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Ryman Hospitality Properties, Inc. (RHP) Q2 2026 Earnings Call August 7, 2026 10:00 AM EDT

Company Participants

Jennifer Hutcheson - Executive VP, CFO & Chief Accounting Officer
Colin Reed - Executive Chairman
Mark Fioravanti - President, CEO & Director
Patrick Chaffin - Executive VP & COO - Hotels

Conference Call Participants

Daniel Politzer - JPMorgan Chase & Co, Research Division
Bennett Rose - Citigroup Inc., Research Division
Aryeh Klein - BMO Capital Markets Equity Research
Charles Scholes - Truist Securities, Inc., Research Division
Chris Woronka - Deutsche Bank AG, Research Division
David Katz - Jefferies LLC, Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Peter Laskey - Evercore ISI Institutional Equities, Research Division
Jay Kornreich - Cantor Fitzgerald & Co., Research Division
Jackson Armstrong - Wells Fargo Securities, LLC, Research Division
John DeCree - CBRE Securities, LLC, Research Division
Michael Herring

Presentation

Operator

Welcome to Ryman Properties Second Quarter 2026 Earnings Conference Call. Hosting the call today from Ryman Hospitality Properties are Mr. Colin Reed, Executive Chairman; Mr. Mark Fioravanti, President and Chief Executive Officer; Ms. Jennifer Hutcheson, Chief Financial Officer; Mr. Patrick Chaffin, Chief Operating Officer; and Mr. Patrick Moore, Chief Executive Officer, Opry Entertainment Group. This call will be available for digital replay. The number is (800) 757-4770, with no conference ID required. [Operator Instructions]

It is now my pleasure to turn the floor over to Ms. Jennifer Hutcheson. Ma'am, you may begin.

Jennifer Hutcheson
Executive VP, CFO & Chief Accounting Officer

Good morning. Thank you for joining us today. This call may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the company's expected financial performance. Any statements we make today that are not statements of historical fact may be deemed to be forward-looking statements. Words such as believes or expects are intended to identify these statements, which may be affected by many factors, including those

Shares of Wix.com (WIX -1.89%) jumped 21.3% in July, according to data from S&P Global Market Intelligence. The website software provider saw its shares jump due to an unwind of AI winner-and-loser trades, with Wix considered a loser. Shares then continued to jump at the beginning of August after the company reported its second-quarter earnings.

The stock is still down 83% from its highs. Should you buy the dip on Wix stock after it began to turn things around in July?

Today's Change

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-1.15

Current Price

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59.73

Software stock rebounded Many investors betting big on artificial intelligence (AI) have also made large bets against sectors they believe will be AI "losers," such as software. Wix and its website-building platform have been tossed into this loser camp, with professional investors taking heavy short positions against them.

One such massive investor was Situational Awareness, an upstart hedge fund that was betting heavily on AI stocks and against AI losers, and with a lot of debt. When some of its AI stocks began moving against it, the hedge fund was forced to close all its trades quickly and sell its entire portfolio in a block to the massive investment firm Citadel.

For Wix, this is likely why the share price rose in July: when a short seller covers their position, they are forced to buy back the stock on the open market, which can create upward pressure on the share price.

Image source: Getty Images.

Should you buy Wix stock? Wix stock began to move aggresively higher with the rest of the software sector heading into its Q2 earnings report, which was a few days ago in early August.

The company showed no signs of AI disrupting its offering, with revenue up 15% year-over-year in the period, strong gross margins, and positive free cash flow. Wix's stock initially jumped on these results but has since given back some of the gains in recent days.

Today, Wix trades at a market cap of $2.5 billion. It generated $2.1 billion in revenue over the last 12 months and more than $450 million in positive free cash flow. Management is taking this cash and returning it to shareholders, spending an aggressive $1.6 billion on repurchases last quarter alone, which is quickly reducing shares outstanding.

There may be risks that AI could disrupt Wix, but the company is still chugging along at a pace similar to its historical pace. Right now, with a market cap of $2.5 billion, it is trading at a single-digit multiple of its trailing free cash flow, which could make shares a good buy for the long-term.

, /PRNewswire/ -- Paramount Skydance Corporation (NASDAQ: PSKY) ("Paramount") today announced the extension of the Expiration Dates in connection with the previously announced (i) offers to purchase (the "Tender Offers" and each, a "Tender Offer") for cash, upon the terms and subject to the conditions set forth in the related offer to purchase (the "Offer to Purchase"), any and all of the identified notes in each series of the Existing Tender Offer Notes (defined by reference to the table set forth below) issued by Discovery Global Holdings, Inc. (formerly WarnerMedia Holdings, Inc.) (the "DGH Issuer") and Discovery Communications, LLC (the "DCL Issuer" and together with the DGH Issuer, each a "WBD Issuer" and collectively the "WBD Issuers"), as applicable, and (ii) offers to exchange (the "Exchange Offers" and each, an "Exchange Offer" and, together with the Tender Offers, the "Offers" and each, an "Offer"), upon the terms and subject to the conditions set forth in the related exchange offer memorandum (the "Offering Memorandum"), any and all of the identified notes in each series of the Existing Exchange Offer Notes (defined by reference to the table set forth below) (together with the Existing Tender Offer Notes, the "Offer Notes") issued by the applicable WBD Issuer for notes to be newly issued by Paramount.

The Expiration Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) have been extended to 5:00 p.m., New York City time, on August 21, 2026, unless further extended. The Settlement Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) will occur promptly after the Expiration Date and are currently anticipated to occur in the third quarter of 2026. Paramount anticipates extending the Expiration Date for such Tender Offers and Exchange Offers until such time that would result in the Settlement Dates occurring on or promptly following the closing date of the proposed acquisition (the "Acquisition") by Paramount of Warner Bros. Discovery, Inc. ("WBD"). Tenders of the Offer Notes in the Offers may be withdrawn at any time prior to the Expiration Date. The aforementioned extensions further extend the Expiration Dates previously extended by Paramount on June 12, 2026, June 26, 2026, July 13, 2026, July 17, 2026, July 24, 2026, and July 31, 2026.

As of 5:00 p.m., New York City time, on August 6, 2026, approximately 65.43% and 76.04% of the aggregate principal amount of the Existing Tender Offer Notes and Existing Exchange Offer Notes, respectively, have been validly tendered in the applicable Offers. As Paramount previously announced that it anticipates extending the Offers to align with the closing date of the Acquisition, Paramount does not view these figures to be representative of the final results of the applicable Offers.

Information about each series of Offer Notes eligible to participate in the Offers is summarized below.

Type of Offer

Offer Notes to be Tendered
or Exchanged, as
Applicable

Issuer of Offer Notes

CUSIP No. / Common Code
/ ISIN Eligible to
Participate in the Offers (1)

Aggregate Principal
Amount of Offer Notes
Eligible to Participate in the
Offers (2)

Tender Offer

3.950% Senior Notes due
2028

DCL Issuer

25470D CP2

US25470DCP24

$1,234,458,000

Exchange Offer

4.125% Senior Notes due
2029

DCL Issuer

25470D CQ0

US25470DCQ07

$655,825,000

Exchange Offer

3.625% Senior Notes due
2030

DCL Issuer

25470D CR8

US25470DCR89

$914,183,000

Exchange Offer

5.000% Senior Notes due
2037

DCL Issuer

25470D CS6

US25470DCS62

$453,281,000

Exchange Offer

6.350% Senior Notes due
2040

DCL Issuer

25470D CT4

US25470DCT46

$438,102,000

Exchange Offer

4.950% Senior Notes due
2042

DCL Issuer

25470D CU1

US25470DCU19

$130,366,000

Exchange Offer

4.875% Senior Notes due
2043

DCL Issuer

25470D V91
CV9US25470DC

$141,584,000

Exchange Offer

5.200% Senior Notes due
2047

DCL Issuer

25470D W74
CW7US25470DC

$3,161,000

Exchange Offer

5.300% Senior Notes due 2049

DCL Issuer

25470D X57
CX5US25470DC

$247,860,000

Tender Offer

3.755% Senior Notes due
2027

DGH Issuer

254948 AH5

US254948AH58

254948 AN2

US254948AN27

U25483 AA3

USU25483AA38

$1,189,336,000

Exchange Offer

4.054% Senior Notes due
2029

DGH Issuer

254948 AJ1

US254948AJ15

254948 AP7

US254948AP74

U25483 AB1

USU25483AB11

$1,353,828,000

Exchange Offer

4.279% Senior Notes due
2032

DGH Issuer

254948 AK8

US254948AK87

254948 AQ5

US254948AQ57

$2,691,764,000

Exchange Offer

5.050% Senior Notes due
2042

DGH Issuer

254948 AL6

US254948AL60

254948 AR3

US254948AR31

U25483 AD7

USU25483AD76

$4,104,687,000

Exchange Offer

5.141% Senior Notes due
2052

DGH Issuer

254948 AM4

US254948AM44

254948 AS1

US254948AS14

$949,883,000

Exchange Offer

4.302% Senior Notes due
2030

DGH Issuer

XS3393993285

339399328

€234,382,000

Exchange Offer

4.693% Senior Notes due
2033

DGH Issuer

XS3393994507

339399450

€316,641,000

__________

(1)

No representation is made as to the correctness or accuracy of the identifiers listed in this press release or printed on the Offer Notes. Such identifiers are provided solely for the convenience of the holders.

(2)

Represents the aggregate principal amount of Offer Notes outstanding that are eligible to participate in the Offers.

The Exchange Offers are being made pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and the rules and regulations of the Securities and Exchange Commission (the "SEC") promulgated thereunder, and are also not being registered under any state or foreign securities laws. Any securities offered pursuant to the Exchange Offers may not be offered or sold in the United States or to any U.S. persons (as defined below) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers will only be made, and the securities offered pursuant to the Exchange Offers are only being offered and issued, to holders of applicable Existing Exchange Offer Notes who are (a) reasonably believed to be "qualified institutional buyers" as defined in Rule 144A under the Securities Act or (b) not "U.S. persons," as defined in Rule 902 of Regulation S under the Securities Act (such holders, "Eligible Holders"), and only Eligible Holders who have completed and returned the eligibility certification are authorized to receive or review the Offering Memorandum or to participate in the Exchange Offers. The eligibility certification is available electronically at: https://gbsc-usa.com/eligibility/paramount. 

General

Each Offer is a separate offer, and each may be individually consummated, amended, extended, terminated, or withdrawn, subject to certain conditions and applicable law, at any time in Paramount's sole discretion, and without also consummating, amending, extending, terminating, or withdrawing any other Offer with respect to any other series of Offer Notes. Paramount may terminate an Offer if any of the conditions of such Offer described in the Offer to Purchase or Offering Memorandum, as applicable, are not satisfied or waived by the applicable Expiration Date, subject to applicable law. In addition, Paramount may waive the conditions to an Offer without extending such Offer in accordance with applicable law.

