Track market-moving stories before they get noisy

Key Takeaways Dell benefits from enterprise PC refreshes, with one-third of installed devices at least four years old. AI-enabled commercial PCs and higher peripheral attach rates are supporting CSG growth and profitability. Memory shortages through 2027 may raise costs and push CSG operating margins toward roughly 6%. Dell Technologies’ (DELL - Free Report) Client Solutions Group (“CSG”) is benefiting from sustained commercial demand. Large enterprise customers continue to refresh aging PC fleets across all regions, while roughly one-third of the installed base still consists of devices that are four years or older, leaving meaningful room for additional upgrades. Commercial customers continue to represent the primary growth engine for CSG. Strong enterprise demand, higher attach rates for peripherals and improved scale helped lift CSG operating income 79% year over year, while profitability benefited from a richer commercial mix and improving consumer margins.

DELL highlighted continued innovation across its PC portfolio, including Dell Pro Max AI desktops supporting NVIDIA GB10 and GB300 platforms. Dell is positioning AI-enabled commercial PCs as part of its end-to-end AI strategy, enabling enterprises to run AI workloads locally while keeping sensitive data on-premises. These capabilities are expected to support premium PC demand over the coming quarters.

Although enterprise remains the key driver, Dell reported a third consecutive quarter of demand growth in consumer revenues, aided by ongoing strength in gaming systems. This provides incremental support to overall CSG revenues while diversifying growth beyond commercial PCs.

However, CSG is expected to suffer from a global memory shortage that is expected to continue through the end of 2027. This is likely to force PC vendors like Dell, Lenovo (LNVGY - Free Report) and HP (HPQ - Free Report) to contend with rising DRAM and NAND prices, limited system configurations and tighter product availability. IDC now forecasts global PC shipments to decline 11.3% in 2026, with conditions expected to worsen during the second half as memory shortages intensify. DELL expects CSG operating margins to moderate to roughly 6% in the upcoming quarter as the company balances customer demand, competitive pricing, market-share gains and profitability.

DELL Faces Tough Competition in PCDell is facing significant competition from the likes of HP and Lenovo in the PC space.

Lenovo is intensifying competition with Dell by strengthening its leadership in premium PCs, commercial devices and AI-enabled systems while consistently outgrowing the broader PC market. In the fourth quarter of fiscal 2026, Lenovo reported 26% year-over-year growth in PC revenues and achieved a record 24.4% global PC market share. Lenovo is also differentiating itself through AI PCs, premiumization and supply-chain execution. The company’s AI strategy includes the rollout of the QIRA personal AI assistant across PCs, tablets and smartphones and new AI-focused commercial desktops, such as the ThinkCentre Neo 50q.

HP remains a key challenger to Dell by leveraging strong momentum in its Personal Systems business, particularly in commercial PCs and premium AI-enabled devices. During the second quarter of fiscal 2026, Personal Systems revenues increased 13% year over year, with commercial revenues rising 14% and consumer revenues up 10%. HP highlighted continued share gains in premium PC categories, strong growth in AI PCs, Advanced Compute Solutions and Workforce Solutions, as well as higher-value unit placements that supported profitability. These initiatives directly compete with Dell's strategy of expanding its premium commercial PC portfolio. HP is further challenging Dell through its AI-at-the-edge strategy and expanding software ecosystem.

DELL’s Share Price Performance, Valuation & EstimatesDell’s shares have appreciated 221.5% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 6.9%.

DELL Stock Outperforms Sector
Image Source: Zacks Investment Research

The stock is trading at a premium, with a forward 12-month price/earnings of 19.49X compared with HP’s 9.13X and Lenovo’s 14.98X. Dell has a Value Score of C.

Valuation - DELL vs. HPQ
Image Source: Zacks Investment Research

Valuation - DELL vs. LNVGY
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 earnings is currently pegged at $18.80 per share, up 3 cents over the past 30 days, suggesting 82.52% growth from fiscal 2026’s reported figure.
 

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

Key Takeaways UNH stands out with diversified growth drivers, improving Optum margins and AI-led efficiency gains.UNH benefits from value-based care expansion, operational reforms and favorable earnings estimate revisions.Centene remains supported by Medicaid strength, but lower capital efficiency tempers its investment appeal. Rising healthcare utilization, evolving reimbursement policies and ongoing changes in government-sponsored healthcare programs continue to shape the outlook for U.S. managed care organizations. As insurers balance membership growth with medical cost pressures, investors are closely assessing business resilience, margin stability and long-term earnings potential.

UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) are two leading managed care companies with meaningful exposure to Medicare and Medicaid, making them closely watched peers in the sector. While both operate within the same industry, their business mix, scale and strategic priorities differ, offering distinct approaches to navigating regulatory changes and growth opportunities. UnitedHealth benefits from a diversified healthcare platform, providing multiple revenue streams and broader earnings support. Centene, by contrast, remains more focused on government-sponsored healthcare programs, with Medicaid serving as its primary growth driver and a greater reliance on efficient cost management and contract execution.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for UnitedHealthUnitedHealth's biggest competitive strength lies in its diversified healthcare platform, where its insurance business, UnitedHealthcare, is complemented by Optum's health services operations. In the second quarter of 2026, the company’s total revenues rose 0.4% year over year. Meanwhile, Medicare performance improved during the second quarter through pricing discipline, benefit design and care management initiatives. OptumHealth continued to regain momentum with its integrated value-based care model.

Optum remains a key long-term growth engine. It delivered stronger profitability, with its operating margin improving 160 basis points year over year, demonstrating improving operational efficiency across the platform. The business now supports more than 120 million consumers and continues to expand value-based care through primary care, ambulatory surgery and home health services. Clinical initiatives have already reduced hospitalizations by about 10% in the Western and Southern regions, while home health pilots improved timely care delivery by more than 20%. Rural care programs now reach nearly 90% of U.S. counties and are scheduled for broader rollout by the end of 2026.

Technology and AI are becoming increasingly embedded across UNH's operations. AI-based ambient listening tools are already available to roughly 70% of employed providers and are expected to exceed 90% by year-end. The company is also deploying AI across coding, care coordination, customer service and clinical decision support, helping reduce administrative work while improving patient access and provider efficiency.

UnitedHealth is also reshaping its healthcare delivery model through operational reforms designed to simplify the patient experience. The company plans to eliminate 30% of current prior authorization volume by the end of 2026, remove nearly two-thirds of pediatric prior authorization requirements and expand transparent pharmacy pricing through its fee-based PBM model. These initiatives, along with continued investments in digital services and affordability, position the company to improve efficiency while supporting sustainable long-term growth. UNH beat earnings in each of the past four quarters with an average surprise of 12.1%.

UnitedHealth Group Incorporated Price, Consensus and EPS SurpriseRegulatory scrutiny continues to cast a shadow over the company. Ongoing investigations involving Medicare billing practices and aspects of the Optum business could create headline risk and potentially increase compliance costs.

The Case for CenteneCentene continues to benefit from its strong presence in government-sponsored healthcare, particularly Medicaid, Medicare and the Marketplace business. Medicaid membership remained above 12.1 million during the second quarter, while stronger-than-expected state rate updates improved the company's expected composite Medicaid rate outlook from roughly 4.5% to approximately 5% for 2026. The favorable reimbursement environment, combined with disciplined medical cost management, continues to support earnings recovery.

In the second quarter of 2026, its revenues rose 9.9% year over year, along with 4.4% growth in premiums, benefiting from higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. CNC’s HBR improved 340 basis points year over year to 89.6% in the quarter under review. The bottom line went from a loss of 16 cents per share a year ago to earnings of $2.51.

Centene is sharpening its focus on businesses where it sees stronger long-term returns. The Medicare Advantage portfolio is being streamlined around dual-eligible beneficiaries, leveraging the company's Medicaid expertise to provide more integrated care. Over the past three reporting cycles, more than 90% of its core Medicaid clinical quality measures have improved through enhanced data capture, targeted provider incentives and scalable member engagement programs.

Technology transformation is becoming a larger part of Centene's long-term strategy. AI is already being used in forecasting, fraud detection and enterprise operations, while the company is investing in scalable data infrastructure, reusable AI capabilities and automated workflows across the organization. This measured approach is intended to improve operating efficiency, strengthen compliance in a highly regulated environment and create a more durable foundation for long-term earnings growth. The company beat earnings in each of the past four quarters with an average surprise of 151.3%.

Although reimbursement trends have improved, CNC still faces elevated costs from behavioral health, home health and high-cost specialty drugs. Its capital efficiency trails UNH. Centene's trailing 12-month return on invested capital stands at 4.5%, below UnitedHealth’s 6.2%. Also, CNC’s long-term debt-to-capital of 41.5% is higher than UNH’s 40.4%.

How Do Estimates Compare for UNH & CNC?For UnitedHealth, the Zacks Consensus Estimate forecasts 2026 EPS of $19.60, reflecting 19.9% year-over-year growth, followed by another 13.8% jump in 2027. For 2026, revenues are pegged at $446.6 billion, suggesting a 0.2% decline year over year. The top line is expected to improve 2.4% in 2027. It has witnessed 11 positive earnings estimate revisions over the past 30 days against no downward revisions.

Analysts anticipate a rebound in Centene’s 2026 earnings, with the Zacks Consensus Estimate standing at $3.82 per share, implying 83.7% year-over-year growth as its cost pressures ease. The same for 2027 indicates a 26.3% jump. The consensus mark for 2026 and 2027 revenues signals a decline of 0.4% and 1.5% year over year, respectively. It has witnessed two positive earnings estimate revisions over the past 30 days against no downward revisions.

Valuation: UNH vs. CNCUnitedHealth trades at a premium valuation relative to Centene, reflecting its superior earnings visibility, diversification and margin profile. Investors are willing to pay more for consistency and lower risk. UnitedHealth currently trades at a forward P/E of 19.95X, above Centene’s 15.16X and the industry’s 16.98.

Image Source: Zacks Investment Research

Price Performance ComparisonOver the past six months, UnitedHealth’s shares have gained 47.6%, outperforming Centene, the broader industry and the S&P 500’s growth of 42.2%, 41.9% and 4.2%, respectively. This contrast highlights improving investor confidence in UNH’s growth plan, cost containment and earnings visibility.

