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New AI-native execution platform combines CRM, service operations, fulfillment and real-time monetization to help telecom providers move from reactive operations to autonomous execution and growth

SAN FRANCISCO--(BUSINESS WIRE)--Aria Systems, the leader in AI-powered billing automation, and ServiceNow, the AI control tower for business reinvention, today announce the launch of the world's first agentic Business Support System (BSS) solution for communication services providers (CSPs).

The joint solution combines the ServiceNow AI Platform, including its CRM solution and workflow automation capabilities, with Aria’s real-time agentic billing and monetization technologies to help telecom providers replace fragmented legacy systems with a unified execution platform built for the AI era.

As CSPs face growing pressure from AI-driven service models, rising operational costs, disjointed business processes, and increasing customer expectations, many continue to operate across dozens of inflexible legacy systems that are not in sync with one another. The combined ServiceNow and Aria solution addresses these challenges by enabling providers to automate operations, streamline service delivery, and modernize monetization on a unified end-to-end cloud-native platform.

Already proven with joint major telecommunications customers across Asia Pacific, Europe, and North America, the solution supports both traditional telecom services and next-generation digital business models across both B2C and B2B lines of business, including AI-driven services, Network-as-a-Service (NaaS), wholesale fiber and digital marketplaces. The platform introduces an agentic-first operating model designed for real-time automation, autonomous workflows, and closed-loop task execution to drive impactful business outcomes and reduced customer friction.

ServiceNow CRM, spanning sales, service, fulfillment and network with AI orchestration combines natively with Aria Billing Cloud, allowing commercial intelligence to become embedded directly into customer care, operational workflows, and AI-driven processes. Aria’s newest offer, Aria Allegro™ ACE (Adaptive Charging Engine), provides a 3GPP-compliant Online Charging System (OCS) and Converged Charging System (CCS) to support real-time authorization and accounting for any industry service.

“Traditional BSS stacks were built requiring onerous manual operations and resulting actions,” said Tom Dibble, President & CEO, Aria Systems. “Our partnership and solution with ServiceNow is built for agentic autonomous operations, unifying CRM, service management, fulfillment, and monetization into a real-time lead-to-loyalty execution platform proven for agentic AI and next-generation telecom business models.”

The platform is designed to reduce cost-to-serve by up to 70% through AI-native automation, while enabling commercial teams to quickly launch new products and pricing models without relying on change requests or lengthy development cycles. Built cloud-native from the ground up, the solution can be rapidly deployed in months and targets to reduce total cost of ownership by more than 50% compared with legacy operational environments.

“Telcos have been patching together BSS point solutions for decades, and the seams are showing,” said Romit Ghose, VP & GM, Technology, Media & Telco Industry Products, ServiceNow. “Legacy BSS is the number one blocker of agentic AI deployment for CSPs. Our partnership changes that. Together we’re delivering the full agentic BSS lifecycle across sales, service and fulfillment on a single cloud-native platform that is built for what operators need to deliver today and designed for the next era of growth.”

The solution will be showcased at TM Forum’s DTW Ignite 2026. Executive briefings and product demonstrations are available by appointment. To book a session, click here.

The ServiceNow Partner Program rewards partners for their broad expertise and experience to drive opportunities, reach new markets, and deliver transformative outcomes for joint customers across the enterprise. As a Build partner, Aria Systems develops and distributes applications on the ServiceNow AI Platform, enabling enterprises to unify billing, monetization, and operational workflows within a single AI-native environment.

About Aria Systems

Aria Systems is the leading cloud-native agentic billing platform built for enterprises with complex monetization needs. Recognized by top research firms, Aria helps businesses launch new offerings faster, adapt pricing on the fly, protect revenue at scale, and turn every customer interaction into a better experience. With Aria Billing Cloud, which incorporates agentic AI to help enterprises scale productivity, and Aria Allegro™, a next generation intelligent usage monetization engine, companies like AT&T, Comcast, Liberty Latin America, Telstra, and Experian trust Aria to power the full complexity of their commercial operations. Learn more at www.ariasystems.com.

ServiceNow, the ServiceNow logo, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries.

ServiceNow has been down because the market thinks agentic AI will vaporize its seat-based licensing revenue. Wall Street is missing the fact that >50% of net new ACV is already driven by non-seat consumption pricing, proving the structural pivot is working while growth accelerates. You are getting a hyper-efficient compounder at its cheapest multiple in public history (~21x FY26 adjusted EPS) for a clear asymmetric long opportunity.

Artificial intelligence (AI) was supposed to be bad news for ServiceNow (NOW +3.28%). When AI agents burst onto the scene, some investors worried businesses would no longer need traditional workflow software. Why pay for expensive software subscriptions if AI could automate tasks and build workflows on its own?

That concern helped fuel a sell-off across many software stocks earlier this year. Yet the opposite may be happening. Instead of replacing ServiceNow, AI could make the company's platform even more important. As businesses deploy more AI tools, they still need a way to manage, monitor, and coordinate all the work those systems create.

That is where ServiceNow comes in.

Image source: Getty Images.

ServiceNow already owns a critical layer of the enterprise To understand the opportunity, investors first need to understand what ServiceNow actually does. Imagine a company with 50,000 employees. New hires need laptops. Managers need to approve expenses. Human resources teams need to onboard workers. Security teams need to respond to cyber threats. Customer service representatives need help resolving issues.

Every one of those activities involves a workflow. Historically, employees handled many of these processes through emails, spreadsheets, phone calls, and disconnected software systems. The result was often slow, inefficient, and difficult to track.

ServiceNow helps automate those workflows. Instead of manually moving requests from one department to another, the platform routes tasks automatically and ensures the right people receive the right information at the right time.

That may not sound exciting, but it has become incredibly valuable. Once a large organization builds hundreds or even thousands of workflows inside ServiceNow, replacing the platform becomes difficult, expensive, and disruptive. As a result, customers tend to stay for years and often expand their spending over time by adding new products and capabilities.

Those dynamics have helped ServiceNow become one of the most successful enterprise software companies in the world.

AI may strengthen the company's position The next phase of the company's growth story revolves around AI. Many investors assume AI agents will reduce the need for workflow software. However, AI may actually create more demand for it.

Consider a simple example. Imagine an AI agent discovers that a manufacturing facility is running low on critical inventory. The AI agent can identify the issue. It can recommend a solution. It may even generate a purchase request.

But someone still needs to approve the spending. Someone needs to notify suppliers. Someone needs to update inventory systems. Every action must be documented and tracked. In other words, the AI agent can work on our behalf, but the organization still needs a workflow to manage that work.

This is exactly the opportunity ServiceNow is pursuing. The company has introduced AI-powered assistants, AI agents, and governance tools designed to help businesses manage both human employees and AI systems from a single platform. Together, these tools act as the AI Control Tower for companies.

Management's early results suggest customers are embracing that vision. ServiceNow reported that AI-related products such as Now Assist continued to gain traction, with Now Assist's net new annual contract value more than doubling year over year in the fourth quarter of 2025. It also delivered a solid 21% revenue growth in 2025, suggesting that the demand for its tools remains strong.

Longer-term, if ServiceNow executes its strategy, AI could become an opportunity for expansion rather than a threat of disruption.

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Investors should still watch the risks Of course, it's still early days in the AI race. Technology companies are racing to build increasingly capable AI systems. Some investors believe future AI agents could automate far more of companies' workflows than companies expect today. If that happens, the demand for ServiceNow's tools may fall.

Competition also remains intense in enterprise software, as both existing and new AI-native start-ups aim to capture ServiceNow's market share. The silver lining is that the company starts from a position of strength. Its software is deeply embedded in many of the world's largest organizations, giving it a significant advantage as customers seek ways to deploy AI responsibly.

What does it mean for investors? Most investors think about AI through the lens of chipmakers and model builders. Those companies are important. But they represent only one layer of the AI ecosystem. Businesses also need infrastructure to organize, govern, and coordinate the work AI systems produce. And that's what ServiceNow is trying to provide.

As companies deploy more AI agents across their operations, the challenge may not be creating intelligence. It may be managing it. If that proves true, ServiceNow could emerge as one of the most important enterprise AI companies in the market -- even if it rarely receives the same attention as the industry's biggest names.

© Sundry Photography / iStock Editorial via Getty Images

ServiceNow (NYSE:NOW | NOW Price Prediction) grew revenue 20.88% for the full year with CEO Bill McDermott promising to build “the AI control tower for business reinvention.” Yet shares sit at $95.04, down 37.96% YTD despite Q4 cRPO growth of 25% YoY and Now Assist ACV more than doubled.