The Offers are being made solely by Paramount and are not being made by WBD or the WBD Issuers. None of Paramount, WBD, the WBD Issuers, the Dealer Managers, the Exchange Agent (as defined below), the Information Agent (as defined below), the trustees under each of the indentures governing the Offer Notes, the trustee or collateral agent under the indenture that will govern the notes to be issued in the Exchange Offers, or any affiliate of any of them makes any recommendation as to whether any holder of Offer Notes should tender or refrain from tendering all or any portion of the principal amount of such holder's Offer Notes for cash or notes to be issued in the Exchange Offers. No one has been authorized by any of them to make such a recommendation. Holders must make their own decision whether to tender Offer Notes in any Offer and, if so, the amount of Offer Notes to tender.

Only Eligible Holders may receive a copy of the Offering Memorandum and participate in the Exchange Offers. Paramount has engaged Global Bondholder Services Corporation to act as the exchange agent (in such capacity, the "Exchange Agent") and information agent (in such capacity, the "Information Agent") for the Offers. Questions concerning the Offers, or requests for additional copies of the Offer to Purchase or Offering Memorandum or other related documents, may be directed to Corporate Actions by telephone at (855) 654-2014 (U.S. toll-free) or (212) 430-3774 (banks and brokers) or by email at [email protected]. Holders should also consult their broker, dealer, commercial bank, trust company or other institution for assistance concerning the Offers. The Exchange Offer documents and the Tender Offer documents can be accessed at the following link: https://gbsc-usa.com/paramount. 

Paramount has engaged BofA Securities and Citigroup as dealer managers (in such capacity, the "Dealer Managers") for the Offers. Holders with questions regarding the Offers should contact BofA Securities, Inc. at +1 (888) 292-0070 (toll-free) or +1 (980) 388-3646 (collect) or [email protected] or Citigroup Global Markets Inc. at +1 (800) 558-3745 (toll-free) or +1 (212) 723-6106 or [email protected]. Latham & Watkins LLP is serving as legal counsel to Paramount and Cahill Gordon & Reindel LLP is serving as legal counsel to the Dealer Managers.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security, and does not constitute an offer, solicitation, or sale of any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Paramount, a Skydance Corporation

Paramount, a Skydance Corporation is a next-generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. PSKY's portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance Animation, Film, Television, Interactive/Games, and Paramount Sports Entertainment.

PSKY-IR

Cautionary Note Concerning Forward-Looking Statements

This communication contains "forward-looking statements" regarding the Acquisition and the other transactions referred to herein. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Paramount. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the Acquisition will not be satisfied, including the risk that clearances under applicable antitrust or regulatory laws will not be obtained or will be obtained subject to conditions that are not anticipated; the possibility that the transactions described herein will not be completed in the expected timeframe or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the Acquisition; potential adverse effects to the businesses of Paramount or WBD during the pendency of the Acquisition, such as employee departures or distraction of management from business operations; negative effects of the announcement or the consummation of the Acquisition on the market price of WBD or Paramount stock; the risk of stockholder litigation relating to the Acquisition, including resulting expense or delay; the potential that the expected benefits and opportunities of the Acquisition, if completed, may not be realized or may take longer to realize than expected; risks related to the streaming business of the post-Acquisition combined business (the "Combined Company"); the adverse impact on the Combined Company's advertising revenues as a result of changes in consumer behavior, advertising market conditions, and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to the Combined Company's decision to invest in new businesses, products, services, and technologies, and the evolution of the Combined Company's business strategy; the potential for loss of carriage or other reduction in, or the impact of negotiations for, the distribution of the Combined Company's content; damage to the Combined Company's reputation or brands; losses due to asset impairment charges for goodwill, content and long-lived assets, including finite-lived intangible assets; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; challenges in protecting and maintaining the Combined Company's intellectual property rights; domestic and global political, economic and regulatory factors affecting the Combined Company's business generally or the Acquisition; the inability to hire or retain key employees or secure creative talent; disruptions to the Combined Company's operations as a result of labor disputes; risks and costs associated with the integration of, and Paramount's ability to integrate, the businesses of Paramount Global, Skydance Media, LLC, and WBD successfully and to achieve anticipated synergies, including in the amounts or on the timelines anticipated to realize such synergies; litigation related to the Acquisition and other matters or transactions; risks associated with the Combined Company's holding company structure, including its dependence on distributions from its subsidiaries to meet tax obligations and other cash requirements; risks related to our indebtedness, including our substantial outstanding debt obligations, our ability to incur substantially more debt and our ability to meet the financial and other covenants contained in the agreements governing the indebtedness of Paramount, WBD, or the Combined Company. A further list and description of these risks, uncertainties and other factors and the general risks associated with the respective businesses of Paramount and WBD can be found in Paramount's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 25, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," Paramount's most recently filed Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 4, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," and Paramount's subsequent filings with the SEC, and in WBD's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, including in the section captioned "Item 1A. Risk Factors," WBD's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 6, 2026, and WBD's subsequent filings with the SEC. Neither Paramount nor WBD undertakes to update any forward-looking statement as a result of new information or future events or developments, except as required by law.

SOURCE Paramount Skydance Corporation

Key Takeaways MED shares gained 13.6% in a month as improving operating indicators supported momentum.Medifast's coach productivity rose 41% year over year, reaching its highest level since Q2 2022.MED's active earning coach base fell 48.7% year over year, keeping revenue under pressure. Medifast, Inc. (MED - Free Report) shares have gained 13.6% in the past month compared with the industry's 3.5% growth, bringing the sustainability of that move into focus. The stock's next leg may depend on whether improving operating indicators translate into a firmer business trend.

Image Source: Zacks Investment Research

Coach productivity and earnings expectations are moving in a better direction. Revenue and the size of the active coach base, however, remain under pressure.

MED's 13.5% Monthly Gain Needs Fundamental SupportThe recent rally comes against a mixed operating backdrop. Second-quarter 2026 revenues were $76.4 million, down from $105.6 million a year earlier, as fewer active earning coaches continued to weigh on the business.

The sequential picture is steadier. Management said revenues have stabilized around the mid-$70 million level in recent quarters and maintained full-year revenue guidance of $270 million to $300 million. That stability offers some support for the stock's momentum, but a durable recovery still requires improvement in the underlying sales engine.

MED's Earnings Surprise Adds to the Momentum CaseMedifast reported a second-quarter loss of 28 cents per share, substantially narrower than the consensus loss of 67 cents. Revenues also came in slightly above expectations, giving investors a better-than-feared quarterly result even as year-over-year sales remained weak.

MEDIFAST INC Price, Consensus and EPS SurpriseEstimate revisions add another constructive signal. The fiscal-year earnings estimate has moved 49.2% higher over the past four weeks. Rising earnings expectations can support price momentum when investors see a better path for profitability, although the company still expects a loss for 2026.

Medifast's Coach Productivity Is ImprovingAverage revenue per active earning coach increased 41% year over year to $6,529 in the second quarter and rose 20% sequentially. That marked the third consecutive quarter of year-over-year productivity growth and the highest level since the second quarter of 2022.

Management views productivity as an early indicator because stronger coach output has historically preceded better client acquisition, coach growth and revenue expansion. The company expects productivity to continue improving through 2026, helped by its focus on more productive coach organizations and the rollout of Trilivy-related initiatives.

MED Still Faces a Shrinking Coach BaseThe main constraint remains the size of Medifast's network. Active earning coaches fell 48.7% year over year to 11,700, and the company expects the count to continue declining during 2026 despite anticipating growth in new coach additions in the second half.

Among consumer-staples peers, Mama's Creations, Inc. (MAMA - Free Report) operates in prepared foods, while US Foods Holding Corp. (USFD - Free Report) is a foodservice distributor. Both offer a broader sector comparison for Medifast, though their operating models differ from MED's coach-led metabolic-health business.

MED's Momentum Score Supports a Mixed SetupThe stock currently carries a Zacks Rank #3 (Hold) and a Momentum Score of A. The favorable Momentum Score indicates that MED screens well on momentum characteristics, which fits with the recent share-price advance. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. 

The broader Style Score picture is less supportive. MED has a Value Score of D, Growth Score of F and VGM Score of D. Since Style Scores are designed to complement the Zacks Rank, that combination points to a mixed setup rather than an across-the-board positive signal. Continued productivity gains, firmer revenues and progress toward profitability would be important for sustaining the recent momentum.

Key Takeaways Williams Companies posted higher Q2 earnings and revenues year over year despite missing analyst estimates.WMB agreed to buy Momentum Midstream for up to $5.5B to expand its natural gas infrastructure.WMB raised 2026 adjusted EBITDA guidance to $8.3-$8.5B and forecast growth capex of $7.3-$7.9B. The Williams Companies, Inc. (WMB - Free Report) reported second-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. However, the bottom line increased from the year-ago period’s level of 46 cents, driven by better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P and West segments.

The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate by $2 million. The figure increased by 9.8% from the year-ago quarter’s reported revenues. This can be attributed to higher service revenues and increased product sales.

Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 6% year over year. Cash flow from operations amounted to $1.4 billion, down 5.1% from the corresponding quarter of 2025.

WMB’s Momentum Midstream AcquisitionWilliams Companies has agreed to acquire Momentum Midstream in a deal worth up to $5.5 billion, strengthening its Haynesville footprint and expanding its integrated natural gas infrastructure to meet rising Gulf Coast LNG, power and industrial demand. Momentum adds more than 4,000 miles of pipelines, 6 Bcf/d gathering capacity and key processing assets, with the deal expected to boost AFFO and EPS. Williams Companies also announced the Delta Aces and Shelby Trough Connector expansions, positioning the company to capture growing natural gas demand and enhance basin connectivity.

WMB’s Q2 Segmental AnalysisTransmission, Power & Gulf: The segment reported an adjusted EBITDA of $959 million, up 6.2% from the year-ago quarter’s level. The increase was driven by contributions from projects placed in service, new Gulf volumes and higher storage revenues. However, the figure missed the Zacks Consensus Estimate by 2.5%.

Northeast G&P: Driven primarily by higher volumes at Ohio Valley Midstream and higher proportional EBITDA from Blue Racer Midstream and Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $540 million. This represents a 7.8% increase from $501 million in the year-earlier quarter. It beat the Zacks Consensus Estimate of $518 million.

West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $359 million, up 5.3% from the prior-year quarter’s level of $341 million. Strong results were fueled by Louisiana Energy Gateway, placed into service in third-quarter 2025, as well as higher gathering volumes, including contributions from the 2025 Rimrock and Saber acquisitions. However, the figure missed the Zacks Consensus Estimate of $389 million.

Gas & NGL Marketing Services: The segment posted a negative adjusted EBITDA of $1 million, narrowing down from the year-ago negative EBITDA of $15 million, resulting from higher gas marketing margins due to winter storms. The Zacks Consensus Estimate for the same was pegged at a negative $7.27 million.

Other: This segment posted an adjusted EBITDA of $64 million, representing a 17.9% decrease from $78 million in the year-earlier quarter, caused by unfavorable changes in net realized results from upstream operations, including the impact of the divested South Mansfield interests. However, the figure beat the Zacks Consensus Estimate of $57 million.