Price Performance – UNH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research

Price Target Outlook: UNH vs. CNCUNH currently trades below its average analyst price target of $481.52, implying a 14.5% potential upside from current levels. CNC also trades below its average analyst price target of $66.41, implying a 7.4% potential upside from current levels.

ConclusionUnitedHealth and Centene both offer exposure to the managed care industry, but they approach growth differently. CNC remains well positioned to benefit from its leadership in Medicaid and improving performance across its Marketplace and Medicare businesses. However, its heavier reliance on government-sponsored programs, lower profitability and relatively weaker capital efficiency make its earnings outlook more dependent on policy and reimbursement trends.

Meanwhile, UNH stands out with its diversified business model, where the combination of UnitedHealthcare and Optum provides multiple growth engines and stronger earnings resilience. Continued momentum in value-based care, expanding AI capabilities, operational reforms and a stronger balance of profitability support its long-term outlook.

Combined with favorable earnings estimate revisions, a larger implied upside to the average price target and a proven execution track record, UnitedHealth appears to be the better investment choice at current levels, even though both companies currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CNO Financial Group, Inc. (CNO) Q2 2026 Earnings Call July 31, 2026 11:00 AM EDT

Company Participants

Adam Auvil - Vice President of Investor Relations & Sustainability
Gary Bhojwani - CEO & Director
Paul McDonough - CFO & Executive VP
Eric Johnson - Chief Investment Officer

Conference Call Participants

Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division
Suneet Kamath - Jefferies LLC, Research Division
Joel Hurwitz - Dowling & Partners Securities, LLC
Videep Vemulapalli - Raymond James & Associates, Inc., Research Division
Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to CNO Financial Group's Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Adam Auvil. Please go ahead.

Adam Auvil
Vice President of Investor Relations & Sustainability

Good morning, and thank you for joining us on CNO Financial Group's Second Quarter 2026 Earnings Conference Call. Today's presentation will include remarks from Gary Bhojwani, Chief Executive Officer; and Paul McDonough, Chief Financial Officer. Following the presentation, we will also have other business leaders available for the question-and-answer period. During this conference call, we will be referring to information contained in yesterday's press release. You can obtain the release by visiting our website at cnoinc.com. This morning's presentation is also available on the Investors section of our website and was filed in a Form 8-K yesterday.

Let me remind you that any forward-looking statements we make today are subject to a number of factors, which may cause actual results to be materially different than those contemplated by the forward-looking statements. Today's presentation contains a number of non-GAAP measures, which should not be considered as substitutes for

AptarGroup NYSE: ATR reported second-quarter sales growth across each of its three segments and adjusted earnings per share above its guidance range, supported by stronger-than-expected performance in its Pharma business. The company also said President and CEO Stephan Tanda will retire later this year, with President and CEO Designate Gael Touya set to assume the CEO role on Sept. 1.

Reported second-quarter sales increased 6% to approximately $1 billion, a quarterly record, while core sales, which exclude currency effects and acquisitions, rose 1% from a year earlier. Adjusted EBITDA declined 3% to $213 million, and adjusted EBITDA margin fell to 20.7% from 22.6% in the prior-year period. Adjusted EPS was $1.42, compared with $1.68 a year earlier at comparable exchange rates.

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Chief Financial Officer Vanessa Kanu said the earnings decline reflected lower emergency medicine sales in Pharma, operating challenges in Beauty and Closures, higher depreciation and amortization related to investments and acquisitions, and higher interest expense.

Pharma Growth Excluding Emergency Medicine Pharma core sales rose 1% in the quarter, affected by an anticipated decline in emergency medicine sales. Aptar expects emergency medicine sales to decline by about $65 million during fiscal 2026. Kanu said roughly two-thirds of that headwind occurred during the first half, with most of it occurring in the second quarter. The remaining portion is expected primarily in the third quarter, with the year-over-year impact expected to abate by the fourth quarter.

Excluding emergency medicine, Pharma core sales rose 8%. Prescription core sales declined 7% overall but increased 8% excluding emergency medicine, driven by central nervous system treatments and asthma and COPD applications. Consumer healthcare core sales increased 15%, supported by demand for nasal decongestants, eye-care products, dermal solutions and tooling. Injectables core sales rose 9%, reflecting demand for elastomeric components used in GLP-1 therapies, biologics and vaccines.

Pharma’s adjusted EBITDA margin was 33.6%, down 180 basis points from the prior year, largely because of the mix effect from lower high-margin emergency medicine sales. Kanu said the segment’s margin would have improved year over year excluding emergency medicine.

Management also pointed to continued pipeline activity in Annex I compliance, GLP-1 and biologics projects. Touya said the company has completed its larger investment phase at its Congers, New York, injectable manufacturing site and that customer audits, inspections and validations are supporting growth.

The company highlighted several technology developments, including an approved U.S. patent application for N-Sorb, an active-material solution intended to address nitrosamine impurities in pharmaceutical products. Aptar also introduced a collaborative system framework for injectable therapies designed to provide customers with earlier information on the performance of assembled injection systems.

In respiratory delivery, Aptar noted regulatory approvals involving products that use its inhaler technologies. It also cited Chiesi’s U.K. approval for what Aptar described as the first pressurized metered-dose inhaler using HFA-152a, a next-generation lower-global-warming-potential propellant.

Beauty and Closures See Sales Growth, Margin Pressure Beauty core sales increased 1%, as demand for dispensing systems and higher input-cost pass-throughs offset lower tooling sales. Fragrance, facial skincare and color cosmetics sales grew 2%, led by prestige fragrance pumps and color cosmetics. Personal care sales were flat, as hair-care demand did not fully offset lower tooling sales.

Beauty’s adjusted EBITDA margin was 12.2%, down 190 basis points year over year, though it improved sequentially from the first quarter. Kanu attributed the year-over-year decline to lower volumes, unfavorable mix and the timing of resin and other inflationary pass-throughs. She said a delay in Beauty pricing pass-throughs reduced the segment’s quarterly margin by roughly 80 to 90 basis points and is expected to be resolved in the third quarter.

During the question-and-answer session, Tanda said Aptar had experienced weak sales in Brazil, where he said two major customers can shift market share. He said the company’s Beauty turnaround in Europe has reached its target range, while Asia is performing above that range, but the Americas have underperformed because of operational challenges in North America and market weakness in Brazil. Touya said he is reviewing the business with a “fresh perspective” and plans to engage with customers and operations teams before detailing further actions.

Closures core sales increased 4%. Food sales declined 1% due to lower tooling sales, partially offset by demand for sauce and condiment dispensing closures. Beverage sales rose 14%, driven by bottled water and functional sports drinks. The segment’s adjusted EBITDA margin was 14.9%, down 200 basis points, due to the ramp-up of new production lines and a maintenance initiative that management said is making sequential progress.

Cash Flow, Capital Returns and Outlook For the first six months of 2026, reported sales rose 8% and core sales increased 1%. Adjusted EBITDA was unchanged at $401 million, while adjusted EBITDA margin declined 170 basis points to 20%. Adjusted EPS fell 12% to $2.61.

Year-to-date free cash flow increased by $8 million to $99 million, consisting of $222 million in cash from operations less $123 million in capital expenditures, net of government grants. Aptar returned $212 million to shareholders through dividends and share repurchases during the first half, including the repurchase of 1.1 million shares for $150 million.

The company ended the quarter with $190 million in cash, $1.2 billion in net debt and a leverage ratio of 1.49 times. Kanu said Aptar expects third-quarter adjusted EPS of $1.45 to $1.53, based on an effective tax rate of 22.5% to 24.5% and a euro-to-U.S.-dollar exchange rate of $1.14. Full-year capital investments are expected to range from $260 million to $280 million, while depreciation and amortization expense is projected at $310 million to $320 million.

Touya said Aptar expects growth across all three segments, citing demand in Pharma, continued momentum in Closures and improving trends in Beauty. As he prepares to take over as CEO, Touya said his priorities will be to drive profitable growth, execute consistently and allocate capital thoughtfully.

About AptarGroup (NYSE:ATR)AptarGroup, Inc is a global provider of advanced dispensing, sealing and protection solutions for consumer and pharmaceutical markets. The company designs and manufactures a broad portfolio of products that enable the controlled delivery of liquids, gels, powders and aerosols. Its customer base spans beauty and personal care, home care, food and beverage, and pharmaceutical sectors, where innovation in packaging and drug‐delivery devices drives brand differentiation and regulatory compliance.

In the consumer markets, AptarGroup offers pumps, actuators, valves, closures and specialized bottles engineered for precision, convenience and sustainability.

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

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IonQ (IONQ +2.26%) just received final regulatory approval for one of its most important deals to date: the acquisition of SkyWater Technology. SkyWater is the largest exclusively U.S.-based semiconductor foundry and is recognized by the Department of Defense as a trusted foundry.

The deal gives IonQ full control of its supply chain. It now has a factory to manufacture its chips, eliminating the need to rely on outside suppliers. In light of this acquisition, it's a good time to consider where IonQ will be in a year.

Image source: The Motley Fool.

The numbers are trending up Financially, IonQ stands out among pure-play quantum computing companies. Revenue growth is accelerating, as IonQ reported sales of $64.7 million in the first quarter of 2026, a year-over-year increase of 755%. Its remaining performance obligations, meaning future contracted revenue not yet recorded on an income statement, hit a record $470 million. The results were good enough for IonQ to raise full-year revenue guidance to between $260 million and $270 million.

That's a stark difference from IonQ's main competitors: D-Wave Quantum, Rigetti Computing, and Quantum Computing. They all had revenue of less than $5 million in their most recent reported quarters. Multiple companies are dedicated to quantum computing systems, but only IonQ has achieved commercial success to date.

IonQ also has a solid balance sheet, with $3.1 billion in cash, cash equivalents, and investments. With plenty of cash reserves, substantial revenue growth, and now a major acquisition, IonQ has a strong bull case over the next year.

The risk could impact IonQ's upside While there's a lot to like about IonQ, it's still a high-risk investment. It's burning cash: Operating cash flow was negative $151 million in the first quarter, and management is guiding for a full-year adjusted EBITDA loss of $310 million to $330 million. The cash reserves give it a long runway, but this is a company that has had to spend heavily to keep scaling.

