire Medical Systems, Inc.
Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)
       Three Months Ended Six Months Ended  June 30, June 30,  2026
 2025
 2026
 2025
Revenue $200,581  $217,086  $405,164  $418,403 Cost of goods sold  29,122   34,672   56,793   65,381 Gross profit  171,459   182,414   348,371   353,022 Operating expenses:        Research and development  24,698   26,209   50,524   54,012 Selling, general and administrative  147,275   159,521   299,479   303,811 Total operating expenses  171,973   185,730   350,003   357,823 Operating (loss)  (514)  (3,316)  (1,632)  (4,801)Interest and dividend (income), net  (3,739)  (4,482)  (7,480)  (9,548)Other expense, net  110   3,498   336   2920 Earnings (loss) before income taxes  3,115   (2,332)  5,512   1,827 Income tax expense  2,801   1,260   16,492   2,427 Net earnings (loss) $314  $(3,592) $(10,980) $(600)Basic earnings (loss) per share $0.01  $(0.12) $(0.38) $(0.02)Diluted earnings (loss) per share $0.01  $(0.12) $(0.38) $(0.02)Weighted average shares outstanding:        Basic  28,835,058   29,506,807   28,768,163   29,604,043 Diluted  28,940,846   29,506,807   28,768,163   29,604,043                    Inspire Medical Systems, Inc.
Consolidated Balance Sheets (unaudited)
(in thousands, except share and per share amounts)
       June 30,
2026 December 31, 2025Assets    Current assets:    Cash and cash equivalents $127,761  $104,813 Investments, short-term  192,923   203,455 Accounts receivable, net of allowance for credit losses of $997 and $1,080, respectively  103,340   119,692 Inventories, net  170,451   145,293 Prepaid expenses and other current assets  14,199   10,399 Total current assets  608,674   583,652 Investments, long-term  94,480   96,330 Property and equipment, net  104,330   97,872 Operating lease right-of-use assets  22,599   23,532 Deferred tax assets  77,582   88,667 Other non-current assets  18,328   17,264 Total assets $925,993  $907,317 Liabilities and stockholders' equity    Current liabilities:    Accounts payable $27,102  $36,565 Accrued expenses  44,080   59,490 Total current liabilities  71,182   96,055 Operating lease liabilities, non-current portion  29,093   29,998 Other non-current liabilities  136   104 Total liabilities  100,411   126,157 Stockholders' equity:    Preferred Stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding  —   — Common Stock, $0.001 par value; 200,000,000 shares authorized; 28,907,221 and 28,579,015 issued and outstanding at June 30, 2026 and December 31, 2025, respectively  29   29 Additional paid-in capital  983,670   927,159 Accumulated other comprehensive (loss) income  (645)  464 Accumulated deficit  (157,472)  (146,492)Total stockholders' equity  825,582   781,160 Total liabilities and stockholders' equity $925,993  $907,317            Inspire Medical Systems, Inc.
GAAP to Non-GAAP Reconciliations (unaudited)
(in thousands, except per share amounts)
     Three Months Ended June 30, 2026
  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
 Income Tax Expense Effective Tax Rate Net Earnings
 Diluted EPS
Reported $171,459  $171,973  $(514) (0.3)% $(3,629) $3,115  $2,801  89.9% $314  $0.01 Non-GAAP adjustments:                        Legal fees1  —   (3,697)  3,697  1.9%  —   3,697   1,296     2,401   0.09 Tax impact of stock-based compensation2  —   —   —  —%  —   —   (1,288)    1,288   0.04 Adjusted $171,459  $168,276  $3,183  1.6% $(3,629) $6,812  $2,809  41.2% $4,003  $0.14    Three Months Ended June 30, 2025  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) (Loss) Earnings Before Income Taxes Income Tax Expense
 Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $182,414  $185,730  $(3,316) (1.5)% $(984) $(2,332) $1,260  (54.0)% $(3,592) $(0.12)Non-GAAP adjustments:                      Stock-based compensation expense3  —   (11,155)  11,155  5.1%  —   11,155   2,770     8,385   0.28 Legal fees1  —   (1,736)  1,736  0.8%  —   1,736   431     1,305   0.04 Asset impairment charge4  —   —   —  —%  (4,046)  4,046   —     4,046   0.14 Adjusted $182,414  $172,839  $9,575  4.4% $(5,030) $14,605  $4,461  30.5% $10,144  $0.34                                         1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax expense recorded as excess tax expense for stock-based compensation.
3 Represents accelerated stock-based compensation expense for certain employees who were retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
4 Represents a non-cash impairment of a strategic investment.

 Inspire Medical Systems, Inc.
GAAP to Non-GAAP Reconciliations (unaudited)
(in thousands, except per share amounts)
     Six Months Ended June 30, 2026  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
 Income Tax Expense Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $348,371  $350,003  $(1,632) (0.4)% $(7,144) $5,512  $16,492  299.2% $(10,980) $(0.38)Non-GAAP adjustments:                      Legal fees1  —   (5,133)  5,133  1.3%  —   5,133   1,676     3,457   0.12 Tax impact of stock-based compensation2  —   —   —  —%  —   —   (14,375)    14,375   0.50 Adjusted $348,371  $344,870  $3,501  0.9% $(7,144) $10,645  $3,793  35.6% $6,852  $0.24    Six Months Ended June 30, 2025  Gross Profit
 Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
 Income Tax Expense
 Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $353,022  $357,823  $(4,801) (1.1)% $(6,628) $1,827  $2,427  132.8% $(600) $(0.02)Non-GAAP adjustments:                       Stock-based compensation expense3  —   (11,155)  11,155  2.6%  —   11,155   2,770     8,385   0.28 Legal fees1  —   (1,736)  1,736  0.4%  —   1,736   431     1,305   0.04 Asset impairment charge4  —   —   —  —%  (4,046)  4,046   —     4,046   0.14 Adjusted $353,022  $344,932  $8,090  1.9% $(10,674) $18,764  $5,628  30.0% $13,136  $0.44                          1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax expense recorded as excess tax expense for stock-based compensation.
3 Represents accelerated stock-based compensation expense for certain employees who were retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
4 Represents a non-cash impairment of a strategic investment.

 Reconciliation of GAAP Net Earnings (Loss) to Non-GAAP Adjusted EBITDA
       Three Months Ended Six Months Ended  June 30, June 30,  2026
 2025
 2026
 2025
Net earnings (loss) $314  $(3,592) $(10,980) $(600)Interest and dividend income, net  (3,739)  (4,482)  (7,480)  (9,548)Income tax expense  2,801   1,260   16,492   2,427 Depreciation and amortization  4,597   3,414   9,707   6,458 EBITDA  3,973   (3,400)  7,739   (1,263)Stock-based compensation expense1  31,226   41,724   61,915   72,780 Legal fees2  3,697   1,736   5,133   1,736 Asset impairment charge3  —   4,046   —   4,046 Adjusted EBITDA $38,896  $44,106  $74,787  $77,299                   1 Total stock-based compensation expense.
2 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
3 Represents a non-cash impairment of a strategic investment.

 Reconciliation of GAAP Net Earnings (Loss) Margin and Non-GAAP Adjusted EBITDA Margin
       Three Months Ended Six Months Ended  June 30, June 30,  2026
 2025
 2026
 2025
Net earnings (loss) margin1 0.2% (1.7)% (2.7)% (0.1)%Interest and dividend income, net (1.9)% (2.1)% (1.8)% (2.3)%Income tax expense 1.4% 0.6% 4.1% 0.6%Depreciation and amortization 2.3% 1.6% 2.4% 1.5%Stock-based compensation expense2 15.6% 19.2% 15.2% 17.4%Legal fees3 1.8% 0.8% 1.3% 0.4%Asset impairment charge4 —% 1.9% —% 1.0%Adjusted EBITDA margin 19.4% 20.3% 18.5% 18.5%              1 Net earnings (loss) margin is calculated as net earnings (loss) divided by total revenue.
2 Total stock-based compensation expense.
3 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
4 Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

 Full Year 2026 OutlookReconciliation of Full Year 2026 Outlook of Estimated Net Earnings per Diluted Share
to Adjusted Net Earnings per Diluted Share

        Outlook Full Year 2026
 Tax Rate Outlook Full Year 2026  Low Range High Range
 Low Range High RangeNet earnings per diluted share $(0.42) $0.17  95.0% 100.0%Legal fees1  0.25   0.23     Restructuring charges2  0.64   0.51     Tax impact of stock-based compensation3  0.58   0.54     Adjusted net earnings per diluted share $1.05  $1.45  30.0% 35.0%                1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 Restructuring costs related to Project Horizon.
3 Represents the estimated tax impact of permanent differences that arise between the expense recognized for financial reporting of stock-based compensation awards and the tax deduction the Company receives (tax windfall or shortfall). Accounting standards codification guidance requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. These amounts represent the estimated discrete tax impact for stock-based compensation during the period presented.

