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FedEx Freight CEO John Smith said on Monday the company's separation from FedEx will allow it to invest more aggressively in growth initiatives and better compete in the less-than-truckload shipping market.

"The things that we are going to be able to control now, especially from a capital and investment perspective, be able to put dollars into the LTL company that are LTL specific ... That's going to help us leapfrog the competitors," Smith said on CNBC's "Mad Money."

FedEx Freight began trading as an independent company Monday after being spun off from FedEx. The company is the largest less-than-truckload (LTL) carrier in North America, a market that combines shipments from multiple customers onto the same truck, allowing businesses to move freight more efficiently than paying for an entire trailer. Other competitors in the industry include Old Dominion Freight Line, ArcBest, and XPO.

Smith said the business often took a backseat while operating inside the larger transportation giant, where it generated roughly $9 billion in revenue compared with FedEx's $90 billion.

As a standalone company, however, Smith said FedEx Freight plans to invest heavily in customer-facing technology, expand its dedicated sales force, and improve profitability.

"All those things are going to level the playing field and also allow us to leapfrog, we've been working on those very hard for the year," Smith said.

The company has outlined a goal of reaching a 15% operating margin by 2029, up from roughly 12% today, though Smith suggested there could be additional upside beyond that target.

"That's not the ceiling," he said.

Trucking activity is seen as closely correlated to the broader U.S. economy, so Wall Street typically looks to companies within the industry as economic barometers. For the same reason, investors consider their stocks to be economically sensitive.

Smith expressed confidence in FedEx Freight's ability to grow even if the economy is soft, pointing to opportunities to gain market share and improve margins simultaneously.

"With our strategy, we feel like that we can grow in a down economy. That's why we feel good about our short, medium, and long-term strategy," he said.

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FedEx Freight CEO John Smith joins 'Mad Money' host Jim Cramer to talk what is next for the company after spinning off from FedEx.

FedEx Freight (NYSE:FDXF) shares traded around $152 on Tuesday afternoon after Bank of America initiated coverage of the newly independent less-than-truckload (LTL) carrier with a ‘Buy’ rating and a $185 price target.

The initiation comes one day after FedEx Freight was spun off from FedEx Corp (NYSE:FDX, XETRA:FDX), with FedEx retaining a 19.9% ownership stake.

Bank of America described FedEx Freight as the largest LTL carrier in North America, holding an estimated 16% market share and a market capitalization of roughly $28 billion.

The analysts see the company as positioned to unlock value as a standalone business through cost reductions, technology investments tailored specifically to LTL operations, and pricing improvements as it moves away from bundled shipping discounts previously tied to its parent company.

Bank of America highlighted management's medium-term targets of 4% to 6% annual revenue growth and 10% to 12% operating income growth. The firm also noted FedEx Freight's goal of increasing operating margins to approximately 15%, compared with an estimated 11% margin as a standalone company today.

The bank expects margin expansion to be a key earnings driver, projecting annual earnings growth of more than 20% between 2026 and 2028. The analysts pointed to planned productivity gains from the company's expanded salesforce and the elimination of transitional service agreement costs following the separation.

FedEx Freight operates a network of 355 terminals across North America and, according to Bank of America, offers transit times that are faster than many competitors on a significant portion of shipping lanes.

The company is also targeting growth in several end markets, including small and medium-sized businesses, healthcare, grocery distribution, and data center infrastructure. The bank’s analysts believe these segments represent opportunities to improve profitability and narrow pricing gaps with industry peers.

Bank of America's $185 price target is based on a valuation of 35 times its estimated 2027 earnings per share of $5.30.

The firm said the multiple is broadly in line with other major LTL carriers, including XPO, Old Dominion Freight Line and Saia, while reflecting FedEx Freight's potential for margin improvement and profitable growth as an independent company.

FedEx Freight (NYSE:FDXF) shares traded around $152 on Tuesday afternoon after Bank of America initiated coverage of the newly independent less-than-truckload (LTL) carrier with a ‘Buy’ rating and a $185 price target.

The initiation comes one day after FedEx Freight was spun off from FedEx Corp (NYSE:FDX, XETRA:FDX), with FedEx retaining a 19.9% ownership stake.

Bank of America described FedEx Freight as the largest LTL carrier in North America, holding an estimated 16% market share and a market capitalization of roughly $28 billion.

The analysts see the company as positioned to unlock value as a standalone business through cost reductions, technology investments tailored specifically to LTL operations, and pricing improvements as it moves away from bundled shipping discounts previously tied to its parent company.

Bank of America highlighted management's medium-term targets of 4% to 6% annual revenue growth and 10% to 12% operating income growth. The firm also noted FedEx Freight's goal of increasing operating margins to approximately 15%, compared with an estimated 11% margin as a standalone company today.

The bank expects margin expansion to be a key earnings driver, projecting annual earnings growth of more than 20% between 2026 and 2028. The analysts pointed to planned productivity gains from the company's expanded salesforce and the elimination of transitional service agreement costs following the separation.

FedEx Freight operates a network of 355 terminals across North America and, according to Bank of America, offers transit times that are faster than many competitors on a significant portion of shipping lanes.

The company is also targeting growth in several end markets, including small and medium-sized businesses, healthcare, grocery distribution, and data center infrastructure. The bank’s analysts believe these segments represent opportunities to improve profitability and narrow pricing gaps with industry peers.

Bank of America's $185 price target is based on a valuation of 35 times its estimated 2027 earnings per share of $5.30.

The firm said the multiple is broadly in line with other major LTL carriers, including XPO, Old Dominion Freight Line and Saia, while reflecting FedEx Freight's potential for margin improvement and profitable growth as an independent company.

FedEx Freight Holding Company, Inc. trades at ~$150 post-spin, with valuation reflecting mid-twenty times pro forma earnings and uncertain near-term margins. FDXF targets mid-single-digit sales growth, margin expansion from 12% to 15%, and capital spending at 5% of sales. Near-term margin pressure is likely due to corporate cost allocation and transition service agreements, making current valuation less compelling.

Shares of newly-independent FedEx Freight turned out to be a haven for investors on Friday.

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Increases Annual Dividend by 5% After Adjusting for FedEx Freight Spin-Off

MEMPHIS, Tenn.--(BUSINESS WIRE)--The Board of Directors of FedEx Corp. (NYSE: FDX) today approved a 5% increase in the annual dividend rate on FedEx Corp. common stock, after a one-time annual rate adjustment in connection with the spin-off of FedEx Freight.

The dividend increase and spin-off adjustment result in an annualized dividend rate of $4.88 for the transition period covering June 1, 2026 through Dec. 31, 2026. Consistent with this update, the Board today also declared a quarterly cash dividend of $1.22 per share on FedEx Corp. common stock. The dividend is payable July 7, 2026, to stockholders of record at the close of business on June 22, 2026.