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IonQ stock is also expensive, trading at 55 times trailing sales as of July 29. That's in the same range as Palantir Technologies, the poster child for expensive stocks, but well below its competitors. D-Wave and Rigetti both trade at over 400 times trailing sales, for comparison. Still, high valuations often lead to a correction, which has already been happening this year, with quantum computing companies and tech stocks trading at a premium.

Wall Street analysts expect IonQ to perform well over the next 12 months, but there's a wide range of forecasts, with a per-share low of $48.50 and a high of $100. The average is $69.31, which would represent over 100% upside at IonQ's current share price.

I think there's a good chance IonQ will continue to exceed revenue expectations and deliver positive results for shareholders. With that in mind, this could be an opportunity to buy the dip on one of the top quantum computing stocks. However, IonQ will likely remain volatile, so size any investments in it accordingly.

Key Takeaways IDCC is expanding licensing beyond smartphones into streaming, cloud, automotive and IoT markets.InterDigital signed licensing deals with Amazon, a fintech company and KEBA to broaden recurring revenues.IDCC is investing in 6G, AI networking and video technologies to support future licensing opportunities. InterDigital, Inc. (IDCC - Free Report) has long been recognized for monetizing its wireless patent portfolio through smartphone licensing. However, the company is increasingly broadening its reach into adjacent markets, creating additional recurring revenue opportunities beyond its traditional handset business.

Its strategy now spans streaming services, cloud platforms, consumer electronics, automotive applications, Internet of Things (IoT) devices and next-generation communications technologies. This diversification aims to strengthen long-term licensing growth while reducing dependence on any single end market.

How IDCC Builds Revenue Through LicensingInterDigital generates most of its revenue from patent licensing, reflecting the strength of its intellectual property portfolio across wireless and video technologies. In addition to licensing royalties, the company also earns revenue from patent sales, technology solutions licensing, engineering services and product sales. It operates through a single business segment, allowing management to leverage its research investments across multiple end markets.

Its portfolio covers technologies used in cellular communications, video encoding and transmission, artificial intelligence, and connected devices. Continued participation in global technology standards helps InterDigital develop patents that can be licensed across a broad range of products rather than relying on any single device category.

Image Source: Zacks Investment Research

Companies such as QUALCOMM Incorporated (QCOM - Free Report) and Nokia Corporation (NOK - Free Report) also generate licensing revenue from extensive wireless patent portfolios, underscoring the importance of intellectual property ownership within the communications ecosystem.

Why InterDigital Is Diversifying Its BusinessWhile smartphones remain an important licensing market, InterDigital has expanded into streaming services, cloud platforms, consumer electronics, automotive applications and IoT devices. This broader strategy increases the number of industries that can benefit from the company's patented technologies.

Recent agreements illustrate that expansion. InterDigital reached a milestone licensing agreement with Amazon covering devices and services, including Prime Video, with final financial terms to be determined through binding arbitration. The company also signed new IoT licensing agreements with a leading fintech company for payment terminals and with KEBA covering electric vehicle chargers. These agreements expand recurring licensing opportunities beyond traditional handset manufacturers while supporting the company's long-term recurring revenue objectives.

How IDCC Is Positioning for Future TechnologiesInterDigital continues investing heavily in technologies expected to underpin future communications standards. Its research spans 6G, AI-native networking and advanced video technologies, helping position the company to create intellectual property for future licensing opportunities.

The company also maintains significant leadership within global standards organizations, strengthening its influence as next-generation wireless specifications are developed. Management believes these investments should support licensing opportunities across industries ranging from connected vehicles and industrial IoT to streaming platforms and consumer electronics. 

What Could Slow InterDigital's GrowthDespite its diversification strategy, several risks remain. Customer concentration continues to expose results to a relatively small group of major licensees, while revenue can fluctuate depending on the timing of licensing agreements and renewals.

The company also faces ongoing patent enforcement and litigation expenses as it protects its intellectual property portfolio. Sustaining technology leadership requires continued investment in research and development, and slower demand in certain consumer electronics or IoT markets could weigh on licensing activity over time.

How IDCC's Ratings Fit the Bigger PictureInterDigital's expansion beyond smartphones provides multiple avenues for future growth, but investors should also consider how the stock's quantitative ratings complement that business story.

The stock currently sports a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.  However, its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of F suggest the shares may be less attractive for investors focused on valuation or recent price momentum. Rather than contradicting the company's business strengths, these Style Scores provide a different lens for evaluating the stock based on specific investing styles.

Key Takeaways Mattel is expected to benefit from Hot Wheels, partner brands and growing digital gaming revenue.MAT may see stronger sales from improving retailer orders and international market momentum.Mattel faces tariff, inflation and marketing cost pressures despite expected revenue growth. Mattel, Inc. (MAT - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4, after the closing bell.

MAT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average negative surprise being 1.6%.

Trend in the Estimate Revision of MATThe Zacks Consensus Estimate for second-quarter earnings per share is pegged at 3 cents, down 84.2% year over year.

For revenues, the consensus mark is pegged at $1.08 billion. The metric indicates a gain of 6% from the year-ago quarter’s figure.

Factors Likely to Shape Mattel’s Q2 ResultsMattel’s second-quarter 2026 top line is likely to have benefited from sustained strength in several high-performing brands and healthy consumer demand. Hot Wheels is expected to have remained a key growth engine, supported by continued momentum in vehicles, while UNO, Monster High, Masters of the Universe and the recently launched Mattel Brick Shop are likely to have contributed meaningfully.

Partner brands such as Toy Story and WWE, along with expanding digital game licensing revenue and the consolidation of Mattel163, are also expected to have provided incremental sales support. Management noted that consumer demand remained healthy, the toy industry continued to expand, and second-quarter sales trends had accelerated from the first quarter.

Another driver of second-quarter revenue is likely to have been the improving retailer ordering patterns in North America after prior disruptions, coupled with continued strength across international markets. The company expects North America to return to growth as retailer inventory movements normalize, while shipments are anticipated to have accelerated during the quarter. Upcoming entertainment releases, particularly the Masters of the Universe movie and related product launches, robust demand for Mattel Brick Shop, expanding action figures and games and ongoing investments in digital gaming and brand-led initiatives are also expected to have supported revenue growth.

Mattel’s bottom line in the second quarter is likely to have remained under pressure from elevated tariff-related costs, inflation and unfavorable foreign exchange movements, even though management expects sequential gross margin improvement. Higher spending on strategic growth initiatives, including digital games, technology and infrastructure, along with increased advertising and marketing investments tied to product launches and entertainment initiatives, may also have weighed on profitability. While cost-saving programs and tariff mitigation efforts should have provided some relief, margins are expected to have remained below the company's full-year target during the quarter.

What Our Model Unveils About MATOur proven model doesn’t conclusively predict an earnings beat for Mattel this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. That is not the case here.

Earnings ESP for MAT: Mattel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mattel’s Zacks Rank: The company has a Zacks Rank #3 at present.

Stocks Poised to Beat on EarningsHere are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.

 Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +1.12% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Life Time Group is expected to register a 21.6% increase in earnings for the to-be-reported quarter. LTH reported better-than-expected earnings in each of the trailing four quarters, with the average surprise being 10.9%.

Marriott Vacations Worldwide Corporation (VAC - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank of 3.

Marriott Vacations earnings for the to-be-reported quarter are expected to increase 1%. VAC reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with the average surprise being 0.7%.

Cinemark Holdings, Inc. (CNK - Free Report) currently has an Earnings ESP of +6.40% and a Zacks Rank of 3.

Cinemark’s earnings for the to-be-reported quarter are expected to increase 57.1%. CNK reported lower-than-expected earnings in each of the trailing four quarters, with the average negative surprise being 20.4%.

Key Takeaways Jacobs' Q3 revenues may rise on demand across AI infrastructure, water and energy markets.PA Consulting, and Infrastructure & Advanced Facilities are expected to post y/y growth.Jacobs' backlog is projected at $26.49 billion, suggesting a 16.7% y/y rise, supported by strong bookings. Jacobs Solutions, Inc. (J - Free Report) is slated to report third-quarter fiscal 2026 results on Aug. 04, after market close.

In the last reported quarter, the company’s adjusted earnings and gross revenues topped the Zacks Consensus Estimate by 6.7% and 13.8%, respectively. On a year-over-year basis, adjusted earnings and gross revenues grew 22.4% and 27%, respectively.

Jacobs’ earnings beat the consensus mark in the last four quarters, the average surprise being 4%.

How Are Estimates Placed for Jacobs Stock?For the fiscal third quarter, the Zacks Consensus Estimate for earnings per share has been unchanged at $1.84 over the past 30 days. The estimate indicates 13.6% year-over-year growth from $1.62.

The consensus mark for gross revenues is pegged at $3.54 billion, indicating an increase of 16.9% from the year-ago reported figure of $3.03 billion.

Factors to Note Ahead of Jacobs' Q3 ResultsRevenuesJacobs’ revenues in the fiscal third quarter are expected to have increased year over year because of sustained demand across AI infrastructure, data centers, transportation modernization, water, energy and advanced manufacturing markets. This growth is likely to have been reflected in increased contributions from the company’s Infrastructure & Advanced Facilities segment (which accounted for 90.3% of gross revenues in the second quarter of fiscal 2026).

Healthy demand for digital consulting, national security, public sector advisory and European defense-related work is expected to have supported the PA Consulting segment’s growth (which contributed 9.7% to fiscal second-quarter gross revenues) during the fiscal third quarter.

The Zacks Consensus Estimate for revenues from the Infrastructure & Advanced Facilities and PA Consulting segments is pegged at $3.2 billion and $366 million, indicating year-over-year growth from $2.7 billion and $333 million, respectively.

Strong bookings activity, record backlog levels and a favorable book-to-bill ratio, supported by demand across key infrastructure and advanced facilities markets, are expected to have driven backlog growth in the fiscal third quarter. The consensus mark for backlog during the quarter is pinned at $26.49 billion, suggesting 16.7% year-over-year growth.

Although ongoing geopolitical tensions and elevated inflation are likely to have been headwinds, resilient demand across the company’s end markets and solid project execution are expected to have supported revenue growth.