WMB’s Costs, Capex & Balance SheetIn the reported quarter, total costs and expenses of $1.9 billion increased by about 2% from the year-ago quarter’s figure.

Total capital expenditure (capex) was $1.8 billion. As of June 30, 2026, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $203 million and long-term debt of $28.1 billion, with a debt-to-capitalization of 64.7%.

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

WMB’s 2026 GuidanceWilliams Companies raised its 2026 guidance and now expects adjusted EBITDA of $8.3-$8.5 billion, with growth capital expenditures projected at $7.3-$7.9 billion. Factoring in the pro forma contribution from the Momentum Midstream acquisition over the past four quarters, the company expects its 2026 leverage ratio to be approximately 3.75x at the midpoint. The growth capex and debt-to-adjusted EBITDA guidance exclude certain reimbursable long-lead equipment costs.

Important Earnings at a GlanceWhile we have discussed WMB’s second-quarter results in detail, let us take a look at three other key reports in this space.

Expand Energy Corporation (EXE - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate of $1.22. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion.

As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 16%.

NOV Inc. (NOV - Free Report) reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.

The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.

As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%.

Core Laboratories Inc. (CLB - Free Report) reported second-quarter 2026 adjusted earnings of 11 cents per share, which beat the Zacks Consensus Estimate of 8 cents, driven by outperformance of the Production Enhancement segment. However, the bottom line decreased from the year-ago quarter’s reported figure of 19 cents due to the underperformance of the Reservoir Description segment and increased costs and expenses.

This oilfield service provider reported second-quarter operating revenues of $124.6 million, missing the Zacks Consensus Estimate of $128 million and decreasing from the earlier-year quarter’s reported figure of $130.1 million. This can be attributed to military conflicts in the Middle East and the Russia-Ukraine region, which disrupted energy infrastructure, delaying projects, disrupting crude oil trade and reducing demand for the company's international laboratory services.

As of June 30, 2026, the company had cash and cash equivalents of $22.7 million and long-term debt of $113.9 million. CLB’s debt-to-capitalization was about 29%.

Key Takeaways Lumentum expects fiscal Q4 revenues of $960M-$1.01B and non-GAAP EPS of $2.85-$3.05.Strong cloud and AI demand, 1.6T transceivers and OCS contributions are expected to support growth.Supply constraints in EMLs, pump lasers and OCS could limit Lumentum's ability to meet customer demand. Lumentum (LITE - Free Report) is set to report its fourth-quarter fiscal 2026 results on Aug. 11.

For the to-be-reported quarter, Lumentum expects revenues between $960 million and $1.01 billion. LITE expects non-GAAP earnings in the $2.85-$3.05 per share range.

The Zacks Consensus Estimate for revenues is pegged at $988.56 million, indicating an increase of 105.65% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $2.99 per share, up by 3 cents over the past 30 days. Lumentum reported earnings of 88 cents in the year-ago quarter.

Consensus Estimate Trend
Image Source: Zacks Investment Research

LITE’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.59%. 

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of LITE’s Q4 ResultsLumentum’s fourth-quarter fiscal 2026 results are expected to have benefited from continued robust demand across its cloud and AI portfolio, supported by strength in both components and systems. More than half of the anticipated sequential revenue growth (21.3% at current guidance) is expected to have come from components, with the balance driven mainly by high-speed transceivers and additional Optical Circuit Switch (OCS) contributions.

Demand for EML laser chips and scale-across products, including pump lasers and narrow-linewidth laser assemblies, is likely to have remained particularly strong. In the third quarter of fiscal 2026, narrow-linewidth laser shipments had increased more than 120% year over year, and pump laser shipments grew 80%, with these products effectively sold out for the foreseeable future.

Another important fiscal fourth-quarter catalyst is likely to have been the ramp of 1.6T transceivers. Lumentum entered the quarter expecting to increase shipments of 1.6T products, including initial integration of internally sourced CW lasers, while continued yield improvements and lower scrap rates were expected to support transceiver profitability. The transition from 800G to 1.6T also represents a favorable content and pricing dynamic for the company. LITE noted that 200G EMLs used for 1.6T applications carry roughly twice the ASP of the 100G EMLs predominantly used in 800G transceivers.

Meanwhile, favorable product mix, pricing discipline, manufacturing utilization and operating leverage should have supported further earnings expansion. These factors had already lifted fiscal third-quarter non-GAAP gross margin by 540 basis points (bps) sequentially to 47.9% and operating margin by 700 bps to 32.2%.

Despite the favorable demand backdrop, supply constraints could have limited Lumentum’s ability to fully capitalize on customer demand in the fourth quarter of fiscal 2026. Management indicated that the EML supply-demand gap remained above 30%, while pump-laser constraints were even more pronounced, forcing the company to make allocation decisions among customers. OCS growth has similarly been gated by supply-chain tightness amid a substantial increase in requested output.

LITE Shares Outperform Sector Lumentum shares have jumped a whopping 127.4% in the year-to-date period (YTD), outperforming the broader Zacks Computer and Technology sector’s appreciation of 16.9%. The company has outperformed peers like Coherent (COHR - Free Report) and Ciena (CIEN - Free Report) but lagged Marvell Technology (MRVL - Free Report) YTD. Shares of Coherent, Ciena and Marvell Technology have returned 81.1%, 72.7% and 147.6%, respectively, over the same time frame.

LITE Stock’s Price Performance
Image Source: Zacks Investment Research

Lumentum and Coherent are competitors in high-speed optical modules and transceivers used in data centers and optical links for AI infrastructures. Ciena is a leading provider of optical networking equipment, software and services. Marvell Technology is a competitor in optical networking for AI and data center applications.

The LITE stock is not so cheap, as suggested by the Value Score of F. In terms of the forward 12-month price-to-sales (P/S), LITE is trading at 10.93X, higher than the broader sector and peers. While the sector is trading at 6.54X, Ciena and Coherent trade at 7.63X, and 6.42X, respectively. However, LITE is trading at a discount compared with Marvell Technologies, shares of which trade at 13X.

LITE Stock is Trading at a Premium
Image Source: Zacks Investment Research

LITE's Prospects Ride on Strong AI DemandLumentum appears well positioned to benefit from a multiyear expansion in optical content as AI infrastructure increasingly shifts from copper toward optics. Beyond its current EML and transceiver strength, the company sees four major growth vectors — OCS, optical scale-out, optical scale-up and transceivers — with several still making only modest contributions to revenues. Management expects OCS and scale-out contributions to become more meaningful ahead, while optical scale-up could see major inflection points beginning in 2027.

The company has also highlighted the transition toward 1.6T and eventually 3.2T connectivity, which should increase optical content requirements. Lumentum’s strong position in differentiated high-performance lasers, where reliability, performance and customer manufacturing yields create meaningful barriers to entry, could enable the company to capture a sizable share of this expansion.

Scale-up connectivity and CPO/NPO represent particularly compelling longer-term opportunities. Lumentum expects optical scale-up to significantly increase optical intensity as connectivity moves inside and between AI racks, potentially creating an opportunity substantially larger than scale-out. According to LITE, optical intensity could increase by at least three times when scale-up takes hold, while CPO demand remained strong and CW-laser requirements continued to rise. OCS offers another substantial runway as customer engagements and use cases broaden, including higher and lower-port-count configurations and potential in-rack applications.

Longer term, Lumentum also intends to broaden its component portfolio beyond lasers into areas such as photonic ICs, photodiodes, laser drivers and potentially TIAs, expanding the company's addressable content within next-generation optical systems.

ConclusionLumentum appears to have entered the fiscal fourth quarter with strong momentum, backed by surging AI-related optical demand, the 1.6T transceiver ramp, tight EML and scale-across supply, improving mix and substantial operating leverage. More importantly, many of its potentially largest opportunities — including OCS, scale-out CPO and especially optical scale-up — remain at relatively early stages of adoption. Lumentum's differentiated laser portfolio, expanding optical footprint and exposure to rising AI connectivity requirements provide a favorable foundation for sustained revenue and earnings growth over the longer term.

Lumentum currently has a Zacks Rank #2 (Buy), which implies that investors should buy the stock ahead of fiscal fourth-quarter earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Microchip fiscal Q1 sales rose 38% to $1.485B as demand improved and inventory days fell to 175.Data center revenues jumped 97.8%, while PCIe Gen6 connectivity design wins doubled to 12 programs.Microchip sees fiscal Q2 sales of $1.589B-$1.618B and non-GAAP EPS of 91-95 cents. Microchip Technology (MCHP - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 76 cents per share, up 181.5% year over year and beating the Zacks Consensus Estimate by 8.6%.

Net sales of $1.485 billion rose 38% and beat the $1.448 billion consensus mark by 2.5%.

Improving demand, continued inventory normalization and stronger factory utilization supported the quarter. Inventory days declined to 175 from 185 at March-end, while bookings remained strong and the book-to-bill ratio stayed well above 1.

MCHP Demand Recovery Gains MomentumSales increased 13.2% sequentially and exceeded the high end of management’s prior guidance. Distribution sell-through increased meaningfully, while customer activity improved across several key end markets.

Microchip credited higher factory utilization, lower underutilization charges and disciplined expense management for improving operational leverage. The company also said stronger customer engagement and healthy booking activity reinforced confidence in the ongoing business recovery.

Mixed-signal microcontrollers remained Microchip’s largest product line, generating $739.1 million in sales. Analog contributed $410.9 million, while other products generated $334.7 million.

Geographically, Asia led with $769.5 million in revenues, followed by the Americas at $430.8 million and Europe at $284.4 million. Distribution accounted for 52% of first-quarter sales, while the direct channel represented 48%, highlighting a relatively balanced channel mix.

Microchip Data Center Momentum BuildsData center represented 17.1% of the June-quarter revenue mix and posted 97.8% year-over-year growth, the strongest growth rate among Microchip’s disclosed end markets.

Communications grew 53.3%, while aerospace and defense increased 45.6%.

Microchip also doubled its PCIe Gen6 connectivity design wins sequentially, exiting the quarter with 12 programs versus six at the end of March. The company expects its total data center portfolio to grow 69.3% year over year to $1 billion in calendar 2026, supported by products spanning connectivity, storage, power, timing and security.

MCHP Margin Expansion AcceleratesNon-GAAP gross margin reached 63.8%, expanding 949 basis points (bps) year over year.

Non-GAAP operating expenses represented 28.7% of sales compared with 33.7% in the year-ago period.

Non-GAAP operating income was $521.1 million, up from $222.3 million a year earlier, underscoring the operating leverage generated by the revenue rebound. Non-GAAP operating margin climbed 1,443 bps to 35.1%, reflecting stronger absorption of manufacturing costs as utilization improved.

MCHP Cash Flow and Leverage ImproveAs of June 30, 2026, Microchip had cash and short-term investments of $272.3 million.

Cash flow from operations totaled $511.5 million compared with $275.6 million in the year-ago quarter. Free cash flow increased to $497.6 million from $257.7 million, representing 33.5% of net sales.