“This dividend increase, coupled with our recent spin-off of FedEx Freight, signals our firm commitment to creating stockholder value,” said Claude F. Russ, FedEx Corp. enterprise vice president and interim CFO. “Our dividend is an important element of our disciplined and multifaceted approach to capital allocation.”

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. The company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

More News From FedEx Corp.

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On June 10, 2026, we delve into the DCF analysis for FedEx Corp FDX , a company that has shown remarkable price performance over the past year with a 90.6% increase. The current price stands at $331.76, reflecting a market cap of $79,160 million. Here are some key points to consider:

DCF Earnings-based intrinsic value of $248.95 vs current price of $331.76 (margin of safety: -33.3%) DCF FCF-based intrinsic value of $211.79 vs current price (second opinion suggests overvaluation) GF Score™ of 80/100 indicates a strong reliability of the DCF inputs What Is FDX Worth? DCF Earnings-Based Model The DCF earnings-based model for FedEx Corp is built on a two-stage approach. In the first stage, we project earnings growth over the next ten years at a rate of 6.2%. This growth is then discounted at a rate of 11%, which is derived from the 10-Year Treasury Rate and the equity risk premium. In the second stage, we apply a terminal growth rate of 4% for the subsequent ten years.

Parameter Value Current EPS (TTM, excl. non-recurring) $19.95 10-Year Growth Rate 6.2% 10-Year Treasury Rate 4.53% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.2%, discounted at 11% $157.74 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $91.21 Intrinsic Value Growth + Terminal $248.95 Comparing the current price of $331.76 with the intrinsic value of $248.95 indicates that FedEx is modestly overvalued, with a margin of safety of -33.3%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For a detailed analysis, visit the FDX DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for FedEx is calculated at $211.79. When we compare this with the earnings-based intrinsic value of $248.95, we see a divergence in the valuation perspectives. Both models indicate that FedEx is modestly overvalued, with a margin of safety of -56.6% based on the FCF model.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for FedEx stands at $231.25, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. When we consider all three models—DCF earnings, DCF FCF, and GF Value™—they collectively indicate that FedEx is overvalued. For further insights, visit the GF Value™ page.

What Does FDX's GF Score™ Tell Us? The GF Score™ for FedEx is 80/100, reflecting a strong position based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtesting from 2006 to 2021.

Metric Rating GF Score™ 80/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 3/10 Momentum 9/10 With a predictability rank of 1/5 stars, it indicates that the DCF model may be less reliable for this stock. For more information, visit the FDX stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as FedEx's 1/5 stars, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future conditions.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the clear verdict is that FedEx is overvalued. The divergence in intrinsic values and the GF Value™ perspective reinforces this conclusion. For the full DCF analysis, visit the FDX DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is FDX's intrinsic value based on DCF?

Answer: earnings-based $248.94, FCF-based $211.79

Is FDX overvalued or undervalued?

Answer: Both DCF and GF Value™ consensus indicate that FDX is overvalued.

How reliable is the DCF model for FDX?

Answer: The predictability rank of 1/5 suggests that the DCF model is less reliable for this stock.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: FedEx (FDX - Free Report) Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce, and business services through companies competing collectively, operating independently, and managed collaboratively, under the FedEx brand.

FDX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.39; value investors should take notice.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.11 to $19.72 per share. FDX also boasts an average earnings surprise of +13.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, FDX should be on investors' short list.

FedEx is downgraded to Hold due to a mix of catalysts and valuation changes. On the positive side, current profit margins are above 5-year averages, and Network 2.0 can drive further margin improvements. The impacts from the FedEx Freight spin-off can be more subtle depending on your timeframe.

Once upon a time, Teva Pharmaceutical Industries Ltd. (TEVA +0.20%) was a stock that many investors didn't want to touch with a 10-foot pole. The pharmaceutical company faced legal challenges over its opioid drugs. Its debt load was staggering. Sentiment was overwhelmingly negative.

But there's a much different story for Teva these days. The pharma stock has soared more than 100% over the last 12 months. Wall Street thinks that Teva has even more room to run. Are analysts right to be bullish? I think so.

Image source: Getty Images.

Of the 13 analysts surveyed by S&P Global (SPGI +1.52%) in May, 12 rated Teva as a "buy" or "strong buy." The lone outlier recommending holding the stock. The consensus 12-month price target reflects a potential upside of around 11%.

Why is Wall Street still bullish about Teva after its impressive gains? For one thing, the company's branded portfolio is firing on all cylinders. Huntington's chorea and tardive dyskinesia drug Austedo is leading the way, with first-quarter sales jumping 41% year over year to $578 million.

Teva has also paid down much of its debt. Its financial leverage stood at 67% as of March 31, 2026, a significant improvement from the past. The company is cutting costs, too. Teva expects to realize around $470 million of net savings this year from its transformation initiatives.

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Analysts recognize the promise of Teva's pipeline. The U.S. Food and Drug Administration (FDA) is set to make a decision later this year on approval of olanzapine extended-release injectable suspension (TEV-'749) for the treatment of schizophrenia in adults. Evercore ISI's (EVR +0.64%) Umer Raffat thinks the potential FDA approval of olanzapine is Teva's "most meaningful catalyst."

Furthermore, Teva's valuation still looks attractive even after its tremendous performance over the last 12 months. The stock trades at only 13 times forward earnings, well below the average forward earnings multiple of 16.5 for the healthcare sector. You could argue that's value stock territory.

Teva's turnaround is real There's no question at this point that Teva's turnaround is real. And Wall Street believes the stock has more gas in the tank.

To be sure, Teva still faces challenges. Some litigation uncertainty lingers. The company's generic-drug business continues to face pricing pressure. Pipeline setbacks are a perpetual threat.

However, Teva is no longer a company in crisis. Its revenue and profits are growing. Its balance sheet is stronger. Most stories that begin with "once upon a time" have a happy ending. This one could, too, if analysts are right.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Evercore and S&P Global. The Motley Fool has a disclosure policy.

TEL AVIV, Israel, May 18, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced that Fitch Ratings Agency ("Fitch") has raised the Company's corporate credit rating to Investment Grade BBB-, with a stable outlook, from BB.

The olanzapine long-acting injectable (TEV-’749) is designed to deliver the efficacy of olanzapine in a subcutaneous formulation1 administered every four weeks.If approved, TEV-‘749 could help fill a significant unmet need in available schizophrenia treatment options by addressing the lack of a viable long-acting olanzapine formulation.Teva is committed to advancing this innovative treatment option, strengthening its scientific leadership in complex neurological conditions as part of its Pivot to Growth strategy. TEL AVIV, Israel and PARIS, May 21, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd. (NYSE: and TASE: TEVA) and Medincell (Euronext: MEDCL), today announced that the European Medicines Agency (EMA) has accepted the Marketing Authorization Application (MAA) for olanzapine long-acting injectable (TEV-‘749) for the treatment of schizophrenia in adults. TEV-‘749 aims to address treatment adherence in real-world settings and contribute to long-term disease management in people living with schizophrenia.1

“Treatment adherence remains a challenge for people living with schizophrenia including those who rely on oral forms of Olanzapine. TEV-‘749, our investigational subcutaneously delivered olanzapine LAI, has the potential to help provide stability by offering the proven efficacy and safety of olanzapine as a once-every four weeks treatment,” said Eric Hughes, MD, PhD, Executive Vice President, and Chief Medical Officer at Teva. “For too long, treatment options have been limited by the lack of a viable long-acting olanzapine formulation, and we look forward to working with the EMA to help address this gap in care.”