McDermott calls it “the AI-defining enterprise software company in the 21st century.” The market disagrees. Can ServiceNow reach $350 by 2027? Here is the analysis.

What’s Holding ServiceNow Back The selling has been relentless. ServiceNow is down 7.8% over the past week, 6.67% over the past month, and 51.61% over the past year.

Competition from AI-native solutions is breaking the stock. Columbia Global Technology Growth Fund flagged concerns about ServiceNow’s traditional licensing model facing headwinds from the growing adoption of AI-native solutions.

Salesforce (NYSE:CRM) faces similar pressure, signaling sector repricing rather than a NOW-specific issue. With a beta of 0.927, this reflects fundamental skepticism. Layoffs of 63 employees in San Diego contradicted McDermott’s no-layoffs pledge. Shares now trade below both the $99.24 50-day and $136.78 200-day moving averages.

Wall Street Sees 49% Upside. Our Model Sees 220% Analysts are bullish. 48 analysts cover NOW with an average target of $141.98, broken down as 9 strong buys, 34 buys, 4 holds, and 1 sell. Our base case for June 2027 is $304.97, implying 220.89% upside with 90% confidence.

Bull case: $322.99. Bear case: $235.41. Analysts appear anchored to post-correction prices and underestimate the earnings ramp. With 90% bullish analyst sentiment and forward EPS materially higher than today’s run-rate, consensus looks conservative.

The Path to $350 Per Share Reaching $350 from $95.04 requires a gain of 268.3%.

With forward EPS of $17.28, a $350 price implies a forward P/E of 20x. Our base case of $304.97 implies 7x, so the bold target requires roughly 13x additional multiple expansion against forward earnings.

Three factors support that expansion. First, the 1.184 247Factor adjustment reflects a 1.15x tech sector multiplier and 90% bullish analyst consensus. Second, Now Assist’s 2026 target was raised from $1 billion to $1.5 billion, with deals containing 3+ Now Assist products growing nearly 70% YoY.

Third, McDermott told investors “there’s a perfect correlation between enterprise AI from any source and ServiceNow’s expansion.” If half proves true, the multiple closes the gap. Primary risk: consumption-based AI-native rivals erode seat-based pricing before Now Assist scales.

ServiceNow’s Current Valuation vs Earnings Power NOW trades at a forward P/E of around 6x using our model or 23x on Alpha Vantage consensus. Both look cheap for a business guiding 20.5% to 21% subscription growth and a 32% operating margin.

The stock sits between its $211.48 52-week high and $81.24 low, much closer to the floor. The 10-year return is still 554.55%. The compounding is real, despite the ugly past year.

Is $350 Realistic? $350 requires a 268.3% gain from $95.04. That is a stretch, not a layup, even with our 220% base case.

For it to happen, Now Assist must keep doubling, Armis must deliver promised security cross-sell, and software multiples must recover as rate-cut momentum returns. A renewed decline in enterprise software multiples would derail it. We’ve outlined the blueprint for how ServiceNow could reach $350 in 2027.

Certified identity verification on the ServiceNow AI Platform enables IT support agents to verify the person behind any ServiceNow request before handling sensitive actions.

SEATTLE--(BUSINESS WIRE)--Nametag, the workforce identity assurance platform, today announced a deepened integration with ServiceNow, the AI control tower for business reinvention. As a ServiceNow Build Partner, the integration embeds Nametag's identity assurance engine directly into ServiceNow IT Service Management (ITSM), giving service desk agents the ability to confirm who they are helping before acting on requests like password resets, MFA changes, and account unlocks.

Enterprise service desks have become a primary target for impersonation attacks. In 2025, social engineering attacks against two UK retailers cost an estimated $600 million after attackers impersonated employees to trick helpdesk agents into resetting credentials for privileged accounts. According to Verizon’s 2025 Data Breach Investigations Report, 80% of breaches begin with identity compromise. The pattern is clear. Attackers bypass technical controls by targeting the human process at the helpdesk.

"As we enter a new era defined by intelligent systems, cybersecurity and resilience must be embedded into every layer of the business," said Alix Douglas, group vice president, Partner Solutions at ServiceNow. "Nametag's certified integration with ServiceNow, built on the ServiceNow AI Platform, empowers customers to verify the person behind every request before performing sensitive actions—helping reduce impersonation risk, strengthen auditability, and protect critical services at scale. Together, we're helping organizations build secure, scalable digital foundations that support long-term innovation."

With the integration, agents initiate a verification request from inside a ServiceNow record, share a secure link with the person requesting help, and see a pass or fail result in real time without leaving ServiceNow. Users verify their identity on their mobile device in under 30 seconds. The integration requires no workflow redesign and no new system for agents to learn. It installs and configures in minutes from the ServiceNow Store.

"Service desk teams often have to make high-stakes identity decisions under pressure, relying on manual processes and human judgment. Embedding Nametag directly into ServiceNow makes identity verification part of the support workflow. This removes guesswork, protects against impersonation, and creates a clear audit trail before actions like password and MFA resets are taken," said Richard Biever, Senior Director, Information Security at ElevateBio.

The expanded integration adds ServiceNow Interaction Management to existing incident coverage, doubling Nametag's footprint within the platform. Interactions are the system of record for chat, walk-up, phone, and virtual agent traffic, allowing identity to be confirmed at the point of contact, not just after a ticket is opened. As a result, agents no longer have to begin working a request before confirming who they are helping.

Nametag's 2026 Workforce Impersonation Report identifies helpdesk social engineering as one of six workforce impersonation trends shaping enterprise security in 2026. AI-generated voice cloning, real-time deepfake video, and pretexting scripts built from scraped employee data have fundamentally changed the threat profile at the service desk.

Agents are being asked to make high-stakes identity decisions against adversaries specifically trained to defeat human judgment. No amount of agent training closes that gap. Only verified identity does.

"The helpdesk has become the front door for impersonation attacks. Attackers don’t need to defeat technical controls. They call the service desk, impersonate an employee, and convince an agent to reset credentials. Every day, agents process password resets and MFA changes for people they cannot verify. That is the gap attackers exploit. This integration puts a verified identity decision, pass or fail, directly inside the ServiceNow AI Platform that agents already use," said Nametag CEO Aaron Painter.

Nametag maintains SOC 2 Type II certification and supports GDPR compliance. No biometric data is stored. Retained verification photographs are subject to configurable retention policies defined by the customer.

Nametag's integration for ServiceNow is certified and available now on the ServiceNow Store. For more information or to schedule a demo, visit getnametag.com.

About Nametag

Nametag verifies the real human behind high-risk workforce actions. Where identity providers verify accounts, Nametag verifies the person, delivering clear, defensible identity decisions with built-in privacy controls and managed resolution when edge cases arise. Trusted by leading enterprises worldwide, Nametag helps organizations verify identity across hiring and onboarding, helpdesk and account recovery, and high-risk agentic AI approval workflows. For more information, visit getnametag.com.

ServiceNow, the ServiceNow logo, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries.

Discover which AI productivity platform could redefine enterprise software today.

Key Takeaways NOW partnered with Inspira to deploy AI Control Tower across more than 50 AI agents.ServiceNow expanded its IBM alliance to enhance enterprise data management for AI workloads.ServiceNow's partnerships support AI governance and enterprise data readiness initiatives. ServiceNow (NOW - Free Report) is using strategic partnerships to strengthen key parts of its AI strategy, such as AI governance and enterprise data management. The company recently announced partnerships with Inspira Enterprise and IBM that support these efforts. Both partnerships address common problems that companies face when deploying AI, including managing AI agents, governing AI usage and preparing enterprise data for AI applications.

Inspira Enterprise has collaborated with ServiceNow to deploy AI Control Tower as the governance platform for its AI operations. The deployment includes more than 50 AI agents across identity and access management, threat and vulnerability management, cyber defense, risk management and internal business operations. The partnership makes Inspira a delivery partner for AI Control Tower, Veza and Armis solutions, helping ServiceNow expand its implementation capabilities across AI governance, identity security and asset intelligence projects.

ServiceNow also expanded its partnership with IBM to help enterprises modernize legacy applications and make enterprise data usable for AI workloads. The partnership combines IBM's AI, automation and data technologies with ServiceNow's AI Platform. IBM's watsonx.data capabilities should extend ServiceNow's Workflow Data Fabric, adding data quality, observability and master data management capabilities.