Microchip reduced net debt by approximately $170 million during the quarter. Net debt to adjusted trailing 12-month EBITDA improved to 2.85x from 3.54x in the prior quarter. The company also returned $246.9 million to common stockholders through dividends.

Microchip Guides Strong September QuarterFor the second quarter of fiscal 2027, Microchip expects net sales between $1.589 billion and $1.618 billion, which represents sequential growth of 7-9%, with the midpoint implying approximately 40.6% year-over-year growth.

The company expects non-GAAP gross margin of 66-67%, operating margin of 38.5-39.5% and operating expenses at 27.5% of sales.

Non-GAAP earnings are projected at 91-95 cents per share.

Capital expenditures are expected at $20-$25 million for the September quarter and approximately $100 million for fiscal 2027.

Zacks Rank & Upcoming Earnings to ConsiderMicrochip currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are NVIDIA (NVDA - Free Report) , Inuvo (INUV - Free Report) and Kimball Electronics (KE - Free Report) . While Inuvo and Kimball Electronics sport a Zacks Rank #1 (Strong Buy) each at present, NVIDIA has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA, Inuvo and Kimball Electronics are set to report their quarterly results on Aug. 26, 11 and 12, respectively. Year to date, shares of Kimball Electronics and Inuvo have dropped 5.1% and 58.9%, respectively, while NVIDIA has jumped 17.4%.

Key Takeaways NYT shares fell 12.8% in four weeks as investors weigh growth and execution risks.NYT added 280,000 digital-only subscribers in Q2, below prior quarters' stronger gains.Digital-only subscription and advertising revenues grew, while print declines added pressure. The New York Times Company (NYT - Free Report) shares have fallen 12.8% over the past four weeks, putting attention on whether the retreat has improved the stock’s risk-reward profile.

The business still shows digital strength, but slower subscriber additions, print declines and elevated costs complicate the case. Investors must weigh recurring digital revenue growth and pricing power against those execution risks.

NYT Subscriber Growth Faces New QuestionsNYT ended the second quarter of 2026 with 13.35 million total subscribers, including 12.80 million digital-only subscribers. It added 280,000 net digital-only subscribers during the quarter, down from 310,000 in the first quarter.

The slowdown is clearer against the second half of 2025, when quarterly digital-only net additions reached 460,000 and 450,000.

Digital Revenue Supports NYT’s Business ModelDigital-only subscription revenues rose 16.4% year over year to $407.9 million in the second quarter. Digital-only average revenue per user increased 3.1% to $9.94, supported by subscribers moving from promotional offers to higher prices and pricing actions for certain tenured subscribers.

Digital advertising revenues climbed 20.7% to $114 million, helped by marketer demand and greater advertising supply. News Corporation (NWSA - Free Report) offers a relevant comparison, with Dow Jones continuing to grow digital-only subscriptions while print volume declines. Fox Corporation (FOXA - Free Report) is also leaning on digital growth, including streaming, as media companies compete for audience attention and advertising budgets.

NYT Print Declines Add PressurePrint remains a structural drag. Second-quarter print advertising revenues fell 11.1% year over year to $35.2 million, while print subscription revenues declined 0.8% to $130 million.

Print subscribers also slipped to about 550,000 from 580,000 a year earlier. That makes continued digital growth increasingly important because the newer revenue streams must absorb ongoing erosion in the legacy business.

NYT Valuation Tests Investor ConfidenceThe recent pullback has brought NYT’s forward 12-month earnings multiple down to 20.9X. That compares with 19.6X for its Zacks sub-industry, 17.2X for the Zacks sector and 20.7X for the S&P 500.

The discount from NYT’s five-year median multiple of 27.3X is meaningful, but the stock is not clearly cheap relative to current benchmarks. The Zacks Consensus Estimate calls for 2026 earnings of $2.92 per share and revenues of $3.10 billion, while the current-year earnings estimate has edged 0.3% lower over the past four weeks.

Image Source: Zacks Investment Research

NYT’s Rankings Reflect Mixed SignalsThe pullback creates a more measured valuation setup, but near-term caution remains warranted given slowing subscriber additions, print weakness and continued spending on journalism, marketing and product development. Second-quarter adjusted operating costs rose 10% year over year to $607.2 million.

NYT currently carries a Zacks Rank #4 (Sell), a short-term signal tied to earnings estimate revisions. Its Growth Score of A and Momentum Score of A point to favorable growth and momentum characteristics, while its Value Score of D indicates weaker value characteristics. The VGM Score of B is favorable, but Style Scores are designed to complement the Zacks Rank rather than override it. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CareTrust REIT, Inc. (CTRE) Q2 2026 Earnings Call August 7, 2026 11:00 AM EDT

Company Participants

Lauren Beale - Senior VP & Chief Accounting Officer
David Sedgwick - CEO, President & Director
James Callister - Chief Investment Officer & Secretary
Derek Bunker - CFO & Treasurer

Conference Call Participants

William John Kilichowski - Wells Fargo Securities, LLC, Research Division
Austin Wurschmidt - KeyBanc Capital Markets Inc., Research Division
Robin Haneland - BMO Capital Markets Equity Research
Michael Goldsmith - UBS Investment Bank, Research Division
Michael Carroll - RBC Capital Markets, Research Division
Farrell Granath - BofA Securities, Research Division
Richard Anderson - Cantor Fitzgerald & Co., Research Division
Alec Feygin - Robert W. Baird & Co. Incorporated, Research Division
David Rodgers - Raymond James & Associates, Inc., Research Division
Michael Stroyeck - Green Street Advisors, LLC, Research Division
Jyoti Yadav - Mizuho Securities USA LLC, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to the CareTrust Second Quarter Earnings Call. [Operator Instructions] I will now hand the conference over to Lauren Beale, Chief Accounting Officer. Lauren, please go ahead.

Lauren Beale
Senior VP & Chief Accounting Officer

Thank you, and welcome to CareTrust REIT's Second Quarter 2026 Earnings Call. Today, we will make forward-looking statements based on management's current expectations, including statements regarding future financial performance, dividends, acquisitions, investments, financing plans, business strategies and growth prospects. These forward-looking statements are subject to risks and uncertainties that could cause actual results to materially differ from our expectations. These risks are discussed in CareTrust REIT's most recent Form 10-Q filing with the SEC. We do not undertake a duty to update or revise these statements, except as required by law.

During the call, the company will reference non-GAAP metrics such as EBITDA, FFO and FAD. A reconciliation of these measures to the most comparable GAAP financial measures is available in our

Key Takeaways Gartner raised 2026 adjusted EPS guidance to at least $14 and free cash flow to at least $1.185B.Gartner cut adjusted revenue guidance to at least $6.375B as Consulting revenues fell 8.8% in Q2.Gartner's Q2 adjusted EBITDA margin rose to 27.8%, while buybacks helped adjusted EPS climb 23.8%. Gartner, Inc. (IT - Free Report) raised its 2026 profit and cash-flow expectations even as it lowered its adjusted revenue outlook. The divergence shifts investor attention toward cost control, margins and capital allocation.

The key question is whether those levers can keep supporting per-share earnings while top-line growth remains restrained.

Gartner Raises Its 2026 Profit ExpectationsGartner lifted adjusted EPS guidance to at least $14 from $13.25. Adjusted EBITDA excluding the divested operation is now expected to reach at least $1.570 billion, up from $1.545 billion previously.

Free cash flow guidance also increased to at least $1.185 billion from $1.160 billion. The higher targets point to greater confidence in profitability and cash generation despite a more measured revenue outlook.

IT Trims Its Revenue OutlookAdjusted revenue guidance declined to at least $6.375 billion from $6.405 billion. The Insights revenue outlook also moved lower to at least $5.170 billion from $5.200 billion.

The simultaneous profit upgrade and revenue reduction puts more weight on operating efficiency and business mix. Gartner said expenses reflect agile cost management while it continues investing in experts and artificial intelligence to support future top-line growth.

Gartner’s Q2 Margins Show Why Profits Can RiseSecond-quarter adjusted EBITDA excluding the divested operation increased 6.4% to $466 million. The corresponding margin reached 27.8%, expanding 90 basis points year over year.

GAAP operating income rose to $378.5 million from $327.1 million. Operating margin improved to 22.6% from 19.4%, reinforcing the margin expansion behind the higher full-year profit expectations.

IT’s Segment Mix Creates Both Support and PressureInsights revenues rose 2.1% to $1.290 billion, while Conferences revenues increased 15.5% to $244 million. Conferences contribution margin reached 59.5%, up from 57.4% a year earlier.

Consulting revenues fell 8.8% to $142 million and contribution declined 12.6% to $54 million. Forrester Research, Inc. (FORR - Free Report) , an independent research and advisory firm, is a relevant peer for the Insights business. Accenture plc (ACN - Free Report) , which offers broad consulting and technology services, provides context for Gartner’s Consulting exposure.

Gartner’s Cash Flow and Buybacks Add LeverageSecond-quarter free cash flow increased 8.9% to $378 million. Gartner also repurchased 3.6 million shares for $547 million during the quarter, while its board increased the repurchase authorization by $500 million in July.

Adjusted EPS rose 23.8% to $4.37, faster than the 6.6% increase in adjusted net income to $291 million. The diluted share count fell to 66.6 million from 77.4 million, showing how buybacks amplified per-share growth.

                                                                 Image Source: Zacks Investment Research

IT’s Positive Signals Reinforce the Profit StoryGartner’s raised earnings and free cash flow outlook, wider margins and lower share count support the profit case, but slower revenue expectations keep execution risk in focus. Improvement in Consulting and sustained margin discipline remain important variables.

The stock currently carries a Zacks Rank #1 (Strong Buy), You can see the complete list of today’s Zacks #1 Rank stocks here.It carries a Value Score of A and VGM Score of A. It also has a Growth Score of B and Momentum Score of B.

The Zacks Rank places IT among the top-ranked stocks based on earnings estimate revisions, while the A and B Style Scores indicate favorable value, growth and momentum characteristics. These signals are positive, but revenue growth and segment execution still warrant monitoring.

PANews August 7 news, THENA released “The ARK Initiative” proposal, proposing integrated adjustments to protocol fee distribution, token emissions and resource framework. According to the plan, spot trading fees are proposed to be distributed 40% to veTHE voters, 60% to the protocol treasury, and the distribution of trading fees to theNFT under the original structure will be suspended.

THE emissions are proposed to be adjusted to: 77.5% for LP incentives (previously 67.5%), 15% for veTHE rebase (previously 30%), 2.5% to developer wallets, and 5% to the protocol treasury. The protocol treasury, under the supervision of the foundation, will be used for product development, security, ecosystem activities, TVL growth, marketing, partnerships, and potential protocol value accumulation initiatives.

THENA stated that the foundation previously assessed funding the transformation through an additional 10% THE issuance, but after further review, it believed this could cause unnecessary dilution and affect community alignment, so it decided not to proceed. This proposal has not minted any tokens, and the ARK initiative will not introduce this additional supply. The initiative is currently in the community discussion phase and will later enter governance voting.