“Daily oral olanzapine is one of the most commonly prescribed antipsychotics in Europe for people living with schizophrenia, and long-acting injectables are already well established in managing serious psychiatric conditions across the region,” said Christophe Douat, CEO of Medincell. “We believe a practical long-acting olanzapine option that fits more naturally into patients’ lives can help address a real and persistent need in schizophrenia.”

Schizophrenia affects 0.3 - 1.5% of the population in Europe2, yet those living with the condition often face profound challenges of social isolation, unstable employment 3, and a life expectancy reduced by 15–20 years 4.

TEV-‘749 is not approved by any regulatory authority worldwide at this time. The submission to the EMA is supported by an extensive clinical development program, including the Phase 3 SOLARIS study. Across clinical development, TEV-‘749 demonstrated efficacy, a systemic safety profile, and exposure consistent with oral olanzapine.

TEV-‘749 utilizes SteadyTeq™, a copolymer technology proprietary to Medincell that provides a controlled, steady, prolonged release of olanzapine.

About Schizophrenia
Schizophrenia is a chronic, progressive and severely debilitating mental disorder that affects how one thinks, feels and acts.2 Patients experience an array of symptoms, which may include delusions, hallucinations, disorganized speech or behavior and impaired cognitive ability.2,3,4 Approximately 1% of the world’s population will develop schizophrenia in their lifetime, and 0.3 - 1.5% of the population in Europe are currently diagnosed with the condition.3,4 Although schizophrenia can occur at any age, the average age of onset tends to be in the late teens to the early 20s for men, and the late 20s to early 30s for women.4 The long-term course of schizophrenia is marked by episodes of partial or full remission broken by relapses that often occur in the context of psychiatric emergency and require hospitalization.4 Approximately 80% of patients experience multiple relapses over the first five years of treatment, and each relapse carries a biological risk of loss of function, treatment refractoriness, and changes in brain morphology.5,6,7 Patients are often unaware of their illness and its consequences, contributing to treatment nonadherence, high discontinuation rates, and ultimately, significant direct and indirect healthcare costs from subsequent relapses and hospitalizations.2,3,4,5,6,7

About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.

Teva Media Inquiries:
[email protected]
Teva Investor Relations Inquiries:
[email protected]

About Medincell

Medincell is a clinical- and commercial-stage biopharmaceutical licensing company developing long-acting injectable drugs in many therapeutic areas. Our innovative treatments aim to guarantee compliance with medical prescriptions, to improve the effectiveness and accessibility of medicines, and to reduce their environmental footprint. They combine active pharmaceutical ingredients with our proprietary BEPO® technology which controls the delivery of a drug at a therapeutic level for several days, weeks or months from the subcutaneous or local injection of a simple deposit of a few millimeters, entirely bioresorbable. The first treatment based on BEPO® technology, intended for the treatment of schizophrenia, was approved by the FDA in April 2023, and is now distributed in the United States by Teva under the name UZEDY® (BEPO® technology is licensed to Teva under the name SteadyTeq™). We collaborate with leading pharmaceutical companies and foundations to improve global health through new treatment options. Based in Montpellier, Medincell currently employs more than 140 people representing more than 25 different nationalities.

Medincell Media Inquiries:
Contact: [email protected]

Teva Cautionary Note Regarding Forward-Looking Statements

This Press Release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “intend,” “plan,” “believe,” “aim” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully develop olanzapine LAI (TEV-‘749) for the treatment of adult patients diagnosed with schizophrenia and to obtain regulatory approvals; our ability to successfully compete in the marketplace, including our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development; our significant indebtedness; our business and operations in general; compliance, regulatory and litigation matters; other financial and economic risks; and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2026, and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Forward-Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

References

__________

1 Data on file. Parsippany, NJ: Teva Neuroscience, Inc.
2 European Brain Council. Rethinking Schizophrenia. 2024. Available at https://www.braincouncil.eu/projects/rethinking-schizophrenia/#:~:text=Rethinking%20Schizophrenia%20is%20a%20research,that%20of%20the%20general%20population. Last accessed March 20263 Teva What lies beneath: Uncovering the hidden drivers and impact of Stigma in Schizophrenia White Paper 2025. Available at https://www.tevapharm.com/globalassets/tevapharm-vision-files/teva-white-paper-uncovering-hidden-drivers-and-impact-stigma-in-schizophrenia.pdf Last accessed March 2026
4 Thornicroft G. British Journal of Psychiatry. 2011;199(6):441-442.

Teva Pharmaceutical (TEVA) delivered a strong Q1 2026, reinforcing my buy rating and the company's successful pivot to innovative growth assets. TEVA's innovative neuroscience franchise—AUSTEDO, AJOVY, and Uzedy—drove $838M in Q1 revenue, up 41% year over year, offsetting legacy generics decline. Management maintained full-year guidance, with stable gross margins (52.9%) and a clear path to 30% non-GAAP operating income margin by 2027.

PARSIPPANY, N.J., and TEL AVIV, Israel, June 01, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced that Richard Francis, Teva's President and CEO, will participate in a fireside chat at the Goldman Sachs Global Healthcare Conference on Monday, June 8, 2026. The fireside chat will begin at 8:00 A.M. Eastern Time.

To access live webcasts of the presentations, please visit Teva’s Investor Relations website at https://ir.tevapharm.com/Events-and-Presentations.

Archived versions of the webcasts will be available within 24 hours after the end of the live discussion and will be accessible for up to 30 days.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical Company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.