EarningsThe bottom line of Jacobs is likely to have grown in the fiscal third quarter because of healthy project execution, favorable business mix and strong operating discipline across its businesses. Margin expansion is also likely to have benefited from the company’s operational improvement initiatives, disciplined cost management and increasing contributions from higher-margin businesses, including PA Consulting.

The Zacks Consensus Estimate for operating profit of the Infrastructure & Advanced Facilities and PA Consulting segments is pegged at $262 million and $83 million, implying year-over-year growth of 11% and 15.3%, respectively.

What the Zacks Model Says for JacobsOur proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.

J’s Earnings ESP: Jacobs has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Jacobs’ Zacks Rank: The stock currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable CombinationHere are some stocks from the Zacks Construction sector, which, per our model, have the right combination of elements to deliver an earnings beat this time around.

Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +6.50% and a Zacks Rank of 2 at present.

Boise Cascade’s earnings beat estimates in two of the last four quarters, missed on one occasion, and met on the remaining occasion, the average surprise being 40.8%. The company’s earnings for the second quarter of 2026 are expected to decline 25% year over year.

Amentum Holdings, Inc. (AMTM - Free Report) currently has an Earnings ESP of +3.18% and a Zacks Rank of 3.

Amentum’s earnings beat estimates in the last four quarters, the average surprise being 4%. The company’s earnings for the second quarter of 2026 are expected to increase 12.5% year over year.

Limbach Holdings, Inc. (LMB - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank of 3 at present.

Limbach’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 37.3%. LMB’s earnings for the second quarter of 2026 are expected to rise 5.4% year over year.

Erie Indemnity Company (ERIE) Q2 2026 Earnings Call July 31, 2026 10:00 AM EDT

Company Participants

Scott Beilharz - Vice President of Capital Management & Investor Relations
Timothy NeCastro - President & CEO
Julie Pelkowski - Executive VP & CFO

Presentation

Operator

Good morning, and welcome to the Erie Indemnity Company Second Quarter 2026 Earnings Conference Call. This call was prerecorded, and there will be no question-and-answer session following the recording.

And now I'd like to introduce your host for this call, Vice President of Investor Relations, Scott Beilharz. Please go ahead.

Scott Beilharz
Vice President of Capital Management & Investor Relations

Thank you, and welcome, everyone. We appreciate you joining us for this recorded discussion about our second quarter results. This recording will include remarks from Tim NeCastro, President and Chief Executive Officer; and Julie Pelkowski, Executive Vice President and Chief Financial Officer. Our earnings release and financial supplement were issued yesterday afternoon after the market closed and are available within the Investor Relations section of our website, erieinsurance.com.

Before we begin, I would like to remind everyone that today's discussion may contain forward-looking remarks that reflect the company's current views about future events. These remarks are based on assumptions subject to known and unexpected risks and uncertainties. These risks and uncertainties may cause results to differ materially from those described in these remarks. For information on important factors that may cause such differences, please see the safe harbor statements in our Form 10-Q filing with the SEC filed yesterday and in the related press release.

This prerecorded call is the property of Erie Indemnity Company. It may not be reproduced or rebroadcast by any other party without the prior written consent of Erie Indemnity Company.

With that, we will move on to Tim's remarks. Tim?

Timothy NeCastro
President & CEO

Key Takeaways DGX posted adjusted EPS of $3.12 as revenues rose 10.2% and requisition volume climbed 13.1%. Quest Diagnostics raised 2026 revenue guidance to $11.95B-$12.05B and adjusted EPS to $11.05-$11.25. DGX's elevated valuation, $5.63B debt and lower operating margin leave less room for execution missteps. Quest Diagnostics Incorporated (DGX - Free Report) has rallied as earnings momentum improved, estimates moved higher and demand broadened across its testing platform.

The buy case is not one-sided. The stock’s advance has lifted valuation closer to its five-year high, while leverage, cost pressure and reimbursement uncertainty leave less room for execution missteps.

DGX Delivers a Strong Second-Quarter BeatQuest Diagnostics reported second-quarter 2026 adjusted earnings of $3.12 per share, up 19.1% year over year. The result surpassed the Zacks Consensus Estimate by 11%, extending a period of positive earnings momentum.

Revenues rose 10.2% year over year to $3.04 billion and beat the consensus mark by 2.1%. Growth was supported by a 13.1% increase in requisition volume, with Diagnostic Information Services benefiting from physician, hospital and consumer channels.

Physician channel revenues increased in the high single-digit range, helped by new customer wins, higher business with existing customers and expanded health plan access. Hospital revenues grew at a double-digit rate, while QuestHealth.com continued to see demand for wellness panels and newer services such as thyroid testing.

Quest Diagnostics Raises Its 2026 OutlookQuest Diagnostics now expects 2026 revenues of $11.95 billion to $12.05 billion, up from its prior range of $11.78 billion to $11.90 billion. The revised outlook implies revenue growth of 8.3-9.2%.

Adjusted earnings are projected at $11.05 to $11.25 per share, compared with the previous range of $10.63 to $10.83. The Zacks Consensus Estimate for 2026 earnings has also moved higher, with the current-year earnings estimate up 4.1% over the past four weeks.

The higher outlook reflects stronger testing demand and better expected earnings conversion. It also supports the case that Quest’s base business, acquisitions and advanced diagnostics portfolio are contributing to near-term growth.

DGX Valuation Leaves Less Room for ErrorValuation is the main counterweight after the share-price run. DGX trades at 20.34X forward 12-month earnings, above its five-year median of 16.16X and at the high end of its five-year range of 11.34X to 20.65X.

Image Source: Zacks Investment Research

Shares recently traded at $235.22, compared with a $252 price target. That target still points to positive potential, but the upside is moderate after gains of 24.4% in the past three months and 39.4% over the past year.

The stock also trades slightly above the S&P 500 on a forward earnings basis. Investors are paying for improved visibility, but the valuation leaves less cushion if volumes slow, costs rise or margin recovery takes longer.

Quest Diagnostics Faces Debt and Margin RisksQuest Diagnostics ended the second quarter with $626 million in cash and cash equivalents, while long-term debt stood at $5.63 billion. Elevated debt could limit flexibility as the company invests in acquisitions, automation and Project Nova.

Margin trends also require monitoring. Adjusted operating margin declined 40 basis points to 16.5% in the second quarter, as higher service costs, Project Nova spending, supplemental deferred compensation and the lower-margin Corewell and Fresenius mix weighed on profitability.

Reimbursement remains another pressure point. Management continues to assume a 30-basis-point 2026 revenue impact tied to the expiration of enhanced Affordable Care Act exchange subsidies, with a larger second-half effect still possible.

Labcorp Holdings Inc. (LH - Free Report) remains a relevant peer because it operates in the same diagnostics and laboratory services market where price, access, turnaround time and service quality matter. DaVita Inc. (DVA - Free Report) adds context for kidney-care exposure, an area where Quest has broadened capabilities through the Fresenius Medical Care collaboration.

Based on short-term price targets offered by 16 analysts, the average price target for Quest Diagnostics comes to $242.75, representing an increase of 3.2% from the last closing price. 

Image Source: Zacks Investment Research

DGX Scores Favor Near-Term SelectivityDGX still has a constructive near-term profile. The stock currently carries a Zacks Rank #2 (Buy), which reflects favorable earnings estimate revision trends over the one-to-three-month horizon.

The Style Scores add nuance. DGX has a Momentum Score of A and a VGM Score of A, while its Value Score and Growth Score are both B. That mix points to solid overall characteristics, with momentum currently standing out more than the valuation margin of safety.

For investors, the stock remains worth watching, but selectivity is warranted. Earnings momentum, higher guidance and positive estimate revisions support the near-term case, while valuation, leverage and margin pressure argue against chasing the stock without regard to entry point.

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

by Todd Bishop on Jul 31, 2026 at 8:28 amJuly 31, 2026 at 8:33 am

The number of product research and development roles at Microsoft declined for the second straight year, according to the company’s annual regulatory filing, offering a new indication of how the tech giant is reshaping its workforce in the AI era.

Microsoft’s total headcount declined by 5,000 people to 223,000 as of June 30, according to its Form 10-K, filed with the SEC this week. It’s the first annual employment decline for Microsoft since 2016, when the company was writing off and winding down its Nokia smartphone business.

The trend is notable in part because, over the same time period, Microsoft’s revenue rose 18%, or $50.1 billion, to $331.8 billion — the largest one-year increase in the company’s history.

Here’s how the employment trends break down:

Product R&D roles represented the majority of the net decline, falling by 3,000, to 77,000 — down from a peak of 81,000 in 2024. Operations roles, now Microsoft’s largest employment category, held steady at 89,000 after growing by 3,000 the year before. It includes datacenter operations, product support, consulting, and manufacturing and distribution. Sales and marketing roles declined by 1,000, to 43,000, and general and administration by 1,000, to 14,000. The reductions fell disproportionately on Microsoft’s U.S. workforce, which declined by 4,000, to 121,000. International employment declined by 1,000, to 102,000. The numbers reflect the roughly 9,000 jobs Microsoft cut on July 2, 2025, two days into its fiscal year. They do not reflect the 4,800 cuts announced July 6 of this year — spanning sales, consulting and Xbox — or the thousands of U.S. employees who left in early July under the company’s first voluntary retirement program.

On the earnings call Wednesday, CFO Amy Hood confirmed that “total company headcount declined 2% year over year.” She linked a 10% increase in operating expenses to “continued investment in R&D compute capacity, talent, and data to support product development across the portfolio.”

AI coding tools — including Microsoft’s own GitHub Copilot — have become a standard part of how software is built at Microsoft and across the industry, reducing the number of people and the amount of time it takes to ship products, while often expanding the total scope of the work.

Microsoft has repeatedly declined to link its job cuts to AI. Chief People Officer Amy Coleman said in a memo earlier this month that the roles being eliminated were not being directly replaced by AI, while acknowledging that “AI is changing how work gets done.”

Tech companies have been keeping a tighter rein on operating expenses, primarily through job cuts, in part to offset soaring capital expenses to support their AI infrastructure buildouts. Microsoft’s capex reached $41 billion in the June quarter alone.

Microsoft is also moving engineers out of product development and into customer-facing roles. The Microsoft Frontier Company, a $2.5 billion initiative announced July 2, brings together more than 6,000 people to embed engineers inside customers building AI systems — a group drawn “primarily from Microsoft’s existing engineering and forward-deployed teams,” according to the company.