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SummaryArista Networks, Inc. delivered another strong quarter, beating revenue by 7.5% and EPS by 15%.ANET is a prime beneficiary of the ongoing AI-driven capital expenditure surge among hyperscalers.Despite consistent outperformance, ANET stock trades at ~50x forward earnings, reflecting high expectations for future growth.I remain neutral on ANET, as exceptional results and growth are already priced into the stock's current valuation.Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More » Sundry Photography/iStock Editorial via Getty Images

Article Thesis Arista Networks, Inc. (ANET) reported strong results for its fiscal second quarter. The company is a big beneficiary of the ongoing AI capital expenditures boom, and as long as hyperscalers

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Key Takeaways Arista Networks launched new AI networking platforms for larger, more efficient AI clusters. Arista Networks expects at least $3.6 billion in 2026 AI revenue as Ethernet AI adoption expands. Arista Networks says AI fabric customers now exceed 100 and is expanding into scale-across AI networking. Arista Networks (ANET - Free Report) recently unveiled a new generation of AI networking platforms aimed at supporting increasingly complex AI infrastructure. The launch builds on the company's growing AI networking franchise and reflects its strategy of delivering high-performance Ethernet solutions that span scale-up, scale-out and scale-across AI deployments. While the new products expand Arista's long-term addressable market, investors will be watching customer adoption and execution to determine whether the company's AI momentum can continue. 

How the New ANET Platform Targets AI ClustersArista's latest product introductions are designed to address the networking requirements of next-generation AI clusters. The company introduced the 7060XE7 Series, a family of 1.6-terabit Etherlink AI fabric platforms capable of delivering up to 100 terabits per second of system bandwidth. The new portfolio also includes liquid-cooled options, helping customers improve power efficiency while supporting larger AI deployments. According to management, the platforms are optimized for scale-up, scale-out and scale-across AI networking architectures, enabling customers to build increasingly powerful AI infrastructure while reducing networking bottlenecks. 
 

Management also highlighted the company's flagship 7800 AI Spine platform, which enables customers to scale AI networks without adding additional networking tiers. These capabilities position Arista to support both traditional AI training clusters and geographically distributed AI environments. 

Why Ethernet AI Matters for AristaEthernet continues gaining traction as AI networking architectures evolve, creating a significant opportunity for Arista. The company expects AI-related revenue of at least $3.6 billion in 2026, supported by expanding adoption of Ethernet-based AI fabrics. Management noted that cumulative AI fabric customers now exceed 100, up from only four to five customers in 2024, highlighting the rapid pace of adoption.

Beyond traditional scale-out networking, Arista is expanding into scale-across AI networking, which connects geographically distributed AI clusters. Management estimates this market could reach $15-$20 billion by 2030, with scale-across representing roughly 30% of the company's targeted AI revenue opportunity in 2026. This broadens Arista's addressable market while reinforcing Ethernet's growing role in AI infrastructure.

How Software Strengthens the AI OfferingHardware innovation is only part of Arista's AI strategy. The company's Extensible Operating System (EOS) provides a unified software platform across AI fabrics, cloud data centers and enterprise networks, helping customers simplify operations while improving scalability. During the earnings call, management highlighted several software innovations that differentiate its AI networking platform.

Smart System Upgrade (SSU) enables software upgrades without disrupting network operations, an important capability for AI clusters that require maximum uptime. Multipath Reliable Connection (MRC) improves AI training efficiency by allowing data flows to use multiple network paths simultaneously, while Segment Routing over IPv6 (SRv6) dynamically redirects traffic to avoid congestion and maximize network utilization. Combined with EOS automation and programmability, these technologies help improve AI cluster performance and operational efficiency.

What Investors Should Watch NextThe success of Arista's latest AI platforms will ultimately depend on customer adoption and execution. Investors should monitor the pace of AI platform deployments, expansion of the AI fabric customer base and management's ability to convert design wins into sustained revenue growth. Manufacturing readiness, supply-chain execution and timely product deliveries will also remain important as customers continue investing heavily in AI infrastructure.

Competition remains another key consideration. Arista competes with established networking vendors such as Cisco Systems, Inc. (CSCO - Free Report) and NVIDIA Corporation (NVDA - Free Report) , both of which are investing heavily in AI networking technologies. Cisco is expanding its Ethernet-based AI infrastructure portfolio, while NVIDIA continues strengthening its high-performance networking offerings for AI data centers. Continued product innovation and software differentiation will therefore be essential for Arista to maintain its leadership position in Ethernet-based AI networking.

How the Zacks Signals Frame the OpportunityANET currently carries a Zacks Rank #2 (Buy), reflecting favorable earnings estimate revisions following the company's strong operating performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also has a Growth Score of A, underscoring its robust earnings and revenue expansion prospects driven by AI networking demand. At the same time, its Value Score of F indicates that investors are assigning a premium valuation to those growth opportunities. Meanwhile, the Momentum Score of C suggests more balanced trading characteristics after the recent rally, while the VGM Score of C reflects an overall balanced profile. Together, these signals reinforce that Arista remains a compelling AI growth story, although continued execution will be critical to justify its premium valuation.

Key Takeaways CRH plans to buy Arcosa for about $8.5 billion, with closing expected in the first quarter of 2027.CRH targets $175 million in annual cost synergies by year three as debt and integration demands rise.Arcosa would lift CRH's annualized U.S. aggregates production to more than 265 million tons. CRH plc (CRH - Free Report) plans to acquire Arcosa, Inc. (ACA) for approximately $8.5 billion, with closing expected in the first quarter of 2027, subject to stockholder, regulatory and customary approvals.

The deal could materially deepen CRH’s U.S. aggregates and critical infrastructure exposure. Its investment impact, however, will depend on financing discipline, integration and delivery of the projected synergies.

CRH’s Arcosa Deal Expands U.S. AggregatesArcosa would add about 35 million tons of annual aggregates production. CRH says the combination would lift its annualized U.S. aggregates production to more than 265 million tons while adding exposure to 13 of the 50 largest U.S. metropolitan areas.

Vulcan Materials Company (VMC - Free Report) , the nation’s largest producer of construction aggregates, remains a key benchmark for U.S. aggregates scale. Martin Marietta Materials, Inc. (MLM - Free Report) , a leading national supplier of aggregates and heavy building materials, provides another close comparison as CRH expands its U.S. materials footprint.

CRH Adds More Energy Infrastructure ExposureArcosa’s Engineered Structures business would extend CRH beyond aggregates into energy infrastructure. The business holds a top-three market position and serves demand tied to grid modernization, electrification and data center construction.

That exposure fits CRH’s connected portfolio strategy across transportation, water and reindustrialization. Combining materials and infrastructure products can give CRH more ways to participate in large projects rather than relying on a single construction end market.

CRH Targets $175 Million in Cost SynergiesCRH expects approximately $175 million of annual run-rate cost synergies by year three. Its presentation outlined an expected ramp from about $60 million in year one to $130 million in year two before reaching the full target.

Management expects the transaction to be accretive to earnings, margin and cash flow in the first 12 months after completion, before one-off transaction costs. Achieving those benefits will depend on production efficiencies, procurement savings, self-supply opportunities and integration execution.

CRH Faces Higher Financing and Integration RiskFinancing is the main counterweight to the strategic case. CRH initially arranged a $5.8 billion bridge facility, while a subsequent $2.5 billion three-year term loan reduced bridge commitments to $3.3 billion.

Net debt stood at $15.4 billion on June 30, 2026, up from $14.2 billion at 2025-end. CRH also paused new share-repurchase tranches after announcing Arcosa, while its filings warn that larger acquisitions can increase indebtedness and integration demands.
CRH Has Liquidity to Support the Transaction

CRH ended June with about $3.1 billion of cash and restricted cash. It also had $4.5 billion of undrawn committed facilities available through May 2030, providing additional flexibility for working capital, debt maturities and investment needs.

The company intends to maintain a strong investment-grade credit rating. CRH estimated a pro forma 2026 net debt-to-adjusted EBITDA ratio of 2.4 for the combined balance sheet, making post-deal deleveraging and cash generation important indicators to watch.

CRH’s Mixed Scores Keep the Deal in PerspectiveArcosa could strengthen CRH’s U.S. infrastructure platform, but the size of the transaction raises the importance of integration, synergy realization and financing discipline. The strategic opportunity is meaningful, yet the investment case still calls for measured expectations.

CRH currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of C, Momentum Score of F and VGM Score of C. The favorable Value Score contrasts with weaker momentum and middle-of-the-road growth and VGM readings, supporting a patient stance while execution develops. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways WHR's Q2 results showed early turnaround progress from pricing, cost cuts and balance-sheet actions.Pricing actions lifted North America margins as WHR implemented promotional and list price increases.Whirlpool expects over $150 million in 2026 structural cost takeout through efficiency efforts. Whirlpool Corporation (WHR - Free Report) reported second-quarter 2026 results that showed early progress in its turnaround efforts, driven by pricing actions, cost reductions and balance sheet initiatives. However, the company continues to face pressure from weak appliance demand, elevated costs and higher interest expense.

Whirlpool’s recovery strategy focuses on improving profitability while maintaining financial flexibility. The company’s second-quarter performance reflected sequential margin improvement, but earnings remained below prior-year levels as operating challenges persisted.

WHR Pricing Strategy Begins Delivering ResultsWhirlpool’s pricing actions are beginning to support margin recovery, particularly in North America. In the second quarter of 2026, MDA North America net sales increased 8% sequentially, while EBIT margin improved 240 basis points from the first quarter, driven primarily by previously announced promotional price increases.

The company executed a promotional price increase of more than 10% compared with first-quarter prices and implemented an additional list price increase of approximately 4% effective in July. Whirlpool expects these actions, along with builder pricing, to provide additional benefits during the second half of 2026.

Cost Reduction Program Supports Long-Term Margin GoalsWhirlpool continues to advance structural cost-reduction initiatives aimed at creating a lower-cost operating structure. The company remains on track to deliver more than $150 million in structural cost takeout in 2026 through automation, strategic sourcing and fixed-cost actions.

The company is also pursuing footprint optimization efforts, including the modernization of the Amana facility, development of the Perrysburg facility and distribution network changes. These initiatives are expected to provide additional EBIT benefits beyond 2026, with larger contributions expected in 2027 and 2028.

Image Source: Zacks Investment Research

Debt and Interest Costs Remain Key Investor ConcernsWhirlpool has improved liquidity through financing actions, including the completion of a $2 billion asset-based lending facility and issuance of $2 billion in secured bonds. These steps extended debt maturities and strengthened financial flexibility.

However, leverage remains a key consideration. Whirlpool raised its expected 2026 interest expense outlook to approximately $350 million from $300 million following refinancing activity, which contributed to lower earnings guidance despite maintaining its operational outlook.

Management expects net debt to decline below $5 billion by year-end 2026 and is targeting more than $300 million in free cash flow as part of its deleveraging efforts.

WHR Recovery Depends on Housing and Consumer DemandA sustained recovery will depend partly on improvement in appliance demand and housing activity. Whirlpool reported second-quarter 2026 net sales of $3.52 billion, down 6.8% year over year, while U.S. appliance industry demand declined 3.4%.