Cautionary Note Regarding Forward-Looking Statements

This document and the presentation at the conference may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial guidance, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. These forward-looking statements include statements concerning our plans, strategies, objectives, future performance and financial and operating targets, and any other information that is not historical information. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; our ability to develop and commercialize additional pharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; the effectiveness of our patents and other measures to protect our intellectual property rights; our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; our business and operations in general; compliance, regulatory and litigation matters; other financial and economic risks; and other factors discussed in this document, in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the section captioned “Risk Factors.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

Teva Media Inquiries
[email protected]

Teva Investor Relations Inquires
[email protected]

New real-world survey data reveal the daily impact of Huntington’s disease (HD) chorea, with over 68% of patients reporting interference with social life or emotional wellbeing1 and up to 83% of caregivers noting impact on their own daily lives.2Following treatment with AUSTEDO or AUSTEDO XR, most patients (60-71%) reported improvement across multiple quality of life domains as a result of their improved movements.1 As a result of the patient’s reduced chorea impact, most caregivers reported less impact to their daily lives.2These real-world findings reinforce Teva's commitment to advancing innovative treatment options that improve the lives of individuals living with HD chorea and their caregivers. PARSIPPANY, N.J. and TEL AVIV, Israel, June 05, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), today announced new data from the first and only real-world, decentralized study evaluating the patient- and caregiver-reported quality of life impacts of Huntington’s disease (HD) chorea3 and the effect of AUSTEDO® or AUSTEDO XR® on symptom management. The findings demonstrate that treating chorea with AUSTEDO or AUSTEDO XR led to symptom improvement and, as a result, showed improvements across multiple quality of life measures.1,2 The data were presented at the Advanced Therapeutics in Movement & Related Disorders® Congress, held June 4 – 8, 2026, in Washington, DC.

“What we are seeing reinforced from these real-world data is how deeply Huntington’s disease chorea affects patients – physically, emotionally and in their ability to function day-to-day – and the strain it can place on their care partners,” said Eric Hughes, MD, PhD, Executive Vice President, Global R&D and Chief Medical Officer at Teva. “That’s why our patient-centric approach is fundamental to our work at Teva, and why we are proud to see AUSTEDO and AUSTEDO XR delivering such meaningful improvement for patients and making a real difference in the lives of those impacted.”

Self-reported HD chorea patient participants (≥18 years) in the United States completed a non-interventional, online survey through the myHDstory® platform, which included questions regarding chorea impact on quality of life, severity, current treatment and self-defined goals for management. Participants taking AUSTEDO or AUSTEDO XR completed additional questions evaluating perceived changes in burden since treatment initiation, including the Patient Global Impression of Change (PGIC) scale. Caregivers (≥18 years) of individuals with HD chorea also completed an online survey, reporting on how their care recipient’s chorea affected their own daily functioning across multiple quality of life domains.

Prior to treatment survey findings revealed:

Patients reported self-defined aspirational goals that they would like to improve with HD chorea treatment focused on their daily activities and social life. Caregivers also reported goals focused on their own wellbeing.Across the real-world survey population, patients reported HD chorea often interfered with social life (71-84%), emotional wellbeing (68-77%), daily activities (70-78%) and vocational/recreational life (67-82%).1 Caregivers also reported substantial impact across their own social functioning (73–84%), emotional wellbeing (71–84%), daily activities (81–83%) and vocational/recreational life (76-83%) due to their caregiving responsibilities.2 As a result of reduced HD chorea movements in patients treated with AUSTEDO or AUSTEDO XR, the survey findings revealed:

74% of patients reported improvements in their chorea movements since initiating treatment, measured by the PGIC scale.1As a result of movement reduction, over 85% of surveyed patients reported improvements in goals related to daily activities, such as dressing, walking and eating, and goals related to their social lives, such as going out with friends and family.177% of caregivers of patients reported improvements in goals related to their social life, such as going out on their own and emotional wellbeing, including reduced guilt, stress and emotional burden.2 “Huntington’s disease chorea extends beyond its physical symptoms, disrupting patients’ emotional wellbeing, social functioning and sense of self, while also placing immense strain on caregivers,” said Daniel Claassen, MD, MS, Professor of Neurology at Vanderbilt University Medical Center, principal investigator of the study and CEO, Huntington’s Study Group. “These real-world findings demonstrate the importance of effective chorea management to aid in preserving independence longer and alleviating those impacts for both patients and caregivers.”

The study presented, executed in collaboration with the Huntington Study Group, is the only real-world study assessing the impact of HD chorea on patients’ and caregivers’ quality of life to date.3

About Chorea Associated with Huntington’s Disease (HD)
Huntington’s disease (HD) is a fatal neurodegenerative disease characterized by uncoordinated and uncontrollable movements, cognitive deterioration and behavioral and/or psychological problems. Chorea – involuntary, random and sudden, twisting and/or writhing movements – is one of the most striking physical manifestations of Huntington’s disease and occurs in approximately 90% of patients. Chorea can have a significant impact on daily activities and progressively limit peoples’ lives.4,5

About AUSTEDO XR Extended-Release Tablets and AUSTEDO Tablets
AUSTEDO XR and AUSTEDO are the first vesicular monoamine transporter 2 (VMAT2) inhibitors approved by the U.S. Food and Drug Administration in adults for the treatment of tardive dyskinesia and for the treatment of chorea associated with Huntington’s disease. Safety and effectiveness in pediatric patients have not been established. AUSTEDO XR is the once-daily formulation of AUSTEDO.

INDICATIONS AND USAGE
AUSTEDO XR (deutetrabenazine) extended-release tablets and AUSTEDO (deutetrabenazine) tablets are indicated in adults for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia.

IMPORTANT SAFETY INFORMATION 

Depression and Suicidality in Patients with Huntington’s Disease: AUSTEDO XR and AUSTEDO can increase the risk of depression and suicidal thoughts and behavior (suicidality) in patients with Huntington’s disease. Balance the risks of depression and suicidality with the clinical need for treatment of chorea. Closely monitor patients for the emergence or worsening of depression, suicidality, or unusual changes in behavior. Inform patients, their caregivers, and families of the risk of depression and suicidality and instruct them to report behaviors of concern promptly to the treating physician. Exercise caution when treating patients with a history of depression or prior suicide attempts or ideation. AUSTEDO XR and AUSTEDO are contraindicated in patients who are suicidal, and in patients with untreated or inadequately treated depression. 

Contraindications: AUSTEDO XR and AUSTEDO are contraindicated in patients with Huntington’s disease who are suicidal, or have untreated or inadequately treated depression. AUSTEDO XR and AUSTEDO are also contraindicated in: patients with hepatic impairment; patients taking reserpine or within 20 days of discontinuing reserpine; patients taking monoamine oxidase inhibitors (MAOIs), or within 14 days of discontinuing MAOI therapy; and patients taking tetrabenazine or valbenazine.   

Clinical Worsening and Adverse Events in Patients with Huntington’s Disease: AUSTEDO XR and AUSTEDO may cause a worsening in mood, cognition, rigidity, and functional capacity. Prescribers should periodically re-evaluate the need for AUSTEDO XR or AUSTEDO in their patients by assessing the effect on chorea and possible adverse effects. 

QTc Prolongation: AUSTEDO XR and AUSTEDO may prolong the QT interval, but the degree of QT prolongation is not clinically significant when AUSTEDO XR or AUSTEDO is administered within the recommended dosage range. AUSTEDO XR and AUSTEDO should be avoided in patients with congenital long QT syndrome and in patients with a history of cardiac arrhythmias.  