Shares of AMD (NASDAQ:AMD | AMD Price Prediction) are trading at $485.39, while the average analyst price target sits at $575.49, implying roughly 19% upside. The loudest bull on the Street is calling for something dramatically larger.

AMD designs the CPUs and GPUs powering hyperscale AI data centers. After Q1 revenue climbed 37.85% year over year on a 57% Data Center surge, the story centers on how much of the AI accelerator market Lisa Su can capture from NVIDIA. The recent pullback matters: the stock has cooled just as its most important customer, Microsoft (NASDAQ:MSFT), delivered results that reset the AI capex ceiling.

A July Slide Meets a Microsoft Reset AMD entered July near record levels and gave back 10.26% across the month, with the sharpest damage in the final week at -10.06%. Fed uncertainty, softer GDP prints, and broader AI trade concerns drove the decline.

On July 30, AMD rallied 13% as Microsoft’s July 29 report landed. Azure grew 43% and full-year FY2026 capex reached $115.95 billion, validating accelerating hyperscaler spend. Two days earlier, Synopsys, AMD, and Microsoft announced an expanded agentic-AI EDA collaboration on Microsoft Discovery, cutting debug cycle time by 40%. For AMD’s Data Center segment selling directly into Azure’s buildout, that is the catalyst.

Why Baird Doubled Its Target to $1,250 Baird’s Tristan Gerra just doubled his AMD price target from $625 to $1,250, reiterating Outperform and setting the Street high. Against the current print, that implies roughly 155% upside, well beyond the consensus $575.49 figure.

Gerra’s thesis rests on two pillars. First, he models $147 billion in AI GPU revenue for AMD by 2030, assuming AMD captures 15% of global data center AI workloads. Second, he sees the full-stack story landing: Helios rack-scale platforms, MI450 accelerators, and next-gen “Venice” EPYC CPUs deployed together at Microsoft, Meta, OpenAI, and Oracle. Lisa Su’s commentary aligns: “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.”

Q1 non-GAAP EPS came in at $1.37, free cash flow surged 252.96% to $2.57 billion, and management guided Q2 revenue to ~$11.2 billion, a 46% jump. Prediction markets assign an 88.5% probability that AMD beats on its next print.

Ratings back the posture. Alpha Vantage tallies 5 Strong Buy, 37 Buy, 9 Hold, with no Sell calls, and recent revisions have skewed toward reiterations and raises.

AMD Fell Alone While the AI Group Diverged AMD’s July drawdown stands out against every close comparable in the AI peer group.

NVIDIA (NASDAQ:NVDA) trades at $195.04 against a $302.83 average target, roughly 55% upside, and slipped only 2.52% in July. With 58 Buys, 2 Holds, and 1 Sell, sentiment remains firmly bullish.

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

Broadcom (NASDAQ:AVGO) rose 2.67% in July to $387.84, versus a $527.88 target and 44 Buys against 4 Holds, implying about 36% upside as custom AI silicon demand compounds.

Intel (NASDAQ:INTC) cratered 34.73% in July to $91.13 against a $115.27 target and a mixed 13 Buy, 32 Hold, 4 Sell posture.

The widest analyst-implied upside sits with AMD once Baird’s Street-high call is included: NVDA and AVGO barely moved, INTC’s rating quality is worse, and AMD gets the biggest bull thesis attached to the deepest recent pullback.

The Numbers Behind the Dislocation AMD trades at $485.39 versus a consensus target of $575.49 from 51 covering analysts, roughly 19% consensus upside, stretching to about 155% at Baird’s Street high. The 52-week range runs from $149.22 to $584.73, and the stock sports a forward P/E of 63x.

AMD is up 126.65% year-to-date versus the S&P 500’s 8.76% gain, and up 170.4% over the past year. Even after the July slide, the longer-term chart remains intact.

Bull Case Wins If MI450 Ramps Cleanly The bull case holds if MI450 and Helios ship on time in the second half, hyperscalers keep spending at the pace Microsoft validated, and Baird’s 15% share assumption in AI GPUs proves directionally right. In that world, $575 is a base case and $1,250 becomes a genuine multi-year target.

The bear case holds if the July selloff was signal: cheaper AI models eroding accelerator demand, MI450 slipping, or margin compression as AMD chases NVIDIA on price. With a forward P/E of 63x and heavy insider selling flagged recently, execution needs to be near-flawless.

On balance, the Microsoft print reaffirmed demand right into AMD’s catalyst window, and the analyst community is not budging. The dislocation looks more like opportunity than trap, provided investors size for the volatility a 2.47 beta implies.

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

Contact [email protected] for any questions or corrections.

Item 1 of 2 The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration

[1/2]The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 31 (Reuters) - Chinese AI firm Moonshot has a computing agreement with Alibaba Group (9988.HK), opens new tab for the use of about 20,000 ​Nvidia (NVDA.O), opens new tab chips, Bloomberg News reported on Friday, citing people familiar ‌with the matter.

Alibaba, one of Moonshot's largest investors, expects portfolio companies to use its cloud, the report said. The Nvidia chip cluster Alibaba provides accounts for a key portion of the ​computing power behind Moonshot's Kimi models, it added.

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

Moonshot earlier this ​month unveiled Kimi K3, a 2.8-trillion-parameter model. It said Kimi K3 was the world's largest ⁠open-weight AI system and delivered performance approaching U.S. giant Anthropic's frontier Fable model.

U.S. ​export controls on advanced Nvidia chips have made access to computing ​power a key constraint for Chinese companies.

Moonshot can access Nvidia's newer Blackwell processors through Southeast Asia and is seeking additional chips to train its next AI model, Bloomberg ​reported.

Separately, the roughly 20,000 Nvidia chips Moonshot has access to are from the ​chip giant's earlier Hopper generation, the report said.

Before Nvidia rolled out its Blackwell lineup, ‌Hopper ⁠chips were used across the AI industry to train and deploy models.

An Alibaba spokesperson denied to Bloomberg that the company provides H200-powered computing services to Moonshot.

Moonshot's Kimi model surpassed Alibaba's Qwen on key performance measures ​despite access to ​similar training ⁠resources, disappointing some Alibaba employees, the report said.

Reuters could not independently confirm the report. Moonshot and Alibaba could ​not be reached for comment outside regular business hours.

The White ​House, the U.S. ⁠Commerce Department and Nvidia did not immediately respond to Reuters' requests for comment.

The report comes as Moonshot faces growing scrutiny from U.S. officials. The ⁠U.S. ​government had information indicating Moonshot distilled Anthropic's ​Claude Fable 5 model to develop Kimi K3, the White House's top tech adviser, Michael ​Kratsios, said last week.

Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya Biswas

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

Key Takeaways ExxonMobil posted Q2 adjusted earnings of $3.52 and revenue of $116 billion, topping revenue estimates.ExxonMobil's upstream segment earned $9.19 billion, supported by Permian output above 1.8 million barrels.ExxonMobil generated $17.2 billion in free cash flow and reduced net debt by more than $7 billion. ExxonMobil Holdings Corporation (XOM - Free Report) has reported second-quarter 2026 adjusted earnings of $3.52, missing the Zacks Consensus Estimate of $3.68 by 4.3%. Revenues of $116 billion topped the consensus estimate of $95.8 billion by 21.1%. Adjusted earnings increased from $1.61 in the year-ago quarter, while revenues rose 42.3% year over year from $81.5 billion.

The lower-than-expected quarterly earnings can be attributed to higher expenses due to scheduled maintenance activities and increased depreciation tied to recent investments. The company faced production disruptions related to Middle East conditions.

The results were partially offset by strong operating execution, with upstream production reaching 4,514 thousand oil-equivalent barrels per day and record Permian output above 1.8 million oil-equivalent barrels per day. ExxonMobil highlighted portfolio strength, cost savings and supply-chain optimization as the key contributors to its results.

XOM Benefits From Upstream Production GrowthExxonMobil’s upstream segment remained a major earnings contributor, generating adjusted earnings of $9.19 billion in the second quarter. The company reported its highest upstream production in more than two decades, excluding Middle East disruptions, supported by strong reliability and growth from advantaged assets.

The Permian Basin was a key operational driver, with production exceeding 1.8 million oil-equivalent barrels per day. Management said that Permian growth is expected to support a planned 9% compound annual growth rate through 2030. The fifth Guyana FPSO also set sail, with production startup expected in the fourth quarter and capacity expected to increase by 250 thousand barrels per day.

ExxonMobil Captures Energy Product GainsXOM’s Energy Products segment delivered adjusted earnings of $4.10 billion, helped by stronger refining conditions, optimization efforts and structural savings. Energy Products sales volumes increased to 5,698 thousand barrels per day from 5,630 thousand barrels per day in the prior quarter.

The company achieved record second-quarter diesel production as global supply conditions tightened. Management noted that its integrated system helped redirect products and optimize assets during market disruptions. However, scheduled maintenance affected reported results during the quarter.

XOM Sees Chemical And Specialty RecoveryExxonMobil’s Chemical Products segment posted adjusted earnings of $1.21 billion, improving from $110 million in the first quarter. The company benefited from North American feedstock advantages and stronger chemical margins, with management citing reliability across its Gulf Coast manufacturing assets.

Specialty Products adjusted earnings reached $969 million, supported by higher basestock margins and growth in high-value products. The segment continued to offset pressure from Middle East disruptions through stronger product performance.

ExxonMobil Expands Investments While Cutting CostsXOM continued investing in growth opportunities, with cash capital expenditure of $6.8 billion during the quarter and $13 billion for the first six months of 2026. The company said that 2026 planned investments are 20% higher than the nearest international oil company, with spending focused on advantaged assets and high-value products.

Cost efficiency remained a significant earnings support. The company reported cumulative structural cost savings of $16.3 billion, which it said exceeded the combined savings reported by other international oil companies.

XOM Strengthens Cash Flow & Balance SheetExxonMobil generated $23.6 billion in cash flow from operating activities and $17.2 billion in free cash flow during the second quarter. Shareholder distributions totaled $9.4 billion, including $4.3 billion in dividends and $5.1 billion in share repurchases.