Lower industry demand has limited volume growth, increasing Whirlpool’s reliance on pricing actions and efficiency improvements to support profitability. MDA North America sales declined 1.5% year over year, with favorable price/mix partially offsetting lower volumes.

The company also continues to face competitive pressure in the consumer products market, with peers such as SharkNinja, Inc. (SN - Free Report) and Newell Brands Inc. (NWL - Free Report) providing additional context for investors evaluating Whirlpool’s recovery outlook.

WHR currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of F, Momentum Score of F and VGM Score of D. The ratings highlight a mixed investment profile, with valuation support offset by weaker growth and momentum indicators.

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

Until demand conditions improve, Whirlpool’s turnaround remains dependent on continued execution of pricing initiatives, cost reductions and balance sheet management.

Updated 28 min agoPublished 2 hrs ago

3 min read

BitMEX sale collapsed as buyers balked at founder ownership and shrinking business. (Shutterstock)Summary

Reputational baggage, fading growth and founder control combined to drive potential acquirers away, according to a source familiar with the discussions.The crypto exchange failed to secure a buyer before deciding to wind down operations last month.BitMEX's declining business made it difficult to justify a growth valuation, the person said.Before once-popular crypto exchange BitMEX announced plans to wind down operations, it spent two years exploring a sale with multiple prospective buyers including competitor exchanges and payments platform Exodus, but failed to clinch a deal, according to a person familiar with the matter.

The would-be acquirers, the person said, were put off by the company's founder-led ownership structure, its shrinking business, and lingering reputational issues.

CoinDesk reported in early 2025 that investment bank Broadhaven was advising the Seychelles-based company on a sale process.

Although co-founders Arthur Hayes, Ben Delo and Samuel Reed had long since stepped away from the business after U.S. criminal charges were brought against them in 2020, one prospective buyer was uncomfortable that they still controlled a large majority of the company, the person said, who spoke on condition of anonymity as the matter is private.

That made negotiations harder because buyers typically want part of the acquisition payout to encourage executives to stay with the company after the deal closes.

The company's deteriorating financial performance compounded these concerns. BitMEX continued to lose market share throughout the sale process as trading activity migrated to larger centralized exchanges and decentralized perpetual futures platforms. This made potential acquirers reluctant to pay the revenue multiple typically reserved for growing businesses, the person said.

Both BitMEX and Exodus did not respond to requests for comment by publication time.

The exchange was reportedly seeking a valuation of around $1 billion during the process, although it is unclear whether formal bids were ever submitted.

BitMEX was one of crypto's most influential exchanges, pioneering the perpetual futures contract in 2016 with the launch of its XBTUSD perpetual swap. Unlike traditional futures, perpetuals have no expiry date and instead use a funding-rate mechanism to keep prices aligned with the underlying asset, allowing traders to maintain leveraged long or short positions indefinitely.

The product revolutionized crypto derivatives trading, was rapidly adopted across the industry, and today accounts for the vast majority of crypto derivatives volume on other exchanges such as Binance, Bybit and Hyperliquid.

The company announced on July 24 that it would wind down operations following a strategic review by its parent, HDR Global Trading, and immediately halting new account registrations ahead of its planned Sept. 23 closure.

The failed sale stands in contrast to a broader rebound in crypto dealmaking.

As institutional interest has returned and regulatory uncertainty has eased, buyers have pursued acquisitions to expand trading, custody and infrastructure businesses. But unlike many recent targets, BitMEX entered the market with declining market share, lingering legal baggage and an ownership structure that complicated a deal.

Dealmaking has remained active across the digital asset industry in recent months, with SBI Holdings agreeing to acquire Japanese crypto exchange Bitbank for $289 million, Keyrock buying BlockFills' institutional trading business, and Bullish (BLSH), CoinDesk's owner, agreeing to acquire transfer agent Equiniti for $4.2 billion.

There have been 144 announced mergers and acquisitions worth $11.8 billion so far in 2026, up 3.5% from the same period last year, according to advisory firm Architect Partners.

The exchange is now facing a lawsuit alleging it withheld traders' collateral and engaged in insider trading. The complaint claims that the co-founders designed the platform to retain customer collateral while transferring excess bitcoin BTC$64,764.57 into BitMEX's insurance fund.

Read more: The inside story of how a hike in Hong Kong changed crypto trading forever

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Building the Zcash Machine: Tachyon and Quantum Readiness

Building the Zcash Machine: Tachyon and Quantum Readiness

Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.

Jun 30, 2026

Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.

Why it matters:

Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.

For the quarter ended June 2026, Plains All American Pipeline (PAA - Free Report) reported revenue of $17.69 billion, up 66.3% over the same period last year. EPS came in at $0.41, compared to $0.36 in the year-ago quarter.

The reported revenue represents a surprise of +20.55% over the Zacks Consensus Estimate of $14.68 billion. With the consensus EPS estimate being $0.40, the EPS surprise was +2.5%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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

Here is how Plains All American performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Crude oil pipeline tariff volumes- Total: 10595 thousands of barrels of oil versus 10320.09 thousands of barrels of oil estimated by two analysts on average.Segment Adjusted EBITDA- NGL: $40 million versus $25.28 million estimated by two analysts on average.Segment Adjusted EBITDA- Crude oil: $690 million compared to the $700.17 million average estimate based on two analysts.View all Key Company Metrics for Plains All American here>>>

Shares of Plains All American have returned +3% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Arlo Technologies, Inc. (ARLO) Q2 2026 Earnings Call August 6, 2026 5:00 PM EDT

Company Participants

Tahmin Clarke - Investor Relations Executive
Matthew McRae - CEO & Director
Kurt Binder - CFO & COO

Conference Call Participants

Jacob Stephan - Lake Street Capital Markets, LLC, Research Division
Dylan Becker - William Blair & Company L.L.C., Research Division
Rian Bisson - Craig-Hallum Capital Group LLC, Research Division
Scott Searle - ROTH Capital Partners, LLC, Research Division
Adam Tindle - Raymond James & Associates, Inc., Research Division
Martin Yang - Oppenheimer & Co. Inc., Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. [Operator Instructions] I would now like to turn the conference over to Tahmin Clarke. Please go ahead.

Tahmin Clarke
Investor Relations Executive

Before we begin the formal remarks, we advise you that today's conference call contains forward-looking statements. Forward-looking statements include statements regarding our potential future business, operating results and financial condition, including our description of revenue, gross margins, operating margins, earnings per share, expenses, cash outlook, free cash flow and free cash flow margin, ARR and other KPIs, guidance for the third quarter and full year 2026, the long-range plan targets, the rate and timing of paid subscriber growth, the commercial launch and momentum of new products and services, the timing and impact of tariffs, strategic objectives and initiatives, market expansion and future growth, partnerships with various market leaders and strategic collaborators, continued new product and service differentiation and the impact of general macroeconomic conditions on our business, operating results and financial condition.

Actual results or trends could differ materially from those contemplated by these forward-looking statements. For more information, please refer to the risk factors discussed in Arlo's periodic filings with the SEC, including our quarterly report on Form 10-Q filed earlier today. Any forward-looking statements that we make on this call are

Oklo Inc. (OKLO) Q2 2026 Earnings Call August 7, 2026 8:30 AM EDT

Company Participants

Sam Doane - Senior Director of Investor Relations
Jacob Dewitte - Co-Founder, CEO & Chairman
Richard Bealmear - Chief Financial Officer

Conference Call Participants

Nathaniel Pendleton - Texas Capital Securities, Research Division
George Gianarikas - Canaccord Genuity Corp., Research Division
Joseph Osha - Guggenheim Securities, LLC, Research Division
Ryan Pfingst - B. Riley Securities, Inc., Research Division
Brian Lee - Goldman Sachs Group, Inc., Research Division
Christopher Souther - Truist Securities, Inc., Research Division
Jeremy Tonet - JPMorgan Chase & Co, Research Division
Rinny Singh - BofA Securities, Research Division
Derek Soderberg - Cantor Fitzgerald & Co., Research Division
Jonathan Dorsheimer - William Blair & Company L.L.C., Research Division
Maxwell Hopkins - CLSA Limited, Research Division
Sherif Elmaghrabi - BTIG, LLC, Research Division
Craig Shere - Tuohy Brothers Investment Research, Inc.

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to Oklo's Second Quarter 2026 Financial Results and Webcast. [Operator Instructions] I will now hand the conference over to Sam Doane, Senior Director of Investor Relations. Sam, please go ahead.

Sam Doane
Senior Director of Investor Relations

Thank you, operator, and welcome, everyone, to Oklo's Second Quarter 2026 Earnings and Company Update Call. I'm Sam Doane, Oklo's Senior Director of Investor Relations. Joining me today are Jake Dewitte, Oklo's Co-Founder and Chief Executive Officer; and Craig Bealmear, our Chief Financial Officer. Earlier today, we released our second quarter 2026 financial results. Today's accompanying slide presentation is available on the Investor Relations section of our website.

Before we begin, I'd like to remind everyone that today's discussion, including our prepared remarks and the question-and-answer session that follows, will include forward-looking statements. These statements reflect our current views regarding trends, assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those discussed today. We encourage you to review our forward-looking

Key Takeaways TSCO gained 13% in a month, but shares remain down 44.6% over the past 52 weeks.Tractor Supply cut its 2026 outlook as weaker traffic and discretionary spending pressured results.TSCO's digital sales grew at a double-digit rate, while Fusion, pet and Final Mile investments advanced. Tractor Supply Company (TSCO - Free Report) shares have gained 13% in the past month, extending a near-term rebound after a much weaker longer-term stretch. The move has revived interest in whether operating initiatives can support a more durable recovery.

That question remains unsettled. Softer discretionary demand, expense pressure and lower earnings visibility continue to weigh on the setup, while digital growth, store investments and pet initiatives provide potential offsets.

TSCO's One-Month Rebound Meets Mixed FundamentalsTSCO's 13% one-month gain follows an 11.9% rise over the past three months, but the shares are still down 44.6% over 52 weeks. The contrast shows how sharp the latest bounce has been relative to the stock's broader decline.

Fundamentals remain mixed. Management lowered its 2026 outlook after weaker traffic and discretionary spending hurt seasonal and big-ticket categories, while the current-fiscal-year earnings estimate has fallen 8.6% over the past four weeks. That revision trend keeps earnings visibility limited even as the share price recovers.

Tractor Supply's Sales Trends Still Look FragileSecond-quarter comparable-store sales fell 1.5% as transactions declined 1.7% and average ticket increased just 0.2%. Positive comps in April and June were more than offset by a weak May, when big-ticket and hardlines spring goods reduced the quarterly comp by about two percentage points.

Image Source: Zacks Investment Research

Needs-based consumable, usable and edible categories remained resilient, but discretionary demand stayed soft. The Home Depot, Inc. (HD - Free Report) reported 0.6% comparable-sales growth in the first quarter of fiscal 2026 while citing consumer uncertainty and housing affordability pressure. Lowe's Companies, Inc. (LOW - Free Report) also posted 0.6% comparable-sales growth in its first quarter, with spring execution and online growth supporting results despite a challenging housing backdrop.