A U.S. flag flies in front of the world headquarters of Vertex Pharmaceuticals in Boston, Massachusetts, U.S., October 23, 2019. REUTERS/Brian Snyder Purchase Licensing Rights, opens new tab

CompaniesAug 3 (Reuters) - Vertex Pharmaceuticals (VRTX.O), opens new tab on Monday raised the upper end of its annual revenue forecast, banking on robust demand for its cystic ​fibrosis treatments.

The company expects its annual revenue to ‌be between $13.1 billion and $13.2 billion, compared with $12.95 billion to $13.1 billion previously. Analysts on average expect 2026 revenue of $13.07 billion, according to data compiled ​by LSEG.

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Vertex said its annual outlook excludes the ​pending Crinetics acquisition and that an updated forecast will be provided ⁠after the deal closes, which is expected in the ​third quarter.

Here are more details:

Vertex's $10 billion acquisition of Crinetics expands its ​reach beyond cystic fibrosis, adding endocrine disorders to a diversification strategy that already includes povetacicept in kidney, Casgevy in sickle cell and Journavx ​in pain, analysts had said.

The company's new cystic fibrosis ​drug, once-daily triple combination therapy Alyftrek, brought in sales of $573.6 million during ‌the second ⁠quarter, compared with $156.8 million a year ago.

The company's older cystic fibrosis drug, combination therapy Trikafta, posted quarterly sales of $2.50 billion, missing estimates of $2.65 billion.

Cystic fibrosis is a rare and ​progressive genetic ​disorder caused by ⁠the absence of a protein regulating salt and water transport in and out of ​cells, leading to severe respiratory and digestive problems.

Second-quarter ​total ⁠revenue rose 12% to $3.33 billion from a year ago, beating estimates of $3.23 billion. The growth was driven by the continued performance ⁠of ​cystic fibrosis therapies, the company said.

Vertex reported ​quarterly profit of $4.73 per share on an adjusted basis, in line with estimates.

Reporting ​by Sneha S K in Bengaluru; Editing by Shreya Biswas

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

, /PRNewswire/ -- CACI International Inc (NYSE: CACI) announced today that it will serve as one of Oracle's technology partners for the U.S. Office of Personnel Management's (OPM) Federal Human Resources Information Technology (HRIT) Modernization contract. Working alongside Oracle, Baker Tilly, and Deloitte on this 10-year contract worth nearly $400 million, CACI will modernize and consolidate disparate federal human resource systems into a single, secure, cloud-based platform for federal civilian employees, including HR professionals and leaders. The consolidation of federal HR systems into a single shared platform is expected to reduce taxpayer costs by more than 90 percent while improving efficiency, security, and service delivery across the government.

"Modernizing federal human resources systems at this scale requires trusted technology partners and deep implementation experience," said John Mengucci, CACI President and Chief Executive Officer. " We have already demonstrated that we can deliver complex HR modernization across the federal government. We will apply that experience to help OPM build a secure, modern platform that strengthens data quality, improves the employee experience, and provides the reliability and security federal agencies expect."

CACI will support the development, deployment, and implementation of the Oracle Fusion HCM SaaS solution, The platform will include embedded artificial intelligence, standardized data exchange, and continuously updated privacy and security protections.

The award builds on CACI and Oracle's proven success delivering large-scale federal HR modernization. Together, the companies supported the Army's Integrated Personnel and Pay System–Army (IPPS-A), the first successful modernization of the Army's personnel and pay environment after decades of unsuccessful efforts. IPPS-A now supports more than 1.1 million soldiers and established a proven model for transforming complex federal HR systems.

The OPM program represents the next step in applying that experience across a large federal HR modernization market. It also expands a long-standing CACI and Oracle partnership that includes work on the Global Combat Support System–Marine Corps (GCSS-MC) platform, the Defense Agencies Initiative (DAI), and the U.S. Air Force's Defense Enterprise Accounting and Management System (DEAMS) program.

About CACI
CACI International Inc (NYSE: CACI) is a technology-first national security company that expands the limits of national security through innovation, discipline, and operational excellence. We deliver advanced technologies that help our customers move faster, operate more efficiently, and anticipate and defeat evolving threats. Our 27,000 talented employees and strong culture drive our success and have earned CACI recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 500™, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit caci.com.

There are statements made herein which do not address historical facts and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the risk factors set forth in CACI's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and other such filings that CACI makes with the Securities and Exchange Commission from time to time. Any forward-looking statements should not be unduly relied upon and only speak as of the date hereof.

Corporate Communications and Media:                                     

Investor Relations:

Gino Bona                                                                

George Price

Executive Vice President, Corporate Communications            

Senior Vice President, Investor Relations

(571) 597-2787, [email protected]                                    

(703) 841-7818, [email protected]

SOURCE CACI International Inc

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Robert Half Inc. (NYSE: RHI) today announced that its board of directors declared a quarterly cash dividend of $0.59 per share on the company's common stock. The dividend is payable on September 15, 2026, to shareholders of record at the close of business on August 25, 2026.

About Robert Half

Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half has been recognized as one of America's Most Innovative Companies by Fortune and, with Protiviti, has been named as a Fortune® Most Admired Company™ and one of the 100 Best Companies to Work For®. Explore talent solutions, research and insights at roberthalf.com.

SOURCE Robert Half

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OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (“Paycom”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, announced today that its Board of Directors declared a cash dividend in the amount of $0.375 per share of common stock, to be paid on Sept. 8, 2026, to all stockholders of record as of the close of business on Aug. 24, 2026.

About Paycom

Paycom Software, Inc. (NYSE: PAYC) is a cloud-based human capital management software provider that allows organizations of all sizes across the U.S. and internationally to set numerous HR and payroll tasks to “automatic” through employee-first technology. Built on a truly single database, Paycom’s full-solution automation manages the entire employment life cycle, helping organizations streamline processes and improve data accuracy. With its industry-first AI engine, IWant™, Paycom provides instant access to accurate employee data without requiring users to navigate or learn the software. For over 25 years, Paycom has been repeatedly recognized by third‑party reviewers as a leading payroll and HCM solution.

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SCOTTSDALE, Ariz., Aug. 03, 2026 (GLOBE NEWSWIRE) -- onsemi (the “Company”) (Nasdaq: ON) today announced its second quarter 2026 results with the following highlights:

Revenue of $1,604 million, increasing 9% year-over-yearGAAP gross margin of 38.4% and non-GAAP gross margin of 39.3%GAAP operating margin of 16.1% and non-GAAP operating margin 20.8%GAAP diluted earnings per share of $0.56 and non-GAAP diluted earnings per share $0.74Cash from operations increased by 150% and free cash flow of $425.4 million quadrupled year-over-yearShare repurchases of $332 million, bringing year-to-date shareholder returns to approximately 105% of free cash flow “We delivered revenue, gross margin and earnings per share above the midpoint of guidance, reflecting strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions,” said Hassane El-Khoury, President and CEO of onsemi. “AI data center remains our fastest-growing business, and we now expect revenue to more than double in 2026, demonstrating the strength of our intelligent power portfolio and growing customer adoption across the power tree.”

“Our results demonstrate the operating leverage in our business model,” said Thad Trent, EVP and CFO of onsemi. “Year-over-year earnings per share grew four times faster than revenue, driven by gross margin expansion and disciplined cost management. Free cash flow margin expanded from approximately 7% to 27% year-over-year, reflecting the strength of our operating model, and as demand continues to improve, we are increasingly confident in our ability to drive profitable growth and long-term shareholder value.”