The company ended the quarter with cash and cash equivalents of $10.6 billion and long-term debt of $32.2 billion. ExxonMobil also reduced net debt by more than $7 billion during the second quarter, improving its net debt-to-capital ratio to 11%.

ExxonMobil Outlines Q3 ExpectationsXOM expects third-quarter upstream results to reflect lower Guyana net entitlement volumes of about 100 thousand barrels per day due to production-sharing adjustments. Management said that this change does not reflect weaker operating performance or lower gross production.

The company also expects corporate and financing expenses of $0.8-$1 billion in the third quarter. Scheduled maintenance in Product Solutions is expected to be lower than in the second quarter, while Middle East production impacts remain a key factor for the outlook.

Zacks Rank & Stocks to ConsiderExxonMobil currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are HF Sinclair Corporation (DINO - Free Report) , Valero Energy (VLO - Free Report) and Kinder Morgan Inc. (KMI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

HF Sinclair’s operations are anchored by its refining business, which consists of seven complex refineries located across the Mid-Continent, Southwest, Rocky Mountains and Pacific Northwest regions. These facilities have a combined crude processing capacity of approximately 678,000 barrels per day, and are equipped to process discounted heavy and sour crude oils into higher-value refined products, including gasoline, diesel and jet fuel. The company’s renewables segment comprises the Artesia, Cheyenne and Sinclair renewable diesel facilities, which together have an annual production capacity of about 378 million gallons.

Valero is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

Kinder Morgan operates one of North America's largest natural gas infrastructure networks, consisting of approximately 58,600 miles of transmission pipelines, 6,800 miles of gathering systems and 1,300 miles of natural gas liquids pipelines. KMI transports nearly 40% of U.S. natural gas production and controls more than 700 billion cubic feet of storage capacity, representing roughly 15% of the nation's total storage capacity.

Just a few short years ago, General Motors and Ford were all-in on electric vehicles, spending billions of dollars on those efforts. Now, the two biggest American automakers are hardly talking about EVs with their investors.

TechCrunch teamed up with Hudson Labs, a New York-based financial research firm, to analyze the last seven years of GM and Ford quarterly earnings calls and found that both companies are talking about EVs at a lower rate than they did before the pandemic.

This shouldn’t shock anyone who’s followed the news over the last two years. Both companies have altered, delayed, or outright abandoned plans for new EV models, prompting layoffs and scaled back factory plans. And while GM and Ford still sell EVs and have new models in their product pipelines, their collective focus has shifted, and it shows in the data.

Jim Cain, a spokesperson for GM, said that “quality counts more than quantity.”

“We’ve been very clear and consistent in communicating our view that EVs are the end game, the strength of our portfolio today, the loyalty of EV customers to the technology, awards we’ve won, our growing EV market share, and our commitment to continue investing in technologies like LMR (lithium manganese-rich) to improve profitability,” he said in an emailed statement.

But, he added: “we devote time on the calls to discuss growth opportunities like software and services and autonomous technology, and address complex topics of analyst/investor interest like trade and regulatory policy impacts, operating performance, capital allocation, regional performance, headwinds and tailwinds — all while making sure at least half the call is devoted to Q&A.”

Ford spokesperson David Tovar, meanwhile, pointed to the company’s planned launch of its new “Universal Electric Vehicle” platform next year. “[W]e think the first product rolling off the line, a midsize pickup truck, will hit the sweet spot of the EV market for cost, price, and technology,” he said.

For this analysis, TechCrunch excluded the ostensible third of the Detroit Big Three, Stellantis, for a few reasons. The automaker, which emerged in 2021 from the merger of Fiat Chrysler and France’s PSA Group, traditionally lagged behind its U.S. counterparts in EV adoption. Stellantis also, until the first quarter of this year, held comprehensive earnings calls only twice a year, instead of four times annually, like most public companies.

Hudson Labs sourced earnings call transcripts from S&P Market Intelligence dating back to 2019, and used its Co-Analyst — an AI research tool purpose-built for high-precision financial research — to assign topic tags to each sentence. It then counted the frequency of those topics as well as each topic’s share of the discussion to produce the charts below

General Motors GM bet on mass-market EVs before most other major automakers. It debuted the Bolt EV at the Consumer Electronics Show in January 2016, and put the car on sale by the end of that year — a healthy six months or so ahead of Tesla’s first deliveries of the Model 3.

EVs really became a focus of GM’s earnings calls as its investment ramped up in 2019 and into 2020. At that point, the company was teasing new made-in-the-U.S. models and talking about transforming Cadillac into an all-electric brand. GM spent an increasing amount of time talking about its EV plans through early 2021, with more than 100 references to electric vehicles on each of its last two earnings calls in 2020. That meant EVs accounted for roughly a third of the overall discussion on those calls.

Aside from a dip in the first quarter of 2021, when companies around the world were dealing with a major chip shortage, GM spent nearly the next four years — notably while President Biden was in office — dedicating around a quarter of each earnings call to discussing EVs. (Another notable dip came in the first quarter of 2025 was attributable to President Trump’s “Liberation Day” tariffs, which dominated that earnings call.)

After Trump regained office, he slashed environmental regulations that incentivized zero-emissions vehicles, and his party tore up the $7,500 federal tax credit for new EVs. At the same time, GM’s talk of EVs dropped significantly, from 82 mentions on the second-quarter call in 2025, to just 21 on its most recent call covering Q2 2026.

While GM remains the second-largest seller of EVs in the U.S., the company that once made the lofty promise to go all-electric by 2035 is now talking more about how it has “align[ed] our EV capacity and manufacturing footprint with the changes in regulatory policy” — when it talks about EVs at all.

Ford Ford’s first serious entry into the world of mass-market EVs was the Mustang Mach-E, which debuted in late 2019. As the company got closer to delivering the first models in late 2020, it started talking more and more about electric vehicles on its earnings calls.

Aside from a similar dip in mentions on the Q1 2021 call, which was bogged down by talk of the global semiconductor shortage, Ford — like GM — started spending around a third of each quarterly investor check-in talking about EVs. Those discussions were buoyed by the launch of its second major EV model, the F-150 Lightning, in 2021. And that level of focus largely held through the Biden years, as his administration freed up federal money for charging stations and EV manufacturing credits, while shaping policy around the battery material supply chain.

Ford began talking less about EVs before the 2024 election, though. By the middle of that year, the company was already backing away from some of its largest contemporary EV investments in favor of a skunkworks project that ultimately became the Universal Electric Vehicle platform. Talk of EVs dipped further after Trump took office, with CEO Jim Farley spending more time discussing support for the president’s protectionist trade policy and the company’s near-term focus on its higher-margin gas F-Series trucks.

Still, on Ford’s most recent call, Farley talked up the idea that the company “will become a major scaled competitor as we invest in affordable, versatile EVs.” But for that to happen, investors will have to wait until at least next year.

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, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced the successful completion of the sale of its Brazilian operations, operated under the CERATTI® brand, to Zanchetta Alimentos LTDA, a Brazilian food company with an established presence in the market.

The transaction follows the definitive agreement announced on June 29, 2026, and reflects Hormel Foods' ongoing efforts to simplify and streamline its portfolio while focusing its international strategy on markets with the strongest long-term growth opportunities.

Financial terms of the transaction were not disclosed. As previously communicated, Hormel Foods expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results. Additional information will be shared during the company's third-quarter fiscal 2026 earnings call.

About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which are based on the current assumptions and expectations of Hormel Foods Corporation ("Hormel"). These statements are typically accompanied by the words "expect," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding Hormel's sale of its Ceratti business in Brazil, international growth opportunities, and the expected impact of the transaction on Hormel's fiscal 2026 financial results.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although Hormel believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors which could cause Hormel's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks related to acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that Hormel may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and Hormel's recent corporate restructuring plan; risk of unfavorable changes in Hormel's relationships with third parties; risk of Hormel's inability to protect information technology (IT) systems against, or effectively respond to, cyber-attacks, security breaches or other IT interruptions; labor relations and labor availability risks; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for Hormel's products; risks related to Hormel's ability to respond to changing consumer preferences; damage to Hormel's reputation or brand image; risks of litigation; risks associated with government regulation; risks related to trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of Hormel's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section. Though Hormel has attempted to list comprehensively these important cautionary risk factors, Hormel cautions that other factors may in the future prove to be important in affecting Hormel's business or results of operations. Forward-looking statements speak only as of the date they are made, and Hormel does not undertake any obligation to update any forward-looking statement except as otherwise required by law.

SOURCE Hormel Foods Corporation

Key Takeaways Grainger is expected to report Q2 sales of $4.95 billion and EPS of $11.28, both up y/y.GWW's High-Touch Solutions may benefit from strength in key industries and customers growth.GWW's Endless Assortment is likely to gain from customer acquisition, repeat business and MonotaRO and Zoro. W.W. Grainger, Inc. (GWW - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4, before the opening bell.

The Zacks Consensus Estimate for GWW’s sales is pegged at $4.95 billion, indicating 8.8% growth from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pegged at $11.28 per share. The consensus estimate for GWW’s earnings has moved up 1.3% in the past 60 days. The estimate indicates a year-over-year increase of 13.1%.

Image Source: Zacks Investment Research

GWW’s Earnings Surprise HistoryGrainger’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 4.2%.

Image Source: Zacks Investment Research

What the Zacks Model Unveils for GraingerOur model predicts an earnings beat for GWW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Grainger has an Earnings ESP of +2.50%.

Zacks Rank: GWW currently has a Zacks Rank of 3.

Factors Likely to Have Shaped GWW’s Q2 PerformanceGrainger has been focusing on enhancing the end-to-end customer experience through investments in its e-commerce and digital capabilities, while executing supply-chain improvement initiatives. These factors are likely to have contributed to its quarterly performance. We expect organic daily sales growth of 8.5%.

The company’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing; strong revenue growth across its North America regions; and an expansion in the number of large and midsize customers. Our model projects quarterly organic daily sales growth of 7.4% from the year-ago quarter's reported level.

We expect the segment’s sales to be $3.81 billion for the second quarter, suggesting 7.4% growth from the second-quarter 2025 reported level.