Neuroleptic Malignant Syndrome (NMS), a potentially fatal symptom complex reported in association with drugs that reduce dopaminergic transmission, has been observed in patients receiving tetrabenazine. The risk may be increased by concomitant use of dopamine antagonists or antipsychotics. The management of NMS should include immediate discontinuation of AUSTEDO XR and AUSTEDO; intensive symptomatic treatment and medical monitoring; and treatment of any concomitant serious medical problems.   

Akathisia, Agitation, and Restlessness: AUSTEDO XR and AUSTEDO may increase the risk of akathisia, agitation, and restlessness. The risk of akathisia may be increased by concomitant use of dopamine antagonists or antipsychotics. If a patient develops akathisia, the AUSTEDO XR or AUSTEDO dose should be reduced; some patients may require discontinuation of therapy. 

Parkinsonism: AUSTEDO XR and AUSTEDO may cause parkinsonism in patients with Huntington’s disease or tardive dyskinesia. Parkinsonism has also been observed with other VMAT2 inhibitors. The risk of parkinsonism may be increased by concomitant use of dopamine antagonists or antipsychotics. If a patient develops parkinsonism, the AUSTEDO XR or AUSTEDO dose should be reduced; some patients may require discontinuation of therapy. 

Sedation and Somnolence: Sedation is a common dose-limiting adverse reaction of AUSTEDO XR and AUSTEDO. Patients should not perform activities requiring mental alertness, such as operating a motor vehicle or hazardous machinery, until they are on a maintenance dose of AUSTEDO XR or AUSTEDO and know how the drug affects them. Concomitant use of alcohol or other sedating drugs may have additive effects and worsen sedation and somnolence. 

Hyperprolactinemia: Tetrabenazine elevates serum prolactin concentrations in humans. If there is a clinical suspicion of symptomatic hyperprolactinemia, appropriate laboratory testing should be done and consideration should be given to discontinuation of AUSTEDO XR and AUSTEDO.   

Binding to Melanin-Containing Tissues: Deutetrabenazine or its metabolites bind to melanin-containing tissues and could accumulate in these tissues over time. Prescribers should be aware of the possibility of long-term ophthalmologic effects. 

Common Adverse Reactions: The most common adverse reactions for AUSTEDO (>8% and greater than placebo) in a controlled clinical study in patients with Huntington’s disease were somnolence, diarrhea, dry mouth, and fatigue. The most common adverse reactions for AUSTEDO (4% and greater than placebo) in controlled clinical studies in patients with tardive dyskinesia were nasopharyngitis and insomnia.  Adverse reactions with AUSTEDO XR extended-release tablets are expected to be similar to AUSTEDO tablets. 

Please see accompanying full Prescribing Information, including Boxed Warning. 

About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.

Teva Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully develop and commercialize AUSTEDO and AUSTEDO XR for the treatment of chorea associated with Huntington’s disease; our ability to successfully compete in the marketplace, including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development; and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Forward-Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

References:

Claassen D, Dalrymple WA, Finkbeiner S, Klakotskaia D, Konings M, & Gandhi P, (2026, June 4–8). Patient-reported burden of Huntington disease chorea and effect of deutetrabenazine on symptom management and quality of life: Results from a real-world, decentralized study [Poster presentation]. Advanced Therapeutics in Movement & Related Disorders® Congress, Washington, DC, United States.Anderson KE, Moore HP, Finkbeiner S, Klakotskaia D, Konings M, & Gandhi P, (2026, June 4–8). A real-world, decentralized study of caregiver-reported burden of Huntington disease chorea and effect of deutetrabenazine on symptom management and quality of life [Poster presentation]. Advanced Therapeutics in Movement & Related Disorders® Congress, Washington, DC, United States.Data on file. Parsippany, NJ: Teva Neuroscience, Inc.Huntington’s Disease. National Institute of Neurological Disorders and Stroke. https://www.ninds.nih.gov/health-information/disorders/huntingtons-disease#toc-what-is-huntington-s-disease-.Thorley EM, Iyer RG, Wicks P, Curran C, Gandhi SK, Abler V, Anderson KE, Carlozzi NE. Understanding How Chorea Affects Health-Related Quality of Life in Huntington Disease: An Online Survey of Patients and Caregivers in the United States. Patient. 2018;11(5):547-559. doi: 10.1007/s40271-018-0312-x.

Teva Pharmaceutical Industries Limited (TEVA) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript

Agreement highlights Paragon’s ability to build companies around important science, advance registration-ready assets, and deliver value through strategic transactions

CHICAGO--(BUSINESS WIRE)--Paragon Biosciences today announced the closing of the sale of Emalex Biosciences to Teva Pharmaceutical, reinforcing Paragon's ability to build innovative biotechnology companies that deliver important treatments to the patients who need them.

"Building companies that translate scientific breakthroughs into medicines for patients is the foundation of Paragon's mission," said Jeff Aronin, Paragon Biosciences founder and CEO.

Share Emalex is another Paragon Biosciences-founded company built to develop a novel class of treatment for patients with central nervous system disorders, following in the footsteps of other successful Paragon companies such as Harmony Biosciences (NASDAQ: HRMY). Ecopipam, an investigational compound, was developed by Emalex for Tourette syndrome, a neurodevelopmental disorder that can significantly affect daily life for patients and families.

Paragon, supporting Emalex, advanced the drug through clinical development and the compilation of the NDA that will be submitted in the second half of 2026. The acquisition by Teva comprises $700 million in cash and up to $200 million in commercial milestone payments as well as net-sales-based royalties, subject to regulatory approval.

"This transaction is a testament to the talent, perseverance and vision of the Paragon and Emalex teams. Together, they transformed promising science into a registration-ready program with the potential to become the first new treatment option for Tourette syndrome in over a decade. Their work demonstrates the power of focused innovation to address diseases that have been underserved for far too long,” said Jeff Aronin, Paragon Biosciences founder and CEO.

“Building companies that translate scientific breakthroughs into medicines for patients is the foundation of Paragon's mission. From CNS disorders to rare diseases, we continue to identify important unmet needs, assemble exceptional teams and advance therapies that have the potential to change lives. We are incredibly proud of what the Emalex team has accomplished and excited to see ecopipam move into its next chapter,” Aronin added.

Phase 3 results published in JAMA Neurology showed that ecopipam reduced time to relapse compared to placebo and maintained clinically meaningful tic improvement in subjects with Tourette syndrome.

Ecopipam remains investigational and has not been approved by the U.S. Food and Drug Administration.

“Emalex reflects what Paragon does best, building companies with discipline, urgency and a clear path from scientific insight to patient impact,” said Eric Messner, chief executive officer of Emalex Biosciences. “From the beginning, the team focused on rigorous clinical execution and a significant unmet need. With the transaction now closed, ecopipam is positioned for its next stage as it approaches planned regulatory submission and, if approved, potential access for patients.”