Business Highlights:

Announced the planned acquisition of Synaptics, expanding capabilities in connected compute at accretive gross margins to support a market expansion while complementing leadership in power and sensingExpanded role in NVIDIA MGX ecosystem as AI infrastructure power demands accelerateSecured strategic AI data center platform wins with Great Wall, a leading China cloud infrastructure power supplier, expanding EliteSiC and silicon MOSFETs and controller contentLaunched ​​GaNEXUS​, onsemi's gallium nitride power portfolio spanning 40V to 650V, serving AI data centers, robotics, and industrial infrastructure applicationsExtended leadership in automotive zonal architecture and on-board charging with Rivian’s R2 platform with power solutions that enable efficient power distribution and conversion Selected financial results for the quarter are shown below with comparable periods (unaudited):

 GAAP Non-GAAP(Revenue and Net Income in millions)Q2 2026
 Q1 2026
 Q2 2025
  Q2 2026
 Q1 2026
 Q2 2025
 Revenue$1,603.5 $1,513.3 $1,468.7  $1,603.5 $1,513.3 $1,468.7 Gross Margin 38.4%  38.5%  37.6%   39.3%  38.5%  37.6% Operating Margin 16.1% (3.5)%  13.2%   20.8%  19.1%  17.3% Net Income (loss) attributable to ON Semiconductor Corporation$226.8 ($33.4) $170.3  $293.8 $253.1 $221.3 Diluted Earnings (loss) Per Share$0.56 ($0.08) $0.41  $0.74 $0.64 $0.53                      Revenue Summary
(in millions)
(Unaudited)
       Quarters Ended
   Business SegmentQ2 2026 Q1 2026 Q2 2025  Sequential
ChangeYear-over-
Year ChangePSG$829.0 $736.6 $698.2  13%19%AMG 545.7  540.4  555.9  1%(2)%ISG 228.8  236.3  214.6  (3)%7%Total$1,603.5 $1,513.3 $1,468.7  6%9%                THIRD QUARTER 2026 OUTLOOK

The following table outlines onsemi’s projected third quarter of 2026 GAAP and non-GAAP outlook.

 Total onsemi
GAAPSpecial
Items **Total onsemi
Non-GAAP***Revenue$1,650 to $1,750 million-$1,650 to $1,750 millionGross Margin39.9% to 41.9%0.1%40.0% to 42.0%Operating Expenses$318 to $333 million$15 million$303 to $318 millionOther Income and Expense (including interest), net($18 million)-($18 million)Diluted Earnings Per Share$0.79 to $0.91$0.02$0.81 to $0.93Diluted Shares Outstanding *402 million7 million395 million *Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher. **Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; restructuring-related cost of revenue charges; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook. ***We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.   TELECONFERENCE

onsemi will host a conference call for the financial community at 5 p.m. Eastern Time (ET) on August 3, 2026 to discuss this announcement and onsemi’s second quarter 2026 results. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call by pre-registering here.

About onsemi

onsemi (Nasdaq: ON) delivers intelligent power and sensing technologies that enable electrification, energy efficiency, safety, and automation across automotive, industrial, and AI data center end-markets. With a highly differentiated and innovative product portfolio, onsemi helps customers solve complex challenges to achieve higher efficiency, improved performance, and lower system cost, while supporting a safer, cleaner, and more energy-efficient world. onsemi is part of the S&P 500® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.

Krystal HeatonParag AgarwalDirector, Head of Public RelationsVice President - Investor Relations & Corporate Developmentonsemionsemi(480) 242-6943(602) [email protected]@onsemi.com   This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the third quarter of 2026. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 9, 2026 (the “2025 Form 10-K”) and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2025 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

    ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share and percentage data)

     Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Revenue$1,603.5  $1,513.3  $1,468.7  $3,116.8  $2,914.4 Cost of revenue 987.2   930.2   916.8   1,917.4   2,068.7 Gross profit 616.3   583.1   551.9   1,199.4   845.7 Gross margin 38.4%  38.5%  37.6%  38.5%  29.0%Operating expenses:         Research and development 140.8   144.3   143.8   285.1   307.9 Selling and marketing 63.3   63.0   63.3   126.3   131.6 General and administrative 101.9   89.4   91.2   191.3   175.6 Amortization of intangible assets 10.5   10.5   11.0   21.0   22.4 Restructuring, asset impairments and other, net 41.2   329.3   49.2   370.5   588.5 Total operating expenses 357.7   636.5   358.5   994.2   1,226.0 Operating income (loss) 258.6   (53.4)  193.4   205.2   (380.3)Other income (expense), net:         Interest expense (13.7)  (12.7)  (17.9)  (26.4)  (35.9)Interest income 17.4   17.7   25.2   35.1   51.8 Other income 8.6   3.8   1.5   12.4   5.6 Other income (expense), net 12.3   8.8   8.8   21.1   21.5 Income (loss) before income taxes 270.9   (44.6)  202.2   226.3   (358.8)Income tax (provision) benefit (43.4)  11.7   (30.5)  (31.7)  45.3 Net income (loss) 227.5   (32.9)  171.7   194.6   (313.5)Less: Net income attributable to non-controlling interest (0.7)  (0.5)  (1.4)  (1.2)  (2.3)Net income (loss) attributable to ON Semiconductor Corporation$226.8  $(33.4) $170.3  $193.4  $(315.8)          Net income (loss) per share of common stock attributable to ON Semiconductor Corporation:         Basic$0.58  $(0.08) $0.41  $0.49  $(0.76)Diluted$0.56  $(0.08) $0.41  $0.48  $(0.76)Weighted average common shares outstanding:         Basic 390.3   394.1   414.6   392.2   418.0 Diluted 404.4   394.1   414.9   401.5   418.0                      ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED BALANCE SHEETS

(in millions)