These partnerships support products that ServiceNow identified as important growth areas. During the first quarter of 2026, management said AI Control Tower’s average deal sizes more than doubled sequentially, while Workflow Data Fabric remained a key part of its AI strategy. The above-mentioned factors show how the Inspira and IBM partnerships support ServiceNow's efforts to drive adoption of its AI platform and related products.

The Zacks Consensus Estimate for ServiceNow's 2026 and 2027 revenues indicates year-over-year growth of 21.9% and 18.1%, respectively.

ServiceNow Faces Stiff CompetitionServiceNow is facing stiff competition from the likes of Salesforce (CRM - Free Report) and Atlassian (TEAM - Free Report) .

Salesforce competes with ServiceNow through its offerings such as Agentforce, Data Cloud and Slack, through which it creates a unified ecosystem and connects customer data with integrated AI across systems, apps and devices. In the first quarter of fiscal 2027, Agentforce’s annual recurring revenues (ARR) surpassed $1 billion, up in triple digits year over year. Salesforce expects this momentum to continue in fiscal 2027, on the back of robust customer demand for its agentic offerings.

Atlassian competes with ServiceNow through its suite of cloud-based software solutions, such as Jira, Rovo and Teamwork Graph, which help organizations collaborate and manage their workforce. In the third quarter of fiscal 2026, Atlassian continued to add millions of monthly active users to Rovo, while strong customer engagement across Jira helped the company's cloud business grow 29% on a year-over-year basis.

NOW’s Share Price Performance, Valuation & EstimatesServiceNow shares have plunged 39.3% year to date compared with the Zacks Computers - IT Services industry’s decline of 26%.

NOW’s YTD Price Performance
Image Source: Zacks Investment Research

ServiceNow stock is overvalued, with a forward 12-month price/earnings (P/E) of 20.48X compared with the industry’s 16.71X. NOW has a Value Score of D.

NOW Forward 12 Months (P/E) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ServiceNow’s 2026 earnings is pegged at $4.13 per share, revised down by a cent over the past 30 days. The figure indicates a 17.7% increase year over year.

Image Source: Zacks Investment Research

ServiceNow stock currently carries a Zacks Rank #4 (Sell).

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

NEW YORK, June 17, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.

If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.

Key Details of the Intuit ($INTU) Class Action Investigation:

Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rights
Why is Intuit Being Investigated for Securities Fraud?

Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.

During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”

In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.

Why did Intuit’s Stock Drop?

On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”

This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.

Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.

What Can You Do?

If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/intuit-class-action-lawsuit

Or contact:

Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.” 

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/intuit-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

Key Takeaways Intuit's Credit Karma revenues rose 15% to $631M in Q3 fiscal 2026, led by loans and insurance.INTU expects Credit Karma revenues to grow about 19% in fiscal 2026 amid strong product demand.Intuit sees 30% higher revenue per user with TurboTax and Credit Karma, boosting engagement. Intuit Inc.’s (INTU - Free Report) Credit Karma is a personal finance solution that helps customers make smarter money decisions through a gamut of financial products aligned with their financial goals. It offers personalized recommendations for credit cards, home loans, auto loans, personal loans and insurance, plus access to credit scores/reports, credit and identity monitoring, credit report dispute tools, credit-building tools, rewards optimization and connected-account features for net-worth tracking.

Credit Karma generates revenues primarily through partner-driven transactions. These include cost-per-action revenues when users complete actions like obtaining a credit card, funding a personal loan, and cost-per-click or cost-per-lead revenues from mortgage and insurance advertising and lead generation.

The platform continues to post solid growth. In the third quarter of fiscal 2026, Credit Karma revenues rose 15% year over year to $631 million, driven by strength in personal loans, auto insurance and home loans. Management expects the same to grow approximately 19% in fiscal 2026.

Credit Karma is becoming increasingly important to Intuit’s strategy of building a year-round consumer finance platform. Management noted that average revenue per user is about 30% higher for customers who use both TurboTax and Credit Karma than for those using TurboTax alone. The platform is also helping boost engagement, contributing to a 54% increase in tax filers who begin their filing experience through Credit Karma.

While Credit Karma remains sensitive to macroeconomic conditions, interest rates and consumers’ ability to qualify for financial products, its strong growth, cross-selling opportunities and expanding role within Intuit make it a key strategic asset.

What Intuit’s Competitors Are OfferingNerdWallet (NRDS - Free Report) operates as a personal-finance marketplace and content platform. It attracts users through financial education, comparison tools and product reviews, then recommends credit cards, loans, mortgages, insurance and banking products. It earns revenues mainly when users click, apply or are approved for partner products.

LendingTree (TREE - Free Report) operates through three segments: Home (11.9% of revenues), offering mortgage, refinance and home-equity products; Consumer (20.3%), covering credit cards, personal, student, auto and small-business loans; and Insurance (67.8%), providing insurance quotes and agency policy sales.

INTU’s Price Performance, Valuation and EstimatesShares of Intuit have fallen 40.9% over the past three months, underperforming both the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.12X, which is at a discount to the industry average of 6.39X.

Image Source: Zacks Investment Research

Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward 2.5% to $23.79 over the past month. The consensus estimate for 2026 calls for 18.1% growth year over year.

Image Source: Zacks Investment Research

Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Diane King Hall discusses this morning's top moving stocks, starting with Accenture (ACN) opening at a nine-year low after earnings. She also points at Kroger (KR) falling to a 52-week low after missing multiple earnings metrics, and Intuit's (INTU) downgrade and price target cut by Stifel that cratered shares this morning.

It has been about a month since the last earnings report for Intuit (INTU - Free Report) . Shares have lost about 13.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Intuit due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Intuit Inc. before we dive into how investors and analysts have reacted as of late.

Intuit's Q3 Earnings Beat on Consumer Growth & Higher GuidanceIntuit delivered third-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $12.80, topping the Zacks Consensus Estimate of $12.48 by 2.56%. The bottom line jumped from $11.65 a year ago. Revenues totaled $8.56 billion, rising 10.4% year over year, and surpassing the Zacks Consensus Estimate of $8.52 billion.

The quarter reflected continued momentum across the platform. A notable highlight was QuickBooks Online Accounting revenues, which grew 22% in the quarter, supported by higher effective prices, customer growth and mix shift.

Results Show Solid Scale Across the PlatformIntuit’s third-quarter revenues underscore its ability to compound growth across both consumer and small-business ecosystems. Service revenues remained the primary contributor at $7.76 billion, rising 11.3% year over year, while product and other revenues totaled $799 million, up $16 million. Profitability also moved higher in dollars, even as margins tightened modestly. Non-GAAP operating income rose 8% year over year to $4.68 billion. The mix of higher operating spending alongside expanding revenues framed the quarter’s earnings profile.

Consumer Segment Stays Firm Through Tax SeasonIntuit’s Consumer segment generated $5.27 billion of revenues, up 7.5% year over year, reflecting strength across core tax and adjacent money offerings. TurboTax revenues increased 7% to $4.36 billion, while Credit Karma revenue climbed 14.9% to $631 million. ProTax revenues were $278 million, flat year over year.

Drivers within the quarter were mixed but constructive. TurboTax benefited from growth in assisted tax and consumer money offerings, partially offset by lower revenues tied to fewer TurboTax federal units. Credit Karma’s growth was supported by higher revenues in its personal loan, credit card and insurance verticals. Segment operating income increased 6% to $4.26 billion.

Business Solutions Expand With Online and Desktop MixIntuit’s Global Business Solutions segment posted $3.29 billion of revenues, up 15.3% year over year, reflecting broad-based demand across its small- and mid-market offerings. Within the segment, Online Ecosystem revenues totaled $2.50 billion compared with $2.10 billion a year ago. The Desktop Ecosystem contributed $788 million compared with $746 million in the prior-year quarter.

The revenue mix continued to favor services. Segment service revenues increased 16.9% to $2.76 billion and product and other revenues grew 7.6% to $524 million. Operating income for Global Business Solutions rose to $2.52 billion from $2.19 billion, remaining about 77% of segment revenues and reflecting strong incremental profitability as the business scales.

Cost Base Rises on Marketing and StaffingIntuit’s expense trajectory was a key swing factor in the quarter’s margin shape. Total operating expenses increased $324 million, or 11%, outpacing the 10% revenue gain. The increase was driven by higher marketing, staffing and outside services expenses.