About Ecopipam

Ecopipam is a first-in-class investigational compound designed to block dopamine signaling at the D1 receptor. D1 receptor hypersensitivity may contribute to repetitive and compulsive behaviors associated with Tourette syndrome.

Ecopipam has received Orphan Drug and Fast Track designations from the FDA for the treatment of pediatric patients with Tourette syndrome. Orphan Drug designation is reserved for patient populations of 200,000 or fewer.

The Phase 3 Tourette syndrome study results were recently published in JAMA Neurology. The primary efficacy endpoint in the study was time to relapse for pediatric patients stable and responding to ecopipam then randomized to ecopipam or placebo. The study showed statistical significance between ecopipam and placebo for the primary efficacy endpoint in pediatric patients (p = 0.0084).

Ecopipam was generally well-tolerated in the study and the most common adverse events related to ecopipam therapy were somnolence (10.2%), insomnia (7.4%), anxiety (6.0%), fatigue (5.6%), and headache (5.1%).

About Paragon Biosciences

Paragon Biosciences, founded by Jeff Aronin, creates, builds and funds innovative biology-based companies. Its portfolio companies advance scientific breakthroughs aimed at addressing significant unmet medical needs. Learn more at paragonbiosciences.com.

Key Takeaways Visa's payment, cross-border and processed transaction volumes continued growing in Q2.Stablecoin-linked payment volume surges as Visa expands blockchain settlement capabilities.Strong earnings growth forecasts and buybacks support the investment case. Over the past year, Visa Inc.'s (V - Free Report) stock has declined 13.8%, but it has outperformed both the broader industry and key peer Mastercard Incorporated (MA - Free Report) , which fell 25% and 18.2%, respectively. Still, the shares have badly trailed the S&P 500's 31.2% gain, a rally driven largely by mega-cap technology and artificial intelligence names.Another key peer, American Express Company (AXP - Free Report) ,gained 5.1% over the same period.

Visa continues to deliver steady revenue growth, expanding margins and strong shareholder returns, yet investors remain focused on regulatory risks and the possibility that new payment technologies could eventually weaken/disrupt its dominance.

Visa One-Year Price Performance Comparison Image Source: Zacks Investment Research

The Regulatory Cloud Won't Go AwayVisa's biggest challenge is not operational. It is political and regulatory.

In the United States, the Department of Justice has accused Visa and Mastercard of using their market positions to maintain elevated merchant fees. At the same time, the proposed Credit Card Competition Act remains a source of uncertainty. The bill has bipartisan support and backing from the White House, keeping it firmly on investors' radar. However, despite the attention, it has yet to gain meaningful legislative traction.

Europe presents another area of concern.

In June 2025, the Competition Appeal Tribunal in London ruled that Visa and Mastercard's multilateral interchange fees breached European competition law. Britain's Payment Systems Regulator is also considering a reporting framework that would require greater disclosure of the companies' U.K. operations. If adopted, regulators would gain a clearer view of profitability, potentially strengthening the case for future pricing intervention.

Several U.K. banks are exploring domestic payment alternatives that could gradually reduce reliance on U.S.-based card networks. Meanwhile, the European Central Bank continues developing the digital euro, a project aimed in part at reducing Europe's dependence on foreign payment infrastructure. Consumers would access the system through banks and digital wallets, while the ECB would provide the underlying network.

Competition is EvolvingFintech firms continue searching for ways to lower payment costs and reshape transaction economics. At the same time, real-time payment systems and upgraded bank networks are becoming faster and more capable. The more alternatives that emerge, the harder it becomes for Visa to justify premium pricing over the long term. Both Visa and Mastercard maintain that higher fees support investments in cybersecurity, fraud prevention and network reliability.

Stablecoins represent another potential challenge. If major retailers or technology companies eventually build large-scale payment ecosystems around digital currencies, some transactions could bypass traditional card networks altogether. While that risk remains largely theoretical today, it is one investors cannot completely ignore.

The Numbers Keep Telling a Different StoryFor years, Visa has faced predictions that newer technologies would weaken its position. Yet the company's operating results continue to suggest otherwise.

Visa benefits from a simple but powerful business model. Whether consumers spend on travel, groceries, dining, subscriptions or online shopping, Visa earns a fee for facilitating transactions. It does not need to predict where spending shifts. It simply needs spending to occur.

This model remained highly effective during the second quarter of fiscal 2026. On a constant-dollar basis, cross-border volume increased 12%, supported by healthy international travel and continued strength in global e-commerce. Payment volume rose 9%, while processed transactions climbed 9% to 66.1 billion. Net revenues increased 17% year over year to $11.23 billion.

Value-Added Services (VAS) remain a fast-growing business and provide diversification benefits. Revenues from the segment rose 27% in constant dollars to $3.3 billion and now account for roughly 30% of total net revenues. Growth was driven by strong demand for network products and marketing services, areas that typically generate attractive margins while strengthening client relationships.

Visa is turning disruption into opportunity.

One of the more interesting developments is Visa's approach to stablecoins. Rather than treating digital assets as a threat, the company is working to position itself as the infrastructure layer connecting traditional finance with blockchain-based payment systems. Management has avoided making aggressive claims about stablecoins becoming a mainstream consumer payment method anytime soon. Even so, adoption trends are moving in Visa's favor.

During the second quarter of fiscal 2026, its stablecoin-linked card payment volumes surged nearly 200% from the prior year, supported by more than 160 programs globally. Its stablecoin settlement business has also gained traction. Visa reported a $7 billion annual run rate, representing more than 50% sequential growth. In April 2026, the company expanded its stablecoin settlement pilot to support nine blockchain networks, broadening its reach and increasing flexibility for partners. Rather than being displaced by emerging payment technologies, Visa increasingly appears to be embedding itself within them.

Shareholder Returns Remain a PriorityVisa continues to return substantial amounts of capital to shareholders. During the last reported quarter, the company returned $9.2 billion to shareholders, including $7.9 billion in buybacks and $1.3 billion in dividends. Management also authorized a new $20 billion multi-year repurchase program in April, reinforcing confidence in the company's long-term outlook.

Visa's dividend yield currently stands at 0.85%, modestly above Mastercard's 0.73%, though below American Express' 1.22%.

Visa’s Estimates Keep Moving HigherFor fiscal 2026, Visa’s EPS is now projected at $13.09, implying 14.1% year-over-year growth. For fiscal 2027, the estimate has moved up to $14.81, pointing to another 13.1% increase. Revenue expectations are moving higher, too. Analysts now forecast $45.35 billion in fiscal 2026 revenues and $50.04 billion in fiscal 2027, indicating growth of 13.4% and 10.3%, respectively.

Visa has beaten EPS estimates in each of the past four quarters, with an average surprise of 3.2%.