GWW’s Endless Assortment segment is likely to have benefited from robust customer acquisition and repeat business. Our model predicts quarterly organic daily sales to grow 12.2% from the prior-year reported level. Customer growth at MonotaRO and Zoro is expected to have positively impacted the segment’s sales. Our model predicts the Endless Assortment segment’s sales to be $1.03 billion, indicating a 10.8% rally from the prior-year quarter’s reported figure.

However, GWW has been witnessing elevated material and freight costs for some time. This, coupled with higher operating costs and incremental SG&A costs from higher technology investments, is likely to have negatively impacted its margins.

Grainger Stock’s Price PerformanceGWW shares have gained 31.1% in a year against the industry’s 0.1% loss.

Image Source: Zacks Investment Research

Other Stocks That Warrant a LookHere are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.

CECO Environmental Corp. (CECO - Free Report) , slated to release second-quarter 2026 results on Aug. 6, has an Earnings ESP of +30.23% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for CECO Environmental’s second-quarter 2026 earnings is pegged at 22 cents per share, suggesting a year-over-year dip of 8.3%. CECO has a trailing four-quarter average surprise of 46.5%.

Xometry, Inc. (XMTR - Free Report) , slated to release second-quarter 2026 results on Aug. 4, currently has an Earnings ESP of +66.67% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Xometry’s second-quarter 2026 earnings is pegged at 36 cents per share, suggesting a year-over-year rise from 9 cents. XMTR has a trailing four-quarter average surprise of 46.2%.

Ferguson Enterprises Inc. (FERG - Free Report) , slated to release second-quarter 2026 results on Aug. 10, has an Earnings ESP of +1.22% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Ferguson’s second-quarter 2026 earnings is pegged at $3.23 per share. Ferguson has a trailing four-quarter average surprise of 6.5%.

Key Takeaways Palantir’s latest quarterly results are due Monday afternoon, with options pricing suggesting traders see the stock swinging up to 10% in the days following the report. Shares of Palantir have been pressured this year amid a broader slump in software stocks. Get personalized, AI-powered answers built on 27+ years of trusted expertise.

Palantir is due to report earnings Monday afternoon, with traders expecting a big swing in the software maker’s stock.1

Based on recent options pricing, Palantir (PLTR) shares are seen moving up to 10% in either direction by the end of the week following the results. From the Friday morning’s level around $120, that could see the shares rise back above $132, recovering some of their recent losses, or slip below $109.

Palantir shares have lost nearly a third of their value since the start of the year. Solid earnings haven’t been enough to lift the stock out of its slump, amid a broader pullback in software stocks.

Why This Matters to Investors Another strong quarter could help improve sentiment around Palantir’s stock, which has taken a hit lately.

Citi analysts wrote ahead of the report that Palantir’s recent slide could offer investors an opportunity to buy, and said they expect a strong performance from Palantir’s commercial business.2

Analysts expect Palantir to report second-quarter revenue of $1.81 billion, up over 80% year-over-year, along with adjusted earnings of 35 cents per share, more than double what Palantir reported a year ago.

Analysts are largely bullish on Palantir stock, with the six tracked by Visible Alpha split between four “buy” and two neutral ratings. Their mean price target of $197 would suggest more than 60% upside from the stock’s recent level.

Shares of ServiceNow (NOW +0.53%) have jumped by as much as 13.8% this week, according to data from S&P Global Market Intelligence. The software provider reported earnings last week and raised its full-year guidance, prompting investors to buy the stock. As a software stock, shares have still suffered a massive drawdown over the last 12 months, down 41%.

As of this writing at 11:50 AM EST on Friday, July 31, ServiceNow is up 11.4% this week.

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Earnings boost leading to recovery Late last week, ServiceNow reported its Q2 2026 earnings. It beat previous guidance for subscription revenue, which grew 23% year-over-year in constant currency to $3.88 billion. For the full year, ServiceNow is now guiding to $15.76 billion in subscription revenue, which is set to grow to $30 billion by 2030.

Importantly, it expects much of this revenue to come from AI services as it works to embed modern tools into its existing software to orchestrate complex workflows across enterprises.

Image source: Getty Images.

Is ServiceNow a buy? ServiceNow stock has begun to rebound, but is still trading at one of its lowest price-to-sales ratios (P/S) in years. As of this writing, its sales multiple is 7.8, and will keep falling if it can compound revenues from now through 2030. Assuming strong profit margins, ServiceNow stock could be a buy after this week's rebound.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.

July 31 (Reuters) - Roblox (RBLX.N), opens new tab shares plunged nearly 30% on Friday, set for their worst one-day decline on record, after the gaming platform forecast a ​sharp drop in bookings, stocking concerns that recommendation algorithm changes ‌could further pressure near-term spending.

If losses hold, Roblox is on track to erase more than $10 billion from its market value, which stood at about $34.9 billion before ​the selloff.

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Roblox said on Thursday it revamped its recommendation algorithm to ​prioritize games with stronger long-term retention over "cash-grabby" titles focused on ⁠short-term spending, hurting bookings as users shifted toward less-monetized experiences.

The ​changes led second-quarter bookings to the low end of Roblox's forecast range ​at $1.56 billion, with executives cautioning that monetization weakness could persist in the current quarter.

"Comparisons get tougher through August and September just as monetization is more challenged, particularly ​for U13 users, where we suspect parents are simply less willing ​to hand over highly discretionary dollars right now," analysts at Wedbush said, after ‌downgrading ⁠the stock to neutral.

Roblox forecast its first quarterly bookings decline in four years, expecting a 14% to 18% year-over-year drop in the third quarter, compared with LSEG-compiled estimates for roughly an 8% decline.

Earlier this year, ​Roblox unveiled age-based ​accounts and age-verification ⁠features that tailor platform access and communication settings to a user's age, helping curb interactions between younger ​children and older users.

With these changes pressuring near-term growth, ​management ⁠declined to provide an updated full-year outlook for bookings, which is generated from in-game purchases of virtual currency "Robux".

Investors are also bracing for a more ⁠competitive ​gaming market later this year, with the ​launch of Take-Two's "Grand Theft Auto VI" expected to intensify the battle for player engagement and ​discretionary spending.

Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore

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

Franklin Resources (BEN - Free Report) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.09%. A quarter ago, it was expected that this investment manager would post earnings of $0.55 per share when it actually produced earnings of $0.71, delivering a surprise of +29.09%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Franklin Resources, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $2.36 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.11%. This compares to year-ago revenues of $2.06 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Franklin Resources shares have added about 38.9% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Franklin Resources?While Franklin Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Franklin Resources was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $2.36 billion in revenues for the coming quarter and $2.81 on $9.26 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Capital Southwest (CSWC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.

This business development company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -6.8%. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level.

Capital Southwest's revenues are expected to be $60.4 million, up 8% from the year-ago quarter.

Worried About a Fading Rally? Consider These 3 Dividend StocksT. Rowe Price Group NASDAQ: TROW reported second-quarter 2026 adjusted diluted earnings per share of $2.57, up from $2.52 in the first quarter and $2.24 a year earlier, as higher average assets under management and investment advisory revenue outweighed increased expenses.

The asset manager ended the quarter with $1.9 trillion in assets under management and $6.5 billion in net outflows. Chair and CEO Rob Sharps said markets rebounded during the quarter after a difficult beginning to the year, while fundamental active equity strategies remained under pressure. He said the company expects that pressure to continue in the second half of 2026.

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10-year yield is below 4.5%...these dividend growth yields aren’tHowever, T. Rowe Price recorded positive flows in May and June, including a large defined-contribution investment-only mandate for its hybrid target-date series in May and a large sub-advisory mandate in research and integrated equity strategies in June. The company also reported positive client flows in Europe, the Middle East and Africa, as well as Asia-Pacific.

Revenue Growth and Expense Outlook Chief Financial Officer Jen Dardis said adjusted net revenue was $1.9 billion in the second quarter, increasing 2.7% from the first quarter and 8.5% from the prior-year period. Investment advisory revenue totaled $1.7 billion, rising from both comparison periods on higher AUM.

The company’s annualized effective fee rate, excluding performance-based fees, declined to 38.1 basis points from 38.4 basis points in the first quarter. Dardis attributed the continuing fee-rate pressure to asset and vehicle mix changes, client demand for lower-fee strategies and vehicles, and redemptions from higher-fee equity strategies and mutual funds.

Adjusted operating expenses were $1.2 billion, up 4.2% sequentially and 4.9% year over year. The increase reflected higher market-driven costs, product and record-keeping expenses, and nonrecurring general and administrative costs. Higher technology, occupancy and facilities expenses also contributed to the year-over-year increase, partly offset by savings initiatives.

Based on average AUM and revenue trends in the first half, T. Rowe Price now expects full-year adjusted operating expenses, excluding carried-interest expense, to rise 4% to 7% from 2025’s $4.6 billion. Dardis said the company intends to continue investing in ETFs, separately managed accounts, outcome-oriented products, advice-led offerings and artificial intelligence while aiming to keep controllable expense growth in the low single digits.

During the quarter, T. Rowe Price repurchased $157 million of stock, bringing year-to-date repurchases to more than $497 million, or nearly 2.5% of shares outstanding. The company ended the quarter with 213.3 million shares outstanding and $4.4 billion in cash and discretionary investments.

Strategic Focus on ETFs, SMAs and Alternatives Sharps said T. Rowe Price is pursuing growth across fixed income, alternatives, ETFs, SMAs and direct platforms, while continuing to support its active equity franchise. Direct active equity accounts for about $900 billion of the company’s AUM, he said, and remains important despite continued outflows.

The company’s integrated equity and fixed-income strategies, which combine fundamental research and quantitative insights, represent about $200 billion in AUM and generated $16 billion in net inflows year to date. T. Rowe Price launched two lower-tracking-error active core equity ETFs earlier this year.

The ETF platform expanded to 34 funds with $30 billion in AUM, including $4.4 billion of net inflows during the second quarter. In June, the company launched the T. Rowe Price Capital Appreciation Market Opportunities ETF. In mid-July, it launched the T. Rowe Price Active Crypto ETF, an actively managed multi-token exchange-traded product and the firm’s first non-investment-company ETF.

Sharps said the pace of U.S. ETF launches is expected to slow as the firm focuses more heavily on scaling its existing lineup. He identified ETF use as building blocks in wealth-management model portfolios as a major opportunity. President, Co-Head of Global Investments and CIO Eric Veiel added that the company is building relationships with technology providers and platforms to expand its reach in both customized and off-the-shelf models.