More specifically, marketing expense rose $92 million, staffing expense increased $77 million and outside services expense climbed $65 million. Share-based compensation also increased $30 million year over year. The quarter showed the familiar tradeoff between investing to drive growth engines and preserving near-term margin leverage.

Capital Returns Remain a Key Shareholder LeverIntuit paired operational momentum with continued capital returns. As of April 30, 2026, the company reported $6.8 billion in total cash and investments and $6.2 billion in debt. In the third quarter, it repurchased $1.6 billion of stock and received board approval for a new $8 billion repurchase authorization.

Shareholder returns also included a higher dividend. The board approved a quarterly dividend of $1.20 per share, payable July 17, 2026, representing a 15% increase year over year. Combined with ongoing buybacks, the quarter reinforced management’s focus on balancing investment in growth initiatives with disciplined capital allocation.

Lifts Full-Year Targets and Outlines Workforce PlanIntuit raised its outlook for fiscal 2026, signaling confidence in the operating cadence heading into the final quarter. The company now expects revenues of $21.341 billion to $21.374 billion, representing growth of approximately 13% to 14%. Non-GAAP operating income is expected in the range of $8.784 billion to $8.804 billion, reflecting approximately 16% growth. Earnings guidance moved higher as well. Intuit guided non-GAAP EPS in the range of $23.80 to $23.85, reflecting growth of approximately 18%.

For the fourth quarter of fiscal 2026, management expects revenue growth of approximately 11% to 12% and non-GAAP EPS of $3.56 to $3.62. The company also announced a 17% workforce reduction, with estimated restructuring charges of $300 million to $340 million, largely recognized in the fourth quarter of fiscal 2026.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 31.14% due to these changes.

VGM ScoresAt this time, Intuit has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intuit has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Intuit targets a $90B mid-market opportunity with AI-powered QuickBooks and Enterprise Suite.Intuit Enterprise Suite and QuickBooks Online Advanced revenues rose about 38% year over year.Intuit's Global Business Solutions revenues grew 15% to $3.3B; online ecosystem rose 19%. Intuit Inc. (INTU - Free Report) is making significant progress in its push into the mid-market segment, a fast-growing opportunity with an estimated total addressable market of $90 billion. Leveraging its vast data assets, AI-driven platform capabilities and expert-assisted services, the company is positioning itself as a trusted financial technology partner for larger and more complex businesses.

A key pillar of this strategy is the expansion of QuickBooks and Intuit Enterprise Suite. These solutions provide an integrated ecosystem spanning financial management, payroll, time tracking, payments, bill pay, banking, financing and accounting support. Intuit Enterprise Suite, in particular, is designed for mid-sized businesses that require advanced capabilities such as multi-entity reporting, multidimensional financial management and configurable AI-powered workflows.

The company is also enhancing its value proposition through new financing offerings, including Buy Now, Pay Later functionality within QuickBooks and the recently introduced Intuit Business Credit Card. Combined with AI-powered insights, forecasting tools and industry-specific performance metrics, these solutions help businesses improve cash flow management and make more informed decisions.

Strengthening its platform, Intuit recently launched QuickBooks Workforce, an integrated human capital management solution that enables businesses to manage payroll, workforce operations and employee needs from a single platform.

Early results indicate strong customer adoption. In the third-quarter fiscal 2026, revenues from QuickBooks Online Advanced and Intuit Enterprise Suite increased approximately 38% year over year. Global Business Solutions revenues rose 15% to $3.3 billion, while online ecosystem revenues grew 19% to $2.5 billion, underscoring rising demand for Intuit's AI-powered platform among larger and more sophisticated business customers.

As Intuit continues to expand its AI capabilities, integrated financial tools and workforce management offerings, it is well-positioned to capture a larger share of the $90 billion mid-market opportunity and drive long-term growth.

What Intuit’s Competitors Are OfferingOracle (ORCL - Free Report) , through NetSuite, is a leading competitor in the mid-market segment. NetSuite provides cloud-based ERP capabilities, including financial management, inventory, CRM, reporting and business planning, helping growing companies manage complex operations and scale efficiently.

Microsoft (MSFT - Free Report) competes with Dynamics 365 Business Central, offering finance, operations, supply chain, sales, customer management and reporting tools for mid-sized businesses. Its integration with Microsoft 365, Teams, Power BI, Azure and AI-powered Copilot makes it a compelling option for companies seeking connected workflows, automation and stronger business insights.

INTU’s Price Performance, Valuation and EstimatesShares of Intuit have fallen 16.5% over the past month, underperforming both the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.09X, which is at a discount to the industry average of 6.16X.

Image Source: Zacks Investment Research

Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward 1.9% to $23.79 over the past month. The consensus estimate for 2026 calls for 18.1% growth year over year.

Image Source: Zacks Investment Research

Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NEW YORK, June 24, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Intuit Inc. (NASDAQ:INTU) for potential securities fraud after its significant stock drop.

If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.

Key Details of the Intuit ($INTU) Class Action Investigation:

Investigation Overview: Securities fraud regarding the company’s price positioning among DIY tax filers ahead of and during the 2026 tax seasonStock Decline: May 20, 2026 – 20% Stock DropAction: Contact BFA Law to discuss your rights
Why is Intuit Being Investigated for Securities Fraud?

Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.

During the relevant period, Intuit told investors that it had been preparing for the 2026 tax season “a couple of years ago” and that the company understood what worked in 2025, which was “being at the lowest price compared to alternatives.” Intuit also stated that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”

In truth, it appears that the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.

Why did Intuit’s Stock Drop?

On May 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price,” and revealed that the company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”

This news caused the price of Intuit stock to decline $76.86 per share, or 20%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.

Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.

What Can You Do?

If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/intuit-class-action-lawsuit

Or contact:

Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.” 

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/intuit-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

Key Takeaways Lockheed Martin supports TPY-4 and SPY-7 radar programs for air surveillance and missile defense.Radar systems are integrated with LMT's broader command-and-control and defense capabilities.LMT supports the Aegis Combat System across sea- and land-based missile defense operations. Lockheed Martin Corporation (LMT - Free Report) continues to fortify its position in advanced radar and sensor technologies through a broad portfolio that supports air defense, missile defense and multi-domain military operations. Radar systems remain an important part of the company’s Rotary and Mission Systems business, which develops and supports sea- and land-based missile defense systems, radar platforms, combat systems and mission solutions for U.S. and international customers.

A key advantage of Lockheed Martin’s radar business is its presence across multiple mission areas. The company supports programs such as the TPY-4 radar, designed to provide long-range air surveillance capabilities, and the SPY-7 radar, which aids integrated air and missile defense missions. These systems help military customers detect, track and respond to evolving airborne and missile threats while supporting broader command-and-control networks.

Radar technologies also complement several of Lockheed Martin’s major defense programs. Through its integrated warfare systems and sensors portfolio, the company supports the Aegis Combat System, which serves as a sea- and land-based element of missile defense operations. The combination of radar, command-and-control and missile defense capabilities allows Lockheed Martin to participate across multiple layers of modern defense architectures.

As defense customers continue modernizing air and missile defense networks, demand for advanced sensing and tracking capabilities remains an important growth driver. Lockheed Martin’s broad radar portfolio and long-standing position in integrated defense systems could support future opportunities across domestic and international markets.

Companies Expanding Advanced Radar CapabilitiesA growing focus on air surveillance, missile defense and integrated battlefield awareness continues driving investments in advanced radar technologies. Companies like RTX Corporation (RTX - Free Report) and Northrop Grumman Corporation (NOC - Free Report) are also expanding capabilities in this area.

RTX, through its Raytheon business, develops advanced radar systems, including the SPY-6, LTAMDS and AN/TPY-2 radars. These assist air and missile defense missions across land, sea and space domains.

Northrop Grumman develops advanced radar solutions. These include the AN/TPS-80 Ground/Air Task Oriented Radar and E-2D Advanced Hawkeye radar systems, which support air surveillance, target tracking and integrated defense operations.

Earnings Estimates for LMTThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 29.24% and 7.76%, respectively.

Image Source: Zacks Investment Research

LMT Stock Trading at a DiscountLMT is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.54X compared with the industry average of 2.61X.

Image Source: Zacks Investment Research

LMT Stock Price PerformanceOver the past year, LMT shares have rallied 14.4% compared with the industry’s 5.9% growth.