       July 3, 2026 April 3, 2026 December 31, 2025Assets     Cash and cash equivalents$3,514.5  $2,003.6  $2,147.6 Short-term investments 350.0   400.0   400.0 Receivables, net 897.2   862.8   908.0 Inventories 2,047.5   2,049.2   1,989.6 Assets held-for-sale 31.4   40.4   25.0 Other current assets 441.2   419.6   352.9 Total current assets 7,281.8   5,775.6   5,823.1 Property, plant and equipment, net 2,924.9   3,035.6   3,369.0 Goodwill 1,687.6   1,679.9   1,679.9 Intangible assets, net 329.4   332.2   343.9 Deferred tax assets 1,014.3   933.2   929.1 ROU financing lease assets —   —   23.1 Other assets 247.1   254.3   356.0 Total assets$13,485.1  $12,010.8  $12,524.1 Liabilities and Stockholders’ Equity     Accounts payable$498.3  $486.1  $572.3 Accrued expenses and other current liabilities 801.0   698.7   714.9 Current portion of financing lease liabilities 0.5   0.5   0.5 Current portion of long-term debt 802.1   —   — Total current liabilities 2,101.9   1,185.3   1,287.7 Long-term debt 3,657.3   2,982.9   2,980.5 Deferred tax liabilities 46.8   46.5   41.7 Long-term financing lease liabilities 22.8   23.1   23.8 Other long-term liabilities 417.8   452.2   498.5 Total liabilities 6,246.6   4,690.0   4,832.2 ON Semiconductor Corporation stockholders’ equity:     Common stock 6.3   6.3   6.2 Additional paid-in capital 5,632.8   5,582.5   5,538.6 Accumulated other comprehensive loss (67.1)  (61.7)  (55.5)Accumulated earnings 8,435.3   8,208.5   8,241.9 Less: Treasury stock, at cost (6,788.6)  (6,433.9)  (6,057.9)Total ON Semiconductor Corporation stockholders’ equity 7,218.7   7,301.7   7,673.3 Non-controlling interest 19.8   19.1   18.6 Total stockholders’ equity 7,238.5   7,320.8   7,691.9 Total liabilities and stockholders’ equity$13,485.1  $12,010.8  $12,524.1                                   Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Cash flows from operating activities:         Net income (loss)$227.5  $(32.9) $171.7  $194.6  $(313.5)Adjustments to reconcile net income (loss) to net cash provided by operating activities:         Depreciation and amortization 141.3   286.7   156.4   428.0   324.6 Gain on sale and disposal of fixed assets (0.3)  (1.1)  (5.8)  (1.4)  (5.8)Amortization of debt discount and issuance costs 3.8   2.9   2.8   6.7   5.7 Share-based compensation 37.4   37.3   34.4   74.7   68.3 Non-cash asset impairment charges 16.3   147.0   40.6   163.3   472.1 Change in deferred tax balances (12.8)  2.7   (18.5)  (10.1)  (32.2)Other 1.9   (2.2)  2.5   (0.3)  4.3 Changes in assets and liabilities 44.6   (201.3)  (199.8)  (156.7)  263.1 Net cash provided by operating activities 459.7   239.1   184.3   698.8   786.6 Cash flows from investing activities:         Payments for acquisition of property, plant, and equipment (34.3)  (21.9)  (78.2)  (56.2)  (225.8)Proceeds from sale of property, plant and equipment 7.6   1.0   6.5   8.6   6.7 Purchase of short-term investments (350.0)  (300.0)  (300.0)  (650.0)  (550.0)Proceeds from the maturity of short-term investments 400.0   300.0   250.0   700.0   550.0 Payments for acquisition of a business, net of cash acquired (13.0)  —   —   (13.0)  (117.5)Other (3.0)  4.2   —   1.2   — Net cash provided by (used in) investing activities 7.3   (16.7)  (121.7)  (9.4)  (336.6)Cash flows from financing activities:         Proceeds for common stock issuance under the ESPP 5.3   6.7   5.3   12.0   10.6 Payment of tax withholding for RSUs (18.6)  (26.9)  (2.7)  (45.5)  (25.1)Repurchase of common stock (344.8)  (345.7)  (302.3)  (690.5)  (602.4)Issuance and borrowings under debt agreements 1,473.7   —   —   1,473.7   — Reimbursement of debt issuance and other financing costs 3.4   —   —   3.4   — Payment of debt issuance and other financing costs (4.2)  —   —   (4.2)  — Payment for purchase of bond hedges (351.6)  —   —   (351.6)  — Proceeds from issuance of warrants 281.0   —   —   281.0   — Payment of finance lease obligations (0.1)  (0.1)  (0.4)  (0.2)  (0.8)Net cash provided by (used in) financing activities 1,044.1   (366.0)  (300.1)  678.1   (617.7)Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.3)  (0.3)  1.9   (0.6)  3.9 Net increase (decrease) in cash, cash equivalents and restricted cash 1,510.8   (143.9)  (235.6)  1,366.9   (163.8)Beginning cash, cash equivalents and restricted cash 2,005.1   2,149.0   2,765.2   2,149.0   2,693.4 Ending cash, cash equivalents and restricted cash$3,515.9  $2,005.1  $2,529.6  $3,515.9  $2,529.6                         Quarters Ended Six Months Ended   July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Reconciliation of GAAP to non-GAAP gross profit:         GAAP gross profit$616.3  $583.1  $551.9  $1,199.4  $845.7  Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 1.2   1.2   1.3   2.4   2.6  c)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2   Total special items 14.6   0.2   0.6   14.8   285.3 Non-GAAP gross profit$630.9  $583.3  $552.5  $1,214.2  $1,131.0 Reconciliation of GAAP to non-GAAP gross margin:         GAAP gross margin 38.4%  38.5%  37.6%  38.5%  29.0% Special items:          a)Restructuring-related inventory and other charges 0.8% (0.1)% (0.1)%  0.4%  9.7% b)Amortization of intangible assets 0.1%  0.1%  0.1%  0.1%  0.1% c)Amortization of fair market value step-up of inventory —%  —%  0.1%  —%  —%  Total special items 0.9%  —%  0.1%  0.5%  9.8%Non-GAAP gross margin 39.3%  38.5%  37.6%  39.0%  38.8%Reconciliation of GAAP to non-GAAP operating expenses:         GAAP operating expenses$357.7  $636.5  $358.5  $994.2  $1,226.0  Special items:          a)Amortization of intangible assets (10.5)  (10.5)  (11.0)  (21.0)  (22.4) b)Restructuring, asset impairments and other charges, net (41.2)  (329.3)  (49.2)  (370.5)  (588.5) c)Third-party acquisition and divestiture-related costs (7.6)  (1.4)  (0.6)  (9.0)  (2.9) d)Adjustments to contingent consideration (1.6)  (1.6)  —   (3.2)  —   Total special items (60.9)  (342.8)  (60.8)  (403.7)  (613.8)Non-GAAP operating expenses$296.8  $293.7  $297.7  $590.5  $612.2 Reconciliation of GAAP to non-GAAP operating income:         GAAP operating income (loss)$258.6  $(53.4) $193.4  $205.2  $(380.3) Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0  c)Restructuring, asset impairments and other charges, net 41.2   329.3   49.2   370.5   588.5  d)Third-party acquisition and divestiture-related costs 7.6   1.4   0.6   9.0   2.9  e)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2  f)Adjustments to contingent consideration 1.6   1.6   —   3.2   —   Total special items 75.5   343.0   61.4   418.5   899.1 Non-GAAP operating income$334.1  $289.6  $254.8  $623.7  $518.8 Reconciliation of GAAP to non-GAAP operating margin(operating income / revenue):         GAAP operating margin 16.1% (3.5)%  13.2%  6.6% (13.0)% Special items:          a)Restructuring related inventory and other charges 0.8% (0.1)% (0.1)%  0.4%  9.7% b)Amortization of intangible assets 0.7%  0.8%  0.8%  0.8%  0.9% c)Restructuring, asset impairments and other charges, net 2.6%  21.8%  3.3%  11.9%  20.2% d)Third-party acquisition and divestiture-related costs 0.5%  0.1%  —%  0.3%  0.1% e)Amortization of fair market value step-up of inventory —%  —%  0.1%  —%  —% f)Adjustments to contingent consideration 0.1%  0.1%  —%  0.1%  —%  Total special items 4.7%  22.7%  4.1%  13.5%  30.9%Non-GAAP operating margin 20.8%  19.1%  17.3%  20.0%  17.8%Reconciliation of GAAP to non-GAAP income before income taxes:         GAAP income (loss) before income taxes$270.9  $(44.6) $202.2  $226.3  $(358.8) Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0  c)Restructuring, asset impairments and other charges, net 41.2   329.3   49.2   370.5   588.5  d)Third-party acquisition and divestiture-related costs 7.6   1.4   0.6   9.0   2.9  e)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2  f)Adjustments to contingent consideration 1.6   1.6   —   3.2   —   Total special items 75.5   343.0   61.4   418.5   899.1 Non-GAAP income before income taxes$346.4  $298.4  $263.6  $644.8  $540.3 Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation:         GAAP net income (loss) attributable to ON Semiconductor Corporation$226.8  $(33.4) $170.3  $193.4  $(315.8) Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0  c)Restructuring, asset impairments and other charges, net 41.2   329.3   49.2   370.5   588.5  d)Third-party acquisition and divestiture-related costs 7.6   1.4   0.6   9.0   2.9  e)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2  f)Adjustments to contingent consideration 1.6   1.6   —   3.2   —  g)Adjustment to Income taxes (8.5)  (56.5)  (10.4)  (65.0)  (130.4)  Total special items 67.0   286.5   51.0   353.5   768.7 Non-GAAP net income attributable to ON Semiconductor Corporation$293.8  $253.1  $221.3  $546.9  $452.9 Reconciliation of GAAP to non-GAAP diluted shares outstanding:         GAAP diluted shares outstanding 404.4   394.1   414.9   401.5   418.0  Special items:          a)Less: dilutive shares attributable to convertible notes (7.4)  —   —   (4.9)  —  b)Add: dilutive shares attributable to share-based awards —   1.9   —   —   0.4   Total special items (7.4)  1.9   —   (4.9)  0.4 Non-GAAP diluted shares outstanding 397.0   396.0   414.9   396.6   418.4 Non-GAAP diluted earnings per share:         Non-GAAP net income attributable to ON Semiconductor Corporation$293.8  $253.1  $221.3  $546.9  $452.9 Non-GAAP diluted shares outstanding 397.0   396.0   414.9   396.6   418.4 Non-GAAP diluted earnings per share$0.74  $0.64  $0.53  $1.38  $1.08 Reconciliation of net cash provided by operating activities to free cash flow:         Net cash provided by operating activities$459.7  $239.1  $184.3  $698.8  $786.6  Special items:          a)Payments for acquisition of property, plant and equipment (34.3)  (21.9)  (78.2)  (56.2)  (225.8)  Total special items (34.3)  (21.9)  (78.2)  (56.2)  (225.8)Free cash flow$425.4  $217.2  $106.1  $642.6  $560.8                      Certain of the amounts in the above tables may not total due to rounding of individual amounts.