TSCO's Cost Pressures Cloud the Earnings SetupAdjusted selling, general and administrative expenses rose 7.3% in the second quarter and deleveraged 118 basis points to 25.1% of sales. Lower comps were the main pressure, while higher medical claims and legal settlements added about 35 basis points.

More cost pressure is still ahead. Start-up spending for Tractor Supply's 11th distribution center is expected to create an SG&A headwind of about 20 basis points in both the third and fourth quarters. Management now expects 2026 adjusted operating margin of 8.5%-8.8%, below its prior range.

Tractor Supply Has Real Operational OffsetsTractor Supply is not relying only on a demand recovery. Digital sales grew at a double-digit rate in the second quarter, supported by delivery from store, higher traffic and improved conversion. Final Mile deliveries in the first half already matched the total completed in all of 2025.

Project Fusion, localized assortments and pet initiatives offer additional levers. Freshpet was in about 250 stores at quarter-end and remains on track for at least 700 by year-end. New stores continue to generate attractive returns, while capital is being shifted toward Fusion remodels, localization and Final Mile delivery.

TSCO's Signals Still Favor CautionThe rebound has improved the stock's recent price action, but the broader investment signals still argue for restraint. TSCO currently carries a Zacks Rank #5 (Strong Sell), which reflects unfavorable earnings-estimate revision trends and points to a weaker near-term outlook.

The stock also has a VGM Score of F, with a Value Score of D, Growth Score of D and Momentum Score of F. Those readings suggest the recent share-price strength has not been matched by favorable value, growth or momentum characteristics, leaving the rebound vulnerable until the underlying signals improve.

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

Key Takeaways Zeta Global shares rose 12.9% as Q2 revenues jumped 43.5% and adjusted EBITDA climbed 56% y/y.ZETA raised 2026 revenue guidance to $1.811-$1.824 billion as its sales pipeline expanded more than 60%.Zeta Global saw Athena adoption rise as customer metrics improved, though margin and integration risks remain. Zeta Global Holdings Corp. (ZETA - Free Report) shares gained 12.9% in the past week as investors weighed accelerating growth, improving customer metrics and a higher 2026 outlook.

The rally raises a tougher question. Can stronger execution and rising AI adoption support additional gains as expectations, integration work and near-term margin demands also increase?

ZETA's Rally Follows a Strong Q2 BeatSecond-quarter revenues rose 43.5% year over year to $442.8 million, topping the consensus mark by 5.4%. Non-GAAP earnings of 21 cents per share beat estimates by 5%, while adjusted EBITDA climbed 56% to $92 million.

Zeta also raised full-year 2026 revenue guidance to $1.811-$1.824 billion. At the midpoint, the outlook implies about 39% year-over-year growth. Free cash flow guidance increased to $254.8-$255.8 million, giving investors another measure of operating progress.

Zeta's Pipeline Supports Further GrowthThe sales pipeline expanded more than 60% year over year and increased by more than $100 million during the prior 90 days. Pipeline creation per seller more than doubled, indicating that productivity is improving alongside the larger opportunity set.

Average contract values on deals won rose more than 40%. That mix matters because larger wins can support future revenue growth, although long sales cycles can make the timing of conversion uneven from quarter to quarter.

ZETA's AI Adoption Deepens Customer ValueMore than 40% of super-scaled customers became monthly active Athena users within 130 days of its enterprise launch. Super-scaled customer average revenue per user reached $1.8 million, up 17% year over year, while the customer count rose 17% to 197.

Zeta said momentum from collaborations with Snowflake Inc. (SNOW - Free Report) and Palantir Technologies Inc. (PLTR - Free Report) is supporting its AI positioning. Snowflake operates an AI Data Cloud spanning data engineering, analytics and AI, while Palantir's Artificial Intelligence Platform connects AI with enterprise operations. Those relationships broaden Zeta's ecosystem as Athena adoption develops.

Zeta Still Faces Margin and Timing RisksNew agency business that initially ramps through social channels can lift GAAP cost of revenues before customers move toward Zeta-owned channels. That creates a potential margin timing issue even when customer activity is expanding.

Other risks remain. Zeta cites acquisition integration, including Marigold's Enterprise Business, as a potential execution challenge. Customer spending can also be affected by broader economic conditions, while Athena usage may precede monetization and produce uneven near-term results.

ZETA's Mixed Signals Temper the RallyThe stock currently carries a Zacks Rank #3 (Hold), which points to a neutral near-term earnings-revision signal rather than a clear bullish call. You can see the complete list of today’s Zacks #1 Rank stocks here.

That tempers the price move even as revenue growth, customer expansion and guidance have improved.

ZETA has a Growth Score of A, highlighting favorable growth characteristics, but its Value Score of D and Momentum Score of F are less supportive. The VGM Score of C reflects that mixed profile. The latest operating trends strengthen the fundamental case, but the Rank and Style Scores suggest investors should balance that progress against valuation, momentum and estimate-revision considerations.

Key Takeaways SPCX fell 24.5% in a month even as Q2 revenues surged 91.9% and its per-share loss narrowed sharply.Starlink subscribers doubled to 12 million, lifting Connectivity revenue 65.8% and operating income 79.4%.AI revenue jumped 247.5%, but heavy capex, operating losses and Starship execution risks weigh on the setup. Space Exploration Technologies Corp. (SPCX - Free Report) shares have fallen 24.5% in the past month even as the company posted rapid second-quarter growth across its three operating segments. The sell-off has reset the share price, but not the investment debate.

Starlink is profitable and AI revenues are expanding quickly. Heavy capital spending, reported losses, Starship execution requirements and a demanding valuation keep the risk-reward balanced.

SpaceX Growth Signals Remain Strong Beneath the SlideSecond-quarter 2026 revenues surged 91.9% year over year to $7.81 billion, beating the Zacks Consensus Estimate by 16.3%. The loss of 9 cents per share was 73.5% narrower than a year earlier and beat the consensus loss estimate of 26 cents.

Growth was broad. Connectivity remained the largest revenue contributor, AI grew the fastest and Space benefited from a more favorable customer launch mix. Consolidated operating loss narrowed to $143 million from $970 million.

Starlink Gives SPCX a Profitable Growth EngineStarlink subscribers doubled year over year to 12 million, helping Connectivity revenues climb 65.8% to $4.29 billion. Operating income rose 79.4% to $1.66 billion, producing a 38.6% operating margin. Adjusted EBITDA reached $2.60 billion.

Consumer revenues increased 44.4% to $2.49 billion and Enterprise & Government revenues more than doubled to $1.81 billion. Connectivity remains the company’s only segment-level source of operating income, giving Starlink a distinct role within the portfolio.

AI Upside Comes With SPCX Spending PressureAI revenues jumped 247.5% to $2.56 billion, driven largely by new cloud-services agreements. Segment adjusted EBITDA swung to positive $1.15 billion from a $276 million loss a year earlier, but the segment still posted a $1.26 billion operating loss under generally accepted accounting principles (GAAP).

AI accounted for $15.83 billion of SpaceX’s $18.37 billion in second-quarter capital expenditures. Management expects total capital spending in each of the next two quarters to remain near the second-quarter level, keeping capital efficiency central to returns.

Starship Keeps SpaceX's Execution Risk ElevatedTwo successful Starship V3 flights in the 90 days before the second-quarter call moved the program forward. Upcoming milestones include deploying V3 Starlink satellites to operational orbit and attempting catches of the vehicle stages, with some steps still subject to regulatory approval.

Starship is designed to quadruple payload capacity and reduce launch costs tenfold versus Falcon 9. Delays in reusability, regulatory clearance or flight cadence could slow launch, Connectivity and future AI deployment plans at the same time.

Valuation Could Limit SPCX's Rebound CaseSPCX trades at 335.4X enterprise value to EBITDA versus 7.2X for its industry, while its 11.8X price-to-book multiple compares with 1.7X for the industry. The wide gaps raise the importance of converting elevated investment into more consistent returns.

Rocket Lab Corporation (RKLB - Free Report) provides launch services and space systems, making it relevant to SpaceX’s launch exposure. AST SpaceMobile, Inc. (ASTS - Free Report) is building space-based cellular broadband, offering context for satellite connectivity. Neither captures SpaceX’s combined launch, broadband and AI mix, which limits clean peer comparisons.

SPCX Signals Favor Patience After the PullbackAfter the pullback, SPCX still presents a balanced setup rather than a clear-cut bargain. Rapid growth remains evident, but valuation, capital intensity and execution are meaningful offsets.

SPCX currently carries a Zacks Rank #3 (Hold), a VGM Score of D, Value Score of F, Growth Score of C and Momentum Score of A. The favorable Momentum Score contrasts with weak value and combined VGM characteristics, while the Hold rank supports patience rather than treating the decline alone as a buying signal.

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

Alphabet (NASDAQ: GOOG | GOOG Price Prediction) and Meta Platforms (NASDAQ: META) both dropped Q2 2026 results in late July, with sharply diverging results.

Google leaned on Cloud and Gemini adoption to power a clean beat. Meta grew ad revenue at a healthy clip but watched costs blow past guidance, snapping a long earnings streak and rattling investors.

Cloud Carries Google. Costs Bite Meta. Alphabet posted revenue of $119.8 billion, up 24.23% year over year, with Google Cloud accelerating to $24.77 billion and 82% growth.

Sundar Pichai told investors that “nearly 90% of the Fortune 100” now use Gemini Enterprise, while Gemini models process 22 billion API tokens per minute. Search still did the heavy lifting at $63.27 billion, up 17%, and YouTube pulled in 1.7 billion unique viewers for World Cup content. Operating margin expanded to 34%. Clean.

Meta’s top line looked fine on the surface: revenue of $60.8 billion, up 27.96%, ad revenue of $59.36 billion, and impressions up 14% with pricing up 12%. The problem sat below the fold.

EPS came in at $6.18 versus $7.2173 expected, missing expectations by 14.42% and ending a six-quarter beat streak. Total costs jumped 55%, weighed down by $2.40 billion in legal charges and $1.18 billion in severance tied to an 8,000-employee reduction. Operating margin collapsed from 43% to 31%.

Business Driver Alphabet Meta Main growth engine Cloud + Gemini Enterprise AI-priced ad targeting Margin direction Expanding Compressing Q2 capex $44.9 billion $30.1 billion Full Stack vs. Superintelligence Moonshot Alphabet is monetizing AI across a stack it already owns: TPUs, Gemini models, Cloud, Search, YouTube, Workspace. Pichai framed it as a “differentiated, full stack approach“, and the Cloud number backs him up.

Meta is spending to invent something further out. Zuckerberg’s Meta Superintelligence Labs is chasing consumer AI on top of a family of apps that reaches 3.60 billion daily users. He called AI “accelerating our core business today“, but the P&L is doing the paying.