Image Source: Zacks Investment Research

LMT’s Zacks RankLMT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Lockheed Martin (NYSE: LMT) in Marietta, Georgia, marked its 75th anniversary as a U.S. Center for Manufacturing Excellence June 17, showcasing cutting‑edge technology and innovation that will sustain the facility's mission of delivering solutions for the nation and its allies for generations to come.

Trish Pagan, vice president of Lockheed Martin's Air Mobility and Maritime Missions and general manager Marietta site, addresses guests celebrating the 75th anniversary of Lockheed Martin's Marietta manufacturing facility. In the background, Lockheed Martin employees line up to see the iconic C-130J Hercules and 5th Generation Fighter F-22 Raptor, both made in Marietta. "For 75 years, our team at Marietta has evolved to meet the needs of our customers, nation, and a changing world, pioneering airpower solutions that strengthen global security," said O.J. Sanchez, Lockheed Martin Aeronautics president. "We honor a legacy built on excellence, commitment, community and innovation while looking toward the next 75 years of developing and delivering capabilities that matter."

Lockheed Martin's Marietta site and its C-130 production line hold the distinction and world record for the longest continuously running military aircraft production line in history. While the C-130 has been foundational to the site's success for decades, the site's influence and impact continues to grow, to include involvement in Skunk Works projects.

"For 75 years, Lockheed Martin has helped strengthen our nation's security and Georgia's economy, and today's announcement of 1,200 new Marietta-based jobs is another milestone in that enduring partnership," said Gov. Brian Kemp, keynote speaker at the ceremony, and joined by family. "These new jobs are creating meaningful careers for hardworking Georgians while supporting production of world-class aircraft like the C-130J Super Hercules and F-35 Lightning II, equipping America's service members and our allies with next-generation capabilities."

U.S. Rep. Barry Loudermilk also addressed present and former employees of the site on a stage flanked by static displays of iconic aircraft proudly made in Marietta, including the first fifth-generation fighter, the F-22 Raptor, and the C-130J Super Hercules.

A well-established global defense contractor, Lockheed Martin generated $4.5B in economic impact for the state in 2025 and employs 5,600 people. The Marietta site serves as a global hub that offers production, sustainment, and a resilient supply chain for U.S. and international customers. At the same time, the facility provides an anchor for the U.S. and state of Georgia economy and workforce.

"Lockheed Martin is a beacon of American ingenuity that fuels our national defense and strengthens the capabilities of our allies," said Loudermilk, who spoke at the event. "As we celebrate 75 years of excellence, we reaffirm our commitment to sustaining this world-class business for future generations."

While the ceremony and milestone highlighted past missions, Lockheed Martin's future remained in focus. Today, the site remains at the forefront of aerospace manufacturing, producing the "Built to Deliver. Built to Last.™" C-130J and center wing assembly for the world's most advanced fighter, the F-35. Ongoing and future work associated with Skunk Works®, were noted as important to future plans for the Marietta site. An expedition hall showcased the future, to include a model of Lockheed Martin Vectis™, a survivable and flexible collaborative combat aircraft.

"In Georgia, innovation does not replace legacy—it builds upon it," said Trish Pagan, vice president of Air Mobility and Maritime Missions and general manager Marietta site. "The C-130's origin story was born of Skunk Works ingenuity and the Marietta site's destiny and growth will be informed by innovation. Our legacy is defined by our ability to evolve, meeting the changing demands of our customers and the security challenges of each generation. We will remain at the forefront of delivering the next generation of capabilities while building on a foundation of proven performance."

In addition to its global business impact, Lockheed Martin employees donate 21,000 volunteer hours to the community and provide charitable donations to several organizations in the metro-Atlanta area. Lockheed Martin also partners with several technical colleges and universities to help create the workforce of the future through internships, apprenticeships and highly regarded STEM initiatives.

"As we celebrate 75 years, we do so with pride in our history and a clear vision for our future," Pagan said. "The Lockheed Martin story in Marietta is a story of growth, innovation, and adaptability. Whether it is locally or worldwide, we take pride in delivering and evolving our products and services, and remaining on the leading edge."

For more information on Lockheed Martin's Marietta history, mission or a virtual plant tour, visit here:  https://www.lockheedmartin.com/en-us/who-we-are/business-areas/aeronautics/marietta-media-kit.html

About Lockheed Martin 
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.

SOURCE Lockheed Martin Aeronautics

Lockheed Martin (LMT +2.04%) stock fell 4.2% through 11:30 a.m. ET Thursday -- and it's no mystery why.

President Trump announced yesterday that the U.S. and Iran have signed an "interim agreement" to end their conflict. While it may be hard to answer the age-old question "war, huh, what is it good for?," investors today seem to think ending the Iran war will be bad news for Lockheed Martin stock.

Image source: Lockheed Martin.

Details on the agreement Details are in flux, and the interim agreement may not resolve much, as it merely starts a 60-day period of more intense negotiations surrounding the status of the Strait of Hormuz and the fate of Iran's nuclear weapons program. Still, the broad outlines look like this:

The U.S. naval blockade on Iran will end. Iran may resume foreign sales of oil. Other countries' ships have 60 days' free passage through the Strait of Hormuz. S. sanctions on Iran will lift. Previously frozen Iranian bank accounts will unfreeze. And Iran will set up a $300 billion reconstruction fund. Not much of this is immediately relevant to Lockheed Martin stock, but knowing the details is important for context, so investors can gauge the chances that both sides will believe they're getting enough out of this peace deal for it to hold together permanently.

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What this means for Lockheed Martin stock So, how is the peace deal relevant to Lockheed investors? Well, if peace holds and fighting doesn't resume, this might depress demand for new weapons from Lockheed. There is still the matter of replacing other weapons already used and restocking U.S. arsenals, however, and this is already yielding billions of dollars in sales for Lockheed.

If you ask me, this peace deal won't be as bad news for Lockheed as investors seem to think.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

On June 18, 2026, Lockheed Martin Corp (LMT) shares fell by 4.0% to a current price of $510.95. This decline is notable within the context of the stock's 52-wee

Choosing between the world's largest defense contractors involves weighing steady government contracts against commercial aerospace recovery. You must decide whether Lockheed Martin (LMT +2.04%) or RTX (RTX +2.55%) offers better value today.

Lockheed Martin remains a premier choice for pure-play defense exposure, while RTX provides a more diversified mix of military and commercial aerospace technologies. Both companies are navigating a complex landscape of shifting geopolitical priorities and supply chain hurdles in 2026.

The case for Lockheed MartinLockheed Martin designs defense technologies across aeronautics, missiles, and space. It serves as a massive player among defense stocks, with a portfolio serving the U.S. Department of Defense and other federal agencies. The U.S. government accounted for nearly 72% of 2025 sales, and customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached approximately $75.1 billion, representing growth of 5.7% over the previous year. This resulted in net income of just over $5 billion. The F-35 program remains the primary revenue driver, contributing nearly 27% of total sales and supporting international partnerships.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 3.2x. This ratio measures total debt relative to shareholders’ equity, indicating how much a company relies on borrowed money. Free cash flow reached $6.9 billion in the year. The current ratio, which compares assets to upcoming bills, is nearly 2.8x.

The case for RTX Corp.RTX operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. It serves both commercial and government aviation markets, providing parts for manufacturers like Airbus and Boeing Co (BA 1.87%). This diversification makes it a unique player because it is less reliant on any single government program compared to its peers.

For FY 2025, revenue reached $88.6 billion, representing approximately 9.8% growth over the prior year. This helped the company generate net income of roughly $6.7 billion. International customers accounted for close to 47% of 2025 net sales, demonstrating global reach beyond domestic borders.

The December 2025 balance sheet showed a debt-to-equity ratio of approximately 0.6x, about the same ratio as today, indicating a balance between short-term assets and liabilities. Free cash flow for 2025 was $7.94 billion, representing the cash a company generates after covering its operating costs and capital expenditures.

Risk profile comparisonLockheed Martin is highly sensitive to U.S. government budget priorities, which can shift with political cycles. The company is also managing litigation risks, including a $4.25 billion lawsuit by SDR Group over hybrid airship business models. Additionally, the F-35 program carries ongoing risks related to cost overruns and technical performance schedules.

RTX is navigating global supply chain constraints and labor shortages, which are increasing costs and hindering production. The company is also subject to regulatory monitoring under agreements with the DOJ and SEC regarding pricing and anti-bribery compliance. Furthermore, the powder metal matter, a manufacturing defect, requires accelerated inspections for specific engine models through 2026, which impacts its Pratt & Whitney segment.