FREE CASH FLOW

 Quarters Ended   October 3, 2025 December 31, 2025 April 3, 2026 July 3, 2026 Last Twelve MonthsNet cash provided by operating activities$418.7  $554.5  $239.1  $459.7  $1,672.0 Payments for acquisition of property, plant and equipment (46.3)  (69.1)  (21.9)  (34.3)  (171.6)Free cash flow$372.4  $485.4  $217.2  $425.4  $1,500.4           Revenue$1,550.9  $1,530.1  $1,513.3  $1,603.5  $6,197.8                      SHARE-BASED COMPENSATION

Total share-based compensation related to restricted stock units, stock grant awards and the employee stock purchase plan was as follows:

 Quarters Ended
 Six Months Ended
 July 3, 2026
 April 3, 2026
 July 4, 2025
 July 3, 2026
 July 4, 2025
Cost of revenue$6.8  $6.4  $6.1  $13.2  $12.1 Research and development 6.0   7.3   6.3   13.3   12.6 Selling and marketing 4.8   5.1   4.9   9.9   9.6 General and administrative 19.8   18.5   17.1   38.3   34.0 Total share-based compensation$37.4  $37.3  $34.4  $74.7  $68.3                      SUPPLEMENTAL FINANCIAL DATA

 Quarters Ended
 Six Months Ended
 July 3, 2026
 April 3, 2026
 July 4, 2025
 July 3, 2026
 July 4, 2025
Net cash provided by operating activities$459.7  $239.1  $184.3  $698.8  $786.6 Free cash flow$425.4  $217.2  $106.1  $642.6  $560.8 Cash paid for income taxes$50.8  $46.6  $65.0  $97.4  $86.5                Depreciation and amortization (1)$141.3  $286.7  $156.4  $428.0  $324.6 Less: Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0 Depreciation and amortization (excl. amortization of intangible assets) (1)$129.6  $275.0  $144.1  $404.6  $299.6                (1) Accelerated depreciation and amortization related to the 2025 and 2026 Manufacturing Realignment Programs$—  $136.5  $2.0  $136.5  $14.5                      To supplement the consolidated financial results prepared in accordance with GAAP, onsemi uses certain non-GAAP measures, which are adjusted from the most directly comparable GAAP measures to exclude items related to the amortization of acquisition-related intangibles, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, inventory valuation adjustments, in-process research and development expenses, restructuring, asset impairments and other, net, goodwill impairment charges, gains and losses on debt prepayment, non-cash interest expense, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, tax impact of these items and certain other non-recurring items, as necessary. Management does not consider the effects of these items in evaluating the core operational activities of onsemi. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate onsemi’s current performance. In addition, the Company believes that most analysts covering onsemi use the non-GAAP measures to evaluate onsemi’s performance. Given management’s and other relevant parties’ use of these non-GAAP measures, onsemi believes these measures are important to investors in understanding onsemi’s current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in onsemi’s core business across different time periods. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.

Non-GAAP Gross Profit and Gross Margin

The use of non-GAAP gross profit and gross margin allows management to evaluate, among other things, the gross profit and gross margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, amortization of intangible assets, amortization of appraised inventory fair market value step-up, impact of business wind down and non-recurring facility costs. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Operating Income and Operating Margin

The use of non-GAAP operating income and operating margin allows management to evaluate, among other things, the operating income and operating margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, amortization and impairments of intangible assets, third party acquisition and divestiture-related costs, restructuring charges, asset impairments and certain other special items as necessary. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Net Income Attributable to ON Semiconductor Corporation and Non-GAAP Diluted Earnings Per Share

The use of non-GAAP net income attributable to ON Semiconductor Corporation and non-GAAP diluted earnings per share allows management to evaluate the operating results of onsemi’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally, the restructuring related cost of revenue charges, amortization and impairments of intangible assets, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, restructuring, asset impairments, gains and losses on debt prepayment, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, discrete tax items and other non-GAAP tax adjustments and certain other special items, as necessary. In addition, these measures are important components of management’s internal performance measurement and incentive and reward process, as they are used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, setting targets and forecasting future results. For our non-GAAP reporting we apply a projected, normalized non-GAAP effective tax rate of 15% for 2026 and 16% for 2025. We calculate this non-GAAP effective tax rate on an annual basis. We may update this non-GAAP effective tax rate at any time for a variety of reasons, including, but not limited to, the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Management presents these non-GAAP financial measures to enable investors and analysts to understand the results of operations of onsemi’s core businesses and, to the extent comparable, to compare our results of operations on a more consistent basis against those of other companies in our industry.

Free Cash Flow

The use of free cash flow allows management to evaluate, among other things, the ability of the Company to make interest or principal payments on its debt. Free cash flow is defined as the difference between cash flow from operating activities and capital expenditures disclosed under investing activities in the consolidated statement of cash flows. Free cash flow is not an alternative to cash flow from operating activities as a measure of liquidity. It is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our financial performance independent of the cash capital expenditures.

Non-GAAP Diluted Share Count

The use of non-GAAP diluted share count allows management to evaluate, among other things, the potential dilution due to the outstanding restricted stock units excluding the dilution from the convertible notes that is covered by hedging activity up to a certain threshold. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count includes the anti-dilutive impact of the Company’s hedge transactions issued concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding.

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NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of MarketAxess Holdings Inc. (NasdaqGS: MKTX) to Intercontinental Exchange, Inc. (NYSE: ICE). Under the terms of the proposed transaction, shareholders of MarketAxess will receive $167.00 in cash for each share of MarketAxess that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at (833) 538-3612, or visit https://www.ksfcounsel.com/cases/nasdaqgs-mktx/ to learn more.

To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.

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WALL, N.J.--(BUSINESS WIRE)--New Jersey Resources Corporation (NYSE: NJR) today reported financial and operating results for its fiscal 2026 third quarter and year-to-date period ended June 30, 2026.

Financial Highlights

Fiscal 2026 third-quarter consolidated net income of $9.7 million, or $0.10 per share, compared with net loss of $(15.1) million, or $(0.15) per share, in the third quarter of fiscal 2025 Fiscal 2026 third-quarter consolidated net financial earnings (NFE), a non-GAAP financial measure, of $11.3 million, or $0.11 per share, compared with $6.2 million, or $0.06 per share, in the third quarter of fiscal 2025 Fiscal 2026 year-to-date net income totaled $351.1 million, or $3.48 per share, compared with $320.6 million, or $3.20 per share, for the same period in fiscal 2025 Fiscal 2026 year-to-date NFE totaled $350.9 million, or $3.48 per share, compared with $313.4 million, or $3.13 per share, for the same period in fiscal 2025 Fiscal 2026 and Long-Term Outlook

Tightens fiscal 2026 net financial earnings per share (NFEPS) guidance to a range of $3.52 to $3.62, from its previous range of $3.48 to $3.63 Maintains 7 to 9 percent long-term NFEPS growth target, starting from a fiscal 2025 base of $2.83 per share* Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources, stated, “Our year-to-date performance reflects the continued strength of our diversified business model, supported by solid execution across our operations. We are pleased to raise the lower end of our fiscal 2026 NFEPS guidance, as we remain focused on delivering reliable, affordable energy and long-term value for our shareowners.”