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

Both are borrowing heavily. Alphabet raised roughly $70 billion in combined equity and debt and suspended its buyback. Meta guided full-year capex to $130 billion to $145 billion, with expenses raised to $165 billion to $169 billion. Free cash flow tells the story: Alphabet swung to negative $5.86 billion, and Meta’s fell 91.31% to $784 million.

The Next Test Is Whether Capex Pays I want to see three things. For Google, whether Cloud can hold that 82% pace as capacity floods online, and whether Search query growth truly benefits from AI features rather than getting cannibalized.

For Meta, whether the Q3 revenue guide of $61 billion to $64 billion materializes without another cost surprise. The youth-related U.S. trials scheduled for 2026 are a wildcard I do not think retail has priced in.

Why I Lean Google Right Now On the fundamentals, Alphabet looks like the cleaner setup. Cloud is compounding, margins are widening, and shares are up 14.06% in the past week and 96.65% over one year.

Meta is a harder call. The ad engine still works, but shares are down 21.05% over the last year, and Polymarket traders assign only a 44% probability that META revisits $640 in August.

If you like turnarounds with defined catalysts, Meta has more upside variance. For investors focused on current fundamentals, Alphabet screens more favorably until Meta demonstrates cost discipline.

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

Contact [email protected] for any questions or corrections.

Key Takeaways AMD shares fell despite a Q2 earnings beat, as a sharp capex increase weighed on investor sentiment. AMD reported record data center revenues and expects strong server and AI platform growth into 2027. ETFs like SMH and SOXQ offer notable AMD exposure while spreading risk across chip stocks. Shares of Advanced Micro Devices (AMD - Free Report) dropped 7% on Aug. 5, despite the tech firm reporting better-than-expected second-quarter 2026 results the previous day. AMD’s share price slump reflects that despite comfortably beating Wall Street’s revenue and earnings estimates, the chipmaker failed to improve investor sentiment, likely due to concerns over the sharp rise in second-quarter capital expenditures. 

While the stock regained its footing in the following trading session by inching up 1.5%, it remains 5.7% below the price level it boasted before the second-quarter results. 

Against this recent pullback, one must not forget that AMD has nearly tripled over the past year, backed by the soaring demand for its artificial intelligence (AI) chips, and remains up 128% year to date.

Management expects the company’s data center segment revenues to more than double year over year in 2027, while its server revenues are projected to soar more than 80% on an annual basis in the second half of 2026.

These growth projections are expected to provide a sustained tailwind for AMD’s share price, with the recent pullback suggesting to be only a momentary one, thereby offering a golden opportunity for investors to make an entry in this chipmaker right now. 

However, considering the huge 187% year-over-year increase in its Capex, capacity constraints in advanced packaging and volatile HBM4 memory pricing, some investors might remain skeptical of investing in AMD and would instead look for a safer bet. 

For them, a more prudent strategy would be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this chipmaker. This approach will allow investors to capture the potential upside of AMD’s innovation cycle as well as the gains of other tech leaders while mitigating the risks associated with individual stock ownership in a high-valuation environment.

But before diving straight into these ETFs, let us check AMD’s overall performance in the second quarter in terms of other metrics.

A Brief Analysis of AMD’s Q2 ResultsAMD’s second-quarter earnings beat the Zacks Consensus Estimate by 3.1%, while revenues topped the mark by 1.9%. 

Its data center revenues grew 107% year over year to a record $6.7 billion, driven by strong demand for EPYC processors and Instinct accelerators. In the server segment, AMD delivered its fifth consecutive quarter of record server CPU revenues with cloud and enterprise sales each growing more than 70% year over year. 

Impressively, within its enterprise segment, more than 230 fifth-gen EPYC platforms are now in market from HPE, Dell, Lenovo, Supermicro and others.  

Revenues from its data center AI business more than doubled in the second quarter, driven by strong demand for its Instinct accelerators. 

Meanwhile, its AI software stack, ROCm reached an important inflection point with the performance, capabilities, and developer experience customers need to deploy AI in production at scale. The breadth of the ecosystem is also expanding with more than 3 million models now run out of the box. 

Looking ahead, Helios, AMD’s rackscale AI platform, which is currently in production, remains on track for initial shipments later in the third quarter, with volume ramp-up expected through the fourth quarter and into 2027, driven by strong customer demand. The company aims to launch a new rack-scale AI platform every year, with each generation delivering significant performance, efficiency and TCO gains. 

With AMD now projecting the data center AI accelerator market to reach $1.4 trillion and the server CPU market to hit $220 billion by 2030 — growing at annual rates of 45% and 50%, respectively — expanding AI workloads across both categories should provide a continuous tailwind for the chipmaker.

AMD-Heavy ETFs to BuyiShares Semiconductor ETF (SOXX - Free Report)   

This fund, with net assets worth $44.99 billion, offers exposure to 30 U.S. companies that design, manufacture, and distribute semiconductors. Of these, AMD carries the third spot, holding 8.10% of the fund. NVIDIA (NVDA) holds the first spot in this fund, holding 9.01% weightage. 

SOXX has surged 76.8% year to date. This fund charges 33 basis points (bps) as fees. It traded at a volume of 7.64 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy). 

Invesco AI and Next Gen Software ETF (IGPT - Free Report)   

This fund, with a market value of $899 million, offers exposure to 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the sixth spot, holding 6% of the fund. SK Hynix holds the first spot in this fund, with 9.69% weightage. 

IGPT has rallied 40.5% year to date. This fund charges 56 bps as fees.  It traded at a volume of 0.26 million shares in the last trading session.  This fund holds a Zacks ETF Rank #1.

Invesco Semiconductors ETF (PSI - Free Report)   

This fund, with a market value of $2.47 billion, offers exposure to 31 semiconductor companies. Of these, AMD carries the fifth spot, with 5.43% of the fund. Applied Materials holds the first spot in this fund, with 6.67% weightage. 

PSI has soared 83.4% year to date. This fund charges 56 bps as fees.  It traded at a volume of 0.31 million shares in the last trading session.  This fund sports a Zacks ETF Rank #1.

VanEck Semiconductor ETF (SMH - Free Report)  

This fund, with total assets worth $70.42 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, AMD carries the fourth spot, with 5.38% of the fund. NVDA holds the first spot in this fund, with 22.11% weightage. 

SMH has soared 58.7% year to date. This fund charges 35 bps as fees.  It traded at a volume of 6.23 million shares in the last trading session. 

This fund sports a Zacks ETF Rank #1.

Invesco PHLX Semiconductor ETF (SOXQ - Free Report)   

This fund, with a market value worth $2.82 billion, provides exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, AMD carries the 10th spot, holding 4.03% of the fund. NVDA holds the first spot in this fund, with 13.43% weightage. 

SOXQ has surged 70% year to date. This fund charges 19 bps as fees. It traded at a volume of 0.98 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.     

Key Takeaways NVIDIA shares gained 11.2% in a month, outperforming the broader technology sector and chip peers.NVIDIA's fiscal Q1 revenues surged 85% to $81.62 billion, while non-GAAP EPS jumped 140% to $1.87.NVDA trades at 20.17 times forward earnings, below the technology sector average of 21.50 NVIDIA Corporation (NVDA - Free Report) shares have gained 11.2% over the past month, comfortably beating the broader Zacks Computer and Technology sector, which advanced only 1.6%.

The stock has also outperformed major semiconductor peers such as Intel Corporation (INTC - Free Report) , Marvell Technology, Inc. (MRVL - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , all of which posted declines during the same period. Over the past month, shares of Intel, Marvell Technology and Advanced Micro Devices have plunged 9.4%, 8.9% and 5.4%, respectively.

The recent rally reflects growing investor confidence in NVIDIA’s leadership in artificial intelligence (AI) despite ongoing geopolitical tensions and trade-related uncertainty. This strength is backed by solid business fundamentals rather than market hype. With AI spending continuing to accelerate worldwide, NVIDIA still appears well-positioned for long-term growth.

NVIDIA One-Month Price Return Performance
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NVDA’s Financial Results Reinforce the Investment CaseNVIDIA continues to deliver outstanding financial results. In the first quarter of fiscal 2027, revenues surged 85% year over year to $81.62 billion, while non-GAAP earnings per share jumped 140% to $1.87. These numbers demonstrate that demand for NVIDIA's AI products remains exceptionally strong.

Management expects this momentum to continue. For the second quarter of fiscal 2027, NVIDIA projects revenues of approximately $91 billion, representing nearly 95% year-over-year growth. The company also expects a non-GAAP gross margin of around 75%, up from 72.7% a year ago, highlighting its strong pricing power and operating efficiency.

Wall Street also remains optimistic. The Zacks Consensus Estimates point to healthy revenue and earnings growth in both fiscal 2027 and fiscal 2028, suggesting that AI infrastructure spending is still in its early stages.

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NVIDIA's cash generation further strengthens the investment story. During the first quarter, the company generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow. Cash, cash equivalents and marketable securities rose to $80.6 billion, up from $62.6 billion in the previous quarter.

Such a massive cash reserve gives NVIDIA tremendous flexibility to expand manufacturing, invest in next-generation AI technologies and reward shareholders. During the quarter, the company repurchased $19.3 billion worth of shares while paying $243 million in dividends.

NVIDIA’s AI Leadership Continues to Drive GrowthThe company remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's GPUs remain the preferred choice for training and running advanced AI models.

The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency. NVIDIA is also strengthening its position beyond GPUs through networking products like InfiniBand, Spectrum-X Ethernet and NVLink, allowing it to capture a larger portion of AI infrastructure spending.

The company's latest numbers highlight this leadership. During the first quarter of fiscal 2027, the data center business generated $75.25 billion in revenues, accounting for roughly 92% of total sales. Revenues from the segment climbed 92% year over year and 21% sequentially, driven by rapid deployment of Blackwell 300 systems and growing networking demand.

Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.

As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle.

NVDA’s Valuation Still Looks ReasonableDespite its recent rally, NVIDIA's valuation remains attractive relative to its growth potential.

The stock currently trades at a forward 12-month price-to-earnings (P/E) ratio of 20.13, below the Zacks Computer and Technology sector average of 21.50.

NVIDIA Forward 12-Month P/E Ratio
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It also trades at a much lower valuation than several semiconductor peers. Intel carries a forward P/E of 57.33, Advanced Micro Devices trades at 45.19, while Marvell Technology is valued at 41.08.

Given NVIDIA's superior revenue growth, industry-leading margins, dominant AI position and exceptional cash generation, its current valuation appears far from excessive.

Conclusion: Buy NVIDIA StockNVIDIA continues to strengthen its leadership in the AI industry through rapid revenue growth, expanding profitability, unmatched cash generation and a growing ecosystem of hardware, networking and software products. Demand for AI infrastructure remains robust, and the company is well-positioned to benefit as enterprises and cloud providers continue increasing AI investments.

Even after its recent 11% rally, NVIDIA's valuation remains reasonable compared with both its growth prospects and many semiconductor peers. With strong execution, an expanding competitive moat and multiple long-term growth drivers, NVIDIA remains one of the best-positioned AI companies in the market. Investors should consider buying NVDA stock for now as the company appears well-equipped to deliver sustained long-term returns.

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