Premium Valuation, Proven BusinessVisa is not cheap. The stock trades at 22.27X forward earnings, well above the industry average of 15.75X. However, the valuation sits below the company's five-year median of 25.93X. Investors are still willing to pay a premium for Visa because few businesses combine its scale, profitability, global reach and consistency. For comparison, Mastercard trades at 22.87X forward earnings, while American Express trades at 16.68X.

Image Source: Zacks Investment Research

Should Investors Buy Visa Stock?Visa continues to face regulatory scrutiny in the United States and Europe, while fintechs, real-time payment networks and stablecoins are working to reshape the payments landscape. These risks are real and help explain why the stock has lagged the broader market.

However, Visa's fundamentals remain strong. Payment volumes are growing, cross-border spending remains healthy, Value-Added Services are expanding rapidly, and the company is increasingly positioning itself within emerging payment technologies. Meanwhile, earnings estimates continue to move higher, supported by consistent execution.

While regulatory and competitive pressures are unlikely to fade, Visa's scale, network advantages and proven ability to adapt keep it well positioned for long-term growth. Supported by positive estimate revisions, Visa currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Berkshire Hathaway has always had a diversified portfolio, but it's typically been top-heavy. That's still true today. Its top two holdings are Apple (AAPL 1.52%) and American Express (AXP +2.18%), which account for 21.4% and 14.5% of its portfolio, respectively.

Simply copying a trillion-dollar corporation is a potential strategy for the average investor, but with Berkshire committing nearly 36% of its portfolio to two stocks, is that a sign you should be all in on them, too?

If you're a fan of Warren Buffett's wisdom, then absolutely.

Image source: Getty Images.

You can't put a price on a premium brand Informed investors know Buffett was a fan of undervalued, cash-flow-heavy businesses, but he also looked for companies with a premium brand. To Buffett, a power brand was a competitive advantage because it created customer loyalty and the ability to charge a premium.

Both Apple and American Express have premium brands that set them apart from their competitors. Owning Apple products has become a lifestyle choice, and most people won't jump ship once they join Apple's ecosystem. Owning an American Express card is a status symbol for a certain level of success.

These things alone don't make them great businesses, but it usually takes great businesses to get to those points.

The biggest brand in technology Few brands have a loyal customer base quite like Apple's. Although its product line hasn't changed meaningfully in years, it's still a major cash cow thanks to repeat customers and high margins. In just its most recent quarter, the company generated $111.2 billion in revenue, up 17% year over year. More than 51% of that came just from iPhone sales.

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Part of having a premium brand is having higher pricing power. When the iPhone was released, its two models were priced at $499 and $599. Today, the iPhone 17 Pro pricing starts at $1,099. When you have a premium brand, you can charge premium prices, and Apple has leaned into that.

The company has also done a great job of pairing its beloved hardware with a services ecosystem that complements it well. Whether it's iCloud, Apple Pay, or other services, once you're locked into the ecosystem, the switching costs aren't worth it in many cases.

The luxury credit card company Unlike companies like Visa and Mastercard, American Express runs a closed-loop network. While Visa and Mastercard only operate their payment networks, American Express issues its own cards and runs its payment network. This requires the company to take on more debt obligations, but it also allows it to get a piece of the transaction at every step.

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American Express' main appeal is the perks and luxury benefits that come with its cards. That's why it can charge hundreds in annual fees. Its Platinum card costs cardholders $895 annually, which is close to a rent payment for many people in the U.S.

People are willing to pay American Express' fees for the premium perks (especially travel-related ones). The company has done a great job of turning a credit choice into a "lifestyle" choice. It attracts high-earning customers who can still stick around for the long haul.

Both stocks are good purchases for long-term investors.

American Express is an advertising partner of Motley Fool Money. Stefon Walters has positions in Apple and Visa. The Motley Fool has positions in and recommends American Express, Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.

American Express and Delta Air Lines are adding new perks to their cobranded credit cards just ahead of the busy summer travel season, including a benefit frequent Delta flyers have long wanted: a second free checked bag.

The two companies announced Thursday that several Delta SkyMiles American Express cards will receive updated travel perks, refreshed card designs, and limited-time welcome bonuses for new applicants. Notably, the changes come without an increase to annual fees.

The update also marks 30 years of partnership between Delta and American Express.

A bigger push into travel perksThe headline addition is a complimentary second checked bag on U.S. domestic Delta-operated flights for Delta SkyMiles Gold, Platinum, and Reserve consumer and business cardholders.

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Delta and Amex are positioning the update as a convenience play for travelers navigating increasingly crowded airports and packed summer schedules.

[Photo: American Express and Delta]“After three decades of working together, we’ve learned that the future of travel benefits isn’t just more perks, it’s less friction,” Jon Gantman, executive VP of Cobrand Products & New Product Development at American Express, tells Fast Company. “Whether it’s getting to the airport, packing for a trip, or managing the logistics in between, we’re focused on creating benefits that fit naturally into how people travel today and make every step of the journey feel a little easier.”

According to a new study commissioned by the companies, 63% of travelers say they spend more time deciding what to pack than planning the actual trip. Meanwhile, 64% of Gen Z travelers say they’ve left important items at home at least occasionally just to avoid checking a bag.

Explore TopicsAmerican ExpressAmExDeltanews

American Express® (NYSE: AXP) and Delta Air Lines® (NYSE: DAL) today introduced new travel benefits for eligible Delta SkyMiles® Card Members, along with refreshed Card designs across the full portfolio and welcome offers for new Card Members, adding more value with no increase to the annual fee.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604750347/en/

New Delta SkyMiles® Reserve American Express Card Designs

Starting today, Basic Delta SkyMiles® Gold, Platinum and Reserve Consumer and Business Card Members will receive a complimentary second checked bag on domestic Delta-operated flights. Nearly two-thirds (63%) of travelers* say they spend more time deciding what to pack than planning their actual trip and 41% of small business travelers** say they would pack more outfit options if they had a second free checked bag — underscoring how thoughtful benefits can help make the travel experience easier at every stage of the trip.

Additionally, enrolled Delta SkyMiles Gold and Gold Business Card Members will have access to the $120 annual Rideshare Credit after Card renewal, unlocking up to $10 in monthly statement credits on eligible U.S. rideshare purchases with select providers. Together, these updates are designed to make travel more rewarding at every step — from getting to the airport to packing for a trip — while helping eligible Card Members get more from their Card.

In celebration of the 30th anniversary of the Delta SkyMiles® American Express partnership, the new benefit enhancements are complemented by updated Card designs, including a new Slate Grey option for Reserve and Reserve Business Cards.

“This is what our partnership with Delta does best: bringing together our strengths to deliver more value across the full travel journey,” said Jon Gantman, Executive Vice President - Cobrand Products & New Product Development at American Express. “From getting to the airport to stepping on the plane, we’ve worked together to add meaningful benefits like rideshare credits and a second checked bag — so our shared Card Members get more value along the way, without increasing annual fees.”