Valuation comparisonLockheed Martin currently trades at a significantly lower earnings multiple than RTX, though it offers a slightly lower net margin.

MetricLockheed MartinRTXSector BenchmarkForward P/E17x26.7x31.6xP/S ratio1.6x2.8xSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Lockheed Martin Corp is a core company in the middle of one of the biggest priorities in the U.S.: aerospace and defense. In particular, the F-35 fighter program remains a pillar of Lockheed’s business, with the Defense Department planning to continue to buy the jet into the 2040s. Having more than a quarter of revenue essentially guaranteed for 15 years or more is unheard of and quite appealing to a long-term investor.

RTX Corp benefits, too, from the U.S. focus on its military, which should provide a steady stream of business for the foreseeable future. However, RTX is still much more an amalgamation of parts than Lockheed. RTX consists of various vendors, such as engine maker Pratt & Whitney and Collins Aerospace. RTX was formed through the merger of Raytheon and United Technologies in 2020, so while the company has been executing well, there is still some work to be done in integrating the massive businesses.

That said, RTX is expected to be the fastest-growing of the two businesses this year, with revenue advancing about 6% to $90.1 billion, while Lockheed Martin’s sales are anticipated to grow about 5% to $79.1 billion.

Under the theory of buy good companies at good prices, Lockheed Martin gets the nod here. LMT is cheaper by the forward price-to-earnings and the forward price-to-sales ratios.

Key Takeaways Defense contractors reported record backlogs as global military demand and orders accelerated.Lockheed Martin, GE Aerospace, and Boeing cited strong order growth and contracts.ETFs like IDEF offer diversified exposure to firms benefiting from rising defense spending. The global geopolitical landscape is fracturing at a rapid pace. From the ongoing Russia-Ukraine war to heightened cross-border hostility in regions like Pakistan-Afghanistan, and most recently, intensified attacks on Lebanon and escalating Iran-U.S. tensions, the world order is increasingly being shaped by hostile conflict. 

This turbulent backdrop has triggered a fundamental shift in defense priorities worldwide, with nations rushing to bolster their military capabilities like never before.

Amid this environment, as governments across the globe are signing multi-year, multi-billion-dollar contracts for advanced weaponry and aerospace systems, defense primes like Lockheed Martin (LMT - Free Report) and BAE Systems (BAESY - Free Report) are seeing their order books swell to historic levels. 

For investors, these robust backlogs are not just numbers — they indicate solid future revenue growth and profitability, setting the stage for a strong case to increase their exposure to exchange-traded funds (ETFs) holding these defense contractors. The convergence of rising geopolitical risks and robust corporate order books makes this a pivotal moment to consider investing in defense stocks.

But before we dive into the specific ETFs, let's first justify our thesis with empirical evidence. Understanding the sheer scale of this industry’s current order book as well as its growth prospects is essential to making an informed investment decision.

The Unprecedented Boom in Defense Order BacklogsOver the past year, the defense industry has seen an extraordinary accumulation of unfulfilled orders. Government defense spending is inherently cyclical and operates on a multi-year lag; a budget authorized today translates to contracts and revenues recognized years down the line. As a result, the primary financial indicator to watch right now is not immediate shipments, but the corporate backlog.

Major defense contractors have been posting figures that reflect this trend, underscoring the massive accumulation of demand.

For instance, Lockheed Martin, the world’s largest defense contractor, witnessed its first-quarter 2026 backlog rise 7.7% to a robust $186.4 billion, driven by strong customer demand for its combat-proven weapons. 

The company has signed several framework agreements with the U.S. government in the first quarter to accelerate and scale munitions production, including advanced Patriot Missile, THAAD, and PrSM. To this end, LMT’s management expects the multi-year demand commitments defined in these framework agreements to support strategic investments in defense production infrastructure, while also enabling the company to increase production rates of these critical systems to three to four times the current levels.

Backlog of RTX Corp. (RTX - Free Report) , a well-known missile and radar manufacturer worldwide, came at a record $271 billion at the end of March 2026, out of which defense backlog amounted to $109 billion, representing year-over-year growth of 18.5%. The company is currently investing heavily to increase production of its critical munitions, including Tomahawk, AMRAAM, and Standard Missile family, over the next decade, to meet growing demand. 

BAE Systems, a technology-led defence, aerospace and security solutions provider, recorded a backlog worth approximately $110.4 billion by 2025-end, which improved 7.5% from the prior-year level. This strong backlog growth was driven by notable order intakes like the $6.6 billion worth of Maritime orders for the company’s Submarines business, the next major phase of Canada’s River Class destroyer program, and Australia’s Hobart Class combat system upgrade, along with a $6 billion order from Türkiye for 20 Typhoon aircraft and weapons. 

GE Aerospace (GE - Free Report) , a major provider of military jet engines, clinched orders worth $6.2 billion in the first quarter of 2026. The figure jumped 67% year over year, as governments across the globe continued to focus on modernizing and scaling their forces, thereby driving demand for the company’s products and services. Notable orders in the first quarter included a contract to supply T408-GE-400 engines for the U.S. Marine Corps' Sikorsky CH-53K King Stallion helicopter and another award from Turkish Aerospace Industries to continue integrating GE’s F404 engine into Türkiye's jet trainer Hurjet. 

Boeing (BA - Free Report) , renowned for both its passenger aircraft and defense equipment, recorded a backlog worth $85.8 billion in the first quarter of 2026, reflecting a 39% year-over-year surge.  BA signed a seven-year defense framework agreement to expand PAC-3 Seeker production and announced a strategic partnership with Rheinmetall to offer the MQ-28 Ghost Bat to Germany during the first quarter.

Defense ETFs to BuyAs per a report from the United Nations, global military spending could reach $4.7-$6.6 trillion by 2035, with the higher end of the projection, if achieved, being nearly five times the level at the end of the Cold War. 

This unprecedented military spending surge, further corroborated by the massive influx of long-term orders, as mentioned above, provides unparalleled revenue growth visibility for defense contractors. Higher order book volume gives these defense contractors the stability required to scale up operations, maximize manufacturing efficiencies, and continuously expand their profitability margins over the next decade as they convert their backlogs into successful deliveries.

However, picking individual winners can be risky, considering single-stock operational risks, such as supply-chain bottlenecks or individual program delays. Instead, investors can gain exposure to this multi-year trend through the following Defense ETFs. 

iShares U.S. Aerospace & Defense ETF (ITA - Free Report)

This fund, with net assets worth $14.21 billion, offers exposure to 49 U.S. aerospace and defense companies, including manufacturers of commercial and military aircraft. GE holds the first spot in this fund, with 21.91% weightage, while RTX holds the second spot with 14.68% weightage. BA holds 9.27% of shares in this fund, clinching the third spot, while LMT enjoys the seventh spot, holding 4.11% of shares. 

ITA has surged 30.6% over the past year and charges 38 basis points (bps) as fees. It traded at a volume of 0.92 million shares in the last trading session. 

Invesco Aerospace & Defense ETF (PPA - Free Report)

This fund, with a market value worth $8.26 billion, offers exposure to 61 companies involved in the development, manufacturing, operations and support of US defense, homeland security and aerospace operations. GE holds the first spot in this fund, with 9.25% weightage, while BA holds the second spot with 8.47% weightage. RTX holds 7.19% of shares in this fund, clinching the third spot, while LMT enjoys the fourth spot, holding 6.1% of shares. 

PPA has soared 28.1% over the past year and charges 58 as fees. It traded at a volume of 0.17 million shares in the last trading session. 

iShares Defense Industrials Active ETF (IDEF - Free Report)

This fund, with net assets worth $4.08 billion, offers exposure to 114 companies that are well-positioned to benefit from global defense and security spending. RTX holds the first spot in this fund, with 8.05% weightage, while LMT holds the second spot with 6.76% weightage. BA holds 5.04% of shares in this fund, clinching the fourth spot, while BAESY enjoys the ninth spot, holding 2.68% of shares. 

IDEF has rallied 18.7% over the past year and charges 55 bps as fees. It traded at a volume of 1 million shares in the last trading session.  