Fiscal 2026 NFEPS Guidance and Expected NFE Contributions by Segment
NJR is tightening its fiscal 2026 NFEPS guidance to a range of $3.52 to $3.62 from $3.48 to $3.63, subject to the risks and uncertainties identified below under "Forward-Looking Statements."

The following chart represents NJR’s current expected NFE contributions from its business segments for fiscal 2026:

Segment

Expected fiscal 2026

net financial earnings contribution

New Jersey Natural Gas

59 to 62 percent

Clean Energy Ventures

10 to 13 percent

Storage and Transportation

8 to 11 percent

Energy Services

21 to 23 percent

Home Services and Other

0 to 1 percent

In providing fiscal 2026 NFE guidance, management is aware that there could be differences between reported GAAP net income and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.

Financial Metrics

Three Months Ended

Nine Months Ended

June 30,

June 30,

($ in Thousands, except per share data)

2026

2025

2026

2025

Net income (loss)

$

9,689

$

(15,051

)

$

351,091

$

320,555

Basic EPS

$

0.10

$

(0.15

)

$

3.48

$

3.20

Net financial earnings*

$

11,304

$

6,198

$

350,940

$

313,388

Basic net financial earnings per share*

$

0.11

$

0.06

$

3.48

$

3.13

*A reconciliation of net income to NFE for the three and nine months ended June 30, 2026 and 2025, respectively is provided in the financial statements below.

Net Financial Earnings (Loss) by Business Segment

Three Months Ended

Nine Months Ended

June 30,

June 30,

($ in Thousands)

2026

2025

2026

2025

New Jersey Natural Gas

$

6,087

$

10,079

$

238,429

$

221,518

Clean Energy Ventures

(312

)

(6,857

)

4,055

37,315

Storage and Transportation

8,762

5,898

23,833

13,905

Energy Services

(4,035

)

(3,734

)

84,531

39,400

Home Services and Other

579

481

839

418

Subtotal

11,081

5,867

351,687

312,556

Eliminations

223

331

(747

)

832

Total

$

11,304

$

6,198

$

350,940

$

313,388

New Jersey Natural Gas (NJNG)
NJNG reported fiscal 2026 third-quarter NFE of $6.1 million, compared to NFE of $10.1 million during the same period in fiscal 2025. The decrease in NFE for the period was driven primarily by higher depreciation expense as a result of additional utility plant being placed into service, partially offset by higher utility gross margin.

Fiscal 2026 year-to-date NFE totaled $238.4 million, compared with NFE of $221.5 million for the same period in fiscal 2025. The increase in NFE for the period was due to higher base rates in October and November of fiscal 2026 compared to the same period of fiscal 2025 (new rates were effective November 21, 2024) as well as continued customer growth and higher Basic Gas Supply Service (BGSS) incentives.

Customers:

At June 30, 2026, NJNG serviced approximately 595,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties, compared to approximately 589,000 customers as of September 30, 2025. Regulatory Filings:

On June 1, 2026, NJNG submitted its annual Basic Gas Supply Service (BGSS), Conservation Incentive Program (CIP) and Energy-Efficiency filings to the New Jersey Board of Public Utilities (BPU) that, taken together, would provide customers with an 8.9% reduction in customer bills in advance of the 2026-2027 winter season – a $158 annual savings for the average residential customer – and bill stability while seeking recovery for investments in the continued delivery of safe, reliable natural gas service, which is the most affordable energy to heat homes and businesses. Also, on June 1, 2026, NJNG filed a base rate case with the BPU, seeking a $157.6 million increase to its base rates. The filing is based on an overall rate of return on rate base of 7.60 percent with a return on common equity of 10.10 percent. The proposed increase reflects a 55.50 percent common equity component. Once all filings are implemented, NJNG anticipates that the overall net result will leave NJNG annualized average customer bills nearly flat compared to today’s rates. Unless otherwise noted, NJNG cannot predict the outcome or ultimate resolution for open regulatory matters. BGSS Incentive Programs1:

BGSS incentive programs contributed $20.4 million to utility gross margin during the first nine months of fiscal 2026, compared with $14.5 million for the same period in fiscal 2025. This increase was primarily driven by increased margins from off-system sales and capacity release due to market volatility as a result of colder weather. For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN® invested $78.8 million in the first nine months of fiscal 2026 in energy-efficiency upgrades for customers' homes and businesses. Investments in SAVEGREEN® are incremental to rate base and earn near-real time returns through an annual recovery mechanism. More than 115,000 customers have taken part in SAVEGREEN® to date, with those utilizing our whole home offerings realizing bill savings of up to 30%. Clean Energy Ventures (CEV)
CEV reported fiscal 2026 third-quarter net financial loss of $(0.3) million, compared with $(6.9) million during the third quarter of fiscal 2025, reflecting higher revenue, partially offset by higher depreciation and interest expense associated with capital invested over the past year.

Fiscal 2026 year-to-date NFE totaled $4.1 million, compared with NFE of $37.3 million for the same period in fiscal 2025. The decrease was primarily due to a gain from the sale of CEV's residential solar portfolio assets that was recognized in the prior year period.

Solar Investment Update:

During the first nine months of fiscal 2026, CEV placed eight commercial projects into service, adding 57.8 megawatts (MW)* to installed capacity. As of June 30, 2026, CEV had approximately 537MW of commercial solar capacity in service across New Jersey, New York, Connecticut, Pennsylvania, Rhode Island, Indiana, and Michigan. Storage and Transportation (S&T)
S&T reported fiscal 2026 third-quarter NFE of $8.8 million, compared with NFE of $5.9 million during the same period in fiscal 2025. Fiscal 2026 year-to-date NFE totaled $23.8 million, compared with NFE of $13.9 million for the same period in fiscal 2025.

NFE increased during both periods mainly due to higher operating income at Adelphia Gateway (Adelphia) primarily due to the impact of its Section 4 rate case settlement and higher firm storage rates at Leaf River.

Energy Services (ES)
ES reported fiscal 2026 third-quarter net financial loss of $(4.0) million, remaining largely flat compared with net financial loss of $(3.7) million for the same period in fiscal 2025.

Fiscal 2026 year-to-date NFE totaled $84.5 million, compared with NFE of $39.4 million for the same period in fiscal 2025. The increase in NFE was primarily due to higher natural gas price volatility that allowed ES to capture additional financial margin.

Home Services and Other Operations
Home Services and Other Operations reported fiscal 2026 third-quarter NFE of $0.6 million, compared with $0.5 million for the same period in fiscal 2025.

Fiscal 2026 year-to-date NFE totaled $0.8 million, compared with NFE of $0.4 million for the same period in fiscal 2025.

Capital Expenditures and Cash Flows:

During the first nine months of fiscal 2026, capital expenditures were $553.0 million, including accruals, compared with $456.8 million during the same period in fiscal 2025. The increase in capital expenditures was primarily due to higher expenditures at NJNG and CEV. NJR expects to deploy between $4.8 billion and $5.2 billion in capital expenditures through 2030, with utility spending at NJNG representing over 60% of the investment, all planned CEV capital expenditures safe-harbored to preserve tax credit eligibility, and strategic growth opportunities at S&T supporting long-term value creation. During the first nine months of fiscal 2026, cash flows from operations increased to $577.8 million, compared to cash flows from operations of $385.2 million in the same period in fiscal 2025, due primarily to an increase in financial margin at ES and higher base rates at NJNG. Conference Call to be Webcast on August 4, 2026
New Jersey Resources will host a live webcast of its fiscal 2026 third quarter financial results on Tuesday, August 4, 2026, at 10 a.m. ET. A few minutes prior to the webcast, visit www.njresources.com and select “Investor Relations.” Scroll down and click the webcast link under “Latest Events” on the right side of the page.

About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a diversified energy infrastructure and energy services company headquartered in Wall, New Jersey.

NJR is composed of five primary businesses:

New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects, providing customers with low-carbon solutions. Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America. Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility. Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as SAVEGREEN®.

For more information about NJR:
www.njresources.com.

Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.

Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as expectations regarding future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, statements regarding NJR’s NFEPS guidance for fiscal 2026, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to NJR’s NFE for fiscal 2026, our capital plan through 2030, including our capital expenditure projections through 2030, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs; the outcome or timing of our Base Rate Case and other filings with the BPU, and other legal and regulatory expectations and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.

Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the U.S. Securities and Exchange Commission (SEC), including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s website, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.

NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at ES, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization expenses as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to ES.

NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.

Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Annual Report on Form 10-K, Item 7.

NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended

Nine Months Ended

June 30,

June 30,

(Thousands, except per share data)

2026

2025

2026

2025

OPERATING REVENUES

Utility

$

200,869

$

204,790

$

1,251,692

$

1,156,558

Nonutility

148,311

94,156

641,743

543,776

Total operating revenues

349,180

298,946

1,893,435

1,700,334

OPERATING EXPENSES

Gas purchases

Utility

64,255

73,321

508,306

473,975

Nonutility

82,200

67,852

308,164

287,277

Related parties

1,280

1,268

3,799

4,652

Operation and maintenance

105,574

100,133

304,751

299,806

Regulatory rider expenses

10,434

10,979

103,038

81,956

Depreciation and amortization

53,545

47,000

153,250

140,296

Gain on sale of assets

—

(545

)

—

(56,092

)

Total operating expenses

317,288

300,008

1,381,308

1,231,870

OPERATING INCOME (LOSS)

31,892

(1,062

)

512,127

468,464

Other income, net

14,772

11,040

42,427

39,663

Interest expense, net of capitalized interest

35,199

31,694

105,850

98,112

INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

11,465

(21,716

)

448,704

410,015

Income tax provision (benefit)

3,353

(5,142

)

103,754

93,835

Equity in earnings of affiliates

1,577

1,523

6,141

4,375

NET INCOME (LOSS)

$

9,689

$

(15,051

)

$

351,091

$

320,555

EARNINGS (LOSS) PER COMMON SHARE

Basic

$

0.10

$

(0.15

)

$

3.48

$

3.20

Diluted

$

0.10

$

(0.15

)

$

3.46

$

3.18

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

101,092

100,373

100,881

100,173

Diluted

101,780

100,373

101,526

100,813

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)

Three Months Ended

Nine Months Ended

June 30,

June 30,

(Thousands)

2026

2025

2026

2025

NEW JERSEY RESOURCES

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net income (loss)

$

9,689

$

(15,051

)

$

351,091

$

320,555

Add:

Unrealized loss (gain) on derivative instruments and related transactions

2,749

10,766

4,460

(10,072

)

Tax effect

(653

)

(2,559

)

(1,060

)

2,394

Effects of economic hedging related to natural gas inventory

(654

)

16,924

(4,657

)

747

Tax effect

156

(4,022

)

1,107

(178

)

NFE tax adjustment

17

140

(1

)

(58

)

Net financial earnings

$

11,304

$

6,198

$

350,940

$

313,388

Weighted Average Shares Outstanding

Basic

101,092

100,373

100,881

100,173

Diluted

101,780

100,373

101,526

100,813

A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:

Basic earnings (loss) per share

$

0.10

$

(0.15

)

$

3.48

$

3.20

Add:

Unrealized loss (gain) on derivative instruments and related transactions

0.02

0.11

0.04

(0.10

)

Tax effect

—

(0.03

)

(0.01

)

0.02

Effects of economic hedging related to natural gas inventory

(0.01

)

0.17

(0.04

)

0.01

Tax effect

—

(0.04

)

0.01

—

Basic net financial earnings per share

$

0.11

$

0.06

$

3.48

$

3.13

NFE is a measure of earnings based on the elimination of timing differences surrounding the recognition of certain gains or losses to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminate the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, future or other derivatives to hedge natural gas transactions and forecasted SREC production, the resulting unrealized gains and losses are also eliminated from NFE. ES economically hedges its natural gas inventory with financial derivative instruments and calculates the related tax effect based on the statutory rate. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)

Three Months Ended

Nine Months Ended

June 30,

June 30,

(Thousands)

2026

2025

2026

2025

NATURAL GAS DISTRIBUTION

A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:

Operating revenues

$

201,107

$

205,029

$

1,252,405

$

1,157,439

Less:

Natural gas purchases

65,875

74,941

513,166

480,244

Operating and maintenance (1)

36,854

34,719

96,463

90,238

Regulatory rider expense

10,434

10,979

103,038

81,956

Depreciation and amortization

40,385

35,987

114,854

103,784

Gross margin

47,559

48,403

424,884

401,217

Add:

Operating and maintenance (1)

36,854

34,719

96,463

90,238

Depreciation and amortization

40,385

35,987

114,854

103,784

Utility gross margin

$

124,798

$

119,109

$

636,201

$

595,239

(1) Excludes selling, general and administrative expenses of $27.8 million and $27.1 million for the three months ended June 30, 2026 and 2025, respectively, and $82.9 million and $85.0 million for the nine months ended June 30, 2026 and 2025, respectively.

ENERGY SERVICES

A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:

Operating revenues

$

79,962

$

38,850

$

443,224

$

371,548

Less:

Natural Gas purchases

82,091

67,781

307,803

287,496

Operation and maintenance (1)

2,841

1,020

15,316

13,482

Depreciation and amortization

41

30

125

139

Gross margin

(5,011

)

(29,981

)

119,980

70,431

Add:

Operation and maintenance (1)

2,841

1,020

15,316

13,482

Depreciation and amortization

41

30

125

139

Unrealized loss (gain) on derivative instruments and related transactions

2,749

10,766

4,460

(10,072

)

Effects of economic hedging related to natural gas inventory

(654

)

16,924

(4,657

)

747

Financial margin

$

(34

)

$

(1,241

)

$

135,224

$

74,727

(1) Excludes selling, general and administrative expenses of $0.2 million and $0.3 million during the three months ended June 30, 2026 and 2025, respectively, and $0.7 million and $0.9 million during the nine months ended June 30, 2026 and 2025, respectively.

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net (loss) income

$

(5,650

)

$

(24,983

)

$

84,682

$

46,567

Add:

Unrealized loss (gain) on derivative instruments and related transactions

2,749

10,766

4,460

(10,072

)

Tax effect

(653

)

(2,559

)

(1,060

)

2,394

Effects of economic hedging related to natural gas

(654

)

16,924

(4,657

)

747

Tax effect

156

(4,022

)

1,107

(178

)

NFE tax adjustment

17

140

(1

)

(58

)

Net financial (loss) earnings

$

(4,035

)

$

(3,734

)

$

84,531

$

39,400

FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)

Three Months Ended

Nine Months Ended

June 30,

June 30,

(Thousands, except per share data)

2026

2025

2026

2025

NEW JERSEY RESOURCES

Operating Revenues

Natural Gas Distribution

$

201,107

$

205,029

$

1,252,405

$

1,157,439

Clean Energy Ventures

19,178

12,030

60,870

46,403

Energy Services

79,962

38,850

443,224

371,548

Storage and Transportation

31,388

27,129

88,902

79,064

Home Services and Other

17,758

16,177

48,722

47,089

Sub-total

349,393

299,214

1,894,123

1,701,543

Eliminations

(213

)

(268

)

(688

)

(1,209

)

Total

$

349,180

$

298,946

$

1,893,435

$

1,700,334

Operating Income (Loss)

Natural Gas Distribution

$

19,731

$

21,273

$

341,962

$

316,255

Clean Energy Ventures

1,156

(4,353

)

8,806

52,368

Energy Services

(5,229

)

(30,240

)

119,282

69,561

Storage and Transportation

14,356

10,544

37,913

26,113

Home Services and Other

1,219

1,065

2,198

1,667

Sub-total

31,233

(1,711

)

510,161

465,964

Eliminations

659

649

1,966

2,500

Total

$

31,892

$

(1,062

)

$

512,127

$

468,464

Equity in Earnings of Affiliates

Storage and Transportation

$

1,039

$

908

$

4,561

$

3,030

Eliminations

538

615

1,580

1,345

Total

$

1,577

$

1,523

$

6,141

$

4,375

Net Income (Loss)

Natural Gas Distribution

$

6,087

$

10,079

$

238,429

$

221,518

Clean Energy Ventures

(312

)

(6,857

)