The separately managed account business included 43 products and $20 billion in AUM at quarter-end. Sharps said the company was a late entrant to the market but has placed strategies with 35 sponsors and plans to launch its own tax-efficiency capability with a vendor partner.

T. Rowe Price also advanced its alliance with Goldman Sachs. The firms launched the T. Rowe Price Goldman Sachs Private Markets Fund, their first interval fund collaboration, on July 1. A public-private equity interval fund is in registration and expected to launch later this year. Sharps said the firms have also launched five model portfolios that are approaching $500 million in AUM.

Investment Results and Second-Half Flows Veiel said more than half of T. Rowe Price funds outperformed their Morningstar peer groups over one-, three- and 10-year periods, while 44% outperformed over five years. On an asset-weighted basis, 79% of funds outperformed over 10 years, compared with 44%, 57% and 43% over one, three and five years, respectively.

Fixed-income performance was stronger on an asset-weighted basis, with more than 75% of funds outperforming in each reported period. Veiel highlighted global multi-sector, institutional floating-rate and several municipal strategies for top-quartile three-, five- and 10-year results.

Sharps cautioned that net flows will become “meaningfully more challenging” in the second half. He cited continued active-equity outflows, the absence of the large mandates that supported first-half results, expected portfolio rebalancing away from equities after market gains, and a late-stage lull in the target-date pipeline.

Still, he said the company expects 2026 to be a record year for gross flows, supported by client demand across lower-tracking-error strategies, active ETFs, fixed income, alternatives and international markets.

About T. Rowe Price Group (NASDAQ:TROW)T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm's product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.

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

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For the quarter ended June 2026, VALE S.A. (VALE - Free Report) reported revenue of $10.5 billion, up 19.2% over the same period last year. EPS came in at $0.36, compared to $0.50 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $10.4 billion, representing a surprise of +0.9%. The company delivered an EPS surprise of -12.2%, with the consensus EPS estimate being $0.41.

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 VALE performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Volume sold in tons - Pellets: 7,748.00 Kmt versus 7,791.80 Kmt estimated by two analysts on average.Volume sold in tons - Nickel: 44.00 Kmt compared to the 43.45 Kmt average estimate based on two analysts.Volume sold in tons - Fins: 69,946.00 Kmt compared to the 69,883.47 Kmt average estimate based on two analysts.Volume sold in tons - ROM: 2,053.00 Kmt compared to the 1,995.24 Kmt average estimate based on two analysts.Volume sold in tons - Copper: 78.00 Kmt versus the two-analyst average estimate of 96.43 Kmt.Average Price - Iron ore pellets realized price: $137.00 compared to the $136.00 average estimate based on two analysts.C1 cash cost - Iron ore fins - excluding third-party purchase costs: $24.10 versus $24.80 estimated by two analysts on average.Revenue- Vale Base Metals: $2.61 billion versus the two-analyst average estimate of $2.61 billion. The reported number represents a year-over-year change of +41.8%.Revenue- Iron ore solutions- fines: $6.64 billion compared to the $6.69 billion average estimate based on two analysts. The reported number represents a change of +15.3% year over year.Revenue- Vale Base Metals- Copper: $1.56 billion versus the two-analyst average estimate of $1.53 billion. The reported number represents a year-over-year change of +96.1%.Revenue- Vale Base Metals- Nickel: $1.24 billion versus $1.23 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +88.9% change.Revenue- Iron ore solution- Pellets: $1.06 billion versus $1.02 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.8% change.View all Key Company Metrics for VALE here>>>

Shares of VALE have remained unchanged over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

Ballard Power Systems (BLDP - Free Report) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to a loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -75.00%. A quarter ago, it was expected that this fuel cell technology company would post a loss of $0.06 per share when it actually produced a loss of $0.04, delivering a surprise of +33.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Ballard, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $20.6 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 23.62%. This compares to year-ago revenues of $17.84 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ballard shares have added about 9.8% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Ballard?While Ballard has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ballard was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.05 on $37.83 million in revenues for the coming quarter and -$0.16 on $125.15 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Avista (AVA - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.

This utility is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -17.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Avista's revenues are expected to be $419.2 million, up 2% from the year-ago quarter.

3 Stocks to Buy After Heavy Insider BuyingAgree Realty NYSE: ADC reported record second-quarter investment activity and raised its full-year outlook, citing strong acquisition, development and portfolio performance.

President and CEO Joey Agree said the company invested more than $500 million across its three external growth platforms during the quarter, calling it a company record. The investment activity included $451 million of acquisitions involving 82 retail net-lease assets, along with development and developer funding platform activity.

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“The combination of real estate attributes, credit composition, and lease terms similarly represent the highest quality quarter in our company’s history,” Agree said.

Guidance Raised as Investment Pipeline Expands The company raised its full-year 2026 investment-volume guidance to a range of $1.6 billion to $1.8 billion. At the midpoint, the updated range exceeds the company’s investment activity last year and represents a 24% increase from its initial guidance for 2026, according to Agree.

Agree Realty also increased its full-year adjusted funds from operations, or AFFO, per-share guidance to $4.57 to $4.59. The midpoint was raised by $0.02 and implies nearly 6% year-over-year growth, CFO Peter Coughenour said.

Core FFO per share was $1.13 in the second quarter, up 7.5% from a year earlier. AFFO per share was $1.14, an increase of 7.4% year over year.

Coughenour said the updated outlook reflects higher investment activity and continued portfolio strength. The company now assumes 25 basis points of credit and occupancy loss for the year, at the low end of its prior 25-to-50-basis-point range. Through the first half of the year, Agree Realty experienced 10 basis points of fully loaded credit and occupancy loss.

Acquisitions Emphasized Retail Credit and Ground Leases Second-quarter acquisitions were concentrated in sectors including auto parts, home improvement, grocery, farm and rural supply, and convenience stores. Notable investments included three Walmart Supercenter ground leases in Missouri, Ohio and Wisconsin; a Walmart Neighborhood Market in Oregon; BP-branded travel centers; and a Home Depot ground lease in New Hampshire.

The acquired assets carried a weighted-average capitalization rate of 7% and a weighted-average lease term of 11.2 years. Investment-grade retailers accounted for more than 73% of annualized base rent acquired during the quarter, while ground leases represented approximately 13.5% of acquired annualized base rent.

Agree said the company has not seen material changes in competitive bidding conditions or cap rates, which he said have remained within a relatively consistent range for about three years. He attributed the company’s ability to acquire higher-credit assets without sacrificing yield to its retailer relationships, internal team and ability to offer multiple transaction structures.

Regarding the approximately $75 million BP transaction, Agree said the assets are large-format travel centers backed by BP North America, which carries an A-minus credit rating. He said the properties are generally located near interstate exits and feature long-term leases with significant escalations.

Ground leases accounted for more than 10% of Agree Realty’s annualized base rent at quarter-end. Agree described them as among his preferred risk-adjusted opportunities because the tenant has typically funded the building while the company owns the land. If a tenant leaves, the building reverts to the landowner, he said.

Development Activity Reaches Record Level The company commenced five development and developer funding projects during the quarter, with anticipated costs of about $88 million. The projects included its seventh and eighth 7-Eleven locations under construction, three Ross Dress for Less sites, two Burlington locations and three TJX concepts.

Through June 30, Agree Realty had commenced more than $105 million of projects, more than three times the volume in the prior-year period. It had 20 projects completed or under construction in the first half, representing roughly $200 million of committed capital.

The company is pursuing a medium-term goal of $250 million in annual development and developer funding platform commencements. Agree said there is a “50/50 shot” that the company reaches that target this year, subject to diligence and timing, and that management would set a new goal if it reaches the target ahead of schedule.

Agree said the development effort centers on tenants already represented in its portfolio, though the company may selectively develop for new tenants. The company continues to focus on off-price retail and large-format convenience stores, he said.

Portfolio Occupancy, Liquidity and Capital Position Agree Realty sold 14 properties during the quarter for approximately $30 million in gross proceeds at a weighted-average cap rate of 7%. The dispositions primarily included three Goodyear locations and four Advance Auto Parts stores. Agree said the properties were non-investment-grade assets with roughly 6.9 years of remaining lease term.

The company executed new leases, extensions or options on about 760,000 square feet during the quarter, producing a recapture rate of approximately 105%. Occupancy increased 10 basis points sequentially to 99.8%, matching a company record.

At quarter-end, the portfolio comprised 2,825 properties in all 50 states and Washington, D.C. Nearly two-thirds of the portfolio was investment grade, while 268 ground leases accounted for more than 10% of annualized base rent.

Year-to-date capital markets activity exceeded $1 billion. During the quarter, the company sold about 400,000 shares of forward equity for approximately $31 million in net proceeds and settled about 4.3 million shares of existing forward equity for nearly $315 million.

Agree Realty ended the quarter with approximately $1.9 billion of liquidity, including cash, forward equity and more than $750 million available under its revolving credit facility, net of commercial-paper borrowings. Pro forma for the settlement of outstanding forward equity, net debt to recurring EBITDA was approximately 3.7 times.

The company also said it has $300 million of forward-starting swaps in place, effectively fixing the base rate for a contemplated 10-year unsecured debt issuance at about 4.1%. Coughenour said the company could issue 10-year debt in the low-5% range based on current conditions and its swaps.

Agree Realty increased its monthly common dividend to $0.267 per share for April through June, equivalent to an annualized dividend of more than $3.20 per share. The dividend represented a 4.3% year-over-year increase and had a second-quarter AFFO payout ratio of 70%.

About Agree Realty (NYSE:ADC)Agree Realty Corporation NYSE: ADC is a publicly traded real estate investment trust headquartered in Chicago, Illinois. Founded in 1971, the company converted to a REIT structure in 2013 and focuses on acquiring, developing and managing a diversified portfolio of retail properties under long-term, triple-net (NNN) leases. Its tenant roster spans national and regional retailers in sectors such as grocery, home improvement, convenience and specialty retail.

Agree Realty's primary business activities include sourcing and underwriting new property acquisitions, originating build-to-suit projects and executing value-add redevelopment programs.

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