The collaboration integrates Sentrycs' precise cyber-based detect-to-defeat capabilities to Lockheed Martin's Sanctum™ advanced modular defense architecture to enhance protection against evolving aerial threats

WEST PALM BEACH, FL / ACCESS Newswire / June 23, 2026 / Ondas Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies, today announced a collaboration between its subsidiary, Sentrycs, a leader in counter-drone (C-UAS) technology based on Cyber-over-RF, and Lockheed Martin (LMT), a leading global defense and aerospace company.

Under the collaboration, Sentrycs' Cyber-over-RF technology will be integrated into Sanctum, Lockheed Martin's next-generation Counter-UAS (C-UAS) solution to protect military forces, homeland security, and critical assets against evolving unmanned aerial threats.

Sanctum tackles complex drone threats, including coordinated swarms and rapidly evolving UAS tactics. It combines advanced artificial intelligence, cloud-enabled data fusion, and a modular defense architecture to detect, track, analyze, and neutralize aerial threats in real time. Built for interoperability and mission flexibility, Sanctum integrates multiple sensors, effectors, and command-and-control systems into a unified operational framework, enabling scalable protection across a wide range of defense environments.

Under the collaboration, Sentrycs' solution will add a precise cyber-based detection and mitigation layer to Sanctum's multi-domain architecture.

Operating directly at the communication protocol layer, Sentrycs' Cyber-over-RF technology enables operators to detect, identify, track, and take control of unauthorized drones without jamming, spoofing, kinetic engagement, or collateral interference with surrounding communications and infrastructure. This highly targeted mitigation capability, which enables operators to take control of unauthorized drones and guide them to a safe landing without causing collateral damage or interfering with surrounding systems, strengthens the layered response options available to operators while supporting safe, controlled, and mission-adaptable counter-drone operations.

"Sanctum is a modular, open Counter-UAS architecture capable of rapidly integrating advanced sensing and mitigation technologies," said Matt Bahnemann, Senior Manager Program Management at Lockheed Martin. "Integrating Sentrycs' Cyber-over-RF capability expands the layered sensing and response options available to operators and further strengthens Sanctum's ability to address evolving unmanned aerial threats."

"Modern defense against unmanned aerial threats requires integrated, layered solutions that combine advanced detection, rapid decision-making, and precise mitigation capabilities," said Eric Brock, Chairman and CEO of Ondas Holdings Inc. "We are proud to collaborate with Lockheed Martin, a global leader in defense technology, to integrate Sentrycs' Cyber-over-RF capability into Sanctum. Combining Lockheed Martin's advanced modular defense architecture with Sentrycs' precise, non-disruptive detection and mitigation technology creates a stronger and more comprehensive operational capability for addressing evolving aerial threats."

The collaboration marks another step toward more integrated and interoperable Counter-UAS architectures, as defense organizations increasingly prioritize flexible, layered solutions capable of addressing rapidly evolving unmanned aerial threats.

About Ondas Inc.

Ondas Inc. (Nasdaq:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.

For additional information on Ondas Inc., visit www.ondas.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Inc.
888-657-2377
[email protected]

Media Contact for Ondas Inc.
Escalate PR
[email protected]

Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]

SOURCE: Ondas Inc.

Key Takeaways Airbus signed a contract with Armenia for up to six H145 helicopters.EADSY's H145 features Safran engines, Helionix avionics and a high-performance autopilot system.More than 1,800 H145 helicopters are in service worldwide with over 8.5 million flight hours. Airbus SE (EADSY - Free Report) recently announced that it has signed a contract with the Republic of Armenia for the delivery of up to six H145 helicopters.

The agreement marks Armenia’s first-ever contract with Airbus Helicopters and reflects the country’s efforts to modernize its rotorcraft fleet with one of the most versatile and dependable platforms in its class.

EADSY Continues to Lead in Military Helicopter MarketMore than 140 armed forces worldwide rely on Airbus for its expertise in providing high-quality, multi-role military helicopters. These helicopters are designed to support a wide range of missions, including armed reconnaissance, utility, attack, naval, maritime and special operations.

Airbus Helicopters not only supports current military requirements but also helps shape future needs through the company’s next-generation, innovative helicopter solutions. EADSY’s military helicopter portfolio features a diverse lineup of platforms, including the H125M, H160M, H175M, H215M, H225M, Tiger, NH90 and H145M.

EADSY’s H145 is widely recognized for its strong performance, especially in high-altitude and hot-weather conditions, making it well-suited for Armenia’s varied and mountainous terrain. The five-bladed variant of the H145 offers greater payload capacity, enhanced flight comfort and a more streamlined maintenance process.

More than 1,800 helicopters from the H145 family are currently in service worldwide, collectively accumulating more than 8.5 million flight hours. Powered by two Safran Arriel 2E engines, the H145 features full-authority digital engine control and the Helionix digital avionics suite. It is also equipped with a high-performance four-axis autopilot that enhances safety while reducing pilot workload. The H145 has the lowest acoustic footprint in its class and generates lower CO2 emissions than competing helicopters.

Opportunities for Other Defense CompaniesOther defense companies that are well-positioned to benefit from growth opportunities in the military helicopter market are discussed below:

Textron Inc. (TXT - Free Report) : The company’s Bell segment provides advanced military helicopters, and offers parts and support services to the U.S. government as well as international military clients. Its combat helicopter portfolio includes the Bell 412M, Bell 429M and Bell 407M.

 TXT boasts a long-term (three to five years) earnings growth rate of 10.14%. The Zacks Consensus Estimate for 2026 sales stands at $15.56 billion, which indicates a jump of 5.2%.

Lockheed Martin Corp. (LMT - Free Report) : Its Sikorsky business unit provides military helicopters and rotary-wing aircraft to all five branches of the U.S. armed forces, as well as defense and commercial customers across more than 40 countries. Lockheed Martin’s notable rotorcraft offerings include the Armed BLACK HAWK, CH-53K, MH-60R SEAHAWK, HH-60W and S-70 BLACK HAWK.

LMT has a long-term earnings growth rate of 18.48%. The Zacks Consensus Estimate for 2026 sales stands at $79.05 billion, which suggests a rise of 5.3%.

The Boeing Company (BA - Free Report) : The company’s helicopters are recognized for providing advanced, mission-ready capabilities that support a wide range of operational requirements. Boeing’s product portfolio includes combat helicopters and rotorcraft like the H-47 Chinook, AH-64 Apache, AH-6 Little Bird and MH-139 Grey Wolf.

The Zacks Consensus Estimate for BA’s 2026 sales stands at $96.7 billion, which indicates a jump of 8.1%. The Zacks Consensus Estimate for 2026 earnings per share is pegged at a loss of 15 cents, which suggests year-over-year growth of 98.6%.

EADSY Stock Price MovementOver the past three months, Airbus shares have risen 13.4% compared with the industry’s growth of 10.5%.

Image Source: Zacks Investment Research

EADSY’s Zacks Rank

Headline-driven capital flight out of defense equities routinely engineers textbook fundamental mispricings.

When the framework for a Middle East peace agreement hit the newswires recently, algorithm-driven selling accelerated the rotation, triggering a sharp flight from defense and crude oil. The logic appears sound to a passive observer. Fewer active regional conflicts must equal reduced defense spending.

That surface-level assumption completely ignores the mechanical realities of the defense industrial base. The broader market selloff hit legacy contractors indiscriminately, dragging Lockheed Martin NYSE: LMT shares down toward below the $529 mark.

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Lockheed Martin Corporation (LMT) Price Chart for Wednesday, June, 24, 2026

Wall Street exacerbated this slide by hyper-focusing on the first-quarter earnings report, in which Lockheed Martin reported earnings per share of $6.44, below consensus estimates of $6.79.

Markets incorrectly conflated this temporary margin compression with long-term demand destruction. The current valuation of Lockheed Martin reflects what may be an overreaction to geopolitical headlines, masking a structural backlog that is less directly tied to near-term peace developments than the stock’s move may imply.

Refueling Mid-Air: A $2.8 Billion Sustainment WinLockheed Martin Today

LMT

Lockheed Martin

$504.11 +10.51 (+2.13%)

As of 06/23/2026 03:58 PM Eastern

52-Week Range$410.11▼

$692.00Dividend Yield2.74%

P/E Ratio24.41

Price Target$620.68

Military spending operates on decades-long modernization cycles, not daily news cycles.

The United States military is executing a massive, structural upgrade of its air fleet regardless of temporary geopolitical truces. Right in the middle of the sector-wide drawdown, the Department of Defense awarded Lockheed Martin two contracts totaling $2.8 billion.