4,055

37,315

Energy Services

(5,650

)

(24,983

)

84,682

46,567

Storage and Transportation

8,762

5,898

23,833

13,905

Home Services and Other

579

481

839

418

Sub-total

9,466

(15,382

)

351,838

319,723

Eliminations

223

331

(747

)

832

Total

$

9,689

$

(15,051

)

$

351,091

$

320,555

Net Financial Earnings (Loss)

Natural Gas Distribution

$

6,087

$

10,079

$

238,429

$

221,518

Clean Energy Ventures

(312

)

(6,857

)

4,055

37,315

Energy Services

(4,035

)

(3,734

)

84,531

39,400

Storage and Transportation

8,762

5,898

23,833

13,905

Home Services and Other

579

481

839

418

Sub-total

11,081

5,867

351,687

312,556

Eliminations

223

331

(747

)

832

Total

$

11,304

$

6,198

$

350,940

$

313,388

Throughput (Bcf)

NJNG, Core Customers

14.6

19.2

86.1

82.1

NJNG, Off System/Capacity Management

10.7

15.1

60.3

51.6

Energy Services Fuel Mgmt. and Wholesale Sales

25.7

18.6

82.7

82.1

Total

51.0

52.9

229.1

215.8

Common Stock Data

Yield at June 30,

3.4

%

4.0

%

3.4

%

4.0

%

Market Price at June 30,

$

56.04

$

44.82

$

56.04

$

44.82

Shares Out. at June 30,

101,411

100,378

101,411

100,378

Market Cap. at June 30,

$

5,683,070

$

4,498,953

$

5,683,070

$

4,498,953

Three Months Ended

Nine Months Ended

(Unaudited)

June 30,

June 30,

(Thousands, except customer and weather data)

2026

2025

2026

2025

NATURAL GAS DISTRIBUTION

Utility Gross Margin

Operating revenues

$

201,107

$

205,029

$

1,252,405

$

1,157,439

Less:

Natural gas purchases

65,875

74,941

513,166

480,244

Operating and maintenance (1)

36,854

34,719

96,463

90,238

Regulatory rider expense

10,434

10,979

103,038

81,956

Depreciation and amortization

40,385

35,987

114,854

103,784

Gross margin

47,559

48,403

424,884

401,217

Add:

Operating and maintenance (1)

36,854

34,719

96,463

90,238

Depreciation and amortization

40,385

35,987

114,854

103,784

Total Utility Gross Margin

$

124,798

$

119,109

$

636,201

$

595,239

(1) Excludes selling, general and administrative expenses of $27.8 million and $27.1 million for the three months ended June 30, 2026 and 2025, respectively, and $82.9 million and $85.0 million for the nine months ended June 30, 2026 and 2025, respectively.

Utility Gross Margin, Operating Income and Net Income

Residential

$

76,156

$

74,131

$

441,829

$

419,817

Commercial, Industrial & Other

19,945

19,924

85,144

80,901

Firm Transportation

24,386

19,666

85,977

76,750

Total Firm Margin

120,487

113,721

612,950

577,468

Interruptible

1,223

1,462

2,884

3,236

Total System Margin

121,710

115,183

615,834

580,704

Basic Gas Supply Service Incentive

3,088

3,926

20,367

14,535

Total Utility Gross Margin

124,798

119,109

636,201

595,239

Operation and maintenance expense

64,682

61,849

179,385

175,200

Depreciation and amortization

40,385

35,987

114,854

103,784

Operating Income

$

19,731

$

21,273

$

341,962

$

316,255

Net Income

$

6,087

$

10,079

$

238,429

$

221,518

Net Financial Earnings

$

6,087

$

10,079

$

238,429

$

221,518

Throughput (Bcf)

Residential

6.1

6.2

48.6

44.3

Commercial, Industrial & Other

1.2

1.2

9.0

8.3

Firm Transportation

1.8

1.9

10.9

10.3

Total Firm Throughput

9.1

9.3

68.5

62.9

Interruptible

5.5

9.9

17.6

19.2

Total System Throughput

14.6

19.2

86.1

82.1

Off System/Capacity Management

10.7

15.1

60.3

51.6

Total Throughput

25.3

34.3

146.4

133.7

Customers

Residential

540,569

534,561

540,569

534,561

Commercial, Industrial & Other

33,174

32,464

33,174

32,464

Firm Transportation

20,847

21,163

20,847

21,163

Total Firm Customers

594,590

588,188

594,590

588,188

Interruptible

31

87

31

87

Total System Customers

594,621

588,275

594,621

588,275

Off System/Capacity Management*

25

30

25

30

Total Customers

594,646

588,305

594,646

588,305

*The number of customers represents those active during the last month of the period.

Degree Days

Actual

437

373

4,587

4,147

Normal

452

454

4,347

4,361

Percent of Normal

96.7

%

82.2

%

105.5

%

95.1

%

Three Months Ended

Nine Months Ended

(Unaudited)

June 30,

June 30,

(Thousands, except customer, RECs and megawatt data)

2026

2025

2026

2025

CLEAN ENERGY VENTURES

Operating Revenues

SREC sales

$

154

$

179

$

23,611

$

17,997

TREC sales

7,278

4,522

13,407

9,581

SREC II sales

1,190

442

2,178

1,145

Merchant Power

4,497

3,360

9,706

7,709

PPA / Other

6,059

3,527

11,968

8,101

Residential solar portfolio

—

—

—

1,870

Total Operating Revenues

$

19,178

$

12,030

$

60,870

$

46,403

Depreciation and Amortization

$

7,664

$

5,772

$

21,817

$

17,701

Operating Income (Loss)

$

1,156

$

(4,353

)

$

8,806

$

52,368

Income Tax (Benefit) Provision

$

(31

)

$

(2,068

)

$

879

$

10,994

Net (Loss) Income

$

(312

)

$

(6,857

)

$

4,055

$

37,315

Net Financial (Loss) Earnings

$

(312

)

$

(6,857

)

$

4,055

$

37,315

Solar Renewable Energy Certificates Generated

93,879

92,508

203,201

231,877

Solar Renewable Energy Certificates Sold

996

1,155

122,119

87,657

Transition Renewable Energy Certificates Generated

49,093

30,569

89,915

65,257

Solar Renewable Energy Certificates II Generated

12,126

4,743

23,235

12,519

ENERGY SERVICES

Operating Income

Operating revenues

$

79,962

$

38,850

$

443,224

$

371,548

Less:

Gas purchases

82,091

67,781

307,803

287,496

Operation and maintenance expense

3,059

1,279

16,014

14,352

Depreciation and amortization

41

30

125

139

Operating (Loss) Income

$

(5,229

)

$

(30,240

)

$

119,282

$

69,561

Net (Loss) Income

$

(5,650

)

$

(24,983

)

$

84,682

$

46,567

Financial Margin

$

(34

)

$

(1,241

)

$

135,224

$

74,727

Net Financial (Loss) Earnings

$

(4,035

)

$

(3,734

)

$

84,531

$

39,400

Gas Sold and Managed (Bcf)

25.7

18.6

82.7

82.1

STORAGE AND TRANSPORTATION

Operating Revenues

$

31,388

$

27,129

$

88,902

$

79,064

Equity in Earnings of Affiliates

$

1,039

$

908

$

4,561

$

3,030

Operation and Maintenance Expense

$

11,439

$

11,410

$

34,127

$

34,403

Other Income, Net

$

1,421

$

2,059

$

5,271

$

6,384

Interest Expense

$

5,383

$

5,741

$

16,397

$

17,527

Income Tax Provision

$

2,671

$

1,872

$

7,515

$

4,095

Net Income

$

8,762

$

5,898

$

23,833

$

13,905

Net Financial Earnings

$

8,762

$

5,898

$

23,833

$

13,905

HOME SERVICES AND OTHER

Operating Revenues

$

17,753

$

16,177

$

48,722

$

47,089

Operating Income

$

1,219

$

1,065

$

2,198

$

1,667

Net Income

$

579

$

481

$

839

$

418

Net Financial Earnings

$

579

$

481

$

839

$

418

Total Service Contract Customers at June 30

97,366

98,653

97,366

98,653