“Over 30 years, Delta’s partnership with American Express has grown into one of the industry’s strongest because it’s grounded in what customers value — premium experiences and real, everyday benefits,” said Dwight James, Senior Vice President - Customer Engagement & Loyalty for Delta and CEO - Delta Vacations. “Together, we’ll keep evolving the Card experience in ways that make travel feel simpler and deliver real value to our Members in the moments that matter.”

Limited-Time Welcome Offers

Beginning today, new Delta SkyMiles American Express Card Members can earn additional miles through limited-time offers when they apply and are approved by July 15, 2026:

New Delta SkyMiles Gold American Express Card Members can earn 70,000 bonus miles after spending $3,000 in purchases on their Card in the first six months of Card Membership, plus an additional 20,000 bonus miles after spending an additional $2,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Platinum American Express Card Members can earn 80,000 bonus miles after spending $4,000 in purchases on their Card in the first six months of Card Membership, plus an additional 20,000 bonus miles after spending an additional $2,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Reserve American Express Card Members can earn 100,000 bonus miles after spending $6,000 in purchases on their Card in the first six months of Card Membership, plus an additional 25,000 bonus miles after spending an additional $3,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Gold Business American Express Card Members can earn 90,000 bonus miles after spending $6,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Platinum Business American Express Card Members can earn 100,000 bonus miles after spending $8,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Reserve Business American Express Card Members can earn 125,000 bonus miles after spending $15,000 in purchases on their Card in the first six months of Card Membership. Terms and conditions apply. Learn more about the Delta SkyMiles American Express Cards and the Delta SkyMiles Business American Express Cards.

*Methodology: This poll was conducted from May 14–19, 2026 among 2,004 adults with an HHI greater than $50,000 and who travel by plane at least once a year. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on gender, age, race, educational attainment and region. Results from the full survey have a margin of error of plus or minus two percentage points.

** Methodology: This poll was conducted from May 14–26, 2026 among 501 small business owners who travel by plane at least once per year with fewer than 500 employees. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on company size, industry and region. Results from the full survey have a margin of error of plus or minus four percentage points.

ABOUT AMERICAN EXPRESS

American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.

Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.

For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.

ABOUT DELTA AIR LINES

Delta Air Lines, Inc. (NYSE: DAL) is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by its people around the world, Delta operates a leading domestic and international network, connecting customers to more than 290 destinations across six continents. Delta is committed to making air travel more sustainable through industry‑leading environmental initiatives and investments, and to creating an inclusive, welcoming experience for all customers. With a focus on innovation and operational excellence, Delta is shaping the future of travel for generations to come.

Location: U.S.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260604750347/en/

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NEW YORK--(BUSINESS WIRE)--The Board of Directors of American Express Company (NYSE: AXP) declared a regular quarterly dividend of $0.95 per common share, payable on August 10, 2026, to shareholders of record on July 2, 2026.

ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.

Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.

For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.

Source: American Express Company

Location: Global

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Three of the Dow’s worst performers this year share more than just a red ticker. American Express (NYSE: AXP | AXP Price Prediction) trades at $310.66 versus a Wall Street target of $361.57. Nike (NYSE: NKE) trades at $42.98 against a consensus target of $60.49. Walt Disney (NYSE: DIS) changes hands at $99.71 with analysts modeling $129.67. The implied upside gaps are roughly 16%, 40%, and 30%, respectively.

Each is a household name and Dow component that has lagged while the S&P 500 advanced. The puzzle is why analysts still see this underperformance as a buying setup rather than a warning sign.

Three Names, Three Identical Pressure Points The first commonality is consumer discretionary exposure. Premium card swipes, sneakers, and theme park tickets soften when households tighten. Goldman Sachs flagged slowing consumer spending as a key 2026 risk, and JPMorgan described a K-shaped economy where middle-income and below consumers feel pressured. These three companies sit directly in that crosswind.

The second link is premium customer tilt. American Express is built on affluent card members and has executed a U.S. Platinum Card refresh. Nike’s North America pricing depends on full-price sell-through. Disney’s Experiences segment booked record fiscal Q2 revenues of $9.49 billion on per-capita spending up 5%. Premium has been the moat, but spending slowdowns show up first here.

The third link is leadership transition. Nike CEO Elliott Hill is mid-turnaround with his Win Now plan. Disney handed the baton from Robert Iger to Josh D’Amaro. American Express CEO Stephen Squeri is steering a multi-year premium product refresh cycle. Transitions create uncertainty, and the market has discounted all three accordingly.

What Actually Broke the Stocks American Express is off 16.0% year to date on a Q4 EPS miss of $3.53 vs. $3.55 and Platinum refresh expenses pushing costs up 10%. Disney has slid 12.4% year to date after Q1 free cash flow swung to −$2.28 billion and Entertainment segment OI dropped 35% in fiscal Q4.

Nike’s pain is acute. The stock has dropped 32.5% year to date, weighed down by 130 basis points of gross margin compression from North American tariffs, a 35% net income drop in the latest quarter, and Converse revenues down 35%.

Why the Street Will Not Budge Analysts argue operating data is already turning. American Express reaffirmed FY26 guidance for revenue growth of 9% to 10% and EPS of $17.30 to $17.90, with Card Member spend at a three-year high. Nike’s margin compression has narrowed from −440 basis points in Q4 FY25 to −130 basis points in Q3 FY26, wholesale grew 5%, and Hill called the company in the “middle innings of our comeback.” Disney guided to ~16% adjusted EPS growth in FY26, an $8 billion buyback, and its first double-digit SVOD operating margin.

Analyst sentiment reflects that, with Disney being the most loved by analysts.

How the Math Stacks Up The performance spread tells the story. The S&P 500 is up 8.2% year to date, so American Express trails the index by close to 24 points, Nike by nearly 40, and Disney by roughly 20. Over one year, American Express has eked out a 5.0% gain, while Nike is down 31.4% and Disney down 11.4%.

Valuation lines up with the recovery story. American Express and Nike trade at forward P/E ratios of 18 and 22, respectively. Disney is the cheapest of the three at 13 forward, with a P/B of roughly 2.

The Takeaway The bull case rests on the consumer holding, tariffs easing, and operating leverage from premium refresh cycles kicking in during the back half of FY26. Disney offers the clearest path to target, with streaming margins inflecting and buybacks accelerating. American Express has the cleanest fundamentals and is closest to its target. Nike offers the biggest gap and the biggest risk.

The bear case takes over if the K-shaped consumer cracks. Tariffs would grind Nike margins, credit normalization would test American Express, and parks and ad-supported streaming would feel any pullback at Disney.

The verdict is constructive on Disney and American Express, but watchful on Nike until Greater China stabilizes and Converse stops bleeding. For two of the three stocks, the gap represents an opportunity. Nike is still earning the benefit of the doubt.

American Express Company (AXP) Presents at Morgan Stanley US Financials Conference 2026 Transcript