The primary agreement is a $2.29 billion cost-plus-incentive-fee contract for F-35 Lightning II sustainment. In the defense sector, procurement is only the first step in the revenue cycle. Sustainment covers site activation, fleet management, and ongoing reliability improvements. The Department of Defense operates on a recurring revenue model with major contractors. Selling the initial aircraft provides a baseline margin, but decades of required maintenance, software upgrades, and parts replacements drive true long-term profitability for Lockheed Martin.

This sustainment revenue is supported by a severe readiness deficit within the United States military. A recent Government Accountability Office report revealed that F-35 full mission capability rates dropped to a concerning 25%. To arrest this decline, the Pentagon submitted a funding request for an additional $13.7 billion through 2031 to address spare part shortages and maintenance backlogs. Aircraft readiness functions completely independently of active combat deployments.

The Department of Defense also awarded the Sikorsky Aircraft subsidiary of Lockheed Martin a secondary firm-fixed-price contract worth $525 million for the development and modernization of the CH-53K heavy-lift helicopter program. These logistical upgrades highlight exactly how structural spending acts as a financial moat against sector volatility.

Cruising Altitude: Lockheed Martin's $194 Billion BacklogUnderstanding the severe disconnect between Lockheed Martin's current share price and its intrinsic value requires a close look at its underlying valuation metrics. Lockheed Martin trades at a forward price-to-earnings (P/E) ratio of nearly 18. The forward P/E ratio measures a company's current share price relative to its projected per-share earnings. Trading at an 18 multiple is highly attractive for a business generating $75.05 billion in annual sales and with a near-monopoly in fifth-generation fighter production.

A price-to-earnings-to-growth ratio of 0.98 signals that shares are priced at parity with projected growth rates. Finding a blue-chip industrial trading at a discount to its growth curve remains a rare anomaly in the current macroeconomic environment.

More importantly, Lockheed Martin has a $186 billion total backlog, which acts as a massive financial shock absorber. A backlog is a list of orders that have been received but not yet fulfilled. When Lockheed Martin's backlog exceeds its entire market capitalization of nearly $124 billion, the downside risk profile narrows significantly.

Current options chain dynamics support this technical floor, indicating a sharp contraction in implied volatility for near-term out-of-the-money puts. Institutional hedging reflects rigid support near the $525 to $530 range, effectively neutralizing downside risk for Lockheed Martin.

Safe Landings: Yield Support in a Turbulent MarketCapital rotating into Lockheed Martin during this drawdown receives immediate, tangible yield. Lockheed Martin approved a second-quarter dividend of $3.45 per share, payable on June 26, rewarding patient capital while the broader market digests the geopolitical headlines.

Lockheed Martin Stock Forecast Today12-Month Stock Price Forecast:
$620.68
23.12% Upside

Hold
Based on 21 Analyst Ratings

Current Price$504.11High Forecast$735.00Average Forecast$620.68Low Forecast$460.00Lockheed Martin Stock Forecast Details

Institutional desks clearly see the value proposition and are aggressively accumulating shares of Lockheed Martin.

Korea Investment Corp increased its position in Lockheed Martin by 17.1% during the fourth quarter. Top-tier analysts diverge sharply from the broader market's cautious sentiment.

Although the broader analyst consensus remains Hold, with an average price target of about $620.68, Susquehanna maintains a massive $700 price target, and Morgan Stanley holds firm at $653.

These targets imply healthy upside and reflect deep institutional confidence in Lockheed Martin's underlying business fundamentals.

Short sellers hold an anemic 1.15% of the free float, confirming the total absence of genuine downward institutional pressure against Lockheed Martin.

The industrial base is actually expanding capacity to meet structural demand, even as the stock market sells the defense sector on peace news. General Motors NYSE: GM is currently in talks to manufacture commonly used weapons parts for Lockheed Martin, aiming to clear persistent munitions bottlenecks driven by recent global inventory depletion.

Final Approach: A Defense Modernization PlayThe market fundamentally misprices legacy defense contractors by tying them solely to active regional conflicts. Predictable sustainment programs and structural modernization upgrades constitute a durable financial moat for Lockheed Martin. The recent $2.8 billion in targeted contract awards proves that baseline military infrastructure spending remains incredibly robust.

Investors watching the headline-driven capital flight might consider evaluating how Lockheed Martin's high-visibility Department of Defense cash flow and attractive forward multiple position it for resilient, long-term outperformance.

Should You Invest $1,000 in Lockheed Martin Right Now?Before you consider Lockheed Martin, you'll want to hear this.

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Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

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The EstÃe Lauder Companies Inc. (NYSE: EL) and Jo Malone London today announced the launch of Scent Scanner, a first-of-its-kind experience available exclusiv

June 23, 2026 09:55 ET  | Source: Real Estate Split Corp.

TORONTO, June 23, 2026 (GLOBE NEWSWIRE) -- Real Estate Split Corp. (TSX: RS and RS.PR.A) is pleased to announce that a distribution for June 2026 will be payable to Class A shareholders as follows:

Record DatePayable DateDistribution Per Equity ShareJune 30, 2026July 15, 2026$0.13
The Fund also announces the second quarter distribution of 2026 will be payable to preferred shareholders as follows:

Record DatePayable DateDistribution Per Preferred ShareJune 30, 2026July 15, 2026$0.145
The equity and preferred shares both trade on the Toronto Stock Exchange under the respective symbols RS and RS.PR.A.

For further information, please visit our website at www.middlefield.com or contact our Sales and Marketing Department at 1.888.890.1868.

This press release contains forward-looking information. The forward-looking information contained in this press release is based on historical information concerning distributions and dividends paid on the securities of issuers historically included in the portfolio of the Fund. Actual future results, including the amount of distributions paid by the Fund, may differ from the monthly distribution amount. Specifically, the income from which distributions are paid may vary significantly due to: changes in portfolio composition; changes in distributions and dividends paid by issuers of securities included in the Fund’s portfolio from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities included in the portfolio will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; the level of borrowing by the Fund; and the uncertainty of realizing capital gains. The risks, uncertainties and other factors that could influence actual results are described under “Risk Factors” in the Fund’s prospectus and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund’s current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.

Nvidia (NVDA 3.99%), the world's largest producer of data center GPUs, has been one of the biggest beneficiaries of the AI boom. The world's top AI companies use its GPUs to train their large language models (LLMs), and it locks in its customers with its proprietary software.

From fiscal 2022 to fiscal 2026 (which ended this January), Nvidia's revenue and EPS grew at CAGRs of 68% and 89%, respectively. That's why its stock surged more than 1,000% over the past five years. It's still a great long-term AI play, but another tech giant might generate even more impressive gains over the next few years as the AI market enters a new phase.

Image source: Getty Images.

What new phase is the AI market entering? Over the past few years, many AI companies have focused on training their algorithms by feeding them massive amounts of data. These training sessions, which can run for weeks to months, use large clusters of Nvidia's GPUs in data centers.

But today, inference -- or the act of using software to access that trained data -- is becoming the next big growth phase of the AI market. As hyperscalers try to reduce the high costs of running their AI models around the clock, they're shifting away from Nvidia's general-purpose GPUs toward specialized application-specific integrated circuits (ASICs).

Instead of being jacks-of-all-trades, ASICs are customized for specific tasks. At scale, these specialized chips can be more cost-efficient than Nvidia's GPUs for handling inference tasks. Therefore, Broadcom (AVGO 3.06%) -- which controls about 70% of the ASIC market -- will likely experience a major growth spurt as more AI companies ramp up their investments in inference-driven technologies.

Today's Change

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Current Price

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Why could Broadcom be an even bigger winner than Nvidia? Broadcom already produces custom ASICs for Alphabet's Google, Meta Platforms, OpenAI, and Anthropic. In fiscal 2025 (which ended last November), its AI chip sales soared 65% to $20 billion, accounting for 31% of its top line. It expects that figure to rise to $100 billion in fiscal 2027.

From fiscal 2025 to fiscal 2027, analysts expect Broadcom's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to both grow at CAGRs of about 53%. Its soaring AI chip sales should offset slower sales of non-AI chips (including wireless, mobile, data center, storage, and industrial markets) and infrastructure software (which it increased its exposure to over the past decade via several major acquisitions).

Broadcom already has an enterprise value of $1.98 trillion, but it trades at just 16 times next year's adjusted EBITDA. That low valuation will attract more investors seeking the next big AI stock -- and Broadcom could be a better play on the inference market than Nvidia.

Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.